PT PMA Minimum Capital Requirements in 2026: The IDR 2.5B Rule, What It Covers, and How to Register

Indonesia made a significant shift in its foreign investment framework in late 2025. Through Minister of Investment Regulation (Permeninvest) No. 5 of 2025, effective from 2 October 2025, the government reduced the minimum paid-up capital for a foreign-owned company (PT PMA) from IDR 10 billion to IDR 2.5 billion. Government Regulation (PP) No. 28 of 2025 on Risk-Based Business Licensing, which governs the broader OSS-RBA licensing framework, also came into force alongside it. Together, these two regulations form the current legal foundation for PT PMA establishment in 2026.

This reform makes Indonesia more accessible to mid-scale foreign investors, startups, and service providers. It does not, however, remove the obligation to plan a total investment of at least IDR 10 billion per business activity. Understanding the difference between these two figures, and how they interact with visa eligibility and licensing requirements, is essential before registration begins.

Understanding the Three Capital Figures

One of the most common points of confusion for investors is the relationship between paid-up capital, authorised capital, and the total investment plan. These are three separate figures with distinct legal meanings.

Capital Type	Minimum Amount	What It Means
Paid-Up Capital	25亿印尼盾	Actual funds (or appraised non-cash assets) injected by shareholders and recorded in the Deed of Establishment. This is the figure reduced by Permeninvest No. 5 of 2025.
Authorised Capital	No fixed minimum (Company Law requires at least 25% to be issued and paid up)	Maximum share value the company is legally allowed to issue. A common structure is IDR 10B authorised, IDR 2.5B issued, IDR 2.5B paid-up.
Total Investment Plan	More than IDR 10 billion per KBLI code, per project location	The full value of planned business investment including staffing, equipment, facilities, and working capital. Excludes land and buildings. Reported progressively via LKPM.

The IDR 10 billion figure that often appears in competitor guides refers to the total investment plan, not the paid-up capital. These are not the same. Investors who confuse them may either over-capitalise unnecessarily or under-plan and face compliance issues later.

Key Provisions of the New PT PMA Capital Rules

Under Permeninvest No. 5 of 2025 and PP No. 28 of 2025, the revised framework for PT PMA capitalisation includes the following core requirements:

• Minimum paid-up capital: IDR 2,500,000,000 (approximately USD 150,000) per company.
• Total investment plan: Must exceed IDR 10 billion per business activity (KBLI code), per project location, excluding land and building value.
• Per-KBLI application: If a PT PMA registers two separate business activities under different KBLI codes, the IDR 10 billion investment plan applies to each code independently. A company with two unrelated KBLI codes must plan for at least IDR 20 billion in total investment.
• Capital lock-in: The paid-up capital must remain in the company account for at least 12 months unless used for verified operational purposes, such as payroll, rent, or equipment purchases supported by invoices or contracts.
• Non-cash contributions: Paid-up capital may be contributed as non-cash assets (machinery, equipment, or intellectual property) provided an independent appraiser certifies the valuation and it is documented in the Deed of Establishment. Land and buildings are excluded unless real estate is the primary business activity.
• Capital deposit timing: A capital statement letter (pernyataan modal) from shareholders is accepted during the Deed of Establishment phase. The actual cash deposit into a corporate Indonesian bank account occurs after incorporation, once the NPWP (tax ID) has been obtained.

Multi-KBLI Planning NoteIf the planned business involves two or more distinct activities (for example, trading and manufacturing), each KBLI code carries its own IDR 10 billion investment plan requirement. Selecting KBLI codes without a clear strategy can significantly increase the required investment commitment and affect licensing timelines. Business Hub Asia advises investors on KBLI selection before registration begins.

Getting your KBLI codes right and navigating Indonesia’s latest capital requirements shouldn’t hold up your expansion plans. At Business Hub Asia, we work alongside you to review your corporate structure and investment roadmap before you finalize your setup. 

Further reading:

• 2026年印尼KBLI OSS新规：外国投资者在印尼的关键合规路线图
• PT PMA vs PT PMDN vs Representative Office: Which Structure to Register a Company in Indonesia in 2026?

印尼为何降低资本门槛

The previous IDR 10 billion paid-up capital rule was frequently cited by investors as a disproportionate barrier, particularly for service businesses, digital companies, and SMEs where physical investment is lower. The reduction to IDR 2.5 billion reflects several policy goals:

• Attracting mid-scale and startup investors who previously found entry too costly.
• Aligning with ASEAN peers such as Vietnam and Thailand, where paid-in capital requirements are closer to USD 80,000 to 100,000.
• Encouraging productive capital deployment, allowing funds to flow into operations and workforce development rather than sitting dormant in bank accounts.
• Advancing broader investment reform under the Job Creation Law, CEPA trade agreements, and the OSS-RBA risk-based licensing system.

根据 投资部（BKPM）, this reform reflects Indonesia’s commitment to balancing investment inclusivity with legal discipline, making the country more open while maintaining structured oversight through OSS-RBA and the LKPM reporting system.

Key Benefits for Foreign Investors

Lower Entry Barriers

With an upfront requirement of IDR 2.5 billion, investors can start operations at a smaller scale, test the Indonesian market, and expand as confidence grows. This opens the market to more foreign SMEs, consulting firms, tech startups, and service providers.

Greater Flexibility and Liquidity

Companies are no longer required to immobilise large sums. Paid-up capital can be used for operational expenses and purchases, provided the use is properly supported by documentation and reported through the OSS-RBA系统.

Increased Regional Competitiveness

Indonesia now aligns more closely with ASEAN capital norms. The updated comparison below reflects 2026 enforcement realities, including the physical office requirement now being applied more strictly in Indonesia.

国家	Paid-Up Capital	Total Investment Plan	Virtual Office	Ease of Entry
印度尼西亚	IDR 2.5B (~USD 150k)	IDR 10B per KBLI code	Restricted (sector-dependent, 2026)	OSS-RBA integrated
越南	约10万美元	因行业而异	Generally accepted	快速审批
马来西亚	USD 100-200k	Varies	Accepted	缓和
泰国	约8万美元	因行业而异	Accepted	因行业而异
新加坡	无最低限额	无最低限额	Accepted	非常高

Boost for the Local Economy

The reform is expected to drive more project-based foreign investment, contributing to job creation, skill development, and technology transfer through partnerships between foreign and local entities.

Easier Diversification for Existing PT PMA Holders

Foreign companies already operating in Indonesia can add new business lines under the new rules without heavy capital restrictions, provided each new KBLI code is supported by its own IDR 10 billion investment plan.

Important: Capital Rules and Visa Eligibility Are Not the SameA PT PMA with IDR 2.5 billion paid-up capital does not automatically qualify the founding investor for a 2-year Investor KITAS (Index 313/314). The personal share value held by an individual investor must still reach IDR 10 billion to meet the Investor KITAS threshold. Investors who do not meet this figure will typically apply for a Work KITAS in the Director or Commissioner role instead. Capital structure and visa strategy must be planned together.

As Indonesia continues to streamline its corporate oversight through regular PTSP updates and LKPM tracking, having a dedicated compliance strategy is more important than ever. Business Hub Asia helps ensure your corporate health stays in perfect alignment with local regulations without distracting from your daily operations. 

相关文章：

• LKPM报告：印尼合规与投资报告完全指南
• 选择稳妥之路：合规的实缴资本为何是您成功的关键

Compliance Obligations Under the New Rules

Lower paid-up capital does not mean lighter oversight. Compliance obligations under Permeninvest No. 5 of 2025 and PP No. 28 of 2025 are detailed and actively enforced.

Investment Realization Reporting (LKPM)

Foreign companies must file quarterly and annual investment activity reports (LKPM) via the OSS-RBA system. These reports disclose how funds are being used and how the IDR 10 billion investment commitment is progressing across each KBLI code. PTSP offices in several regions have begun proactively visiting PT PMA within their jurisdiction to verify LKPM compliance. This trend is expected to intensify as the 2025 regulatory framework matures.

Capital Lock-In Enforcement

The IDR 2.5 billion paid-up capital must remain in the company account for at least 12 months unless used for legitimate operational purposes supported by documentation. This restriction applies to PT PMA companies not engaged in property construction and management.

Physical Office Requirement

As of 2026, BKPM and PTSP enforcement is tightening on registered office requirements. PT PMA companies in high-risk sectors and certain consultancy classifications now require a physical office with a verified building permit (PBG) rather than a virtual office address. Virtual offices are no longer universally accepted. Investors should confirm their sector’s requirements before committing to an office arrangement, as this affects both licensing approval and ongoing PTSP compliance visits.

不遵守规定的制裁措施

Failure to meet investment commitments or reporting obligations may result in, among other consequences:

• Written warnings (up to four times, each with a 30-day interval)
• Temporary suspension of business activity
• Administrative fines
• Enforcement action by authorised non-police officers
• Revocation of business licence, certification, or approval

These sanctions may be applied sequentially or directly, depending on the nature and severity of non-compliance.

Broader Implications: Pros and Cons of the Reform

Advantages

• Indonesia remains Southeast Asia’s largest consumer market. The reduced capital threshold allows investors to establish a foothold and scale gradually.
• Reducing paid-up capital to IDR 2.5 billion makes market entry accessible for smaller investors and startups. Investors would do well to allocate additional funds toward operational expenses, marketing, and growth, rather than locking up static capital.
• The OSS-RBA system continues to simplify the licensing process, offering more predictable timelines and a more transparent investment environment.
• With the right advisory, investors can structure financing efficiently through shareholder loans, reinvested earnings, and phased capital deployment.

Considerations

• Indonesia’s total investment plan requirement of IDR 10 billion per KBLI code remains one of the higher thresholds in ASEAN. Less capital-intensive sectors may find this commitment challenging to justify on paper.
• Certain sectors remain restricted or capped for foreign ownership (such as logistics, distribution, media, and small-scale retail) regardless of the capital reform. Investors must verify the 
• Permeninvest No. 5 of 2025 is also designed to activate dormant PT PMA companies that have not materially contributed to the Indonesian economy. PTSP monitoring and capital injection obligations apply to existing PT PMA holders, not only new registrations.
• As more small and medium foreign entities enter the market, regulatory scrutiny over substance requirements and LKPM accuracy is expected to increase.

How to Register a PT PMA Under the 2026 Rules

这 PT PMA registration process is completed through Indonesia’s Online Single Submission (OSS-RBA) system. The typical end-to-end timeline is four to six weeks. The steps below reflect the 2026 process under the current regulatory framework.

1. Company name reservation. Select a unique three-word Indonesian company name and reserve it through the Kemenkumham online system.
2. Deed of Establishment. A notary drafts the bilingual (Indonesian and English) deed, which includes shareholder details, KBLI codes, investment plan value, and the capital statement letter (pernyataan modal). Paid-up capital does not need to be deposited at this stage.
3. Legal entity ratification. The Ministry of Law and Human Rights (Kemenkumham) formally approves the company as a legal entity.
4. Tax ID (NPWP) registration. The company registers for its tax identification number with the Directorate General of Taxes.
5. Business Identification Number (NIB). The NIB is obtained through the OSS-RBA system and serves as the primary business licence. Sector-specific permits are linked to the NIB.
6. Sector-specific licences. Depending on the KBLI codes selected, additional permits may be required from relevant ministries or agencies.
7. Corporate bank account and capital deposit. Once the NPWP is obtained, a corporate bank account is opened and the IDR 2.5 billion paid-up capital is deposited. The 12-month lock-in period begins from this point.

Document Checklist for PT PMA RegistrationPassport copies of all shareholders, directors, and commissionersProof of address for all foreign individuals involvedProposed company name (three words, in Bahasa Indonesia)Selected KBLI codes for each planned business activityTotal investment plan value per KBLI code (excluding land and buildings)Authorised, issued, and paid-up capital figuresRegistered office address in Indonesia (virtual or physical, depending on sector)Power of attorney if registration is handled by a representative (recommended)

Building a Compliant Foundation for Your PT PMA

Setting up a PT PMA involves more than just administrative filing; it is about designing a strategic foundation that aligns your capital, KBLI codes, and long-term visa requirements from day one. Navigating these initial decisions thoughtfully ensures a seamless launch and protects your business from future operational bottlenecks. At Business Hub Asia, we work alongside you to verify your sector alignment and manage the setup process from corporate structuring through to operational readiness.

Let’s build your foundation together. You can reach our advisory team by submitting an inquiry via our contact form or by messaging us directly on WhatsApp at +62 813 8514 9110.