How to Meet PT PMA Minimum Capital Requirements in Indonesia

The minimum paid-up capital for a PT PMA (foreign-owned company) in Indonesia is IDR 2.5 billion (~USD 150,000), effective since October 2025 under Minister of Investment Regulation No. 5 of 2025. The total investment plan per business activity (KBLI code) must still exceed IDR 10 billion (~USD 600,000), excluding land and buildings.

Paid-up capital need not be fully deposited at the time of registration. A capital declaration letter is accepted upon incorporation, with the actual deposit made after the corporate bank account is opened.

2026 change summary: The minimum paid-up capital was reduced by 75%, from IDR 10 billion to IDR 2.5 billion, making Indonesia significantly more accessible for foreign investors, SMEs, and startups entering the market.

Key Takeaways

• Indonesia reduced the minimum paid-up capital for a PT PMA to IDR 2.5 billion in 2025.
• The IDR 2.5 billion paid-up capital is different from the IDR 10 billion total investment plan.
• Paid-up capital can be deposited after the company bank account is opened.
• If a PT PMA has more than one KBLI code, the IDR 10 billion investment plan applies to each code.
• Many businesses make mistakes by confusing capital requirements, missing LKPM reporting, or underestimating KBLI planning.

What is the Minimum Capital Investment in Indonesia?

According to the Indonesian Investment Coordinating Board (BKPM) and the updated Government Regulation (GR) No. 28 of 2025 on Risk-Based Business Licensing, when registering a PT PMA, foreign investors must declare two capital figures:

Paid-Up Capital

The amount shareholders actually inject into the company. This is the minimum IDR 2.5 billion figure. It can be deposited as cash into a corporate bank account or contributed as non-cash assets (equipment, intellectual property, etc.) at current market value, excluding land and buildings, unless real estate is the company’s primary business.

READ MORE:

• How to Register a Foreign-Owned Company as PT PMA in Indonesia
• A Complete Guide for Registering a Company as Foreigners
• How can Singaporean Entrepreneurs Set Up A PT PMA in Indonesia?

Total Investment Plan

The total capital commitment the company plans to deploy over time to its Indonesian operations, covering staffing, equipment, facilities, and working capital. This must exceed IDR 10 billion for each KBLI business activity code and project location, excluding land and building costs.

Capital Requirements at a Glance (2026 Updates)

The total investment plan per KBLI business activity code must still exceed IDR 10 billion per project location (excluding land and buildings). This requirement protects local MSMEs by ensuring PT PMAs are medium- to large-scale operations rather than micro businesses competing directly with Indonesian small enterprises.

Capital Type	Amount	When Required
Minimum paid-up capital (PT PMA)	IDR 2.5 billion (~USD 150,000)	Declared at incorporation; deposited after bank account is opened
Total investment plan per KBLI	IDR 10 billion (~USD 600,000)	Declared at registration; realized progressively
Paid-up capital for local PT (micro)	Below IDR 1 billion	Indonesian-owned companies only
Paid-up capital for local PT (small)	IDR 1–5 billion	Indonesian-owned companies only
Paid-up capital for local PT (medium)	IDR 5–10 billion	Indonesian-owned companies only
Paid-up capital for local PT (large)	Above IDR 10 billion	Indonesian-owned companies only
Representative Office (KPPA)	No minimum capital	No commercial revenue permitted

Need help structuring your capital correctly? InCorp Indonesia advises on the right capital structure for your business sector and timeline before you commit. Get a free consultation →

How Does the Paid-Up Capital Work in Practice?

Paid-up capital reflects the real funds committed to your business. Here is how it typically works step by step in practice.

Step 1: Capital Declaration at Registration

During PT PMA registration, shareholders sign a capital statement letter (Surat Pernyataan Kesanggupan Menyetor Modal) confirming they have IDR 2.5 billion available and committed to the company. This letter is attached to the Deed of Establishment. The deadline for submitting this letter is 60 days after the Deed of Establishment is signed.

Step 2: Corporate Bank Account Opening

After the company receives its NIB (Business Identification Number) and NPWP (Tax ID), the company opens a corporate bank account at an Indonesian bank. The paid-up capital is then deposited into this account.

Step 3: Capital Injection Methods

The paid-up capital can be contributed in two ways:

• Cash: Deposited directly into the company’s Indonesian corporate bank account
• Non-Cash Assets: Equipment, machinery, intellectual property, or other assets valued at current market prices. The asset valuation must be documented by an independent appraiser, and details must be recorded in the Deed of Establishment. Land and buildings are excluded from paid-up capital unless real estate is the company’s primary business activity.

Step 4: Investment Realization Reporting

All PT PMAs must file quarterly LKPM reports (Investment Activity Reports) to BKPM, documenting how the total investment plan is being realized over time. This includes staffing costs, equipment purchases, facility rental, and other business expenses. The investment plan is implemented progressively, and not all of it needs to be deployed in the first year.

Capital Requirements by Company Type

Different types of companies have different capital requirements. Here’s how they compare in practice.

PT PMA (Foreign-Owned Company)

Requirement	Amount
Minimum paid-up capital	IDR 2.5 billion (~USD 150,000)
Total investment plan per KBLI	IDR 10 billion (~USD 600,000)
Number of shareholders required	Minimum 2
Foreign ownership	Up to 100% in eligible sectors

Important: If your PT PMA operates under two distinct KBLI codes, the IDR 10 billion total investment plan requirement applies to each code, so your combined investment plan must exceed IDR 20 billion.

Local PT (Indonesian-Owned Company)

Indonesian law classifies local PT companies by their paid-up capital. This affects whether the company can employ foreign workers:

Classification	Paid-up capital	Can it employ foreigners?
Micro	Below IDR 1 billion	Generally no
Small	IDR 1–5 billion	Limited
Medium	IDR 5–10 billion	Yes, with restrictions
Large	Above IDR 10 billion	Yes

Representative Office (KPPA)

No minimum capital is required for a Representative Office. However, a KPPA cannot generate revenue, sign commercial contracts, or sell products in Indonesia. It is only suitable for market research, liaison activities, and pre-entry exploration.

Special Economic Zones (SEZ): Lower Capital Requirements

Foreign companies establishing operations in Indonesia’s Special Economic Zones (KEK — Kawasan Ekonomi Khusus) may qualify for reduced or waived minimum capital requirements, particularly for:

• Technology startups and digital economy companies
• Manufacturing and export-oriented businesses
• Tourism and hospitality projects in designated zones

Active SEZs include Batam, Bintan, Mandalika (Lombok), Likupang (North Sulawesi), and Nusantara (East Kalimantan). Companies in SEZs also benefit from tax holidays, import duty exemptions, and streamlined licensing. InCorp advises on SEZ eligibility and setup as part of its company registration service.

How to Meet the Capital Requirements: Practical Guidance

Meeting capital requirements is about how the funds are structured and documented. Here’s how to approach it in practice.

For Investors Who are Ready Now

The most straightforward approach is to deposit IDR 2.5 billion in cash into the company’s Indonesian corporate bank account within 60 days of the Signing of the Deed of Establishment. Many investors use their initial operational budget (office lease, staffing, equipment) to simultaneously fulfill the paid-up capital requirement and launch operations.

For Investors Structuring Capital as Assets

Non-cash contributions are accepted but require an independent appraiser’s valuation report and documentation in the Deed of Establishment. This approach works well for manufacturing companies contributing machinery or technology companies contributing intellectual property. All asset contributions must be verified before the company’s first LKPM report is filed.

For Investors with Multiple KBLI Codes

Plan your total investment carefully before registration. If you anticipate needing two or more KBLI codes, your total investment plan requirement will multiply accordingly. InCorp reviews your KBLI strategy before registration to prevent costly amendments later.

Common Mistakes About Indonesia Capital Requirements

Many businesses misunderstand Indonesia’s capital requirements, which can lead to delays or compliance issues. Here are the most common mistakes to avoid.

• Confusing Paid-Up Capital with Total Investment: These are two different figures. Paid-up capital (IDR 2.5 billion) is what you inject into the company. Total investment plan (IDR 10 billion per KBLI) is the broader commitment you declare for your entire business operation.
• Thinking the Capital is a Sunk Cost: The paid-up capital is not a government fee or a locked deposit, it belongs to the company and can be used for legitimate business expenses such as office rental, salaries, equipment, and working capital from the day the bank account opens.
• Using Nominee Arrangements to Avoid Capital Requirements: Illegal under Article 10(1) of Law No. 25 of 2007. These arrangements are void in Indonesian courts and expose both parties to criminal liability. The legal alternative is a properly registered PT PMA with genuine foreign shareholding.
• Missing LKPM Reporting Deadlines: The total investment plan is monitored through quarterly LKPM reports. Failure to file, or misrepresenting investment realization figures, can result in NIB suspension and BKPM sanctions.
• Not Accounting for Multiple KBLI Codes: Each additional KBLI code adds IDR 10 billion to your total investment plan requirement. Always confirm your KBLI strategy before registration.

Ready to Structure Your Indonesia Investment Correctly?

Getting your capital structure right from the start prevents costly amendments, BKPM compliance issues, and banking delays. InCorp Indonesia (an Ascentium Company) can verify your KBLI classification, advise on capital structure, and manage the full PT PMA registration process on your behalf. Get your initial free capital structure consultation →

Also planning to register products in Indonesia? Once your PT PMA is established, InCorp can register your products with BPOM (food, cosmetics, supplements), Kemenkes (medical devices), or the Ministry of Health (household products) — as a combined service. Learn about product registration →

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