Investissement Villa Bali
Oct 28, 2025
indonesia lowers paid-up capital to idr 2.5 billion for foreign-owned companies in 2025
Indonesia has officially reduced the paid-up capital requirement for foreign-owned limited liability companies (PT PMA) from IDR 10 billion to IDR 2.5 billion (around USD 160,000). The update, introduced under Minister of Investment Regulation No. 5 of 2025, is designed to attract more foreign investors by making it easier and less costly to establish a company in Indonesia.
New Paid-Up Capital Requirement for Foreign Companies
Under the new regulation, foreign investors can now establish a PT PMA with a lower initial paid-up capital while still meeting Indonesia’s standards for serious business commitments.
Paid-up capital (modal disetor): the actual funds injected by shareholders at the time of company establishment, now set at a minimum of IDR 2.5 billion.
Investment plan (rencana investasi): the total project value declared through the OSS-RBA system, which remains at a minimum of IDR 10 billion per business activity or KBLI (Indonesian Business Classification).
This distinction allows investors more flexibility — they can start operations with lower upfront cash while maintaining a significant overall investment commitment.
Minimum Investment Plan and Eligible Expenditures
The minimum investment plan remains IDR 10 billion per KBLI.
Qualifying expenses include machinery, vehicles, feasibility studies, permits, and working capital.
Land and buildings are excluded from the investment calculation unless the business operates in property, accommodation, agriculture, or aquaculture, where such assets are directly related to operations.
Certain regulated sectors continue to follow their own higher capital standards:
Compliance and Monitoring Through OSS-RBA
The new rule applies only to newly established PT PMAs. Existing companies registered under earlier regulations are not required to adjust their paid-up capital.
The paid-up capital must remain in the company’s account for at least 12 months, unless legitimately used for operational or investment purposes.
Compliance will be monitored through the OSS-RBA platform and regular investment activity reports (LKPM).
How the Regulation Affects New Investors
The reduction of paid-up capital significantly lowers the entry barrier for foreign investors, especially for small and medium enterprises (SMEs) or startups looking to enter Indonesia’s growing market.
It also aligns Indonesia’s investment framework more closely with ASEAN regional standards, supporting national efforts to improve the ease of doing business and attract sustainable foreign direct investment (FDI).
Why Indonesia Adjusted the Capital Rule
The government aims to balance accessibility with economic credibility. By easing the upfront paid-up capital requirement but keeping the IDR 10 billion investment plan, Indonesia encourages more diverse foreign participation without compromising the scale or seriousness of incoming projects.
This policy opens the door for investors who previously found the IDR 10 billion paid-up capital too steep — including those in manufacturing, digital services, consulting, and creative industries — to establish operations under a more inclusive and competitive framework.