Frequently Asked Questions: #pmaminumumcapital

The minimum capital requirements for establishing a PMA (Penanaman Modal Asing) company in Indonesia are as follows:

• Total Investment Value: The minimum total investment value for a PMA company is IDR 10 billion (approximately USD 670,000), excluding land and buildings.

• Issued and Paid-up Capital: The minimum issued and paid-up capital is IDR 2.5 billion (approximately USD 167,000).

• Foreign Ownership: If the company is 100% foreign-owned, the entire IDR 2.5 billion must be paid up.

• Joint Venture: In case of a joint venture with local partners, the foreign share must be at least IDR 10 million (approximately USD 670) per shareholder.

• Proof of Capital: The paid-up capital must be deposited in an Indonesian bank account under the company’s name and proven with a bank statement.

• Capital Increase: The remaining IDR 7.5 billion of the total investment value can be gradually injected over time, typically within 1-3 years, depending on the business plan submitted to BKPM (Investment Coordinating Board).

• Exceptions: Some business sectors may have higher minimum capital requirements. It’s essential to check the specific regulations for your intended business activity.

• KBLI Codes: The capital requirements may vary depending on the KBLI (Indonesian Standard Industrial Classification) codes of your business activities.

Remember that these figures are subject to change, and it’s always advisable to consult with a professional or check the latest regulations from BKPM for the most up-to-date information on capital requirements for PMA companies in Indonesia.

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The minimum capital requirements for a PMA (Penanaman Modal Asing) company in Indonesia are as follows:

• Total Investment Value: The minimum total investment value for a PMA company is IDR 10 billion (approximately USD 670,000), excluding land and buildings.

• Issued and Paid-up Capital: The minimum issued and paid-up capital is IDR 2.5 billion (approximately USD 167,000).

• Foreign Ownership: If the company is 100% foreign-owned, the entire IDR 2.5 billion must be paid up.

• Joint Ventures: For joint ventures with Indonesian partners, the foreign portion of the IDR 2.5 billion must be paid up in proportion to the foreign ownership percentage.

• Exceptions: Some business sectors may have higher minimum capital requirements. It’s essential to check the specific regulations for your industry.

• Proof of Capital: The paid-up capital must be deposited in an Indonesian bank account under the company’s name and verified by a public accountant.

• Gradual Investment: The total investment of IDR 10 billion can be realized gradually over time, typically within 1-3 years, depending on the business plan submitted to BKPM (Investment Coordinating Board).

• Capital Increases: Companies can start with the minimum required capital and increase it later as needed.

It’s important to note that these requirements may be subject to change, and certain business sectors or special economic zones might have different capital requirements. Always consult with a qualified professional or the relevant Indonesian authorities for the most up-to-date information regarding your specific business case.

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