The minimum investment required for establishing a PMA (Penanaman Modal Asing) company in Indonesia is more than IDR 10 billion (approximately USD 600,000) per 5-digit business classification (KBLI) per project location, excluding land and buildings. This amount represents the total investment plan for the company, covering fixed assets and working capital.
Key Points Regarding Minimum Investment:
- Investment Plan: The IDR 10 billion is not the amount that needs to be paid up front as capital. It is a commitment realized over time as the business develops, reported to the Ministry of Investment through periodic investment activity reports (LKPM).
- Paid-Up Capital: Under Ministry of Investment and Downstream Industry/BKPM Regulation No. 5 of 2025 (in force since October 2025), the minimum paid-up capital for a PMA company is IDR 2.5 billion — reduced from the IDR 10 billion that applied between 2021 and 2025. The paid-up capital must remain in the company’s bank account for at least 12 months after deposit.
- Sector-Specific Requirements: Some business activities calculate the investment value differently — for example, wholesale trade per 4-digit KBLI, and food and beverage services per 2-digit KBLI per location — and some sectors set higher thresholds under sectoral regulations.
Additional Considerations:
- Use of Capital: The investment plan can cover various business expenses, including purchasing equipment, renting office space, hiring staff, and other operational costs.
- Verification: Shareholders sign a capital statement, and the paid-up capital is deposited into an Indonesian bank account in the company’s name.
- Incentives: For investments in certain regions or sectors, the Indonesian government may offer incentives such as tax holidays or reductions, which could affect the overall investment strategy.
Practical Steps:
- OSS Registration: PMA companies are registered through Indonesia’s Online Single Submission (OSS) system, which issues the NIB (Business Identification Number) and risk-based licenses for the chosen business classifications.
- Capital Deposit: The paid-up capital is deposited into the company’s bank account once the account is opened, and must stay there for the 12-month holding period.
Foreign investors considering setting up a PMA company in Indonesia are advised to consult with professional services like Okusi Associates. These firms can provide detailed guidance on investment requirements, assist with the preparation of necessary documentation, and help navigate the regulatory landscape to ensure compliance and successful company registration.
© 1997-2026 