Hey guys, has anyone heard of any PT PMAs getting into trouble or losing their status because of not meeting the 10 billion requirement? I heard a few years back a lot of poeple who were using it just for kitas and didnt have legitimate activity were getting kicked out, but nothing other than that. The 10 billion requirement is pretty insane for average business owners- hopefully it doesn't cause us issues down the line.
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PT-PMA issues if under 10 billion requirement
- Thread starter jj888
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mas_dam
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Capital Commitment Redefined: IDR 2.5 Billion Minimum for PMA Under Indonesia’s BKPM Regulation 5/2025 | Legal Insights | Mahendra & Co. Law Firm | Legal Insights | Mahendra & Co. Law Firm
BKPM Regulation 5/2025 introduces a firm capital commitment framework for foreign direct investment (PMA) in Indonesia, mandating a minimum paid-up or subscribed capital of IDR 2.5 billion per limited liability company, alongside a general investment threshold of over IDR 10 billion per business...
www.mahendracounsel.com
It's not 10bn anymore, it was changed 2 weeks ago to 2.5bn.
The article that you presented says :
- minimum total investment must exceed IDR 10 billion, excluding land and buildings
- minimum paid-up or subscribed capital of IDR 2.5 billion
Is there really a change ?
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mas_dam
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Yes, it is a significant change.
It's explained here:
www.aoshearman.com
Investment Treshold:
"“Investment” refers to the minimum proposed investment to be made by the relevant PMA company, the fulfilment of which is tracked through quarterly investment reporting to the BKPM (as opposed to issued and paid-up capital, which must be paid into the company upon establishment). The New Regulation does not set any express deadline to satisfy the minimum investment"
vs.
Paid-Up Capital Investment:
"Beyond the investment threshold, every PMA company must meet the minimum capitalization requirement, now set at issued/paid up capital of at least IDR2.5bn per company, unless a sectoral rule requires more. This lowers entry costs while leaving room for higher sectoral minima where applicable."
The paid-up amount is lower, but the regulations are stricter for the cash to remain in Indonesia and getting actually invested (in contrast to just transferred it back abroad).
Peraturan Menteri Investasi/Kepala BKPM Nomor 5 Tahun 2025:
It's explained here:
Risk-based licensing: BKPM Regulation 5/2025 consolidates and clarifies the 2021 regime - A&O Shearman
On October 1, 2025, Indonesia’s Ministry of Investment and Downstream Industry/BKPM issued Regulation No. 5 of 2025 on Guidance and Implementation of Risk-Based Business Licensing and Investment Facilities through the OSS (the New Regulation).
www.aoshearman.com
Investment Treshold:
"“Investment” refers to the minimum proposed investment to be made by the relevant PMA company, the fulfilment of which is tracked through quarterly investment reporting to the BKPM (as opposed to issued and paid-up capital, which must be paid into the company upon establishment). The New Regulation does not set any express deadline to satisfy the minimum investment"
vs.
Paid-Up Capital Investment:
"Beyond the investment threshold, every PMA company must meet the minimum capitalization requirement, now set at issued/paid up capital of at least IDR2.5bn per company, unless a sectoral rule requires more. This lowers entry costs while leaving room for higher sectoral minima where applicable."
The paid-up amount is lower, but the regulations are stricter for the cash to remain in Indonesia and getting actually invested (in contrast to just transferred it back abroad).
Peraturan Menteri Investasi/Kepala BKPM Nomor 5 Tahun 2025:
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