Indonesia continues to strengthen the appeal of its investment climate for foreign investors. Through the latest regulatory adjustments in Minister of Investment/BKPM Regulation No. 5 of 2025, the government provides ease in the capital requirements for establishing a Foreign Investment Limited Liability Company (PT PMA).

One of the most significant changes in this latest regulation is the reduction of the minimum paid-up capital requirement from IDR 10 billion to IDR 2.5 billion per company. This adjustment is designed to facilitate capital inflow without disregarding compliance with large-scale business rules in Indonesia.

Summary of PT PMA Capital Rules 2026

For foreign investors and local entrepreneurs who wish to partner with foreign parties, here are the main points of PT PMA capital and investment requirements according to the latest regulations:

  • Business Entity Form: PMA can only be established in the form of a Limited Liability Company (PT) and must be categorized as a Large-Scale Business.
  • Minimum Paid-up Capital: At least IDR 2,500,000,000 (IDR 2.5 billion) per company (down from the previous requirement of IDR 10 billion).
  • Total Investment Value: Remains more than IDR 10,000,000,000 (IDR 10 billion) per KBLI (Indonesian Standard Industrial Classification) per project location, excluding land and building value.
  • Open Business Sectors (DPI): Restrictions on foreign share ownership are regulated in the Positive Investment List (DPI) based on PP No. 28 of 2025.

Difference Between Paid-up Capital and Total Investment Value of PT PMA

Many foreign investors often misunderstand the difference between Paid-up Capital and Total Investment Value:

This is cash or assets placed and fully paid by shareholders into the company's bank account in Indonesia. Based on the new rules, the minimum value is now set at IDR 2.5 billion.

Total Investment Value

This is the total planned capitalization of working capital and fixed assets of the company to carry out operations per KBLI at one location. This figure must be stated above IDR 10 billion (excluding land and building value) in the Investment Plan in the OSS RBA system.

Latest Documents Required for PT PMA Establishment

To process the Establishment of a PT PMA in Indonesia, several main document requirements must be prepared, including:

  • Foreign Shareholder Documents:
    • Individual: Valid passport.
    • Legal Entity (Foreign Company): Articles of Association / Deed of Establishment of the foreign company along with its official registration (legalized/Apostille).
  • Local Shareholder Documents (If Joint Venture): KTP and NPWP of Indonesian citizen management/shareholders.
  • Management Structure: At least 1 Director and 1 Commissioner.
  • Company Operational Address: Have a valid business domicile or can utilize Virtual Office services in strategic business areas.

Stages of PT PMA Establishment Procedure in Indonesia

The process of establishing a PT PMA is carried out in an integrated manner through the following stages:

  1. PT Name Checking and Reservation: Ensure the company name consists of 3 words in Indonesian or a combination not already used by another party.
  2. Drafting of Notarial Deed of Establishment: Creation of the deed of establishment based on articles of Indonesian legal compliance.
  3. Ministry of Law and Human Rights Ratification: Issuance of the Decree of Legal Entity Ratification from the Ministry of Law and Human Rights.
  4. Tax Registration: Issuance of Corporate NPWP and registration of PKP status if projected turnover exceeds the VAT obligation threshold.
  5. Issuance of NIB & Business License in OSS RBA: Processing of NIB with PMA status according to the KBLI Risk sector as well as fulfillment of supporting certifications such as SIINas or BPOM distribution permits if operating in related industries.

FAQ About PT PMA Establishment 2026

Can PT PMA shares be 100% owned by foreigners?
Yes, depending on the chosen business sector. Business fields that are 100% open to foreign parties are regulated in the Positive Investment List (PP No. 28 of 2025). If the business field falls into a restricted category, then partnership with a local partner (Indonesian citizen/Indonesian legal entity) is required.

When must the paid-up capital of IDR 2.5 billion be placed?
Paid-up capital is required to be placed into a bank account under the name of the PT PMA in Indonesia after the Deed of Establishment, Ministry of Law and Human Rights Decree, and Corporate NPWP are issued.

Ease of PT PMA Establishment with Awan Kusuma Legalitas

Managing the establishment of a PT PMA requires high precision regarding KBLI adjustments, foreign ownership percentages, and periodic LKPM reporting. The Awan Kusuma Legalitas team is experienced in assisting foreign and domestic investors to ensure that the entire licensing process runs safely and in accordance with Indonesian legal regulations.

We are ready to help process your business establishment comprehensively. Starting from legal entity ratification viaย PT Establishment and Sole Proprietorship PT Establishment, issuance of basic permits via NIB, management ofVirtual Office address facilities, to business brand protection through IPR / Trademark. Together with us, your foreign investment business expansion in Indonesia becomes more practical and transparent.

Want to consult on share ownership structure and KBLI adjustments for establishing your PT PMA in Indonesia? Contact the Awan Kusuma Legalitas Team via WhatsApp now for integrated investment licensing consultation!