Indonesia Introduces New Paid-Up Capital Policy for Foreign Enterprises

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Indonesia has recently issued and implemented BKPM Regulation No. 5/2025, which provides stricter regulations on foreign direct investment (PMA).In terms of general investment requirements.PMAconstitutemajor industry, except as otherwise provided.The total investment (excluding land and construction) for each five-digit KBLI business area and project location must exceed Rp 10 billion.

PMA in the form of a limited liability company with a minimum paid-up capital of Rp 2.5 billion.and at least from the time of paymentNo transfer out of account for 12 months(except in the case of purchasing assets, constructing buildings and operating businesses). Enterprises are not allowed to purchase assets before passing theOSS systemApplication for a business license requires the making ofSelf-commitmentViolations will faceadministrative penaltyThe

Some industries haveInvestment exemptionse.g.Bulk trade, food service, construction industry, single line production companiesetc., of different industry exemptionsInvestment thresholds and calculationsThere are differences.Food service location restrictions by county/cityTheReal Estate DevelopmentIndustry-specific investments, such as theLand and buildings, investment in public charging pile construction by province.Enterprises in special economic zonesInvestment provisions follow the relevant presidential regulations.

The regulation is intended to ensure that PMAs areLarge-scale commercial activities with a clear capital structure and long-term commitment.Strengthening the legal and financial basis for PMA licenses also clarifies investor responsibility and transparency, while providing companies in different industries with aStrategic flexibilityThe companies need to comply with the regulations in order to avoid penalties and to safeguard the legality of their operations.

# Policy Information