PT PMA Capital Requirements: Investment Plan and Paid-Up Capital
PT PMA capital requirements explained: an investment plan above IDR 10 billion per business line, IDR 2.5 billion paid up per company, and what counts.
References (6)
- Peraturan Menteri Investasi dan Hilirisasi/Kepala BKPM No. 5 Tahun 2025, in force 2 October 2025. Articles 26 and 27 set the investment value, the paid-up capital and the 12-month commitment. Articles 35 and 37 cover supporting activities and the investment plan. Articles 225 to 227 cover changes to company data and a change of status. Article 395 covers licences issued under the old rule, and Article 398(b) revokes that rule.
- PP No. 28 Tahun 2025 on risk-based business licensing, in force 5 June 2025. Articles 212 and 213 set how the licensing system checks the planned investment and the capital.
- UU No. 40 Tahun 2007 (the Company Law), as amended by UU No. 6 Tahun 2023. Articles 21, 32, 33 and 41 to 43 cover amendments to the articles of association, authorised and paid-up capital, and adding capital.
- PP No. 8 Tahun 2021 on authorised capital. Articles 3 to 5 cover who sets the authorised capital, the proof of payment within 60 days, and higher minimums for regulated activities.
- Perpres No. 10 Tahun 2021 on investment business fields, as amended by Perpres No. 49 Tahun 2021. Article 8(2) allows technology start-ups in a special economic zone to invest less.
- Peraturan BKPM No. 4 Tahun 2021, in force 2 June 2021 to 1 October 2025. Article 12(7) required paid-up capital of at least IDR 10 billion. It was revoked by Permeninves/BKPM 5/2025.
PT PMA capital requirements come down to two numbers, and they measure different things.
A PT PMA (Perseroan Terbatas Penanaman Modal Asing, a foreign-investment limited company) needs a planned investment of more than IDR 10 billion for each business line at each location, and issued and paid-up capital of at least IDR 2.5 billion for the company as a whole (Permeninves/BKPM 5/2025, Article 26(2) and (10)).
The larger figure is a plan, not money that must sit in the bank on day one. The licensing system checks it against the investment plan when the company applies for its licence (PP 28/2025, Article 212(1)). The smaller figure is paid in for shares, and the company spends it on the business. MAM sets both up with you when the company is formed.
Two tests, not one
| Investment value | Paid-up capital | |
|---|---|---|
| What it is | A planned investment (PP 28/2025, Article 212(1); Permeninves/BKPM 5/2025, Article 37(3)) | Money paid for the company’s shares (Article 26(9) and (10)) |
| How much | More than IDR 10 billion, land and buildings left out in most sectors (Article 26(2)) | At least IDR 2.5 billion (Article 26(10)) |
| Counted | Per five-digit business line, per location | Once per company |
| Paid for with | Own capital, loans, reinvested profit or share premium (Article 37(5)) | Share capital |
| Checked | By the licensing system against the plan, at licensing | In the deed of establishment |
Of the PT PMA capital requirements, the IDR 10 billion is the one most often misread, so it comes first.
The investment value is a plan, per business line
The test is more than IDR 10 billion, not “at least” (Article 26(2)). It applies to each five-digit KBLI business line (Klasifikasi Baku Lapangan Usaha Indonesia, the standard business classification) at each project location. A company running two business lines at one site therefore plans for two tests.
Some activities are grouped more broadly, which makes the test easier rather than harder. Wholesale, food and drink, construction, and manufacturing that makes its products on a single production line are counted across a group of related codes, so several codes share one IDR 10 billion (Article 26(3)). A supporting activity that does not earn revenue of its own is not tested separately (Article 35(6)(g) and (7)).
Technology start-ups are the one lower threshold. Inside a special economic zone they may invest IDR 10 billion or less (Perpres 10/2021, as amended by Perpres 49/2021, Article 8(2)). Choosing the business lines comes first, and our guide to business codes and the Online Single Submission (OSS) system explains how they are chosen and checked.
What counts toward the investment value
The investment plan lists what the business will spend (Article 37(4)). Three kinds of spending count toward the IDR 10 billion in every sector:
Machinery and equipment
The machines and equipment the business will buy, including spare parts (Article 37(4)(c)).
Set-up and other costs
Vehicles, office equipment, a feasibility study, surveys, licences, and operating costs while the business is being built (Article 37(4)(d)).
Working capital for one cycle
Materials, salaries and running costs for one business cycle (Article 37(4)(e)).
Land and buildings are entered in the plan but left out of the test in most sectors (Article 26(2)). They count for property, short- and long-term accommodation, agriculture, plantations, livestock and aquaculture (Article 26(5)). Property sold or let as separate units, rather than as a whole building or an integrated housing complex, is measured without them again (Article 26(6)); our guide to buying property in Indonesia covers that side.
The plan does not have to be funded with share capital. It can be paid for with loans and reinvested profit as well as the shareholders’ own money (Article 37(5)). Only IDR 2.5 billion has to be paid in for shares.
Authorised and paid-up capital
The founders set the authorised capital, the ceiling written into the deed (UU 40/2007, the Company Law, Article 32, as amended by UU 6/2023; PP 8/2021, Article 3). The company must issue and pay for no less than 25% of that ceiling (Company Law, Article 33(1)). For a PT PMA the paid-up figure must also reach at least IDR 2.5 billion, once per company however many business lines it has (Permeninves/BKPM 5/2025, Article 26(10)).
A quarter of IDR 10 billion is exactly IDR 2.5 billion, so IDR 10 billion authorised with IDR 2.5 billion paid up is the usual shape for a PT PMA. Setting authorised capital higher raises the quarter with it:
| Description | IDR |
|---|---|
| Authorised capital in the deed | 20,000,000,000 |
| A quarter, issued and fully paid Company Law, Article 33(1) | 5,000,000,000 |
| PT PMA minimum Permeninves/BKPM 5/2025, Article 26(10) | 2,500,000,000 |
| Paid up on establishment, the higher of the two | 5,000,000,000 |
Proof of the payment goes to the Ministry of Law electronically within 60 days of the deed of establishment (PP 8/2021, Article 4(2)).
The paid-up capital is working money
The IDR 2.5 billion is not a deposit. The company can spend it from the first day on assets, buildings and running the business (Article 27(1)).
What the rule prevents is moving it out of the company’s account for any other purpose within 12 months of payment. The company confirms this with a self-declaration in the licensing system when it applies for its business licence (Article 27(2) and (3)).
How the investment then goes in is reported in the LKPM (Laporan Kegiatan Penanaman Modal, the investment activity report), quarterly for a PT PMA (Article 286(1)(b)). We file it for our clients; our note on LKPM covers what it asks for.
Adding capital later
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Shareholders resolve
A general meeting of shareholders approves the new capital.
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Notarial deed
A notary records the change in a deed in Indonesian.
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Ministry of Law
It approves a higher authorised capital, or is notified of higher paid-up capital.
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Licensing record updated
The licensing system is brought into line with the Ministry’s data.
Adding capital needs the shareholders’ approval (Company Law, Article 41(1)), recorded in a notarial deed in Indonesian (Article 21(4)). Raising the authorised capital needs the Minister’s approval, while raising the paid-up capital within it is notified (Articles 21(2)(d), 21(3) and 42(2) and (3)). The licensing record then follows (Permeninves/BKPM 5/2025, Articles 225(3) and 226(4)). New shares are offered first to the existing shareholders, in proportion to what they already hold (Company Law, Article 43(1)).
We prepare the resolution and the deed amendment, and report the change to the Ministry, as part of our corporate secretary work. A company licensed under the old rule keeps the capital and investment terms of its existing licence when it relocates or extends a licensed activity, or expands the same activity (Permeninves/BKPM 5/2025, Article 395).
What older guides get wrong
Questions people ask
Does a PT PMA with three business lines need IDR 7.5 billion paid up?
Is a planned investment of exactly IDR 10 billion enough?
Does a representative office need capital?
What happens when a local PT takes a foreign shareholder?
Can a sector have a higher minimum?
What this means for you
Plan an investment of more than IDR 10 billion for each business line at each location, and pay in at least IDR 2.5 billion for the company, usually against an authorised capital of IDR 10 billion. The plan can be funded over time from loans and reinvested profit, and the paid-up money is the company’s to spend on the business. Those are the PT PMA capital requirements in full.