PT PMA Capital Requirements Indonesia 2026: Investment Guide
Understanding capital requirements is crucial for foreign investors in Indonesia. Here's what you need to know.
Capital Structure Overview
PT PMA has two capital figures:
- Authorized Capital (Modal Dasar) - Maximum capital company can have
- Paid-up Capital (Modal Disetor) - Actually invested capital
Both have minimum requirements for foreign investment.
Current Requirements
Standard PT PMA Minimums
| Capital Type | Minimum Amount |
|---|---|
| Total Investment | More than IDR 10 billion (~USD 625,000) per KBLI/location |
| Paid-up Capital | IDR 2.5 billion (reduced from IDR 10 billion in Oct 2025) |
| Per Shareholder | IDR 10 million minimum |
Important change:
Since October 2025, BKPM Regulation 5/2025 (Article 26) reduced the minimum paid-up capital to IDR 2.5 billion, which must stay in the company account for at least 12 months. The total investment commitment of more than IDR 10 billion per 5-digit KBLI code per project location (excluding land and buildings, with sector exceptions) is unchanged.
Before October 2025, the paid-up capital had to equal the full IDR 10 billion — older guides still quote that figure.
Investment vs Paid-Up Capital
What's the Difference?
| Concept | Meaning |
|---|---|
| Total Investment | All resources for the business (capital + loans + equipment) |
| Paid-Up Capital | Actual cash/assets contributed by shareholders |
| Authorized Capital | Maximum shares the company can issue |
Current Requirement
Capital Requirements
What you need to invest
| Feature | Total Investment Investment commitment | Paid-Up Capital Actual investment | Per Shareholder Individual minimum |
|---|---|---|---|
| Minimum | IDR 10 billion | IDR 2.5 billion | IDR 10 million |
| USD Equivalent | ~$625,000 | ~$156,000 | ~$625 |
| Includes | All project value | Cash + assets | Share value |
| When needed | Committed at setup | Deposit at setup, locked 12 months | Per investor |
Sector-Specific Requirements
Some Sectors Have Higher Minimums
| Sector | Additional Requirements |
|---|---|
| Banking | Much higher (billions USD) |
| Insurance | Specific capital requirements |
| Mining | Higher investment thresholds |
| Telecommunications | Special requirements |
| Education | Minimum IDR 10B applies |
| Healthcare | May have additional requirements |
Sector requirements vary:
Some business classifications (KBLI codes) have specific capital requirements above the standard minimum. Always verify requirements for your specific activities.
Capital Calculation
What Counts Toward Investment?
| Counts | Doesn't Count |
|---|---|
| Cash deposits | Future earnings |
| Equipment (appraised) | Goodwill |
| Land/buildings | Projected revenue |
| Intellectual property | Unvalued intangibles |
| Initial inventory | Operating expenses |
Calculator
Investment Structure
Plan your capital allocation
Default Inputs
- Cash Investment (IDR)
- 8,000,000,000
- Equipment Value (IDR)
- 1,500,000,000
- Property/Land (IDR)
- 0
- Other Assets (IDR)
- 500,000,000
Estimated Result
Estimated total
Meets requirement (~USD 625,000)
Rp 10.000.000.000
Asset Contribution
Non-Cash Capital
You can contribute assets instead of all cash:
- Equipment (machinery, vehicles)
- Intellectual property (patents, trademarks)
- Real property (land, buildings)
Requirements:
- Must be appraised by certified appraiser
- Appraisal report submitted to notary
- Assets must be transferred to company
- Documented in company deed
Appraisal Process
| Step | Action |
|---|---|
| 1 | Engage certified appraiser |
| 2 | Provide asset documentation |
| 3 | Appraiser inspects/values |
| 4 | Receive appraisal report |
| 5 | Submit to notary |
| 6 | Record in company deed |
Funding Sources
Where Capital Can Come From
| Source | Notes |
|---|---|
| Personal funds | Most common |
| Foreign parent company | For subsidiaries |
| Foreign investors | Joint ventures |
| Foreign bank loans | Must be documented |
| Asset transfer | With appraisal |
Loan vs Equity
| Factor | Equity | Loan |
|---|---|---|
| Ownership | Yes | No |
| Repayment | No | Yes |
| Interest | No | Yes (deductible) |
| Risk | Higher | Lower |
| Documentation | Simpler | More complex |
Proof of Capital
What Immigration/OSS May Request
| Document | Purpose |
|---|---|
| Bank statement | Prove cash availability |
| Transfer receipt | Actual investment made |
| Appraisal report | Non-cash assets |
| Bank reference letter | Financial standing |
| Company deed | Shows capital structure |
Common Questions
FAQs
Common question: Can I start with less capital?
Answer:
- Minimum IDR 10B is required for standard PT PMA
- Some special zones may have different rules
- Representative office doesn't require capital but can't trade
- Consider PT PMDN (domestic company) if eligible
| Question | Answer |
|---|---|
| Can I add capital later? | Yes, through capital increase |
| What if capital decreases? | May need to report/adjust |
| Can capital be withdrawn? | Not easily - it's company capital |
| Is capital locked up? | Used for business operations |
Implications
What Capital Affects
| Area | Impact |
|---|---|
| Business scale | Limits your operations |
| KITAS eligibility | Per-foreigner requirements |
| Banking | Affects credit lines |
| Partners/investors | Ownership percentages |
| Exit | Value at sale |
Common Questions
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