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Zantara AI
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Zantara AI
AI Business Advisor
Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppUnderstanding capital requirements is crucial for foreign investors in Indonesia. Here's what you need to know.
PT PMA has two capital figures:
Both have minimum requirements for foreign investment.
| 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.
| 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 |
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 | 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.
| Counts | Doesn't Count |
|---|---|
| Cash deposits | Future earnings |
| Equipment (appraised) | Goodwill |
| Land/buildings | Projected revenue |
| Intellectual property | Unvalued intangibles |
| Initial inventory | Operating expenses |
Plan your capital allocation
You can contribute assets instead of all cash:
Requirements:
| 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 |
| 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 |
| Factor | Equity | Loan |
|---|---|---|
| Ownership | Yes | No |
| Repayment | No | Yes |
| Interest | No | Yes (deductible) |
| Risk | Higher | Lower |
| Documentation | Simpler | More complex |
| 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 question: Can I start with less capital?
Answer:
| 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 |
| Area | Impact |
|---|---|
| Business scale | Limits your operations |
| KITAS eligibility | Per-foreigner requirements |
| Banking | Affects credit lines |
| Partners/investors | Ownership percentages |
| Exit | Value at sale |
AI-powered answers from our knowledge base
Suggested questions:
Estimated total
Meets requirement (~USD 625,000)
Rp 10.000.000.000