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Zantara AI
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Bali Zero handles visas, company setup, tax and property compliance in Indonesia. Ask us directly on WhatsApp.
Chat with Bali Zero on WhatsAppThe general placed and paid-up capital minimum for a PT PMA under Investment Ministry/BKPM Regulation 5/2025 is Rp2.5 billion per limited liability company, unless another applicable rule provides otherwise. That is separate from the regulation's investment-value requirements. Primary regulation, Article 26.
This is an explanation of an existing framework, not a capital reduction newly announced in October 2026. A lower capital threshold does not establish that an investor's entire project can be budgeted at the same amount.
Article 26 states a general investment value of more than Rp10 billion, excluding land and buildings, per five-digit KBLI business activity per project location. But the following paragraphs contain important exceptions.
For food and beverage services, the calculation uses the first two KBLI digits per location point, with the location provision referring to a regency or city. Wholesale trade and construction services have their own four-digit grouping rules. An industry producing different products on one production line also has specific treatment.
The regulation additionally treats land and buildings differently for certain activities, including accommodation and specified property activities. Property projects have further distinctions. The general exclusion of land and buildings should therefore not be applied to every Bali project without checking its category.
These exceptions are why multiplying Rp10 billion by every five-digit code is not a reliable universal budgeting method.
Our practical recommendation is to prepare a worksheet with the actual activity, proposed KBLI, project location, relevant calculation rule and supporting cost assumptions. Identify any sector-specific provision before totalling the investment plan.
For illustration, a proposal combining accommodation and food service should first be separated into its real activities. The adviser can then assess the applicable grouping and land-and-building treatment for each part. The illustration does not establish the minimum investment for a particular hotel or restaurant.
Keep planned investment, realised investment and shareholder capital contributions distinguishable. They may relate to the same project, but they are not interchangeable accounting or licensing labels.
Article 27 provides a minimum 12-month restriction on moving placed or paid-up capital from the business account, with stated exceptions for asset purchases, building construction and business operations. It should not be described as either unrestricted personal money or an absolute ban on legitimate operating expenditure.
Existing companies must also consider the regulation's transitional provisions and their own licensing history before changing corporate records. The current general minimum is not, by itself, an instruction to reduce an existing company's capital.
Ask the notary, accountant and licensing adviser to explain how the company documents, investment plan and project budget fit together. Resolve differences using evidence rather than changing every number to match one headline.
For the separate recordkeeping question, see our paid-up capital and deed reconciliation guide. This article focuses on investment calculations and exceptions. Primary provisions reviewed: Articles 26–27 and the transition framework of Regulation 5/2025; review date 14 October 2026.