Understanding PT PMA Capital Requirements
PT PMA (Perseroan Terbatas Penanaman Modal Asing) companies in Indonesia must meet minimum capital requirements set by the government. These requirements ensure that foreign investors bring meaningful investment to the Indonesian economy.
As of 2025, the standard minimum requirements are:
- Investment Value: IDR 10 billion (~$625,000 USD)
- Paid-up Capital: IDR 2.5 billion (~$156,250 USD)
Capital Requirements Breakdown
Minimum Investment Value
Total planned investment for the company over its lifetime
Minimum Paid-up Capital
Initial capital that must be deposited at company registration (updated Oct 2025)
Minimum Per Shareholder
Minimum capital contribution per shareholder (at least 2 required)
What Counts Towards Capital?
Your capital doesn't have to be 100% cash. The investment value can include various forms of capital contribution:
| Component | Description | Accepted |
|---|---|---|
| Land & Buildings | Purchase or long-term lease of property | |
| Machinery & Equipment | Production equipment, computers, vehicles | |
| Working Capital | Cash for operational expenses (1-2 years) | |
| Pre-operational Costs | Setup costs, licenses, initial inventory | |
| Intangible Assets | Patents, licenses, software (with appraisal) |
Exceptions & Special Cases
Sector-Specific Requirements
Some sectors have higher capital requirements. Construction, mining, and financial services may require significantly more capital. Always verify requirements for your specific KBLI codes.
Priority Sectors
Businesses in priority sectors (technology, manufacturing, tourism infrastructure) may qualify for special incentives and potentially more flexible capital structuring options.
Proof of Capital Requirements
When establishing your PT PMA, you'll need to provide evidence of your capital. Here's what is typically required:
- Bank statements showing available funds (for cash contributions)
- Asset appraisals from certified appraisers (for non-cash assets)
- Articles of Association stating capital structure
- Investment plan submitted through OSS system
- Capital deposit proof after company registration
Frequently Asked Questions
As of October 2025, the minimum paid-up capital is IDR 2.5 billion (~$156,250 USD), while the total investment value must be at least IDR 10 billion. The capital can be a combination of cash, equipment, land, buildings, and other assets. You need to demonstrate a plan for investing the full IDR 10 billion over the company's lifetime.
Investment value can include: land and buildings (purchased or long-term lease), machinery and equipment, working capital, pre-operational costs, intellectual property, and other business assets. The key is that these represent your total planned investment in the Indonesian operation.
Yes, some sectors have higher minimum capital requirements. For example, construction services, mining, and certain financial services may require higher minimum capital. Additionally, sectors in the Priority list may have specific investment thresholds for incentive eligibility.
The minimum paid-up capital is IDR 2.5 billion, with a total investment value commitment of IDR 10 billion. You can structure your investment plan to show the full IDR 10 billion will be invested over time, starting with the IDR 2.5 billion paid-up capital. Consult with us for sector-specific guidance.
You need to provide: (1) a capital structure statement in your articles of association, (2) bank statements showing available funds, (3) asset appraisals for non-cash contributions, and (4) an investment plan submitted to the OSS system. The notary will verify these during company establishment.
If you cannot meet the standard PT PMA capital requirements, alternatives include: (1) forming a joint venture with Indonesian partners, (2) starting with a representative office first, (3) using a local nominee structure (not recommended due to legal risks), or (4) investing in sectors with lower thresholds if applicable to your business.