Published September 14, 2020 · Updated October 18, 2026
What Do Investment Value and Paid-Up Capital Mean for the PT PMA Minimum Capital?
Five terms set a PT PMA's capital structure: authorised, subscribed and issued capital, paid-up capital, and investment value. BKPM thresholds apply to issued and paid-up capital and investment value.
A PT PMA minimum capital plan depends on separating the share-capital figures from the investment commitment. In this blog, we discuss the capital thresholds, sector-specific exceptions, the effect of KBLI selection and the funding sequence. The five concepts below build on each other, from the share structure in the notarial deed to the multi-year investment commitment declared to the licensing authority.
For context, a PT PMA is an Indonesian corporate vehicle that may be partly or wholly owned by international investors. Shareholders' exposure does not extend to personal assets beyond the shares they subscribe for. Whether foreign ownership can reach 100% depends on the specific business activity.
1. Authorised Capital (Modal Dasar)
The total share capital the company may issue, as fixed in its notarial deed of establishment. Shareholders cannot subscribe beyond this ceiling, and it can be increased later by amending the deed.
2. Subscribed Capital (Modal Ditempatkan)
Subscribed capital is the portion of the authorised capital that shareholders have committed to take up. It cannot exceed the authorised ceiling, and it is the reference point from which issued and paid-up capital are drawn once the shares are actually allotted and funded.
3. Issued Capital
The shares the company has actually allotted to its shareholders. Under Minister of Investment and Downstreaming/Head of BKPM Regulation No. 5 of 2025, the issued and paid-up capital of a PT PMA must be at least IDR 2.5 billion.
4. Paid-Up Capital (Modal Disetor)
The money shareholders have genuinely deposited into the company's bank account after incorporation. For PMA property-development and property-operation activities covered by Article 26(6), Article 27 restricts transfers from the business account for at least 12 months from placement or payment.
5. Investment Value (Nilai Investasi)
The total amount committed over the life of the plan: machinery, inventory, premises and working capital. It is a forward-looking commitment, not a day-one cash balance.
How Much Capital Does a PT PMA Actually Need in 2026?
A PT PMA generally needs at least IDR 2.5 billion in issued and paid-up capital. Its investment value must be above IDR 10 billion per five-digit KBLI code per project location. Article 26 sectoral exceptions apply.
These thresholds come from Minister of Investment and Downstreaming/Head of the Investment Coordinating Board (BKPM) Regulation No. 5 of 2025. Article 26(10) lowers the required issued and paid-up capital for a foreign-owned company from IDR 10 billion to IDR 2.5 billion, unless another regulation sets a higher amount.
The investment commitment remains above IDR 10 billion for each five-digit KBLI code and each project site, with land and buildings normally excluded. Article 26 exceptions can change that treatment: for certain activities, the 2025 rules now allow land and buildings to be counted toward the calculation.
There is no need to place the whole investment amount before incorporation. The commitment may be met progressively through real business spending once operations begin. For PMA property-development and property-operation activities referred to in Article 26(6), Article 27 bars transfers out of the company account for at least 12 months from placement or payment. The restriction does not cover asset purchases, building construction or running the business, and breaches can lead to administrative sanctions from warnings up to license revocation.
How Do Regulated Sectors Change the Capital Requirements?
The IDR 2.5 billion baseline does not apply to every activity. Financial services, logistics and certain trading lines answer to separate regulators with higher capital rules.
Most sectors follow the standard position described above. Foreign investment in banking, insurance or financing must meet OJK capital rules instead. Those rules are set far above the baseline and require separate licensing rounds. OJK-regulated entities also face annual reporting duties, including a statutory financial audit in Indonesia for licensed financial institutions.
Freight forwarding and logistics follow line-specific rules under the Ministry of Transportation framework, with higher capital for certain business lines. Companies importing or distributing certain consumer goods face separate product-certification steps — see our guide on Getting SNI License in Indonesia.
The table below sets the standard position against the sectors with their own capital rules.
PT PMA Capital Rules: Standard vs Regulated Sectors
| Business activity | Paid-up and issued capital | Investment value rule | Key notes |
|---|---|---|---|
| Standard PT PMA (most KBLI codes) | At least IDR 2.5 billion | Above IDR 10 billion per five-digit KBLI code per location, excluding land and buildings | Baseline under BKPM Regulation No. 5 of 2025; may be fulfilled progressively |
| Property development and management | At least IDR 2.5 billion | Standard investment-value rule applies | Paid-up capital cannot be transferred out for 12 months after establishment, except for asset purchases, construction or operations |
| Financial services (banking, insurance, financing) | Set by OJK sectoral regulations, typically far above the baseline | Determined by the sector-specific licensing regime | Separate OJK approval is required in addition to standard incorporation |
| Logistics and freight forwarding | Higher than the baseline for certain business lines | Per-line investment thresholds may apply | Capital and licensing rules set under the Ministry of Transportation framework |
| Trading and distribution | Higher than the baseline for certain trading lines | Standard investment-value rule applies | Confirm the specific KBLI code before fixing the capital structure |
Why Does KBLI Selection Drive Your Capital and Ownership Plan?
KBLI selection affects licensing, foreign-ownership eligibility and investment planning. Under the general rule, the IDR 10 billion threshold applies per five-digit KBLI code. Article 26 exceptions may apply.
KBLI stands for Klasifikasi Baku Lapangan Usaha Indonesia, the national business-activity classification used across the licensing system. Every activity in the deed maps to a five-digit code, and every code attracts its own investment-value threshold per location. Three checks matter before the capital structure is fixed.
1. Match Every Activity to the Right KBLI Code
Each line of business needs its own code. A company running two distinct activities typically carries two separate investment-value commitments, which directly affects how much capital the plan must support.
2. Confirm Foreign-Ownership Eligibility
Some codes are fully open to foreign shareholders, some are capped below 100 percent, and others are reserved for domestic investors. Eligibility should be checked before shareholdings are fixed, because an ineligible structure will fail at the licensing stage.
3. Plan Capital Around Scale and Reporting Duties
Scale classification determines ongoing obligations. Medium and large companies, including most PT PMAs, file the quarterly investment activity report (LKPM) by the 15th of January, April, July and October under the 2025 deadlines. KBLI 2025 was implemented in OSS and AHU by 18 June 2026; existing licences remain valid, and businesses need to make their own adjustment only where there is a substantive change in their business purpose, objectives or scope.
What Happens Between Incorporation and a Funded Bank Account?
Paid-up capital is not parked in a bank account on day one. Incorporation comes first, the corporate account follows, and a capital statement letter bridges the gap.
Many founders wrongly assume the capital must be deposited before incorporation. In practice, a corporate bank account can only be opened after the company legally exists. Until then, shareholders sign a capital statement letter (surat pernyataan penyetoran modal) confirming that the money is available and will be deposited once the account is open. This letter is accepted in the Ministry of Law and Human Rights (Kementerian Hukum dan HAM) process, which was updated by Ministry of Law Regulation No. 49 of 2025, effective 17 December 2025.
The standard order is as follows:
- Reserve the company name through the Ministry of Law and Human Rights (AHU) system, usually approved within one to three days.
- Sign the deed of establishment before an Indonesian notary, recording the shareholders, capital structure and KBLI codes.
- Obtain the legal-entity approval (Surat Keputusan Pengesahan) issued by the Ministry of Law and Human Rights.
- Secure the business identification number by following our guide on how to obtain a Company Registration Number (NIB) in Indonesia through the Online Single Submission (OSS) platform.
- Register for tax identification numbers (NPWP) with the Directorate General of Taxes.
- Open the corporate bank account after incorporation; our article on Opening a Bank Account in Bali covers the documents banks ask for across regions.
- Deposit the paid-up capital, then keep the capital statement letter and deposit evidence on file for the bank and the licensing authority.
Documents that support this sequence include:
- Passport or national ID of each shareholder and director
- Deed of establishment and legal-entity approval
- NIB and NPWP documents
- Registered office address or lease agreement
- Capital statement letter signed by the shareholders
- Bank know-your-customer forms for the account opening
In practice, we help clients model this early. A trading company with one five-digit KBLI code plans around IDR 2.5 billion paid-up and a progressive investment programme above IDR 10 billion. A manufacturer adding a second business line at the same location doubles that investment-value commitment.
Typical PT PMA Setup Timeline
| Stage | What happens | Indicative duration |
|---|---|---|
| Name reservation | Company name approved via the AHU system | 1–3 days |
| Deed and approval | Notarial deed signed; legal-entity approval issued | 1–2 weeks |
| NIB and NPWP | Business identification and tax numbers processed via OSS | 3–7 days |
| Bank account | Corporate account opened after incorporation | 1–2 weeks |
| Capital deposit | Paid-up capital deposited after the account is opened | Per the capital statement letter |
Why Does Indonesia Set a Minimum Capital Requirement at All?
The thresholds reserve small and medium-scale business for domestic enterprises and ensure foreign-invested companies arrive with enough capital to operate for the long term.
The government deliberately keeps lower-capital business segments for domestic micro, small and medium enterprises. The higher entry bar for foreign investment channels inbound capital into larger, capital-intensive activities rather than crowding local firms.
The rules also protect the company itself. A minimum paid-up capital ensures the entity holds real assets to meet its obligations, and the 12-month placement rule keeps committed funds working inside Indonesia. For shareholders, it underlines that the capital behind the license is genuine and sustainable.
Conclusion
Setting up a foreign investment company in Indonesia is now cheaper at the point of entry, but the planning discipline has not changed. Paid-up capital of IDR 2.5 billion opens the door; the investment-value commitment above IDR 10 billion per KBLI code per location is what keeps the license viable. Sector rules, KBLI selection and the 12-month placement restriction all shape the final number, so each should be confirmed before funds move.
As a Corporate Services Provider, 3E Accounting Indonesia validates capital structures, KBLI eligibility and sector-specific rules before clients commit funds. Our incorporation services in Indonesia cover the deed, Ministry of Law approval, NIB, tax registration and bank-account coordination as one workflow. Founders can also review the common setup mistakes foreign founders make in Indonesia before filing. Speak to our team to turn these numbers into a workable capital plan.
Plan Your PT PMA Capital with Confidence
Tell us your planned activities and we will confirm the capital, KBLI and licensing position before you commit funds.
Frequently Asked Questions
IDR 2.5 billion in issued and paid-up capital under BKPM Regulation No. 5 of 2025, unless a sector-specific regulation sets a higher amount.
No. The commitment above IDR 10 billion per five-digit KBLI code per location can be fulfilled progressively through actual business expenditure once operations begin.
Yes. Paid-up capital can be used for asset purchases, construction and operating costs. The 12-month transfer restriction applies only to Article 26(6) PMA property-development and property-operation activities. For those activities, Article 27 restricts transfers from the company account for at least 12 months from placement or payment. It permits asset purchases, building construction and business operations.
After incorporation, once the corporate bank account is opened. During set-up, a capital statement letter signed by the shareholders confirms that the funds are available.
No. Banking, insurance and financing answer to the OJK with much higher capital requirements, while freight forwarding follows Ministry of Transportation rules for certain business lines.
Abigail Yu
Director
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.
