What is BKPM Regulation 5/2025 and the new IDR 2.5 billion PT PMA capital rule?
Anonymous
I keep seeing two different numbers for the minimum capital to open a foreign company (PT PMA) in Indonesia — some say IDR 2.5 billion, others IDR 10 billion. I run a small digital agency and I’m looking at setting up in Bali. What did BKPM Regulation 5/2025 actually change, and is there a catch I should know about before I wire any money?
1 reply
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Kevin Tan · Foreign Client Director · 23 June 2026
Good question — this is the single biggest change for foreign founders in 2026, and there are really three numbers to keep straight.
- Minimum paid-up capital: IDR 2.5 billion. Under BKPM Reg 5/2025, the upfront paid-up capital for a PT PMA dropped 75% — from IDR 10 billion to IDR 2.5 billion. This is the cash that actually has to sit in the company's bank account.
- The 12-month lock-up (the catch). That capital cannot leave the company account for 12 months unless it's spent on assets, construction or genuine operations — and you prove that spending through your quarterly LKPM reports. The rule exists to stop people parking temporary funds to clear the bar and then withdrawing them.
- Minimum investment plan: still over IDR 10 billion. The total investment commitment per 5-digit KBLI per location is unchanged at more than IDR 10 billion (excluding land and buildings). This is a plan over time, not cash up front.
So who benefits? Mid-tier service firms, software companies and agencies who were priced out at IDR 10 billion can now incorporate at IDR 2.5 billion. The trade-off is that how you spend the capital is now audited. If you go quiet on LKPM, the OSS system can suspend your NIB automatically — and that cascades into KITAS renewals failing.
Two practical takeaways: get the PT PMA structure and KBLI right first, and put your LKPM and lock-up compliance on a managed footing from day one rather than discovering the obligation a quarter late.