Key takeaways
- Since 2 October 2025, the minimum paid-up capital of a PT PMA is IDR 2.5 billion (BKPM Regulation No. 5 of 2025), down from IDR 10 billion. The investment plan of more than IDR 10 billion per business line per location, excluding land and buildings, still applies.
- The investor KITAS has a separate test: IDR 10 billion of shares held personally by the applicant. A company at the minimum capital cannot sponsor one.
- The real cost of a PT PMA is compliance, not incorporation: monthly tax filings, the annual return and quarterly LKPM reports are mandatory from the first month, with or without income.
Establishing a PT PMA (Foreign-Owned Company) remains the primary legal pathway for foreign investors seeking to operate in Indonesia. Whether launching a boutique resort in Lombok or a tech consultancy in Bali, a PT PMA is the foundation for lawful business activity, licensing, and investor residency.
In October 2025, Indonesia simplified its capital rules for foreign investment. Despite these changes, you must still meet capital requirements and comply with the rules. Before entering the market, know the difference between paid-up capital, total investment, setup costs, and ongoing compliance expenses.
This article outlines the capital structure, regulatory thresholds, and compliance obligations required to establish and maintain a PT PMA in 2026.
What Changed in 2026: Paid-Up Capital vs. Total Investment Commitment?
Note for Bali: since the third week of May 2026, 18 business lines (KBLI codes) are closed to new PT PMA applications in Bali, including small hotels, other accommodation, real estate, cafes, vehicle rental, management consulting and several retail categories. Existing licences are unaffected. Check the full list before choosing your KBLI codes.
The main update for 2026 is set out in BKPM Regulation No. 5 of 2025. This regulation now clearly distinguishes between funds spent and funds committed.
- Paid-Up Capital (The Entry Barrier): Authorities have reduced this to IDR 2.5 billion (approximately USD 160,000). The company must deposit this amount into its bank account upon incorporation.
- Total Investment Value (The Commitment): To maintain your PT PMA status, you must commit to investing IDR 10 billion per business activity (KBLI). This includes equipment, rent, and operational costs.
- The 12-Month Rule: Under BKPM Regulation 5 of 2025, the paid-up capital must remain in the company for at least 12 months from deposit, unless it is used for the company’s own asset purchases, construction or operations, which must be documented and declared in OSS.
The distinction is critical. Paid-up capital shows commitment, while the IDR 10 billion is the required investment that must be realized.
| Term | Definition |
|---|---|
| PT PMA (Foreign-Owned Company) |
An Indonesian limited liability company with foreign shareholding, serving as the primary legal vehicle for foreign direct investment and business operations. |
| Paid-Up Capital | The portion of subscribed capital that must be deposited into the company’s bank account upon incorporation, set at IDR 2.5 billion under 2026 rules. |
| KBLI (Business Classification Code) |
Indonesia’s official business activity classification system determining licensing scope and minimum investment thresholds. |
ILA Global Service Packages: What Are You Paying For?
ILA Global Consulting serves as your local strategic partner, providing more than paperwork filing. Its services are structured in three categories:
The Foundations (Deed & NIB)
Cost Range: IDR 25 million to IDR 40 million
Includes:
- Company name reservation
- Notarial Deed of Establishment
- Ministry of Law approval (SK Kemenkumham)
- NPWP (Tax Identification Number)
- Business Identification Number (NIB) via OSS-RBA (for low-risk classifications)
Tax and Accounting Support
Cost Range: IDR 7 million to IDR 25 million per year
Services include:
- Registered office address (Bali no longer accepts a virtual office as a PT PMA address)
- NPWP registration within the Coretax system
- Assistance with initial corporate bank account setup
Visa & Stay Permits (Investor KITAS, E28)
If you intend to reside in Indonesia to operate your business, you’ll need an Investor KITAS (E28A)
Estimated Cost: Approximately IDR 19.5 million per person
Eligibility Note: The individual’s shareholding must be valued at IDR 10 billion, even though the company-wide paid-up capital threshold is IDR 2.5 billion.
| Term | Definition |
|---|---|
| Notarial Deed of Establishment | The formal incorporation document executed before a notary, establishing the legal existence of the PT PMA. |
| SK Kemenkumham | The official approval decree from the Ministry of Law confirming the company’s legal registration. |
| NPWP (Tax Identification Number) |
The corporate taxpayer registration number required for tax reporting and banking purposes. |
| NIB (Business Identification Number) |
A unified business license number issued through the OSS-RBA system, serving as the primary operational permit. |
| Coretax System | Indonesia’s integrated digital tax reporting platform used for registration, filing, and compliance monitoring. |
What Are the Ongoing Costs of Staying Compliant?
The main financial exposure in 2026 is not incorporation but compliance maintenance. ILA Global Consulting provides post-setup support in the following areas:
Monthly Tax Reporting
- Required under the Coretax system.
- Budget: IDR 2 million to IDR 5 million (USD 130 to 320) per month.
Annual Corporate Tax Filing
- Year-end reporting and reconciliation.
- Budget: IDR 5 million to IDR 10 million.
Quarterly LKPM Reporting
Mandatory reporting of investment realization. Failure to report progress toward the IDR 10 billion commitment may result in AHU system blocking, affecting visa renewal and corporate changes.
In 2026, regulatory focus is centered on “investment realization.” Authorities expect demonstrable progress, not just declared commitments.
| Term | Definition |
|---|---|
| Monthly Tax Reporting | Mandatory recurring submission of corporate tax data through the Coretax system. |
| Annual Corporate Tax Filing | Year-end financial reporting and tax reconciliation required under Indonesian tax law. |
| LKPM (Investment Activity Report) |
A mandatory quarterly report detailing realization of committed investment, submitted to the investment authority. |
| AHU System Blocking | An administrative restriction triggered by non-compliance, preventing corporate changes, visa renewals, or licensing updates. |
Why Strategic Structuring Matters in 2026
The Indonesian government increasingly monitors capital deployment, tax reporting, and investment realization through integrated digital systems. A PT PMA that fails to align paid-up capital, LKPM reporting, and operational activity risks administrative freezing or licensing complications.
ILA Global Consulting bridges the gap between strategic legal setup and long-term regulatory compliance, ensuring capital commitments, licensing, tax reporting, and residency planning remain aligned.
Setting up a PT PMA in 2026 requires more than meeting a capital threshold. You also need the right structure, an understanding of the regulations, and ongoing compliance with tax and investment reporting requirements.
ILA Global Consulting supports foreign investors with PT PMA incorporation, capital structuring, processing Investor KITAS, Coretax registration, and ongoing LKPM compliance, ensuring your investment is legally established and sustainably maintained.
Connect with ILA Global Consulting to structure your PT PMA correctly and build your Indonesian business on a compliant, strategic foundation.
Frequently Asked Questions:
What is the minimum paid-up capital for a PT PMA in 2026?
IDR 2.5 billion under BKPM Regulation No. 5 of 2025, in force since 2 October 2025. It replaced the previous IDR 10 billion. Some sectors set a higher threshold.
Is the IDR 10 billion investment requirement still in force?
Yes. The company commits to an investment plan of more than IDR 10 billion for each business line (KBLI) at each location, excluding land and buildings, and reports progress in its quarterly LKPM. It is not a deposit.
Can the paid-up capital be used to run the business?
Yes, for the company’s own asset purchases, construction and operations, as long as the spending is documented. Outside those uses the capital is expected to stay in the company for at least 12 months after deposit.
Does the lower capital make it easier to get an investor KITAS?
No. The investor KITAS requires IDR 10 billion of shares held personally by the applicant, regardless of the company’s minimum capital. Founders who want that permit plan their capital accordingly.
What does a PT PMA have to file every month and every quarter?
Monthly tax returns through Coretax, even with no income, the annual corporate tax return, and a quarterly investment activity report (LKPM) to BKPM. Missing LKPM reports can lead to the company being blocked from making changes in OSS and AHU.
