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 2026, Indonesia simplified its investment rules. 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?
The main update for 2026 is introduced by BKPM Regulation No. 5 of 2025. This regulation now clearly distinguishes between funds spent and funds committed.
- Paid-Up Capital (The Entry Barrier): This has been reduced to IDR 2.5 billion (approximately USD 160,000). This amount must be deposited into the company’s 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 current ILA guidance, your IDR 2.5 billion paid-up capital must typically remain in the company account for at least 12 months, unless used for legitimate business expenses or investments.
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 – 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 – IDR 25 million per year
Services include:
- Virtual Office arrangement (critical under current zoning regulations)
- 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 E28 Investor KITAS.
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 – IDR 5 million (USD 130 – 320) per month.
Annual Corporate Tax Filing
- Year-end reporting and reconciliation.
- Budget: IDR 5 million – 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.
