Transition from Previous Regulations
The government has introduced a major reform through BKPM Regulation No. 5 of 2025 (Perka BKPM 5/2025).
This regulation revokes the previous BKPM Regulations No. 3, 4, and 5 of 2021, which covered the Risk-Based Business Licensing (PBBR) system, the Online Single Submission (OSS) platform, and investment procedures.
As a result, the old capital provisions for Foreign Investment Companies (PMA) are no longer valid.
All requirements now follow the updated Perka BKPM 5/2025 rules.
New PMA Paid-Up Capital Requirement
The new regulation introduces a major change to paid-up capital.
Under the previous BKPM Regulation No. 4 of 2021, each PMA company had to provide at least IDR 10 billion in paid-up capital.
They also needed an additional IDR 10 billion investment for every new KBLI code and business location, excluding land and buildings.
Many investors found these requirements too heavy, especially those starting small or diversifying their business.
Lower PMA Paid-Up Capital, Same Investment Value
Under Perka BKPM 5/2025, the minimum paid-up capital is now IDR 2.5 billion.
However, the minimum investment value stays the same—more than IDR 10 billion per business field (five-digit KBLI) per project location, excluding land and building costs.
In practice, this capital change is administrative.
It improves accessibility for investors while keeping Indonesia’s rule that every project must show real investment value.
The PMA paid-up capital BKPM Regulation 5/2025 keeps Indonesia open to investors but ensures financial integrity.
Implications for Investors
For both existing PMA companies and new entrants, the regulation offers more flexibility in structuring capital and expanding operations.
The lower threshold reduces entry barriers, while the unchanged minimum investment protects economic quality.
This balanced policy simplifies regulations without weakening financial discipline.
Foreign investors should review their capital structure and update LKPM reports in the OSS system to stay compliant.
Conclusion
Through BKPM Regulation No. 5 of 2025, Indonesia now sets the PMA paid-up capital at IDR 2.5 billion while keeping the minimum investment above IDR 10 billion.
The policy helps more foreign investors enter Indonesia and supports sustainable growth under a strong governance framework.
The PMA paid-up capital BKPM Regulation 5/2025 reflects Indonesia’s commitment to simpler licensing, clear compliance, and competitive investment standards.