Introduction
With the enactment of BKPM Regulation No. 5 of 2025 (Perka BKPM 5/2025), foreign investment companies (PMA) in Indonesia must take several actions to stay compliant.
The regulation introduces a reduced paid-up capital requirement and a mandatory 12-month capital retention period, reshaping how investors manage licensing, reporting, and financial documentation in the Online Single Submission (OSS-RBA) system.
Step 1 — Review Capital Structure in the Articles of Association
Each PMA company should review its Articles of Association (Anggaran Dasar) to ensure the minimum paid-up capital (IDR 2.5 billion) is accurately reflected.
Existing companies that already meet this threshold generally do not need amendments, but updates may be required when:
- Adding new KBLI business fields;
- Expanding into new project locations; or
- Changing share composition or ownership structure.
This review ensures corporate documents remain aligned with current investment rules.
Step 2 — Ensure Capital Placement and Retention
Newly established PMA companies must deposit and retain their paid-up capital for at least 12 months in the company’s bank account, as required under Article 26 of BKPM 5/2025.
During OSS licensing, founders must complete a self-declaration confirming the capital will remain for that period and be used only for legitimate business purposes—such as operational expenses, asset purchases, or facility construction.
Failure to comply may trigger administrative sanctions, delayed licensing, or restricted access to investment facilities.
Step 3 — Maintain Supporting Documentation
Accurate documentation is essential to demonstrate compliance. PMA companies should keep:
- Bank statements showing the initial capital deposit;
- Payment records for equipment, property, or construction; and
- Proof of operational expenses linked to declared investments.
These documents are vital during BKPM audits or LKPM submissions and serve as evidence that capital has been used appropriately.
Step 4 — Update Investment Data in the OSS System
All information recorded in the OSS-RBA system—capital amount, investment value, and project data—must remain accurate and consistent.
If there are changes in business scale, KBLI classification, or project location, companies should promptly update their OSS profile.
Keeping data synchronized prevents licensing inconsistencies and ensures smooth LKPM reporting and permit renewals.
Conclusion
BKPM Regulation No. 5/2025 marks a shift toward simpler yet more accountable foreign-investment governance.
To stay compliant, PMA companies should:
- Review and update their Articles of Association;
- Deposit and retain paid-up capital for 12 months;
- Maintain complete financial records; and
- Keep OSS data current and consistent.
By following these steps, investors can maintain compliance, avoid administrative issues, and strengthen credibility within Indonesia’s evolving regulatory framework.