PT PMA Minimum Capital and Investment Value in Indonesia 2026

Establishing a foreign-owned company, commonly known as a PT PMA (Perseroan Terbatas Penanaman Modal Asing), in Indonesia involves more than determining the shareholders and their ownership percentages. Foreign investors also need to understand the differences between authorized capital, issued capital, paid-up capital, and investment value.

These terms are often confused because they all relate to the funding of a company. However, they serve different legal and regulatory purposes.

One of the most common questions from foreign investors is whether a PT PMA must have IDR 10 billion in paid-up capital. Under the latest investment regulations, this amount should not automatically be interpreted as the minimum paid-up capital.

Under the current general requirements, a PT PMA must have at least IDR 2.5 billion in issued and paid-up capital per limited liability company. Meanwhile, the investment value for a foreign investment company generally must exceed IDR 10 billion, excluding land and buildings.

Understanding this distinction is important when establishing a PT PMA, structuring its shares, and entering investment information into Indonesia’s Online Single Submission (OSS) system.

What Is the Difference Between Capital and Investment?

Capital and investment value are two different concepts.

In the context of an Indonesian limited liability company, capital relates to the company’s corporate and shareholding structure. This includes authorized capital, issued capital, and paid-up capital.

Investment value, on the other hand, represents the amount of investment planned or required to carry out the company’s business activities.

In simple terms, capital primarily relates to the corporate and shareholding structure, while investment value relates to the scale and requirements of the business operation.

Therefore, if a PT PMA has IDR 2.5 billion in paid-up capital, this does not mean that its total investment value is only IDR 2.5 billion.

Similarly, if the company’s investment value exceeds IDR 10 billion, the entire amount does not necessarily have to be recorded as paid-up capital.

This distinction is particularly important when preparing the company’s Deed of Establishment and entering business and investment information into OSS.

What Types of Capital Are There in an Indonesian Limited Liability Company?

To understand PT PMA capital requirements, investors should first distinguish between the main forms of capital recognized within an Indonesian limited liability company.

Authorized Capital

Authorized capital is the total nominal value of shares that the company is authorized to issue under its Articles of Association.

It establishes the company’s overall capital framework.

Not all authorized capital necessarily needs to be issued to shareholders immediately when the company is established.

Issued Capital

Issued capital is the portion of the authorized capital that has been subscribed or allocated to the shareholders.

In other words, it represents the shares that have actually been issued to the company’s shareholders.

Paid-Up Capital

Paid-up capital is the capital contributed by shareholders as payment for the shares they have subscribed to.

Issued capital and paid-up capital are therefore closely related to the company’s actual shareholding structure.

What Is the Difference Between Authorized Capital and Paid-Up Capital?

Authorized capital and paid-up capital serve different purposes.

Authorized capital represents the overall capital framework established under the company’s Articles of Association. Paid-up capital represents capital corresponding to shares that have been issued and paid for by the shareholders.

For example, a PT PMA may have:

Authorized capital: IDR 10,000,000,000

Issued capital: IDR 2,500,000,000

Paid-up capital: IDR 2,500,000,000

In this example, the company has authorized capital of IDR 10 billion but only IDR 2.5 billion has been issued and paid up.

The remaining authorized capital provides room for additional shares to be issued in the future, subject to the company’s Articles of Association and applicable corporate procedures.

What Is the Minimum Paid-Up Capital for a PT PMA?

Indonesia introduced an important change to PT PMA capital requirements in 2025.

Under Minister of Investment and Downstream Industry/Head of BKPM Regulation No. 5 of 2025, the minimum issued and paid-up capital for a foreign investment company is generally IDR 2.5 billion per limited liability company, unless otherwise provided under applicable laws and regulations.

This is particularly important because older guidance may still state that a PT PMA must have IDR 10 billion in issued and paid-up capital.

Under the latest general requirement, the minimum issued and paid-up capital has been reduced to IDR 2.5 billion.

However, foreign investors should still check whether their particular business sector is subject to specific capital requirements under sectoral regulations.

Therefore, IDR 2.5 billion should be understood as the general minimum requirement rather than an amount that automatically applies without exception to every business activity.

Does a PT PMA Need IDR 10 Billion in Capital?

Not necessarily.

If “capital” refers specifically to the minimum issued and paid-up capital, the general requirement is no longer IDR 10 billion.

The current general minimum issued and paid-up capital requirement for a PT PMA is IDR 2.5 billion per limited liability company.

So why is IDR 10 billion still commonly associated with PT PMA companies?

The answer lies in the distinction between paid-up capital and investment value.

The amount exceeding IDR 10 billion generally relates to the minimum investment value applicable to foreign investment companies, rather than the minimum amount of paid-up capital.

A PT PMA may therefore have IDR 2.5 billion in issued and paid-up capital while having a planned investment value exceeding IDR 10 billion.

This is one of the most important distinctions for foreign investors to understand when establishing a company in Indonesia.

What Is Investment Value?

Investment value represents the amount of investment planned or required to carry out the company’s business activities.

In the context of Indonesia’s OSS system, investment value forms part of the information associated with the company’s business activities.

Depending on the nature of the business, investment may relate to machinery, equipment, operational facilities, supporting assets, working capital, and other components required to operate the business.

The investment value should therefore reflect a reasonable business and investment plan rather than simply being an arbitrary number entered to satisfy the OSS system.

What Is the Minimum Investment Value for a PT PMA?

A PT PMA is generally categorized as a large-scale business under Indonesia’s investment framework.

As a general rule, the investment value of a PT PMA must exceed IDR 10 billion, excluding land and buildings.

However, calculating investment value is not always as simple as applying IDR 10 billion to every individual five-digit KBLI business classification.

The applicable calculation can depend on the business activity, KBLI classification, project location, and specific characteristics of the business.

This distinction becomes particularly important for companies that intend to register multiple business activities.

How Is PT PMA Investment Value Calculated?

The calculation of investment value can vary depending on the type of business activity.

For many business activities, investment requirements are determined by reference to the business activity and project location.

However, certain sectors are subject to specific methods of calculating the investment value.

Wholesale Trade

For wholesale trading activities, the investment calculation may be determined by reference to the relevant four-digit KBLI classification.

As a result, several five-digit KBLI classifications within the same four-digit KBLI group may not necessarily need to be treated as completely separate investment projects.

Food and Beverage Services

For food and beverage service activities, the investment calculation may take into account the two-digit KBLI group within one business location.

This can be particularly relevant for companies operating restaurants, cafés, bars, or other food and beverage activities from the same location.

Construction Services

For construction activities, investment calculations may also be determined by reference to the applicable KBLI grouping under the investment regulations.

Industrial Activities

For industrial activities, the calculation may take into account both the company’s KBLI classification and its production lines.

As a result, the investment structure of an industrial company can differ significantly from that of a service or trading company.

These differences demonstrate why foreign investors should assess their actual business structure before determining the investment value to be entered into OSS.

Example of PT PMA Paid-Up Capital

Consider a PT PMA with the following capital structure:

Authorized capital: IDR 10,000,000,000

Issued capital: IDR 2,500,000,000

Paid-up capital: IDR 2,500,000,000

Assume that each share has a nominal value of IDR 1,000,000.

The company would therefore have 2,500 issued and paid-up shares.

Those shares can then be allocated among the shareholders according to their agreed ownership percentages, subject to any foreign ownership restrictions applicable to the company’s business activities.

For example:

Shareholder A owns 2,499 shares with a nominal value of IDR 2,499,000,000.

Shareholder B owns 1 share with a nominal value of IDR 1,000,000.

The total issued and paid-up capital remains IDR 2,500,000,000.

However, the company’s IDR 2.5 billion paid-up capital does not mean its investment value is also IDR 2.5 billion.

The company must separately comply with the investment value requirements applicable to its business activities.

How Much Paid-Up Capital Does a PT Need in Indonesia?

The applicable amount depends on the type and status of the company.

For a domestic investment company or PT PMDN, capital arrangements are generally determined according to Indonesia’s company law framework and the agreement of the founders, subject to any specific sectoral requirements.

A PT PMA, however, is subject to specific foreign investment requirements.

Under the latest general investment rules, a PT PMA must have at least IDR 2.5 billion in issued and paid-up capital per limited liability company.

Specific sectors may nevertheless impose different or additional capital requirements.

What Is the Difference Between PMA and PMDN?

PMA stands for Penanaman Modal Asing, or Foreign Investment. It refers to investment activities in Indonesia involving foreign investors, whether the company is wholly foreign-owned or established as a joint venture between foreign and Indonesian investors.

PMDN stands for Penanaman Modal Dalam Negeri, or Domestic Investment. It refers to investment undertaken by domestic investors using domestic capital.

The difference between PMA and PMDN is not limited to the nationality of the shareholders.

Foreign investment status can also affect the business activities available to the company, foreign ownership limitations, business scale, investment requirements, licensing requirements, and investment reporting obligations.

Before establishing a PT PMA, foreign investors should therefore verify whether their intended KBLI business classifications are open to foreign investment.

Some business activities may permit 100% foreign ownership, while others may be subject to foreign ownership limitations or specific requirements.

Why Is Investment Value Important in OSS?

Investment value is an important component of the business information recorded through Indonesia’s Online Single Submission system.

It represents the investment plan associated with the company’s business activities.

For this reason, investment figures should not be entered merely to satisfy a minimum threshold.

The amount should reasonably correspond to the company’s business plan, operational requirements, and activities.

This is also relevant to the company’s subsequent investment reporting and licensing obligations.

For PT PMA companies with multiple KBLI classifications or multiple business locations, careful planning becomes even more important because the method of calculating investment value may differ depending on the activity.

Does Every PT PMA KBLI Require an Additional IDR 10 Billion Investment?

Not always.

This is another common misconception regarding PT PMA investment requirements.

The investment calculation must be assessed according to the method applicable to the relevant business activity.

For certain activities, several KBLI classifications may be calculated according to a broader KBLI grouping, a particular project location, or a production line.

Therefore, a PT PMA with multiple KBLI classifications should not automatically multiply IDR 10 billion by the number of five-digit KBLI codes registered by the company.

The applicable calculation should first be reviewed based on the company’s actual activities and the relevant investment regulations.

How Does Paid-Up Capital Affect Share Ownership?

Paid-up capital is directly connected to the company’s shareholding structure.

Each shareholder owns a certain number of shares with a specified nominal value.

The percentage of ownership is determined by comparing the number of shares owned by each shareholder with the total issued shares of the company.

For example, if a PT PMA has 2,500 issued and paid-up shares, each shareholder’s ownership percentage will be determined by the number of shares allocated to that shareholder.

Changes to issued and paid-up capital may therefore affect the company’s ownership structure, particularly when the company issues new shares, reduces its capital, or carries out other corporate actions.

What Should Foreign Investors Consider Before Determining PT PMA Capital and Investment Value?

Foreign investors should avoid determining the company’s capital and investment value solely based on the regulatory minimum.

First, identify the KBLI classifications that accurately correspond to the company’s intended business activities.

Second, determine whether those activities are open to foreign investment and whether any foreign ownership restrictions apply.

Third, establish an appropriate capital and shareholding structure.

Fourth, determine the number and nominal value of shares to be allocated to each shareholder.

Fifth, calculate the investment value according to the company’s business activities, project locations, and applicable investment calculation rules.

Finally, ensure that the information contained in the company’s Deed, Articles of Association, OSS data, NIB, and other business licenses remains consistent.

Taking these matters into account at the beginning can help prevent inconsistencies in the company’s corporate and licensing structure.

Conclusion

Paid-up capital and investment value are two different concepts under Indonesia’s foreign investment framework.

Paid-up capital relates to the company’s capital and shareholding structure. Under the current general requirement, a PT PMA must have at least IDR 2.5 billion in issued and paid-up capital per limited liability company.

Investment value, on the other hand, relates to the investment required to conduct the company’s business activities. As a general rule, a PT PMA must have an investment value exceeding IDR 10 billion, excluding land and buildings.

Therefore, the statement that every PT PMA must have IDR 10 billion in paid-up capital is no longer accurate when used without distinguishing paid-up capital from investment value.

Foreign investors should also be aware that investment calculations can differ depending on the KBLI classification, business activity, project location, production line, and applicable sector-specific regulations.

Before establishing or expanding a PT PMA, it is therefore important to assess the company’s capital structure, shareholding composition, KBLI classifications, investment plan, and licensing requirements together rather than treating each requirement separately.