Direct Answer
A PT PMA needs two capital numbers, not one. Since 2 October 2025, the minimum paid-up capital is IDR 2.5 billion per company (about USD 150,000). The total investment plan must still be above IDR 10 billion per business activity (KBLI code) and location, excluding land and buildings. You deposit the first amount in cash. You spend the second over time and report it each quarter.
Key Takeaways
- Two numbers, two jobs. Paid-up capital is cash in the bank. The investment plan is a spending commitment.
- Upfront cash fell by 75%. It dropped from IDR 10 billion to IDR 2.5 billion under BKPM Regulation No. 5 of 2025.
- KBLI codes multiply the plan. Two unrelated business activities mean a plan above IDR 20 billion.
- Capital has a lock-in. Paid-up capital generally stays in the company account for 12 months, except for real business spending.
- Plan beyond the minimum. Rent, salaries, stock and compliance costs decide whether the minimum is enough.
Why the Capital Number Feels So Scary
For many Vietnamese SME owners, one number stops the Indonesia plan: IDR 10 billion. It sounds like USD 600,000 sitting idle in a bank. That fear is common, and it is mostly based on a misunderstanding.
The real rule is simpler and friendlier. A PT PMA (foreign-owned company) has two separate capital rules. Once you understand them, the “scary number” becomes a budget you can plan. This guide shows how to do that.
The Two Numbers Explained
Indonesia’s investment rule is set by BKPM Regulation No. 5 of 2025. It took effect on 2 October 2025. It separates two ideas that older guides often mixed up.
Paid-Up Capital vs Investment Plan
| Item | Amount | What it means |
|---|---|---|
| Paid-up capital | IDR 2.5 billion per company (about USD 150,000) | Real money from shareholders, deposited in the company’s Indonesian bank account |
| Investment plan | More than IDR 10 billion per KBLI code and location, excluding land and buildings | A spending plan you carry out over time and report on |
The investment plan is not a deposit. It covers equipment, fit-out, stock, staff and working capital that you spend as the business grows. In plain terms, you promise to build a business of a certain size, and you fund the first part in cash.
One warning: some sectors have higher rules. Financial services, for example, follow their own regulator’s capital rules. Always confirm your sector first.
What Changed, and What Did Not
Before October 2025, the paid-up capital for new PT PMA companies was IDR 10 billion under a 2021 rule. The new rule cut it to IDR 2.5 billion. The “more than IDR 10 billion” investment test stayed.
So the entry barrier dropped, but the growth commitment did not. Founders who read only the headline “capital cut by 75%” can plan wrongly. They may find out at licensing that a much larger plan is still required.
Why Your KBLI Choice Is a Budget Decision
The investment plan applies per business activity, not per company. A KBLI code is the five-digit code that describes your activity. Each code carries its own plan above IDR 10 billion. Our guide to KBLI codes for foreign investors explains how to research them.
Here is a simple example:
- A Vietnamese furniture maker wants to make and sell furniture in Indonesia.
- Manufacturing may need one KBLI code. Wholesale selling may need another.
- Two codes can mean a plan above IDR 20 billion, instead of IDR 10 billion.
Some sectors count the rule differently. Wholesale trade and construction use the first four digits of the code. Food and beverage uses the first two digits per location. Choose only the codes you truly need, and describe them correctly.
Budgeting Beyond the Minimum
Meeting the minimum gets you registered. It does not tell you whether your business will survive its first year. Authorities also expect a realistic plan. EZPZ’s guide to PT PMA challenges notes that weak or vague investment plans can lead to rejection or later compliance problems.
Use a simple three-layer budget:
- Setup costs. Company registration, licenses, office address and legal documents.
- Operating costs. Salaries, rent, utilities, marketing and accounting for at least 12 months.
- Growth costs. Equipment, stock, vehicles and a second location or product line.
Below is an illustration only. It is not a legal template, and your numbers will differ.
Illustrative Budget Split for an Investment Plan
| Budget line | Share of plan |
|---|---|
| Equipment and fit-out | 35% |
| Stock and supplies | 25% |
| Salaries and rent (first year) | 20% |
| Marketing and sales setup | 10% |
| Compliance, accounting, reserves | 10% |
This is an illustration only. It is not a legal template, and your numbers will differ.
Your plan should match your business. A trading firm with no stock or warehouse spending looks inconsistent, and BKPM may ask for proof of how you will use the capital.
The 12-Month Rule and Cash Flow
Once deposited, paid-up capital generally cannot leave the company account for 12 months. The exceptions are real business uses, such as buying assets, construction or operations backed by invoices or contracts.
This affects your cash plan. The IDR 2.5 billion is working money for the business. It is not a flexible reserve you can move back to Vietnam. Plan your parent company’s own cash needs separately.
Funding from Vietnam
Most Vietnamese SMEs fund the PT PMA through a bank transfer from the parent company or from the owners. Think about these points early:
- Currency. You will move VND-based funds into a company that spends in IDR. Plan for exchange-rate changes and bank fees.
- Timing. Capital goes into the company’s Indonesian bank account after incorporation. Read our guide to opening a corporate bank account for a PT PMA so the account is ready on time.
- Paper trail. Keep transfer records, contracts and invoices. They support your capital reports.
- Vietnamese rules. Outbound investment from Vietnam may have its own registration and foreign exchange steps. Confirm these with your Vietnamese legal and banking advisers before you transfer funds.
Tax and Reporting After Setup
Capital planning does not end at registration. A PT PMA must report investment progress each quarter through the OSS system. The report is called LKPM. You also need a tax ID. Our NPWP guide for foreign business owners covers the steps and deadlines.
Yearly financial reporting matters too. Read our overview of financial statements in Indonesia to see what to expect after your first year.
Check Your Structure First
Not every company needs a PT PMA straight away. A representative office has no minimum capital requirement, but it cannot earn revenue. It can work as a testing step. Compare your options in our guide to foreign investment structures in Indonesia and our overview of common business structures.
Licensing also affects your budget. Higher-risk activities may need extra permits and fees. See our guide to business licenses and permits in Indonesia.
A Simple Five-Step Capital Plan
- Pick your activities. List what you will really do in Indonesia in the first two years.
- Match KBLI codes. Use as few as you need, and check sector rules.
- Build the three-layer budget. Include setup, operating and growth costs.
- Plan your funding route. Decide who sends money, when, and in which currency.
- Test the cash flow. Check that the 12-month lock-in still leaves room for your parent company.
The capital rule is a planning exercise. A clear plan reduces the risk of rejection, delays and cash shortages.
About EZPZ Indonesia
EZPZ Indonesia is your one-stop solution for expats and foreign investors in Indonesia, specializing in PT PMA company setup, KITAS visa processing, and business research. Since 2021, we have helped clients navigate Indonesia’s regulations and requirements, making it easier to build and grow their businesses with confidence. Let us handle the complexities so you can focus on your success in Indonesia.
Get a Free Quote →Next Step
Capital planning looks different for each company. A trading firm, a factory and a cafe chain need very different budgets. Our team can review your activities, KBLI codes and funding route before you commit money.
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Frequently Asked Questions
What is the minimum paid-up capital for a PT PMA in 2026?
It is IDR 2.5 billion per company, about USD 150,000. This has applied since 2 October 2025 under BKPM Regulation No. 5 of 2025. Some regulated sectors need more.
Do I need to deposit IDR 10 billion?
No. IDR 10 billion is the investment plan, not a deposit. You carry out the plan over time and report progress each quarter.
Does every business activity need its own IDR 10 billion plan?
Generally, yes. The plan applies per five-digit KBLI code and per project location, excluding land and buildings. Wholesale, food and beverage, and construction use different counting rules.
Can I take the paid-up capital back to Vietnam?
Not freely in the first 12 months. It can be used for assets, construction or documented operating costs. Dividends and other transfers follow separate rules, so confirm them with an adviser.
Can I start with a representative office instead?
Yes, if you only need market research and coordination. A representative office has no minimum capital rule, but it cannot sell or earn income in Indonesia.
