PT PMA (Penanaman Modal Asing) is a foreign-owned limited liability company in Indonesia that allows up to 100% foreign ownership in most business sectors.

How long does it take to register a company in Indonesia?

Company registration typically takes 4-8 weeks for PT PMA and 3-6 weeks for local PT companies, depending on the complexity and requirements.

What is the minimum capital requirement for PT PMA?

The minimum capital requirement for PT PMA varies by business sector, generally starting from 2.5 billion IDR for investment-based KITAS eligibility.

Can foreigners own 100% of an Indonesian company?

Yes, foreigners can own 100% of a PT PMA in most business sectors, with some exceptions in restricted sectors that require local partnership.

What is NIB and why do I need it?

NIB (Nomor Induk Berusaha) is a Business Identification Number that serves as your company's official business license. It's mandatory for all businesses in Indonesia and is obtained through the OSS system.

What is the minimum investment for PT PMA?

Standard minimum is IDR 10 billion authorized with IDR 2.5 billion paid-up capital.

Has the Omnibus Law changed capital requirements?

Yes, some sectors have reduced requirements under the new regulations.

Does all capital need to be deposited at once?

The paid-up capital (minimum 25% of authorized) must be deposited at registration. Remaining capital can be called over time.

Company Formation

Minimum Investment for PT PMA in Indonesia

Complete guide to minimum investment and capital requirements for PT PMA foreign company registration in Indonesia including paid-up capital and sector variations.

Introduction

The Indonesian government sets minimum capital requirements for PT PMA companies to ensure genuine foreign investment. These requirements have evolved significantly with recent regulatory changes, particularly under the Omnibus Law on Job Creation.

Standard Capital Requirements

The standard minimum authorized capital for a PT PMA is IDR 10 billion (approximately USD 625,000), with a minimum paid-up capital of IDR 2.5 billion (approximately USD 156,000). However, these amounts can vary significantly based on the business sector and specific KBLI codes selected.

Authorized vs Paid-Up Capital

Authorized capital represents the maximum amount the company can issue in shares, while paid-up capital is the amount actually deposited. The paid-up capital must be at least 25% of the authorized capital and must be deposited in the company's Indonesian bank account.

Sector-Specific Variations

Different sectors have different capital requirements. Technology and consulting companies may qualify for reduced minimums under special economic zone regulations, while manufacturing, mining, and construction typically require higher capital investments due to the nature of operations.

Omnibus Law Changes

The 2020 Omnibus Law on Job Creation introduced significant changes to capital requirements, potentially lowering barriers for certain sectors and micro/small enterprises. The implementing regulations continue to evolve as the government refines its investment policies.

Capital Deposit Process

After company registration, the paid-up capital must be deposited into the company's corporate bank account. The bank will issue a deposit certificate that serves as proof of capital compliance. This certificate is required for certain licensing applications.

Investment Plan Requirements

PT PMA companies must submit an investment plan to the Ministry of Investment detailing how the capital will be utilized over the first several years of operation. This plan includes projections for assets, working capital, and operational expenses.

Ongoing Capital Compliance

Companies must maintain their capital commitments and may be required to increase capital as their operations expand. Annual financial reporting must reflect the current capital position and investment utilization.

Cost Planning for Investors

Beyond the minimum capital, investors should budget for professional service fees (USD 2,000-5,000), notary costs, office space, initial hiring costs, and at least 6-12 months of operational expenses to ensure business sustainability.

Common Misconceptions

Many investors mistakenly believe the minimum capital must be spent immediately. In reality, the capital serves as the company's financial foundation and can be deployed strategically over time for business operations, equipment, and working capital.

Frequently Asked Questions

What is the minimum investment for PT PMA?: Standard minimum is IDR 10 billion authorized with IDR 2.5 billion paid-up capital.
Has the Omnibus Law changed capital requirements?: Yes, some sectors have reduced requirements under the new regulations.
Does all capital need to be deposited at once?: The paid-up capital (minimum 25% of authorized) must be deposited at registration. Remaining capital can be called over time.