PT PMA Minimum Capital Drops to IDR 2.5 Billion

What actually changed, and what didn't

Before October 2025, forming a PT PMA meant depositing IDR 10 billion in paid-up capital before the company could properly get going. BKPM Regulation No. 5 of 2025 cut that to IDR 2.5 billion per KBLI code, the classification code for each business activity the company registers. For a single-activity company, such as one formed to hold and rent out a villa, that is a straightforward 75% cut in the cash you need to put in.

It is not a 75% cut in the size of investment the government expects overall. The regulation still requires a total investment plan of more than IDR 10 billion per KBLI code, excluding the value of land and buildings. Paid-up capital is now a smaller slice of a total that has not moved — the rest is expected to arrive as the business actually spends, on construction, equipment or working capital.

Why the capital doesn't have to land on day one

The older rule pushed founders to wire the full amount before the company even had a bank account to receive it — a real bottleneck in practice. Under the new rule, a self-commitment letter declaring the capital, filed through the OSS (Online Single Submission) system, is accepted at registration. The cash deposit follows once the corporate account is open, and it is then locked for 12 months from the deposit date unless it is drawn down for asset purchases, construction or genuine business operations. The flexibility is in the timing of the deposit, not in what you may eventually do with idle cash.

Why this doesn't change the Investor KITAS calculation

The capital cut is a BKPM/OSS company-formation rule. Investor KITAS eligibility is set separately, by immigration, and still requires an individual shareholder to hold at least IDR 10 billion in personal share ownership. A PT PMA can now be formed with IDR 2.5 billion in paid-up capital, but a shareholder who wants the residence permit that comes with being a substantial investor still needs to hold four times that in their own name. The two thresholds serve different purposes and were not moved together.

Does this change the case for a PT PMA to hold property

The lower cash requirement makes the company route somewhat more accessible for a genuinely income-generating property — one that will be rented out and needs to invoice and pay tax lawfully, which a PT PMA is built for. It does not change the trade-off for a property you intend to live in yourself: a PT PMA is a live company with monthly and annual filings whether or not it trades, and that overhead did not shrink because the entry capital did.

Whether an already-formed PT PMA can retroactively reduce its paid-up capital to the new IDR 2.5 billion floor, or whether the lower threshold only applies to companies formed from 2 October 2025 onward, was not directly addressed in the sources checked for this article. If you formed a PT PMA under the old rule and want to know whether any of that capital can now be treated differently, ask your company-formation adviser rather than assuming the new threshold applies retroactively.

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