PT PMA Minimum Capital 2026: What the Drop to IDR 2.5 Billion Means for Bali Investors

Foreign investors researching PT PMA minimum capital 2026 requirements will find a genuinely different number from the one that circulated even a year ago. Since October 2025, the minimum paid-up capital for a foreign owned company in Indonesia has dropped from IDR 10 billion to IDR 2.5 billion. For entrepreneurs evaluating Bali as a base for their business, this is one of the most significant company-establishment updates in recent years.

However, a lower capital threshold does not mean every related requirement moved together. Some numbers stayed exactly where they were. This article walks through what changed, what did not, and what it means in practice before you register a PT PMA in Bali.

What Actually Changed Under the New Regulation

The PT PMA minimum capital 2026 rule traces back to Minister of Investment/BKPM Regulation No. 5 of 2025, which took effect on 2 October 2025. Under this regulation, the minimum placed and paid-up capital for a foreign-owned limited liability company was reduced to IDR 2.5 billion per legal entity.

This change sits alongside Government Regulation (PP) No. 28 of 2025 on Risk-Based Business Licensing, which continues to govern the broader OSS-RBA framework. Together, these two rules form the current legal foundation for company establishment in Indonesia going into 2026. In short, the paperwork path has not changed, but the entry cost for many mid-scale investors has.

PT PMA Minimum Capital 2026: Old vs New at a Glance

What This Means in Practice for Foreign Investors

A smaller paid-up capital requirement lowers the immediate cash barrier to opening a PT PMA. For investors planning a boutique hospitality business, a consulting practice, or a services company in Bali, this can make the first year of cash flow planning considerably more manageable.

That said, the total investment plan registered per KBLI code is still generally expected to reach IDR 10 billion, excluding land and buildings. In other words, the overall scale of commitment the government expects from a serious foreign investment has not shrunk. What changed is the portion you must place as paid-up capital versus the portion you can phase in as the business grows.

For anyone weighing a PT PMA structure this year, that distinction should shape how the investment plan is written from day one, not adjusted later once the OSS submission is already filed.

One Number That Did Not Change: The Investor KITAS Threshold

This is where many investors get the new rule half right. The Investor KITAS (E28A – General Investment) still requires the sponsoring shareholder to hold personal shares valued at a minimum of IDR 10 billion. That threshold is separate from the PT PMA minimum capital requirement and was not reduced by the 2025 regulation.

In practice, this means a company can be legally established with IDR 2.5 billion in paid-up capital, while the individual shareholder aiming for an Investor KITAS still needs shares valued at IDR 10 billion to qualify. Confusing these two numbers is one of the more common planning mistakes we see among new applicants, so it is worth checking early through our Investor KITAS (E28A) service page before finalising a share structure.

What Still Doesn’t Change

A handful of obligations remain exactly as they were before the capital reduction:

• KBLI selection. Your business classification still determines licensing steps and, in Bali specifically, whether new registration is even open (a separate and increasingly important issue, covered in our next article).
• LKPM reporting. Quarterly investment realisation reports remain mandatory regardless of how much capital was deposited.
• Tax obligations. Corporate tax treatment is unaffected by this particular regulation and depends on annual revenue and current tax rules.
• Two-shareholder structure. A PT PMA still needs at least two shareholders, one Director, and one Commissioner.

Practical Steps Before You Register in 2026

1. Confirm your KBLI eligibility first. Capital planning only matters once you know your sector is open to foreign ownership at your intended location.
2. Separate the paid-up capital figure from the total investment plan. Budget for both, not just the smaller number.
3. Decide early whether an Investor KITAS is part of the plan. If so, structure shareholding against the IDR 10 billion threshold, not the PT PMA minimum.
4. Prepare your documentation with the current regulation in mind. Older guides and templates may still reference the IDR 10 billion paid up figure.
5. Get sector-specific confirmation before you commit. Capital and licensing requirements are reviewed periodically, so a short consultation can prevent a costly restructuring later.