BKPM recently issued BKPM Regulation No. 5 of 2025, revoking and consolidating three predecessor regulations—namely BKPM Regulations No. 3, 4, and 5 of 2021.
One of the regulatory changes is reduction in the required minimum paid-up capital requirement for foreign investment companies (PT PMA) from IDR 10 billion (approximately USD 600,000) to IDR 2.5 billion (approximately USD 150,000). This is to respond feedback from public, including, W&P’s specific comments and recommendations shared to the Government during the Focus Group Discussion (FGD) with the State Secretariat (Kementerian Sekretariat Negara) in several occasions in 2025. We are grateful that the government has taken W&P’s suggestion into consideration, acknowledging them as constructive input to further enhance the attractiveness of the Indonesian market for foreign investors.
In various recent public meetings, BKPM explained that this regulation shows the government’s continued commitment to improve ease of doing business for businesses, particularly in providing legal certainty to investors.
Whilst the new regulation represents a positive step toward improvement for investors to obtain business licenses, investors will also need to anticipate an increase of scrutiny on implementation. Businesses are encouraged to observe the updated requirements to ensure alignment with the new regulation.
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