Foreign investors can register an Indonesian foreign-owned limited liability company (PT PMA) before transferring the minimum paid-up capital into its bank account. Indonesia does not set a general deadline after incorporation for making this transfer, but the capital requirement is tied to the company’s business licensing through the Online Single Submission (OSS) system.
Once the capital is deposited, restrictions apply for 12 months, although the company can still use the funds for permitted business expenses.
How Much Capital Does a PT PMA Need?
A PT PMA generally requires at least IDR 2.5 billion in issued and paid-up capital per company. Paid-up capital is separate from the PT PMA’s investment value, which is generally more than IDR 10 billion, with the calculation depending on the business activity and project.
Planning your PT PMA funding? Contact MAP Resources Indonesia at info@mapresourcesindonesia.com
The IDR 2.5 billion paid-up capital requirement applies per PT PMA, not separately to every KBLI registered by the company. The investment-value requirement works differently and can depend on the business activity and project. Foreign investors registering several business classifications (KBLI) should calculate their investment value separately from the company’s minimum paid-up capital.
Foreign investors should assess both requirements when determining the capital structure of an Indonesian PT PMA.
Is There a Deadline to Inject the Capital After Incorporation?
Indonesia does not set a general number of days after incorporation within which the minimum IDR 2.5 billion must be transferred into the PT PMA’s bank account.
The 12-month period is not a deadline for injecting the capital. It starts from the date the capital is deposited. During that period, the capital generally cannot be transferred out of the company’s account except for the purchase of assets, construction of buildings, or company operations.
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When applying for Business Licensing through OSS, the company provides a self-declaration covering this 12-month restriction. Breaching that declaration can result in administrative sanctions.
Investors can incorporate the company before transferring the funds, but should plan the capital injection alongside bank account opening and the company’s OSS licensing.
Can the Capital Be Used After It Is Deposited?
The 12-month rule does not require the IDR 2.5 billion to sit untouched in the company’s bank account.
The company can use the funds to purchase assets, construct buildings, or pay for its operations. The restriction prevents the capital from simply being transferred out of the company during the 12-month period.
Can Paid-Up Capital Be Replaced by a Shareholder Loan?
A shareholder loan cannot replace the PT PMA’s minimum paid-up capital. A shareholder loan is money the company owes back to the shareholder, while paid-up capital is equity invested in the company.
Payments made by a shareholder on the company’s behalf also do not automatically become paid-up capital.
Where an overseas shareholder provides both equity and debt funding, the transfers should be documented separately. This is particularly relevant when using offshore funds for capital injection.
Plan Your PT PMA Capital Injection with MAP Resources Indonesia
MAP Resources Indonesia helps foreign investors determine when to inject PT PMA capital and how the funding should be structured. Contact us at info@mapresourcesindonesia.com to discuss your Indonesian company.
