Paid-up capital contributed to an Indonesian PT PMA generally cannot be transferred out of the company’s bank account for at least 12 months from the date it is placed or paid in, except for permitted uses. The company can use the money during this period to purchase assets, construct buildings, or fund its operations.
What Is the 12-Month Restriction on PT PMA Capital?
Under Ministry of Investment and Downstreaming/BKPM Regulation No. 5 of 2025, a PT PMA’s paid-up capital is subject to a minimum 12-month restriction from the date it is placed or paid into the company.
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The same regulatory framework reduced the general minimum issued and paid-up capital requirement for a PT PMA to IDR 2.5 billion (USD 152,000), unless a higher amount applies under sector-specific rules.
The restriction means a foreign shareholder cannot deposit the required capital into the PT PMA and then simply transfer the money back after satisfying the capital requirement.
The PT PMA must also provide a self-declaration through the Online Single Submission (OSS) system concerning compliance with the capital requirement.
The 12-month period should be considered when deciding when the shareholder will inject the capital and how the company intends to use the funds.
Can a PT PMA Use Its Paid-Up Capital During the 12 Months?
The capital does not have to remain unused in the company’s bank account.
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The PT PMA can use it to purchase assets, construct buildings, or fund company operations. This allows the company to deploy the capital into the business during the 12-month period.
The key distinction is between using the capital within the PT PMA and transferring it back out of the company.
A foreign investor should not assume that the required capital can be deposited temporarily and returned once the PT PMA has obtained its business licenses.
What Happens if the Capital Requirement Is Breached?
Failure to comply with the self-declared capital commitment can result in administrative sanctions under the investment licensing framework.
This becomes relevant where a shareholder expects to transfer or restructure the funding during the company’s first year. The intended use of the capital should be considered before the funds are injected.
Can the Capital Be Withdrawn After 12 Months?
The end of the 12-month period does not automatically give the shareholder the right to withdraw the original capital.
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Paid-up capital is equity contributed to the PT PMA. Once contributed, it forms part of the company’s capital rather than remaining money that the shareholder can freely withdraw.
Money can subsequently be transferred to shareholders through legally appropriate routes. Profits may be distributed as dividends where the requirements for a dividend distribution have been satisfied. A company may also undertake a formal capital reduction, subject to the applicable corporate procedures.
These transactions are different from simply withdrawing money from the company’s bank account and can have separate corporate, accounting, and tax consequences.
Plan Your PT PMA Capital With MAP Resources Indonesia
MAP Resources Indonesia can support your PT PMA from establishment through ongoing compliance. Contact us at info@mapresourcesindonesia.com.
