Indonesia

Indonesia

Indonesia amended minimum capital requirement for SMEs

21 Mar 2016

On 21 March 2016, Indonesia’s President signed into effect a regulation (Government Regulation No. 7 of 2016 regarding Changes to Authorized Capital of Limited Liability Companies), changing the requirements for starting a business in the country. According to the new regulation, the basic minimum authorized capital (RP 50 million) remained unchanged in line with the current Company law. However, in case of a micro, small, and medium enterprises (“MSME”), a smaller amount of authorized capital can be determined based on the agreement among its founders which then shall be stated in the deed of establishment of the company.

Nature of measure:
  • Liberalization
Type:
  • Entry and establishment (Other)
Industry:
  • Not industry specific
Inward FDI:
No
Outward FDI:
No
Sources: