Increased Paid-up Capital Requirements for Foreign Companies

On 1 April 2021, Indonesia’s Investment Coordinating Board (Badan Koordinasi Penanaman Modal BKPM) issued BKPM Regulation 4 of 2021 regarding an increase of paid-up capital requirements that foreign investors have to pay when establishing a company in Indonesia. A foreign investment company is now required to have 10 billion rupiah in paid-up capital, up from the previous 2.5 billion rupiah. This investment value excludes any investments for land or buildings. This regulation will come into effect from 2 June 2021.

• Type:

  • Entry and establishment (Ownership and control)

• Industry:

  • Not industry specific

• Sources:

  • BKPM, PERATURAN BADAN KOORDINASI PENANAMAN MODAL REPUBLIK INDONESIA NOMOR 4 TAHUN 2021 TENTANG PEDOMAN DAN TATA CARA PELAYANAN PERIZINAN BERUSAHA BERBASIS RISIKO DAN FASILITAS PENANAMAN MODAL, https://jdih.bkpm.go.id/jdih/userfiles/batang/2021._4_Salinan_Perbkpm_Pelayanan_.pdf, 01 Apr 2021
  • Lexology, New BPKM Rules to Require PMA Companies to Have IDR 10 Billion in Paid-up Capital: Will Existing Investors Be Affected?, https://www.lexology.com/library/detail.aspx?g=bef69b2d-3404-4664-86ca-fb779807d0ec, 06 May 2021
  • ASEAN Briefing, Indonesia Increases Paid-up Capital Requirements for Foreign Companies, https://www.aseanbriefing.com/news/indonesia-increases-paid-up-capital-requirements-for-foreign-companies/, 01 Apr 2021