Indonesia

Indonesia

Increased Paid-up Capital Requirements for Foreign Companies

02 Jun 2021

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.

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