# Indonesia Reduces Paid-Up Capital Requirement for Foreign Investors to IDR 2.5 Billion

- Link: https://www.thailand-business-news.com/asean/249824-indonesia-reduces-paid-up-capital-requirement-for-foreign-investors-to-idr-2-5-billion
- Published: 2025-10-22T11:49:19+07:00
- Author: ASEAN Briefing

**Indonesia lowers foreign company paid-up capital requirement from $640,000 to 
$160,000, easing entry barriers and promoting foreign investment, with capital flexibility
for project development.**

### Indonesia Eases Investment Entry Barriers

Amid increasing regional competition for foreign investment in ASEAN, Indonesia 
has taken a significant step to lower one of its longstanding entry barriers. The
government has reduced the required paid-up capital for foreign-owned limited liability
companies, known as PT PMAs, from IDR 10 billion (approximately US $640,000) to 
IDR 2.5 billion (around US $160,000) through Minister of Investment Regulation No.
5 of 2025. This change aims to attract more foreign investors by making the process
less stringent.

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### A Shift Toward Greater Capital Flexibility

For over ten years, Indonesia mandated an upfront capital injection of IDR 10 billion
for foreign investors, which often discouraged mid-sized and service-sector entrants.
The new regulation allows companies to phase their capital investments over time
based on project needs, reducing initial financial burdens. This shift encourages
a more flexible and progressive approach to investment, aligning with regional trends.

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### Regional Investment Benchmarks

Compared to Indonesia’s previous and current thresholds, neighboring countries maintain
varying entry capital requirements. Vietnam generally approves foreign projects 
with starting capital around US $100,000, depending on the sector. Meanwhile, Thailand’s
minimum is about THB 3 million (US $80,000), and Malaysia’s ranges between RM 500,000
and RM 1 million (US $105,000–$210,000).

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  |  This article was first published by _[ASEAN Briefing](https://www.aseanbriefing.com) _, which is produced by [Dezan Shira & Associates](https://www.dezshira.com/). The firm assists foreign investors throughout Asia from offices [across the world](https://www.dezshira.com/office), including in in [China](https://www.dezshira.com/office/china), [Hong Kong](https://www.dezshira.com/office/hong-kong.html), [Vietnam](https://www.dezshira.com/office/vietnam), [Singapore](https://www.dezshira.com/office/singapore.html), and [India](https://www.dezshira.com/office/india) . Readers may write to [info@dezshira.com](https://www.thailand-business-news.com/asean/info@dezshira.com) for more support. |

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