Minister of Investment / BKPM Regulation No. 5 of 2025 on the Procedures for Granting Risk-Based Business Licensing
Peraturan Menteri Investasi/Kepala Badan Koordinasi Penanaman Modal Nomor 5 Tahun 2025 tentang Tata Cara Pemberian Perizinan Berusaha Berbasis Risiko
What this regulation does
Plain-English summary of the regulation's substance and how it affects PT PMA operations.
BKPM Regulation 5/2025 sets the current minimum-capital framework for PT PMA (foreign-owned) entities in Indonesia. Two distinct figures govern: (1) IDR 2.5 billion paid-up capital that must be deposited at incorporation, formally codified at the lower number after years of de-facto enforcement under the prior IDR 10b headline, and (2) IDR 10 billion total investment commitment per 5-digit KBLI on the NIB, realised over time via quarterly LKPM reporting. The regulation introduces a 12-month lock-up on paid-up capital (withdrawals only for assets, construction, payroll), permits supporting business activities to generate revenue when listed in the akta and meeting the IDR 10b minimum, calculates the F&B IDR 10b commitment per city/regency rather than per outlet, and codifies the subsidiary-cascade rule under which any PT with a foreign direct/indirect parent automatically takes PMA status. Replaces BKPM Reg. 4/2021. Pre-existing PMAs are grandfathered for original-akta numbers; new KBLI registrations or NIB amendments after 2 October 2025 apply 5/2025 rules in full.
Key provisions
The articles and operational points most commonly referenced in practice.
- 01
Paid-up capital
IDR 2.5 billion (approx. USD 160K) deposited at incorporation. 12-month lock-up; withdrawals only for asset purchases, construction, or payroll.
- 02
Total investment commitment
IDR 10 billion+ per 5-digit KBLI on the NIB. Realised over time through machinery, working capital, salaries, real estate. Reported quarterly via LKPM.
- 03
F&B per city/regency
For F&B operators: IDR 10b commitment is calculated per city/regency, not per outlet. Multiple outlets within Jakarta count toward one IDR 10b; opening in a new city triggers a separate commitment.
- 04
Supporting activities
Supporting business activities (kegiatan penunjang) may now generate revenue when listed in the Articles of Association and the underlying KBLI meets the investment minimum.
- 05
Subsidiary cascade
Any PT with a direct or indirect foreign parent automatically takes PMA status — including locally-incorporated PTs acquired by a foreign holding.
KBLIs affected
Indonesian business classifications explicitly referenced or governed by this regulation.
5 KBLIs referenced by BKPM Reg. 5/2025
Click a code to see the full KBLI profile — risk, foreign-ownership, licensing, and setup cost.
- 21022sector capital floor
Pharmaceutical CPOB: investment commitment elevated
- 52291sector capital floor
Freight forwarder JPT: IDR 25b paid-up under Permenhub PM 49/2017
- 64190sector capital floor
OJK banking floor: IDR 3 trillion paid-up
- 64999sector capital floor
OJK fintech P2P floor: IDR 25 billion paid-up
- 86103sector capital floor
Private hospital: Kemenkes additional floor + foreign cap 67%
Official text
For compliance and dispute work, cite the original Indonesian text directly.
Peraturan Menteri Investasi/Kepala Badan Koordinasi Penanaman Modal Nomor 5 Tahun 2025 tentang Tata Cara Pemberian Perizinan Berusaha Berbasis Risiko
tentang Tata Cara Pemberian Perizinan Berusaha Berbasis Risiko
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