LEGAL INSIGHTS

BKPM Regulation 5/2025 introduces a firm capital commitment framework for foreign direct investment (PMA) in Indonesia, mandating a minimum paid-up or subscribed capital of IDR 2.5 billion per limited liability company, alongside a general investment threshold of over IDR 10 billion per business line and project location. Reinforced by a mandatory 12-month lock-up period and self-declaration mechanism, the regulation signals the government’s intent to ensure financial credibility, sectoral clarity, and regulatory discipline in the investment licensing regime.