Minimum Investment Capital for a PMA & Investor KITAS (2026 Rules)
For foreign entrepreneurs and investors planning to establish a business presence in Bali, understanding the financial prerequisites is the most critical first step. The Indonesian government welcomes foreign direct investment, but it strictly enforces financial thresholds to ensure that international businesses bring tangible economic value to the country.
At Royal Visa, one of the most common hurdles our clients face is navigating the complex terminology surrounding the PMA minimum capital Indonesia requirements. This comprehensive guide breaks down exactly what the financial rules are in 2026, how paid-up capital works, and what you personally need to secure your E28A Investor KITAS.
The Core Mandate: The IDR 10 Billion Investment Rule
To incorporate a Foreign Direct Investment Company—known as a Perseroan Terbatas Penanaman Modal Asing (PT PMA)—the Indonesian Investment Coordinating Board (BKPM) mandates a strict minimum investment requirement.
In 2026, the baseline capital required to establish a PT PMA is IDR 10,000,000,000 (approximately USD 650,000, depending on daily exchange rates).
Why does this rule exist? The Indonesian government implements this rule to protect local Micro, Small, and Medium Enterprises (MSMEs). By setting a high financial threshold, the government ensures that foreign investors are injecting significant capital into the economy, creating jobs, and operating on a larger scale rather than competing with local small-scale businesses.
Note: This IDR 10 billion requirement applies per business classification code (KBLI). If your company intends to operate in two entirely different business sectors (e.g., real estate development and restaurant management), you may be required to commit IDR 10 billion for each sector.
Authorized vs. Paid-Up Capital Bali PMA
The most frequent point of confusion for new investors is the difference between “Authorized Capital” and “Paid-Up Capital.” When drafting your Deed of Establishment, the notary will outline both.
Authorized Capital (Modal Dasar): This is the total maximum value of shares the company is legally authorized to issue. For a standard PMA, this is typically set at IDR 10 billion.
Paid-Up Capital (Modal Disetor): This is the actual amount of money that shareholders have deposited into the company’s Indonesian corporate bank account.
The 2026 Reality: While historically there was some leniency regarding the timeline for injecting this capital, immigration and tax authorities are highly integrated in 2026. You must sign a legally binding statement pledging to transfer the paid-up capital into the company account shortly after incorporation. Failing to realize your investment can result in the revocation of your business license (NIB) and the cancellation of any associated visas.
The E28A Visa Threshold: Your Personal Share
Establishing the PMA is only the first step. To legally live in Bali and manage the company, you need an E28A Investor KITAS.
Even if your company has IDR 10 billion in capital, you do not automatically get an Investor KITAS. You must meet the personal shareholding threshold.
To qualify for the E28A, a foreign applicant must personally own shares in the PMA worth a minimum of IDR 1,125,000,000 (roughly USD 75,000).
What happens if your shares are below this amount? If you own less than IDR 1,125,000,000 in shares, you are still legally a shareholder, but you cannot apply for the E28A Investor KITAS. Instead, you must apply for a Working KITAS (E23) as a Director or Commissioner. This alternative route triggers additional requirements, most notably the mandatory payment of the Development Funds for Foreign Workers (DKPTKA) tax, which costs USD 1,200 per year.
For a complete overview of the E28A process from start to finish, refer back to our main guide: The Ultimate Guide to Indonesia Investor KITAS (E28A) in 2026.
Proving Your Personal Living Expenses
In addition to corporate capital, the Directorate General of Immigration requires proof that you will not become a financial burden on the state upon your arrival in Indonesia.
When submitting your application through the Molina/EVisa system, you must attach a personal bank statement. In 2026, this statement must clearly show a minimum balance equivalent to USD 2,000.
Important Tips for Financial Proof:
The bank statement must be under the applicant’s name (matching the passport).
The funds must be readily accessible liquid cash (not tied up in stocks, bonds, or real estate).
Immigration prefers to see the last 3 months of bank history to verify the legitimacy of the funds.
How Authorities Verify Funds in 2026
The era of “paper-only” companies in Bali is over. The Molina/EVisa system is smarter, and cross-departmental auditing between Immigration, the Tax Office (DJP), and BKPM is now standard practice.
When you apply for an E28A KITAS, or when you attempt to renew it after your first year, the authorities will check your Annual Investment Activity Report (LKPM). If your company has not demonstrated a clear progression toward realizing the IDR 10 billion investment, your KITAS renewal will likely be rejected.
Proper corporate structuring from day one is essential to avoid legal trouble down the road.
Need Help Structuring Your PMA Capital? Making a mistake during the initial incorporation phase can cost thousands of dollars to fix later. At Royal Visa, our legal team ensures your capital structure perfectly aligns with 2026 immigration requirements. Contact us today for a free consultation to discuss establishing your compliant PT PMA in Bali.
