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Using paid up capital in the first year

Can we use the IDR 2.5 billion capital right away to pay rent and salaries?

The situation

Paid up capital should stay in the bank for 12 months except for uses allowed by the rule, such as buying assets, building and running the company.

The law

  • Ministry of Investment and Downstreaming/BKPM Regulation 5/2025: PT PMA: investment above IDR 10 billion per 5 digit KBLI per location excluding land and buildings; issued and paid up capital of at least IDR 2.5 billion

What it means for you

Operating costs like rent and salaries are generally treated as company operations, but keep records that show each use. Do not transfer the capital back to shareholders or to unrelated accounts. A declaration is submitted through OSS.

What to do

  1. Deposit capital and keep the statement.
  2. Use it only for assets, construction or operations.
  3. Keep invoices for each payment.
  4. Submit the OSS declaration.

Moving capital out to shareholders can be treated as a breach.

We can do this for youSetting up a foreign owned company (PT PMA): investment list, capital, deed, NIB and post set up: IDR 22.000.000

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