BKPM Regulation No. 5 of 2025: Update on Foreign Investment Requirements in Indonesia

BKPM Regulation No. 5 of 2025, enacted on 2 October 2025, revokes and consolidates BKPM Regulations No. 3/2021, No. 4/2021, and No. 5/2021 into a single framework governing risk-based business licensing through the Online Single Submission (OSS) system. The regulation expands the scope of regulated sectors to include trade and legal metrology, post, telecommunications and broadcasting, creative economy, geospatial information, cooperatives, investment, electronic systems and transactions, and environmental affairs. It also lowers the minimum paid-up capital requirement for PT PMA from IDR10 billion to IDR2.5 billion, subject to higher sector-specific thresholds where applicable, and introduces a mandatory 12-month lock-up period for the paid-up capital, except where it is used for asset acquisition, construction, or operational purposes.

BKPM Regulation No. 5 of 2025 further strengthens regulatory compliance by shortening the OSS inactivity period that triggers an evaluation from six consecutive months to 90 consecutive calendar days, introducing a minimum investment value of more than IDR10 billion (excluding land and buildings) for public EV charging stations on a per-province basis, and consolidating the administrative sanctions regime into a single chapter. The available sanctions now include written warnings, temporary suspension of business activities, administrative fines, coercive measures, and revocation of licences, certificates, approvals, or business licences. Overall, the regulation seeks to facilitate foreign investment while promoting legal certainty, investor discipline, and compliance with Indonesian investment regulations.