Foreign owned companies, called PT PMAs, are required to have a minimum capital of at least Rp. 10 billion (~$US750,000 with current exchange rates). This is Indonesia’s government way to protect local small businesses from foreign competition and limit the foreign investments only to large scale companies.
In the past the enforcement of the law used to be weak and therefore thousands of companies, especially in service sectors, were set up with capital only showed on paper. In 2015 Investment Coordinating Board (BKPM) has decided to tackle the issue and effectively ending the practice of setting up foreign companies with less capital.
The following article is about how the capital needs to be invested and reported.