The regulation
The document is Regulation of the Minister of Investment and Downstreaming/Head of BKPM No. 5 of 2025. BKPM is Indonesia's investment coordinating board. The rule governs risk-based business licensing through OSS, the national online permit system.
It replaces three earlier BKPM regulations from 2021 and covers 13 areas, from licensing requirements to supervision and sanctions.
The key number for foreigners
DDTCNews reports that the minimum capital for a PT PMA (a company with foreign shareholders) is now Rp 2.5 billion. The previous requirement was Rp 10 billion.
That lowers the entry bar for foreigners who want to run a legal business in Indonesia through their own company, including in accommodation.
Other changes
Applications for fiscal incentives such as tax holidays and tax allowances can now be filed through OSS. The regulation applies to eight groups, including ministries, provinces, regencies, special economic zones and businesses.
Its stated aim is legal certainty in the licensing process.
The Bali context
The lower threshold came as Bali was sharply criticising OSS. In October 2025, Governor Wayan Koster said the system allows hotels and villas to be built without control, with foreigners entering business on capital of around Rp 10 billion. The ministry responded with a joint licence checking desk with the province.
On top of that, from 2026 OTAs require an NIB and KBLI for every listing. A PT PMA renting out a villa therefore needs a licence specifically for accommodation activity.