New Regulation On Minimum Capital Requirements For Transportation Business

Through Regulation Number PM.45 of 2015, the Minister of Transportation of the Republic of Indonesia ("MOT") has decided to determine the minimum capital requirements for companies in the transportation sector, which came into effect on 24 February 2015.

The MOT adjusted the minimum capital requirements to ensure that transportation companies stand on a strong capital base to support the threshold scale of operations in providing effective public services.

Below is the table of minimum capital requirements for transportation companies:

Transportation companies that have already obtained their transportation business licenses are obliged to adjust their capital within three (3) years upon the enactment of this regulation. Any violation to the above capital requirements may impose administrative sanctions such as a written warning, suspension and revocation of licenses.