Implementation of Minimum Paid-In Capital Regulations in Foreign Investment Limited Companies in Badung Regency

Foreign investment in Indonesia is required to be in the form of PT PMA. Setting the minimum paid-in capital for PT PMA to be at least IDR 10,000,000,000.00 has positive and negative impacts. This research is empirical legal research that uses legal entity theory, legal effectiveness, legal protection, and legal certainty using conceptual, statutory, legal sociology, and case approaches. In conclusion, the realization of foreign investment in Badung Regency shows an increase from 2021 to 2024. However, even though there is an increase, there are still many PT PMA that violate these provisions. Factors influencing non-compliance include law enforcement resources, community compliance, and a clear and fair legal system. Several government agencies and notaries play an important role in monitoring and enforcing regulations. Community compliance, especially in the tourism and hospitality sectors, as well as acceptance of fair laws, contributes to the effective implementation of these provisions. Violation of the minimum PT PMA paid-in capital provisions can hamper LKPM reporting. Business actors who do not submit LKPM for two consecutive periods may be subject to light sanctions up to the revocation of business permits.