The establishment of a Limited Liability Company (PT) is the most common type of business entity used by Indonesian citizens or foreigners to conduct business in Indonesia. A Limited Liability Company is a separate legal entity from its directors and shareholders, ensuring that their personal assets are protected. Limited Liability Companies in Indonesia can be categorized into two types depending on ownership:
Perseroan Terbatas (PT)
PT is a Limited Liability Company fully owned by Indonesians. This company faces no restrictions on business activities compared to Foreign-owned Limited Liability Companies. Generally, the required paid-up capital is lower compared to PT PMA.
1. Small PT Paid-up Capital (Rp. 50,000,000.00 – Rp. 500,000,000.00)
2. Medium PT Paid-up Capital (Rp. 500,000,000.00 – Rp. 10,000,000,000.00)
3. Large PT Paid-up Capital (above Rp. 10,000,000,001.00)
Perseroan Terbatas Penanaman Modal Asing (PT PMA)
PT PMA is a popular choice for foreign investors exploring investment opportunities in Indonesia.
PT PMA is a limited liability company in which some of its shares are owned by foreign entities or individuals, allowing foreign investors to engage in commercial activities in Indonesia. PT PMA can be 100% foreign-owned or partially foreign-owned, but there are various sectors in Indonesia that are either fully or partially closed to foreign investment. To determine the list of sectors open to foreign investment, it can be found in the Negative Investment List. If a sector is partially closed to foreign investment, the list will indicate the maximum percentage of foreign ownership allowed. This means that a business partner with Indonesian citizenship is required to operate in certain sectors. We will assist you in establishing your business entity in Indonesia.
When a decision does not meet expectations, there is a lack of commitment, or agreed-upon terms are not fulfilled, a more intensive legal effort is required—this is where litigation, or taking the matter to court, becomes necessary."
When a decision does not meet expectations, there is a lack of commitment, or agreed-upon terms are not fulfilled, a more intensive legal effort is required—this is where litigation, or taking the matter to court, becomes necessary."