What is an PT?
A Perseroan Terbatas (PT) or limited liability company is a legal entity in Indonesia. The PT is the most commonly applied form of business vehicle due to its limited liability nature and capitalization regime. A PT may take the form of a publicly listed company or a privately owned company. There are significant differences between a Local PT and a Foreign-owned PT.
A PT is a company founded by a minimum of two Indonesian people as responsible shareholders, limited from the debt of the company.
Benefits of a Local PT
- Limited liability; shareholders are liable only for the amount of their original investment if the company goes into debt or insolvency.
- Easy to obtain additional funds/capital, such as by issuing new shares.
- The viability of the company is more secure
- Leadership control; replacement possibility via a general meeting of shareholders
- Company management has a clear responsibility to the owner or shareholders
- Set out clearly by law and other regulations, a limited liability company binds and protects the company’s activity
- The company registration request is specifically based on company size:
- small business: Rp. 600 million
- medium business: Rp. 600 million – 10 billion
- large business: more than Rp. 10 billion.
- The company can have three main business activities.
- Usually no limitations apply, and can be used in government tenders.
Foreign-owned PT (PT PMA)
|Type of Company||Minimum Capital||Shareholder||Main Characteristics|
|Local PT||Depends on Business Licence (SIUP) Categories||100% local share||
|PT PMA||Minimum investment plan US$1 million
Minimum paid in capital US$250,000
|Based on negative investment list||
Erwin Wicaksono obtained his Bachelor of Laws degree from Diponegoro University, Semarang. For over 11 years he worked as a legal professional for large firms in Jakarta. He is a licensed advocate and member of the Indonesian Advocates Association (PERADI). Since 2015 Erwin is a Senior Lawyer at Firmansyah & Co. Law Office in Jakarta, bringing in his extensive experience in a multinational environment. His fields of expertise include Legal Drafting, Contract Drafting, Private Law, Man Power Law, Corporate Law, Environment Law, Land Law, Mining Law, Forestry Law, Union and society negotiation, Government liaison, Social dispute resolution, and Litigation.Read More From Erwin Wicaksono