Legal entity types in Indonesia
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Legal entity types relevant for foreign investors in Indonesia
Key facts about doing business in Indonesia
|273.8 million1 (4th in the world)
|1.186 trillion USD2 (16th in the world)
|Ease of doing business ranking
|Minimum time to incorporate a company
|Main economic hub
|Indonesian Rupiah (IDR)
|Main languages spoken
|79th, low proficiency5
Annual GDP growth
General overview of the corporate law in Indonesia
Indonesia’s legal system is based on civil law. Foreign investments are typically channeled through a limited liability company (PT), with a specific category for foreign investments (PMA), or through Representative Offices (ROs) which cannot earn revenue.
General Meeting of Shareholders
The highest decision-making body of a company. Meets at least once a year and consists of shareholders whose voting rights are proportional to their shares.
Board of Commissioners
Commissioners represent shareholders in overseeing the work of the company directors. A company must have at least one commissioner who often is also a shareholder.
Board of Directors
Directors are in charge of the day-to-day management of the company. A company must have at least one director who can be a shareholder but cannot be a commissioner. At least one of the directors needs to be an Indonesian resident.
The only legal entity type in Indonesia that allows foreign shareholders is a PT PMA.
Other (local) legal entity types
The following are other legal entity types that accept only local shareholders. Note that PT and PT PMA are the same legal entity type, the difference is just whether a company has only local or also (some) foreign shareholders.