How much is the minimum fund required to establish a PT PMA business in Indonesia?

Frequently Asked Questions

Is there limited responsibility for shareholders in a PMA company?

In a PMA Company in Indonesia, shareholders typically have limited liability, meaning they’re not personally liable for agreements or losses beyond their shareholding, except in certain circumstances. Liability may extend if the company isn’t properly established or if shareholders exploit the company in bad faith, engage in unlawful acts, or deplete company assets to the detriment of creditors.

What are the shareholder rights in a PMA company?

Shareholders of a PMA Company in Indonesia have various rights, including voting rights in general meetings, entitlement to dividends and liquidation proceeds, and access to information.
They must approve significant matters through general meetings of shareholders with specified quorums, such as:

• Amending articles of association
• Changing share capital
• Appointing or dismissing directors and commissioners
• Approving major transactions, dividends, and financial statements
• Company reorganization
What are the functions and responsibilities of a PMA company’s board and management?

Indonesian Company Law establishes a two-tier governance system with Directors managing day-to-day operations and representing the company, while the Board of Commissioners supervises and advises them. The articles of association may empower board of Commissioners to provide consent or assistance to Directors for specific legal acts.

Does a PMA company in Indonesia have to meet certain criteria before it can distribute dividends?

Dividends can be distributed from company net profits after allocating reserves, depending on a positive profit balance. Approval from the general meeting of shareholders is necessary. Interim dividends may be distributed if specific requirements are met.