AEP – Portuguese Chamber of Commerce & Industry

Frequently Asked Questions

What is PT (Perseroan Terbatas)?

PT (Perseroan Terbatas) is the Indonesian term for a limited liability company.

Is it safe to register a product under a local distributor?

Yes and no. It is vital to choose a reliable distributor as they will register the product under their company and become the product license holder and the import license holder. Changing the local distributor is easier if you are satisfied with the cooperation.

If investors intend to conduct business in Indonesia, what kind of organization must they establish?

Within the scope of foreign direct investment in Indonesia, foreign investors can typically do business in two ways:

• Set up a PMA (Perusahaan Modal Asing)

PMA is a local subsidiary in the form of a limited liability corporation for foreign investment reasons

• Set up a RO (Representative Office)

According to Law No. 25/2007 on Investment, foreign investors are required to establish a PMA company in order to make direct investments and conduct commercial and business activities in Indonesia. A PMA firm in Indonesia is a legally recognized business entity that can engage in various commercial and business operations as long as it complies with the current laws and regulations. As for RO, its purposes include conducting market feasibility studies and liaison activities.

What is the difference between PT and CV?

You can find the difference below:

• PT: limited liability company (shareholders are not legally liable for company liabilities)
• CV: a proprietary company where liability falls on the shareholders