How do investors choose a holding jurisdiction for a PMA firm in Indonesia?

Frequently Asked Questions

Is having audited accounts mandatory?

Audited financial statements are required for:

• Entities gathering funds from the public (e.g., banks, insurance companies)
• Entities issuing debt instruments
• Publicly listed companies
• State-owned enterprises
• Companies with assets and/or turnover exceeding IDR 50 billion
• Entities mandated by legislation
What duties do investors have when they own shares in a company that has been liquidated?

Shareholders must appoint a liquidator during the shareholders’ meeting approving liquidation. If no liquidator is appointed, the Board of Directors assumes the role. Creditors can submit claims within two years of the liquidation announcement, provided there are proceeds available. If proceeds have been distributed, shareholders must return them proportionally to settle creditor claims. Whereas employee termination packages vary based on employee status, service years, and reason for liquidation.

What is the Indonesian employment status in PMA company?

In Indonesia, employment arrangements are categorized into temporary employment agreements (PKWT) and permanent employment agreements (PKWTT). Temporary contracts are for short-term, seasonal, or experimental work, while permanent contracts are for continuous employment.

What is the minimum shareholder requirement to incorporate a PT?

The minimum number of shareholders to incorporate a PT is two