How is the process of liquidating a PMA company in Indonesia, and how long does it take?

  • InCorp Editorial Team
  • 17 June 2025
  • 1 minutes reading time

The procedures for (voluntarily) liquidation typically involve the following steps:

  • Conduct a general shareholder meeting to approve the liquidation and the liquidator’s nomination
  • Notify the Ministry of Law and Human Rights as well as the creditors of the liquidation and the distribution plan for the assets by newspaper notice
  • All business licenses and tax numbers should be canceled or revoked; the tax office will conduct a tax audit to revoke the tax number
  • Make sure creditors are paid and that any liquidation funds are distributed to shareholders (if any)
  • Conduct a general meeting of shareholders to approve the liquidator’s discharge and acquittal
  • Notify the Ministry of Law and Human Rights of the liquidation’s outcome. After receiving the notification, the Ministry of Law and Human Rights will deregister the company’s status as a legal entity and remove its name from the Company Registry
  • Release the liquidation’s outcome in a newspaper

Completing the liquidation process can take around two years.

Verified by

Ales Cina

Consulting Manager at InCorp Indonesia

Aleš manages solution delivery at InCorp Indonesia, optimizing incorporation processes and client relationships. His experience in internal auditing, retail, and sales offers valuable global insights. Aleš, with a degree in Economics and Finance from the Czech Republic, helps clients navigate cross-border business challenges, focusing on cultural and legal insights.

Frequently Asked Questions

    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.

    CV (Commanditaire Vennootschap) is a proprietary business entity that houses several individuals to run a business.

    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.

    A foreigner is not allowed to form a CV in Indonesia

Get in touch with us.

Lead Form

What you’ll get

A prompt response to your inquiry

Knowledge for doing business from local experts

Ongoing support for your business

Disclaimer

The information is provided by PT. Cekindo Business International (“InCorp Indonesia/ we”) for general purpose only and we make no representations or warranties of any kind. We do not act as an authorized government or non-government provider for official documents and services, which is issued by the Government of the Republic of Indonesia or its appointed officials. We do not promote any official government document or services of the Government of the Republic of Indonesia, including but not limited to, business identifiers, health and welfare assistance programs and benefits, unclaimed tax rebate, electronic travel visa and authorization, passports in this website.