Home Blog Doing Business in Indonesia: What are The Signs Your Business is Failing? Business Setup | Company Dissolution Doing Business in Indonesia: What are The Signs Your Business is Failing? InCorp Editorial Team 9 January 2024 4 minutes reading time Table of Contents Doing Business in Indonesia: Signs of A Failing Business How Cekindo can Help with Company Dissolution Doing business in Indonesia, especially when you are about to start, has been made easy because of the governmental reform. We have also seen a lot of success business examples. However, the fact is that not every business will be successful in Indonesia. Although no one wants failure for their businesses, entrepreneurs should always be alert of the warning signs that tell your business might be failing. Being able to notice the telltale signs will spare you from further substantial losses. Here are the signs indicating that your business might be in serious trouble and how you can avoid it when doing business in Indonesia. Doing Business in Indonesia: Signs of A Failing Business Unable to Pay Bills on Time, or at All Unless you have bad organisational skills or a bad memory and forget to pay your bills once in a while, frequent missed payments means that you are in a serious mess. Being able to pay your bills is one of the top priorities of being a successful business as it reflects your financial stability, trustworthiness and reputation. This is a critical issue and as a business owner yourself, you need to attend to it as soon as possible. Ignoring it can lead to more severe cases that might involve legal actions from creditors. What is more, it is also time for you to look deep into your ability to continue running the business. Sales and Revenues Are Low This is a really big sign. One of the most important reasons entrepreneurs run a business is to generate sales and profits. You are heading towards failure if your sales and revenues are repeatedly low for several months. Even worse, if your sales or revenues keep decreasing further in the following months, your business is considered done. So if you are in this situation, it is time for you as a business owner to figure out what actually goes wrong. Have you targeted the wrong audience? Have your sales team missed the selling points of your services or products? Or perhaps you don’t put enough effort in your marketing? The list goes on. Whatever the reason may be, you must act now to prevent further downfall. Your Business Is Unheard by the Public If no one has talked about your business, visited your website, or even leave a comment on your social media platforms, chances are, the public might not even know your existence. You are in a more serious slump if your friends and family do not even know what your business is all about. One of the most obvious evidence your business is actually growing is the presence of online review. You should be able to see increasing reviews about your business if your business is evolving. Otherwise, it means that no one has used your services or products before. Furthermore, with no review to be found anywhere, potential customers will be suspicious of your business legitimacy. Not Having a Competitive Edge In this extremely competitive market in Indonesia, you need to have something unique to stand out from the crowd. If your business solves the same problems with the same branding like any other businesses of the same industries, guess what, you’re just waiting for the doomsday. Therefore, think about this: what can your company do differently for your customers, in terms of product offerings, benefits, product or service innovation, and branding? Can you solve a problem that your competitors cannot? Doing business also means never stop learning from the successful business so you can decrease the risk of possible failure, get more insight through the following article Learn from TOP 10 Indonesian Companies in 2018 How Cekindo can Help with Company Dissolution If, unfortunately, you need to wind down your business due to financial reasons, or simply because you’ve had enough of the business, Cekindo can help with the process of company dissolution for both PT and PT PMA. Our team consists of professional consultants and experienced legal specialists who can help you manage the entire liquidation process efficiently without any future legal obligations. Contact us for a personalised plan now by filling in the form below. Or, visit our offices in Jakarta, Bali and Semarang. Read Full Bio 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 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 is the minimum shareholder requirement to incorporate a PT? The minimum number of shareholders to incorporate a PT is two How is the process of liquidating a PMA company in Indonesia, and how long does it take? 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. 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 Get in touch with us. Lead Form Notify Full NameEmailPlease provide corporate email where possiblePhone NumberOffice SetupWhich city are you planning to expand into?JakartaSemarang/Central JavaBali/LombokBatam/SumateraSurabaya/East JavaOther ProvincesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Package (20% OFF)[SPECIAL PACKAGE] Product Registration + License Holder (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration + Office Service (20% OFF)[SPECIAL PACKAGE] Comprehensive Industrial Package (15% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (25% OFF) + Office Space (Private Office 30% OFF)[SPECIAL PACKAGE] Company Registration + Investor KITAS (25% OFF)[SPECIAL PACKAGE] Accounting + Tax Services+ Annual Fintax Report (20% OFF)[SPECIAL PACKAGE] Payroll Services for Executive Role (20% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -[SPECIAL PACKAGE] Company Registration (20% OFF) + Office Service (25% OFF)[SPECIAL PACKAGE] Company Registration + Micro Finance Services (25% OFF)[SPECIAL PACKAGE] Property Assistance: Due Diligence + AJB Purchase/Lease Agreement (25% OFF)Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesType of Service- Please Select -Business SetupAccounting and TaxHR & Payroll servicesImmigration ServicesProduct Registration and ImportCompliance and Secretarial ServicesBusiness AdvisoryMore ServicesServices Company Registration Renting Virtual and Serviced Office Business and Import Licenses Corporate Recovery and Insolvency Closing of Company (Dissolution) Land and Property Ownership Shelf Company Local NomineeServices Accounting and Tax Reporting Audit and Review Transfer Pricing Compliance Tax RefundHuman Resource Sub Services Payroll Outsourcing Employer of Record Recruitment and HR Establishment Employment ServiceServices Business Visa Work Permit and KITAS Dependent Visa (Spouse and Family) OtherBusiness Visa Subservices Business Visa Visit Visa Visa ExtensionServices Medical Device Beauty (Skincare and Cosmetic) Food and Beverage Health Supplement Household Product Halal Certification TrademarkServices Legal Consultation Legal Agreement Service Due Diligence and Background Check Company Documents RevisionBusiness Advisory Business Advisory Services ESG Reporting & Advisory Internal Audit Risk ManagementMore Services Market Research and Analysis Local Distributor and Partner Bank AccountMessageSubmit 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. More on Business Setup Permanent Business License and Permit: What You Need to Know About It Read more How can A Representative Office in Semarang be Beneficial for Your Business? Read more [2020 Updated] How to Get a Business License in Indonesia Read more