company dissolution in Indonesia

Reasons to Utilize Company Dissolution Services in Indonesia

As a business owner, running your own company is always challenging. One of the biggest challenges that may arise is the possibility of dissolving a company. Unfortunately, the process of closing a company in Indonesia can be another burden if not systematically executed.

Problems that come within the company, such as administrative problems, can also lead to the dissolution of the company. Some other common reasons for company dissolution in Indonesia are:

  • An expired incorporation term
  • An expired business license (a PT PMA business license or other operational licenses). Some cases may involve a license being revoked
  • A company has been dormant or has not been actively operating for the last three years
  • A company or a business is not in compliance with Indonesia Law
  • A company is bankrupt and unable to pay creditors with its assets
closing a company in Indonesia

Company Dissolution Service in Indonesia: How to Dissolve a Company

To dissolve a company in Indonesia a business is obliged to go through a liquidation process. In other words, liquidation is the process of clearing and settling the assets and liabilities of a closing company, either active or inactive in Indonesia, without going through the litigation process.

To approve the liquidation process, a company should assign a liquidator. The liquidator of the closing company can be represented by a legal consultant, a lawyer, or one of the members of the Board of Directors (BoD) during the process of winding up a company. The appointed liquidator is responsible for announcing the dissolution in the State Gazette of Indonesia and the local newspaper agencies. Failure to do so will result in an ineffective liquidation.

The Time Frame for Company Dissolution

The process of closing a company can take between 1 to 1.5 years to complete. According to Act Number 40 of 2007 concerning Limited Liability Company, the steps to dissolve a company are as follows:

No Legal Steps Duration (Working Days)
1 Article of dissolution issued by the notary (step 1) 5
2 Newspaper publicity (1st) 3
3 Approval from Ministry of Law and Human Rights 60
4 NIB and SIUP Revocation at OSS 30
5 Taxpayer Identification Number and Tax Certificate Registration (NPWP & SKT) Revocation 180
6 VAT Enterprise(s) (SPPKP) Revocation 180
7 Article of dissolution issued by the notary (step 2) 5
8 Newspaper publicity (2nd) 3
9 Approval from Ministry of Law and Human Rights 30
10 Newspaper publicity (3rd) 3
TOTAL PERIOD (Results may be varied) 1-1.5 years

Cekindo as Closing Company Service Provider in Indonesia


Cekindo can act as a liquidator in Indonesia and assist in conducting all the steps of the process for the closing company.


Cekindo is a leading one-stop consultancy provider and will handle the whole termination process of your company’s legal status in Indonesia.


The duration of closing a company in Indonesia depends on many external conditions, but Cekindo ensures that no major delays will occur. We guarantee the fastest dissolution process thanks to our vast experience in the Indonesian market and a vast network.

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In Indonesia, business owners can dissolve a company voluntarily or non-voluntarily.

Voluntary company dissolution occurs when business owners choose to do so for reasons such as low cash flow to exessive company liabilities caused by the mismanagement of business operations.

Non-voluntary company dissolution, on the other hand, occurs based on the following conditions; (1) the court desicion to liquidate the company in order to settle bankcruptcy costs; (2) the company's business license have been revoked; (3) it was decided during a general shareholders meeting; and other reasons listed in Article 142 of Indonesian Company Law.