Perseroan Terbatas (PT): A Guide to Indonesia’s Limited Liability Company

Perseroan Terbatas

A Quick Overview of Perseroan Terbatas: The legal entity type known as Perseroan Terbatas (PT) that is used in Indonesia is comparable to a limited liability company (LLC) in many other nations. It is one of the most popular business forms employed in Indonesia by both domestic and foreign business owners due to its advantageous liability protections and ease of management.

What is “PT” in Indonesia?

In fact, “PT” stands for “Perseroan Terbatas,” which is Indonesian for “Limited Liability Company” and is commonly referred to as such. Although using “PT” as a prefix in the official names of a lot of Indonesian firms is usual, it is not a requirement for every business.

The term “PT” does offer some legal distinctions and positive aspects because it is often used in connection with official, legitimate business organizations. A firm must abide by the regulatory and legal regulations governing such companies when it is registered as a PT in Indonesia.

This designation means that the company’s shareholders have limited accountability for the company’s debts and obligations. However, not all business entities in Indonesia must use “PT” in their names; there are many different types of them.

There are also additional business configurations, such as the partnership CV (Commanditaire Vennootschap) and the sole proprietorship UD (Usaha Dagang). There is no “PT” in the names of these corporate entities.

Here is a description and features of PT, and its different types are discussed as follows:

Specifications of “Perseroan Terbatas

Limited Liability

Limited Liability: A PT’s limited liability is one of its main characteristics. As a result, the shareholders’ personal assets are safeguarded, and their responsibility tends to be restricted to the amount of money that they invested in the business.

Distinct Legal Entity

A PT is thought of as a separate legal entity from its owners. This entails that the business can act legally, enter into commitments, maintain property, and participate in various other operations.

Minimal Capital needs

Indonesian law demands PTs have a specified amount of sanctioned capital, which varies based on the geographical region and type of business. The minimum capital requirement, however, has been eliminated for some businesses of various types as a result of recent regulatory modifications.

Local and Foreign Ownership

Both domestic and foreign investors may own PTs. The Indonesian government publishes the Negative Investment List (Daftar Negatif Investasi), which lists restrictions on the amount that foreign ownership can invest, particularly in particular industries.

Professional Image

The “PT” classification in the company name might give off a respectable and professional vibe, which is beneficial for luring in clients and business partners.

Accessibility to Government Contracts

PTs could have simpler access to government contracts and tenders, which can be profitable prospects for some businesses.

Conformity with Regional Regulations

PTs must abide by Indonesia’s regulatory structure, which can give stakeholders, such as clients and partners, a certain amount of assurance.

Tax Benefits

Depending on the nature of the firm and its operations, PTs may qualify for specific tax benefits and deductions. Indonesia has unique tax laws that can help PTs in a variety of industries.

Types of PT “Perseroan Terbatas”

The type of PT that is selected in Indonesia will be contingent on the nature of the firm and its particular regulatory requirements. Here are a few typical examples:

PT Perseroan Terbatas (Persero) This is a limited liability business owned by the state. It is frequently active in critical industries, including infrastructure, energy, and telecommunications, and is either fully or partially owned by the government.

PT Perseroan Terbatas Terbuka (TBK) Although this PT is publicly traded, stock exchange users may trade its shares. TBT firms are required to comply with stricter disclosure and reporting standards.

PT Perseroan Terbatas Penanaman Model Asing (PTPMA) It is appropriate for foreign investors seeking to make a name for their businesses in Indonesia. For legitimate operation in certain industry segments, foreign investors must set up a PT PMA.

PT Perseroan Anak (PTA) and Perseroan Terbatas Induk (PTI) In a group of businesses, they are the separate parent and subordinate business organizations.

PT Perseroan Terbatas Terbatas Terbatas This is a streamlined version of PT intended to serve startups and small- to medium-sized businesses (SMEs). It has been created to encourage entrepreneurship and business growth and has fewer restrictions from regulators.

PT Perseroan Terbatas Investasai This kind of PT is intended for investment reasons only; operational activities are not permitted. Investment management and holding are its key objectives.

How do I establish a PT company in Indonesia?

Do you intend to establish a company in Indonesia? Then, you’ll be interested in learning how to start a PT firm in Indonesia. You might be wondering what a PT firm is. The initials PT stand for Perseroan Terbatas, a limited liability business whose capital has been divided into shares and whose stockholders hold themselves accountable according to the number of shares they own.

Perseroan Terbatas

If you want to start a PT firm in Indonesia, there are a number of key things you need to get ready. The structure of the Limited Liability Company’s Articles of Association must be established as the primary data first. Additionally, you must submit the deed of establishment to the notary, which must contain the following information:

Important Steps of Preparation Required to Set up a PT Company

  • Company name (prepare at least three name options).
  • Complete data on the founders of the company Amount of authorized capital Place and position of the company Purpose and objectives of the company.
  • Data of the Board of Directors and the CommissionersShareholder data and the amount of issued and paid-up capital.
  • The identity cards of the business’s founders; the tax ID numbers of the board of directors and commissioners.
  • If the establishment of the company is to be authorized, then it should have a power of attorney.

A local PT company’s size specification

After learning what a PT company is, you should be aware that you will need some cash as your startup capital in order to form a PT company in Indonesia. The sum varies but typically ranges from IDR 50 million to IDR 10 million or more.

PT companies in Indonesia are divided into three sizes based on this capital: Small: greater than IDR50 million to IDR500 million Medium: greater than IDR500 million to IDR10 billion Large: greater than IDR10 billion.


To choose the best type of PT for your unique business goals and to ensure compliance with all applicable requirements, you must consult with legal and business experts in Indonesia. To successfully run a PT in Indonesia, it is essential to be up-to-date on the most recent legislative requirements because the legal framework in that nation has the potential to change.

Although “PT” is commonly employed and widely recognized as a symbol for a limited liability company in Indonesia, it continues to be important to speak with legal and business experts or the proper government authorities to completely comprehend the laws and regulations that apply to your particular business entity.

It’s important to keep in mind that while PTs have numerous advantages, they also have certain obligations and responsibilities, including adhering to local laws, submitting annual financial reports, and paying taxes.

As a result, it’s critical for entrepreneurs and business owners to be familiar with the obligations and legal requirements related to running a PT in Indonesia and to acquire professional help when needed.

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