As we all know, a court ruling is extremely final and strict, thus the court plays the most direct role with regard to the forced closure of any company in Indonesia. Evidently it is due to the fact that court decisions and verdicts have a direct impact on the company itself.
An example of a reason why the court authorities may choose to enforce the closure of a company in Indonesia is possibly due to failure to comply with the country’s corporate laws.
Such non-compliance may include the legal defect of the company’s deed of establishment as well as any attempt to operate a company which has not been active for three years or longer.
The court may also require a company to be closed if the company has become bankrupt and the assets which are currently owned by the company are insufficient to cover all remaining debts which would thus allow the company to no longer be bankrupt.