The Perseroan Terbatas (PT) and Penanaman Modal Asing (PMA) are two of the major types of company in Indonesia. Both have certain characteristics which mark them as unique among all of Indonesia's companies, and both also contribute to the economic well-being of the country.

PT & PMA Companies

PT and PMA Companies in Indonesia

The business environment of any country is greatly affected by the type of companies which exist in the country. Every business entity will have its own impact on and contributions to the country’s economy. Such is the case in Indonesia, where prospective business owners can start any company of any sort as long as they have fulfilled all necessary criteria and regulations. Two of the most important and well-known business entities in Indonesia are the Perseroan Terbatas (PT) and Penanaman Modal Asing (PMA). Companies which are either PTs or PMAs can be found all over the country. People from all walks of life either own or work in such a company. Thus, they form much of the backbone of Indonesia’s economy and contribute to the country’s corporate success.

Of course, it should go without saying that as these are different business entities, there are certain characteristics of PTs and PMAs which are shared, as well as others which highlight the differences between the two. Both also have their advantages and disadvantages, so prospective business owners must have knowledge about everything related to these business entities before starting one.

If you are interested in starting a business of any sort in Indonesia, do not hesitate to contact us at Paul Hype Page & Co. Our incorporation specialists will see to it that the entire process of incorporation is completed smoothly and properly. We will even make contact with certain government bodies on your behalf if such is necessary.

PT Companies in Indonesia

PT is an acronym for the term “Perseroan Terbatas”. This term has no English equivalent, but it does have a Dutch one: “naamloze vennootschap”. Such companies only exist in the Netherlands, Belgium, and former Dutch colonies, of which Indonesia is one. A PT is a business entity which is formed according to and operates under the commercial laws of Indonesia.

PTs in Indonesia are Indonesian companies which receive investments from abroad. There are six separate types of PT which exist in Indonesia; these six are the domestic, individual, closed, general public, open, and foreign PT. Although there are many different types of PT in the country, the most common of them are those which offer their shares to the public. The PTs which do so are open and general public PTs.

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Characteristics of Each PT Type

Although both open and general public PTs offer their shares to the public, they nevertheless differ in one important way. General public PTs may have their shares listed on a stock exchange; such is not the case with open PTs.

Closed and individual PTs both impose certain restrictions on the ownership of shares. Closed PTs only offer private shares; such shares are only allowed to be purchased by certain individuals or groups. Closed PTs ar