Similar to many other countries in the world, there are many different types of business entities in Indonesia. In these articles, you will be provided with some useful information in relation to the different types of business entities in Indonesia.

Business Entities to Incorporate in ID

A business entity is an organization created by one or more natural persons to carry on a trade or business.Business entities are subject to taxation and must file a tax return. Some business entities are considered for federal tax purposes to be not separate from its owner. In this article, you will be provided with the types of business entities that you can incorporate in Indonesia.

Perseroan Terbatas (PT)

Perseroan Terbatas (PT) is also known as a Limited Liability Company in Bahasa Indonesia. A PT is a legal entity to run a business that consists of capital shares, which is a part owner of shares owned. This is the case as every company’s capital consists of shares that can be traded in the market and the changes in the company can be done without the need to dissolve or strike off a company.

In Indonesiathere are two different types of PT company in Indonesia, i.e.:

  1. Local PT Company; and 
  2. Foreign Owned PT PMA Company 

Persero

A public company or also known as PT AsetManajemen Company (PERSERO) in BahasaIndonesia.Itwas established on 27th February 2004 through Government Regulation No. 10 of Year 2004. A PERSERO company in Indonesia is a company that carries out the main task of managing the assets of the former Indonesian Bank Restructuring Agency (“IBRA”), both credit assets, shares and property.

The main objectives of establishing a PERSEROCompany is to seek profit and to provide services to the public.The start-up capital comes in part or in whole from the separated state assets in the form of shares. The company will be headed by the board of directors while the employee is categorized as private employee from the PERSERO Company. 

The examples of companies that are included as PERSERO are PT Bank Mandiri (Persero) Tbk and PT Bank Rakyat Indonesia (Persero) Tbk.