If your foreign-owned company (PT PMA) in Indonesia is no longer operating, it’s important to close it properly through official legal channels. This helps you avoid future tax penalties, complications with immigration, or difficulties in starting new business entities in Indonesia.
Below is a step-by-step guide to help you understand the PT PMA closure process, including who is involved, how long it takes, and how much it costs.
Step-by-Step Process to Close a PT PMA
1. Shareholders’ Meeting – Requires a Notary
The process begins with a General Meeting of Shareholders (RUPS), where the owners agree to liquidate the company and appoint a liquidator.
This meeting must be legalized by a notary, who issues the first official deed (Akta Pembubaran Perusahaan).
The liquidation decision is announced in two national newspapers for 30 days.
2. Liquidation Report – Requires an Accountant
After the 30-day notice, the liquidator (with assistance from a certified accountant) prepares a liquidation report, which includes:
- Final financial statements
- Settlement of liabilities
- Documentation to revoke the company’s tax ID (NPWP)
This step may trigger a tax audit and typically takes the longest.
3. Final Shareholders’ Meeting – Notary Required
Once the NPWP is revoked and the liquidation is complete, a second shareholder meeting is held to approve the liquidator’s work.
This also requires notarial confirmation and results in a second deed (Akta Pengesahan Laporan Likuidasi).
The final liquidation report is then published in newspapers (bringing the total to 3 announcements).
4. Submission to Ministry of Law (Kemenkumham)
All finalized documents — including both deeds, tax clearance, and newspaper publications — are submitted to the Ministry of Law and Human Rights.
Once approved, the PT PMA is officially deregistered and no longer exists as a legal entity.
Who Is Involved?
Notary
- Prepares and legalizes both shareholder meetings
- Submits documentation to government offices
- Coordinates newspaper publications
Accountant
- Prepares liquidation financial reports
- Assists with tax clearance and NPWP revocation
- May support during a tax audit if required
How Long Does It Take?
The full process typically takes 3 to 6 months, depending on how quickly the accountant finalizes the report, how responsive the tax office is, and whether the company has outstanding obligations.
How Much Does It Cost?
The cost of officially closing a PT PMA is typically IDR 15–25 million, which includes:
- Two notarial deeds
- Three newspaper announcements
Note: This range does not include accounting fees for the liquidation report, which vary depending on your company’s financial history, volume of transactions, and whether a tax audit is triggered.
Alternative Option: Freezing the Company
If your PT PMA has no activity (no revenue, no employees, no debts), you can consider freezing the company instead of closing it completely. This means:
- The company remains in the legal registry
- No new business activity or tax reporting is done
- No need to go through full liquidation
- It is a faster and cheaper solution
Cost of freezing a PT PMA:
Starts from IDR 5 million.
However, freezing is a temporary and informal solution, and in the future, dormant companies may be targeted by regulation or subject to forced closure.
What Happens to the Investor KITAS?
If your PT PMA is closed, the company can no longer act as a sponsor. This means your Investor KITAS must also be closed through an EPO (Exit Permit Only) process.
We recommend handling this alongside the liquidation process to avoid overstaying or legal risks.
Need Help Closing Your PT PMA?
We support foreign founders through the full company closure process — including document preparation, liaison with accountants and notaries, and assistance with the EPO process.
Whether you want to officially close your company or temporarily freeze it, we can help you choose the most efficient and safe solution.
Contact us today for a free consultation and receive a custom checklist based on your company’s status.