Closing a PT PMA: Essential Considerations

Closing a PT PMA (foreign investment company) may become necessary when the owners no longer feel motivated or interested in continuing the business that originally inspired its creation. There are various reasons for reaching this decision, including:

– Preventing financial losses
– Inactive operations
– Revising business strategies
– Legislative changes affecting the business (e.g., previously legal activities now banned)
– Reduced market demand

When these issues, among others, arise, founders may decide to liquidate the company. Our specialists are available to navigate you through this intricate and time-consuming process, ensuring a seamless and efficient closure.

Cost Overview

The final cost may vary based on the company’s revenue and the state of its tax and accounting records. If tax filings and financial documents are incomplete, disorganized, or lacking information, additional efforts may be necessary to rectify these issues, potentially increasing the overall expense.

Closure Process and Timeline

The process for closing a PT PMA comprises three main steps:

1. Resolution and Registration (2 weeks): The founders must adopt and register a resolution with the Ministry of Justice to liquidate the company. Following this, a liquidation notice is published in a newspaper.

2. NIB Revocation (2 weeks): The Business Identification Number (NIB) will be officially revoked.  When the NIB is canceled, the company is considered formally closed.  You will receive the required documentation.

3. NPWP Cancellation (6–12 months): The NPWP (Tax Identification Number) cancellation is overseen by our tax specialists. Upon confirmation from tax authorities that there are no outstanding tax obligations, NPWP cancellation will be finalized. Any taxes owed must be settled beforehand.

Important Note: At any stage during this process, the company’s director may be summoned by governmental agencies for clarification and should be prepared to travel to Indonesia if necessary.

Requirements for Closing a PT PMA

To close a PT PMA, the following documents are needed:

– Deed of Establishment
– Decree from the Minister of Justice and Human Rights of Indonesia (SK)
– Company information from AHU
– Company’s NPWP (Tax Identification Number)
– PKKPR (Safety, Health, and Housing Management Permit)
– Certificate of Standard (if applicable)
– Business License (NIB)
– Company Letterhead and Stamp
– Director’s ID (If Indonesian), or a photo/scan of the director’s passport and KITAS (if foreign)
– OSS ONLINE Login and Password (if available)
– Photo/Scan of All Founders’ Passports

If any changes occurred since the registration date:

– Amendment Deed (Akta Perubahan)
– Approval of Amendments (SK Perubahan)
– Change of Company Profile
– Additional data (if necessary)
– DJP and NPWPD System Logins and Passwords
– Company’s EFIN and Director’s EFIN
– Director’s NPWP
– All Submitted Tax and Accounting Reports since registration

If reports remain to be filed, please provide:

– Bank Statements
– Details of Expenses
– Details of Income