In Indonesia, regarding to capital investment of a company, there are two types of company. First is Domestic Limited Liability Company (Penanaman Modal Dalam Negeri or PMDN), and second is Foreign Direct Investment (Penanaman Modal Asing or PMA). The form of PMDN and PMA in Indonesia are as Limited Liability Company (Perseroan Terbatas or PT). As a businessman who owns a PT, sometimes there is a plan to change the type of the company from PMDN into PMA and vice versa. Therefore, before do changes, there are some rules and regulations that must be understood about The Changes in Article of Association of PT.
Business Activity of the PT
Before doing changes in PT, you have to adjusting the business activity of the PT with Negative Investment List. There are three qualifications to business activity in regarding with share owned by foreigners. Firstly is 100% forbidden, secondly is open with term and condition. And in addition is open 100%.
The Changes in Article of Association of PT
Changes in PT is regulated on Indonesian Law Number 40 Year 2007 concerning Limited Liability Company (hereinafter referred to as UU PT). More specifically it is regulated in Part Two Paragraph 2 UU PT. To do changes in PT, you have to conduct General Meeting of Shareholder (Rapat Umum Pemegang Saham or RUPS). In other word, all the decision regarding the changes are must reach quorum. As a result of the RUPS, the notary will sign the Minutes of RUPS and make a deed of change in accordance with the RUPS. Because the Minutes of RUPS must get the approval from Indonesian Ministry of Law and Human Rights, therefore the notary will request an approval for it.
Further Information about Changes in PT
This is a glimpse of information about changes in PT. May this information be useful for you. More detail information about changes in PT, Indo-Ned Consultancy is provide service to prepare the changes. Please find our office at Graha Mobilekom 1st Floor Jl. Raden Saleh Raya No. 53, Menteng, Central Jakarta or our office in Bali at PM 1, Jl. Patih Jelantik, Kompleks Comercial Istana Kuta Galeria, Badung 80361. Or you can contact us by phone at our hotline number +62 21 314 56 14/+62 812 8622 5138 (Jakarta Office) and +62 361 769 102/+62 821 6188 1767 (Bali Office).
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