Dissolution of the Company in Indonesia – The main purpose of establishing a company and opening up business opportunities is to make a profit. But running a business often doesn’t go well, many problems arise in running a business. When a company continues to lose money, shareholders can think of two options: improve and restructure management, or dissolve the company.

Dissolution of the company is the right choice to restructure your business, if your business is no longer profitable and there are many problems.

Below are the things you need to know if the company is going to be dissolved under Indonesian law.

What is Meant by Company Dissolution?

The dissolution of a company, which is also known as dissolution, is a method of closing a limited liability company by removing its name from the official register registered with an agency/institution related to the company.

The Reasons for the Company to be Dissolved

Legally based on Law (UU PT – Perseroan Terbatas) No.  40 of 2007, there are several reasons that can cause the dissolution of the company, including:

  1. Decision of the General Meeting of Shareholders (GMS) that is valid based on deliberation to reach a consensus with at least three quarters of the shares with voting rights supporting the dissolution;
  2. The expiration of the period of establishment as stated in the articles of association;
  3. Revocation of business licenses, especially for companies with certain licenses;
  4. Based on a court decision, due to non-compliance with the law, including legal defects in the deed of establishment and operation of the company which has been inactive for three years;
  5. Based on a court decision regarding the bankruptcy of the company, if the remaining assets of the bankrupt company are not sufficient to pay the bankruptcy costs;
  6. When the Company’s Business License (PT PMA) is revoked, the company has been liquidated.

Liquidation Stage

Based on Law (UU PT – Perseroan Terbatas) No.  40 of 2007, the following are the steps of the liquidation process:

  1. Announcement of dissolution by the liquidator in newspapers and the State Gazette of the Republic of Indonesia. This announcement contains information regarding the dissolution of the limited liability company and the basic law, the name and address of the liquidator, the procedure for filing invoices and the period for submitting collections.
  2. Register the proposed dissolution with the Ministry of Law and Human Rights, within 30 days after the dissolution is effectively carried out.
  3. Liquidator registers company assets and settlement obligations to creditors. In the event that the liquidator does not perform its obligations, this petition is open to interested parties
  4. Report the final results of the liquidation to the GMS or court for approval.
  5. Report on the liquidation of ratification to the Ministry of Law and Human Rights and announce it in the newspaper within 30 days from the date of ratification.
  6. The Ministry of Law and Human Rights records the expiration of the company’s legal status and deletes the company’s name.

The Time Limit Required in the Process of Dissolving the Company

Here we provide a timeline table of the processes needed to complete the entire process of dissolving the company.

No.Legal StepsTimeline/Estimation
1Drafting Circular Decision
on Company Dissolution
5 working days
2Drafting Newspaper
Announcement on Intention
of Company Dissolution
3 working days
3Deed of Company
30 working days
4MOLHR Approval on Deed
of Company Dissolution
30 working days
5Drafting Newspaper
Announcement on Equity
3 working days
6Drafting Circular Decision
on Liquidation Results
7 working days
7Deed of Company
30 working days
8MOLHR Approval on Deed
of Company Liquidation
30 working days
9Drafting Newspaper
Announcement on
Completion of
60 working days
10Tax Card CancellationSubject to Tax Office
11Revoke LicenseSubject to BKPM
12Closing Bank AccountSubject to Bank

Liquidation Service

Indoservice can act as a liquidator to assist the liquidation process of companies wishing to dissolve in Indonesia.

The process and duties of Indoservice liquidators are as follows:

  1. Announcement and Notification of Company’s Dissolution Stag
  2. The Stage of Listing and Sharing of Wealth
  3. Creditor Objection Submission Stage
  4. Liquidator Accountability Stage
  5. Stage of Announcement of Liquidation Results


Establishing a company is easy! But not to dissolve the company. Because there are certain steps that must be met in the dissolution process that have been regulated by law that every company owner must follow in the dissolution process.

Confused regarding the company’s dissolution and don’t have time to take care of it? Or have other questions regarding the dissolution & its costs?

You can contact us Indoservice regarding the dissolution of the company in Indonesia.

Indoservice, a secretarial and corporate licensing legal consulting company that can assist you in the process of dissolving a company in Indonesia, revocation of permits related to dissolution and appointment of liquidation. Trusted and experienced in Indonesia, committed to providing the best and fast service to meet your needs.

Contact us now!!! for special offers at +6281818811887 & +6287714498500 or admin@indoservice.co.id.


  1. Ee Fong

    Hi, I was looking for dissolution solutions when I came across your website. May I know the rough costs for dissolving a small local PT with Indoservice, and if Indoservice assists with the whole process?

    • Indoservice

      Hi Ee Fong. Our team will email you as soon as possible. Please wait ya.

  2. Sameer Maasarani

    I established a PT PMA a year ago. Nothing has taken place. No investment! No purchases! No staff! No activities what so ever!
    Should I Dissolution/dissolve it or just make it nonfunctional please?

    • Indoservice

      Hallo Sameer. If there is no business activity, close the company by dissolution. We can help with the dissolution of the company. Please contact us via phone/whatsapp +6287714498500 or email admin@indoservice.co.id

  3. Siakamio Albert

    Thanks so much for the blog article. Thanks Again. Really Great.


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Dissolution of the Company in Indonesia
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Dissolution of the Company in Indonesia
Dissolution of the company is the right choice to restructure your business, if your business is there are many problems.
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