Law No. 40 of 2007 on Limited Liability Companies

Summary

Law 40/2007 is the core statute on the limited liability company (Perseroan Terbatas, PT). It covers incorporation and articles of association, capital and shares, work plans and annual reports, social and environmental responsibility, the general meeting of shareholders (GMS, or RUPS), the board of directors and board of commissioners, mergers, acquisitions and spin-offs, company investigations, and dissolution and liquidation.

The Law replaced Law 1/1995. Since 2020 several articles have been amended through the Job Creation framework (now Law 6/2023), among other things to allow an individual PT for micro and small businesses and to leave the amount of authorized capital to the founders' agreement. Because Law 25/2007 requires foreign investment to take the form of an Indonesian PT, a PT PMA (foreign-owned company) is also governed by this Law.

Key points for investors

• Legal basis for every PT deed of establishment and every amendment.
• Sets the annual GMS, annual report and directors' liability obligations.
• AHU (company registry) registration rules: PP 8/2021 and Permenkum 49/2025.

Status & related regulations

Amended by

• UU No. 6 Tahun 2023
• PERPU No. 2 Tahun 2022
• UU No. 11 Tahun 2020

Revokes

• UU No. 1 Tahun 1995

Related at IzinBeres

• PT PMA company registration
• Read in Bahasa Indonesia
• All regulations in the library

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