The Guide to Company Deregistration in Indonesia | Dezan Shira & Associates

By Global Law Experts

– posted 4 years ago

The company dissolution process in Indonesia can be voluntary or non-voluntary. The voluntary dissolution occurs when the owners or investors of the business choose to close the business, due to a variety of reasons from low cash flow to the mismanagement of business operations to excessive company liabilities.

The non-voluntary dissolution of a company is defined under Article 142 of the Company Law of 2007, which include:

Court decision to liquidate the company in case the company’s assets are insufficient to settle bankruptcy costs;
Revocation of business license;
Company dissolution based on a general meeting of shareholders (GMS);
Dissolution as mentioned in the company’s Articles of Association; or
Bankruptcy assets of a company declared bankrupt are placed in a state of insolvency.