what is a perseroan terbatas pt 
perseroan terbatas pt is the type of legal entity that a foreign company foreign government or foreign individual must use to run a revenue generating business in indonesia also known as a foreign investment limited liability company a pt is a business entity that allows foreign investors to conduct commercial activities in indonesia any indonesian company that directly receives foreign investments must take the form of a pt a pt may be classified as an open closed domestic foreign individual or a general public pt understanding a perseroan terbatas pt every country has different legal entity types the american equivalent of a perseroan terbatas pt is a limited liability company llc most pts operate similarly to limited liability companies llcs and offer shares to the public shareholders of a pt are legally liable for a company s debts if it files for bankruptcy however investors are only liable only for the amount of their original investment the articles of association of a pt outline share ownership indonesian law governs the types of businesses that can operate as a pt governance and administration of pts are handled on a regional basis and the rules may vary for each region of the country the license requirements for each business will depend on the type of work in which they will be involved while the united states has business entities that operate similarly to an indonesian pt the specific rules and guidelines for a pt adhere to indonesian law regarding business entities countries often define their business in different terms and with various stipulations although a pt mirrors the limited liability company of the united states there are fundamental differences attributed to the governing laws types of perseroan terbatas pts in indonesiathere are a few basic types of pts an open pt is an llc that offers shares to the public typically this type of llc offers ownership shares available for purchase by most investors thus buying and selling stocks is relatively straightforward a closed pt is an llc that offers only private shares and restricts the sale of those shares to specific individuals or groups this limitation is most common for family owned and operated companies a domestic pt is an llc that physically exists and offers its goods or services in indonesia these types of pts must strictly comply with rules governing businesses in the republic of indonesia an individual pt is an llc with shares issued to and owned by only one person this person typically the owner or director of the company has sole authority within this type of business structure a foreign pt is an llc that is incorporated in and subject to the laws of a foreign country when an external company establishes a pt in indonesia the business is also subject to the laws and regulations of indonesia a general public pt is an llc that has a free share type ownership system any entity may own shares of this type of company the structure is similar to an open pt however shares of this type of company can also be listed on the stock exchange requirements for perseroan terbatas pts the indonesian investment coordinating board bkpm is a non ministerial government agency that acts as a go between for the government and private businesses the bkpm is in charge of implementing policy and coordinating foreign direct investment in accordance with the country s regulatory provisions the bkpm is mandated to help increase quality domestic and foreign direct investment to help drive the indonesian economy and promote job growth 1 below are some of the steps required to establish a pt and the length of time it may take to complete each step special considerationsforeigners interested in starting or investing in an indonesian business will need to navigate the country s complex rules regarding foreign investment while a pt is a legal form for foreigners to engage in business setting up a foreign investment company in indonesia can require a significant amount of time and expertise to comply with government regulations and receive final approval not all sectors are open to foreign investment in indonesia some sectors require partial domestic ownership which means the foreign investor will need to work with a local partner if they want to form a pt in some cases establishing a representative office might be a better option for a foreign investment company looking to do business in indonesia this allows the company to explore business opportunities through local networking and market research after performing such due diligence the company will be better informed before taking the next step of forming a perseroan terbatas 