Deciding to shut down a business operation in Bali is often more complex than starting one, especially with the shifting regulatory landscape in 2026. Many foreign investors assume that simply stopping operations is enough, only to be hit with severe penalties or blocked from future entry due to unresolved tax liabilities and administrative loose ends. The reality of dissolution involves a strict legal sequence that must be followed to protect your assets and personal legal standing.
The complexity has intensified with the introduction of the Core Tax Administration System (CTAS), or Coretax, which centralizes data and increases scrutiny on every corporate move. Failing to navigate these new digital compliance hurdles can turn a standard liquidation into a drawn-out nightmare of audits and frozen accounts. Investors must now approach the dissolution process with a strategy that aligns with both the Ministry of Law and Human Rights and the new data-driven tax directives.
This guide outlines the essential procedures to dissolve your company safely and legally, ensuring you leave Indonesia with a clean slate. We will walk you through the practical Steps to close PT PMA, highlighting exactly how the new Coretax system impacts your tax verification and final clearance. For professional assistance with these complex filings, consider consulting a trusted tax management company to ensure your liabilities are fully settled.
Table of Contents
- The General Meeting of Shareholders (GMS)
- Appointment of Liquidator and Newspaper Announcement
- Revoking Business Licenses (OSS)
- The Tax Audit and Coretax Compliance
- Real Story: Navigating the New Audit
- Settlement of Assets and Liabilities
- Ratification by the Ministry of Law and Human Rights
- Final Revocation of NPWP
- FAQ's about Closing a PT PMA in Indonesia
The General Meeting of Shareholders (GMS)
The first and most critical of the Steps to close PT PMA begins internally with the General Meeting of Shareholders (GMS). In Indonesia, a company (PT PMA) is a separate legal entity, and its life cycle is dictated by its shareholders. You cannot simply lock the doors; the decision to dissolve must be formally proposed, voted on, and documented in a notary-drawn deed.
For a valid dissolution, the GMS must achieve a quorum as dictated by the company’s Articles of Association, typically requiring a 75% majority vote. This meeting officially declares the company “in liquidation” (Dalam Likuidasi). Once this deed is signed, the company legal status changes, and you are no longer allowed to conduct profit-generating business, only actions necessary to settle the company’s affairs.
Appointment of Liquidator and Newspaper Announcement
Once the decision to dissolve is made, the shareholders must appoint a liquidator. This can be the Board of Directors or an external professional legal party. The liquidator’s responsibility is to manage the company’s assets and settle debts during the closing process. Simultaneously, Indonesian law requires transparency to protect creditors.
The liquidator must announce the company’s dissolution in the State Gazette of the Republic of Indonesia (Berita Negara RI) and in a local newspaper. This public announcement opens a 60-day window for creditors to submit claims against the company. This is a mandatory waiting period. If you rush through the Steps to close PT PMA without this public notice, the entire dissolution can be deemed legally invalid, leaving directors personally liable for future claims.
Revoking Business Licenses (OSS)
While the creditor waiting period is active, the liquidator must proceed with revoking the company’s operational licenses. In 2026, most of this will be handled through the Online Single Submission (OSS) Risk-Based Approach (RBA) system. You must log in and formally request the revocation of your NIB (Business Identification Number) and any specific commercial licenses (Izin Usaha).
The government needs to know that the investment realization is ceasing. This involves submitting a final LKPM (Investment Activity Report) to the Ministry of Investment/BKPM. Failure to submit this final report or update the OSS status correctly can flag your entity as “non-compliant” rather than “dissolving,” which may trigger unwanted automated warnings from the BKPM before you successfully close.
The Tax Audit and Coretax Compliance
This is widely considered the most difficult hurdle in the Steps to close PT PMA. Before a company can be legally dead, it must obtain a Tax Clearance Letter (SKPP). To get this, the Directorate General of Taxes (DJP) will conduct a mandatory tax audit to ensure all outstanding taxes—VAT, corporate income tax, and withholding taxes—are paid.
In 2026, this process has evolved significantly due to the implementation of the Core Tax Administration System (CTAS). Coretax integrates data from banks, customs, and third-party withholding, making the audit far more thorough.
- Data Matching: The auditor will use Coretax to instantly match your reported revenue against bank flows and VAT data. Discrepancies that might have slipped through in the old system will now be flagged automatically.
- Billing & Payment: If the audit reveals underpayment, you must generate billing codes directly in the Coretax portal.
- Profile Updates: Ensure your director/commissioner data in Coretax is perfectly accurate before triggering the audit, as data mismatches can stall the process.
You can learn more about the technical rollout of the new tax system on the official DJP Coretax page.
Real Story: Navigating the New Audit
Marcus, a tech entrepreneur in Pererenan, decided to close his software development PT PMA in early 2026 to move back to Europe. He assumed his tax reporting was clean because he used a basic accounting app. However, during the tax deletion audit, the new Coretax system flagged a discrepancy between his VAT outputs and his corporate bank account inflows from 2025. The automated risk-profiling labeled his company “high risk,” pausing the dissolution.
Marcus had to hire a specialized tax consultant to reconcile the data. It turned out to be a coding error in how his foreign income was categorized in the new unified return system. Once corrected via a formal amendment in Coretax, the penalty was waived under the transitional relief rules, and he secured his tax clearance. The lesson: automated oversight in 2026 allows for zero margin of error.
Settlement of Assets and Liabilities
Following the tax audit and the expiration of the creditor claim period, the liquidator must finalize the distribution of assets. This is the practical execution of the “liquidation.” All company debts (including taxes, employee severance, and creditor claims) must be paid first. Only after these obligations are met can any remaining assets be distributed to the shareholders.
If the company has property or significant physical assets in Bali, these must be sold or legally transferred. Be aware that transferring assets to shareholders often triggers a final tax event (Capital Gains or Dividend Tax) which must be settled before the NPWP can be revoked. The liquidator prepares a final report on the result of the liquidation to be presented to the shareholders for ratification.
Ratification by the Ministry of Law and Human Rights
Once the assets are distributed and the final GMS has accepted the liquidator’s accountability report, the dissolution must be officially recorded by the state. The notary submits the deed of liquidation ratification to the Ministry of Law and Human Rights (MOLHR/Kemenkumham).
The Ministry will review the documents to ensure all legal requirements, including the newspaper announcements and creditor settlements, were conducted properly. Upon approval, the Ministry issues a Decree (SK) officially declaring the PT PMA dissolved. At this point, the legal entity technically ceases to exist, but there is one final administrative step remaining in the Steps to close PT PMA regarding the tax office.
Final Revocation of NPWP
Even after the Ministry of Law dissolves the company, the Tax ID (NPWP) remains active until formally revoked by the DJP. You must submit the Ministry’s dissolution decree and your Tax Clearance results to the tax office to request the permanent deletion of the NPWP.
Under the Coretax system, this final switch is critical. If you fail to revoke the NPWP, the system may continue to expect periodic filings and generate automatic fines for non-filing. The 16-digit NPWP (tied to the NIK for individuals or central ID for corporations) must be effectively “turned off” in the central database. Once you receive the notification of NPWP deletion, the company is fully and completely closed with no lingering obligations.
FAQ's about Closing a PT PMA in Indonesia
-
How long does the entire closing process take?
In 2026, with the integration of Coretax and the mandatory waiting periods, the process generally takes between 6 to 12 months. The tax audit is usually the longest phase, often requiring 6 months alone.
-
Can I leave Indonesia before the PT PMA is fully closed?
Yes, but you must appoint a liquidator or power of attorney. However, directors may still be personally liable if tax issues arise, so it is safer to ensure the Tax Clearance Letter is issued before fully disengaging.
-
What happens if I just abandon the company?
Abandonment is dangerous. The tax office will issue accumulating fines for missed filings. Eventually, the directors can be blacklisted from entering Indonesia, and future visa applications will be rejected.
-
Does the new Coretax system make closing faster?
Not necessarily faster, but more transparent. While the interface is better, the automated data matching means audits are more rigorous, potentially extending the timeline if your books are not in order.
-
Do I have to pay severance to employees when closing?
Yes. Indonesian Labor Law requires companies closing down to pay severance packages (Pesangon) to employees, the calculation of which depends on their length of service.
-
What are the typical costs involved?
Costs vary but include notary fees for the dissolution deed, newspaper announcement costs, and liquidator or consultant fees. Budgeting for these final steps is essential to avoid stalling the process mid-way.
