Choosing a name for your business in Bali feels like a creative exercise, a chance to brand your tropical dream. However, for foreign investors establishing a PT PMA, naming is a strict legal procedure governed by rigid state regulations. Many entrepreneurs are caught off guard when their perfect brand name is rejected by the Ministry of Law and Human Rights (MOLHR) because it lacks three words, contains foreign terminology in the wrong context, or simply clashes with an existing entity in the database.
The stakes are higher than just a re-branding delay. A rejected name halts the entire Company Registration process before it even begins. You cannot sign your Deed of Establishment, obtain your tax ID, or access the OSS system for licensing until your name passes the formal AHU Online checks. In the fast-paced investment landscape of 2026, getting stuck in a naming loop can mean missing out on lease agreements or losing momentum on your project.
This guide moves beyond marketing advice to the legal realities of naming your Indonesian entity. We will dissect the regulations under Law No. 40 of 2007, explain the practical “three-word rule,” and walk you through the AHU reservation system. By understanding the constraints and requirements upfront, you can select a name that is not only memorable but legally compliant, ensuring a smooth path to your NIB and business license.
Table of Contents
- Legal Rules for PT and PT PMA Names
- Eligibility and Naming Constraints
- Step-by-Step: Reserving Your Name on AHU Online
- The "Three-Word" Norm and Language Rules
- Real Story: The "Bali Eco" Rejection
- Key Risks and Common Rejection Reasons
- Strategic Naming Tips for Foreign Investors
- 2026 "Not Confirmed" Areas to Watch
- FAQ's about PT PMA Naming
Legal Rules for PT and PT PMA Names
The foundation of naming a limited liability company in Indonesia lies in Company Law No. 40 of 2007 and Government Regulation No. 43/2011. These regulations mandate that every company name must be unique and written in Latin characters. The system is designed to prevent confusion, meaning you cannot use a name that is “similar in essence” to one already registered. If a “PT Bali Sunset” exists, “PT Bali Sunsets” will likely be rejected.
Furthermore, the name cannot conflict with public order or morality. It is strictly forbidden to use names of state bodies, international organizations (like “UN” or “ASEAN”), or purely numerical strings. Crucially, the name cannot consist solely of the business classification itself. You cannot name your company “PT Real Estate Indonesia” or “PT Digital Marketing.” The name must have a distinctive element that separates it from the generic industry description, a rule enforced rigorously during the Company Registration screening.
Eligibility and Naming Constraints
Who actually reserves the name? In practice, this is handled by the Indonesian notary who will draft your Deed of Establishment. They use their authorized access to the AHU Online system (SABH) to perform the check and reservation. For a PT PMA, the name must be strategic. It should align broadly with your intended business activities as defined by your KBLI codes in the OSS system. Using a misleading name—like “PT Global Finance” for a tourism consulting firm—can trigger rejections or scrutiny from the Ministry of Investment/BKPM.
Conflicts are the biggest constraint. The AHU database is vast, and the definition of “similar” can be subjective. Even if the system initially accepts a name, an existing company can technically sue for trademark infringement or unfair competition if they believe your name mimics theirs. Therefore, conducting a preliminary public search on the AHU website before paying for a voucher is a critical first step in the Company Registration workflow.
Step-by-Step: Reserving Your Name on AHU Online
The technical process begins with pre-screening. Your notary will shortlist several options that meet the criteri Latin script, non-offensive, and distinct. They then log into the Sistem Administrasi Badan Hukum (SABH) on the AHU portal. The first formal step is purchasing a name reservation voucher via SIMPADHU, typically paid through a designated bank.
Once the voucher is active, the notary enters the Pendaftaran Nama menu. They input the proposed name, the company type (PT PMA), and the domicile. The system runs an automated check against prohibited elements and existing names. If approved, the AHU issues a formal “Name Approval.” This reserves the name for a specific period (often 60 days, though this is Not confirmed as a fixed standard in all 2026 guides). This approval document is legally required to finalize your Deed of Establishment.
The "Three-Word" Norm and Language Rules
A distinct feature of Indonesian Company Registration is the language rule. Local PTs wholly owned by Indonesians generally must use names in the Indonesian language. However, PT PMAs enjoy more flexibility; they are permitted to use foreign words (e.g., English) provided they meet other criteria. This allows foreign investors to maintain global branding continuity.
Perhaps the most famous “unwritten rule” is the three-word convention. While the statutes do not explicitly state “minimum three words,” the MOLHR system and practice heavily favor it to ensure uniqueness. A name like “PT Bali Investments” (2 words) is highly likely to be rejected as too generic, whereas “PT Bali Investments Group” (3 words) has a better chance. While the absolute legal mandate for three words is Not confirmed, adhering to it is the safest strategy to avoid rejection delays.
Real Story: The "Bali Eco" Rejection
Meet Lesley, a 32-year-old sustainability entrepreneur from Australia. In early 2026, Lesley planned to open an eco-resort in Uluwatu. He had his logo designed, domain bought, and marketing deck ready under the name “Bali Eco Stays.” He approached a notary to start his Company Registration.
The notary ran the name, and it was instantly rejected. The system flagged “Bali Eco Stays” as too similar to an existing “PT Bali Eco Stay” registered in 2015. Lesley tried “Eco Stays Bali”—rejected again. He then tried “Sustainable Stays”—rejected for being generic. The humid air of the notary’s office felt heavy as Liam realized his branding work was useless. He couldn’t sign his lease without the company deed, and he couldn’t get the deed without a name.
Desperate to move forward, Lesley contacted a trusted tax management company for advice. They helped him brainstorm a more distinct, three-word combination that retained his brand identity but satisfied the AHU algorithm: “PT Uluwatu Green Haven.” It passed immediately. “I learned the hard way,” Lesley said. “In Indonesia, the government names your company first, your marketing team names it second.”
Key Risks and Common Rejection Reasons
The most frequent reason for rejection is similarity. The AHU system protects existing entities from “sound-alike” names. “PT Ocean Blue” and “PT Ocean Bloo” would likely conflict. Another major risk is using reserved words. Words like “Bank,” “Insurance,” or “Capital” are restricted to entities with specific financial licenses. Using them without a permit from the Financial Services Authority (OJK) triggers an automatic block.
A subtle risk lies in future rebranding. Changing a PT PMA name after Company Registration is a nightmare. It requires a General Meeting of Shareholders (GMS), a deed amendment, new MOLHR approval, and then updating every single license in the OSS, your tax ID, bank accounts, and contracts. It is costly and time-consuming, making it vital to get the name right the first time.
Strategic Naming Tips for Foreign Investors
To navigate this, focus on distinctiveness. Combine a generic word (like “Ventures” or “Solutions”) with a unique identifier (like “Nusantara,” “Dewata,” or a coined word). This satisfies the three-word norm and reduces conflict risk. Ensure the name is pronounceable in Indonesian to facilitate local banking and administrative interactions.
Also, consider the “PT” prefix. The full legal name will be “PT [Your Chosen Name].” You can trade under a different brand name (e.g., your restaurant sign says “Burger King,” but the company is “PT Sari Burger Indonesia”), but your legal contracts and invoices must use the full PT name. Aligning these avoids confusion for suppliers and tax officers.
2026 "Not Confirmed" Areas to Watch
While the process is structured, some areas remain fluid. The “three-word rule” is a strong convention but legal texts do not explicitly forbid two words if they are unique enough—yet testing this is risky. Similarly, the exact duration of the name reservation (often cited as 60 days) can vary based on system updates, and whether it can be extended is Not confirmed as a guaranteed right.
Additionally, the treatment of specific words like “Nusantara” (the new capital city name) is evolving. Authorities may restrict its use to prevent associations with state projects. Always verify the latest restricted word list on the AHU portal with your notary before committing to a name.
FAQ's about PT PMA Naming
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Can I use English words in my PT PMA name?
Yes. Unlike local PTs which must use Indonesian, PT PMAs are generally allowed to use English or other foreign languages in their Company Registration.
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Does the name have to be three words?
Legally, this is Not confirmed as a hard statute, but practically, the AHU system and notaries strongly recommend three words to ensure uniqueness and avoid rejection.
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Can I use the same name as my overseas parent company?
You can, provided it is unique in Indonesia. If "Global Tech" exists here, you might need to add a suffix, e.g., "PT Global Tech Indonesia."
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How long does name approval take?
The AHU Online system is automated. If the name is available and compliant, approval is typically issued instantly or within a few hours.
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Can I change the name later?
Yes, but it is a complex process involving deed amendments, government approvals, and updating all tax and business licenses.
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Is the trade name the same as the company name?
No. Your PT name is the legal entity. You can operate a shop or product with a different brand name, provided you own the trademark.
