Glossary of Indonesian business terms

Each entry says what the term is, where it is checked, and what it tells you and what it does not. Rules and portals change, so check the current official portal before you rely on a detail.

PT

Perseroan Terbatas, limited liability company

The standard company form for trading and operating businesses in Indonesia. A standard PT is established by a notarial deed approved by the Ministry of Law and recorded in AHU. A record shows the legal form, name, registered address and officers as recorded. It does not show whether the company trades today, pays its bills or can deliver what you need.

PT Perorangan

Single-founder limited liability company for micro and small businesses

A PT with one founder, registered electronically through AHU without a notary. Eligibility limits apply, so check the current official portal for the rules. A record shows that the company exists and who founded it. The form is meant for small businesses, so it says little about capacity to handle a large order.

CV

Commanditaire Vennootschap, limited partnership

A partnership with active partners who run the business and silent partners who invest. A CV is recorded in AHU, but it is generally not treated as a separate legal entity in the way a PT is, so the active partners can carry personal liability. Ask an Indonesian legal adviser how this affects your contract. A CV record shows the partnership exists; it does not show how much capital stands behind it.

Tbk

Terbuka, public company

A suffix on a company name showing that it is a PT whose shares are offered to the public. Listing and disclosures are checked on the Indonesia Stock Exchange and with the financial services authority, OJK. It tells you the company has public reporting duties. It does not tell you how the company is performing.

BUMN

Badan Usaha Milik Negara, state-owned enterprise

A company owned or controlled by the state. State ownership is shown in company records and in government listings; check the current official sources. It tells you who the owner is. It does not by itself mean the state stands behind a particular contract, and subsidiaries are separate companies.

AHU

Administrasi Hukum Umum, general legal administration of the Ministry of Law

The Ministry of Law's online system where company registrations, deeds, approvals and officer changes are recorded. It is the main place to confirm that an Indonesian company exists and to see its legal form and officers. Its company profile summarises the registered data and is a paid search. A record is only as current as the last filing and does not show how the company behaves in business.

Akta pendirian

Deed of establishment

The notarial deed that creates a PT, setting out the name, purposes, capital and first board. A copy comes from the company or its notary; the AHU company profile summarises the registered data. It shows the original terms. Later changes are made in separate amendment deeds, so the original deed alone may be out of date.

SK Kemenkumham / Kemenkum

Surat Keputusan, approval decree of the Ministry of Law

The decree by which the Ministry of Law approves a company's legal entity status or an amendment, recorded in AHU. Kemenkumham (Ministry of Law and Human Rights) was split in October 2024, and approvals since then come from the Ministry of Law (Kemenkum), so older decrees say Kemenkumham. It shows that approval was granted on a given date. It does not show the company's current status.

NIB

Nomor Induk Berusaha, business identification number

The number issued through the OSS system that identifies a business and its registered activities. A company can show its NIB, and the record can be checked on the OSS portal. It shows the business is registered for the listed activities. It does not show that every licence needed for a particular activity is in place; check that separately.

OSS (OSS-RBA)

Online Single Submission, risk-based approach

The government portal for business registration and licensing. Under the risk-based approach, the licences a business needs depend on the risk level of its activities. It is where the NIB and business licences are issued and where they are checked. A licence listed here does not by itself show the business is operating or compliant with other rules.

KBLI

Klasifikasi Baku Lapangan Usaha Indonesia, standard classification of business activities

The code system that classifies business activities, shown in the company deed and in the NIB. The codes show which activities the company is registered to carry on, so check that the codes match what you plan to buy or sell. The classification is revised from time to time. A matching code does not show the company actually does the work.

NPWP

Nomor Pokok Wajib Pajak, taxpayer identification number

The tax number a company uses with the tax office, which appears on invoices and can be checked with the tax authority. It shows the company is registered for tax. The number format has changed in recent years, so check the current official portal. It does not show whether the company has filed or paid what it owes.

KSWP

Konfirmasi Status Wajib Pajak, tax status confirmation

A confirmation from the tax office about a taxpayer's status at a point in time, sometimes requested in tenders and by government buyers. Ask the company for a current copy. It shows the status on the date issued. It does not show the company's profits or tax liabilities, and it can become out of date.

Pengadilan Niaga

Commercial Court

The court that hears bankruptcy and PKPU cases, among other commercial matters; there are five, at the district courts of Central Jakarta, Surabaya, Semarang, Medan and Makassar. Its cases are recorded in the court case system, SIPP. A search shows whether a bankruptcy or PKPU petition exists against a company. It does not cover disputes heard elsewhere, such as in other courts or in arbitration.

PKPU

Penundaan Kewajiban Pembayaran Utang, suspension of debt payment obligations

A court-supervised process in which a debtor and its creditors negotiate how debts will be paid. It is heard by the Commercial Court and recorded in SIPP. A record shows the request, its stage and, once decided, the outcome: an approved composition plan (homologasi) or, if no plan is approved, bankruptcy. A record checked on one date may not show later steps.

Kepailitan

Bankruptcy

A court declaration that a debtor is bankrupt, after which a curator manages its assets for creditors. It is decided by the Commercial Court and can be found in SIPP. A record shows that a declaration was made and when. No record does not mean a company is free of financial difficulty.

SIPP

Sistem Informasi Penelusuran Perkara, court case tracking system

The public case-tracking system of the Indonesian courts, searchable by court. It shows that a case was registered, the parties named and the stage it has reached. Coverage and update timing differ between courts, and names can match more than one company. Confirm the identity of the party before relying on a match.

LPSE

Layanan Pengadaan Secara Elektronik, electronic procurement service

The electronic procurement systems on which government bodies publish tenders and results. We search tender notices and awards for a company's name. A result shows that the company took part in or won a tender. It does not show how well the contract was carried out.

LKPP blacklist (Daftar Hitam)

List of providers barred from public procurement

LKPP, the national public procurement policy agency, publishes a list of providers barred from government tenders for a set period. We check whether a company or its officers appear on it, and on which date. A listing shows a bar from public tenders. Not being listed does not show anything about its dealings with private buyers.

Meterai

Duty stamp

Bea meterai is a tax on certain documents, such as agreements and documents used as evidence in court, paid with a stamp or e-Meterai at a single rate set by law (currently Rp10,000). A missing stamp does not by itself make an agreement invalid; the duty can be paid later if the document is needed as evidence. A stamp shows the duty was paid. It does not show that the contents are accurate or that the signatory had authority.

Direksi and Dewan Komisaris

Board of directors and board of commissioners

The directors manage a PT and represent it; the commissioners supervise the directors and advise them. Their names are in the deed and in AHU, and changes are recorded when filed. A record shows who is registered in each role. It does not show who in fact takes decisions or has authority to sign for a given deal.

UBO

Ultimate beneficial owner, beneficial owner reporting

Indonesian rules require corporations to identify their beneficial owners, the people who ultimately own or control them, and report them to the authorities. Check the current official rules and whether any of this information is open to the public. Where we can see it, we state it with its source. Where it is not available, we say so rather than guess.

VerifyExact provides information, not legal or financial advice. For larger transactions, involve your own legal and financial advisers.

Glossary of Indonesian business terms — VerifyExact