Business Entity Types in

Indonesia
State Owned Company (BUMN)
• Business entity whose capital is wholly or partly by the government.
• Perum
• Persero
Perum
• Public Company (Perum) is not oriented to public service but toward
profit. Employees status is civil servants.
• Character :
1. Serving the public interest
2. Led by directors
3. Has a socioeconomic function
4. Has a state facility

Ex: Perum Damri

Persero
• Liability Company is one that capital in the form of stock. It is managed
by a professional team.
The traits of Liability Company:
1. Commercial
2. Employee status is private employees
3. Written as PT (name of company) (Limited)
4. Not obtained through the state

Ex: PT Garuda Indonesia

Private Owned Company
• Established and financed by a person or group of people.
• There are 3 forms of BUMS, such as Firma, CV, PT
Firma
• Character : Formed between more people using shared name.
Responsibility of member firms is not limited.
Capital is from submission all personal.

• Benefits : Easy to establish

Greater financial capability
Clear legal status

• Disadvantage : Debts
Less reliable
Internal conflict
CV
• Commanditaire Vennotschap
• Character : Formed between one or more people who run the business
Consists of silent and active partners

• Advantage : Easy to establish

Ability to get more credit
Greater expansion opportunity

• Disadvantage : Responsibility is not limited for the general partners

Survival is less reliable
Difficult for pulling back investment
Company Limited
• Character : Profit is the main goal
Commercial and economic functions
Employees status is private
Government is a shareholder

• Advantage : Limitation for debts

Survival of company is guaranteed
Sharers are traded easily

• Disadvantage : High establishment cost

Make tax reports
Need a special permit to open