Bali Visa AdvisorThe Indonesian government has introduced a new regulation that strengthens the obligation of Limited Liability Companies (Perseroan Terbatas / PT) to report their business activities once a year through the General Meeting of Shareholders (GMS).
This regulation aims to improve corporate transparency, accountability, and compliance with Indonesian company law.
Annual GMS Is Mandatory for All PT Companies
Under Indonesian Company Law (Law No. 40 of 2007), every PT is required to hold an Annual General Meeting of Shareholders (Annual GMS) at least once a year, no later than six (6) months after the end of the financial year.
During the Annual GMS, the company’s directors must present an Annual Report, which includes:
- A summary of the company’s business activities
- The financial statements
- Performance and operational reports
- Other mandatory disclosures required by law
The Annual Report must be reviewed and approved by the shareholders during the GMS.
Reporting Obligation to the Ministry of Law and Human Rights
Based on the latest regulation issued by the Ministry of Law and Human Rights, the results of the Annual GMS are no longer only internal documents.
After the Annual GMS is held:
- The GMS resolution must be prepared in a notarial deed
- The company is required to submit the GMS report electronically through the Legal Entity Administration System (SABH)
- The submission must be completed within 30 calendar days from the date the notarial deed is issued
This reporting obligation applies to all PT companies, including:
Why This Reporting Is Important
Failing to conduct and report the Annual GMS may result in:
- Written warnings from the authority
- Restrictions or temporary blocking of the company’s access in the SABH system
- Difficulties in processing future corporate changes, such as changes to directors, shareholders, or company data
Regular reporting ensures that the company remains legally compliant and operationally secure in Indonesia.