A public limited company is called a Perseroan Terbuka (PT Tbk) in Indonesia. It's a limited liability company with shares available for trading on the Indonesian Stock Exchange (IDX). Compared to a private limited company (PT), a PT Tbk has stricter regulations and greater public scrutiny.
A public limited company (PLC) is a type of company that sells its shares to the public through the stock market. In simple terms, a PLC is a large company with strong capital and substantial resources.
This type of company allows many investors to own a small portion of its shares, allowing them to share in the profits and bear the risk of losses experienced by the company.
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PT Terbuka (PLC) and PT Tertutup (Ltd), known as a private limited company, have significant differences in terms of ownership and stock offerings, as explained in the following table:
| Aspects | PLC | Ltd |
| Legal Basis | Law No. 8/1985 on Capital Market (UUPM) | Law No. 40/2007 on Limited Liability Companies (UUPT) |
| Shareholders | Minimum 300 | Minimum 2 |
| Board of Directors | Minimum 2: allocation of tasks and authority determined by General Meeting of Shareholders (RUPS) | Minimum 1 |
| Capital | Minimum IDR 3 billion raised from public investors | Lower capital requirement: personal, family, or related sources |
| Shares | Listed on IDX; publicly traded | Unlisted; limited ownership |
| Reporting Obligations | Extensive reporting to the Financial Services Authority (OJK) | No mandatory reporting |
| General Meetings of Shareholders (RUPS) | Held at stock exchange; 14-day notice required | Held at company headquarters or primary business location |
When deciding on the appropriate corporate structure, one must consider the advantages and disadvantages of a public limited company.
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As outlined in the guidelines on the IDX website, Ltds seeking to transition into PLCs, the process encompasses:
This program, part of the IDX Incubator by BEI, facilitates the journey of startups and small- to medium-sized enterprises to becoming Public Companies.
Training covers IPO regulations, preparation for roadshows with investors, and understanding financial and legal aspects.
After completing all the preparations and participating in the above program, the limited liability company seeking to go public on the stock exchange must wait approximately three days after completing all processes and preparations.
Achieving PLC status can offer several advantages:
Companies can obtain extra funding from public investors or institutions. Obtaining additional capital by becoming a public company is generally more cost-effective than seeking funds by applying for bank loans.
With fresh funds from public investors, the company's cash flow can be smoother, allowing it to use the accumulated money for various programs it desires.
By becoming a public company, the company's image will also improve in the eyes of the public. A public company must have good information transparency for investors and the general public.
When a company becomes public, the founders can more easily divest their ownership by selling their shares to the public.
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Employees also have the potential to receive bonuses through an Employee Stock Option Plan (ESOP).
If you're interested in turning your company into a public limited company (PLC), it's important to understand the requirements you need to meet. Here are the criteria that must be met to achieve this status.
| Requirements | Descriptions |
| OJK and BEI registration | The primary criteria for a PLC company is being registered with OJK and recognized by BEI as a company planning to conduct an initial public offering (IPO). |
| Clear company structure | A PLC company must meet Good Corporate Governance (GCG) criteria, including a clear company structure, legal entity status, independent commissioners, an audit committee and an internal audit unit, and a company secretary. |
| Appropriate capital structure | Possess capital proportional to the listing category (primary or development board) based on share offering size, shareholder number, and IPO price. |
| Profitability | If the PLC company has yet to profit, it will be listed on the development board. Conversely, if it has recorded a profit of a particular value within a specific timeframe, it will be listed on the main board. |
| Transparent financial reporting | A crucial requirement is that the company's financial reports be transparent, accessible, and available on the official company website. |
| Tangible assets | Asset ownership is a vital accounting and financial aspect. Companies with at least IDR 5 billion in assets are listed on the development board, and those with IDR 100 billion or more are on the main board. |
Establishing a public limited company can benefit investors, employers, and employees. Whether you're considering a Limited (Ltd) or a Public Limited Company (PLC), a legitimate company presence is a cornerstone for business success in Indonesia.
At Ascentium Indonesia, we comprehend the complexities of establishing your company and stand ready to be your trusted partner. We offer company registration and business license services to smooth the transition and maximize your success.