Aside from annual tax filings and the annual financial reports, companies in Indonesia, including both local company and PMA Company, has the obligation to submit an Annual Report pursuant to the Indonesian Company Law. Learn more regarding what the obligation entails and how to do it.

Pursuant to Article 66 (1) of Law No. 40 of 2007 concerning Limited Liability Company (“Company Law”) the Board of Directors of a company has the obligation to submit an Annual Report to the General Meeting of Shareholders (“GMS”). The GMS where the submission itself is conducted is called the Annual General Meeting of Shareholders (“AGMS”).


The Annual Report itself, pursuant to Article 66 (2) of Company Law, must consist at least of the following contents:

  1. The Financial Report consisting of the following items:
    1. The Balance Sheet of the latest Financial Year in comparison with the previous year;
    2. Profit and Loss Statement;
    3. Cash Flow Report;
    4. Statement of changes in company Equity; and
    5. Notes to the Financial Report.
  1. A Report on the Company Activities in the latest Financial Year;
  2. A Report on the implementation of Corporate Social and Environmental Responsibility (CSR) by the Company;
  3. Details of issue/problems which occurs during the latest Financial Year which has affected the Company business activities throughout the year;
  4. A Report on the supervisory tasks that have been performed by the Board of Directors during the previous financial year; and
  5. The names of the members of the Board of Directors and the Board of Commissioners, as well as the salaries of each member, including any allowances and/or benefits each of them, has received in the latest Financial Year


As previously explained that the Board of Directors obligated to make Annual Report, and submits the Annual Report to the Board of Commissioners to be verified and approved.

After the Board of Commissioners gives its approval, the Board of Directors is responsible to held the AGMS for presented the Annual Report before the shareholders of the Company to be approved. Please be informed that the AGMS can be approved though Extraordinary GMS (EGMS) or by Circular Resolution of Shareholders.


An Annual Report must be conducted and approved at the latest 6 (six) months after the end of the latest Financial Year.

Any lateness in a submission of Annual Report is the responsibility of the Board of Directors, and the members of the board can be hold jointly and severally liable to any party that suffers losses due to their negligence in submitting an annual report. However, the Company Law does not set any applicable sanctions for the Board of Directors who fail to submit an Annual Report in a Financial Year to the GMS.

Commonly Indonesian company Financial Year is 1 January to 31 December, however, the company may change the Financial Year to follow the head quarter Financial Year. Please read our related link regarding the Financial Year.


To ensure a smooth investment and business operation from the legal perspective, but also still focus on maintaining your business in Indonesia and reach your revenue target, it is advised for you to find capable and trusted lawyers or legal consultants for advice and assistance in ensuring your legal compliance with prevailingtrading laws and regulations.

SMART Consulting is an Indonesian Corporate Legal Services firm. We have assisted local and multinational companies in handling their corporate legal matters, including matters related to company annual obligations, such as preparing shareholders general meetings and resolutions, as well as acting in a legal advisory capacity for the company.

Contact Us Now to get your legal solution for your business goals, and still comply with the prevailing laws and regulations.
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