To encourage entrepreneurship, creativity, and innovation, the government now provides opportunities for civil servants (PNS) to participate in business ventures. This is supported by new regulations that revoke previous prohibitions.
However, there are still several legal provisions that must be adhered to. This article will discuss the legality of civil servants establishing a Limited Liability Company (PT), the requirements, and how vOffice services can assist you.
Read Also: Who Can Establish a Limited Liability Company (PT) in Indonesia?
Legal Basis for Civil Servants Establishing a PT
With regulatory changes, civil servants are allowed to establish a PT as long as they comply with applicable rules. The relevant legal bases include:
- Government Regulation No. 94 of 2021 on Discipline for Civil Servants.
- Law No. 20 of 2023 on State Civil Apparatus.
- Law No. 6 of 2023 on the Ratification of Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation.
Previously, the prohibition on establishing companies was stipulated in Government Regulation No. 30 of 1980, but this has now been revoked. The new regulations open opportunities for civil servants to engage in entrepreneurship, provided they adhere to good governance principles.
Read Also: Limited Liability Company Law: Legal Basis for Establishment and Operations
Requirements for Civil Servants to Establish a PT
Here are the main requirements for civil servants who wish to establish a PT:
- Comply with Legal Provisions: Civil servants must conduct business according to the fundamental norms, code of ethics, and code of conduct as per the State Civil Apparatus Law and Civil Servants Discipline Regulation.
- Prioritize State Duties: The business must not interfere with their primary responsibilities as state officials.
- Avoid Conflicts of Interest: Civil servants must not use their official authority for personal, familial, or group interests.
- Obtain Permission from the Institution: Official permission from superiors or relevant institutions is mandatory before establishing a company.
- Report Wealth: Civil servants are required to periodically report their assets in accordance with Government Regulation No. 94 of 2021.
Read Also: Requirements for Establishing a PT
Prohibited Actions to Adhere To
Although civil servants are allowed to establish a PT, they must avoid the following prohibited actions:
- Abusing authority.
- Acting as intermediaries for personal gain.
- Engaging in activities detrimental to the state.
- Taking actions leading to conflicts of interest.
Read Also: How to Establish a PT: Step-by-Step Guide
Easy PT Establishment with vOffice
To simplify the PT establishment process, you can utilize PT Company Registration Services from vOffice. With flexible service packages, vOffice offers:
- Free Consultation
- Virtual Office Packages
- PT Name Checking
- Bank Account Opening
- EFIN Number
- Decree from the Ministry of Law and Human Rights
- Business Identification Number (NIB) and Taxpayer Identification Number (NPWP)
- Company Domicile Certificate (SKT)
These services are designed to help you focus on business growth without worrying about legalities.
Civil servants now have the opportunity to establish PTs in accordance with applicable regulations. However, it is crucial to comply with legal requirements, maintain integrity, and prioritize state duties. With comprehensive support from vOffice, the PT establishment process becomes easier, more efficient, and professional.
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If you are planning to start or grow your business, you can rely on vOffice services. Our professional team is ready to assist with various business needs, such as:
- Establishment of Limited Liability Company (PT)
- Establishment of Commanditaire Vennootschap (CV)
- Haki / Indonesia trademark registration
- Tax Consultation
- Virtual Office
- Office Space for Rent
- Meeting Room Rental
- Rent a coworking space
- and various other services.
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