How to Legally Choose a Company Name in Indonesia?

Published September 16, 2020 · Updated October 19, 2026

What Should You Know Before Reserving a PT Name in Indonesia?

Will your proposed company name pass AHU screening and still support the brand you plan to use in Indonesia? An approved name must be stated in the incorporation deed within 60 days of ministerial approval, or the approval lapses.

In this guide, we explain the reservation process, the legal rules that make a PT name acceptable, and the checks worth completing before a proposal is submitted through a notary in Indonesia.

Choosing a Legal PT Name: Major Considerations

A legally usable name must clear Ditjen AHU screening, carry the PT designation, and follow language rules that depend on ownership.

The substantive naming rules are set by Indonesia's Company Law and Government Regulation No. 43 of 2011. Minister of Law Regulation No. 49 of 2025 governs the current electronic PT establishment procedure through SABH. A proposal that misses any of the four points below may be rejected during the SABH process submitted through a notary.

1. Follow AHU’s Three-Word System Practice

Government Regulation No. 43 of 2011 does not set a minimum number of words for a PT name. The binding tests focus on Latin letters, distinctiveness, permitted content and, where applicable, the language required by ownership.

A three-word format is commonly used as a practical convention, but it is not a statutory eligibility rule. Ask the notary handling the SABH filing to test the proposed name and keep alternative names ready.

2. Use ‘PT’ Before the Registered Name

"PT" stands for Perseroan Terbatas, the limited liability company form in Indonesia. Once a proposal is approved, every legal document about the company carries "PT" before the official name.

The designation does not count toward the three-word practice described above. A name such as "Karya Digital Indonesia" remains a three-word name, registered legally as "PT Karya Digital Indonesia".

The PT form is only one option available to founders. Our overview of Types of Business Structures in Indonesia compares it with the alternatives.

3. Local Businesses Must Be Named in Bahasa Indonesia

Article 11 of Government Regulation No. 43 of 2011 requires a PT whose shares are entirely held by citizens of Indonesia or legal entities of Indonesia to use Bahasa Indonesia for its legal name.

This is an ownership-based test, not a rule based on the business field or a founder’s residence. A wholly Indonesia-owned PT should therefore prepare a Bahasa Indonesia legal name that also meets the separate AHU requirements on Latin letters, distinctiveness, and prohibited content.

There is a limited language exception under Article 36 of Presidential Regulation No. 63 of 2019. Where an enterprise name has historical, cultural, customary, or religious value, it may use a regional or foreign language written in Latin letters.

4. A PT PMA Can Be Named in English or Another Language

PT PMA means a limited liability company with foreign investment. Because Article 11 of Government Regulation No. 43 of 2011 applies only where all shares are held by citizens of Indonesia or legal entities of Indonesia, a PT PMA is outside that specific language condition. It may propose an English or other foreign-language name, provided the name uses Latin letters and meets every other AHU requirement.

Foreign-investment eligibility, capital, and investment-value requirements are separate from name approval and should be assessed before incorporation. Our guide on the minimum capital of a PT PMA in Indonesia explains these requirements.

Other Naming Considerations for a Company in Indonesia

A proposed legal name must use Latin letters, be sufficiently distinct, avoid prohibited references and formats, and comply with the ownership-based language rule.

Government Regulation No. 43 of 2011, Article 5 sets the core AHU eligibility criteria. A proposal can be refused if it fails any of the following checks:

• It is not written in Latin letters.
• It is already lawfully used by another PT or is the same in essential respects, including a confusingly similar spelling or sound.
• It conflicts with public order or decency.
• It is the same as or similar to the name of a state institution, government institution, or international organisation without permission.
• It consists only of numbers, a series of numbers, or letters that do not form a word.
• It has the meaning of a PT, other legal entity, or civil partnership.
• It consists only of the PT’s objects, purposes, or business activities.
• It uses a business activity as part of the name without matching the PT’s stated objects, purposes, and activities.

What Should You Check Before Submitting a Proposed Name?

Run availability, similarity, language, and trademark checks first, because every failure caught early saves a rejection cycle.

AHU approval and trademark clearance are separate checks. Before submitting a proposal, review the proposed legal name against the AHU criteria and search the Directorate General of Intellectual Property’s PDKI trademark database for relevant marks.

The checklist below is designed for completion before a notary submits the formal name-reservation request through SABH. An availability result is useful screening, but only the ministerial decision on a complete submission confirms approval.

Step 1: Run an AHU Availability Search

The legal entity database can be searched through the Ditjen AHU online portal. Availability checking itself is free of government charge in 2026. Proposals that return a direct match are dropped before submission.

Step 2: Screen for Similar-Sounding Names

1. Check for similarity, not only an exact match, because similarity can trigger refusal.
2. Treat prominent similarities in writing or pronunciation as names that are the same in essential respects under the explanation to Article 5 of Government Regulation No. 43 of 2011.
3. Compare the proposal’s spelling, spacing, pronunciation, and distinctive elements against existing PT names.
4. Do not rely on a minor variation, because it may not be enough to distinguish the name.

Step 3: Search the Trademark Register

1. Remember that AHU name approval gives no brand rights.
2. Search the Directorate General of Intellectual Property (DJKI) register for identical or similar marks in the relevant product or service class.
3. Treat trademark registration under Law No. 20 of 2016 on Marks and Geographical Indications as a separate clearance step.

Step 4: Verify Language and Alphabet Rules

1. Confirm that the proposal uses Latin letters only.
2. Confirm Bahasa Indonesia where all shares are held by citizens of Indonesia or legal entities of Indonesia, unless the limited historical, cultural, customary, or religious exception applies.
3. For a PT PMA, confirm that any foreign-language wording still meets the Latin-letter rule and every other AHU criterion.
4. Treat a three-word format as a practical convention if the notary recommends it, not as a minimum word count imposed by Government Regulation No. 43 of 2011.
5. Confirm the "PT" prefix is respected.

Step 5: Prepare Backup Names

Prepare two or three alternatives ranked in priority order. If the first proposal is refused, a backup can be submitted immediately. This keeps the reservation timeline moving without a full restart.

What Happens If Your Proposed Name Is Rejected?

A rejection returns the application. Revise the name or submit a backup, then re-apply through the same Ditjen AHU channel.

Rejections are not penalized, but they cost time. The most common reasons are similarity to an existing entity, prohibited or offensive wording, resemblance to a government agency, or a name that does not reflect the intended business activity. Once the reason is clear, the founder revises the proposal and re-applies through the same channel.

Naming problems overlap with several avoidable issues. For more on this, read our article What Are the Most Common Setup Mistakes Foreign Founders Make in Indonesia? before drafting a proposal.

What Comes After the Name Is Approved?

Approval reserves the name for 60 days, within which the name must be stated in the deed; the application for legal-entity status must be filed within 60 days after the deed is signed.

A reservation is not permanent. Under Government Regulation No. 43 of 2011, the approved name must be stated in the deed of establishment within 60 days of ministerial approval. If the deadline passes, the approval lapses and the name returns to the pool.

After the deed is executed before a notary and the application is filed through SABH, the Ministry of Law grants legal-entity status by ministerial decree. Founders then register for Tax Identification Numbers (NPWP) and obtain the NIB through the Online Single Submission (OSS) system. Name checking is free, but other establishment charges were revised by Government Regulation No. 30 of 2026 with effect from 1 August 2026. Our Indonesia company setup cost breakdown lists what founders pay at each step.

How Does a Legal Name Differ From a Trademark?

A reserved legal name identifies the proposed entity, while a registered trademark protects the brand used in commerce: two registers, two sets of rights.

AHU name approval and trademark registration serve different purposes. Name approval is a required pre-incorporation step for the legal name and does not, by itself, create exclusive rights in a brand used for goods or services.

Trademark rights are assessed separately under Law No. 20 of 2016 on Marks and Geographical Indications. A PDKI search should cover identical and similar marks in the relevant classes before the brand is launched, because a legally approved PT name is not a substitute for trademark clearance or registration.

Where a preferred brand presents trademark risk, consider using a distinct brand, obtaining appropriate permission, or seeking specialist intellectual-property advice before committing to packaging, signage, domains, and marketing.

Conclusion

Choosing a company name in Indonesia is a legal step first and a branding exercise second. The proposal must survive Ditjen AHU screening, carry the PT designation, and respect the language rules tied to ownership. It must also stay clear of existing trademarks so the brand customers see is safe to use.

3E Accounting Indonesia is a Corporate Services Provider supporting startups, SMEs, and multinationals at every stage of incorporation in Indonesia. We help clients run a free name availability check, draft compliant proposals with backup names, and take the project through to the deed, tax registration, and NIB. Founders weighing market entry may also find our guide on Political Challenges of Incorporation in Indonesia useful when planning timing. Contact us to get started.

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