Debt Equity Swap
Strengthen your balance sheet without a cash injection. We manage the complex legal conversion of intercompany loans into company shares, optimizing your “Debt-to-Equity” ratio and improving your tax standing.
- Balance Sheet Optimization: Instant improvement of financial health ratios.
- Tax Efficiency: Resolving "Thin Capitalization" risks.
- Strategic Financing: Converting parent company support into permanent equity.
About
A Debt Equity Swap (DES) is a sophisticated corporate action where a company’s debt is converted into shares. This is common for PT PMAs that have received significant “Shareholder Loans” from their HQ. We manage the legal resolutions, the valuation requirements, and the amendment of the Notarial Deed to reflect the new capital structure.
Why Choose Our DES Service?
In 2026, the Indonesian Tax Office (DJP) closely monitors Debt-to-Equity Ratios (DER). A DES is a powerful tool to bring your company into compliance. We ensure the process follows the Company Law requirements for “Capital Increase without Cash” (Pre-emptive rights).
Benefits of Our Service
Improved Credit Rating: A better balance sheet for local bank loans.
Regulatory Compliance: Meets BKPM’s requirements for realized investment.
Interest Savings: Stops the accrual of interest on intercompany debt.
FAQ for Debt Equity Swap
Is it allowed for PT PMAs?
Do we need an Independent Valuer?
What is the impact on Tax?
Does it require a Shareholder Meeting?
Can we swap debt into "Agio" (Share Premium)?
Does the NIB change?
What is the maximum Debt-to-Equity ratio?
Can third-party debt be swapped?
How long does the process take?
Do we need a Circular from the OJK?
Country Lead / M&A Indonesia Operation
Other Services
Close your business the right way. We manage the entire liquidation and dissolution lifecycle—from appointing the Liquidator to the final “Deletion” from the Ministry of Law—ensuring all debts are cleared and assets distributed legally.
- Full Asset Disposal: Managed legal distribution to shareholders.
- Creditor Management: Mandatory announcements and dispute resolution.
- Official Dissolution: Final "Deletion of Entity" (Penghapusan) from all state registers.
Protect your intellectual property and commercial interests. We draft and review high-level service agreements—from management fees to technical assistance—that are legally sound and compliant with Indonesian tax and labor laws.
- Intercompany Precision: Structuring "Management Service Agreements" for TP.
- IP Protection: Clear clauses for trademarks, trade secrets, and software.
- Dispute Avoidance: Jurisdiction and arbitration clauses that protect you.
Keep your corporate structure agile. Whether changing directors, shifting address, or increasing capital, we manage the formal “Akta Perubahan” process to ensure your changes are legally recognized by the state.
- Official Notary Network: Direct access to trusted Indonesian Notaries.
- Fast Approval: Rapid AHU (Ministry of Law) validation.
- Data Synchronization: Automatic updates to your OSS and Tax profiles.
Fulfill your mandatory annual requirement with zero stress. We manage the preparation, documentation, and reporting of your AGMS, ensuring your directors’ liability is discharged and your records are pristine.
- Seamless Minutes: Professional drafting of the "Notulen" (Minutes).
- Seamless Minutes: Professional drafting of the "Notulen" (Minutes).
- Filing Compliance: Mandatory reporting to the Ministry of Law.
Start your Indonesian journey with total confidence. We handle the end-to-end setup of your legal entity—from Deed of Establishment to NIB activation—ensuring you are “Open for Business” in record time.
- Rapid Entry: Optimized workflow for the OSS-RBA system.
- Correct KBLI Selection: Precise mapping to ensure your licenses are valid.
- Bank-Ready Setup: Assistance with initial capital account opening.
WTC 5, 12th floor. Jl. Jenderal Sudirman No.Kav. 29-31, RT.8/RW.3, Kuningan, Karet, Kecamatan Setiabudi,
Kota Jakarta Selatan, Daerah Khusus Ibukota
Jakarta 12920
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