8 Types of Companies in Indonesia Complete with Definitions and Objectives

Kapanlagi.com - Did you know the types of companies that exist? Indonesia has several companies with the best performance and has achieved large and fantastic net income. The largest companies in Indonesia come not only from state-owned companies, but also from private ones. A company is a place where the production of goods or services takes place to be sold to the public with the aim of making a profit. In a company, all factors of production come together, starting from labor, capital, natural resources, and entrepreneurship.

In running their business, there are various types of companies in Indonesia that are divided into two groups. The first group consists of industrial companies, extractive companies, service companies, agrarian companies, and trading companies that fall into companies based on field of business. The second group consists of state-owned companies, cooperative companies, and private companies that fall into companies based on ownership. For easier understanding, here is an explanation of the 8 types of companies in Indonesia:

1. Industrial Company

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The first type of company is an industrial company or commonly known as manufacturing. This company can be interpreted as a company that aims to produce finished or semi-finished goods from available raw materials. Manufacturing refers to the large-scale production of goods that transform raw materials, spare parts, and components into finished goods using manual labor or machines. There are many industrial companies that you can find today.

Indonesia has discovered many active and developing companies because of the rapid development and progress of the times, which is one of the impacts. These emerging industrial companies are the main drivers of the economy of a country. The presence of these industrial companies will facilitate the provision of various products needed by the community and certainly will open up various job opportunities available.

2. Extractive Companies

Extractive companies are business entities engaged in managing natural resources to meet human needs. Extractive businesses directly extract, take, and manage natural resources. These companies directly take goods provided by nature without any prior management or cultivation. Examples of extractive companies include mining, sea fishing, and salt production.

3. Service Companies

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Service companies are companies established by individuals or groups of people whose main activities are in the field of service provision or selling services. There are many examples of service companies that can be found in the surrounding environment, such as motorcycle taxi services, photocopy services, laundry services, and others.

In a company engaged in the service sector, good handling or service towards the provided system is one of the most important elements of the system. By implementing good service systems, good relationships with customers can be built in the long term.

4. Agrarian Company

Agrarian is a type of company that produces goods from natural resources. These natural resources are not immediately taken from nature like extractive companies. However, companies in this field must process and utilize nature, such as cultivating the land properly, in order to obtain natural resources as their output.

This company aims to generate profits by contributing more to society. This contribution comes in the form of well-processed natural resources.

5. Trading Company

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Trading companies are part of everyday life for people, and almost everyone has engaged in transactions with trading companies. Even a small shop in your company complex is considered a trading company. So, a trading company is a company that operates in the field of trading goods, and its main activity is selling goods without altering them in any way.

6. State-Owned Enterprises

State-owned enterprises, commonly known as State-Owned Enterprises (BUMN), are part of the economic activities in the national economy in a democratic economy. State-owned enterprises play an important role in the implementation of the national economy towards the welfare of society. The new legislation on state-owned enterprises is Law Number 19 of 2003 concerning BUMN.

7. Cooperative Enterprises

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Cooperative enterprises are business entities owned and operated by their members to meet common needs in the economic, social, and cultural fields. Cooperatives are run on the principle of mutual assistance. This means that cooperatives are not aimed at benefiting only one person, but achieving common benefits.

8. Private Enterprises

The last type of company is a private company. This type of company is owned and managed by private parties. In Indonesia, there are already a large number of these types of companies and they even have branches throughout Indonesia. In private companies, shares are offered, owned, and traded privately. Private companies generate a significant amount of income in trillions of rupiah and have the best performance with high net profits.

(kpl/dtm)