Author: Felicia Cindy Hanubrata “Holding companies and venture capital are permitted activities for foreign direct investment; however, their activities, requirements and conditions for their establishment vary.” Holding Company, its establishment and permits A holding company is a company that controls the assets of a group of subsidiary companies. Their main activity is ownership of the […]
Renewable Energy in Indonesia
Author: Kristalia Andiani Puteri and Felicia Cindy Hanubrata ” The current laws primarily focus on using renewable energy as sources of electrical power and fuel (bioenergy). Under the new regime, investment in the energy and power plants sector is 100% open to foreign capital investment”. The concept of renewable energy was introduced in Law No. […]
Employee Termination Due to Company’s Acquisition
“Conducting an acquisition may result in employee termination. As the result of the termination of an employee for the company’s acquisition, the company shall give severance pay, tenure awards, and compensation per enacted law and regulation. Uniquely, there are conditions when the acquisition leads to changes in the work requirements, and the employee does not […]
Holding Director Positions in Multiple Companies
“The board of directors has a significant role as one of the company’s organs. Therefore, to avoid conflict of interest and monopolistic practices, some regulations prohibited for holding dual director positions in multiple companies.” Company can be defined as legal entity that can carry out legal actions. However, in its implementation, the Company acts represented […]
Update on Investor Staying Permit and Impacts on Corporate Matters (Part 1): Potential Acquisition Process
“Upon the new regulation concerning the Investor ITAS, foreign investors must invest IDR 10 billion to have staying permit in Indonesia. It can possibly result in inadvertent acquisition process for companies.” In August 2023, the government of Indonesia has promulgated a new regulation in which it is stated that the requirements for a foreign investor […]
Knowing the Directorship Agreement in Indonesia
“As one of the company’s organs, the tasks of the Board of the Directors are determined by the Articles of Association of the company, and if needed, they may engage in the Directorship Agreement.” Limited-Liability Company (“Company”) can be defined as a legal entity that take form of a capital partnership and established based upon […]
Director’s Role and Duties in Indonesia
“In the dynamic business environment of Indonesia, a director plays a pivotal role in the future of a limited liability company. Directors are entrusted with significant responsibility in the governance and management of the company. Thus, directors must adhere to their duties and responsibilities.” Regulated by Law No 40 Year 2007 on Limited Liability Companies […]
Reasons and Procedure for Annulment of Arbitral Award
An application to annul an arbitral award may be made if the award is alleged to contain the following elements: (a) letters or documents submitted in the hearings which are admitted to be forged or are declared to be forgeries after the award has been rendered; (b) documents are found after the award has been […]
Regulatory Sandbox in the Digital Finance Innovation Company
“The Financial Services Authority (“OJK”) organizes the regulatory sandbox mechanism to ensure the business model includes its legal compliances and financial aspects meet the Digital Finance Innovation criteria as stipulated in the Financial Services Authority Regulation No. 13/POJK.02/2018 concerning Digital Finance Innovation. ” The development of Information and Technology has had a significant impact, especially […]
Procedure for Amendment of Articles of Association
“Amendments to the Articles of Association must be stipulated in the General Meeting of Shareholder (“GMS”) and made in the form of a notarial deed in Indonesian. Further, the amendment shall obtain approval or acknowledgement from the Minister of Law and Human Rights, depending on type of the agenda as stated in Law 40/2007.” Based […]
