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Business Law 
Alfira Sari 
Andrian Harianto 
Li Wei Ye 
Micha Paramitha 
Zani Patria Akbar
• Temporary 
permission to 
establish PT.PMA 
What kind entity he has to set up in 
Indonesia, and how to set up that entity? 
IICB 
• Permission to 
build the PT.PMA 
• Permanent 
permission to 
build the PT.PMA 
IICB
How many percent share should 
he have? 
When he decides to make PT, it means that 
he will not be the one who own the 
company because the share will be issued 
to the public. 
If he wants to has control over the 
company, he need to hold the most of 
shares, that means that he should be the 
majority shareholder.
How many percent share should 
he have? 
Majority here means that the power in controlling 
the LLC. Control of company had by the shareholders 
that hold at least 20% of shares or more. This is 
regulated in BAPEPAM regulations No.IX. FI about 
Tender offering. 
And also the regulation also was written on UU no 
40/2007 about Limited Liability Company (P.T) 
But, in this case he needs to hold more than 50% of 
shares to avoid the possibility of company taken over 
by the other investors.
How to protect his property of 
his company? 
Car industry is very competitive, so 
every single invention in technology 
should be protected. 
After he proposes the patents to Director 
General and it is being announced, 
means that his intellectual property have 
been protected under law. ( UU no 14, 
2001 about patents )
Protection of Foreign Investor 
Capital 
Based on UUPM No.25/2007 Art.6, 
protection to foreign investor without 
discrimination of regions. In UUPM 
No.25/2007 Art.32 to solve any dispute 
between foreign investor and local investor 
or government by deliberation and 
consensus. If it cannot be accomplished, 
arbitration is the alternative or bring it to 
the court.
How to protect his property of 
his company? 
Since he is a foreign investor, he cannot 
own the land but he only can build a 
building for the business. The regulations 
have been regulated in UUPA Art.41 and 42 
about Hak Guna Bangunan or HGB ( Right to 
Build ). 
So his rights to use or build a building is 
being protected under law. But he has a 
duty to the owner of land.
4. How about the employment? 
• Mature. Accordance with UU is 21 Years old 
• Can be both Indonesian and foreigner. Foreign 
workers can be employed only for certain position 
and certain time 
• Labor must be paid based on UMR 
• The wage for those who can’t work because some 
reason, it will be paid based on UU 13/2003 ps. 93 
(3) 
• Labor allowed to create labor union
Prohibitions 
• Prohibit to employ the female labor in the pregnant 
condition at night shift 
• No discrimination (gender, RAS, etc) 
Terms and Conditions 
• For female labor that work in the morning (23.00- 
07.00) should be given nutritious food and safety while 
at work 
• For labor that come and go for work between 23.00- 
05.00 should be given shuttle transport facilities 
• Overtime work is only allowed for 3 hours/day or 
14hours in a week
How to solve dispute with 
employee and employee union? 
There are 4 ways to solve this problem: 
Mediation 
Conciliation 
Arbitration 
There are 4 types: 
1. Dispute of Rights 
2. Disputes of Interest 
3. Disputes Layoffs 
4. Disputes between Labor Unions 
Industrial Relations Court and the Supreme 
Court
How to solve up dispute with 
government of republic 
Indonesia? 
• Conciliation is set forth in Chapter Three of 
the ICSID Convention and the Rules of 
Procedure for Conciliation Proceedings 
(Conciliation Rules). 
• Arbitration is set forth in Chapter Four of the 
ICSID Convention and Rules of Procedure for 
Arbitration Proceedings (Arbitration Rules).

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Business Law Final Presentation - Foreign Investment in Indonesia

  • 1. Business Law Alfira Sari Andrian Harianto Li Wei Ye Micha Paramitha Zani Patria Akbar
  • 2. • Temporary permission to establish PT.PMA What kind entity he has to set up in Indonesia, and how to set up that entity? IICB • Permission to build the PT.PMA • Permanent permission to build the PT.PMA IICB
  • 3. How many percent share should he have? When he decides to make PT, it means that he will not be the one who own the company because the share will be issued to the public. If he wants to has control over the company, he need to hold the most of shares, that means that he should be the majority shareholder.
  • 4. How many percent share should he have? Majority here means that the power in controlling the LLC. Control of company had by the shareholders that hold at least 20% of shares or more. This is regulated in BAPEPAM regulations No.IX. FI about Tender offering. And also the regulation also was written on UU no 40/2007 about Limited Liability Company (P.T) But, in this case he needs to hold more than 50% of shares to avoid the possibility of company taken over by the other investors.
  • 5. How to protect his property of his company? Car industry is very competitive, so every single invention in technology should be protected. After he proposes the patents to Director General and it is being announced, means that his intellectual property have been protected under law. ( UU no 14, 2001 about patents )
  • 6. Protection of Foreign Investor Capital Based on UUPM No.25/2007 Art.6, protection to foreign investor without discrimination of regions. In UUPM No.25/2007 Art.32 to solve any dispute between foreign investor and local investor or government by deliberation and consensus. If it cannot be accomplished, arbitration is the alternative or bring it to the court.
  • 7. How to protect his property of his company? Since he is a foreign investor, he cannot own the land but he only can build a building for the business. The regulations have been regulated in UUPA Art.41 and 42 about Hak Guna Bangunan or HGB ( Right to Build ). So his rights to use or build a building is being protected under law. But he has a duty to the owner of land.
  • 8. 4. How about the employment? • Mature. Accordance with UU is 21 Years old • Can be both Indonesian and foreigner. Foreign workers can be employed only for certain position and certain time • Labor must be paid based on UMR • The wage for those who can’t work because some reason, it will be paid based on UU 13/2003 ps. 93 (3) • Labor allowed to create labor union
  • 9. Prohibitions • Prohibit to employ the female labor in the pregnant condition at night shift • No discrimination (gender, RAS, etc) Terms and Conditions • For female labor that work in the morning (23.00- 07.00) should be given nutritious food and safety while at work • For labor that come and go for work between 23.00- 05.00 should be given shuttle transport facilities • Overtime work is only allowed for 3 hours/day or 14hours in a week
  • 10. How to solve dispute with employee and employee union? There are 4 ways to solve this problem: Mediation Conciliation Arbitration There are 4 types: 1. Dispute of Rights 2. Disputes of Interest 3. Disputes Layoffs 4. Disputes between Labor Unions Industrial Relations Court and the Supreme Court
  • 11. How to solve up dispute with government of republic Indonesia? • Conciliation is set forth in Chapter Three of the ICSID Convention and the Rules of Procedure for Conciliation Proceedings (Conciliation Rules). • Arbitration is set forth in Chapter Four of the ICSID Convention and Rules of Procedure for Arbitration Proceedings (Arbitration Rules).

Editor's Notes

  1. IICB : Indonesia Investment Coordinating Board