Indonesia welcomes foreign investors  who want to open companies here through various packages of incentives and regulations. They are also granted the same rights as local investors, which means they must abide by the local legislation when it comes to the incorporation of a company in Indonesia.

Business Laws

On August 18, 1945, the Republic did a declaration of its Constitution. At present, the validity of the Commercial Code is based on Article II of the Transitionary Regulation of the Constitution 1945.

In the framework of renewing corporate law in Indonesia, the Department of Justice had drafted of a company bill in 1974. Subsequently, the Department of Justice submitted a new company act bill to the Parliament which will in principle replace articles 36 up to 56 of the ICC and all their alterations, the last being made by Law No. 4 of 1971 concerning the Alteration and Increment of Article 54 of the Commercial Code.

According to the legislators, the enactment of a new company law is vital in the attempt to foster economic and commercial activities in the modern era.

Indonesia’s rapid economic growth and development in the past few years has resulted in its need to established special legal frameworks.

Businesses and entrepreneurs have created sources of income which are beneficial not only for themselves but also for the public at large. In this aspect, the Indonesian Company Law plays a larger than life role. The law regulates the activities of the company in the course of achieving its objective, which is to make profit.

The newly enacted Company Law provides guidance for anybody who is doing business and creates awareness of the rights and obligations, including the awareness of the obligation to conform to public order and good morals.

A good company law will regulate not only the internal relationship between a company and its shareholders, officers, employees but also matters outside of the company such as the protection of creditors and tax obligations in addition to matters that would enhance.