Transferring the ownership of a company based in Indonesia is a complex process which must be completed very carefully in order to avoid any possible problems from taking place. Ownership of an Indonesian company is in the form of shares. Thus, when shareholders transfer ownership of their shares, they are actually transferring a part of their rights to the company’s ownership.
Before the share transfer may begin, a Sales and Purchase Agreement must be signed. Many company owners in Indonesia incorrectly believe that this step signals the end of the transfer of share ownership; however, such is definitely not the case. At this point, share ownership of the Indonesian company has not yet been completely transferred to the new shareholder.