224 pages | 15 B/W Illus.
In modern countries, a company is commonly categorized as either public or privately-held, depending on whether securities are publicly traded on the open market, into a government-owned company or private company depending on government ownership, or a financial company or non-financial company depending on its main business, and so on. Of course, these categories are generally used in Indonesia as well. A unique aspect in Indonesia is that a well-settled legal practice mainly uses a dichotomy of company types that is rarely popular in foreign countries: a company with foreign direct investment (penanaman modal asing, or PMA) or company with 100% domestic direct investment (penanaman modal dalam negeri, or PMDN). Government plans concerning how to differently regulate these companies frequently becomes a national issue, as it is one of the main standards to evaluate how effectively and willingly the Indonesian government develops its economic policies. Laws, regulations, and actual legal practice also treat the two types of companies differently, based on whether a company has a foreign shareholder. Although many foreign countries are also equipped with similar regulations over companies with foreign direct investment, Indonesia distinctively applies this dichotomy for much wider uses for several reasons.
This book is designed to assist students, practitioners, and researchers with clear and comprehensive treatment of key concepts in Indonesian company law. Significant business, economic, and policy issues are highlighted together with a thorough analysis of the important statutory provisions and cases used in the study of Indonesian company law. The book includes the major theoretical approaches used in current company law literature and statutory issues are covered under both the 2007 Indonesian Company Act and the 2007 Indonesian Capital Investment Act. The book will be an essential reference for investors and businesses contemplating entering the Indonesian Market.
3. PMA Specifics
5. Shareholders’ Meeting
6. Board of Directors and Board of Commissioners
7. Operation of Company
8. Material Change of Company
9. Capital Investment Act
The credit crunch of 2007 and the ensuing financial crises have led to a renewed interest in the place of corporations in the modern world and the role of law and regulation in governing their behaviour. This series looks to survey the current developments within the field of corporate law as well as mapping out future opportunities for change. The series offers a comparative approach to the subject, looking not just at North America and Europe but also at the state of affairs elsewhere in the world. Written by influential scholars, the books offer thought-provoking and often critical analyses of corporate law. The functions and legal obligations and rights of multiple stakeholders including directors, investors, governments and regulators are examined from both empirical and theoretical standpoints. Whilst being grounded in law the series also draws upon research from the disciplines of economics, management studies, sociology and politics in order to explore the implications of corporate law in their wider social and economic context.