4 Feb

Along with the times, especially in this globalization era, the Indonesian government to open a big opportunity for foreign investors, whether individual or foreign legal entities to invest their assets in the territory of the Republic of Indonesia.

1. About the Business Sector in Capital Investment

Foreign Investments is investing activities to do business in the territory of the Republic of Indonesia by Foreign Investors, using either wholly foreign capital and joint venture with domestic investors (Article 1, point 3, Presidential Regulation No.76 Year 2007 on the Criteria requirements and preparation of business fields closed and open with the requirements for capital investment).

Furthermore, in this Presidential Regulation also explained about the meaning of foreign capital investment that is a foreign national, entity, and / or foreign government makes an investment in the territory of the Republic of Indonesia.

The basic principle the determination of closed business field and opened as follows (Article 6):

  1. Simplification, limited to the field of business related to the national interest so that a small part of each economic sector;
  2. Compliance with agreements / international commitments, must not conflict with Indonesia’s obligations contained in treaties ratified international commitments;
  3. The principle of transparency, should be clear, detailed, can be followed, and not multiple interpretations, and based on certain criteria;
  4. Legal certainty, can not be changed except by Presidential Decree;
  5. Territorial integrity of Indonesia, did not inhibit the free flow of goods, services, capital, human resources and information within the unitary Republic of Indonesia territory.

Sectors that are closed to investment, both foreign and domestic determined based on health criteria, weakness, defense and security, environment and capital / culture (K3LM) and the national interests of the nation. (Article 8 of Presidential Regulation No.76 of 2007).

While the business field is open with the requirements of specific business sectors that can be cultivated in investment activities with the specific requirements of business sectors that are reserved obedient to UMKMK, business fields that require the partnership, business fields that require the ownership of capital, business field required with certain locations, and business fields that require special licensing (Article 2 of Presidential Decree No.77 of 2007).

Business field of national education sector, namely primary, secondary and higher education, including in the areas of business are open to foreign investor in Indonesia with foreign capital ownership limits the maximum 49 percent, it announced in the appendix lists Business Fields Open in Presidential Regulation No.77 of 2007 concerning the list of closed business field and opened business field with requirement for capital investment).

In the Act No.09 Year 2009 on Legal Education was also described in Article 1 that “the Agency providers of education law, hereinafter referred to as BHP Organizer is a foundation, association, or other similar legal entity which has organized a formal education and are recognized as legal entities education “but once the words” other similar legal entity “in the article that described further in the explanation that the reference is a social organization which was established by Law No. 8 of 1985 on the societal”. In this law does not mention clearly regarding the legal education providers by foreigners / foreign legal entity. However, other wills of the Constitutional Court, with DECISION NUMBER 11-14-21-126 and BHP Law 136/PUU-VII/2009 who canceled because it was considered contrary to the 1945 Constitution. Ministry of National Education (Events Calendar) Government Regulation No. 66 of 2010 as a substitute for Legal Education Act (Act BHP), which revoked the Constitutional Court (MK) and officially implemented after its adoption on 28 September 2010. The birth of this regulation is a consequence of the Constitutional Court to cancel the mandate BHP Law last March.

2. About the Foundation Foreign

Law No.16 of 2001 concerning the Foundation in article 69 paragraph 1 states that “a foreign foundation which is not a legal entity to conduct its activities in the territory of the Republic of Indonesia, if the foundation’s activities are not harmful to society, nation and state.” Was reaffirmed in the PP No.63 of 2008 concerning regulations implementing the law on the foundation of article 10 paragraph 1 of “Alien or Alien with Indonesian People to establish the Foundation in accordance with the provisions of the Act and this Government Regulation.”

Article 4 and 7 of Government Regulation No.63 of 2008 explained that the initial wealth foundation founded by foreigners (or foreign legal entities) or foreigners with people of Indonesia, who came from the separation of personal property, at least around Rp.100, 000,000, – (one hundred million rupiahs), and the separation of property that must be proved by a declaration by the founder of the validity of such property and evidence that are part of the foundation’s financial documents. Foreign foundations that have activities in Indonesia are generally moving in the field of education and ability.

Foundations, associations or other similar legal entity which has organized a unit of the educational unit of primary education, secondary education and / ata higher education is recognized as BHP Operator stated in Article 8 paragraph (3) still in the same Act. Other similar legal entities include social organizations established pursuant to Act No. 8 of Community Organisations. Education is the government, local governments establish atu community education legal entity while the Education Unit is a group that organizes educational educational services.

In section 15 Kepmendiknas No.24/U/2000 about guidelines for the establishment of higher education states that:

Requirements for the establishment of Private Universities (PTS) by the Board of Private Higher Education Providers (BP-PTS) other than stated in Article 4 to Article 12 involves the following requirements: a. BP-PTS recorded in the local District Court; b. There is a guarantee of sufficient funds to

1. implementation of education programs for four years for colleges and polytechnics;

2. Implementation of education programs for six years for high school, institutes and universities.

(2) Establishment of Private Universities by BP-PTS with foreign participation, in addition must meet the requirements referred to in paragraph (1), must meet the following requirements:

a. Mix of national and foreign presence in the management of BP-PTS;

b. Support from universities abroad who are accredited in their country in the form of:

1. management support, the support operations in academic and administrative management of private               universities to be established;

2. faculty support, by placing an experienced lecturers from universities overseas parent at least 7 (seven) years for graduate programs / postgraduate degree and 5 (five) years for diploma program.

copyright : nova sayaka situmeank

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Republic of Indonesia



  1. vita February 8, 2011 at 10:06 am #


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