SHEET COUNTRY
REPUBLIC OF INDONESIA
| No. 36, 1992 | (CULTIVATION OF CAPITAL. The company. Stocks. An explanation in the Additional Gazette of the Republic of Indonesia No. 3476) |
GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA
Number 17 YEAR 1992
ABOUT
STOCK OWNERSHIP REQUIREMENT IN THE PLANTING COMPANY
FOREIGN CAPITAL
PRESIDENT OF THE REPUBLIC OF INDONESIA,
.,,, weighed: that in order to create a climate of effort that could further promote national economic growth and stimulate the interest of foreign investment, is seen to need to establish a shareholding requirement for a company founded. in order of the cultivation of foreign capital;
.,, Given: 1. Article 5 ayal (2) of the Basic Law of 1945;
., 2. Law No. 1 of 1967 on Cultivation Of Foreign Capital (state Sheet 1967 Number 1, Additional Lem-baran State Number 2818) as amended by Law Number 11 of the Year 1970 (State Sheet of 1970 Number 46, Additional State Sheet Number 2943);
DECIDED:
.,, Setting: REGULATION OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA ON THE TERMS OF OWNERSHIP OF SHARES IN FOREIGN CAPITAL PLANTING COMPANIES.
Section 1
Approval in order to plant foreign capital can essentially be granted, if the amount of capital to be implanted is no smaller than US$ 1,000,000.-(one million United States dollars).
Section 2
The company established in the framework of foreign capital cultivation, subsequently called the PMA Company, on the dasamya in the form of a joint venture with the requirement that the shareholding of the Indonesian participants ' share capital in the joint venture At least 20% (twenty-one hundred) of the company's total capital value at the time of the establishment of a joint venture, and increased to at least 51% (fifty-one-one-one hundred) within 20 (twenty) years of the time. The company is commercially produced as set forth in its business permit.
Section 3
.,, (1) the PMA Company may be established with the amount of capital invested in at least US$ 250,000.-(two hundred fifty thousand United States dollars) if meeting one of the requirements as follows:
.,
., a., a. solid works with a direct workforce of at least 50 (fifty) people, and:
.,
.,, 1) at least 65% (sixty-five perhundred) production results for dickspor; or
.,, 2) produce raw materials or helper materials or half-so or components in order to meet other industry needs;
., b. conduct activities in the field of certain services in accordance with applicable laws.
.,, (2) the eligible PMA Company as referred to in paragraph (1) the letter a may be established with the requirement that the ownership of the Indonesian participant's share capital at the time of the company was established at least 5% (five perhundred) of the entire The company's share capital value at the time of its establishment and increased to at least 20% (twenty-one hundred) of the company's total capital value in the term of 10 (ten) years since the company's commercial production as listed in the license of the business.
.,, (3) Modal shares of Indonesian participants as referred to in paragraph (2) are increased again to at least 51% (fifty-one-one-one hundred) of the company's entire share capital value within 20 (twenty) years of the company It's a commercial production.
Section 4
.,, (1) the PMA Company may be established with a share capital which is wholly owned by a foreign participant if it meets one of the requirements as follows:
.,
., a., a. The amount of capital value paid for at least US$ 50,000,000.-(fifty million United States dollars);
., b. located in one of the Propinsi Tier I Irian Jaya, Maluku, East Timor, East Nusa Tenggara, West Nusa Tenggara, South Sulawesi, Southeast Sulawesi, Central Sulawesi, North Sulawesi, East Kalimantan, Central Kalimantan, South Kalimantan, South Kalimantan, East Kalimantan, East Kalimantan, East Kalimantan, East Kalimantan, East Kalimantan, East Kalimantan, South Kalimantan, West Kalimantan, Bengkulu and Jambi.
.,, (2) Within 5 (five) years count since the company is commercial production, at least 5% (five perhundred). From scluruh the value of the company's stock capital was sold to Indonesian citizens or the Indonesian legal entity whose shares are owned by Indonesian citizens or other specific bodies that are treated with the same treatment as Indonesian citizens. As an Indonesian participant.
.,, (3) The owner of a share capital by Indonesian participants as referred to in paragraph (2) is increased to at least 20% (twenty-perhundred) in the term of 20 (twenty) years.
.,, (4) Certain clowns schow referred to in verse (2) are the International Finance Corporation, the Asian Development Bank and the Islamic Development Bank.
Section 5
.,, (1) The PMA Company may also be established with a share capital wholly owned by a foreign participant, on condition:
., a., a. located in the Tied Area;
B. His entire production was for export.
., (2) Within 5 (five) years of the company as referred to in paragraph (1) of commercial production, at least 5% (five perhundred) of the value of the capital value is required to be sold to the Indonesian Citizen or the body laws whose capital shares are owned by Indonesian Citizens or certain bodies given equal treatment with the Indonesian Citizen, as an Indonesian participant.
.,, (3) The warranties and landholdings for the PMA company taking place in the Binding Area are fully done with regard to the provisions of the provisions for the venture in the Binding Area Environment.
Section 6
The provisions as referred to in Section 2, Section 4, and Section 5 apply also to any addition of the company's share capital in order to expand.
Section 7
Aside from the addition of stock capital within its own company, the PMA company could also replant the company ' s profits for:
a. establish a new company; or
., b. buy shares in other companies in Indonesia, both new established enterprises and established companies, which at the time of purchase of such shares the business of the company concerned are not listed in the Business List. It Is Closed To Foreign Investment.
Section 8
In terms of profits the PMA company is used to establish a new PMA company, against the new PMA company fully applicable to the terms of the Indonesian participants ' stock requirements as specified in this Government Regulation.
Section 9
.,, (1) In terms of the profit of the PMA company used to purchase existing shares of the company, the purchase should not cause the ownership of the shares of the Indonesian participant in the company purchased less than 20% (twenty-one hundred) of All the shares of the company's stock capital value purchased.
.,, (2) The owner of a share capital by Indonesian participants as referred to in paragraph (1) is reincreased to at least 51% (fifty-one perhundred) through the sale of the shares concerned by the PMA company in the term of 20 (twenty) years.
.,, (3) The order of the purchase or resale of the shares as referred to in paragraph (2) is governed by the Chairman of the Coordinating Capital Agency.
Section 10
.,, (1) In terms of the profits the PMA company is used to purchase shares of the existing PMA company, the terms of ownership of the shares of Indonesian participants in the purchased PMA company apply to the provisions of this Government Regulation.
.,, (2) the term of the purchased PMA enterprise business permit remains as determined in the permit for the purchased company.
Section 11
Further arrangements of implementation of this Government Regulation are set forth by the Chairman of the Investment Coordinating Agency.
Section 12
With the enactment of this Government Regulation, all decisions of the Chairman of the Board of Coordinating Capital Cultivation regarding the cultivation of foreign capital as opposed to this Government Regulation are declared no longer applicable.
Section 13
This Government Regulation shall come into effect at the specified date.
In order for everyone to know it, order the invitational of this Government Regulation with its placement in the State Sheet of the Republic of Indonesia.
.,, Set in Jakarta
on April 16, 1992
PRESIDENT OF THE REPUBLIC OF INDONESIA
SUHARTO
Promulgated in Jakarta
on April 16, 1992
MENTERI/SECRETARY OF STATE
REPUBLIC OF INDONESIA
MOERDIONO
ADDITIONAL
STATE SHEET RI
| No. 3476 | (Explanation Of State Sheet 1992 Number 36) |
EXPLANATION
Above
GOVERNMENT REGULATION OF THE REPUBLIC OF INDONESIA
Number 17 YEAR 1992
ABOUT
STOCK OWNERSHIP REQUIREMENTS IN
FOREIGN CAPITAL CULTIVATION COMPANY
UMUM
.,, in an effort to further interest and enhance the role of planting foreign capital in development in the economic sphere, the more felt it needs to be a range of policies and measures to realize an adequate climate for planting efforts Foreign capital in Indonesia. One of these, is a clear arrangement and is able to provide legal certainty about the ownership of shares in the company established in the framework of the cultivation of such foreign capital.
., with the background of the thought that's the Rule of this Government being drafted.
.,, Through the settings regarding the ownership requirements of the company as above, the manner and form of foreign capital planting activities obtained a clear directive. Included in it, arrangements regarding when and how the terms must be met when such foreign capital planting efforts will be conducted completely and the entire capital of its stock can be owned by a foreign party.
.,, in order to develop the climate of that effort anyway, the setting in this Government Regulation is attributed to the efforts to increase national potential. This includes both the concerns of economic life-abusers, the business sector, and the increasing capabilities of the national economy.
., more than that, the arrangement of ownership of these stocks has also been associated with the idea of encouraging the implementation of economic activity and growth in general more evenly within the Indonesian region.
SECTION BY SECTION
Section 1
.,, pretty clear.
Section 2
.,, referred to by Indonesian participants is an Indonesian citizen or Indonesian legal entity whose capital is owned by an Indonesian citizen.
The company's total capital value is the base capital of the company.
Section 3
.,, Verse (1)
.,, provided this provision, then one of the terms of the letter a and the letter b must be met.
Verse (2)
.,, pretty clear
Verse (3)
.,, the Government is expected to always provide guidance so that efforts to increase ownership of the shares of the Indonesian participant stock can be realized.
Such guidance also needs to be done in terms of improvement as set in verse (2).
Section 4
.,, Verse (1)
.,, under the terms of the letter b, it is intended to encourage development efforts in the areas of economics in those regions.
Verse (2)
.,, pretty clear
Verse (3)
.,, pretty clear
Verse (4)
.,, pretty clear
Section 5
.,, Verse (1)
., in addition to the terms set forth in Section 4, the possession of the entire share capital by a foreign participant is also possible but in regard to both terms in compliance both at once.
Verse (2)
.,, pretty clear
Verse (3)
.,, pretty clear
Section 6
.,, pretty clear.
Article 7
.,, these Terms of Use govern the possibility of corporate profit usage. In terms of the establishment of a new company the company ' s profit usage may be just one of the components.
But in terms of the purchase of shares of other companies, the PMA company can only use the profits it has.
Article 8
.,, pretty clear.
Article 9
.,, Verse (1)
.,, this provision is intended for the ownership of the shares of Indonesian participants to a fixed-purchased PMDN company to be maintained at a level that allows it to maintain their rights reasonably.
This provision is required, because the purpose of awarding the opportunity for the PMA company to purchase shares of PMDN companies was to assist in the development of business capabilities or to improve the financial conditions of PMDN companies.
Verse (2)
., because the purpose is referred to in paragraph (1), hence the sale mechanism to or repurchase of such shares by the PMDN company.
The term provided is 20 (20) years. In that time, the expected possession of a stake by the Indonesian participants in the purchased company could increase again to at least 51% (fifty-one-one-one hundred).
This provision is provided under Article 2 of this Government Regulation.
Verse (3)
.,, pretty clear
Article 10
.,, pretty clear.
Article 11
.,, pretty clear.
Article 12
.,, pretty clear.
Article 13
.,, pretty clear.
