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PP 17-1992 Text copy _?.
Back COUNTRY SHEET Republic of INDONESIA No. 36, 1992 (CAPITAL INVESTMENT. The company. Stocks. Additional explanation in the State Gazette of the Republic of Indonesia Number 3476) GOVERNMENT REGULATION of the REPUBLIC of INDONESIA number 17 in 1992 ABOUT the TERMS of OWNERSHIP of SHARES in a FOREIGN CAPITAL INVESTMENT COMPANY of the PRESIDENT of the REPUBLIC of INDONESIA, Considering: that, in the framework of the creation of a better business climate encourages the growth of the national economy and stimulate foreign investment interest, viewed the need to set the terms of ownership of shares in companies established in the framework of foreign investment;
.,, Considering: 1. Article 5 surefire (2) of the Constitution of 1945;
., ,2. Law number 1 of 1967 concerning Foreign Investments (State Gazette number 1 of 1967, Extra Glue-baran country number 2818), as amended by law number 11 of 1970 (State Gazette Number 46 of 1970, Supplement Sheet country number 2843);
DECIDED:.,, set: GOVERNMENT REGULATION of the REPUBLIC of INDONESIA on the TERMS of OWNERSHIP of SHARES in a FOREIGN CAPITAL INVESTMENT COMPANIES.
Article 1 approval of the foreign investment in order to basically be granted, if the amount of capital that will be embedded not less than US $1,000,000.-(one million United States dollar).
Article 2 of the companies established in the framework of the foreign investment Company henceforth, PMA, at dasamya-shaped joint venture with capital stock ownership requirements that participants of the joint venture in Indonesia to at least 20% (twenty-perseratus) of the entire share capital of the company's value at the time of the establishment of the joint venture, and is increased to at least 51% (fifty one perseratus) within 20 (twenty) years counted since the company producing commercially as stated in the permit.
Section 3.,, (1) PMA Company can be established with the amount of capital invested at least US $250,000.-(two hundred and fifty thousand United States dollars) if it meets one of the following requirements:.,,.,, a. labor-intensive with the number of direct labor of at least 50 (fifty) people, and the:.,,.,, 1) is at least 65% (sixty-five perseratus) produced for dickspor; or., .2) produces the raw materials or ingredients helper or intermediate goods or components to meet the needs of other industries;
.,, b. undertake activities in the field of business specific services in accordance with the legislation in force.
.,, (2) the company PMA qualified as mentioned in paragraph (1) letter a can be established with capital stock ownership requirements that participants of Indonesia at a time when the company was founded at least 5% (five perseratus) of the entire share capital of the company's value at the time it was founded and is increased to at least 20% (twenty perseratus) of all the value of the company's share capital for a period of 10 (ten) years counted since the company producing commercially as stated in the permit.
.,, (3) share capital Indonesia participants mentioned in paragraph (2) was upgraded again into at least 51% (fifty one perseratus) of the entire share capital of the company value within 20 (twenty) years counted since the company produce commercially.
Section 4.,, (1) PMA Company can be established with capital stock which is entirely owned by foreign participants if it meets one of the following requirements:.,,.,, a. total value paid up capital of at least US $50,000,000.-(fifty million United States dollar);
.,, b. is located in one of the Provincial level I areas of 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, West Kalimantan, Sumatra and Jambi.
.,, (2) within 5 (five) years counted since commercial production company, at least 5% (five perseratus). from scluruh the value of the share capital of the company was sold to citizens of Indonesia or Indonesia who are legal entities wholly owned capital citizen of Indonesia or certain other agencies are given the same treatment by a citizen of Indonesia Indonesia as a participant.
.,, (3) the possession of capital stock by Indonesia participant referred to in subsection (2) is increased to at least 20% (twenty perseratus) in a period of 20 (twenty) years.
.,, (4) scbagaimana certain bodies referred to in subsection (2) is the International Finance Corporation, Asian Development Bank and Islamic Development Bank.
Article 5, (1) PMA Company can be founded with share capital is owned entirely by foreign participants, provided:.,, a. located in the Bonded;
b. the entire results of its production for export.
.,, (2) within 5 (five) years counted since the company referred to in subsection (1) the commercial production, at least 5% (five perseratus) from the scluruh value of the capital shares of compulsory sale to Indonesia Citizens or legal entities whose capital is wholly owned by the citizens of Indonesia or certain bodies are given the same treatment by a citizen of Indonesia, Indonesia as a participant.
.,, (3) mastery and ownership of land to companies that took place in the area of the PMA Bonded fully done having regard to the provisions of the legislation regarding the land for environmental efforts in the area of Bonded.
Article 6 the provisions referred to in article 2, article 4 and article 5 applies also to any capital increase shares of the company in the framework of the expansion.
Article 7 along with the addition of capital stock in his own company, the company may also PMA replant profit company to: a. establish the new company; or, b.., buy shares in other companies in Indonesia, both new and established companies that are already established, at the time of purchase of the shares of the company's business areas concerned are not listed in the list of Businesses that are closed to Foreign Investment.
Article 8 in the event that the company's profit of PMA used to establish the new PMA companies, against the new PMA companies fully apply the provisions of the terms of shares participants Indonesia as defined in this Regulation.
Article 9.,, (1) in the case of company profit PMA used to buy company stock, the purchase should not cause ownership share capital of the company in Indonesia that participants bought less than 20% (twenty perseratus) of all the value of the company's capital stock is purchased.
.,, (2) possession of capital stock by participants of Indonesia as intended in paragraph (1) be upgraded to at least 51% (fifty one perseratus) through the sale of shares by the company concerned the PMA for a period of 20 (twenty) years.
.,, (3) the purchase or sale of the stock return referred to in subsection (2) is set by the Chairman of the capital investment coordination board.
Section 10.,, (1) in the case of company profit PMA used to purchase shares of the company's existing FOREIGN DIRECT INVESTMENT, capital stock ownership requirements for participants at the Indonesia company purchased the PMA applies the provisions of this Regulation.
.,, (2) a period of business license of the company that purchased the PMA remains as specified in the permit for the company that bought it.
Article 11 Arrangements for further implementation of these government regulations set forth by the Chairman of the capital investment coordination board.
Article 12 With the enactment of this Regulation, any decision of the Chairman of the Investment coordinating body regarding foreign capital investment as opposed to government regulation was declared no longer valid.
Article 13 this Regulation comes into force on the date specified.
In order to make everyone aware of it, ordered the enactment of this Regulation with its placement in the State Gazette of the Republic of Indonesia.
.,, Set in Jakarta on 16 April 1992 the PRESIDENT of the REPUBLIC of INDONESIA SOEHARTO Promulgated in Jakarta on April 16, 1992 the MINISTER/STATE SECRETARY MOERDIONO of INDONESIA RI STATE GAZETTE SUPPLEMENTARY No. 3476 (explanation of the 1992 State Gazette Number 36) EXPLANATION for the REGULATION of the GOVERNMENT of the REPUBLIC of INDONESIA number 17 in 1992 ABOUT the TERMS of OWNERSHIP of SHARES in a FOREIGN COMPANY INVESTING public.,, in an attempt to further interest and increasing the role of foreign investment in development in economics , the perceived need for a wide range of policies and measures to achieve an adequate climate for foreign capital investment venture in Indonesia. One of them is setting a clear and able to give legal certainty regarding the ownership of shares in companies established in the framework of this foreign capital investment.
.,, With a background of thought that government regulation is organized.
.,, Through the arrangements regarding the terms of ownership of shares in companies such as above, the ways and forms of activities of foreign capital investment gain a clear direction. Included in it, the arrangements regarding when and how the requirements that must be met when the foreign investment business will be done fully and all the capital shares can be owned by foreigners.
.,, In the framework of the development of the business climate, the settings in this Government Regulation is associated with efforts to enhance national potential. This includes both concerned the perpetrator-perpetrators of economic life, business sectors, as well as increasing the ability of businesses in the national economy.
.,, More than that, the setting on the stock ownership program associated with the thinking to push the implementation of the activities and economic growth in general are more prevalent in the region of Indonesia.
The SAKE ARTICLE ARTICLE article 1, article 2, quite clearly, is a participant of Indonesia is a citizen of Indonesia or Indonesia who are legal entities wholly owned capital citizen of Indonesia.
Is the whole value of the share capital of the company is the authorized capital of the company.
Article 3, paragraph (1), is, with this provision, then one of the terms of the letter a and letter b must be met. Subsection (2), quite obviously, subsection (3), the Government is expected to provide guidance so that the efforts of the increase in share capital ownership of participants the Indonesia can be realized.
Similar guidance was also needed to be done in terms of the increase as provided in subsection (2).
Article 4, paragraph (1).,, provided on the letter b, intended to encourage economic development efforts in these areas. Subsection (2), quite obviously, subsection (3), quite obviously, subsection (4), article 5, pretty clear., paragraph (1),, in addition to the terms set forth in article 4, the ownership of the entire capital stock by foreign participants is also possible but in terms of the fulfillment of the two conditions at the same time. Subsection (2), quite obviously, subsection (3), it is pretty clear, article 6, article 7, is quite clear.,, this provision regulates the possibility of the use of the profit of the company. In terms of the establishment of the new company's use of the company's profits may only represent one component.
But in terms of purchase of the shares of another company, the firm PMA can only use the spider.
Article 8, article 9, sufficiently clear., paragraph (1), this provision was intended to stock ownership on corporate Indonesia PMDN participants purchased fixed can be maintained at a level that allowed him to retain the rights they are reasonable.
This provision is required, because the purpose of the giving of an opportunity for the company to purchase shares of the company the PMA PMDN last is to help the development of the ability of the business or the company's financial condition improved PMDN. Paragraph (2).,, for the purpose referred to in subsection (1), then the mechanism also arranged the sale to buy back shares or by company PMDN.
The time period provided was 20 (twenty) years. During this period, it is expected the stock ownership by participants at the Indonesia company purchased can be increased again at least 51% (fifty one perseratus).
These provisions are in line with the provisions of article 2 of this Regulation. Paragraph (3), it is pretty clear, article 10, article 11, clear enough, clear enough, article 12, Article 13 clearly, enough, clear enough,
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