Indonesian Company Law

<p>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.</p><p></p><p>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.</p>