Establishing a foundation in Indonesia has many purposes, particularly if you are interested in furthering a cause, be it an educational, environmental, social, cultural, or a humanitarian cause. Or, you may want to set up a foundation to create a platform to provide charity for the downtrodden and disenfranchised.
As mentioned in our article on How to Establish a Foundation, the process of establishing foundation is rather straightforward and simple. However, there are new changes on the establishment of foundation under Indonesia Law, taking into account the enactment of recent Ministry of Law and Human Rights Regulation No. 13 of 2019 to replace Ministry of Law and Human Rights Regulation No. 2 of 2016 on the Procedures to Apply for the Approval of Legal Entity and the Procedures related to Changes to Legal Entity and Foundation Deed of Establishment.
Under the new regulation, the Ministry of Law and Human Rights stipulated several changes in regard to: (1) Criteria of Foundation Name and (2) Approval Process for Foundation Name, (3) “Recycling” or using used Foundation name.
Read on to learn more about each important change.
The name for a foundation is required to use Alphabetical/Latin letters and consist of at least 3 words. Moreover, the name should comprise alphabetic letters in a way that forms words, should not use numbers or punctuation marks, is not in contrary to public norms, public order, and/or common decency, and lastly, the proposed name should not have any similarities to any other foundations, legal entities or other organisations.
Under the new regulation, applicants are also able to register abbreviation for the name, with the conditions that the abbreviation comprises the words belonging to the foundation name, or if the abbreviation is an acronym of the foundation name, and that the abbreviation is not similar to other foundations’ abbreviations that are already registered to the Ministry of Law and Human Rights.
Under the new regulation, applicant is required to also submit a form that indicates that the foundation name is in accordance with the law, and shall take full responsibility towards the name of the proposed foundation name.
This application must be submitted electronically through Ministry of Law and Human Right’s Legal Administrative Affairs Online System (“AHU”). The application for the foundation name shall be approved within 3 days after the date of application.
After the Ministry of Law and Human Rights authorities have reviewed the application, they shall issue Confirmation of Foundation Name. This Approval shall be delivered electronically with the following information included: (i) Name Reservation Number, (ii) Reserved Name, (iii) Date of Reservation, (iv) Expiry Date of Reservation, (v) Payment Code.
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As the sub-heading implies, under the new regulation, if a foundation name has been used by a foundation, and if that foundation later undergoes dissolution, or faces any other circumstances that eliminate the legal status of that foundation, such foundation name shall be removed from the Ministry of Law and Human Rights AHU list of registered name, and other parties may register/subscribe using that name.
It is always best to consult a legal expert prior to taking a step to set up a foundation in Indonesia. If you need further information on the establishment of foundation in Indonesia, get in touch with us, so that we can provide you with guidance and assistance, every step of the way.
Start by filling in the form below. You are also welcome to visit one of our offices, either in Jakarta, Bali or Semarang.