Indonesia - Deadline Looming For Companies In Indonesia To Amend Articles Of Association.
Legal News & Analysis - Asia Pacific - Indonesia - Regulatory & Compliance
27 September, 2019
Limited liability companies in Indonesia are being required to amend Article 3 of their Articles of Association (AoA) so their purpose, objectives and business activities conform to the 2017 Standard Indonesian Business Field Classifications (KBLI) used as a reference by the BKPM, as the agency overseeing the Online Single Submission (OSS) system.
The Indonesian Ministry of Law and Human Rights and the Coordinating Ministry for Economic Affairs issued a joint announcement last year requiring the amendment. Companies were given a one-year grace period from Oct. 11, 2018, to amend their AoA accordingly or see their Business Identification Number (Nomor Induk Berusaha or NIB) frozen.
The instruction was issued because the Legal Entity Administration System (SABH) of the Ministry of Law and Human Rights is now connected to the OSS system under the Coordinating Ministry for Economic Affairs, and the government wants the classification of Indonesian companies in the OSS system and the SABH both to refer to the 2017 KBLI.
To amend its AoA, a company must have its shareholders approve the amendment and have that approval restated in notarial deed form. Companies are advised to make the necessary amendment to their Articles of Association to ensure compliance with this order, even if there is no change to their KBLI number.
You can find SSEK’s English translation of the Joint Announcement of the Ministry of Law and Human Rights and the Coordinating Ministry for Economic Affairs at https://bit.ly/2mc7Awu.
For further information, please contact:
Rusmaini Lenggogeni, Partner, Soewito Suhardiman Eddymurthy Kardono