Foundation

Foundation is one of the legal entity in Indonesia that are commonly known, especially to the one that is working in the social, religious, and humanity field. As defined in Article 1 Paragraph 1 Law of Indonesia Number 16 of Year 2001 concerning Foundation, Foundation is a legal entity that consist of the wealth that are specifically separate for the purpose of such Foundation objective in the field of social, religious, and humanity.

            Just like every legal entity, Foundation have organ that is consist of Trustees, Managements, and Supervisors. As a legal entity that is not commercially operated, or known as non-profit legal entity, Foundation’s organs work in voluntary way so that there is no business activity within the Foundation. Because of that, Foundation may not perform any direct business activity in the name of the Foundation to support purpose and objective of such Foundation itself. However, Foundation may acquire their wealth by establish business entity  and/or participating in a business entity as stated in Article 3 of  Regulation Number 16 of Year 2001 concerning Foundation. It was clarified more on the explanation of Regulations Number 28 of Year 2004 that revise Regulation concerning Foundation, such provision clarify that Foundation are prohibited to perform any direct business activity.

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