| Government Regulation No. 63 of 2008 on the Implementation of the Law on Foundations (“GR 63/2008”) was issued on 23 September 2008. GR 63/2008 is the implementing regulation of Law No. 16 of 2001 as amended by Law No. 28 of 2004 regarding Foundations (“Foundations Law”).
Under GR 63/2008, foundations must have a name and be registered in the register of foundations at the Ministry of Law and Human Rights. The name of a foundation may not use a name which has already been registered by another foundation, or violate public norms and morals.
The minimum asset value requirement for a local foundation established by an Indonesian citizen is Rp.10,000,000 which capital should be separate from the founder’s own assets. For a foundation established by a foreign citizen or foreign and local citizen, the assets should be not less than Rp100,000,000. GR 63/2008 also provides several requirements for a foundation established by a foreign citizen or a foreign and a local citizen.
Other than the above issues, GR 63/2008 regulates:
▫ procedures for the establishment and amendments to the articles of association of a foundation,
▫ requirements and procedures for aid from the government to a foundation,
▫ procedures and requirements for a foreign foundation to conduct activities in Indonesia, and
▫ procedures for mergers of foundations.
Existing foundations established before the enactment of the Foundations Law which are not yet acknowledged to be legal entities or reported to the Ministry (as required under Article 71 (2) of the Foundations Law), must submit an application for approval of their deed of establishment. In the meantime, the founders will be held personally liable, jointly and severally, for all legal actions taken by the foundation if it has not yet obtained legal status.
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