Corporate Governance 2024

1. Introductory

1.1 Forms of Corporate/Business Organisations

Generally, Indonesian law acknowledges two main types of business organisation: those business organisations structured as a business entity (badan usaha) and those operating as a legal entity (badan hukum). The distinction between the two types of business organisation lies in the legal subject element and liability provisions.

A business entity can take the form of the following:

• civil/general partnership (maatschap);
• partnership; or
• limited partnership (commanditaire vennootschap).

A legal entity business organisation generally takes one of the following forms:

• limited liability company;
• foundation; or