The Government Drafting Omnibus Regulation on Business Entities

The Directorate General of General Legal Administration (Ditjen AHU) of the Ministry of Law continues to finalize discussions on the Draft Bill (Rancangan Undang-Undang– “ RUU ”) on Business Entities. The Director of Business Entities at the Ministry of Law, Andi Taletting Langi, explained that this legal framework will be drafted as an omnibus law for the establishment of business entities.

“We are currently proposing it again to the House of Representatives (DPR) to be included in the long list of the National Legislative Program (Prolegnas) because these entities have their own separate laws. So, we are consolidating them in the form of an omnibus law,” said Andi to Hukumonline.

In general, RUU on Business Entities will serve as a comprehensive update to Law No. 40 of 2007 on Limited Liability Companies (Perseroan Terbatas– “ PT ”), as last amended by Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “ Law 40/2007 ”), as well as Law No. 16 of 2001 on Foundations, as last amended by Law No. 28 of 2004 (collectively referred to as “ Law 16/2001 ”), which serve as the primary legal basis for the establishment and legal status of organizations in Indonesia.

“We have included the substance and will strive to begin discussions as soon as possible,” he concluded.