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MORATORIUM ON STATE-OWNED COMPANIES TO ENTER INTO A JOINT VENTURE WITH THIRD PARTIES (Indonesia)
- Publisher
- Nagashima Ohno & Tsunematsu
- Journal /
Book - NO&T Asia Legal Review No.18 (December, 2019)
- Reference
- Practice Areas
*Please note that this newsletter is for informational purposes only and does not constitute legal advice. In addition, it is based on information as of its date of publication and does not reflect information after such date. In particular, please also note that preliminary reports in this newsletter may differ from current interpretations and practice depending on the nature of the report.
On 12 December 2019, the Minister of State-Owned Companies issued the Decision of Minister of State-Owned Companies No. 315/MBU/12/2019 on the Organization of Subsidiaries or Joint Venture Companies of State-Owned Companies (“Decision 315/2019”), which essentially sets the moratorium for state-owned companies and their subsidiaries to establish new subsidiaries or enter into joint venture agreement with third parties.
Indonesian Law No. 19 of 2003 on State-Owned Companies defines a state owned company as a company of which all or majority of the shares are owned by the Government. Further, a subsidiary of a state-owned company is defined as a company of which the majority of the shares are owned by a state-owned company or a company that is controlled by a state-owned company (“Subsidiaries”).
Pursuant to the Decision 315/2019, the Minister of State-Owned Companies has determined the following:
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