Foundation Setup

Foundation is a legal entity consisting of separated assets and is intended to achieve certain goals in the social, religious, and humanitarian fields, which contains no members. Foundations are not a business entity and is non-commercial in nature. Therefore, foundations must not make any profit. In addition, there are no business licenses issued for foundation legal entities. In accordance with the provisions, foundations must be engaged in social, religious and humanitarian fields. An example is the Foundation for Children with Disabilities (Yayasan Penyandang Anak Cacat, YPAC), which is engaged in the humanitarian field. There are various organs inside a foundation. Among them are the founding, supervisory, and management boards. Within the management structure, there must also be the positions of Chairman, Secretary and Treasurer.

Why Choose Foundations?
Foundations are used as a legal forum for organizations engaged in social, religious, and humanitarian fields.

Who are the founders of a Foundation?
The founders of a Foundation can be both Indonesian citizens and foreigners. Specifically for establishment by foreigners, more specific provisions will apply.

What are foundation business models?
Foundations are social/non-commercial in nature. As a result, you cannot conduct business.

1. Law No. 16/2001

Law of Foundation. This Law is the main legal source for regulating foundations in Indonesia

2. Law No. 28/2004

Amendment to Law. No. 16/2001, this law partially amends the provisions of the Law of Foundation No. 16/2001

3. Presidential Regulations No. 63/2008
4. This Presidential Regulations specify in more detail how the Foundation is regulated in Indonesia, according to article 6. Presidential Regulations No. 63/2008.
5. Foundation established by Indonesian citizens, the minimum initial wealth must be IDR 10,000,000.-, while Foundations established by foreigners or jointly with foreigners, the minimum initial wealth must be IDR 100,000,000.-