Definition
Foundation or "stichting" is defined by law number 16/2001 as a legal entity which comprises of separated wealthy and is established to reach certain goals in the field of social, humanity and religious. From the mentioned definition can be concluded that foundation can not generate profits. The goals of the Foundation establishment are limited to social, humanity and profit.
Legal Basis
Foundation is governed under the law number 16/2001 as amended by law number 28/2004. There also an implementation regulation for Foundation under Government Regulation Number 63 year 2008.
Initial Foundation's Wealthy
The foundation's wealthy established by local individual is in the amount of IDR 10.000.000,- and for foreign individual and/or along with local individual in the amount of IDR 100.000.000,-Fundation that established by local and or foreign legal entity should owned an initial wealthy at least in the amount of IDR 100.000.000,-. The wealthy should be separated from the private founder wealthy.
Establishment Process
Foundation can be established by one person or more either Indonesian or foreigners. The process of establishment of foundation is carried out by making a deed of establishment made in Bahasa Indonesia before the public Notary. The process of establishment can be also made by proxy.
After the deed of establishment is made then the founder or its proxy apply for a legalization to the Ministry of Law and Human Rights through the Notary. Required document needed for the legalization process are as follow.
- Copy of the Deed of Establishment
- Copy of Tax Identity Number legalized by the Notary
- Statement Letter regarding Domicile Letter of Foundation signed by the Board of Foundation and known by local Head of Sub district (Lurah/Kepala desa)
- Receipt from the bank or statement Letter from the Bank or statement Letter from the Founders stating the value of the Foundation's property separated from the initial property to establish the foundation
- Statement Letter from founder stating the validity of the property mentioned
- receipt of the paid cost for the legalization and announcement of foundation
The application should be submitted not later than 1o days after the deed of establishment is signed. The legalization will be obtained not later than 30 days after the submission of the application with complete document. The foundation will automatically obtain its legal status once the legalization is approved.
Organ
Foundation has three organ comprises of Board of Advisor, Board of Executive and Board of Supervisor.
