Client Alert: Deadline Looming for Companies in Indonesia to Amend Articles of Association

Limited liability companies in Indonesia are being required to amend as necessary Article 3 of their Articles of Association (AoA) so their purpose, objectives and business activities conform to the 2017 Standard Indonesian Business Field Classifications (KBLI) used as a reference by the BKPM, as the agency overseeing the Online Single Submission (OSS) system.

The Indonesian Ministry of Law and Human Rights and the Coordinating Ministry for Economic Affairs issued a joint announcement last year requiring the amendment. Companies were given a one-year grace period from Oct. 11, 2018, to amend their AoA accordingly or see their Business Identification Number (Nomor Induk Berusaha or NIB) frozen.

The instruction was issued because the Legal Entity Administration System (SABH) of the Ministry of Law and Human Rights is now connected to the OSS system under the Coordinating Ministry of Economic Affairs, and the government wants the classification of Indonesian companies in the OSS system and the SABH both to refer to the 2017 KBLI.

To amend its AoA, a company must have its shareholders approve the amendment and have that approval restated in notarial deed form. Companies are advised to make the necessary amendment to their Articles of Association to ensure compliance with this order.

SSEK\'s English translation of the Joint Announcement of the Ministry of Law and Human Rights and the Coordinating Ministry for Economic Affairs.

This publication is intended for informational purposes only and does not constitute legal advice. Any reliance on the material contained herein is at the user\'s own risk. You should contact a lawyer in your jurisdiction if you require legal advice. All SSEK publications are copyrighted and may not be reproduced without the express written consent of SSEK.