ABSTRACT
Whether a penanaman modal dalam negeri or penanaman modal asing, the establishment of a company is subject to the 2007 Company Act and relevant regulations. The founder, or pendiri, is a person who creates the corporation and undertakes the preliminary work incidental to the formation of company. At least two persons are required to establish a company and, most importantly, shall become shareholders of the company by acquiring the initially issued shares. Thus, the founders are the actual owners of the business in principle, and employees or members of the law firm handling the establishment process are not referred to as either founders or incorporators. If only one shareholder remains after the establishment stage, the company must find a new shareholder within 6 months. The founder shall be an Indonesian citizen or legal entity in principle. A foreigner, or foreign entity, can only become a shareholder in certain situations allowed under separate laws and regulations.
