01 / LEGAL ENTITY
Legal Entity Status
A Foundation obtains legal entity status after receiving the required approval from the competent authority in accordance with Indonesian law.
Foundation Establishment Services in Indonesia
Foundation Registration in Indonesia
Sea Digitalis assists with the establishment of an Indonesian Foundation (Yayasan), from defining its objectives and governance structure to preparing the Notarial Deed, obtaining legal entity approval, and handling the required post-establishment administration.
- ✓ Foundation Structure
- ✓ Notarial Deed
- ✓ Legal Entity Approval
- ✓ Administration
Foundation Structure
Legal Entity
Establishment
Founder + Separated Initial Assets
↓
Pembina
Board of Trustees
Pengurus
Management Board
Pengawas
Supervisory Board
01
Name & Objectives
Social, religious or humanitarian purposes
02
Notarial Deed
Foundation establishment documents
03
Legal Entity Approval
Foundation legal entity status
What Is a Foundation (Yayasan) in Indonesia?
An Indonesian Foundation (Yayasan) is a legal entity consisting of separated assets dedicated to achieving specific purposes in the social, religious, and humanitarian fields. A Yayasan has no members or shareholders. Its governance is carried out through three organs: the Pembina, Pengurus, and Pengawas.
Understanding Yayasan
Key Characteristics of an Indonesian Foundation
A Yayasan is structurally different from a limited liability company or partnership. Its assets and governance are directed toward achieving the purposes stated in its Articles of Association.
02 / PURPOSE
Specific Purposes
A Yayasan is established to achieve purposes in the social, religious, and humanitarian fields.
03 / ASSETS
Separated Assets
The Founder separates part of their assets as the initial assets of the Foundation for the achievement of its purposes.
04 / GOVERNANCE
No Shareholders
A Foundation does not have shareholders or members. Its organs consist of the Pembina, Pengurus, and Pengawas.
Foundation Governance
Pembina, Pengurus & Pengawas
Indonesian Foundation Law establishes three separate organs with different functions and responsibilities. The governance structure should therefore be determined before the establishment documents are prepared.
Board of Trustees
Pembina
The Pembina holds authorities that are not assigned by law or the Articles of Association to the Pengurus or Pengawas.
- ✓ Exercises strategic authorities assigned to the Pembina.
- ✓ Determines general policies within its legal authority.
- ✓ Performs functions provided under law and the Articles of Association.
Management Board
Pengurus
The Pengurus is responsible for managing the Foundation in the interests of its purposes and representing the Foundation in accordance with applicable law and its Articles of Association.
- ✓ Manages the Foundation.
- ✓ Implements activities in accordance with the Foundation's purposes.
- ✓ Represents the Foundation subject to the applicable legal provisions.
Supervisory Board
Pengawas
The Pengawas performs supervisory functions and provides advice to the Pengurus in carrying out the Foundation's activities.
- ✓ Supervises the management of the Foundation.
- ✓ Provides advice to the Pengurus.
- ✓ Supports appropriate internal governance and oversight.
Documents & Information
Requirements to Establish a Foundation in Indonesia
Information regarding the Founder, Foundation organs, initial assets, domicile, purposes, and proposed activities should be prepared before the Notarial Deed is finalized.
Identification details of the Founder or Founders.
Identification details of the Pembina, Pengurus,
and Pengawas.
Proposed Foundation name.
Registered domicile and address of the Foundation.
Proposed purposes and objectives of the Foundation.
Description of the Foundation's proposed activities.
Information regarding the initial assets separated
for the Foundation.
Proposed composition of the Pembina, Pengurus,
and Pengawas.
Other supporting documents depending on the Founder,
governance structure, and administrative requirements.
Foundation Assets
How Much Initial Assets Are Required?
A Yayasan does not use share capital like a PT. Instead, the Founder separates assets as the initial assets of the Foundation.
Established by Indonesian Persons
IDR 10 Million
Minimum Initial Assets
Where the Foundation is established by Indonesian persons, the initial assets separated from the Founder's personal assets are at least IDR 10,000,000.
Foreign Founder / Jointly with Foreign Persons
IDR 100 Million
Minimum Initial Assets
Where the Foundation is established by a foreign person or jointly by Indonesian and foreign persons, the applicable minimum initial asset requirement is IDR 100,000,000.
Assets separated for the Foundation do not constitute
shares held by the Founder. A Foundation does not have
shareholders in the same manner as a limited liability company.
Purposes & Objectives
What Purposes Can an Indonesian Foundation Have?
The purposes and activities of the Foundation should be clearly formulated in its Articles of Association because they form the legal basis for its activities.
01
Social
A Foundation may be established to pursue social purposes through activities specified in its Articles of Association.
02
Religious
A Foundation may pursue religious purposes, subject to any additional rules and sector-specific requirements applicable to its activities.
03
Humanitarian
A Foundation may carry out activities directed toward humanitarian purposes in accordance with its Articles of Association and applicable law.
Scope of Service
Sea Digitalis Foundation Registration Services
We assist in preparing the legal structure of your Foundation from the initial planning stage through legal entity approval and agreed post-establishment administration.
Initial Consultation
Review the proposed purposes, Founder, activities, and legal requirements.
Governance Structure
Prepare the proposed Pembina, Pengurus, and Pengawas structure.
Foundation Name
Prepare and check the proposed Foundation name before establishment.
Notarial Deed
Coordinate preparation of the Deed of Establishment and Articles of Association through a Notary.
Legal Entity Approval
Process the application for legal entity approval through the applicable legal administration system.
Further Administration
Assist with further administrative or licensing requirements where included in the agreed scope.
Step by Step
Foundation Registration Process in Indonesia
The process begins by defining the Foundation's objectives and governance before proceeding with the Notarial Deed and legal entity approval.
01
Consultation
Identify the proposed purposes, activities, Founder, and legal requirements.
02
Foundation Name
Prepare and check the proposed Foundation name.
03
Governance Structure
Determine the Pembina, Pengurus, and Pengawas.
04
Initial Assets
Determine the assets separated by the Founder for the Foundation.
05
Articles of Association
Prepare the purposes, activities, governance, and other Foundation provisions.
06
Notarial Deed
Execute the Deed of Establishment through an Indonesian Notary.
07
Legal Entity Approval
Submit the Foundation for legal entity approval through the applicable system.
08
Further Administration
Complete additional administration or licensing depending on the Foundation's activities.
NON
PROFIT
PROFIT
Can an Indonesian Foundation Conduct Business Activities?
A Foundation is established to achieve social, religious, and humanitarian purposes rather than to distribute profits to its Founder or organs. Indonesian Foundation Law nevertheless provides mechanisms through which a Foundation may support the achievement of its purposes through permitted business-related structures and activities. Any proposed commercial arrangement should therefore be reviewed before determining the legal structure.
Service Fee
How Much Does It Cost to Establish a Foundation in Indonesia?
The professional fee depends on the Founder structure, governance arrangement, document requirements, and scope of administrative assistance required.
Foundation Registration Service
Establishment & Legal Entity Approval
Request Quotation
Tailored to your Foundation structure
- ✓ Foundation structure consultation
- ✓ Foundation name preparation and checking
- ✓ Review of Pembina, Pengurus & Pengawas
- ✓ Coordination of the Notarial Deed
- ✓ Legal entity approval process
- ✓ Administrative assistance within the agreed scope
Legal Framework
Legal Framework for Indonesian Foundations
The establishment and administration of Foundations in Indonesia are governed by the Foundation Law, its implementing regulations, and the applicable legal entity administration regulations.
Law No. 16 of 2001
The principal legislation governing Foundations (Yayasan) in Indonesia.
Law No. 28 of 2004
Amendment to Law No. 16 of 2001 concerning Foundations.
GR No. 63 of 2008
Implementing regulation of the Foundation Law, as amended by Government Regulation No. 2 of 2013.
MOLHR Reg. No. 2/2016
Governs Foundation legal entity administration, as amended by MOLHR Regulation No. 13 of 2019.
The information on this page is provided for general
informational purposes. Additional requirements may apply
depending on the identity of the Founder, Foundation
governance structure, activities, location, and any
sector-specific licensing requirements.
FAQ
Frequently Asked Questions About Foundations in Indonesia
Key information about legal entity status, Founders, Foundation organs, initial assets, foreign involvement, and the establishment process.
A Yayasan is a legal entity consisting of separated assets dedicated to achieving specific purposes in the social, religious, and humanitarian fields. A Foundation does not have members or shareholders.
Yes. A Yayasan is a legal entity. It obtains legal entity status after its establishment receives approval in accordance with the applicable Indonesian legal entity administration procedures.
A Foundation may be established by one or more persons by separating part of the Founder's assets as the initial assets of the Foundation. The Foundation must also have the governance organs required under Indonesian Foundation Law.
The organs of a Yayasan are the Pembina, Pengurus, and Pengawas. They perform different governance, management, and supervisory functions under Indonesian law and the Foundation's Articles of Association.
A Foundation does not have shareholders or members in the same way as a limited liability company. Assets separated by the Founder become assets of the Foundation and are used to achieve its purposes.
For a Foundation established by Indonesian persons, the minimum separated initial assets are IDR 10,000,000. Where a Foundation is established by a foreign person or jointly with foreign persons, the applicable minimum initial asset requirement is IDR 100,000,000.
Yes. A Foundation is established by a Notarial Deed made in the Indonesian language and is subsequently submitted for legal entity approval in accordance with the applicable procedures.
A Yayasan is established to achieve specific purposes in the social, religious, and humanitarian fields. Its purposes and activities should be stated in its Articles of Association.
A Foundation is not established for the distribution of profits to its Founder or Foundation organs. Where business or commercial activities are contemplated, the proposed structure should be reviewed under Foundation Law and any applicable sector-specific regulations.
No. A Yayasan does not have capital divided into shares like a PT. Instead, it has separated assets dedicated to achieving the purposes of the Foundation.
Indonesian regulations allow Foundations involving foreign persons subject to specific requirements. Foreign-Founder structures should therefore be reviewed carefully, including the applicable initial asset, governance, residency, and supporting-document requirements.
This depends on the activities conducted by the Foundation. Legal entity approval and business or sector-specific licensing are separate matters. Where the Foundation conducts activities requiring business licensing, additional registration or licensing may apply.
The timeline depends on document readiness, name approval, preparation and execution of the Notarial Deed, the legal entity approval process, and any additional administrative or sector-specific requirements.
Start Your Foundation
Ready to Establish a Foundation in Indonesia?
Tell us about the purposes and planned activities of your Foundation. Sea Digitalis can assist with reviewing the Founder and governance structure, initial assets, Notarial Deed, legal entity approval, and the required administration.
Sea Digitalis · Legal & Business Services Indonesia