IFCCI together with Hiswara Bunjamin & Tandjung organized a Forum Group Discussion on “Clear and Present Danger: Knowing and Managing the Risks of Operating in Indonesia” on 11 April 2017 at Meeting Room 10th Floor, Ascott Kuningan Jakarta.
Indonesian growth of business has always been an interesting opportunity for foreign investors. Before starting their business here, there are points that they need to know first. Some are about the civil liability of corporates and individuals under the company law; and corporate crime and associated individuals liability in Indonesia with the new supreme Regulation No. 13 of 2016 on corporate criminal liability.
Three main organs of Indonesian Companies (1) Director(s), (2) Commissioner(s), (3) Shareholder(s). The Director, as the main power of the corporate business day-to-day management, runs the office by the supervision from the Commissioner Board Member to give them a yearly review on performance and company results. Under Indonesian company law, a limited liability company has a separate legal personality, a limited liability company's shareholders are not personally liable for an agreement made by the company and is not liable for any losses incurred by the company. In practice, it is difficult to enforce against foreign shareholders.
Looking at the corruption and compliance culture in Indonesia, corporate crime and associated individual liability in Indonesia becomes a never ending story of transparency to fight. To prevent this, what companies and individuals need to do is to make policies and procedures on bribery prevention case, a true commitment between company and individual to fight together against it, and to not forget to do the regular audits and monitoring and review of policies.
Thank you to the speakers, Mr. Narendra Adiyasa, Partner at Hiswara Bunjamin & Tandjung; Ms. Jeanne Elisabeth, Partner at Hiswara Bunjamin & Tandjung; Ms. Cellia Cognard, International Counsel at Hiswara Bunjamin & Tandjung; and also Ms. Gitta Satryani, Senior Associate at Herbert Smith Freehills LLP Singapore as the moderator for this event.
We believe the participants found the discussion informative. Hence, we appreciate the valuable contribution of each speaker's presentation which has given us a better understanding on knowing and managing the risks of operating in Indonesia.
Once again, thank you to those who attended this forum group discussion. We look forward to having another informative discussion with you in the next IFCCI forum Group Discussion.