ELIGIBILITY TO BECOME A MEMBER IF BOARD OF MANAGEMENT

Yayasan Mahajana Sosial Fondasi Indonesia

CRITERION FOR VERIFICATION SOURCES/PROOF

SELECTION
Relevant Laws a) Law Number 16 Year 2001 concerning the Foundation
as amended by Law Number 28 Year 2004 concerning
Amendment to Law Number 16 Year 2001 concerning
the Foundation ("Law No. 16/2001");
b) Government Regulation Number 63 Year 2008
concerning Implementation of Laws on Foundations as
amended by Government Regulation Number 2 Year
2013 concerning Amendments to Government
Regulation Number 63 Year 2008 ("GR No.2/2013").
Overview Yayasan also known as Foundation in Indonesia, is one
(Eligibility, form of Non-Profit Organizations. Pursuant to the Article 1
Nationality/Residency) (1) of Law No. 16/2001 as amanded by Law No. 28/2004
stipulates that Foundation is a legal entity consisting of
assets that are separated and intended to achieve certain
goals in the social, religious and humanitarian fields,
which have no members.

Based on above mentioned that Foundation is a legal

entity of non-profit organization with purposes and
objectives in social, religious, and humanitarian. It is
prohibited to conduct commercial activities. In which,
Foundation carries out its activities by using capital
obtained from donation funds; support from other
organizations; or self-funding by doing its own charity
event for its charitable purposes.

In addition, pursuant to Article 2 of Law No. 16/2001 as

amanded by Law No. 28/2004 stipulates that the
Foundation has organs consist of:
i. Board of Executives (Dewan Pengurus);
ii. Board of Advisors (Pembina);
iii. Board of Supervisors (Pengawas).

Moreover, based on Article 12 of GR No. 2/2013 regulates

the membership of Foundation established by foreign
citizens, as follows:
a) Foundations established by Foreign Citizens or Foreign
legal entities with Indonesian citizens, based on Article
32 of Law No. 28/2004 regarding Members of
Management structure, as follows:
(i) a chairman;
(ii) a secretary; and
(iii) a treasurer.

One of the Members of the Management based on Article

shall serves as: chairman, secretary, or treasurer must be
held by Indonesian citizens;

a) The Foundation Management Members established by

Foreign Citizens or Foreign Legal entities with
Indonesian citizens must reside in Indonesia;

b) The Management Members of the Foundation who are

Foreign Citizens must be holder of permits to carry out
activities or businesses in the territory of the Republic
of Indonesia and holder of Temporary Stay Permits;

c) The Management Members of the Foundation, who

are foreign citizens, shall of GR No. 2/2013;

d) In the event that there is a vacant on the

Management member who serves as chairman,
secretary, or treasurer, within a maximum of 30
(thirty) days from the date of the vacant position,
such position shall be filled in by the replacement.

In Connection regarding Management Members of the

Foundation who are Foreign Citizens must be holder of
permits in Indonesia.Please be also informed that based
on Indonesia prevailing laws and regulation, any
foreigners who will stay and work in Indonesia are
required to obtain working permit and limited stay visa
(“VITAS”). Upon arriving in Indonesia, the applicant must
convert their VITAS into a limited stay permit (“KITAS”).
It is regulated that each of the employer who wish to hire
a foreign employee shall possess an RPTKA (Rencana
Penggunaan Tenaga Kerja Asing/Foreign Employee
Utilization Plan) which is shall be used as the basis for
such employee to obtain the working permit issued by
Ministry of Manpower.

As you may be aware that working permit are usually

issued for 12 month periods and may be extended,
subject to approval from the government. In addition,
such foreigners must also obtain the residence cards
called Limited Stay Permit Cards (Kartu Izin tinggal
Terbatas, or KITAS) which is issued by Directorate
General of Immigration under the authority of Minister of
Law and Human Rights. In order to obtain KITAS, the
foreigners have to possess entry permit, which means
that the foreigner has to come to Indonesia after the visa
is obtained (as one of the requirements under
Immigration Law).

In relation to the above, a Foreign Foundation can carry

out their activities in Indonesia. The terms and
procedures for Foreign Foundation conducting their
 activities in Indonesia are stipulates in Article 26 of GR
No. 2/2013, as follows:
a) Foreign Foundation can carry out activities in
Indonesia only in the social, religious and
humanitarian fields;
b) Foreign Foundation as stated above shall partner with
Indonesia Foundation (established by Indonesian
citizen) that have the same aims and objectives as the
Foreign Foundation;
c) The partnership as referred to above, shall have the
prospered political, juridical, technical and security
aspects;
d) Partnership between Foreign Foundation and
Indonesia Foundation (established by Indonesian
citizen) shall carry out their activities in accordance
with Indonesia laws and regulations.

c) In connection with the Regulation of Indonesian

Foundations Law, we did not find the terms and
conditions of the criteria for membership of
management education, we suggest that this is the
selection of criteria from each partner for the
Foundation. Furthermore, regarding Nationality and
Residency, we have described above.
Type of Contract- Full Based on Law Number 13 of 2003 regarding Manpower
Time/Part Time (“Manpower Law") as amanded by Law Number 11 of
2020 on Job Creation ("Omnibus Law") in General
Information above, according to Article 56 of Omnibus
Law that Employment agreement in Indonesia consist of 2
(two) types, which are Indefinite Term Employment
Agreement and Definite Term Employment Agreement.

Based on Omnibus Law regarding Definite Term

Employment Agreement, as follows:
a) Time period; or
b) Completion of an Employment Agreement.

The term or completion of the Definite Term Employment

Agreement (“PKWT”), as referred to above, is
determined based on the Employment Agreement.

Based on Article 10 regarding Government Regulation

Number 35 of 2021 on Fixed Term Employment,
Outsourcing, Working Hours and Rest Times and
Termination (“GR 35/2021”), namely PKWT can be
implemented on jobs certain other types and
characteristics or activities is not permanent, namely in
the form of certain jobs variable in terms of time and
volume of work as well as payment of Employee wages
based on presence. PKWT as referred to above is carried
out utilizing a daily Employment agreement. The daily
Employment agreement as referred to is carried out under
 the provisions of the Employee work less than 21 (twenty-
one) days in 1 (one) month. Furthermore, if in the case of
Employee working 21 (twenty-one) days or more for 3
(three) consecutive months or more than the daily
Employment agreement as referred to referred to be
invalid and Employment Relations between Employer and
Employee are void by law and changed to Indefinite Term
Employment Agreement ("PKWTT")

PKWTT agreements may be made either orally or in

writing. In the case of an oral employment agreement,
the employer is obligated to issue an appointment letter
containing somewhat less detail regarding the terms of
employment at least contain information concerning:
a) The name and address of the employee;
b) The date the employee starts to work;
c) The type of job or work; and
d) The amount of salary.

Please be noted that indefinite-term employment

agreements are allowed to determine probation in the
maximum period of 3 (three) months. In general,
following an initial three- month probation period,
indefinite-term employees can be dismissed only with the
approval of the relevant industrial dispute settlement
institution on the basis of repeated, well- documented
violations of written rules. With regards to the
terminations of indefinite-term employees, the employer
shall have the obligation to pay severance payment to the
indefinite-term employees.

Based on Article 42 of Omnibus Law Regarding Foreign

Employees. Employers who recruit Foreign Employees are
required to have a Foreign Working Permit approved by
the Central Government. Foreign Employees can be
employed in Indonesia only under an Employment
Agreement for PKWT and have competencies according to
the position to be occupied. Foreign Employees are
prohibited from holding positions in charge of personnel.

Please be note PKWTT Agreement shall only be applied to

the local/national staff and cannot be applied to the
foreign employee/international staff.
Additional Formal Based on Foundation Laws, Board of Executives, Board of
Employement- Yes/No Advisors, Board of Supervisors. Foundations are
prohibited from concurrently serving as members
Directors or Management and Members of the Board of
Commissioners or Supervisors of a business entity.

We did not find any regulations in Indonesia that regulate

Management not being allowed/prohibited from holding
concurrent positions for jobs outside the Foundation.
Contributin to Pension Fund
Any Other Criterion- List
Out If Any
Please be informed of Mandatory Payment for Staff, if
employed any staffs/workers/employees are subject to
Law number 24 of 2011 ("BPJS Law") as Employer.
Under the BPJS Law, currently there are 2 (two) BPJS
agencies, namely Health BPJS and Manpower BPJS.
Health BPJS organizing health insurance program and
Manpower BPJS organizing work accident insurance, old-
age benefits, pensions plan, and life insurance programs.
Pursuant to Article 15 paragraph (1) of the BPJS Law, as
follows:
Article 15(1)
"The Employer shall gradually register itself and its
employees as Participant to BPJS".
The employees that shall be registered under BPJS is
including expatriates which work at the minimum 6 (six)
months in Indonesia, according to the Article 1 (4) of the
BPJS Law. Once Foundation have already registered
themselves, as the Employer and their employees as BPJS
participant. Foundation have obligation to pay the BPJS
premium each month, as stated under Article 19
paragraph (1) and (2) of BPJS Law.
However, if Foundation do not paying the BPJS premium,
Foundation are subject to the Article 55 of BPJS Law, they
shall be liable to a maximum imprisonment of 8 (eight)
years or a maximum fine of Rp1,000,000,000.00 (one
billion rupiah).
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