ESTABLISHMENT OF HOSPITAL IN INDONESIA






ESTABLISHMENT OF HOSPITAL IN INDONESIA

The growth of the Indonesian population and the need for health facilities are increasing. Hospitals with international standards of treatment are in demand.

The Indonesian Government has stipulated that foreign investment may engage in hospital business through an establishment of a Foreign Direct Investment Company so-called a PT. PMA (Perseroan Terbatas – Penanaman Modal Asing).

Currently, the maximum percentage of ownership that is open to foreign investment in the hospital business is 67% of the total shareholding and 70% for foreign investment from ASEAN countries.

It seems that the Indonesian Government is currently attempting to increase foreign investment in this sector by increasing the opportunities for foreign investors to enter. In fact, the Government and the Legislature have created a new law that simplifies licensing for foreign workers in Indonesia, including doctors.

Application on the foreign investment may be lodged with BKPM (Indonesia Investment Coordinating Board).

Since the percentage of ownership that is open to foreign investment in this sector is restricted, foreign investors will need to engage in a joint venture with a local company. A joint venture agreement between foreign and local investors shall be made prior to preparations of articles of association of the company.

Both of the joint venture agreement and articles of association shall be lodged together with the foreign investment application to BKPM. Once BKPM has issued the approval, applications for the permits (Business permit and additional permits in the health sector) can be submitted to BKPM through the OSS system.

After obtaining all the permits, arrangements to obtain the relevant working permit for the foreign doctors can be made under the Ministry of Health thereafter.


Said, Sudiro & Partners

Indonesian Legal Consultants

Sampoerna Strategic Square

South Tower, Level 18

Jl. Jend. Sudirman Kav. 45 - 46

Jakarta 12930 Indonesia

Phone: (62-21) 575.0983

Fax: (62-21) 575.0803

Website: www.ssplegal.com

Emails: mail@ssplegal.com

           sdsdp@cbn.net.id


Comments

Post a Comment

Popular posts from this blog

Acquisition Does Not Change Employment Relationship

    ACQUISITION DOES NOT CHANGE EMPLOYMENT RELATIONSHIP Acquisition, Merger, and Consolidation of Limited Liability Companies are generally regulated in Law No. 40 of 2007 on Limited Liability Companies. Furthermore, the implementation of acquisition will involve many legal aspects which are regulated in many legal provisions. In relation to the status of the target company's employees after the acquisition, it is regulated in Law no. 11 of 2020 on Job Creation Law as well as Law no. 13 of 2003 on Manpower.   In general, the status of the employees of the target company after an acquisition does not change. The employees are still bound by the employment relationship with the target company that remains standing. The acquisition will cause the shareholders of the target company to change, but will not cause the target company to dissolve. However, in practice, from previous experiences, not all employees will agree with the acquisition. Those who do not agre...
Read more

ACQUISITION/TAKEOVER

      ACQUISITION/TAKEOVER In our experience, an acquisition or a takeover is often carried out to gain control of a company. For the acquiring company, an acquisition is considered as an easier way to enter a certain business field, rather than having to establish a new company, which will take time and cost in obtaining all kinds of permits needed to get the business running. For example, a foreign mining company or foreign airline that is financially stronger may try to acquire a company in Indonesia that has enough experience in running its business but is financially weaker. It is not uncommon for this share takeover to be carried out by an investor/investment company in the development of its business.   By owning the majority of shares of the target company, the acquiring company has a bigger chance of securing votes in the General Meeting of Shareholders (GMS). One example is that the acquiring company has a greater chance of appointing members of...
Read more

Legal Due Diligence Pada Proses Akuisisi

                           Legal Due Diligence Pada Proses Akuisisi   Dalam proses akuisisi suatu perseroan, tentu acquiring company perlu mengetahui secara mendalam situasi pada target company. Maka firma hukum akan melakukan pemeriksaan secara seksama melalui dokumen-dokumen terkait dengan target company.   Secara umum acquiring company perlu mengetahui legal status daripada target company. Dengan memeriksa Anggaran Dasar target company, dapat diketahui tentang keabsahan pendirian perseroan tersebut, para pemegang saham, para Direksi dan dewan Komisaris target company. Dalam hal ini menjadi crucial untuk memeriksa notulen RUPS dan Circular Resolution of Shareholders. Seringkali ditemukan hasil RUPS dan Circular Resolution of Shareholders yang isinya belum dituangkan dalam Anggaran Dasar, ataupun tidak diatur dalam Anggaran Dasar. Misalnya pengangkatan...
Read more