Article 1653 of the Civil Code divides legal entities into 3 (three), namely:
1. Legal entities established by the government, such as: regional government (provincial government, city government or district government) etc
2. Legal entities recognized by the Government, for example: associations, religious organizations, community organizations, etc.
3. Legal entities established for a specific purpose that does not conflict with the law, morality, such as: limited liability companies, associations, insurance, shipping etc.
According to the doctrine, in order for an agency/association/business entity to be considered a legal entity (rechtspersoon), it must fulfill the following requirements:
1. The existence of separate assets
2. Have a specific goal
3. Have their own interests
4. There is an orderly organization
Legal Entity Regulation
The Civil Code does not completely and perfectly regulate legal entities. Legal entities are regulated in book II title IX Articles 1653 to Article 1665 with the term "van zedelijke lichamen" which is seen as an agreement, therefore it is further stated in book III concerning Engagements. Regulations regarding legal entities are contained in:
1. Stb. 1870 No. 64 concerning recognition of legal entities
2. Stb. 1927 No. 156 concerning the Church and religious organizations
3. Stb. 1939 No. 570 jo. 717 concerning Indonesian Legal Entities
4. Stb 1939 No. 539 jo. 717 about Indonesiache MAatshapij op Aandelen
5. Wet Boek Van Kopenhandel (WvK) or Commercial Law Book, regarding Limited Liability Companies, Shipping Companies and Insurance Associations
History of Corporate Law in Indonesia
Regulations regarding corporate law were first regulated in articles 36 to 56 in the Commercial Law Book (KUHDagang) or Wet Boek Van Kopenhandel (WvK) which was in effect during the Dutch colonial period until Indonesia became independent, limited liability companies at that time were known as with the title “Naamloze Vennotschap” or “NV”.
Furthermore, starting in 1995, Corporate Law was regulated in Act No. 1/1995 concerning Limited Liability Companies. In Indonesia Limited Liability Companies called “Perseroan Terbatas” or “PT”
Because of Act no. 1/1995 concerning Limited Liability Companies is no longer in accordance with legal developments and the needs of society, so further matters concerning Corporate law are regulated by Act no. 40/2007 concerning Limited Liability Companies.
