WB suggests Indonesia amend limited liability company law

Jakarta (Antara News) - The World Bank has suggested that the Indonesian government and the House of Representatives (DPR) amend the newly-enacted law on limited liability companies, particularly regarding clauses on minimum capital requirements (MCR).

"I think the Doing Business Report published by IFC (International Finance Corporation) and the World Bank will explain what the government can do to increase the ease of doing business in Indonesia. And one of the indicators is minimum capital requirements. Many other countries in this region have zero minimum capital requirements. So, the question is that must Indonesia increase minimum capital requirements for the establishment of companies?" Hans Shrader, IFC advisory services general manager, said here Wednesday.

The IFC is the World Bank`s private investment arm.

It was difficult to revise the implementation regulation of Law No.40/2007 on limited liability companies given the requirement for a minimum core capital of Rp50 million stipulated in the law, he said.

"I think amending the minimum capital requirement from the current position to zero level is the step that must be taken," he said.

Based on the Doing Business 2008 Report published by the IFC, Indonesia improved its `easiness of doing business` index worldwide.

In the report, Indonesia ranks 123 out of the 178 countries surveyed. Last year, it placed 135 out of 175 countries polled.(*)
Jawawa.net: Indonesian Business and Investment News Aggregator