Under the Article 93 of Law No.40 of 2007 Concerning Limited Liability Company (“Law No.40/2007”), there are couple of requirements shall be taken into account for becoming a director in a company which duly incorporated and existing under the Law No.40/2007, as follows:
“Those might be appointed as the member of the Board of Director is individual which is capable of conducting legal actions, except in the period of 5 (five) years before the appointment has:
- declared bankrupt
- appointed as the Board of Director or the Board of Commisioner that has been declared guilty which caused the company to be declared bankrupt
- has been commited guilty for conducting criminal act which has caused the state to suffer loss and/or related to the state financial.”
Furthermore, the Article 3(1) of Decree of the President of the Republic of Indonesia No.75 of 1995 concerning the utilization of the foreign worker (“President Decree No.75/1995”) provides that:
“The position of Director and Commissioner of the company which owned by a foreigner and/or a foreign legal entity; or company which owned by an Indonesia citizen and/or an Indonesia legal entity is opened for a foreign worker.”
Provided however, the Article 46 (1) of Law Number 13 Year 2003 concerning Manpower (“Law No. 13/2003”) provides that “foreign worker is restricted to be appointed as the Human Resource Director or any certain position.”
In respect of the above, a foreigner is allowed to be a director in a company which duly incorporated and existing under the laws of the Republic of Indonesia, except for the position of human resource director to which is only opened for the Indonesia citizen. I believe that prior to working in Indonesia, the director candidate is required to obtain the relevant working permits.
Hopefully the above would be of assistance. May God bless you.