CoW and CCoW Change of Investment Regulation

• Author: William A. Sullivan/Christian Teo Purwono & Partners
• Profession: Licensed Foreign Advocate in Indonesia as well as a Solicitor of the Supreme Court of New South Wales
• Pages: 159-165

CHAPTER 13

CoW and CCoW Change of

Investment Regulation

I. Executive Summary

1. Overview

1.1 The CoW and CCoW Change of Investment Regulation (hereinafter

referred to as “MoEMRR 18/2009”) was issued with legal effect from

August 19, 2009.

1.2 MoEMRR 18/2009 sets out procedures for changing or altering the

investment and/or shareholding structure of CoW/CCoW holders.

1.3 MoEMRR 18/2009 is intended to (i) provide a clear procedural path for

CoW/CCoW companies to follow in changing their investment or

shareholding structure and (ii) give MoEMR a major supervisory role

in overseeing those changes.

2. Approach

2.1 Permitted Changes: CoW/CCoW holders may change or alter their

investment or shareholding structure as follows:

i. Change investment and financing source;

ii. Change legal status from PMA Company to become PMDN

Company or vice versa;

iii. Change AoA;

iv. Change BoC or BoD composition; or

v. Change shareholder composition.

2.2 Approval Process: Each of the changes identified in 2.1 above

requires prior approval from DGoMC on behalf of MoEMR.

2.3 In order to obtain the required approval from DGoMC, the CoW/

CCoW holders must, first, submit to MoEMR cq DGoMC an application

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