Problems in Law Number 40 of 2007 the Article 7 on Limited Company in Indonesia

Abstract

To be one of powerful nation, the economic status of a country must be fixed at first. Balance protection and legal certainty is needed to attract more investors to play their treasury in target country. Government starts their role by offering some features to investors by using law. It must offer features that will ease and protect its client to reach mutual benefit. One of features that is offered to investors is UUPT (Limited Company Law). Both domestic and foreign investors will stand equal chance for this legal action which is stated in Law Number 40 of 2007 Article 7 on Limited Company (PT). This paper applies juridical normative technique within statue and historical approach. The result of study revealed that this law number 40 of 2007 article 7 about limited company brings more problems instead of advantages toward investors. The points in its Article against each other, it does not have clear definition on several terms, and it has imbalanced status between right and responsibility especially for foreign investors. These situations will invest more doubt among foreign investors. In conclusion, it is concluded that Law Number 40 of 2007 the Article 7 on Limited Company does not include legal actors in its making especially notary who are the most eligible in company deeds conduction. Moreover, limited time of socialization toward economic actors for this law will bring more confusion and problems instead of simplicity and mutual benefit.

Keywords: UUPT no. 40 of 2007 the article 7, legal certainty, benefit and justice principle.

DOI: 10.7176/JLPG/98-19

Publication date:June 30th 2020