Time Growing Short for Companies in Indonesia to Amend Their Articles of Association

October 2019

Marccus Partners would like to advise those companies that have not yet done so to amend their Articles of Association (AoA) to conform to the 2017 Standard Indonesian Business Field Classification (KBLI). As the agency overseeing the Online Single Submission (OSS) system, BKPM uses the KBLI as a reference, and with the Legal Entity Administration System (SABH) of the Ministry of Law and Human Rights now being connected to the OSS system under the Coordinating Ministry for Economic Affairs, the government requires that both the SABH and OSS refer to the 2017 KBLI classification. Time grows short, though, for companies to act in order to meet the one-year deadline set by the Ministry of Law and Human Rights and the Coordinating Ministry for Economic Affairs in their joint statement on October 11, 2018. Failure to do so will see the company Business Identification Number (Nomor Induk Berusaha or NIB) frozen. Marccus Partners has it covered though. All that is required is shareholder approval of the amendment to Article 3 of the AoA so that purpose, objectives and business activities will all conform to the 2017 KBLI. This approval in notarized form will then be submitted to the Ministry of Law and Human Rights to record in the SABH under the desired KBLI classification. Meggy Parengkuan Partner, Legal Mabel & Associates, Attorneys at Law mabel.parengkuan@marccuspartners.id