YAYASANCOMMERCIAL LAW

Michael Basrie 00000004191

Kim Eun Ji 00000007426

Rafel Kurnia 00000010198

WHAT IS YAYASAN

• a legal categorization of nonprofit organizations that will

typically either donate funds and support to other

organizations, or provide the source of funding for its own

charitable purposes.

WHAT IS YAYASAN

• The term "foundation," in general, is used to describe a distinct legal entity.

• Foundations as legal structures (legal entities) and/or legal persons (legal personality), may have different kind of forms and may follow diverse regulations depending on the jurisdiction where they are created.

• It may acquire its legal personality when it is entered in a public registry, while in other countries a foundation may acquire legal personality by the mere action of creation through a required document. Unlike a company, foundations have no shareholders, though they may have a board, an assembly and voting members.

WHAT IS YAYASAN

• It holds assets in its own name for the purposes set out in its constitutive documents, and its administration and operation are carried out in accordance with its statutes or articles of association rather than fiduciary principles. Also has a distinct patrimony independent of its founder.

• Often set up for charitable purposes, family patrimony and collective purposes.

LEGAL AUTHORITY

• There is now Law No.17 of 2013 on Societal Organizations replacing Law No.8 of 1985 on Societal Organizations. Law No.17 was enacted on July 22, 2013 and is intended to reinforce the role of the Ministry of Home affairs to control CSOs.

• This Law regulates “all organizations founded and formed by the society voluntarily on the basis of shared aspiration, will, needs, interest, activity and purposes in order to participate in the development with the intention to achieve the objective of the Unitary State of the Republic of Indonesia based on the Pancasila”

•

CHARACTERISTICS & USES

• The Foundation is a legal entity consisting of wealth are separated and destined to achieve certain goals in the field of social, religious, and humanitarian who has no members.

• Foundations can establish a business entity whose activities are in accordance with the intent and purpose of the foundation.

• The advantage of foundation is to assist civil society by not for profit.

• The wealth can be obtain from donations / aid which is not binding, Endowment Grant, Grant Wills, another acquisition is not contrary to the Articles of Association (AD) and or the legislation in force.

ADVANTAGES

• Provide Loans instead of GrantsWhen they used to support a charitable purpose, PF can employ loans, loan guarantees, and even equity investments which are paid back. So they can recycle their philanthropic capital for other charitable causes.

• Pay charitable ExpensesAll reasonable expenses incurred in carrying out the foundation’s charitable mission can be paid by the foundation and will count toward the annual minimum distribution requirement.

BILL & MELINDA GATES FOUNDATION

• Founded : in year 2000

• Type: Non- operating private foundation

• The Gates foundation is the largest private foundation in the world.

• They aims of the foundation are globally to enhance healthcare and reduce poverty.

• They aim to expand educational opportunities and access to information technology.

BILL & MELINDA GATES FOUNDATION

• Activities Bill and Melinda gates must donate funds equal to at least 5% of their assets per year to maintain a charitable foundation.

• Key partners- Global Development Division- Global Health Division- United States Division- Global Policy & Advocacy Division

DISADVANTAGES

• Low capital

• High Cost

• Shared control

• Financial records are open for public inspection

WHY BUSINESSMAN DOESN’T PREFER YAYASAN AS THEIR MAIN BUSINESS?

It is because of the UU No. 16/2001 that changed into UU No. 28/2004. This law stated that the foundation cannot share their profit to the owner , staff , employee and etc except for the people who meet this criteria:

1.bukan pendiri, dan tidak terafiliasi dengan pendiri, pembina dan pengawas

2.melaksanakan kepengurusan yayasan secara langsung dan penuh

(pasal 5 UU No. 16/2001 yang diubah dengan UU No. 28/2004)

And for the ones who violate it they will be given criminal sanction for 5 years or charges 500 million rupiah because of the UU No. 9 Tahun 2009 about the Badan Hukum Pendidikan (education legal entity)