Written by Bram Michael Joshua on 09/07/2024
The author’s views are entirely their own and may not always reflect the views of Putranto Alliance.
Joint ventures in Indonesia involve two or more companies joining forces to establish a new entity, with participation from both local and foreign investors. These partnerships offer numerous advantages, including reputation enhancement, market access, network expansion, resource sharing, risk reduction, innovation stimulation, and capacity building. However, successful ventures require careful evaluation of goals, contributions, risks, and structural considerations. Putranto Alliance serves as a reliable partner in facilitating legally sound and prosperous joint ventures in Indonesia.
At the heart of every joint venture lies a contractual agreement, rooted in Indonesia’s Civil Code (ICC) . Article 1313 defines an agreement as a commitment between parties, while Article 1338 emphasizes the binding nature of lawful agreements. To validate them, Article 1320 of the ICC outlines four criteria: mutual consent, capacity, a specific subject, and a lawful cause.
Joint ventures play a crucial role in Indonesia’s business landscape, offering a pathway for companies to combine their resources, expertise, and market access. They serve as vehicles for local and foreign investors to capitalize on opportunities, mitigate risks, and achieve mutual goals. By forming them, companies can:
The optimal time to pursue a this venture in Indonesia depends on various factors, including market conditions, business goals, and regulatory considerations. Key moments to initiate the process include:
Engaging in a venture in Indonesia offers a multitude of benefits for both local and foreign investors:
Establishing a venture in Indonesia involves several strategic steps and legal procedures:
Putranto Alliance excels as your expert guide in navigating Indonesia’s complex joint venture landscape. Our services include:
A response to the inquiry will be sent to the provided email within 2 working days.
putranto@putranto-alliance.com
Jl. Denpasar Raya Blok C4/24
Kompleks Menteri, Kuningan
Jakarta Selatan, 12950, Indonesia
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