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THE LAW OF THE REPUBLIC
NUMBER 40 OF 2007
CONCERNING
LIMITED LIABILITY COMPANY
BY THE GRACE OF ALMIGHTY GOD
THE PRESIDENT OF THE REPUBLIC
Considering : a. that the national economy, which is implemented based on economic democracy with the principles of community, fair efficiency, sustainability, environmental awareness, independence, and safeguards for balanced progress and national economic unity, needs to be supported by a strong economic institutions in the context of creating prosperity for community;
b. that in the context of increasing the national economic development and at the same time providing a strong foundation for the business world in facing the development of world economy and progress in science and technology in the coming globalization era, a support is needed to enact a law that regulates limited liability company which can assure the implementation of a conducive climate for the business world;
c. that a limited liability company as one of the national economic development pillars, need to be given a legal ground in order to accelerate more of the national development composed as a mutual effort based on the principle of family spirit;
d. that Law No. 1 of 1995 regarding Limited Liability Company is considered no longer in accordance with the legal developments and needs of society, so that it is deemed necessary to be replaced with a new law;
e. that based on the consideration as referred to in letter a, letter b, letter c, and letter d, it is necessary to form a Law on Limited Liability Company ;
In View of : Article 5 paragraph (1), Article 20, and Article 33 of the 1945 Constitution of the Republic of
With the unanimous approval of :
THE HOUSE OF REPRESENTATIVE
And
THE PRESIDENT OF THE REPUBLIC
HAVING RESOLVED
To stipulate : A LAW ON LIMITED LIABILITY COMPANY
CHAPTER I
GENERAL PROVISIONS
Article 1
In this law the following terms have the following meanings:
1. Limited Liability Company, hereinafter referred to as the Company, means a lega
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