Foundation/ Yayasan | Legal Entity

Unlock the Power of Giving: Establish a Yayasan (Foundation) in Indonesia

Are you passionate about making a difference in Indonesia? Whether it’s promoting education, advancing social welfare, or protecting the environment, a Yayasan (Foundation) is your gateway to creating meaningful, long-lasting impact. As a legal entity recognized in Indonesia, a Yayasan can be established by both Indonesian and foreign individuals or entities, offering a structured and compliant way to pursue your philanthropic goals.

A Yayasan is a non-profit organization designed to serve a specific purpose, making it the perfect vehicle for driving positive change. Here’s why establishing a Yayasan in Indonesia is a game-changer for your mission:

Why Choose a Yayasan?

1. Purpose-Driven Impact:
   A Yayasan is established to fulfill a specific purpose, such as advancing education, improving social welfare, or protecting the environment. Your foundation’s mission must align with Indonesian laws and regulations, ensuring your efforts contribute to the nation’s development.
2. Legal Recognition and Autonomy:
   A Yayasan is a separate legal entity in Indonesia, giving it the authority to own property, enter into contracts, and conduct activities related to its purpose. This legal status ensures your foundation operates independently and professionally.
3. Global and Local Funding Opportunities:
   A Yayasan can receive funding from both Indonesian and foreign sources. While foreign donations are welcome, they may be subject to specific regulations, so it’s essential to stay compliant. Your foundation can also explore partnerships with international organizations, governments, and private donors to amplify its impact.
4. Tax Benefits:
   While a Yayasan is subject to Indonesian taxation, it may qualify for tax exemptions or incentives depending on its activities and purpose. This makes it a cost-effective way to channel resources toward your cause.
5. Structured Governance:
   A Yayasan is governed by a Board of Trustees, responsible for overseeing operations, ensuring compliance with its purpose, and maintaining transparency. This structure builds trust with stakeholders and ensures your foundation stays true to its mission.

Key Steps to Establishing a Yayasan in Indonesia

1. Define Your Purpose:
   Clearly articulate the mission of your foundation. Whether it’s supporting education, healthcare, or environmental conservation, your purpose must align with Indonesian laws and contribute to the public good.
2. Appoint a Board of Trustees:
   Assemble a dedicated team of individuals who will oversee the foundation’s operations. The Board of Trustees plays a critical role in ensuring compliance and driving the foundation’s success.
3. Prepare Required Documents:
   • Deed of Establishment (Akta Pendirian) prepared by a notary.
   • Articles of Association (AD/ART) outlining the foundation’s purpose, structure, and governance.
   • Proof of initial funding or assets.
4. Obtain Legal Approval:
   Submit your documents to the Ministry of Law and Human Rights (Kemenkumham) for approval. Once approved, your Yayasan will be officially recognized as a legal entity.
5. Register for Tax and Operational Compliance:
   • Obtain a Tax Identification Number (NPWP).
   • Register with the relevant authorities to ensure compliance with tax and operational regulations.

Regulations You Need to Know

1. Law No. 16 of 2001 on Foundations:
   This law governs the establishment, operation, and dissolution of foundations in Indonesia. It outlines the legal requirements, governance structure, and permissible activities for Yayasans.
2. Tax Regulations:
   • Income Tax (PPh): Foundations are subject to income tax but may qualify for exemptions if their activities align with social, religious, or educational purposes.
   • Value-Added Tax (PPN): Certain activities may be exempt from VAT, depending on the foundation’s purpose.
3. Foreign Funding Restrictions:
   Donations from foreign sources may require approval from the Ministry of Law and Human Rights or other relevant authorities. Ensure all foreign funding complies with Indonesian regulations.
4. Reporting Requirements:
   Foundations must submit annual reports to the Ministry of Law and Human Rights, detailing their activities, financial statements, and compliance with their stated purpose.

Why Indonesia?

Indonesia is a land of opportunity, with a growing economy and a vibrant culture. By establishing a Yayasan here, you can:

• Make a Difference: Address critical social, educational, and environmental challenges.
• Build Trust: Gain recognition as a credible and compliant organization.
• Expand Your Network: Collaborate with local and international partners to amplify your impact.

Your Next Steps

Establishing a Yayasan in Indonesia is a rewarding journey, but it requires careful planning and compliance with local regulations. Partner with legal and regulatory experts to navigate the process seamlessly and ensure your foundation is set up for success.

Start your legacy today. Create a Yayasan in Indonesia and turn your vision into action.

Together, we can build a brighter future for Indonesia. Let’s make it happen! 🌟