Guide to Establishing a Foundation by Foreigners

Foundations not only can be established by Indonesian citizens or Indonesian legal entities. Several foundations in Indonesia were founded by foreigners, with different goals and activities.

The following are the guidelines for establishing a Foundation based on Act Number 16 of 2001 concerning Foundations and Government Regulation Number 63 of 2008 concerning the Implementation of the Law on Foundations:

1. The identity of the founder proofed by a valid passport.
2. Separation of part of the founder’s personal assets which are used as the initial assets of the foundation in the amount of at least Rp. 100 million proofed by the founder’s statement letter regarding the validity of the assets.
3. A statement from the founder that the activities of the established foundation do not harm the people, nation and state of Indonesia.
4. Members of the foundation’s management are also required to reside in Indonesia.

Foundation management members who are foreign nationals must also have a permit to conduct activities or business in Indonesia and have a Temporary Stay Permit (KITAS).

Foundation Activities

Foundations are only permitted by law regarding the social, religious, and humanity fields. Likewise, in the case of a Foundation has a business activity, it is not allowed to invest more than 25% of the assets of the Foundation, the results of the activities are not allowed to be accepted by the Governing Board (Pembina), Supervisory Board (Pengawas), and Executive Board (Pengurus) of the Foundation.

Requirements for Documents and Information needed/prepared to Establish a Foundation:

1. Foundation Name.
2. Amount of Foundation’s Initial Wealth.
3. Proof of Capital/Assets as the Foundation’s initial wealth.
4. Copy of Identity Card (Kartu Tanda Penduduk/KTP) / Passport of the Founders.
5. Copy of KTP of Governing Board, Supervisory Board, and Executive Board.
6. Copy of Personal Tax ID Number (Nomor Pokok Wajib Pajak/NPWP) specifically for the chairman of the Foundation.
7. Copy of proof of foundation office (in the form of Land and Building Tax Letter (Surat Pemberitahuan Pajak Terhutang Pajak Bumi. Bangunan/ SPPT PBB) or Lease Agreement).
8. Cover letter from RT/RW according to the domicile of the Foundation.
9. Description of Foundation activities.
10. Management structure.

Documents that must be done to Establish a Foundation:

1. Foundation Establishment Deed.
2. Decree of the Ministry of Law and Human Rights of the Republic of Indonesia.
3. Certificate of Domicile.
4. Certificate of Registration/NPWP.
5. Foundation Bank Account.
6. Announcement in the Official Gazette of the Republic of Indonesia from the State-owned general Printing company of the Republic of Indonesia.
7. Foundation Registration Certificate.

Completion period:

1. 2 week working days for deed and decree.
2. 2 Months working days (Estimated) for other permits.

Source: indo-ned consultancy Legal Team.


The information provided here is based on our long experience. The process or requirement may vary depending on the specific facts and conditions. Besides, the law and regulations in Indonesia subject to frequent changes. Please contact us as your consultant to get an up to date information and accurate advice. More Information click here and You can also follow our social media accounts to see the latest information posts. please click on the following links: FacebookInstagramLinkedin, and Twitter.

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