The new law requires all foundation management to adjust their deeds and articles of association to be in accordance with the new provisions

Oct 13, 2025 by magicalceylontours.com 138 views

Juridical Review of the Position of the Foundation's Wealth after the Enactment of Law Number 28 of 2004 concerning Amendments to Law Number 16 of 2001 concerning Foundations

Introduction

The enactment of Law Number 16 of 2001, amended by Law Number 28 of 2004 concerning Foundation, as well as Government Regulation Number 63 of 2008 concerning the Implementation of the Foundation Law, has brought significant changes to the management of foundations in Indonesia. The new law requires all foundation management to adjust their deeds and articles of association to be in accordance with the new provisions. However, many foundation officials have ignored this obligation and continue to carry out their foundations without making the required adjustments. This study aims to provide a juridical review of the position of the foundation's wealth after the enactment of the new law.

Background

The Foundation Law, which was enacted in 2001, has undergone several amendments, including Law Number 28 of 2004. The new law has introduced significant changes to the management of foundations, including the requirement for foundation management to adjust their deeds and articles of association to be in accordance with the new provisions. The deadline for making these adjustments was October 6, 2008. However, many foundation officials have ignored this obligation and continue to carry out their foundations without making the required adjustments.

Methodology

This study uses a normative juridical approach, which focuses on reviewing the principles and provisions of related law. The research is descriptive analytical, aiming to describe existing legal facts and provide solutions to the problems faced. The study aims to provide a comprehensive understanding of the legal status of the foundation's wealth after the enactment of the new law.

Foundation Management Responsibilities

The accountability of the foundation management for the foundation that was established before the enactment of the Foundation Law is to make adjustments to their deeds and the articles of association to be in accordance with the new provisions. This process must be carried out through a notarial deed and submitted to the Directorate General of General Law Administration (AHU), by attaching all formal conditions regulated by the Law. The foundation management must also ensure that all necessary documents are in order and that the adjustments are made in accordance with the new provisions.

Legal Status of the Foundation Wealth

Regarding the legal status of the wealth of the foundation established before the implementation of the new law, if the deed of establishment and the articles of association is not adjusted, the foundation is considered "no" or illegal in accordance with Article 71 paragraph (4) of the Foundation Law and Article 39 PP No. 63/2008. This means that the foundation's wealth is not protected by the law and can be seized by the state. The foundation management must take immediate action to adjust their deeds and articles of association to avoid this situation.

Government Attitudes

Although the adjustment time limit has been missed, the government still provides an operational permit extension for private schools under the illegal foundation. This can be seen from the decisions issued by various government agencies at the local and provincial levels that continue to support the operations of the foundation. The government's attitude towards the foundation that has not yet adjusted their deed of establishment to the applicable provisions is inconsistent and has created confusion among foundation officials.

Recommendation

In dealing with this problem, several recommendations can be submitted. First, the foundation management who did not make adjustments to the deed of establishment must be responsible for calling the liquidator and liquidating their foundations, as well as handing over the wealth of the foundation to the foundation or other legal entities, or to the state. This is to ensure that the foundation's wealth is protected by the law and is not seized by the state. Second, the government is expected not to intervene too far against the freedom of the community to organize, as mandated in the 1945 Constitution. Third, it is recommended that the government revise the deadline for the deed of establishment and removes the provisions that are considered difficult in the process of establishing the foundation, so that the existing foundations do not lose their legal status.

Conclusion

The amendment to the Foundation Law has the potential to strengthen the legal position of the foundation in Indonesia, as long as all related parties, especially the foundation management, can follow the stipulated provisions. The foundation management must take immediate action to adjust their deeds and articles of association to avoid losing their legal status. The government must also ensure that its attitude towards the foundation that has not yet adjusted their deed of establishment to the applicable provisions is consistent and does not create confusion among foundation officials.

References

Law Number 16 of 2001 concerning Foundations
Law Number 28 of 2004 concerning Amendments to Law Number 16 of 2001 concerning Foundations
Government Regulation Number 63 of 2008 concerning the Implementation of the Foundation Law
Article 71 paragraph (4) of the Foundation Law
Article 39 PP No. 63/2008

Keywords

Foundation Law
Amendments to Law Number 16 of 2001 concerning Foundations
Government Regulation Number 63 of 2008 concerning the Implementation of the Foundation Law
Foundation management responsibilities
Legal status of the foundation's wealth
Government attitudes towards the foundation
Recommendation for the foundation management and the government.
Frequently Asked Questions (FAQs) about the Juridical Review of the Position of the Foundation's Wealth after the Enactment of Law Number 28 of 2004 concerning Amendments to Law Number 16 of 2001 concerning Foundations

Q: What is the purpose of the juridical review of the position of the foundation's wealth after the enactment of Law Number 28 of 2004?

A: The purpose of the juridical review is to provide a comprehensive understanding of the legal status of the foundation's wealth after the enactment of the new law and to provide solutions to the problems faced by foundation management.

Q: What are the key changes introduced by Law Number 28 of 2004 concerning Amendments to Law Number 16 of 2001 concerning Foundations?

A: The key changes introduced by Law Number 28 of 2004 include the requirement for foundation management to adjust their deeds and articles of association to be in accordance with the new provisions, the introduction of a new deadline for making these adjustments, and the provision of a new framework for the implementation of the Foundation Law.

Q: What is the deadline for making adjustments to the deeds and articles of association of foundations established before the enactment of the new law?

A: The deadline for making adjustments to the deeds and articles of association of foundations established before the enactment of the new law was October 6, 2008.

Q: What happens if the foundation management fails to make adjustments to the deeds and articles of association of their foundation?

A: If the foundation management fails to make adjustments to the deeds and articles of association of their foundation, the foundation is considered "no" or illegal in accordance with Article 71 paragraph (4) of the Foundation Law and Article 39 PP No. 63/2008. This means that the foundation's wealth is not protected by the law and can be seized by the state.

Q: What is the role of the government in ensuring that foundation management comply with the new provisions?

A: The government has a role in ensuring that foundation management comply with the new provisions by providing guidance and support to foundation management, and by taking enforcement action against foundation management that fail to comply with the new provisions.

Q: What are the consequences of the government's inconsistent attitude towards the foundation that has not yet adjusted their deed of establishment to the applicable provisions?

A: The government's inconsistent attitude towards the foundation that has not yet adjusted their deed of establishment to the applicable provisions has created confusion among foundation officials and has undermined the effectiveness of the new provisions.

Q: What recommendations can be made to the foundation management and the government to address the problems faced by foundation management?

A: Recommendations that can be made to the foundation management and the government include the need for foundation management to take immediate action to adjust their deeds and articles of association to avoid losing their legal status, the need for the government to revise the deadline for the deed of establishment and removes the provisions that are considered difficult in the process of establishing the foundation, and the need for the government to ensure that its attitude towards the foundation that has not yet adjusted their deed of establishment to the applicable provisions is consistent and does not create confusion among foundation officials.

Q: What is the significance of the juridical review of the position of the foundation's wealth after the enactment of Law Number 28 of 2004?

A: The juridical review of the position of the foundation's wealth after the enactment of Law Number 28 of 2004 is significant because it provides a comprehensive understanding of the legal status of the foundation's wealth after the enactment of the new law and provides solutions to the problems faced by foundation management. It also highlights the need for the government to revise the deadline for the deed of establishment and removes the provisions that are considered difficult in the process of establishing the foundation.

Q: What are the implications of the juridical review of the position of the foundation's wealth after the enactment of Law Number 28 of 2004 for the foundation management and the government?

A: The implications of the juridical review of the position of the foundation's wealth after the enactment of Law Number 28 of 2004 for the foundation management and the government are that the foundation management must take immediate action to adjust their deeds and articles of association to avoid losing their legal status, and the government must revise the deadline for the deed of establishment and removes the provisions that are considered difficult in the process of establishing the foundation.

Q: What are the future directions for the juridical review of the position of the foundation's wealth after the enactment of Law Number 28 of 2004?

A: The future directions for the juridical review of the position of the foundation's wealth after the enactment of Law Number 28 of 2004 include the need for further research on the implementation of the new provisions, the need for the government to provide guidance and support to foundation management, and the need for the foundation management to take immediate action to adjust their deeds and articles of association to avoid losing their legal status.