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8 Lentera Hukum 1 (2021)

handle is hein.journals/lenth8 and id is 1 raw text is: Lentera Hukum, Volume 8 Issue 1 (2021), pp. 1-22
ISSN 2355-4673 (Print) 2621-3710 (Online)
https://doi.org/10.19184/ejlh.v8i1.21946
Published by the University of Jember, Indonesia
Available online 24 April 2021
Minimum Authorized Capital After the Enactment
ofJob Creation Law: Status Quo, Controversies,
and Road Ahead
Kania Jennifer Wiryadi*
University ofIndonesia, Indonesia
Bayu Novendra
University ofIndonesia, Indonesia
ABSTRACT: In a limited liability company, capital becomes one of the primary elements.
However, the regulation regarding capital in Indonesia has changed several times, as its latest
concern on the enactment of the omnibus bill on Job Creation Law in 2020. This paper discussed
the following problems. First, what are the status quo and the development of regulations
regarding minimum capital requirements in Indonesia? Second, what are the pros and cons of
minimum capital requirement regulations and their developments in other countries? Third, what
is the minimum capital requirements regulation that suits the conditions in Indonesia? This paper
used legal research, emphasizing literature study. In so doing, the data were analyzed with the
deductive method to construct conclusions. This paper showed that each limited liability company
from the 1995 Limited Company Law, the 2007 Limited Company Law to the Job Creation
Law had various minimum capital requirements provisions that lasted to its abolishment under
the Job Creation Law. In this context, the initial policy on the minimum capital requirement was
to protect creditors. In practice, however, this policy was not effective because many other
effective alternatives to protect creditors, by encouraging transparency in corporate transactions
and offering easy access to corporate information. The dominance of micro and small business
units in Indonesia (99% of business units) explains the urgency of eliminating minimum capital
requirements regulations. The elimination of minimum authorized capital requirements is a
tremendous effort to strengthen micro and small enterprises.
KEYWORDS: Limited Liability Company, Job Creation Law, Company Law.
Copyright © 2021 by Author(s)
CCl               This work is licensed under a Creative Commons Attribution-ShareAlike 4.0 International
License. All writings published in this journal are personal views of the authors and do not
represent the views of this journal and the author's affiliated institutions.
HOW TO CITE:
Wiryadi, Kania Jennifer & Bayu Novendra, Minimum Authorized CapitalAfter the E nactment
ofJob Creation Law: Status Quo, Controversies, and Road Ahead (2021) 8:1 Lentera Hukum
1-22. DOI: <https://doi.org/10.19184/ejlh.v8i1.21946>.
Submitted: 11/01/2021 Reviewed: 13/01/2021 Revised: 20/02/2021 Accepted: 26/02/2021

* Corresponding author's e-mail: kaniawiryadi@gmail.com

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