AFOUNDATION is a legal entity consisting of separate assets set aside to achieve specific objectives in the social, religious, and humanitarian fields, and which has no members.
In Indonesia, foundations are strictly regulated by Law No. 16 of 2001, which was subsequently amended by Law No. 28 of 2004 on Foundations.
Because of their non profit nature, all profits or surplus funds must be reinvested into the foundation’s funds to finance its programs, rather than distributed to its board members or founders.
Final Legal Documents for Foundation Establishment Once all bureaucratic procedures are complete, the foundation will receive a bundle of official documents, including:
1.Foundation Deed of Establishment: Prepared by a notary, containing the Articles of Association, the names of the organizational structure (Advisory Board, Executive Board, Supervisory Board), and the purpose and objectives of the foundation.
2.Ministry of Law and Human Rights A pproval Letter: A ministerial decision stating that the foundation has been officially established as an independent legal entity.
3.FoundationTaxIDNumber (NPWP) & Tax Clearance Certificate(SKT): The Tax ID Number issued in the name of the foundation as a legal entity for tax reporting and financial transparency purposes. 4.Business Identification Number(NIB): Even though it is a nonprofit organization, the foundation is still required to obtain an NIB from the OSS RBA system if it operates any operational units (such as establishing schools, orphanages, clinics, or training institutions)