Work

Problematics of Individual Company as Legal Entity in Terms of Indonesian Omnibus Law on Job Creation Law

Year: 2025

Type: article

Abstract: The introduction of Individual Companies, which can be established by a single individual, aims to streamline company management and legal recognition while enhancing Indonesia's investment climate. This study seeks to address two critical questions: How is the concept of an individual legal entity regulated under the Job Creation Law? And what is the legal position of the General Meeting of Shareholders (GMS) in a sole proprietorship that constitutes an individual legal entity? Employing a normative or doctrinal legal research approach with a regulatory focus, this study revealed that the concept of an Individual Company aligned with institutional theory. Both agreement and institutional theories were applied in managing such companies. The study further highlighted that GMS decisions in an Individual Company were executed as shareholder resolutions, which carried the same legal weight as GMS decisions in traditional companies, while the role of commissioners was effectively eliminated.

Source: Jurnal Penegakan Hukum dan Keadilan

DOI: 10.18196/jphk.v6i1.24181

Authors: Andistya Pratama, Dwi Ratna Indri Hapsari, Rahmi Fuji Astuti Harahap

Institutions: University of Indonesia, Universitas Muhammadiyah Malang, The University of Tokyo

Language: English

Topic: Indonesian Legal and Regulatory Studies

Subfield: Political Science and International Relations

Field: Social Sciences

Domain: Social Sciences

SDGs: Peace, justice, and strong institutions, Decent work and economic growth

Open Access status: diamond

OpenAlex ID: W4408784184

FWCI:

Cites:

Cited by:

Related to: 10