Document background
The Equity Investment Contract serves as the primary documentation for equity investments in Indonesian companies, whether involving domestic or foreign investors. It is essential for transactions where an investor acquires a stake in a company through direct equity participation. The document must comply with Indonesian investment laws, including Law No. 40 of 2007 on Limited Liability Companies and Law No. 25 of 2007 on Investment. It typically includes detailed provisions on investment structure, shareholder rights, governance mechanisms, and regulatory compliance requirements. The contract is particularly important in the context of Indonesia's complex regulatory environment, which includes specific requirements for foreign investment, sector-specific ownership limitations, and mandatory corporate governance structures.
