1.

PT ABC is a successful Indonesia limited liability company engaging in a

film promotional facility (such as advertisement poster, banner,
pamphlet, giant banner, folder, etc). to expand its business, it has
decided to raise funding from overseas.
Further, PT ABC and CBA, Pte. Ltd ( a corporation established under the
laws of the Republic of Singapore) have entered into an MoU, which
principally agreed on an equity investment/ participant by CBA Pte Ltd
in the capital of PT. ABC amounting to US$ 10milion or equivalent to
51% of the paid up and issued capital of PT. ABC
QUESTION :
a. Is it possible for the proposed investment/equity investment to be
implemented ? please explain your reason !
b. What are the mandatory requirements that need to be followed and
obtained in order to effectuate such investment/equity participant ?
and what is the sequence ?
2. Please translate into Bahasa Indonesia
If any provision of this agreement or the application there of to any
situation or circumstance shall be invalid or unenforceable, the
remainder of this agreement shall not be affected, and each remaining
provisions shall be valid and enforceable to the fullest extent. In the
event of such partial invalidity, the parties agree to in good faith
replace any such legally invalid or unenforceable provision with valid
and enforceable provisions that, from an economic viewpoint, most
nearly and fairly approach the effect of the invalid or unenforceable
provision
3. Tana has been married to santoso since 11 April 2010. On 16 april
2015, tana would like to take a loan from a bank, whereby one of the
requirements for the loan to be granted to Tana is for her to provide a
security over her house and car which she purchased on 3 March 2010
and 3 March 2014, respectively, in favour of the bank
QUESTION :
a. Under Indonesian law, what types of security that can commonly be
granted over houses and cars ? and what are the mandatory
requirements that need tobe fulfilled to have such securities
perfectly effected ?
b. What is the definition of marriage under the prevailing law in
Indonesia ? does tana need santosos consent to grant a security
over the house and car ? would it make any difference if tana and
santoso have a prenuptial agreement ?

4. On 16 May 2014, Ray made an agreement with Kai to sell his iPhone 5S
to Kai in the amount of Rp 4 milion. On the date of the agreement, Ray
delivered the iPhone to Kai but Kai has not yet paid the Rp. 4 milion to
Ray. Accordingly, Kai now owes Rp. 4 milion to Ray, and Ray now owns
receivables towards Kai in the amount of Rp 4 milion

1. PT ABC WHICH DOMICILE IN Bekas, on 6 January 2011 ordered 7000

meter units of water from PT XYZ. PT XYZ has sent all such ordered
goods and has sent an invoice to PT ABC. However, PT ABC did not
make any payment tp PT XYZ, not with standing the fact that the
invoice has due on 18 March 2011
Further, PT XYZ and PT ABC on 11 September 2011 entered imto
Debt Settlement Agreement, stating that basically PT ABC
covenants to make payment in stages to PT XYZ starting on 30
September 2011 until 31 Desember 2011. However, PT ABC until
now has not fulfilled its total obligation amounting to Rp
1,000,000,000,- (one billion rupiah) despite that the PT XYZ has
delivered various warning letters to the PT ABC to fulfills its
obligations. In other side, PT ABC also has a loan to another party on
another issue.
If you were appointed as the attorney of PT XYZ, then :
a. What alternative legal action which may be taken by PT XYZ
against PT ABC to pursue its payment? Please provide us with 2
alternative legal action. What the legal basis and the which court
such each of legal action should be submitted?
b. If PT ABC in the first court leval became a losing party on the
above case, what the legal remedy available fot PT ABC against
the court decision in the first level until the decision become final
and binding ?
2. PT Yamasa Indonesia us a company established under the law of
Indonesia and engaging in the business of manufacturing of
motorbike. The company was established in 1990 and has been
continually in operation at least for the last 20 years. Now daysit has
conducted its commercial production in full capacity, by assembling
of more than 100 motobike per day. Currently PT Yamsa Indonesia
has a head office in Jakarta and three branch office located
respectively in Medan, Surabaya, and Makassar. While their factory
site (production line ) and warehouse (godown) are located at
Cibitung, west java. Their products are widely distributed and sold in
almost all part in Indonesia through their sole distributor and
agents. Recently they are planning to expand the production
capacity of their factory by setting up new factory and production

line. For this purpose they are now seeking for the loan financing
facility from PT. Bank Mutiara Tbk. They expect to be able to obtain
the loan at the minimum sums of USD 50 milion, while their assets
have the book value of approximately USD 100 milion, pursuant to
their latest audited financial statement of 2010.
Based on the above, please describe what are the collaterals and
securities that PT Yamasa can provide to the bank (at least 3)? And
how thse collaterals should be encumbered under prevailing laws
and regulation? Does it need to be documented in a notarial deed
from? Does certain actions (such as filling and registration) need to
be done to perfect the security rights of the bank? Also kindly
indicate if there is any corporate approval be needed by the
company to encumber its assets ?
3. XYZ is planning to establish a commercial vehicle manufacturing
plant in Indonesia. Furthermore, XYZ also intends to establish a
manufacturing company which can manage the manufacturing plant
and establish a sales/wholesale distributor company in Indonesia
(CollectivelyProject)
In relation to the project, XYZ would like to request your assistance
in responding following 3 inquiries in relation to Indonesian law. It
would be appreciated if you could provide answers for following 3
inquiries :
a. XYZ has a plan to incorporate both a manufacturing company
and a sales/wholesale distributor company in Indonesia and plan
to appoint ine officer to be a representative director/president of
both the manufacturing company and the sales/wholesale
distributor company. If XYZ has such plan, are there any legal
risks
involved
for
having
the
same
representative
director/president for both companies? If so, please explain to us
details of such legal risk.
b. As far as we understand, under Indonesian law, once XYZ
establishes manufacturing company, such manufacturing
company can only sell to distributor and will not be able to
directly sell to dealers and end-users. This correct understanding
of Indonesian law in relation to a manufacturing company in
Indonesia?
c. Under Indonesian law, a foreign-owned Indonesian company
cannot own land in Indonesia but can only acquire the right to
build and use land in Indonesia. If this understanding is correct,
please explain to us relevant laws and regulations which provide
such limitation on foreign companys ownership over land.

4. PT A Tbk intends to buy an aircraft from PT B. PT A is owned by PT C

(60%), PT D (25%)and PT E (15%). Mr. Y owns a 95% stake at PT B,
who is at the same time acts as the presidents director of PT A Tbk
and the controlling shareholder of PT C. If you are acting as the legal
counsel of PT A Tbk, please describe the procedures need to be
taken to conduct the aforementioned transaction in comprehensive,
yet concise manner.