Document background
The Investment Agreement serves as the primary legal framework for structuring investments in Indonesian companies, whether from domestic or foreign sources. It is essential for transactions ranging from venture capital and private equity investments to strategic corporate investments, providing comprehensive coverage of investment terms, shareholder rights, and governance structures. The document must comply with Indonesian investment laws, including Law No. 25/2007 on Investment and Presidential Regulation No. 10/2021 on Investment Business Fields, while addressing specific sector restrictions and foreign ownership limitations. This agreement is particularly crucial in Indonesia's evolving business landscape, where increasing foreign investment necessitates careful attention to regulatory compliance, corporate governance, and investor protection mechanisms. The document typically includes detailed provisions for capital structure, board composition, reserved matters, and exit rights, all tailored to meet both Indonesian legal requirements and international investment standards.
