Document background
The Share Acquisition Agreement is a crucial document used in Indonesian corporate transactions for the transfer of ownership in companies. It is particularly important given Indonesia's complex regulatory environment, which includes specific requirements for both domestic and foreign investments. This document is essential when acquiring shares in Indonesian companies, whether wholly or partially, and must comply with various regulations including Law No. 40 of 2007 on Limited Liability Companies, Investment Law, and where applicable, Capital Market Law. The agreement needs to address specific Indonesian requirements such as language requirements, mandatory governing law provisions, and regulatory approvals from bodies such as BKPM for foreign investment. It typically includes detailed provisions on purchase price, payment mechanisms, conditions precedent, warranties, and both pre and post-completion obligations, all structured to ensure enforceability under Indonesian law.
