Document background
The Share Investment Agreement is a crucial document used in Indonesian corporate transactions when an investor (domestic or foreign) seeks to acquire shares in a target company. It must comply with Indonesian investment laws, including Law No. 40 of 2007 and Law No. 25 of 2007, and takes into account foreign ownership restrictions in certain sectors. The agreement is particularly important in Indonesia's growing economy where foreign direct investment plays a significant role. It typically includes detailed provisions on investment terms, shareholder rights, corporate governance, and regulatory compliance. The document serves as both a transaction instrument and a future reference for the ongoing relationship between shareholders, incorporating necessary protections and obligations specific to Indonesian business law. It requires careful drafting to ensure enforceability under Indonesian jurisdiction while meeting international investment standards.
