In the event that the share capital payment is made in another form, the valuation of the share capital payment is determined based on the fair value determined in accordance with market prices or by experts who are not affiliated with PT . The deposit of shares in the form of immovable property must be announced in 1 or more newspapers, within 14 days after the deed of establishment is signed or after the General Meeting of Shareholders (“GMS”) decides on the deposit of the shares.

In accordance with Article 34 paragraph (1) of the PT Law above, deposits of share capital in a PT can be made in other forms, in this case land.

The land that will be deposited as share capital must be certified. Because a certificate is a proof of title which acts as a strong means of proof regarding the physical data and juridical data contained therein, as long as the physical data and juridical data are in accordance with the data in the measurement letter and land rights book in question. Then the fair value deposited into the Company will be adjusted to the results of the assessment from the Public Appraisal Services Office which is independent and not affiliated with PT to carry out an appraisal of the land so that a fair value is obtained according to market price.

The fair value of paid share capital is determined in accordance with market value. If market value is not available, fair value is determined based on the valuation technique that best suits the characteristics of the deposit, based on the best relevant information. What is meant by “unaffiliated expert” is an expert who does not have:

1. family relationships due to marriage or descent up to the second degree, both horizontally and vertically with employees, members of the Board of Directors, Board of Commissioners, or shareholders of PT;
2. relationship with PT due to the similarity of one or more members of the Board of Directors or Board of Commissioners;
3. control relationship with PT, either directly or indirectly; and/or
4. shares in PT of 20% or more.

Then, after that, approval for the deposit of shares in the form of land must be submitted at the GMS and followed by an announcement in 1 or more newspapers, within 14 days after the GMS. The purpose of announcing it in the newspaper is to make it known to the public and to provide an opportunity for interested parties to submit objections to the transfer of the object as a share capital contribution, for example if it turns out that the object does not belong to the depositor.

Legal basis :

1. Law Number 40 of 2007 concerning Limited Liability Companies ;
2. Law Number 11 of 2020 concerning Job Creation ;
3. Government Regulation Number 24 of 1997 concerning Land Registration .

References:

1. Hukumonline.com