New Regulation on Cooperation Between Private Foreign Entities and Regional Governments

Editorial Team

Minister of Interior Affairs (“Minister”) has issued Regulation No. 74 of 2012 on Guidelines for Cooperation Between Regional Governments and Private Foreign Entities (“Regulation”), which  establishes and promotes a framework for cooperation between regional governments and foreign private entities (Art. 2, Regulation).

The Regulation applies to regional governments and foreign private entities. Pursuant to Article 1 (6), foreign private entity (badan swasta asing - “BSA”) is defined as a legal entity that is established in a foreign country and is fully owned by a foreign citizen.