Law Number 21 of 2011 on Financial Service Authority

OJKFinancial Services Authority or commonly abbreviated as OJK, is an independent institution and free from the intervention of other party, which has the functions, duties, and authority to regulate, supervise, examine, and investigate against the activities in the financial services sector, which are the activities in banking, capital markets, insurance, pension funds, funding institutions and other financial service institutions.

In performing its duties, OJK can coordinate with related financial service institutions and OJK is authorized to make regulations in the field of related financial services, for example OJK can coordinate with Bank of Indonesia to make regulation of supervision of banking.

OJK is domiciled in the capital city of the State, but OJK may also have office inside and outside the territory of the Republic of Indonesia which was made according to its needs.

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Investing in the debt market – The investment law and essential steps to follow

It is a great way to invest your money in the debt market since you will be able to make good amount of return without taking unnecessary risk. There are several options available for the investors to invest in the debt instrument and so, it is essential to research thoroughly every money-making option before investing your hard-earned dollars into it. However, if you still fall into debt problems, you may then take the help of suitable debt relief programs and come out of debt burden.

The investment law in the United States

The investment law in the United States is made up of three legal sources. They are the international law, investment contracts made between the states and the investors and the domestic law. The investment law, also called investment treaties, is the major lawful instrument. The investment contract is made between the states and the investors for the existing and future domestic law or can be written in order to overrule the applicable domestic law. The domestic law controls both the domestic as well as the foreign investment.

6 Ways to make investment in the debt market

Read on to know about the 6 ways to invest in the debt market.

1. Choose the type of debt instrument where you want to invest – While investing in the debt market, you need to choose the type of debt instrument where you want to invest. You will not find any single debt market but there are several companies, organizations seeking capital, government agencies and different investors that are looking for a good return on their investment.

2. Open an account to buy debt security from the US government – You may open an account so that you can buy debt security from the US government. This account can be opened free of cost and you can link it with your bank account so that the money can be transferred easily. After the account gets opened, you need to log in to your account, go to the “Purchase” page and select the Treasury notes, Treasury bills or Treasury bonds that you want to buy.

3. Explore the risks involved with each type of debt investment – You need to explore the risks involved with each type of debt investment while investing your dollars in this market. The prospect of debt investment returns differs from zero in the U.S. Treasury market to ample in high-yield bonds. These are also called junk bonds. The municipal bonds and the high-grade corporate bonds are found in the middle. The municipal bonds are issued by the municipalities and the states. The high-grade corporate bonds are issued by the financially sound corporations.

4. Assess the brochure of every fund very carefully – You should evaluate the brochure of every fund very carefully, mainly the part that is associated with the charges and expenses. The rate of interest charged on the bond funds is usually low and so the high fees and the expenses may really seem to be a matter of concern for you.

5. Call up various mutual funds to enquire about bond mutual funds – You need to call up various mutual funds and enquire about the bond mutual funds that they want to offer. Most of the mutual-fund families provide a minimum of some kind of investment. You may ask for a brochure of various bond funds to know more about them.

6. Fill out the application for the mutual fund you want to invest – You will have to fill out the application form for the mutual funds where you want to invest your money. Make sure that you give your social security number since the mutual fund company requires this information to report the earnings that you make to the IRS. Once you complete the application form, submit it together with your check for temporary deposit to the address that has been provided in the application form.

By following the above ways, you will be able to invest your dollars in the debt market.

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Overview of foreign investment law in indonesia

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Transfer of Ownership of Foreign Shares

Background

The application for transfer of ownership of foreign shares can be submitted either by foreign investment company or by domestic investment company. The transfer of ownership of foreign shares shall be conducted whenever there are changes in the company’s capital that cause some or all the company’s capital into a foreign capital or domestic capital.

The Transfer of Ownership of Foreign Shares for Domestic Investment Company

The transfer of ownership of foreign shares for domestic investment company occurs when domestic investment company conduct a change in the company’s capital as a result of the entry of foreign capital that causes some or all company’s capital become foreign capital. In the event that the transfer of ownership of foreign shares, the company does not have Principle License and does not have the Business License or has not obtained the Principle License, Article 23 paragraph 1 of Peraturan Kepala BKPM No.12 year 2009 (“Perka BKPM 12/2009”) requires the company to conduct Registration of the company’s investment as a result of the changes to PTSP BKPM.

Upon the application of the Registration, PTSP BKPM could issue: Read the rest of this entry »

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Types of Licenses and the Period of Establishment

Background

BKPM held 2 (two) types of services on investment activity for the investor in the territory of Indonesia, which is licensing service and non-licensing service. Based on Article 1 paragraph 6 of Peraturan Kepala BKPM No.12 year 2009 (“Perka BKPM 12/2009”), what is included in the licensing services is any type of agreement to conduct investment which is issued by the Government and local government who has authority in accordance with the legislation. Guidelines for the Application of Investment Licensing other than stipulated in the Perka BKPM 12/2009, also stipulated in the provisions issued by technical agency/the head of related LPND (Lembaga Pemerintah Non Departemen), governor and regent/mayor.

Type of Investment Licenses

Article 13 paragraph 2 of Perka BKPM 12/2009 mentioned types of investment licenses, as follow: Read the rest of this entry »

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