Management of Foundations as per Regulation No. 16 of 2001 jo. Regulation No. 28 of 2004 on Foundations

Over a long period of time, many foundations have been established in the community without a clear legal framework, making the establishment of foundations more prone to misuse or deviation from the actual vision and mission of the foundations (i.e., social, religion, and humanity). To prevent the constantly occurring cases of the misuse of foundations and create administrative order, the government issued the Regulation No. 16 of 2001 on FOUNDATIONS. However, as the regulation had led to many different interpretations, resulting in its amendment to Regulation No. 28 of 2006, which was in effect as of October 6 2005. The consequence of the implement of such regulation is that all foundations, including the existing and new ones, have to adhere to the provisions stipulated in the Regulation on Foundations. However, in actuality, many founders of the foundations established before the implementation of the regulation have yet to be aware and understand their obligations to adjust their Foundation budget in accordance with the prevailing law.