Investment growth in Indonesia can not be separated from Indonesia's role as a member of the World Trade Organization (WTO). World Trade Organization (WTO) as a global organization that regulates international trade in the world is very helpful in the smooth trade between countries with rules that have been agreed between the member states. Indonesia as a WTO member countries are also required to obey the rules of international trad. One of the most influential in the free trade that is in terms of investment freedom, especially in the field of telecommunications and investment banking telecom and banking arrangements which become part of the WTO world trade due to the economic globalization has put aside as telecommunication and banking services traded as well as a vital means for activities other services . As a result of the swift flow of investments in telecommunications, it is possible for the particular shareholding company incorporated (Limited Liability Company). In Indonesia itself, cross holding is applied by several business groups such as Temasek, Telkom and Indosat as well as Lippo Group. With this cross holding, in general, one company can own and control the others through share holding (either major or leading shares). Reason entrepreneurs do cross holding is with the control of another company can increase the effectiveness and productivity of the company for the benefit. With the globalization of trade has also resulted in the amount of foreign involvement in the business sectors in Indonesia, particularly in the fields of banking and will result in the magnitude of potential stake in the field. The problems discussed in this thesis are how is the regulation of cross holding in limited company according to Act Number 40 of the year 2007? The process of how share cross holding exist? How is the impact of share cross holding in limited company on business activity especially in the field of telecommunications and banking? What is the impact of cross holding in the Limited Liability Company on the business activities especially in the field of telecommunications and banking ? What about foreign
involvement in cross holding of shares ? This study method, research are base on normative law research
by using normative juridical approach. Source of data were the secondary data in forms of primary, secondary and tertiary legal materials obtained through library research. The data obtained were then qualitatively analyzed. The result of this study shows that the law on limited liability company has not clearly regulated cross holding, and so far, the regulation on cross holding is only found in the article explanation. According to the explanation of article 36 of law on limited liability company, cross holding is a condition in shares have been directly or indirectly owned by the leading company. In relation to giving out of shares is an attempt of capital raising, therefore, the requirement to deposit for the shares must be born to the other parties. It means that a company must not give out its hares to be self-owned. Generally, cross holding can occur through the process of shares transfer (agreement, laws, judge’s decision). The process that results in transfer of ownership such as merging, intergrating, taking over and saparating done either by close company, open company, grouped company (close or open) is also regulated in limited liability company. The impacts of cross holding on business activities in either close or open limited liability company and on two or more integrating companies to be under one ownership and the same management are that horizontal integration causes the decrease and the loss of ompetition, vertical integration causes the ability of company to determine the price, and conglomerate integration will bring an impact to the macro economy because of the fall of small-scale business. The difference lies on the scale of the impact of cross holding (big or small) and cross holding can be easily seen in the open limited liability company. |