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Advocating Legal Certainty in Status Transition of Individual Companies Exceeding MSEs Criteria to Limited Liability

Indonesian Journal of Advocacy and Legal Services · Vol. 7 No. 1 (2025) · pp. 121–148

DOI
10.15294/ijals.v7i1.22263
ISSN
2686-2611, 2686-2085
Published
2025-07-20
Publisher
Universitas Negeri Semarang
Language
eng
License
creativecommons.org/licenses/by-nc-sa/4.0

Abstract

The enactment of Law Number 6 of 2023, concerning the Stipulation of Government Regulations in Lieu of Law Number 2 of 2022 on Job Creation, introduced the Individual Company as a legal entity designed to empower Micro and Small Enterprises (MSEs). This provision enables the establishment of a company by a single individual, a departure from the traditional requirement of at least two shareholders. The Job Creation Law, supported by Government Regulation Number 8 of 2021, outlines that an Individual Company is created through a Statement of Establishment, without the need for a Notary Deed, in line with the provisions for MSEs as stipulated in Government Regulation Number 7 of 2021. However, this legal framework creates challenges when an Individual Company exceeds the MSE criteria or gains more than one shareholder. In such cases, the company must transition into a Limited Liability Company (LLC), a process that requires the drafting of a notary deed and registration through the Ministry of Law and Human Rights’ online AHU system. This research focuses on advocating for legal certainty in the status transition of Individual Companies to Limited Liability Companies, which currently involves the dissolution of the original entity before the new LLC can be formed. The lack of a clear, comprehensive legal mechanism for this transition causes significant legal uncertainty. This paper examines the gaps in the existing legal framework and proposes solutions to streamline the conversion process, eliminating the need for dissolution. By advocating for legal certainty in the status transition, this research contributes to the broader discourse on improving the General Legal Administration system, ensuring that the legal status of businesses aligns with their evolving needs, and facilitating smoother business expansion and growth.

Keywords

Collaboration network of the authors

25 authors · 80 co-authorship links · 1 across different organisations

Hover or tap a name to highlight its co-authors. Double-click to open the author's page.

  • Islamic University of Riau
  • University of Newcastle Australia
  • Affiliation unknown
  • Different organisations
  • Same organisation
  • Affiliation unknown
  • Thicker line = more joint articles · bigger circle = more articles
Show as table
Co-authorOrganisationJoint articles
Fadhel Arjuna AdindaAffiliation unknown7
David HardiagoAffiliation unknown5
Rani Fadhila SyafrinaldiAffiliation unknown4
Ridwan ArifinAffiliation unknown3
Suparto SupartoIslamic University of Riau3
John WoodwardUniversity of Newcastle Australia2
Maisa MaisaAffiliation unknown2
Teguh Rama PrasjaAffiliation unknown2
Mohd Izzat Bin Mohd Abd ShukurAffiliation unknown2
Ema RahmawatiAffiliation unknown1
Eman SuparmanAffiliation unknown1
Bambang SutiyosoAffiliation unknown1
SyafrinaldiAffiliation unknown1
M. MusaAffiliation unknown1
Mega Ardina PauckAffiliation unknown1
Deni Jaya SaputraAffiliation unknown1
Astri Ayu PurwatiAffiliation unknown1
Zulfadli HamzahAffiliation unknown1
Souad Ahmed EzzeroualiAffiliation unknown1

Affiliations come from OpenAlex; journal OAI-PMH metadata carries none. Authors without an OpenAlex ID are matched by name, which can merge or split people.

Metadata source: OAI-PMH (metadata jurnal) https://journal.unnes.ac.id/journals/ijals/oai, first harvested 5 Nov 2026, last seen 8 Nov 2026.
Original metadata (oai_dc) 
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	<dc:title xml:lang="en">Advocating Legal Certainty in Status Transition of Individual Companies Exceeding MSEs Criteria to Limited Liability</dc:title>
	<dc:creator xml:lang="en">Wiriatma, Dodo Wiradana</dc:creator>
	<dc:creator xml:lang="en">Admiral, Admiral</dc:creator>
	<dc:creator xml:lang="en">Hamzah, Rosyidi</dc:creator>
	<dc:creator xml:lang="en">Febrianto, Surizki </dc:creator>
	<dc:creator xml:lang="en">Syafrinaldi, Syafrinaldi</dc:creator>
	<dc:creator xml:lang="en">Hyeonsoo, Kim</dc:creator>
	<dc:subject xml:lang="en">Legal Certainty</dc:subject>
	<dc:subject xml:lang="en">Individual Company</dc:subject>
	<dc:subject xml:lang="en">Micro and Small Enterprises (MSEs)</dc:subject>
	<dc:subject xml:lang="en">Limited Liability Company</dc:subject>
	<dc:subject xml:lang="en">Business Status Transition</dc:subject>
	<dc:description xml:lang="en">The enactment of Law Number 6 of 2023, concerning the Stipulation of Government Regulations in Lieu of Law Number 2 of 2022 on Job Creation, introduced the Individual Company as a legal entity designed to empower Micro and Small Enterprises (MSEs). This provision enables the establishment of a company by a single individual, a departure from the traditional requirement of at least two shareholders. The Job Creation Law, supported by Government Regulation Number 8 of 2021, outlines that an Individual Company is created through a Statement of Establishment, without the need for a Notary Deed, in line with the provisions for MSEs as stipulated in Government Regulation Number 7 of 2021. However, this legal framework creates challenges when an Individual Company exceeds the MSE criteria or gains more than one shareholder. In such cases, the company must transition into a Limited Liability Company (LLC), a process that requires the drafting of a notary deed and registration through the Ministry of Law and Human Rights’ online AHU system. This research focuses on advocating for legal certainty in the status transition of Individual Companies to Limited Liability Companies, which currently involves the dissolution of the original entity before the new LLC can be formed. The lack of a clear, comprehensive legal mechanism for this transition causes significant legal uncertainty. This paper examines the gaps in the existing legal framework and proposes solutions to streamline the conversion process, eliminating the need for dissolution. By advocating for legal certainty in the status transition, this research contributes to the broader discourse on improving the General Legal Administration system, ensuring that the legal status of businesses aligns with their evolving needs, and facilitating smoother business expansion and growth.</dc:description>
	<dc:publisher xml:lang="en">Universitas Negeri Semarang</dc:publisher>
	<dc:date>2025-07-20</dc:date>
	<dc:type>info:eu-repo/semantics/article</dc:type>
	<dc:type>info:eu-repo/semantics/publishedVersion</dc:type>
	<dc:format>application/pdf</dc:format>
	<dc:identifier>https://journal.unnes.ac.id/journals/ijals/article/view/22263</dc:identifier>
	<dc:identifier>10.15294/ijals.v7i1.22263</dc:identifier>
	<dc:source xml:lang="en">Indonesian Journal of Advocacy and Legal Services; Vol. 7 No. 1 (2025): The Global Challenges on Advocacy and Law Enforcement; 121-148</dc:source>
	<dc:source>2686-2611</dc:source>
	<dc:source>2686-2085</dc:source>
	<dc:source>10.15294/ijals.v7i1</dc:source>
	<dc:language>eng</dc:language>
	<dc:relation>https://journal.unnes.ac.id/journals/ijals/article/view/22263/5017</dc:relation>
	<dc:rights xml:lang="en">Copyright (c) 2025 Dodo Wiradana Wiriatma, Admiral Admiral, Rosyidi Hamzah, Surizki  Febrianto, Syafrinaldi Syafrinaldi, Kim Hyeonsoo (Author)</dc:rights>
	<dc:rights xml:lang="en">https://creativecommons.org/licenses/by-nc-sa/4.0</dc:rights>
</oai_dc:dc>