Capital is one of the main factors which determines the success of an enterprise, because the bigger the
Capital used the wider the network of the enterprise can be established and the bigger the amount of profit can be obtained. In fact, one of the inhibiting problems encountered by
small and medium
enterprises in Indonesia relates to lacking of capital. To overcome this problem, Indonesian government has issued The Package of December’s Policy (Paket Desember of Pakdes) by issuing Presidential Decree Number 61 of the Year 1988 About Funding Institutions. One of such institutions is
Venture Capital Enterprise. However, the availability of this
Institution is not widely known by the people. In fact, this institution, does not only provide venture capital, but also cares about the development of its investee
company (Perusahaan Pasangan Usaha = PPU) by providing managerial assistance and flexible payment schedule and adopting the system of profit sharing.
If the existence of this institution to be acknowledged in the world of business, the approach taken must not concern only with economic aspect but must also be supported by legal approach, both public law and civil law. In regard to civil law, it relates to the contractual matters which regulate the rights and the obligations of the parties involved in a contract.
This study was conducted at PT. Sarana Sumsel Ventura (PT. SSV). The objectives of the study are to identify effective legal aspects in the system of venture capital partnership adopting profit sharing pattern and to analyze the funding
contract adopting profit sharing pattern and the settlement of a conflict arising from a contract as a result of investee company’s failure in fulfilling its obligations.
This is a normative legal study using primary, secondary, and tertiary legal materials. The study adopts the statute approach and conceptual approach.
Based on the result of the study, the following conclusions are taken: (1) The contract made by PT. SSV has fulfilled the requirements for the validity of a contract and in accordance with the principles of freedom to have a contract as stated in the Paragraph 1338 of the Indonesian Civil Code. (2) Effective legal aspects in the funding system with profit sharing pattern at PT SSV are civil law aspect, especially which regards the freedom to have a contract and relevant stipulations in the Indonesian Civil Code and public law aspect. (3) The settlement of a conflict as a result of investee company’s failure in fulfilling its obligations is regulated in the Paragraph 20 of the funding contract with profit sharing through an Alternative Dispute Resolution (ADR) namely by negotiation. If a resolution is not achieved within a period of 60 (sixty) days, the conflict will be settled in a local Court where PT. SSV resides or a place of its choice.
More abstracts about the THE ANALYSIS OF A CONTRACT 0F VENTURE CAPITAL FUNDING WITH PROFIT SHARING PATTERN AT SMALL AND MEDIU