Legal Protection for Investee Company in Venture Capital Agreement in Indonesia


  • Sihabudin Sihabudin Brawijaya University, Indonesia



economy, venture capital, legal protection, investee company, agreement, partnership


Business and entrepreneurship are one of the fundamental and important factors in the economy of a nation. In Indonesia lending is being intensified to small and medium-sized companies that are unable to borrow capital from banks through the establishment of venture capital by the government. The existence and role of financial institutions in the form of venture capital in Indonesia is important to study, because it is a new institution that is starting to develop, which certainly has an influence on the development of the business world and legal institutions and institutions. The research method used is empirical juridical, which is qualitative by means of descriptive analysis. The results of the study are that although venture capital has not been based on clear legal aspects, in practice, venture capital activities are complemented by an agreement. Venture Capitalist has a stronger position on the investee company, while freedom of contract can only be applied well when both parties have the same position. However, venture capital tends to protect interest (capital) with special provisions, including its responsibilities. Therefore there is a need for a model and further regulation of the contents of the "standard venture capital agreement", especially the financing mechanism as well as its implementation instructions, so as to provide clearer, more complete and stronger implementation guidelines. A financing agreement made between a venture capital company and its partner company is based on a standard contract that requires supervision and protection to maintain balance. Measures of protection and supervision are through the basis of legislation, control carried out by the government, control carried out by judges (courts) and legal consultants and notaries.

Author Biography

Sihabudin Sihabudin, Brawijaya University, Indonesia

Faculty of Law, Brawijaya University



Asikin, H. Z., Hukum Dagang, (Jakarta, Raja Grafindo Persada. 2013)

Asyhadie, Zaeni, Hukum Bisnis Prinsip dan Pelaksanaannya di Indonesia ( Jakarta, PT Raja Grafindo Persada. 2012)

Brehny, Regina & Brendan, Butler, A Guide to Ventura Capital, 8th Edition (Irish Venture Capital Association (IVCA), 2015)

Bungin, B. & Widjajati, L., Dimensi Metodologis: Dalam Penelitian Sosial (Surabaya, Usaha Nasional, 2007)

Garner, B. A., Black’s Law Dictionary. 8th Edition (West Publishing CO.St. Paul, Minn, 2004)

James, Kenneth & Akrasanee, Narongchai, Small and Medium Business Improvement in the Asia. (Aspek-aspek Finansial Usaha Kecil dan Menengah: Studi Kasus Asean). penerjemah Yadrifil (Jakarta: LP3ES, 1992)

Rachmat, Budi, Modal Ventura: Cara Mudah Meningkatkan Usaha Mikro, Kecil dan Menengah (Bogor, Ghalia Indonesia 2005)

Sukanto, Surjono, Penelitian Hukum Normatif (Jakarta, Adika Cipta, 1988)

Soekanto, Soejono dan Mamuji, Sri, Penelitian Hukum Normatif Suatu Tinjauan Singkat (Jakarta, Rajawali Pers, 2010)

Tambunan, Tulus, Usaha Mikro Kecil dan Menengah di Indonesia: Isu-isu Penting (Jakarta, LP3ES, 2012)

Zaman, B., dan Darus, M., Hukum Jaminan dan Jaminan Kredit Perbankan di Indonesia (Jakarta, Raja Grafindo Persada, 2007)


Asian Venture Capital Journal, The 1990 Guide to Venture Capital in Asia, Hong Kong: The Asian Venture Capital Journal Limited, 1990.

M. Isrok, ‘Modal Ventura, Alternatif Baru untuk Pembiayaan Perusahaan’ (1993) 1(1) Legality Journal Ilmiah Hukum Malang

Mack, Gradan, ‘Fueling the Grouwth of Black Companies’ (1994) 25(4) Journal Black Enterprise


Article 1 paragraph (8) Draft Law on Small Business.

Article 26 paragraph (4) of Law No. 9 of 1995 concerning Small Business.

Act Number 20 Year 2008 concerning Micro, Small and Medium Enterprises.




How to Cite

Sihabudin, Sihabudin. 2019. “Legal Protection for Investee Company in Venture Capital Agreement in Indonesia”. Brawijaya Law Journal 6 (1):94-103.