The Newly Sole Proprietorship as Limited Liability Company in Recent Indonesian Company Law

Abstract

The recent Omnibus Law provides significant changing in the company legal order since the issuance of Government Regulation No. 8 of 2021. Under this GR, the sole proprietorship became a limited liability company. However, the liability construction of this newly born has not been regulated clearly and firmly and creates legal uncertainty. The purpose of this article is, first, to determine the appropriate liabilities of SPLLC (Sole Proprietorship as Limited Liability Company) and its founder, and second, to review and develop the legal mechanism for government to provide legal certainty. The study uses the normative juridical method with descriptive-analytical specifications. The study found that the absence of regulation on liability creates ambiguity and legal uncertainty on the appropriate liability for the new form of company. Finally, the study concludes that the appropriate liability of SPLLC and its founders should be determined firmly. Furthermore, three models of liability construction of the business owner are offered, including SPLLC with unlimited liability, SPLLC with limited liability, and SPLLC with certain liability.