Reading and its Correlations with Listening, Writing, and Speaking

Reading is a cognitive process of getting the meaning of a text through the activation of
background knowledge and the information of the text being read. 1 Reading and listening
are receptive process, while writing and speaking are productive process. In order to create
writing and speaking, one needs to receive and process information on what he or she is
going to write or speak about. According to Kellog, writing challenge cognition since the
writer or speaker is using the language skills and thinking skills during writing or speaking. 2
Muchsonah quoted Kurland that: “critical reading and critical thinking can be considered to
complement each other in a way while reading, a reader uses his critical thinking skill to
monitor his understanding. In this monitoring process, when a reader perceives the assertion
provided in the text is ridiculous or irresponsible (critical thinking), a reader will read the text
more closely and test his understanding about the text (critical reading)”. 3 Furthermore
Scriven, Michael and Paul, Richard believed that: 4 “critical thinking is the intellectual, active
and skillful process of conceptualizing, applying, analyzing, synthesizing, and/or evaluating
information resulted from observation, experience, reflection, reasoning, or communication”
Reading to retend and comprehend information of a text involves remembering and
understanding the main ideas. Readers are not simply absorbing the information; instead, they
need to interpret, categorize, question that information. Critical readers also consider the text
in relation to other texts they have read, or other similar matters they have learned. It is called
their background knowledge. This process of comparison can be called synthesis.5
Writing is considered as a means of learning language forms and a way of
communication. Writing also involves composing which implies the ability either to tell or
retell pieces of information in the form of narratives or description, or transform information
into new texts. Second language (L2) abilities are transferred from L1 when both languages
are developed to a high degree. It means that thinking and language abilities are developed in
one language and transferred to the other. There is a ''mutually beneficial interplay between
L2 and L1''6 .
1
Frank Smith, Understanding Reading, A Psychological Analysis of reading and Learning to Read (USA:Holt,
Reinhart and Winston, Inc., 1979) pp.55, 66.
2
Kellogg, R. T. Professional Writing Expertise. The Cambridge Handbook of Expertise and Expert
Performance, 2018. pp 23 and 413.
3
Muchsonah. Casting Critical Thinking In Critical Reading Instruction. Jurnal Sosioteknologi Volume 14,
Nomor 1, April 2015
4
Ibid.
5
Hillary Wentworth. Critical Reading For Analysis And Comparison. Waldenacademicskills in Reading.
Posted on February 20, 2020
6
Nastaran Mehrabi. The Effect of Second Language Writing Ability on First Language Writing Ability.
Theory and Practice in Language Studies, Vol. 4, No. 8, pp. 1686-1691, August 2014 Academy Publisher

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

 According to Elbow sited by Brown, writing is a two-step process. Firstly writers figure
out the meaning, secondly writers put the meaning into language. Writing represents what
the writers think, writing process reflects what the writers have in mind, what things retain in
the writers’ mind.7 Meanwhile, according to Rivers writing is conveying information or
expression of original ideas into a new language. 8
It is believed that one who is good in one’s first language (L1) will affect one’s second
language (L2).9 Nevertheless, L2 abilities are transferred from L1 when both languages are
developed to a high degree. It means that thinking and language abilities are developed in one
language and transferred to the other. There is a ''mutually beneficial interplay between L2
and L1''10 Students may test their comprehension for example, of a sentence by translating it
into his/her first language. If the translation does not make sense to him/her, then it is not
correct. They need to try again to make the translation sounds senseful to him/her in his/her
first language.
Texts which will be included in Bahasa Inggris Hukum are texts taken from textbooks
about law, or journal articles, or work reports, encyclopedia, and Legal texts are those that
create, modify, or terminate the rights and obligations of individuals or institutions. Such
texts are what J.L. Austin might have called written performatives. Authoritative legal texts
come in a variety of genres. They include documents such as:11
 Constitutions
 contracts
 deeds (akta)
 orders/judgments/decrees (penetapan, keputusan pengadilan, surat keputusan)
 statutes (undang-undang)
 wills (surat wasiat)

Manufactured in Finland. doi:10.4304/tpls.4.8.1686-1691. Quoted from Lambert, 1990, p.217.

7
David Brown. Teaching by Principles: An Interactive Approach to Language Pedagogy, Second Edition. New
York:
Pearson Education, 2001. P. 336.
8
Wilga M. Rivers. Teaching Foreign-Language Skills. Second Edition. P. 294.
9
The usage of L1 is promoted by the child's linguistic environment outside the school, then a high level of L2
achievement occurs. Conversely, when the child has not developed L1 sufficiently, low level of L2 is the result.
Thus, there is an interaction between child's L1 competence and the language of instruction. Cummins (1983)
explains that L1 and L2 are manifestations of '' common underlying proficiency''Nastaran Mehrabi. The Effect
of Second Language Writing Ability on First Language Writing Ability. Theory and Practice in Language
Studies, Vol. 4, No. 8, pp. 1686-1691, August 2014 Academy Publisher Manufactured in Finland.
10
Ibid. Quoted from Lambert, 1990, p.217.
11
Peter Tiersma, Parchment, Paper, Pixels: Law and the Technologies of Communication (2010). The Creation,
Structure, And Interpretation Of The Legal Text.

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

Not all of the six types of legal texts will be included in this class, instead only parts of
texbooks; parts of Parliament Acts and the Constitution; a part of a journal article; a power of
attorney; and encyclopedia.

Text Structure for Reading Comprehension

One of those skills for fluent reading comprehension is knowing and using text
structure. Text structure refers to how information is organized in writing.12 The
organizational features are “ways for an author to break up a text so information is easier to
find and read. One of the most common organizational features found in an informational text
is the heading and subheadings”.13
Text structure is also called text organization. Text structure is the way an author organizes
information in order to achieve a purpose.14 As noted from Pyle et al., 2017, text structure
knowledge equips persons with a cognitive tool to organize the information and complex
vocabulary contained in content area texts.15 Also noted from Hebert, Bohaty, Nelson, &
Brown, 2016, text structure knowledge may also helps reader to increase one’s attention to
the features of less familiar text structures.16
Text structure is the internal organization of text, the patterns of organization of thought
relationship such as:17
A text might take one of the following structures, or a mixed structure. The structures
are:
Comparison and contrast. The text describes similarities and differences of two or more
matters;
Chronological. The text dscribes a secuence or order if events chronologically;
Cause and effect. The text describes reasons of why or how a matter comes into existing;
Classification. The text describes groups and the qualities and manner of each group;
Problem and solution. The text describes a problem and what and how the solution is.

12
https://www.ereadingworksheets.com/text-structure/patterns-of-organization/
13
Christina Boggs. Organizational Features Structures of Informational Texts. https://study.com/academyl
14
Deborah K. Reed. Leah Zimmermann. Anna Gibbs. Text Structure Mapping: A Strategy to Improve Reading
Comprehension of Informational Texts. https://iowareadingresearch.org.
15
Ibid.
16
Ibid.
17
Jo Anne L. Vacca, Richard T. Vacca and Mary K. Grove. Reading and Learning to Read. (Canada: Little Brown &
Company Limited, 1994), pp 316 – 318.

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

Texts in a textbook and journal articles may take one of the above structures, or a mixed of
them.

Textbook.
The wide organizational structure of textbooks is commonly as follows:18 “topics are
presented in major parts, chapters, sections and subsections that are organized in a way that
facilitates understanding”. The most easiest way for readers to see the wide organizational
structure of a textbook is by looking at the table of content. Readers can easily locate any
information they are looking for in the textbook through the table of content, which also
serves the page of the information one may look for from the textbook.

Exercise to find information by looking at the table of content

Please take a look at one of your textbooks on “Pengantar Ilmu Hukum”; “Pengantar Hukum
Indonesia”; or on “Ilmu Negara”. Tell the class what information do you find when you look
at the table of content or the headings and the subheadings.

Read the following text:

“Ethics, the third major area of philosophy is the study of morality. It is the attempt to
understand and critically evaluate our moral values and moral principles and to see how these
relate to our conduct and to our social arrangements. Ethics includes questions about the
nature of moral virtue and moral obligation; what basic moral principles we should follow
and what is morally good for human beings; the justice of social structures and political
systems; and morality of various kinds of bahaviours, social policies, and social
institutions.”19

Exercise to find details in a text of a textbook

1. What is ethics?
2. What does the word “these” in line two refer to?
3. Why ethics; what is the aim to study ethics?
4. What are the questions ethics is trying to give answer about?

Encyclopaedia

18
Amanda Coolidge. The 5 Rules of Textbook Development. https://open.bccampus.ca. 2014
19
Manuel Velasquez. Phylosophy A Text with.Readings. Wadsworth cengage Learning, 2011. P. 14.

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

Encyclopaedias contain summaries of knowledge in quite short articles. They provide basic
overviews of topics. Articles often followed with references for further reading, therefore
they can serve as starting point for more detailed research.

Exercise to find information in the encyclopaedia

To directly experience with the structure and content of an encyclopaedia, please open
https://www.law.cornell.edu/wex. You will find the following text “What is Wex?
“Wex is a free legal dictionary and encyclopaedia sponsored and hosted by the Legal
Information Institute at the Cornell Law School. Wex entries are collaboratively created and
edited by legal experts. More information about Wex can be found in the Wex FAQ. Here's a
list of all pages”.
Please click at “all pages”. Then you will find the following list:
 “Abduction
 Abercrombie Classification
 Abet
 Abeyance
 Able to Work
 Abnormally Dangerous Activity
 Abortion”

Click “abet”, then you will find the following information as follows:
Definition
To criminally assist another person in the commission of a crime including in planning a
crime, escaping from a crime, or in the actual commission of the crime.
Illustrative caselaw
See, e.g. Gonzales v. Duenas-Alvarez, 549 U.S. 183 (2007).
See also
 Aid and abet
 wex

o criminal law
o criminal law and procedure
o wex definitions

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

Background Knowledge for Reading Comprehension
Another of those skills for reading comprehension is activating one’s background
knowledge during reading. Background knowledge is also called prior knowledge. Prior
knowledge is the knowledge the learner already has before they meet new information. A
learner's understanding of a text can be improved by activating their prior knowledge before
dealing with the text.20

River (1981) mengutarakan bahwa seseorang dikatakan memahami teks yang dibacanya jika
ia dapat menarik kesimpulan dari isi teks tersebut. Walcutt, Lamport dan Cracken (1974)
mengutarakan bahwa pembaca memahami teks yang dibacanya bila ia dapat menangkap buah
pikiran utama (main idea) dan rincian pendukung buah pikiran tersebut.
Menurut Readance, Bean dan Baldwin (1985) membaca untuk mendapatkan ilmu
dari teks bidang ilmu tertentu membutuhkan pengetahuan awal (prior/background
knowledge) dan pengetahuan struktur teks. Menurut Richards (1997) memperoleh makna
teks ketika membaca membutuhkan: pengetahuan tentang bahasa yang digunakan, struktur
teks, dan pengetahuan tentang topik yang diuraikan dan pengetahuan awal. Contoh, ketika
membaca teks tentang domicile (tempat tinggal) pembaca harus mengaktifkan pengetahuan
awalnya tentang syarat-syarat yang harus dipenuhi untuk menjadi pendududuk, misalnya
memiliki tempat tinggal permanen atau sementara, melapor pada yang berwenang,
memperlihatkan surat-surat yang dibutuhkan untuk kepentingan tersebut, dan sebagainya.
Dengan mengaitkan pengetahuan awal, ketika pembaca membaca, maka ia akan mengitkan
informasi yang dibacanya dengan pengetahuan awalnya. Dengan demikian pengetahuan
pembaca tentang kata-kata, grammar akan bersama-sama memberikan makna terhadap apa
yang sedang dibacanya. Pengetahuan bahasa dan pengetahuan awal sama pentingnya
berperan dalam memberikan makna kontekstual dari apa yang sedang dibaca seseorang
pembaca.

Reading with background knowledge for main idea and supporting details

Main Idea includes the overall message of the text that a writer intends to convey to the
audience. The main idea in literature is not limited to one sentence or paragraph; instead, it
develops and grows throughout the text. It works as the central, unifying element of the

20
British Council. Prior Knowlede. https://www.teachingenglish.org.uk/article/prior-knowledge

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

information which ties together all other elements. It is the most important thought of a text
which enables the readers to understand the layered meanings of the concerned text. 21
Supporting details are statements that will support, define, or explain the main idea to the
reader. Whenever you are asked to explain the main idea of a piece of writing, you should
use supporting details found within the text.22

Reading with background knowledge for main idea and supporting details

Exercises with Texts and Questions

- Read the text. Activate your background knowledge about law. You may pay
attention
to the red printed words
- Write down the main idea of the text in your own words and sentence.
- Write down the supporting details

Text 1
Why We Need Law

Laws are rules that bind all people living in a community. Laws protect our general safety,
and ensure our rights as citizens against abuses which may be conducted by other people, by
organizations, and by government itself. We have laws to help provide for our general
safety.23 In society, law is not something which comes from somewhere outside the
boundaries of the society. It is in fact comes from the philosophical idea of the society. The
law reflects the norms of the society and is what according to the society is good, equitable
and just. Every society has its own laws, and these laws changes with the change of need
and condition of the society.

Vocabulary:
bind = mengikat. It means all people must obey the law, violation will create punishment
ensure = memastikan
abuse = penyalahgunaan
21
Main Idea. https://literarydevices.net
22
https://study.com/academy/lesson/how-to-explain-the-main-point-through-supporting-details.html
23
https://judiciallearning.org/law-and -the-rule-of-law

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

norms = norma
equitable = berimbang
just = adil
A norm = a principle of right action binding upon the members of a group and serving to
guide, control, or regulate proper and acceptable behavior.24
proper and acceptable behavior = perilaku yang benar dan dapat diterima

Answer
1. The main idea says that the law of a society comes from the philosophy and
needs of the people because law protects the safety and rights of the people
against any abuse.
2. The supporting details are: laws bind all people; laws provide general safety;
law comes from the the philosophy and need of the people.

Text 2
Law and Its Jurisdiction (hukum dan wilayah keberlakuannya)
Laws bind all people living in a community. Laws protect safety and security. Law
protects the rights of one person or organization against abuses by other person or
organization. Law exists at local, national, regional, and international level. Governor
regulation on smoking in public area is an example of a local level law. Employment Act
Number 13 Year 2003 is an example of a national level law. Agreement on free visa within
South East Asian countries for South East Asian countries citizens is an example of regional
law level.

Questions for writing and discussion.

Based on the texts above answer the following questions and present your answer.
The instructor will give feedback to your presentation when necessary.
What is the main idea of the text?
1. What does “abuse” mean? Please give one or two examples on how one
person abuses another person or other persons.
2. Find and mention one example of a law within international level.

24
https://www.merriam-webster.com/dictionary/norm

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

3. Find and mention one other example of: local, national, regional level law.

Text 2
The Hierarchy of Law in Indonesia
Legislation and regulation in Indonesia are placed hierarchically. The highest in the
hierarchy is the Constitution. The lowest is the Local Regulation. The lower level must be
in accordance with the upper one. The upper in the hierarchy is more general in its nature,
while the lower one is more specific in nature. Followed is the hierarchy of Indonesian
Legislation and Regulation:
 1945 Constitution (Undang-Undang Dasar 1945 or UUD'45);
 Resolutions of the People's Representative Council (MPR) (Ketetapan Majelis
Permusyawaratan Rakyat, Tap MPR);
 Parliament Act (Undang-Undang or UU, also translated as Law, or Statute);
Government Regulation in the absence of Parliament Act (Peraturan Pemerintah
Pengganti Undang- Undang or Perpu);
 Government Regulation (Peraturan Pemerintah or PP);
 Presidential Regulation (Peraturan Presiden or Perpres);
 Local Regulation (Peraturan Daerah or Perda).

Exercise
Find one topic on each of the hierarchy: MPR Resolution on…….; Law
Number…..Year….on….; Government Regulation on………: Presidential Regulation
on…….; Local Regulation on…..
Please mention the number and year as well.

Reading for detail information.

Text 4

Public Law vs. Private Law

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

 If a person or a corporation cut any trees in a preserved forest for personal interest,
then it is considered violating public law. He has committed illegal logging which is
prescribed in Law on Forestry. The law on forestry is a public law. Public law concerns
with relationship between natural persons/citizens or juridical person/corporation with the
state which is represented by officers of any state organs or state administration. State
organs work within executive, or legislative, or judicative function.
On the other hand, if a husband violates his wife’s rights of receiving living cost for
the children, then the husband has violated private law. A buyer who does not pay the
price of the goods which the seller has given is also considered violating private law.
Private law concerns with the relationship between person (natural person) or corporation
(legal entity) and person or corporation.
Essentially, public law issues effect society while private issues affect two or more
natural persons/legal entities. Family law and commercial law are private laws.
Environmental law, public international law, criminal law, and land law are placed within
public law. Please read further for more information on what family law is; what
commercial law concern with; what public international law is all about; what land law is.

Questions for writing and discussion

Write the answers to prepare for discussion in the class.
1. Public law concerns with the interest of the society as a whole. Why is that so?
Give example to support understanding.
2. Private law concerns with the interest of individuals, families, businesses or
legal entities. Why is that so? Give example to support understanding.
3. Why is public law different from private law?

Text 5

The Constitution

Constitution is the basic principles and laws of a nation, state, or social group that
determine the powers and duties of the government and guarantee certain rights to
the people in it. It is a written instrument embodying the rules of a political or social
organization.25

25
Merriam Webster Dictionary.

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

The 1945 Constitution of the Republic of Indonesia is the highest law in the
hierarchy of legislation and regulation of the state. Law Number 12 Year 2011
stipulates that hierarchically the constitution is the highest law, next is the MPR
Order, Law/parliament act, government regulation, presidential regulation,
provincial local regulation, and the lowest one is Kabupaten or City regulation. The
hierarchy rules that each lower law must be in harmony with that or those in the
upper ones in the hierarchy.

The 1945 Constitution of the Republic of Indonesia has been amended four times.
The first Amendment was in 1999, the Second Amendment was in 2000, the third
Amendment was in 2001 and the fourth Amendment was in 2002.

Followed is a text taken partially from the 1945 Constitution.

The Preamble of the Constitution

Whereas independence is the inalienable right of all nations, therefore, all colonialism must be
abolished in this world as it is not in conformity with humanity and justice;

And the moment of rejoicing has arrived in the struggle of the Indonesian independence
movement to guide the people safely and well to the gate of the independence of the state of
Indonesia which shall be independent, united, sovereign, just and prosperous;

By the grace of God Almighty and motivated by the noble desire to live a free national life, the
people of Indonesia hereby declare their independence.

Subsequent thereto, to form a government of the state of Indonesia which shall protect all the
people of Indonesia and all the independence and the land that has been struggled for, and to
improve public welfare, to educate the life of the people and to participate toward the establishment
of a world order based on freedom, perpetual peace and, therefore the independence of Indonesia
shall be formulated into a constitution of the social justice Republic of Indonesia which shall be
built into a sovereign state based on a belief in the One and Only God, just and civilized humanity,
the unity of Indonesia, and democratic life led by wisdom of thoughts in deliberation amongst
representatives of the people, and achieving social justice for all the people of Indonesia.

Articles
Chapter I
Form of the State and Sovereignty

Article 1
(1) The State of Indonesia shall be a unitary state in the form of a republic.
(2) Sovereignty is in the hands of the people and is implemented according to this
Constitution.
(3) The State of Indonesia shall be a state based on the rule of law

--------

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

 Chapter XIV
The National Economy and Social Welfare

Article 33
(1) The economy shall be organized as a common endeavor based upon the principles of
the family system.
(2) Sectors of production which are important for the country and affect the life of the
people shall be under the powers of the State.
(3) The land, the waters and the natural resources within shall be under the powers of
the State and shall be used to the greatest benefit of the people.
(4) The organization of the national economy shall be conducted on the basis of
economic democracy upholding the principles of togetherness, efficiency with justice,
sustainability, environmental perspective, self-sufficiency, and keeping a balance in the
development and unity of the national economy.
(5) Further provisions relating to the implementation of this article shall be regulated by
law.

Article 34
(1) Impoverished persons and abandoned children shall be taken care of by the State.
(2) The state shall develop a system of social security for all of the people and shall
empower the inadequate and underprivileged in society in accordance with human dignity.
(3) The state shall have the obligation to provide sufficient medical and public service
facilities.
(4) Further provisions in relation to the implementation of this Article shall be regulated
by law.

Principles = asas-asas

Questions for Writing and Discussion

Write the answer of the questions for class discussion

1. Identify and mention the fundamental principles stated in the 1945

Constitution provided in the text.

2. Divide the class into 6 groups. Each group must describe the meaning of one
of the 6 following principles. You may do the browsing to find the meaning or
definition of the principles. How to browse? Type the principle and add
definition, for example type “the rule of law definition” in the google box. If
you need further information and example you may write “the rule of law
analysis” in the google box, then you may choose one or two articles, usually
when you include the word “analysis” the texts provided will be in the form of
articles in scientific journals.

Exercise
1. Look for the meaning or definition of the following principles (asas-asas) in
English.

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

 - believe in one and only God (kepercayaan pada Tuhan Yang Maha Esa)
- the rule of law (suprimasi hukum)
- family system (asas kekeluargaan)
- social security (jaminan social)
- human dignity (harkat dan martabat manusia)
- social justice (keadilan social)
2. Give examples / indicators of each of the principles.

Text 6

Parliament Acts
Parliament Acts or Acts of Parliament is a law that has been officially accepted by a
parliament, especially the British Parliament. Before a law becomes an ‘Act’, when
it is still being discussed, it is called a ‘bill’.26

Followed are 3 texts taken partially from a Parliament Act on Limited Liability
Company (Undang-Undang Perseroan Terbatas). Read the three parts of the text.
Read them by heart; you may ask questions to your instructor when you find
anything you do not understand. You also may do discussion with your friends on
the texts. Upon finishing up with treading activities, you are to answer the following
5 questions.

Questions for Writing and Discussion

1. Consideration part letter a stipulates 7 principles underlying the Law. Mention
the principles and look for the meaning of each principles to acquire deep
understanding of the concepts. Do further reading though various texts on
textbooks, journals, or scholar articles in the internet.
2. Explain why was the Law created, on what purposes was the Law created?
The answer can be obtained by reading consideration paragraph b until e.
3. What does “General Provision” in article 1 contain?
4. What information do you obtain from reading Article 59 until article 61?

26
https://www.ldoceonline.com/dictionary/act-of-parliament

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

5. Please list any ten words and/or phrases. Discuss and write the translation
meaning of them.

Parts of a Statute Law

Text 1

Law of The Republic of Indonesia Number 40 Of 2007 On Limited Liability Companies

By The Grace Of Almighty God The President Of The Republic Of Indonesia

Consideration:
a. whereas the national economy, which is operated on a basis of economic democracy
with principles of community, efficiency, justice, sustainability, environmental
awareness, independence and safeguards for balanced progress and national economic
unity, needs to supported by firm economic institutions in the context of creating
prosperity for society;
b. whereas in the context of increasing development of the national economy and at the
same time giving a firm basis for the business world in facing the developments in the
world economy and progress in science and technology in the coming era of
globalization, the support is needed of an act regulating limited liability companies
which can secure the operation of a conducive climate for the business world;
c. whereas limited liability companies as a pillar of national economic development need to
be given a legal basis to spur on national development composed mutual enterprises on
the basis of the principle of a family spirit; whereas the Limited Liability Companies Act
No. 1 of 1995 is viewed as no longer in accordance with legal developments and the
needs of society and so needs to be replaced with a new act;
d. whereas given the above in paragraphs a, b, c, and d, it is necessary to form a Limited
Liability Companies Act. Bearing in mind: Article 5 paragraph (1), Article 20, and
Article 33 of the 1945 Constitution of the Republic of Indonesia

Text 2

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

With the Common Assent of The House of People’s Representatives of The Republic of
Indonesia And the President of The Republic of Indonesia Has Resolved to Promulgate:

Limited Liability Companies Act

Chapter I
General Provisions
Article 1
In this Act, the following terms have the following meanings:
1. “Limited Liability Company” (hereinafter called a “Company”) means a legal entity
which constitutes an alliance of capital established pursuant to a contract in order to
carry on business activities with an authorized capital all of which is divided into
shares and which fulfils the requirements stipulated in this Act and its implementing
regulations.
2. “Company Organs” means the General Meeting of Shareholders, the Board of
Directors, and Board of Commissioners.
3. “Environmental and Social Responsibility” means a Company’s commitment to
taking part in sustainable economic development in order to improve the quality of
life and environment, which will be beneficial for the Company itself, the local
community and society in general.
4. “General Meeting of Shareholders” (hereinafter called the “GMS”) means the
Company Organ which has authority not given to the Board of Directors or Board of
Commissioners within limits specified in this Act and/or the articles of association.
5. “Board of Directors” means the Company Organ with full authority and responsibility
for the management of the Company in the interests of the Company in accordance
with the Company’s purposes and objectives and to represent the Company in and out
of court in accordance with the provisions of the articles of association.
6. “Board of Commissioners” means the Company Organ with the task of general and/or
specific supervision in accordance with the articles of association and giving advice to
the Board of Directors. 7. “Open Company” means a Public Company or a Company
which makes a public offering of shares in accordance with the provisions of
legislative regulations in the field of capital markets.

7. “Public Company” means a Company which fulfils the criteria of number of

shareholders and amount of paid up capital in accordance with the provisions of
legislative regulations in the field of capital markets.
8. “Merger” means a legal action taken by one or more Companies to merge with

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

 another existing Company with the result that the assets and liabilities of the merging
Companies pass by operation of law to the surviving Company and thereafter the
merging Companies’ status as legal entities ceased by operation of law.
9. “Consolidation” means a legal action taken by two or more Companies to consolidate
themselves by means of establishing a new Company which by operation law obtains
the assets and liabilities of the consolidating Companies and the consolidating
Companies’ status as legal entities ceased by operation of law.
10. “Acquisition” means a legal action taken by a legal entity or individual person to
acquire shares in a Company resulting in the passing of control of the Company.
11. “Demerger” means a legal action taken by a Company to demerge its businesses
resulting in all of the assets and liabilities of the Company passing by operation of law
to 2 (two) or more Companies or a part of the assets and liabilities of the Company
passing by operation of law to 1 (one) or more Companies.
12. “Registered Letter” means a letter addressed to a recipient evidenced by a signed and
dated receipt from the recipient.
13. “Newspaper” means a daily newspaper in the Indonesian language with national
circulation.
14. “Day” means a calendar day.
15. “Minister” means the minister whose tasks and responsibilities are in the
field of law and human rights. Article 2 Companies must have a purpose
and objective and business activities which do no t

Text 3

CHAPTER XIV
CLOSING PROVISIONS

Article 159
Implementing regulations of the Limited Liability Companies Act No. 1 of 1995 are
declared still in effect in so far as they do not contradict or have not been replaced by new
regulations under this Act.

Article 160
When this Act comes into effect, the Limited Liability Companies Law No. 1 of 1995
(Statute Book of the Republic of Indonesia 1995 No. 13, Supplement to the Statute Book
of the Republic of Indonesia No. 3587) is revoked and declared no longer in effect.

Drafted by Dr. Dra. Amriyati, MPd, SH, MH

Article 161
This Act shall come into effect on the date on which it is enacted. So that all persons may
know of it, it is ordered that the enactment of this act be placed in the Statute Book of the
Republic of Indonesia.

Assented in Jakarta on August 16, 2007

The President of The Republic Of Indonesia
Signed

DR. H. Susilo Bambang Yudhoyono

Enacted in Jakarta on August 16, 2007 The Minister of Law and Human Rights of The
Republic of Indonesia
Signed

Andi Mattalatta.
State Gazette of The Republic of Indonesia Year 2007 Number 106
Duplicate Copies
Deputy Minister of State Secretariat on Legislation, Muhammad Sapta Murti

Drafted by Dr. Dra. Amriyati, MPd, SH, MH