About Us
Information
Article ETHIS
Get to know Joint Venture in Business Cooperation
Published on 16 Jun 2023
Admin Relations
Get to know Joint Venture in Business Cooperation
A Joint Venture is a form of business cooperation between two or more companies that agree to work together on a particular project or venture. Through a joint venture, the companies share risks, resources, expertise, and responsibilities to achieve a common goal. In this blog, we will explain the definition of joint venture, and the legal basis that governs it, as well as provide some examples to better understand it.
Definition of Joint Venture
A joint venture can be defined as a business partnership between two or more companies that decide to work together to achieve a specific goal. The parties to a joint venture pool their resources, knowledge, and expertise to increase the chances of success of the project or venture being undertaken.
Joint Venture Legal Provisions
Joint ventures are governed by various laws and regulations that apply in their respective countries. However, in general, the legal basis governing joint ventures includes the following:
a. Cooperation Agreement
The parties involved in a joint venture must enter into a cooperation agreement that includes details about the joint objectives, allocation of profits and losses, responsibilities of each party, decision-making, duration of the joint venture, and other relevant matters.
b. Legal Requirements
Joint ventures must also comply with the legal requirements applicable in the country in which they operate. This includes regulations regarding tax, environment, labor, etc.
c. Legal Structure
A Joint Venture can be established in various legal forms, such as a partnership, joint venture, or other legal entity. The legal structure chosen will affect the rights and obligations of the parties and the legal protections they have.
Examples of Joint Ventures
Here are some examples of joint ventures that can give an idea of the different types of business partnerships:
Airbus
Airbus is an example of an international joint venture involving aviation companies from several European countries. The companies agreed to work together in the development and production of aircraft. The joint venture was established to compete with their main competitor, Boeing.
Sony Ericsson
Sony Ericsson is an example of a joint venture between Japanese electronics company Sony and Swedish telecommunications company Ericsson. They joined forces to develop and market mobile phone products. This joint venture helps both companies utilize each other's expertise and resources in a highly competitive industry.
Indofood CBP Sukses Makmur
Indofood CBP Sukses Makmur is an example of a local joint venture in Indonesia between Indofood, Indonesia's largest food and beverage company, and Dutch company FrieslandCampina. They partner in the production and marketing of dairy products and snacks in Indonesia.
A joint venture is a form of business cooperation involving two or more companies to achieve mutual success in a project or venture. Through joint ventures, companies can combine resources, expertise, and responsibilities to achieve better results than if they were working alone. Understanding the definition, legal basis, and examples of joint ventures can help us consider a wider range of business cooperation options and capitalize on opportunities.
PT. ETHIS FINTEK INDONESIA
Rukan Puri Mansion block B no. 7 Outer Ring West Kembangan Street, RT.2/RW.1, South Kembangan, Kembangan District, Special Capital Region of Jakarta 11610
Customer Service: support@ethis.co.id
Operational Hours: 09.00 - 18.00 WIB
Licensed & Supervised By
Part Of:
Tersertifikasi:
Protected By:
Notes:
1. Tech-based Islamic Financing service (P2P Financing) is a civil agreement between Funder and Beneficiary, in which all risks are charged to all parties.
2. Payment failure is charged to the Funder, except for fraud case and mismanagement. Beneficiaries are imposed if fraud and mismanagement happens as in Risk Sharing terms based on Islamic Principles. There is no national institution or authority that is responsible to financing risk or payment failure or compensating on any parties including loss, failures, fees or consequences after.
3. The platform with agreement from all respective users (funders and/or beneficiaries) accesses, gains, stores, manages and/or uses users’ personal data (Data Utilization) on or in the objects, electronic devices (including smartphones or cellular phones), hardwares or softwares, electronic documents, applications or electronic systems belong to Users or managed by Users, upon the information of aims, limitations and mechanism of Data Utilization to the Users before the approvals.
4. Funders with limited knowledge on this financing are suggested not to use this service.
5. Beneficiaries are obliged to consider return rates/margin/service fee and other fees according to the ability to repay the financing.
6. Each fraud is recorded electronically in cyberspace and easily recognized by public through social media.
7. Users should read and understand this information before deciding to be a Funder or Beneficiary.
8. Government as in this case is Otoritas Jasa Keuangan (OJK) / Financial Services Authority is not responsible for violation or disobedience of users, Funder and Beneficiary (intentionally or unintentionally) against terms and conditions or agreement or attachment between the platform and Funder and/or Beneficiary.
9. Each transaction and financing activities, funding, financing or enforcement agreement regarding financing between or involves the Platform, Funder, Field Partner and/or Beneficiary should happen through escrow account and virtual account as stated in OJK regulation No. 77/POJK.01/2016 about Tech-Based Financing Services.
