Before the Government of Indonesia enacted the Law No. 16 year 2001 concerning Foundation, there were no special laws or regulations ruling the Foundation. Albeit in the Indonesian Civil Code such as Articles 365, 899, 900, 1680, 1852, 1954 and in Article 236 of the Regulation of Civil Procedure mentioned Foundation, however, in respect of the establishment and the practices of Foundation, they were based on the customs and case laws. Law No.16 year 2001 concerning Foundation was promulgated on 6 August 2001 and was effective on 6 August 2002. BY virtue of such Law, Foundation is expected to have both a strong legal position as the legal entity, and provisions to rule its practice in order to reach its objectives and purposes in the spheres of social, religion and humanity. The management of Foundation has the rights and liabilities to manage and represent Foundation in or out of court and the responsibility in order to reach its objectives and purposes of Foundation in the spheres of social, religion and humanity. However, in Article 3 paragraph 2 of Law No. 16 year 2001 stated that Foundation is prohibited to distribute its asset to the management since the management of Foundation shall work voluntarily without gaining salary, wage or honorarium. This provision is contradictory and not fair to the management of Foundation whom is demanded to work professionally and imposed a huge responsibility to manage the Foundation. In the writer's opinion, these restrictions shall only apply to the founder of Foundation who has segregated its wealthy to establish a Foundation for the objectives and purposes in the spheres of social, religion and humanity. For the management of Foundation who works professionally and full time for the interest of Foundation shall properly have the right to gain salary, wage or honorarium from Foundation. That's why; the provision, restricting the management of Foundation to gain salary, wage or honorarium from Foundation, shall be entirely deleted or amended accordingly.