Though the existence of the foundation has been well known in the Indonesian law affair for a long time, only in 2001 Indonesia posessed the regulation of legislation which regulates the foundation,i-e. The regulation number 28 year 2004 which substituted the regulation number 16 year 2001. Before the establishment of the regulations, the procedure of founding a foundation and other things related to the foundation activities is done based on the people's customs. In this way , some members of society consider the foundation as an object which can be possesed by an individual. In other words, a foundation is viewed as an enterpreneurship entity like PT.CV,Firma, Establishment of the regulations on foundation. does not automatically bear the people's understanding about what so called a foundation. There are still some people who have wrong perceptions about a foundation. Tis paper aimed at giving a simple understanding about the existence of foundation as a law body in the Indonesian law affairs.