A Share Pledge Agreement Indonesia is one of the most crucial security instruments used in business financing, foreign investment, joint ventures, and corporate debt transactions in Indonesia. Whether you are a lender, investor, venture capitalist, private equity firm, or business owner, understanding how share pledges work will determine how secure your investment truly is. With […]
Over the past decade, Indonesia has undergone a significant transformation in tax administration. The government’s commitment to strengthening fiscal transparency, driven by the Harmonized Tax Law (HPP Law) and the introduction of digital tax systems, has made corporate tax behaviour a central focus of regulatory oversight. Companies that once viewed taxation merely as a compliance […]
On 11 September 2025, the Ministry of Industry of the Republic of Indonesia (MOI) issued MOI Regulation No. 35 of 2025 concerning Provisions and Procedures for Certification of Domestic Component Levels (Tingkat Komponen Dalam Negeri, TKDN) and Company Utilisation Point Ratings (Bobot Manfaat Perusahaan, BMP). This regulation will take effect on 11 December 2025, replacing […]
Minimum wages are set by the government and vary by region. Employers must ensure that wages paid to employees are at least equal to the regionally established minimum wage. Failure to comply can result in sanctions and penalties.
What is the difference between a civil and commercial litigation case?
Civil litigation covers a broader range of disputes including personal injury and family law, while commercial litigation specifically deals with business-related disputes like contracts, partnerships, and corporate matters.
What are the common types of civil & commercial litigation in Indonesia?
Broadly speaking, there are two legal disputes, the Breach of Contract and the Unlawful Act issues.
What is a commercial contract dispute?
A commercial contract dispute arises when parties disagree on the interpretation or performance of a contract. Common issues include non-payment, breach of terms, and delivery of goods or services.
How long does civil & commercial litigation take in Indonesia?
The duration varies depending on the complexity of the case and the court’s schedule. Practically it takes around 6 (six) months on the first court instance (District Court).
Can disputes be resolved earlier before going to the court hearing process?
Yes, the court provides and facilitates the parties to settle the dispute in the early stage through a mediation process which involves a neutral mediator helping the parties settle.
How does commercial litigation interact with Indonesian bankruptcy laws?
Commercial litigation can intersect with Bankruptcy if a debtor is unable to pay. We assist in filing claims, representing your interests in bankruptcy proceedings, and ensuring your rights as a creditor are protected.
How do I enforce a court decision in a commercial dispute?
The specific enforcement methods depend on the nature of the judgment and legal mechanism. Please consult with our lawyer.
What are the risks of not addressing civil or commercial disputes promptly?
Delaying action can lead to escalated conflicts into more complicated, exceeding the statute of limitation, increased legal costs, and potential damage to your business.
What is the role of an expert witness in commercial litigation?
An expert witness provides specialized knowledge and testimony to support your case. They can help explain complex issues to the court and bolster your arguments with authoritative insights.
What is the difference between Litigation and Arbitration?
Litigation is a court-based process, while Arbitration is another legal forum, that involves neutral arbitrators who issue a binding decision. Arbitration is typically faster and more private but both parties shall mutually agree to settle the dispute into Arbitration and can be limited in scope of the legal disputes and legal remedy options.
What is the role of evidence in commercial litigation?
Evidence is crucial in proving your case. This includes documents and witness testimony. Our lawyer assists in gathering and presenting evidence effectively to support your claim.
What happens if a party does not comply with a court order?
Non-compliance can lead to enforcement actions such as asset seizure or additional legal penalties. Our lawyers take necessary steps to ensure compliance with court orders and protect your interests.
What is the importance of contract drafting in preventing commercial litigation?
Proper contract drafting helps prevent disputes by clearly outlining the rights and obligations of each party. We assist in drafting and reviewing contracts to minimize the risk of future litigation.
Can foreign companies litigate in Indonesia?
Yes, they must comply with local laws and legal procedures. We provide guidance and representation to navigate the Indonesian legal system effectively.
What should I do if I am being sued or receive a legal notice or summons from an Indonesian court?
Contact our lawyer immediately to review the notice or summons, understand your legal obligations, formulate and develop the legal strategy. Prompt action is essential to protect your rights and interests.
How long does it take to process a tax refund?
The processing time for a tax refund can vary. Generally, it may take few months, depending on the complexity of your claim and the completeness of your documentation.
Can I apply for a tax refund if I have unpaid taxes from previous years?
You may still be eligible for a tax refund even if you have unpaid taxes from previous years. However, the DJP may offset your refund against any outstanding tax liabilities. It’s important to address any unpaid taxes with the DJP to ensure a smooth refund process.
Is it possible to receive a tax refund in foreign currency?
Typically, tax refunds are issued in Indonesian Rupiah (IDR).
What is the deadline for applying for a tax refund?
There is generally a statute of limitations for filing a tax refund claim, typically within a few years from the end of the fiscal year in which the overpayment occurred. It’s important to file your claim promptly to avoid missing the deadline.
Overstaying your visa or KITAS can lead to fines of IDR 1 million per day, and if overstaying persists, deportation and potential blacklisting from Indonesia are possible. It’s important to ensure timely renewals and proper visa management.
No, you cannot hold both at the same time. You must choose between the Work Permit KITAS and the Investor KITAS depending on your role in Indonesia, whether it is as an employee or an investor.
