On April 30th 2026, the Indonesian Minister of Manpower issued Minister of Manpower Regulation No. 7 of 2026 on Outsourced Work (“Mom Regulation 7/2026”). The regulation was enacted as a follow-up to the Constitutional Court’s Decision No. 168/PUU-XXI/2023, which called for greater legal certainty in outsourcing arrangements and enhanced protection for outsourced workers. Mom Regulation […]
Indonesia offers major opportunities for investors, founders, corporations, and strategic partners. However, opportunity alone does not make a deal safe. A Business Deal Indonesia must be structured with legal, tax, licensing, and commercial precision. Many disputes begin because parties rush into signing documents. Others arise because the deal structure does not match Indonesian law. Therefore, […]
Commercial disputes can disturb cash flow, business relationships, and company reputation. In Indonesia, these disputes often arise from unpaid debts, breached contracts, failed partnerships, shareholder conflicts, or commercial fraud. For business owners, investors, and companies, litigation is not only about going to court. It is about protecting value, securing evidence, managing risks, and choosing the […]
Termination due to health reasons is allowed only if the employee can no longer perform their job duties after receiving proper medical treatment. The employer must provide severance pay, long-service pay, and other rights, such as compensation for unused leave, in accordance with Government Regulation No. 35 of 2021.
The standard working hours in Indonesia are 40 hours per week, with either 7 hours per day for 6 days a week or 8 hours per day for 5 days a week. Overtime is allowed, but it should not exceed 4 hours per day or 18 hours per week, and overtime pay must be provided as per Government Regulation No. 35 of 2021.
Employees are entitled to 12 days of paid annual leave after completing one year of continuous service with the same employer. This entitlement is separate from public holidays and must be provided in compliance with company regulations or employment contracts.
When should I apply for a tax ruling?
You should consider applying for a tax ruling when you face complex or unclear tax issues that could impact your business decisions. A tax ruling can provide you with the necessary legal certainty before you proceed.
What types of tax facilities are available in Indonesia?
Indonesia offers various tax facilities, including tax holidays, reduced tax rates, and exemptions, designed to encourage investment and business activities in certain sectors or regions. These facilities can significantly reduce your tax burden.
How do I know if my business qualifies for tax facilities?
Our team conducts an eligibility assessment based on your business activities and the criteria set by the Indonesian government. We identify the most beneficial tax facilities that apply to your situation.
What documents are required for a tax ruling application?
Typically, you’ll need to provide a detailed description of the tax issue, legal arguments, and any supporting evidence. We help you prepare all the necessary documentation to ensure a strong application.
How long does it take to get a tax ruling in Indonesia?
The processing time for a tax ruling can vary depending on the complexity of the issue and the workload of the tax authorities. On average, it may take several weeks to a few months.
What happens if my application for tax facilities is approved?
Once approved, you must comply with the conditions set by the tax authorities to maintain the benefits. We provide ongoing support to ensure you meet these requirements and continue to benefit from the tax facilities.
Are tax rulings legally binding in Indonesia?
Yes, once issued, tax rulings are legally binding for both the taxpayer and the tax authorities. They provide a clear legal framework for how the relevant tax laws will be applied to your specific case.
How does the Indonesian government decide who gets tax facilities?
Tax facilities are granted based on specific criteria set by the government, which may include the type of business activity, the investment amount, the region of operation, and the expected economic impact.
What is the difference between a tax ruling and a tax opinion?
A tax ruling is an official decision from the tax authorities, whereas a tax opinion is a professional interpretation provided by a tax advisor. While a tax opinion can guide you, a tax ruling offers legal certainty from the government.
Can tax facilities be revoked once granted?
Yes, tax facilities can be revoked if the business fails to comply with the conditions set by the tax authorities. Regular compliance and reporting are essential to maintaining these benefits.
Arbitration is often chosen for its confidentiality, flexibility in procedure, and the ability to select arbitrators with expertise in the subject matter of the dispute.
Commercial disputes
It includes administrative expenses of the arbitral institution, arbitrators’ fees, legal fees, and other expenses related to the proceedings.
The arbitration awards shall be registered in Indonesian court maximum 30 (thirty) days after the award is issued, and then shall obtain a court approval.
Yes, under certain circumstances.
Filing an appeal to Indonesian Supreme Court.
If one party refuses to participate in arbitration proceedings in Indonesia, the arbitral tribunal may proceed with the arbitration and make a decision based on the evidence and arguments presented by the participating party.
