The introduction of KBLI 2025 has created understandable concern among foreign investors. Many companies are asking whether their existing licences remain valid. Others are considering immediate amendments to their NIB and Articles of Association. The short answer is reassuring. A PT PMA does not automatically need new licences merely because KBLI 2025 exists. Existing licences […]
A creditor may hold one large unpaid claim against an Indonesian company. However, the creditor may lack evidence of another creditor. This creates a serious obstacle before filing a PKPU petition. Could the creditor transfer part of its claim to another party? Would that transfer create two creditors under Indonesian law? The short answer is […]
Coal export regulation Indonesia 2026 is now one of the most important legal issues for mining companies. Indonesia remains a major global coal exporter. However, the regulatory landscape is becoming more controlled, more technical, and more enforcement-driven. For mining companies, this creates real business pressure. A contract that looked safe last year may now need […]
What does Antitrust & Competition law in Indonesia cover?
It is governed primarily by Law No. 5 of 1999, aims to prevent monopolistic practices and unfair competition.
Why is Antitrust law important for business operating in Indonesia?
Antitrust laws ensure a level playing field in the market, fostering competition that benefits consumers and encourages innovation and efficiency among businesses.
Who enforces Antitrust laws in Indonesia?
The Indonesian Business Competition Supervisory Commission (KPPU) is responsible for enforcing Antitrust & Competition laws, investigating alleged violations and imposing penalties when necessary.
What are the consequences of non-compliance with Antitrust & Competition regulations in Indonesia?
Non-compliance may result in fines, sanctions, injunctions, reputational damages, and legal liabilities, impacting business operations and profitability.
What constitutes abuse of dominant position under Indonesian Antitrust & Competition laws?
Abuse of dominant position includes practices such as unfair pricing, discriminatory terms, predatory pricing, and imposing unfair trading conditions to stifle competition.
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.
If your employment contract ends, your employer must report the termination to the immigration office, and your KITAS will be canceled. You are required to leave Indonesia unless you secure another sponsorship or transition to a different visa type.
What are the key regulations governing M&A in Indonesia?
Key regulations include the Company Law (Law No. 40 of 2007), the Capital Market Law (Law No. 8 of 1995), and regulations from OJK and KPPU. These laws cover everything from corporate restructuring to competition issues and disclosure requirements.
Are there any specific regulatory approvals required for M&A in Indonesia?
Yes, M&A transactions often require approvals from OJK for listed companies and may also need to be reviewed by KPPU to ensure they do not violate antitrust laws. Sector-specific approvals might also be necessary depending on the industry.
How does the Indonesian Competition Commission (KPPU) impact M&A deals?
KPPU reviews M&A transactions to prevent anti-competitive practices and monopolistic behavior. Transactions that meet certain thresholds or could impact market competition may need to be reported and reviewed by KPPU.
What are the tax implications of M&A in Indonesia?
M&A transactions can trigger various tax obligations, including corporate income tax, value-added tax (VAT), and transfer taxes.
Can foreign investors participate in M&A transactions in Indonesia?
Yes, foreign investors can participate, but they must adhere to regulations governing foreign ownership and investment. This includes compliance with the Foreign Investment Law and sector-specific rules.
What role does legal counsel play in M&A transactions?
Legal counsel provides critical support throughout the M&A process, including due diligence, contract negotiation, regulatory compliance, and managing potential legal risks.
What are General Corporate services??
General Corporate services encompass assistance with day-to-day business operations, including corporate structuring, compliance with local laws, regulatory matters, and corporate governance.
What is the scope of Legal Advisory in Indonesia?
Legal Advisory includes offering expert opinions on Indonesian law, helping businesses navigate legal complexities, and providing strategic guidance for minimizing risks in transactions or operations.
Why is Legal Compliance important in Indonesia?
Legal Compliance ensures that your business follows applicable laws and regulations in Indonesia, helping avoid legal disputes, penalties, and potential shutdowns due to non-compliance.
How can you help with company formation in Indonesia?
We assist with setting up different types of companies, such as PT PMA, PT PMDN, Representative Offices (RO), Permanent Establishment (PE), ensuring that your business structure complies with Indonesian corporate laws.
How often should companies conduct a legal compliance review?
It is recommended to conduct a legal compliance review regularly or when there are significant regulatory changes, ensuring the business continues to operate within the bounds of Indonesian law.
What happens if a company fails to meet legal compliance standards?
Failure to comply can result in penalties, legal disputes, or suspension of business activities. Staying compliant helps safeguard your business from these risks.
What should businesses know about labor law compliance in Indonesia?
Businesses need to comply with labor laws concerning employment contracts, employee rights, and benefits. We ensure your HR practices align with Indonesian labor regulations.
