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 are common challenges in legal due diligence in Indonesia?
Challenges include navigating complex regulatory environments, language barriers, and ensuring comprehensive access to relevant documents and information.
How can your firm assist with legal due diligence?
Our firm provides expert legal due diligence services by meticulously reviewing and analyzing all pertinent legal documents and compliance matters, offering insights and recommendations to support your business decisions.
How does legal due diligence impact negotiations?
Findings from due diligence can influence the terms of negotiations, including price adjustments, indemnity clauses, or changes in deal structure to address identified risks.
What are the potential risks of skipping legal due diligence?
Skipping due diligence can lead to unforeseen legal liabilities, compliance issues, and financial losses. It may also affect your ability to make informed decisions or negotiate favorable terms.
Can legal due diligence be customized based on the industry?
Yes, due diligence can be tailored to address industry-specific risks and regulations, such as those relevant to manufacturing, technology, or financial services.
How is confidentiality maintained during the due diligence process?
Confidentiality is ensured through strict internal controls, non-disclosure agreements, and secure handling of sensitive information throughout the review process.
What are the costs associated with legal due diligence?
Costs vary depending on the scope and complexity of the review. We provide transparent pricing and detailed cost estimates based on your specific needs.
Can due diligence findings be used in future legal proceedings?
Yes, findings can be used as evidence in legal disputes or regulatory matters, helping to support your case or demonstrate compliance.
What happens after the due diligence process is completed?
After completion, we provide a detailed report summarizing findings, potential risks, and recommendations. We also offer guidance on addressing any issues identified.
Is legal due diligence required for all types of transactions?
While not always mandatory, due diligence is highly recommended for major transactions such as mergers & acquisitions, or investments to mitigate risks and ensure informed decision-making.
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.
Working without a proper Work Permit KITAS (Index E23) is a serious violation of Indonesian immigration laws. It can lead to fines, deportation, and possible blacklisting, preventing future entry into Indonesia. Always ensure you have the correct permit before engaging in any employment.
The Indonesian Ministry of Law and Human Rights Regulation Number 22 of 2023 outlines the legal framework for all visas and stay permits.
What are the key regulations governing labor & employment in Indonesia?
Law No. 13 of 2003 on Manpower, as amended by Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation, Law No. 2 of 2004 on Industrial relations Dispute Settlement, Government Regulation No. 35 of 2021, etc.,
What are the legal grounds for terminating an employee in Indonesia?
It will be varied, including company’s merger & acquisition or company’s liquidation, company is under bankrupt, company’s financial condition, completion of employment contract, violation of employment contract, gross misconduct, employee resigns voluntarily, etc.,
What is the minimum notice period to terminate employment?
At least 14 business days, or 7 business days is termination is during probationary period. For employee resignation, written notice must be submitted by the employee at least 30 days before the last day.
What is the company’s obligation (financial compensation) to its terminated employee?
For a Permanent employee, the company is obliged to pay a severance package, which comprises: severance pay, service appreciation pay, and compensation of entitlements.
For a Fixed-Term employee, the company must compensate the employee in an amount equivalent to the remaining salary of the employee until expiry of the employment contract.
