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 […]
Unlawful act in Indonesia is a powerful legal basis in commercial disputes. It allows an injured party to claim compensation when another party causes loss through unlawful conduct. In Indonesian law, this concept is known as Perbuatan Melawan Hukum or PMH. For businesses, this issue is not merely academic. It often appears in shareholder disputes, […]
Unpaid Invoice Indonesia is a serious business issue. It affects cash flow, trust, operations, and commercial stability. Many companies deliver goods or services on time. However, the buyer delays payment, disputes the invoice, or disappears. This situation can create pressure for business owners. It also creates legal uncertainty. In Indonesia, unpaid invoices are not only […]
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.
The Investor KITAS allows foreign nationals who hold significant shares in an Indonesian company to live and manage their investment in Indonesia. Unlike the Work Permit KITAS, the Investor KITAS does not require a separate work permit (IMTA) as it focuses on investment management rather than employment.
The MERP allows you to leave and re-enter Indonesia while holding a KITAS. Without a MERP, your KITAS would be invalidated upon exit. The permit typically lasts for the duration of your KITAS and must be renewed along with your KITAS if needed.
A CLA is a negotiated agreement between the employer and a registered labor union, outlining terms of employment for the union members. It covers salaries, benefits, dispute resolution mechanisms, and working conditions. CLAs must be registered with the Ministry of Manpower.
Company Regulations is internal rules established by the employer to govern the rights and obligations of both parties. They provide structure on issues such as working conditions, disciplinary actions, leave policies, and other employment terms. The regulations must align with the legal framework and be reviewed every two years. This regulation must be registered and approved by the Indonesian Ministry of Manpower.
