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 […]
Yes, probationary periods are allowed under Indonesian labor law but can only last up to three months. During this time, the employment contract must clearly state the probationary nature of the work and the expectations for successful completion.
In the event of a Merger or Acquisition (M&A), employees’ rights and contracts must be maintained, or the new employer must negotiate new terms with the affected employees. Severance and compensation payments may be applicable if there are changes to the employment terms or if employees are terminated as a result of the merger.
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.
Layoffs must be carried out according to the procedures outlined in Government Regulation No. 35 of 2021. Employers are required to attempt negotiations with the employee and offer compensation packages, including severance pay, long-service pay, and compensation for rights such as untaken leave.
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.
