Merger & Acquisitions (M&A)

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.

In Indonesia, divorce can be filed through the Religious Court (for couples of the same Muslim religion), or the District Court (for Non-Muslim religion and mixed-religion marriages). You must meet certain grounds for divorce as stipulated in Indonesian law.

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.

No, business activities such as attending meetings or negotiations are not allowed on a Tourist Visa. For such activities, you must apply for a Single-Entry Business Visa or a Multiple-Entry Business Visa, depending on your needs.

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 processing time can vary, but typically it takes around 2 to 4 weeks from the submission of the required documents to the issuance of the KITAS.

There are two types of employment contracts: Fixed-term contracts (Perjanjian Kerja Waktu Tertentu or PKWT) and Indefinite-term contracts (Perjanjian Kerja Waktu Tidak Tertentu or PKWTT). Fixed-term contracts are used for specific time periods or projects, while indefinite-term contracts are open-ended.

What is the difference between a civil and commercial litigation case?

Civil litigation covers a broader range of disputes including personal injury and family law, while commercial litigation specifically deals with business-related disputes like contracts, partnerships, and corporate matters.

What are the common types of civil & commercial litigation in Indonesia?

Broadly speaking, there are two legal disputes, the Breach of Contract and the Unlawful Act issues.

What is a commercial contract dispute?

A commercial contract dispute arises when parties disagree on the interpretation or performance of a contract. Common issues include non-payment, breach of terms, and delivery of goods or services.

How long does civil & commercial litigation take in Indonesia?

The duration varies depending on the complexity of the case and the court’s schedule. Practically it takes around 6 (six) months on the first court instance (District Court).

Can disputes be resolved earlier before going to the court hearing process?

Yes, the court provides and facilitates the parties to settle the dispute in the early stage through a mediation process which involves a neutral mediator helping the parties settle.

How does commercial litigation interact with Indonesian bankruptcy laws?

Commercial litigation can intersect with Bankruptcy if a debtor is unable to pay. We assist in filing claims, representing your interests in bankruptcy proceedings, and ensuring your rights as a creditor are protected.

How do I enforce a court decision in a commercial dispute?

The specific enforcement methods depend on the nature of the judgment and legal mechanism. Please consult with our lawyer.

What are the risks of not addressing civil or commercial disputes promptly?

Delaying action can lead to escalated conflicts into more complicated, exceeding the statute of limitation, increased legal costs, and potential damage to your business.

What is the role of an expert witness in commercial litigation?

An expert witness provides specialized knowledge and testimony to support your case. They can help explain complex issues to the court and bolster your arguments with authoritative insights.

What is the difference between Litigation and Arbitration?

Litigation is a court-based process, while Arbitration is another legal forum, that involves neutral arbitrators who issue a binding decision. Arbitration is typically faster and more private but both parties shall mutually agree to settle the dispute into Arbitration and can be limited in scope of the legal disputes and legal remedy options.

What is the role of evidence in commercial litigation?

Evidence is crucial in proving your case. This includes documents and witness testimony. Our lawyer assists in gathering and presenting evidence effectively to support your claim.

What happens if a party does not comply with a court order?

Non-compliance can lead to enforcement actions such as asset seizure or additional legal penalties. Our lawyers take necessary steps to ensure compliance with court orders and protect your interests.

What is the importance of contract drafting in preventing commercial litigation?

Proper contract drafting helps prevent disputes by clearly outlining the rights and obligations of each party. We assist in drafting and reviewing contracts to minimize the risk of future litigation.

Can foreign companies litigate in Indonesia?

Yes, they must comply with local laws and legal procedures. We provide guidance and representation to navigate the Indonesian legal system effectively.

What should I do if I am being sued or receive a legal notice or summons from an Indonesian court?

Contact our lawyer immediately to review the notice or summons, understand your legal obligations, formulate and develop the legal strategy. Prompt action is essential to protect your rights and interests.