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If a company needs to terminate employees due to economic difficulties, it must follow the procedures outlined in Government Regulation No. 35 of 2021. This includes attempting to negotiate mutual agreements, paying severance packages, and ensuring compliance with the labor law before proceeding with termination.
Estate planning in Indonesia involves drafting a will (wasiat) to specify asset distribution and minimize tax implications. Consulting with our legal expert can help you ensure your wishes are legally documented and executed.
If your investment falls below the required threshold (IDR 1 billion in shares or IDR 10 billion in capital), your Investor KITAS may be revoked, and you could lose your right to stay in Indonesia under that permit. It’s essential to monitor your investment levels to maintain compliance.
Severance pay is calculated based on the employee’s length of service and the reason for termination. The formula includes severance pay, service appreciation pays (if applicable), and compensation for untaken leave or other rights as per Government Regulation No. 35 of 2021.
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.