Frequently Asked Questions

What rights do victims have in Indonesian criminal proceedings?

Victims of crime have the right to report the crime and provide evidence, be informed of the progress of the investigation and trial, seek restitution or compensation, and request protection if they are at risk of harm.

Can a foreigner be tried under Indonesian criminal law?

Yes, if they commit a crime within Indonesian territory.

Are there alternative dispute resolution options for criminal cases in Indonesia?

In general, criminal cases in Indonesia are resolved through the court system. However, for certain cases, the alternative resolution like Restorative Justice practices may be considered.

What is Restorative Justice in the context of Indonesian criminal law?

Restorative Justice focuses on repairing the harm caused by criminal behavior through reconciliation and restitution rather than punitive measures. It involves mediation between the victim and offender to reach a mutually agreeable resolution.

What constitutes a criminal offense under Indonesian law?

It is an act that violates the Indonesian Criminal Code (KUHP) or other specific laws and regulations and is punishable by sanctions such as fines, imprisonment, or other penalties. The KUHP outlines various categories of offenses, including theft, assault, fraud, corruption, etc.

What does Indonesian law recognize the different types of criminal offences?

There are three main types:

• Crimes (kejahatan): serious offenses such as robbery, theft, fraud, etc.
• Misdemeanors (pelanggaran): lesser offenses such as traffic violations and minor thing.
• Special Crimes: offenses covered by specific laws, such as corruption, narcotics, terrorism, etc.

How does the Indonesian criminal justice system handle cases of corruption?

Corruption cases are handled by specialized anti-corruption courts (Pengadilan Tindak Pidana Korupsi). The Indonesian Corruption Eradication Commission (Komisi Pemberantasan Korupsi—KPK) investigates and prosecutes high-profile corruption cases.

What does Antitrust & Competition law in Indonesia cover?

It is governed primarily by Law No. 5 of 1999, aims to prevent monopolistic practices and unfair competition.

Why is Antitrust law important for business operating in Indonesia?

Antitrust laws ensure a level playing field in the market, fostering competition that benefits consumers and encourages innovation and efficiency among businesses.

Who enforces Antitrust laws in Indonesia?

The Indonesian Business Competition Supervisory Commission (KPPU) is responsible for enforcing Antitrust & Competition laws, investigating alleged violations and imposing penalties when necessary.

What are the consequences of non-compliance with Antitrust & Competition regulations in Indonesia?

Non-compliance may result in fines, sanctions, injunctions, reputational damages, and legal liabilities, impacting business operations and profitability.

What constitutes abuse of dominant position under Indonesian Antitrust & Competition laws?

Abuse of dominant position includes practices such as unfair pricing, discriminatory terms, predatory pricing, and imposing unfair trading conditions to stifle competition.

What types of cases are handled by Indonesian State Administrative Courts (PTUN)?

The cases involve disputes over administrative decrees, including issues related to business permits, licenses, regulatory compliance, issuance of land certificate, land use regulations, administrative sanctions imposed by Indonesian government agencies, etc.

What are the conditions for a state administrative decree to be disputed in Indonesian State Administrative Court (PTUN)?

The state administrative decree shall be written decision; issued by a State Administrative Agency Office; constituting an act of state administrative law; based on relevant legal regulations; concrete, individual, and final; and generating legal consequences for an individual or legal entity.

What are the grounds for challenging an administrative decision in Indonesian State Administrative Courts?

Common grounds for challenging administrative decisions include procedural errors, violations of statutory rights, lack of legal basis, decisions that are deemed unlawful or unfair, etc.

What happens if I miss the 90-day deadline to file a lawsuit in Indonesian State Administrative Courts?

Missing the 90-days deadline to file a lawsuit can result in the case being dismissed due to procedural non-compliance. It is crucial to adhere to statutory deadlines to avoid potential legal obstacles.

Why choose arbitration over traditional litigation?

Arbitration is often chosen for its confidentiality, flexibility in procedure, and the ability to select arbitrators with expertise in the subject matter of the dispute.

What types of disputes are suitable for arbitration in Indonesia?

Commercial disputes

What are the costs associated with arbitration in Indonesia?

It includes administrative expenses of the arbitral institution, arbitrators’ fees, legal fees, and other expenses related to the proceedings.

How to enforce arbitration awards to make it legally binding and force in Indonesia?

The arbitration awards shall be registered in Indonesian court maximum 30 (thirty) days after the award is issued, and then shall obtain a court approval.

Can the Indonesian arbitration awards be challenged or cancelled in Indonesian courts?

Yes, under certain circumstances.

What is the legal remedy if an arbitration award is cancelled by Indonesian court?

Filing an appeal to Indonesian Supreme Court.

What happens if one party refuses to participate in arbitration proceedings in Indonesia?

If one party refuses to participate in arbitration proceedings in Indonesia, the arbitral tribunal may proceed with the arbitration and make a decision based on the evidence and arguments presented by the participating party.

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.

What is Suspension of Debt Payment (PKPU)?

A legal process in Indonesia that allows debtors to propose a restructuring plan to its creditors to avoid bankruptcy.

What is Bankruptcy?

It is a legal status declared by the commercial court for a debtor who is unable to pay its debt when they fall due and whose financial condition is deemed irreparable. This process involves liquidating the debtor’s asset to pay off creditors.

What is the prevailing law of Suspension of Debt Payment (PKPU) and Indonesian Bankruptcy matters?

Indonesian Law Number 37 of 2004, and related regulations.

What are the criteria of Debtor to be declared under Suspension of Debt Payment (PKPU) or Bankruptcy status?

Debtor shall have at least 2 (two) creditors and have failed to pay at least one debt that is due and payable, and the debt criteria can be proven simply.

Who may file a Suspension of Debt Payment (PKPU and Bankruptcy petition?

Both debtor and creditor are eligible to file the petition to Indonesian Commercial Court.

What is the role of Administrator and Receiver?

The Administrator is appointed by commercial court to carry its duty and supervised by a Supervisory Judge during Suspension of Debt Payment (PKPU) process. While the Receiver runs its duty and supervised by a Supervisory Judge during Bankruptcy process.

What happens during PKPU process?

Creditors cannot take enforcement actions against debtor; an Administrator is appointed to oversee the process and a restructuring plan is proposed and voted on by creditors.

Can I settle debts for less than what I owe through PKPU?

Yes, PKPU allows for negotiation with creditors, and it is possible to settle debts for a reduced amount if an agreement is reached.

What if a PKPU plan is rejected by creditors?

The court may declare debtor bankrupts, and debtor’s assets could be liquidated to pay off debts.

How long does the PKPU process take?

The Temporary PKPU period is 45 days, which can be extended to a maximum of 270 days (Permanent PKPU) upon approval if a feasible restructuring plan is in progress. This provides ample time to negotiate and implement a debt repayment strategy.

What happens if Restructuring Plan (Proposal) during PKPU process is approved?

The Restructuring Plan (Proposal) becomes legally binding, and creditors must adhere to the agreed-upon terms. The Debtor will follow the new repayment schedule as proposed in Restructuring Plan, which provides relief and helps stabilize its financial situation.

What happens to my business during bankruptcy?

A Receiver will manage and liquidate your business assets to pay off creditors.

Can I appeal a bankruptcy decision?

Yes, within a certain timeframe and if a bankruptcy status comes directly from a petition of bankruptcy.

How can I prevent my business from going bankrupt?

Timely debt restructuring, effective financial management, and utilizing legal protections like PKPU can help prevent bankruptcy. Engaging our legal services early can provide the guidance needed to avoid financial insolvency.

How does bankruptcy impact my personal assets as a business owner?

For incorporated entities, bankruptcy generally affects the company’s assets only. However, for sole proprietorships or personal guarantees, your personal assets may be at risk. We can advise on the best course of action to protect your interests.

Can I recover from bankruptcy and start a new business?

Yes, once your bankruptcy proceedings are completed, you can start anew. Bankruptcy laws aim to give individuals and businesses a fresh start, though there may be restrictions and considerations to address.

How can I ensure a successful PKPU process?

Success depends on presenting a feasible Restructuring Plan, effective negotiations, and legal compliance. Engaging our experienced lawyers increases your chances of a favorable outcome, providing strategic advice and representation.

How do I start the process of debt restructuring or bankruptcy?

Contact us for a consultation. We will assess your situation, provide legal advice, and guide you through the necessary steps to initiate debt restructuring, PKPU, or bankruptcy proceedings.

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.

What is the typical settlement of debt collection?

Typically, the debtor will pay the debt fully; or enter into a debt agreement that contains the installment of payment by giving an asset guarantee.

How can I enforce a debt agreement?

If the debtor fails to comply with an agreed settlement, legal enforcement measures such as executing the debtor’s asset and court proceedings are conducted.

How does the debt collection process work in Indonesia?

The process is started with legal advice and case analysis by our lawyers, sending demand letters, followed by negotiation and settlement. If the debtor remains unresponsive or refuses to pay, further legal actions like filing a lawsuit through the Indonesian court may be considered if necessary.

How many demand letters shall be sent to the debtor?

In Indonesia, the best legal practice is to send 2x (twice), or a maximum of 3x (three times) demand letters.

What happens if the debtor ignores the first demand letter?

The next steps could include sending the second demand letter and further negotiations. Persistent non-compliance may lead to further legal action or court proceedings.

How long does the debt collection process take?

Depending on the complexity of the case and the debtor’s response.

What are the benefits of out-of-court debt collection?

Typically, faster, less expensive, and less adversarial than going to court. It helps maintain business relationships and avoids lengthy legal battles in court.

Are there any time limits for claiming an unpaid debt in Indonesia?

Yes, there is a statute of limitations, which is the period from the due date of the debt in which you must initiate recovery actions for the debtor.

Can debt collection affect my business relationship?

Handled professionally, debt collection can maintain or even strengthen business relationships by demonstrating a commitment to fair and timely financial practices. Open communication and a fair approach are key.

What if the debtor disputes the debt?

If the debtor disputes the debt, you may need to provide evidence supporting your claim. This could involve negotiations, mediation, or legal action to resolve the dispute.

Can I include interest on overdue debts?

Yes. The interest rate should comply with Indonesian laws.

What should I do if I receive a counterclaim from the debtor?

It is important to consult with our lawyer to assess the validity and implications of the counterclaim. Our lawyer can help you respond appropriately and protect your interests.

What is a Demand Letter?

A demand letter is a formal written notice sent to an individual or entity outlining a legal claim and demanding a specific action, such as payment of a debt or performance of an obligation. It serves as a first step to resolving disputes without resorting to litigation proceedings in court.

When should I use a Demand Letter in Indonesia?

A demand letter is typically used in situations where you have a legal claim against another party, such as unpaid debts, breach of contract, or property disputes. It’s an effective way to seek a resolution before considering legal action in court.

Is a Demand Letter legally required before filing a lawsuit before the Indonesian Court?

Yes, it is legally required according to Indonesian Supreme Court orders.

How long should I give the other party to respond to a Demand Letter?

Typically, a demand letter gives the other party 14 to 30 days to respond, depending on the nature of the claim and the urgency of the situation.

What happens if the other party ignores the Demand Letter?

As your lawyer, we will follow up, conducting communication and negotiation with the other party, before escalating the matter by pursuing legal action in court. The demand letter serves as evidence and legal ground before filing a lawsuit.

Can a Demand Letter be used for Debt Collection in Indonesia?

Yes, a demand letter is commonly used in debt collection to formally request payment of outstanding debts. It can help prompt the debtor to pay or negotiate a settlement before considering more serious legal actions.

Can a Demand Letter be used in International Disputes involving Indonesian law?

Yes. It sets out your claim under Indonesian law and seeks resolution before potentially involving foreign legal systems or arbitration.

What should I do if I receive a Demand Letter?

Read it carefully and understand the claims being made. Assess the validity of the claims and gather relevant documents. Consult with our lawyers to evaluate your legal options. Respond within the timeframe specified, either agreeing to the demands, negotiating, or denying the claims.

Can a Demand Letter be sent via email in Indonesia?

While traditional methods like registered mail are preferred for their formality and proof of delivery, a demand letter can also be sent via email, especially for preliminary negotiations. However, ensure you keep records of correspondence and delivery confirmation.

Can a Demand Letter include a demand for legal fees?

Yes, it can be included for reimbursement of legal fees incurred due to the dispute.

What are the next steps if a Demand Letter is failed?

If a demand letter is ignored or failed, the next steps may include initiating formal legal proceedings, such as filing a lawsuit or seeking arbitration. Consult with our lawyers to determine the best course of action based on the specifics of your case.