As experienced Indonesian lawyers specializing in debt collection, we understand the frustrations that come with chasing overdue payments. We are here to help you recover what is rightfully yours, efficiently and professionally.
Our Comprehensive Debt Collection Services Include:
Why Engaging Our Debt Collection Service is Crucial in Indonesia:
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.
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 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 a PT PMA?
A PT PMA is a foreign-owned company in Indonesia, allowing international investors to own shares and operate within Indonesia under specific regulations.
What is a PT PMDN?
PT PMDN is a company fully owned by Indonesian nationals or entities and operates under local investment laws with fewer restrictions than PT PMA.
What is a Representative Office (RO)?
RO is a non-revenue-generating office set up by foreign companies for liaison, market research, or promotional activities in Indonesia.
What is a Permanent Establishment (PE)?
A PE is a foreign company’s local business presence in Indonesia, taxed similarly to local companies and used for operational activities.
What is the minimum number of shareholders required for PT PMA and PT PMDN?
Both PT PMA and PT PMDN require at least two shareholders.
What are the capital requirements for PT PMA and PT PMDN?
PT PMA requires a minimum of IDR 10 billion in capital, while PT PMDN has no specific minimum but must follow general corporate laws.
Can foreigners be involved in PT PMA?
Yes, foreigners can be shareholders and directors in PT PMA, though restrictions apply in certain sectors.
What taxes apply to PT PMA, PT PMDN, RO, and PE?
PT PMA and PT PMDN are subject to corporate taxes and VAT; PEs are taxed on local income, while ROs are not taxed as they don’t generate revenue.
Can a PT PMA operate in all business sectors in Indonesia?
No, certain sectors are restricted or closed to foreign investment under the Negative Investment List. It’s essential to verify sector-specific regulations.
Is local partnership mandatory for a PT PMA?
Not necessarily, but in some sectors, foreign investors must partner with a local entity or individual, depending on the industry’s regulations.
What documents are required to establish a PT PMA?
Key documents include Articles of Association, shareholder and director IDs, a registered office address, and compliance with sectoral licenses.
Can an RO transition into a PT PMA?
Yes, but the process requires establishing a new legal entity (PT PMA) and cannot simply be converted; it involves fulfilling investment requirements.
Can an RO hire employee?
Yes, an RO can hire local staff but is limited in terms of its operational scope since it cannot conduct direct business activities.
Are there industry-specific licenses required for PT PMA or PT PMDN?
Yes, many industries require specific permits or licenses in addition to general company registration, such as those for finance, construction, or mining.
What are the reporting obligations for PT PMA and PT PMDN?
Both must submit annual financial reports, tax filings, and comply with local labor and employment reporting to relevant authorities.
What is the difference between a PE and a branch office?
PE is a local taxable entity for foreign companies engaged in certain business activities, while a branch office is not common in Indonesia except for specific industries like banking.
To register a foreign marriage in Indonesia, you typically need to submit a marriage certificate issued by the foreign country’s competent authority to the Indonesian Civil Registry Office (Dinas Kependudukan dan Catatan Sipil). Additional documents may be required depending on local regulations. If you do not register it and it has been exceeded by more than 1 (one) year, registration is legally required through the Indonesian court mechanism.
The standard working hours in Indonesia are 40 hours per week, with either 7 hours per day for 6 days a week or 8 hours per day for 5 days a week. Overtime is allowed, but it should not exceed 4 hours per day or 18 hours per week, and overtime pay must be provided as per Government Regulation No. 35 of 2021.
No, you cannot hold both at the same time. You must choose between the Work Permit KITAS and the Investor KITAS depending on your role in Indonesia, whether it is as an employee or an investor.
Yes, you can bring immediate family members (spouse and children) under a Dependent KITAS. Your dependents will be issued a KITAS based on your work permit, allowing them to stay in Indonesia legally, though they cannot work.
