Taking the role of our client’s corporate legal counsel and helping our clients navigate the increasingly complex Indonesian regulatory landscape, we do general commercial work and regularly advise on the full life cycle of business matters.
Corporate legal compliance is the most priority legal concern for all sizes of companies and across all sectors and industries. With the potential legal risks of non-compliance being a great issue in the near future, a company needs to make sure that they are doing business legally and mitigate potential legal issues so that the business will run smoothly.
Our lawyers possess extensive technical experience in providing advice, guidance, preparing documentation, and legal compliance on a broad range of issues arising from day-to-day operational activities related to general and commercial matters.
Our goals are to simplify complex legal matters, defend and safeguard our clients’ business interests, minimize potential legal risk, and maximize results for our clients.
Why do you need our General Corporate, Legal Advisory & Legal Compliance service?
Working without a proper Work Permit KITAS (Index E23) is a serious violation of Indonesian immigration laws. It can lead to fines, deportation, and possible blacklisting, preventing future entry into Indonesia. Always ensure you have the correct permit before engaging in any employment.
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 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.
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.
Minimum wages are set by the government and vary by region. Employers must ensure that wages paid to employees are at least equal to the regionally established minimum wage. Failure to comply can result in sanctions and penalties.
In most cases, changing visa types (e.g., from a Business Visa to a KITAS) requires leaving Indonesia and applying from abroad. However, specific visas, such as a temporary visa to KITAS, may be converted under certain conditions. We can guide you on the best approach based on your situation.
Yes, as an investor, you are allowed to manage and oversee your investments. However, the Investor KITAS does not permit traditional employment for other companies; it only covers activities related to managing your investments.
The Industrial Relations Court is responsible for resolving employment disputes that cannot be settled through bipartite negotiations, mediation, or tripartite through Local Manpower Institution. This court handles disputes related to termination, wages, collective labor agreements, and etc.
