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The rights and extent foreign firms are allowed to invest in Indonesia can be found in Law No.25 2007: Capital Investment. Indonesia’s laws regarding foreign investment are limited with certain economic sectors closed off from investment altogether. Some industries in Indonesia have maximum foreign ownership and minimum capital input, regulated by the government of Indonesia.
There are no requirements or regulated procedures for Due Diligence in Indonesia although there are certain regulations in corporate mergers and acquisitions. Due Diligence in Indonesia usually encompasses information on corporate organization, liquid and illiquid assets, and both short and long-term liabilities.
As of 2020, an amendment to Law No.4 2009: Mining Law puts the central government of Indonesia to be the authority over supervising mining operations in Indonesia. Businesses engaged with mining have special licenses issued by the government to operate legally.
The oil and gas industry in Indonesia is governed by Law No.22 2001: Oil and Gas Law which states that only the government has exclusive rights for oil and gas exploitation. Private firms that aims to exploit Indonesia’s oil and gas resources must enter into a cooperative agreement with the Indonesian government.
Bankruptcy Law in Indonesia is stated in-detail in Law No.37 2004: Bankruptcy and Suspension of Payments. Indonesia has special regulations and procedures regarding bankruptcy based on the type and size of the organization wishing to declare themselves bankrupt.
Litigation and Disputes in Indonesia is explained and defined in Law No.30 1999: Arbitration and Alternate Dispute Resolutions. Stated in Article 1 No.10 of Law No. 30 1999, The Indonesian legal system allows for out-of-court dispute resolutions between opposing parties such as through consultation, negotiation, mediation or reconciliation, often with an experienced legal professional.
Banking and Finance in Indonesia is regulated by the Financial Services Authority (Otoritas Jasa Keuangan/OJK) and is primarily governed by Law No.7 1992: Banking and its amendment Law No.10 1998. The OJK has wide supervisory powers such as regulation of banking institutions, supervising the risk management and solvency rating of banks, and overall examination to enfore legal banking practices.
Securities and Assets that are recognized and monitored by the Indonesian government are: mortgages, fiduciary security, pledge, hypothec, and warehouse receipts. These are all detailed in Law No.4 1996: Mortgage Rights over Land and Objects relating to Land and states the different uses of each security and how to handle certain assets.
The formal regulation of laws relating to insurance can be found in Law No.40 2014: Insurance. The Financial Services Authority (Otoritas Jasa Keuangan/OJK) is responsible for overseeing insurance companies and enforcing related regulations.
There is no special body for maritime arbitration in Indonesia and does not have regulated procedures for vessel arrest. Indonesian maritime and shipping law is regulated by Law No.17 2008: Shipping Law.
The foundations of Indonesian law regarding property ownership and development can be found inLaw No.5 1960: Agrarian Law. Land usage in Indonesia is segmented based on the form of ownership such as Land for Rent and Land for Cultivation are treated distinctly. Indonesia also does not allow foreigners to own property.
Regulations regarding copyright, patents and trademarks can be found in a collection of Indonesian laws such as the Commercial Mark in 1961, Copyright Law in 1982, and Patent Law in 1989 with numerous amendments throughout the years, most notably Law No.28 2014: Concerning Copyrights and Law No.13 2016: Concerning Patent
Indonesian labor laws and work regulations are being updated each year with new additions culminating in a series of laws since Indonesia’s independence in 1945. Most notably, Law No.21 1999 states that employees are protected from discrimination with a maximum of 40 hours per week. Employers must also provide employees time to perform religious observances such as Muslim prayers which are conducted five times a day.
Indonesian laws relating to marriage and family are based on Law No.1 1974: Marriage Law. A family unit is defined as a couple who has married and registered their marriage to the Civil Registry Office. Divorce in Indonesia is allowed under sufficient reasons such as abuse, illness, imprisonment or adultery.
Bachelor of Law University of Lampung
Indonesian Advocates Association (PERADI)
andi@swrplaw.com
1. Bachelor of Law, Krisnadwipayana University
2. Master of Law, Gadjah Mada University
Indonesian Advocates Association (PERADI)
Himpunan Kutator Pengurus Indonesia (HKPI)
nata@swrplaw.com
1. Bachelor of Law, Ahmad Dahlan University
2. Master of Law, University of Indonesia
Indonesian Advocates Association (PERADI)
dio@swrplaw.com
1. Bachelor of Law, Ahmad Dahlan University
2. Master of Law, islamic University of Indonesia
Indonesian Advocates Association (PERADI)
Bachelor of Law, Ahmad Dahlan University
Indonesian Advocates Association (PERADI)
Bachelor of Law, Ahmad Dahlan University
Indonesian Advocates Association (PERADI)
1. Bachelor of Law, Ahmad Dahlan University
2. Master of Law, islamic University of Indonesia
Indonesian Advocates Association (PERADI)
1. Bachelor of Law, Ahmad Dahlan University
2. Master of Law, islamic University of Indonesia
Indonesian Advocates Association (PERADI)
Bachelor of Law, Ahmad Dahlan University
Indonesian Advocates Association (PERADI)
Bachelor of Law, Ahmad Dahlan University
Indonesian Advocates Association (PERADI)