Establishing and operating a business in Indonesia requires foreign investors to have a comprehensive understanding of the applicable legal and licensing framework. The establishment of a Foreign Investment Limited Liability Company (PT PMA) and the acquisition of a Business Identification Number (NIB) represent only the initial stages of a broader range of ongoing obligations. Investors … Read more
Sustainability is increasingly becoming an important part of financing, customer relationships, supply chains, risk management, and long-term value creation. For foreign investors operating in Indonesia, sustainability expectations come not only from regulators but also from banks, customers, investors, headquarters, and business partners. Therefore, companies need to develop the ability to identify, measure, manage, and communicate … Read more
Entering the Indonesian market requires more than an understanding of population size, economic growth, or emerging sectors. For investors and companies considering expansion, the key challenge is to translate macroeconomic conditions into testable business assumptions, identify the relevant market and location, understand competition and cost dynamics, and ensure that the business model can operate within … Read more
Trust in business is built not only through reputation but also through a company’s ability to demonstrate accountability for its transactions, assets, liabilities, decisions, and operational activities. For Foreign Investment Companies (PMA) in Indonesia, the quality of financial records, tax and corporate compliance, internal controls, and readiness for audits and regulatory examinations are important elements … Read more
For foreign investors, taxation in Indonesia is part of the business cycle and can affect cash flow, transaction structures, investment returns, and business sustainability. Tax obligations may arise from various activities, including sales, purchases, payroll, imports, cross-border transactions, and profit distributions to shareholders. Therefore, tax management needs to consider the timing of tax obligations, responsible … Read more
NAVIGATING INDONESIA – An Investor’s Guide Navigating Market Dynamics洞悉市场动态Menavigasi Dinamika Pasar Navigating the Legal Framework洞悉法律框架Menavigasi Kerangka Hukum Navigating Accounting & Assurance洞悉会计与鉴证Menavigasi Akuntansi dan Asurans Navigating the Tax Environment洞悉税务环境Menavigasi Lingkungan Perpajakan Navigating Sustainability Outlook洞悉可持续发展前景Menavigasi Arah Keberlanjutan
In line with the development of Indonesia’s tax system and the increasing role of tax professionals in supporting taxpayer compliance, the Government has issued Minister of Finance Regulation (PMK) No. 55 of 2026 concerning Tax Consultants and Other Parties Acting as Taxpayer Representatives. This regulation replaces PMK No. 111/PMK.03/2014, as most recently amended by PMK … Read more
Sustainability governance is becoming increasingly important as regulatory requirements and expectations from investors, customers, and other stakeholders continue to grow. Sustainability is no longer merely a reporting agenda, but has become an integral part of corporate decision-making, risk management, and strategy. In Indonesia, regulatory developments, including OJK Regulation No. 51/POJK.03/2017 and the implementation of PSPK … Read more
The issuance of Sustainability Disclosure Standards 1 (PSPK 1) and PSPK 2 marks a strengthening of sustainability reporting in Indonesia. Approved on 1 July 2025 and effective for annual reporting periods beginning on or after 1 January 2027, the two standards refer to IFRS S1 and IFRS S2. This article discusses PSPK 1 as the … Read more
Sustainability reporting in Indonesia has entered a critical phase amid the strengthening of sustainability disclosure and assurance regulations and standards. Although POJK 51/2017 requires sustainability reporting, challenges remain, particularly limited disclosure of Scope 3 emissions and the absence of a comprehensive mandate for sustainability assurance. These conditions may increase the risk of greenwashing and undermine … Read more
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