A limited liability company provides shareholders with limited liability protection, but such protection is not absolute. Under certain circumstances, the separation between a company and its shareholders may be disregarded (piercing the corporate veil), while directors may also face personal liability under Indonesian Company Law. These risks include corporate misuse, commingling of personal and corporate … Read more
The entry into force of Government Regulation (PP) No. 33 of 2026 concerning the Implementing Regulation of the Personal Data Protection Law (UU) on 16 January 2027 marks an important milestone for companies in strengthening personal data governance and controls. This overview outlines the implications of personal data protection risks for business continuity, financial performance, … Read more
Corruption is a serious criminal offense that can cause losses to state finances and adversely affect business continuity and corporate reputation. In conducting business activities in Indonesia, companies face corruption risks, particularly in licensing processes, the procurement of goods and services, tender processes, and interactions with state officials. Preventing these risks requires the implementation of … Read more
Choosing the appropriate business presence structure is a strategic decision for foreign investors seeking to expand their businesses in Indonesia. A mismatch between commercial activities and the business structure adopted may give rise to licensing risks, tax liabilities, and a reduction in after-tax profits. This discussion outlines the considerations involved in determining the appropriate form … Read more
Minister of Trade Decree No. 1907 of 2026 concerning the Establishment of the Assessment Team for Foreign Electronic Trading System Operators establishes a team responsible for assessing whether foreign Electronic Trading System Operators (Penyelenggara Perdagangan Melalui Sistem Elektronik or PPMSE) meet certain criteria when they actively offer and/or conduct electronic trading activities with consumers in … Read more
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
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