Blog Category: Legal Updates

Establishing a Business in Indonesia – Foreign Investment Restrictions

Restrictions on foreign shareholders are set out in the Negative Investment List (Daftar Negative Investasi or DNI), as contained in Presidential Regulation No. 44 of 2016 dated 18 May 2016 regarding List of Business Fields That Are Closed and Business Fields That Are Open With Requirements for Capital Investment (PR 44/2016). PR 44/2016 lists areas Establishing a Business in Indonesia – Foreign Investment Restrictions

Indonesian Employment Law Update: New Draft Government Regulation on Termination Benefits

(18 December 2020) Media reports indicate that it is likely a new Government Regulation (\"GR”) on the calculation of termination pay in Indonesia will be issued as early as February 2021. An official draft of the GR has been circulated by the Coordinating Minister for Economic Affairs. Similar to Article 151 of the recently enacted Indonesian Employment Law Update: New Draft Government Regulation on Termination Benefits

E-commerce in Indonesia – Advertising

There is no specific rule in Indonesia that governs online advertising activities. Considering that online advertising is part of an electronic transaction, such advertising is subject to the provisions of Law No. 11 of 2008 on Electronic Information and Transactions (the ITE Law), Government Regulation No. 71 of 2019 on the Implementation of Electronic Systems E-commerce in Indonesia – Advertising

Mining in Indonesia – Business Structures

Most private parties engaging in mining business activities in Indonesia do so in the form of a limited liability company. In respect of foreign investment, Law 25/2007 requires a joint venture company to be established in the form of a limited liability company. Local Entity Requirements A foreign investment company carrying out mining exploration activities Mining in Indonesia – Business Structures

Indonesia Data Protection Laws and Regulations – Processing Personal Data

The principal law governing data protection in Indonesia is Law No. 11 of 2008 regarding Electronic Information and Transactions, as amended by Law No. 19 of 2016 (“Electronic Information Law“). In addition to the Electronic Information Law, rules governing personal data protection are also found in Government Regulation No. 71 of 2019 regarding the Implementation Indonesia Data Protection Laws and Regulations – Processing Personal Data

Corporate M&A in Indonesia – Activism

Shareholder activism is not a defined term, nor is it recognized under any laws in Indonesia. The Indonesian Company Law, however, does provide minority shareholders with certain rights. These rights give them the ability to initiate certain actions that are essentially intended to protect them against potential losses that might be caused by a company’s Corporate M&A in Indonesia – Activism

Establishing a Business in Indonesia – Shareholder Meetings

There are statutory restrictions in Indonesia on the quorum of general meetings of shareholders (GMS). A GMS can be held and is entitled to adopt resolutions if shareholders representing more than half of the company’s shares with voting rights attend or are represented at the meeting, unless the articles of association (AOA) require a higher Establishing a Business in Indonesia – Shareholder Meetings