Blog Category: Legal Updates

Private Equity in Indonesia – Incentive Schemes

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Foreign entities often structure acquisitions of Indonesian entities so they can rely on Indonesia’s double tax treaties with, among others, Singapore, Hong Kong or the Netherlands, as governed under Directorate General of Taxation Regulation No. Per-25/PJ/2018 regarding Avoidance of Double Taxation. Further, to encourage investment, Ministry of Finance Regulation No. 258/PMK.03/2008 regarding Article 26 Withholding … Private Equity in Indonesia – Incentive Schemes

Investing in Indonesia – Tax

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Under Indonesia’s tax regulations, there are domestic taxpayers and foreign taxpayers. Foreign individuals who reside or are present in Indonesia for more than 183 days in a 12-month period or who are present in Indonesia and have the intention to live in Indonesia are deemed domestic taxpayers. The 12-month period is based on the current … Investing in Indonesia – Tax

Indonesia Relaxes Mandatory Employer Contributions to Manpower Social Security Programs Amid COVID-19

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By Budi Widuro With COVID-19 infections not slowing in the country, the Government of Indonesia (\"GOI‚Äù) has continued to issue regulations aimed at fighting the pandemic and the economic downturn it has caused. One of the most recent policies from the GOI is the relaxation of mandatory contributions by employers to manpower social security programs. … Indonesia Relaxes Mandatory Employer Contributions to Manpower Social Security Programs Amid COVID-19

Corporate Governance in Indonesia – Current Issues and Developments

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By Rusmaini Lenggogeni Issues regarding corporate governance in Indonesia revolve around the implementation of corporate governance in the regulations and the execution thereto. Compared to other countries, corporate governance in Indonesia is still developing, particularly for those businesses not covered by specific corporate governance regulations. However, with the regulations passed by the Financial Services Authority … Corporate Governance in Indonesia – Current Issues and Developments

New Look for Indonesia’s Construction Services Development Agency

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A new regulation has introduced significant changes to the implementation of Indonesia\’s Construction Services Law, which will affect business actors in the country’s construction sector. The new regulation, Government Regulation Number 22 of 2020 (“GR 22“) regarding Implementing Regulations of Law Number 2 of 2017 regarding Construction Services (January 12, 2017) (the “Construction Services Law“), … New Look for Indonesia’s Construction Services Development Agency

Private Equity in Indonesia, Market Overview

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By Rusmaini Lenggogeni In Indonesia, information on private equity investments is not readily available. Private equity transactions are usually done through the framework of a merger and acquisition/private investment, as provided in Law No. 40 of 2007 regarding Limited Liability Companies (Company Law). If the investment target is a public Indonesian company the transaction will … Private Equity in Indonesia, Market Overview