Blog Category: Legal Updates

Corporate Governance in Indonesia – Relationship Between Companies and Shareholders

|

By Rusmaini Lenggogeni Shareholders, since they provide the capital for the company, shall have rights and responsibilities toward the company in accordance with the relevant laws and regulations in Indonesia and the Articles of Association (AOA) of the company. Although shareholders do not par­ticipate directly in the management or supervision of the company, they are … Corporate Governance in Indonesia – Relationship Between Companies and Shareholders

Indonesian Constitutional Court Ruling Changes Fiduciary Security Execution

|

By Syahdan Z. Aziz and Michael Amos Djohan On January 6, 2020, the Indonesian Constitutional Court issued Decision No. 18/PUU-XVII/2019, declaring that Articles 15(2) and 15(3) of Law No. 42 of 1999 on Fiduciary Security (the \"Fiduciary Security Law‚Äù) are partially unconstitutional. The court was ruling on a lawsuit arguing that it was a violation … Indonesian Constitutional Court Ruling Changes Fiduciary Security Execution

Establishing a Business in Indonesia – Foreign Investment Restrictions

|

Restrictions on foreign shareholders in Indonesia are set out in the Negative Investment List (DNI), as contained in Presidential Regulation (PR) 44/2016. PR 44/2016 lists areas in which investment by both Indonesians and foreign nationals is prohibited or restricted. In addition to PR 44/2016, the laws and regulations governing certain lines of business must be … Establishing a Business in Indonesia – Foreign Investment Restrictions

Mining in Indonesia – Restrictions on the Processing, Export or Sale of Minerals

|

Mining companies in Indonesia must refine or process mining products domestically. Mining companies can construct their own smelter or enter a cooperation with other mining or smelter companies through the sale and purchase of ore or concentrate, or the joint construction of a smelter, subject to the approval of the Ministry of Energy and Mineral … Mining in Indonesia – Restrictions on the Processing, Export or Sale of Minerals

Data Protection and Cybersecurity in Indonesia: Enforcement and Litigation

|

The Electronic Information Law, Government Regulation 82 regarding the Implementation of Electronic Systems and Transactions, and Ministry of Communication and Informatics (MOCI) Regulation 20 regarding the Pro­tection of Personal Data in Electronic Systems (jointly referred to as the PDP Regulations) do not provide much detail on the standards that must be established by regulators in … Data Protection and Cybersecurity in Indonesia: Enforcement and Litigation

Legislative and Governmental Controls Applicable to Design, Appearance and Method of Construction in Indonesia

|

By Denny Rahmansyah Building construction in Indonesia must adhere to technical requirements as imposed by the government. Government Regulation No 36 of 2005 regarding the Implementation of Law No. 28 of 2002 regarding Building (GR 36/2005) imposes an \"intensity requirement‚Äù for the construction of a building, whereby a building must be constructed not exceeding certain … Legislative and Governmental Controls Applicable to Design, Appearance and Method of Construction in Indonesia

Corporate Governance in Indonesia – Directors and Officers

|

By Rusmaini Lenggogeni Companies in Indonesia must have at least one director, except for specific companies whose business relates to the collection or management of public funds, and companies that issue acknowledgements of indebtedness to the public, which must maintain a Board of Directors (BOD) with at least two members. The Indonesian Corporate Governance Manual … Corporate Governance in Indonesia – Directors and Officers

Corporate M&A in Indonesia – Scope of Due Diligence

|

There are no specific requirements or procedures for due dil­igence before acquiring a company. However, it is common and best practice for a bidder to perform due diligence on the target company before proceeding with an acquisition. In practice, the due diligence will cover the following:   corporate organization and general information; compliance with general … Corporate M&A in Indonesia – Scope of Due Diligence