Cross-border investments often involve contractual relationships between foreign investors and companies established in Indonesia, including Foreign Investment Limited Liability Companies (Perseroan Terbatas Penanaman Modal Asing or “PT PMA”)…

A lender financing a renewable energy plant in Indonesia is usually repaid from one source: the electricity the project sells to PT PLN (Persero) (“PLN”) under a power purchase agreement (“PPA”). Under project finance, the loan is serviced from the project’s own cash flow rather than the parent company’s balance sheet, so it depends on the PPA…

Many companies buy land first and build later. Funding has not been disbursed, permits are still in process, or business plans change. As long as the Right to Build (Hak Guna Bangunan, “HGB”) or Right to Cultivate (Hak Guna Usaha,“HGU”) certificate remains in the company’s name, the land is usually considered safe. Since 6 November 2025, that assumption has become risky…

In conducting business activities, directors are faced with various strategic decisions, ranging from investment and expansion to product development and commercial cooperation. Each of these decisions carries both the potential for profit and the risk of loss. Even decisions made after careful business consideration may result in losses due to changes in market conditions, economic circumstances, or other external factors…

For companies seeking access to the capital market, an Initial Public Offering (“IPO”) is one of the conventional routes to becoming a public company and listing its shares on a stock exchange. However, another corporate strategy that may be considered is a Reverse Takeover (“RTO”)…

Many business founders, including foreign investors setting foot in Indonesia for the first time, are drawn to virtual offices as their company’s registered address. The cost is far lower than renting physical space, particularly in the early stage when operations haven’t fully kicked off. The question that follows, and one often only realised once the incorporation process is already underway…

Indonesia’s mining sector continues to undergo significant regulatory developments aimed at strengthening governance, enhancing transparency, and promoting fair competition. One of the latest developments is the issuance of Minister of Energy and Mineral Resources Decree No. 365.K/MB.01/MEM.B/2026 (“MEMR Decree 365/2026”)…

Foreign investors commonly fund their Indonesian subsidiaries through shareholder loans rather than additional equity. While this structure can provide flexibility and, subject to applicable tax rules, allow interest expenses to be deducted for income tax purposes, excessive reliance on debt can create tax and corporate issues…

For companies employing Foreign Workers (“TKA”) in Indonesia, compliance is not limited to having the required work and stay permits. Companies also need to ensure that the TKA’s position, work location, employment period, and other relevant information remain consistent with the documents supporting their employment…

A distribution agreement may come to an end, but a distributor may not immediately stop using the principal’s brand. A former distributor may continue displaying the principal’s logo, using its trademark on websites or social media, distributing promotional materials, or representing itself as an authorized distributor…