
Indonesia Relaxes TKDN Requirements Under MOI Regulation No. 35 of 2025: What Foreign Investors and Manufacturers Need to Know
Indonesia has introduced a significant reform to its Domestic Component Level (Tingkat Komponen Dalam Negeri or “TKDN”) regime through the issuance of Minister of Industry Regulation No. 35 of 2025 (“Permenperin 35/2025”). The regulation reflects the Government’s effort to create a more flexible and investment-friendly approach toward local content requirements in Indonesia…

Probation Period in Indefinite-Term Employment Agreements (PKWTT)
The probation period (masa percobaan kerja) remains a common feature in employment practices in Indonesia, particularly within Perjanjian Kerja Waktu Tidak Tertentu (PKWTT) or indefinite-term employment agreements. While probation serves as a mechanism for employers to evaluate employee suitability, Indonesian labor law imposes clear statutory limitations and obligations to ensure worker protection during this period…

Ensuring Compliance with Indonesian Wage Regulations
Wages constitute one of the most fundamental elements in the employment relationship between employers and employees. A fair and transparent wage system not only supports employee welfare but also provides legal certainty for companies in managing their workforce. Under Indonesian labor law, the regulation of wage structures, wage scales, and wage components is governed…

When Projects Stall: Managing Delay and Cost Overrun Risk in Indonesia’s Construction Sector
Indonesia continues to experience rapid infrastructure and construction growth, driven by urban development, industrial expansion, and national strategic projects. While these projects present significant economic opportunities, they also carry increasing legal and commercial risk. Delays in project completion, cost overruns, and disputes regarding responsibility have become recurring challenges across the construction sector…

Administrative Designation of Non-Active Corporations in Indonesia and Its Implications for Corporate Compliance
Ministry of Law of the Republic of Indonesia through the Directorate General of General Legal Administration (AHU) has established a policy concerning the administrative designation of non-active corporations as stipulated in Circular Letter of the Director General of General Legal Administration…

The Distinction Between Ownership and Contractual Control in CKD Business Structures
In a corporate business context, control by foreign or external parties typically happened through shareholding. However, in certain circumstances, such control does not derive from equity ownership, but rather established contractually, one example being through a Completely Knocked Down…

Implementation of KBLI 2025 in the OSS System: Timeline, Adjustment Requirements, and Legal Implications
In accordance to the implementation of KBLI 2025 as stipulated in Government Regulation No. 28 of 2025 concerning the Administration of Risk-Based Business Licensing (“GR 28/2025”), the Minister of Investment and Downstream Industry/Head of the Investment Coordinating Board, the Minister of Law…

Good Faith vs. Fixed Price: Navigating Cost Escalation Claims in Indonesia
In business practice, commercial relationships are typically formalized through legally binding contracts. However, during the implementation of the contract, circumstances beyond the parties’ anticipation or the contractual scope may arise. These situations are frequently associated with force majeure…

Intellectual Property, Cross-Border Data, and Compliance Risks in Artificial Intelligence Deployment
Part 2: Who Is Liable When Artificial Intelligence Causes Harm?
“Intellectual Property, Cross-Border Data, and Compliance Risks in AI Deployment”: Deploying artificial intelligence technology is often viewed as a technical or operational milestone. In practice, however, legal risk frequently…

Automated Decision-Making and Legal Responsibility Under Indonesian Law
Part 1: Who Is Liable When Artificial Intelligence Causes Harm?
“Automated Decision-Making and Legal Responsibility Under Indonesian Law”: Artificial intelligence (AI) technologies are increasingly embedded in business operations across Indonesia, including financial services, digital…
Practice Area
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