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…

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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…

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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…

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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…

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