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The Transformation of Location Permit into KKPR in Indonesia’s Business Licensing System

As part of the government’s initiative to simplify the business licensing regime through a risk-based approach, Indonesia has eliminated the location permit and replaced it with a new legal instrument known as the Suitability of Spatial Utilization Activities (Kesesuaian Kegiatan Pemanfaatan Ruang – KKPR). This change plays a significant role in the basic licensing framework, particularly for business actors intending to utilize land or space for commercial activities…

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The First Step to a Successful IPO: Comprehensive Guide to Board of Directors and Commissioners Requirements in Indonesia

In the process of preparing for an Initial Public Offering (IPO), a company must not only be financially and operationally ready but must also ensure that its leadership structure and corporate governance comply with the regulations set by Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan or OJK). One of the critical aspects of IPO readiness is the appointment of members of the Board of Directors and the Board of Commissioners…

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How to Draft an Effective Pre-Arbitration Clause in a Commercial Contract

In commercial agreements, disputes are sometimes inevitable. Whether caused by differing interpretations of contract terms, delays, or breaches, a dispute can disrupt business operations and damage relationships. One important tool to manage this risk is a pre-arbitration clause — a provision in a contract that requires the parties to attempt certain dispute resolution steps before proceeding to arbitration…

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Transparency and Disclosure of Information in Public Companies: Legal Obligations and Implementation

A Public Company (Perseroan Terbuka or PT Tbk), a business entity that raises capital from the public through the capital market, is legally required to uphold the principles of transparency and disclosure of information. This obligation is not only crucial for building public trust but also for maintaining an efficient and credible capital market…

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IPO Business Outlook in Indonesia 2025 as a New Momentum Amid Economic Recovery

The year 2025 marks a significant phase for business development in Indonesia, particularly in the context of Initial Public Offerings (IPOs). After navigating through a period of global uncertainty driven by geopolitical tensions and fluctuating interest rates in previous years, the national business climate is beginning to show signs of greater stability. Amidst ongoing economic recovery…

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Shanghai Maritime Court Validates Ad Hoc Arbitration — A Judicial Shift with Lessons for Indonesia

The Shanghai Maritime Court issued a pivotal ruling affirming the validity of an ad hoc arbitration clause, the first decision of its kind following the implementation of the Regulations on Promoting the Establishment of an International Commercial Arbitration Center in Shanghai (“Arbitration Regulations”)…

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Tax Incentives for Public Companies: Corporate Income Tax Reduction of Up to 3%

In an effort to enhance the competitiveness of the capital market and encourage companies to go public, the Indonesian government offers tax incentives to Public Companies that meet certain criteria. This provision is regulated under Article 64 and Article 65 of Government Regulation No. 55 of 2022 on the Adjustment of Regulations in the Field of Income Tax (“GR 55/2022”), which is a derivative of Law No. 7 of 2021 on the Harmonization of Tax Regulations…

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Post-IPO Challenges: What Newly Public Companies in Indonesia Should Be Aware Of

After completing the Initial Public Offering (IPO) process, many companies assume that the most challenging phase is behind them. In reality, becoming a public company marks the beginning of far more complex responsibilities. The success of an IPO is not only measured by how much capital is raised from the public…

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