Indonesia is one of many countries which has become a destination for foreign investors to make an investment with the purpose of maximizing their profits. Having a large land mass, rich soil and benefitting from a tropical climate, Indonesia is opulent in natural resources such as oil and minerals, timber and raw/semi-processed agricultural products. For those wishing to invest in Indonesia, the usual choice is the foreign-invested Ltd. (in Indonesian: Perseroan Terbatas Penanaman Modal Asing). [1] However, prior to establishing a foreign-invested Ltd., investors are allowed to…

Indonesia, like virtually all other countries around the world, has issued various decrees over the last few months to stop the spread of the Coronavirus. These decrees among others provide for social distancing and require that employees work from home. [1]

However, exemptions apply and some companies are allowed to keep open despite the measures taken. These companies must take various measures and the Ministry of Health recently issued a decree on Workplace Guidelines (the “Guidelines”), [2] setting out clear details of what obligations there are both…

Legal disputes cost companies billions of dollars every year. In addition to court fees and the costs of legal representation, the two biggest cost contributors are the disruption the dispute causes within your company and the (legal) uncertainty arising from the dispute. Therefore, reaching an amicable settlement is often the best way to deal with the dispute.

In spite of the negative side of disputes, you should not make the mistake of settling any dispute you are in. This holds especially true when you are a foreign investor to Indonesia…

Schinder Group considers being charitable and giving back to the community key values to live by. The Coronavirus pandemic gravely affected Indonesia. In addition to many lost lives, there are millions of lost jobs. All the while, the costs of living and for food, in particular, have surged. Schinder Group’s employees understand that rolling up their sleeves and working harder to support those most in need is now required more than ever. In addition to the numerous volunteer causes our employees are involved in on an individual basis, we also engage in firm-wide initiatives. This includes our annual Eid al-Fitr food box donations…

Each country has its own customs when it comes to paying bonuses which are not performance-based to employees on certain occasions. In many parts of the world, employees receive a bonus payment for Christmas, in other parts this is prior to the summer holiday period or for the New Year. In Indonesia, employers are under an obligation pay a so-called “Religious Holiday Allowance” (Tunjangan Hari Raya). [1]

Tunjangan Hari Raya is a non-wage income to be paid once a year and at least seven days prior to the religious holiday in question…

As a country that has natural resources, as well as a fairly high level of economic growth, Indonesia has a good infrastructure development for investors, especially in trading activities. Foreign investors are able to establish a Trading Representative Office orKantor Perwakilan Perusahaan Perdagangan Asing (“KP3A”). KP3A is led by one or more foreigners or Indonesian citizens appointed by the parent company as Representative Executives in Indonesia. The functionality of KP3A is limited to:

Introduce, promote and market the goods…

Any foreign investor to Indonesia must submit an annual investment activity report, detailing all relevant updates regarding its investment in Indonesia subsequent to the initial investment. [1] This report needs to be filed on a quarterly basis with the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal – BKPM) and is called “Investment Activity Report” (Laporan Kegiatan Penanaman Modal – LKPM). In the LKPM, every investor must provide an update on the initial investment …

Since a few weeks, the world news has been dominated by reports on the Coronavirus. More and more countries, including Indonesia, impose travel bans and other measures which greatly impact trade and investment. Every business potentially affected must carefully take the necessary actions to minimize all risks.

In particular, we strongly advise all our clients to proactively mitigate their risk stemming from interruptions to their own operations or those of critical suppliers. We have already advised several of our clients …

Implementation of The Electronic Court
The development of technology in today’s era is moving at an unprecedented rate, especially in the field of information technology which covers the internet. Though technological progress has positively improved the lives of millions of individuals, it has forced the law to match its development in order to reap these same benefits institutionally. Recently, the Supreme Court (“SC”) has enacted a regulation regarding the implementation of electronic court (“e-Court”), designed to more efficiently handle the administrative tasks involved in cases and trials…

Liquidation, or the winding up of a company, is a process during which a company’s assets are seized and realized – that is, converted into cash. This money is typically then used to pay off the company’s debts and liabilities.

The process ensures a fair distribution of a company’s assets between its creditors, members, and shareholders, and results in the termination of the company’s existence once all debts and liabilities have been paid.

Pursuant to Article 142 par. (1) of Law no. 40 Year 2007 regarding Limited Liability Law, liquidation may happen due to:
A decision made in a General Meeting of Shareholders (“GMS”);…