Liquidated damages are damages or compensation whose amount has been agreed and determined in advance by the parties in a contract before the agreement is signed. Such amount becomes payable by the party in breach of the contract (wanprestasi), commonly as a result of a delay in completing the works. Under Articles 1239 and 1243 of the Indonesian Civil Code liquidated damages may be understood as a form of compensation determined and agreed upon by the parties from the outset of the contractual relationship…

For foreign investors holding shares in an Indonesian PT PMA, the ability to bring profits back to their home country is an important consideration. In principle, Indonesian law permits investors to transfer and repatriate investment-related funds, including capital, profits, dividends, interest, royalties, and proceeds from the sale or liquidation of an investment…

When entering a business partnership, founders and investors may assume that the Articles of Association (“AoA”) provide sufficient protection for their respective interests. In practice, however, the AoA primarily addresses corporate matters required under Indonesian law and may not fully capture the commercial arrangements agreed between shareholders…

Human Rights Due Diligence (“HRDD”) is becoming an increasingly important aspect of corporate compliance in Indonesia. Broadly, HRDD refers to a process through which businesses identify, assess, prevent, mitigate, monitor, and address actual or potential adverse human rights impacts arising from their operations and business relationships…

Holding a minority stake in an Indonesian Perseroan Terbatas (PT) does not mean losing your rights as a shareholder. Under Law No. 40 of 2007 concerning Limited Liability Companies (“UUPT”), shareholders have the right to attend and vote at the General Meeting of Shareholders (“RUPS”…

Indonesia has approximately 23.2 GW of geothermal potential, with only around 11.6% currently developed into installed capacity. Based on ESDM data as of June 2026, the potential is distributed across 369 locations…

In the procurement of goods and services in Indonesia, timely delivery is an important consideration alongside the quality and price of the goods. Delayed delivery of goods can disrupt production processes, construction projects, inventory management, and may result in losses for the buyer…

For online sellers in Indonesia, the mechanism for collecting Income Tax through electronic commerce platforms is set to change. The Directorate General of Taxes (“DGT”) has confirmed that the collection of Article 22 Income Tax (“PPh Article 22”)…

In large-scale financing transactions, creditors rarely rely solely on the principal debtor’s repayment capacity. Market practice addresses this with the corporate guarantee (jaminan perusahaan), a guarantee provided by a legal entity, typically a limited liability company, to secure another party’s obligations, whether a subsidiary, affiliate, or third-party business partner…

For companies with trade, investment, or payment relationships with business partners in Singapore, Bank Indonesia has just issued a regulation with the potential to change how such cross-border transactions are settled. Through Peraturan Anggota Dewan Gubernur (PADG) No. 25 of 2026 concerning the Settlement of Bilateral Transactions between Indonesia and Singapore Using Rupiah and Singapore Dollar through Banks…