Newsletter

Freedom of Contract in Indonesia: Scope and Limitations for Foreign Investors



Freedom of contract or the freedom to make an agreement, is a fundamental principle in civil law that grants parties the right to determine the content, form, and terms of an agreement. In Indonesia, this principle is enshrined in Article 1338 of the Indonesian Civil Code, which states that any agreement made legally is binding as law for the parties who make it...

Establishing Captive Power Plants in Industrial Areas of Indonesia



Indonesia with its abundant natural resources, competitive land and labor prices, and supportive foreign investment policies, is an attractive destination for foreign investors, particularly for establishing factories. However, to ensure investment success, especially in energy-intensive sectors such as mining, textiles, and medical equipment production, it is crucial for investors to consider energy solutions...

Empowering Indonesia's Aluminum Industry: The Impact of the SGAR Mempawah Project on Industrial Self-Sufficiency



The Indonesian government continues to demonstrate its commitment to advancing the mineral downstream industry by implementing a bauxite ore export ban. This step is part of a broader strategy to increase the added value of Indonesia's natural resources, previously exported in raw form, and is expected to strengthen the national economic structure by enhancing the competitiveness of domestic industries...

From Physical Stores to Digital Platforms: A Legal Guide for Foreign Retailers Expanding into Indonesia



In Indonesia, retail companies primarily focus on physical retail operations. However, with the rise of e-commerce, many are exploring the integration of Web Portals for Trade to expand their operations to online platforms. This legal framework allows companies to engage in electronic trade, aligning with the country's growing e-commerce ecosystem while adhering to Indonesia's regulations on electronic...

Indonesian Building Compliance Guide: The Importance and Legal Requirements of the SLF Certificate



The utilization of buildings in Indonesia must comply with stringent regulations, one of which is the mandatory possession of a Certificate of Feasibility (Sertifikat Laik Fungsi or SLF). SLF is an official document that certifies a building has met the requirements of safety, health, comfort, and accessibility, making it fit for use. According to Law No. 6 of 2023, building owners or users...

Key Points of Legal Compliance in Indonesian Government Procurement: Eight Major Mechanisms for Goods and Services



Government Procurement of Goods and Services is regulated by the President Regulation No. 16 of 2018 concerning Government Procurement of Goods and Services and has been amended by the President Regulation No. 12 of 2021 ("PR 12/2021") issued on 2 February 2021. PR 12/2021...

Labor and Employment Regulations for Foreign Construction Companies in Indonesia



Foreign construction companies operating in Indonesia must navigate a comprehensive set of labor and employment regulations designed to ensure lawful practices and foster positive employee relations. Understanding and adhering to these regulations is crucial for effective human resource management...

Operating Foreign-Owned Applications in Indonesia: What You Need to Know



Indonesia, with its rapidly expanding digital economy and large population, has become an attractive market for foreign companies seeking to operate applications. However, foreign entities must carefully navigate Indonesia's regulatory framework to ensure full compliance. This article outlines the key legal requirements that foreign-owned applications...

The Overview of Procedures for the Issuance of Port Clearance and Clearance for Vessel Activities



The Minister of Transportation ("MoT") enacted MoT Regulation Number 28 of 2022 concerning the Procedures for the Issuance of Port Clearance and Clearance for Vessel Activities at Port ("MoT Reg 28/2022") on 23 September 2022 that revoked the MoT Regulation Number 82 of 2014 ("MoT Reg 82/2014") and applies the new procedures regarding the issuance for Port Clearance (Surat Persetujuan Berlayar/"Port Clearance")

The First Key Step to Project Success in Indonesia: Legal Investigation That Must Not Be Overlooked by Chinese Companies



As Chinese companies continue to expand their presence in Indonesia, taking advantage of its rich natural resources, strategic location, and growing market, the importance of a thorough legal investigation cannot be overstated. Many promising ventures have been derailed by regulatory hurdles, unexpected legal complications, or overlooked compliance issues...