Category: Investment Regulatory & Corporate Secretarial

An Update on Business License by Omnibus Law

“The Omnibus Law changed on the business licensing from the classifications, requirements, to the process itself. The Environment aspect is will also be one of the approval documents, especially for the high-risk business activity.” In order to attract investors and bolster investment, the Government through Omnibus Law simplifies the licensing process and investment requirements by […]

An Investment Activity Report [LKPM]: An Obligation for PMA Company

“The purpose of LKPM serve as means of conveying report on investment realization and communication between BKPM and business actors, including the PMA Company.” Law Number 25 of 2017 on Capital Investment (“Investment Law”) has obliged all business actors to create Investment Activity Report (“Laporan Kegiatan Penanaman Modal” or “LKPM”) and submitted to Indonesia Investment […]

An Update of Regulations on Foreign Construction Services Enterprises (BUJKA)

“The Ministry of Public Works and Public Housing has finally addressed the concerns of BUJKA Enterprises in Indonesia by revoking Regulation No. 09/PRT/M/2019 and issuing Circular Letter No. 22/SE/M/2019. As of November 2019, the provisions on BUJKA has been restored to its previous state which is acceptable to all parties.” In June 2019, Ministry of […]

New Regulation on Cryptocurrency Business in Indonesia

“Indonesian Commodity Futures Trading Regulatory Agency (Bappebti) issued Bappebti Regulation No. 9 of 2019 (“PerBappebti 9/2019”) in July 2019 to amend Bappebti Regulation No. 5 of 2019 (“PerBappebti 5/2019. The regulation changed most of the capital requirement, the requirement, controlling party, and the possibility of becoming a crypto asset physical trader applicant instead of directly […]

Company Liquidation Process in Indonesia

“During the liquidation process, the Company will not allowed to conduct any legal action, except if it is required to settle all of the Company’s business limitedly only for the purpose of liquidation process.” Indonesia is known as one of Asia’s most attractive emerging markets and investment target (source: indonesia-investments.com). Many investors have established their […]

General Meeting of Shareholders in a PT (Limited Liability Company)

“As one of the important organs in the Limited Liability Company (a PT/Perseroan Terbatas), Law No.40 of 2007 concerning Limited Liability Company (“UU PT”) regulates the authority, the requirement and procedure also the clause about circular resolution.” Limited Liability Company in Indonesia has three different important organs that operate its functions; Board of Directors, Board […]

Legal Compliances of the Representative Office in Indonesia

“Representative Office obliged to submit the activity report to the BKPM.” In Indonesia, the term representative office refers to an office lead by a chief of representative appointed by a foreign company outside of Indonesia as its representative in Indonesia, however in details it is actually further divided into four, which are General Representative Office […]

The Implementation of Beneficial-Owner Principle in Indonesia

“Indonesia Government regulates beneficial ownership principle in some regulations to create legal certainty. The regulations mentioned about the definition, limitation, also sanction for incompliance.” According to The Financial Action Task Force (FATF), beneficial owner refers to the natural person(s) who ultimately owns or controls a customer and/or the natural person on whose behalf a transaction […]

KBLI Adjustment Obligation: The Arising Issue

“There is news that spreads around business actors that if a company does not adjust their purposes and objectives of the company within 1 (one) year after the joint announcement date of issuance, there will be a sanction that would be imposed to them in the form of business identification number freezing.” Ministry of Law […]