Insights.
Plain-language notes on the legal questions Indonesian businesses and individuals actually ask.
LatestTerminating Employees in Indonesia (2026): Severance, the Omnibus Law, and What Foreign Employers Get Wrong
Indonesia has no at-will employment. To lawfully dismiss a permanent employee, a foreign employer must have a statutory ground (Article 154A, Manpower Law), give 14 working days' written notice, and pay a statutory severance package — severance pay, service pay, and compensation of rights (Article 40, GR 35/2021). Since Constitutional Court Decision 168/PUU-XXI/2023, a contested dismissal only takes legal effect after a final court ruling.
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Contracts & CommercialDo Contracts in Indonesia Have to Be in Indonesian? The Dual-Language Rule Explained (2026)
Yes. Under Article 31 of Law No. 24 of 2009, any contract involving an Indonesian party must be drawn up in the Indonesian language — and, where a foreign party is involved, also in English or the foreign party's language. An English-only contract has been declared null and void by Indonesian courts (the Nine AM case), and although Supreme Court Circular Letter No. 3 of 2023 has softened that risk, relying on it is playing defense. The safe path is a signed bilingual version.
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Foreign InvestmentPT PMA vs Local PT vs Representative Office: Which Entity Should a Foreign Founder Choose in Indonesia? (2026)
If you will invoice even one Indonesian customer, you need a PT PMA — a foreign-owned limited liability company under Law No. 25 of 2007. A local PT cannot lawfully hold your shares through a nominee, and a representative office cannot earn revenue at all. The right choice depends on revenue, sector, and timing.
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Foreign InvestmentCan a Foreigner Own 100% of a Company in Indonesia? The Positive Investment List Explained (2026)
Yes — in most sectors. Since Presidential Regulation No. 10 of 2021 (as amended by No. 49 of 2021), Indonesia's default rule is that every business field is open to 100% foreign ownership unless it is expressly closed, capped, or reserved for local MSMEs. The real constraints are your KBLI business classification and the IDR 10 billion minimum investment per business line.
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Foreign InvestmentNominee Arrangements in Indonesia: Why "Borrowing" an Indonesian's Name to Own a Business or Property Is Illegal and Risky
A nominee arrangement — where a foreigner holds shares or land in an Indonesian citizen's name while keeping the real control and benefit — is prohibited and null and void under Indonesian law. For company shares it violates Article 33 of Law No. 25 of 2007 on Investment; for land it violates Articles 21 and 26 of the Basic Agrarian Law (Law No. 5 of 1960). "Void" means the arrangement is treated as if it never existed, no Indonesian court will enforce it, and the foreigner has no legally recognized ownership at all. The paperwork the agents sell you does not fix this.
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Foreign InvestmentPT PMA Minimum Capital in Indonesia (2026): What the New IDR 2.5 Billion Rule Actually Means
As of 2 October 2025, the minimum paid-up capital for a foreign-owned company (PT PMA) in Indonesia is IDR 2.5 billion per company — down from IDR 10 billion — under BKPM Regulation No. 5 of 2025. But the total investment plan must still exceed IDR 10 billion per business line, per location, excluding land and buildings. These are two different numbers, and confusing them is the most common and costly mistake foreign founders make.
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Civil LawHutang tanpa perjanjian apa bisa ditagih?
Teman atau saudara meminjam uang dengan jumlah yang besar tanpa adanya perjanjian tertulis, dan tidak kunjung dikembalikan? Ini tipsnya...
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FamilyApa gunanya Perjanjian Pra Nikah?
Masih banyak masyarakat Indonesia yang beranggapan bahwa membuat perjanjian Pra Nikah sebelum perkawinan sebagai hal tabu dan tidak penting.
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StartupKenapa founders agreement itu penting?
Kenapa perlu mulai bisnis dengan perjanjian? Apakah rasa percaya saja cukup untuk menjadi dasar hubungan kalian dengan rekan bisnis?
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BusinessMemulai Bisnis Waralaba Dengan Aman
14 pertanyaaan penting untuk anda yang sedang atau akan memulai bisnis franchise. Pertanyaan-pertanyaan ini mencerminkan aspek hukum waralaba.
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InvestmentKenapa Special Purpose Acquisition Company (SPAC) semakin diminati?
Kenapa SPAC yang regulasinya bahkan belum dikenal dalam hukum Indonesia menjadi alternatif yang cukup diminati oleh para pelaku bisnis dunia?
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