Indonesia: Corporate and Company Law

Indonesia's approach to artificial intelligence regulation remains fragmented, relying primarily on non-binding ethical guidelines rather than comprehensive legislation.

The Ministry of Manpower, Indonesia has introduced a new framework for outsourcing through the Regulation of the Minister of Manpower Number 7 of 2026 on Outsourcing Work, which came into force on 30 April 2026 (“Regulation 7/2026”).

Cross-border M&A transactions often face execution challenges when global assumptions meet local regulatory realities, particularly in jurisdictions where approval processes involve iterative engagement rather than linear reviews. Using Indonesia's financial sector as a case study, this analysis examines how regulatory dynamics—especially the fit and proper assessment process—can extend transaction timelines beyond initial expectations and what strategies can improve execution certainty.

The Minister of Investment and Downstream Industry/ Head of Investment Coordinating Board ("BKPM") recently issued BKPM Regulation No. 5 of 2025 on Guidelines and Procedures for Implementing Risk-Based Business Licensing and Investment Facilities through the Electronically Integrated Business Licensing System (Online Single Submission or "OSS") ("BKPM Reg. 5/2025").

Second, the Deed of Establishment contains the articles of association of the joint venture as well as a list of the members of the Board of Directors ("BOD") and the Board of Commissioners ("BOC") for a PT, or a list of the partners for a partnership.

On October 1, 2025, Indonesia's Ministry of Investment and Downstream Industry/BKPM issued Regulation No. 5 of 2025 on Guidance and Implementation of Risk-Based Business Licensing...

On March 14, 2025, Indonesia's Director General of Customs and Excise issued Regulation No. PER-5/BC/2025 ("DGCE Reg. 5/2025"), amending Regulation No. P-22/BC/2009 ("DGCE Reg. 22/2009")...

With a history spanning more than 30 years, Japanese investment in Indonesia is a strong example of successful foreign investment.

In February 2025, Indonesia's National Agency of Drug and Food Control (BPOM) took decisive action by recalling 91 illegal and hazardous cosmetics and skincare products that lacked proper Distribution Permits. These products were found to contain hazardous substances, including mercury, which with long-term exposure can pose serious health risks, such as an increased risk of cancer.