Change of Paradigm in Indonesia’s Foreign Investment Policy

Indonesia Investment Coordinating Board or Badan Koordinasi Penanaman Modal (BKPM) is in the process of revising the Investment Negative List or Daftar Negative Investasi (DNI). The decision to revise the list is mainly to reduce Indonesia’s dependency toward import goods. Indonesia is known to have an investment policy that heavily protects domestic entrepreneur and smallContinue Reading

Foreign Investment and Restriction of Foreign Ownership in Mining Sector

Foreign investors must have an Indonesian vehicle to conduct mining business activities in the form of an Indonesian limited liability company established in the framework of foreign investment to Law No. 25 of 2007 on Investment (known as Foreign Investment Company / Perusahaan Penanaman Modal Asing or “PMA”). Although mining sector is generally open toContinue Reading

Foreign Investment in Telecommunication Tower Business

Pursuant to Regulation of Ministry of Information and Communication, construction of telecommunication tower may be performed by (i) telecommunication operator; (ii) tower provider or; (iii) tower contractor/developer. Unless it is performed by a telecommunication operator, which business is allowed to have 65% of foreign ownership, construction service provider building tower for special purpose is closedContinue Reading


The new Investment Negative List is issued to create legal certainty as well as one of the pursuits to attract investors in order to invest in Indonesia. Investment Negative List is the implementation of the transparency in order that investors can easily acknowledge the list of close business fields to foreign investment or open businessContinue Reading


The Ministry of Communication and Informatics of the Republic of Indonesia issued the recent regulation on Telecommunication Equipment And Apparatus Certification by Regulation of the Minister of Communication and Informatics Number 18 of 2014 (“MCI Regulation No. 18/2014”). By the issuance of MCI Regulation No. 18/2014 which is effective on 25 June 2014, the RegulationContinue Reading

Local Content Requirement in Indonesian Oil and Gas Industry

Local content (Tingkat Komponen Dalam Negeri/TDKN) under Indonesian laws means the assessment of local product component being used on goods, services and combination of goods and services. Therefore local content can be categorized as; (i) local content of goods, (ii) local content on services and (iii) local content combination. In relation to oil and gasContinue Reading

Requirements on Vessel Operator in Indonesian Oil and Gas Industry

Vessel Ownership Vessel ownership under Indonesian Law is specified under Procedures for Foreign Ship Decree No 48 in which Article 1 (1) states that foreign vessel is a flagged vessel other than Indonesian flag and is not registered under Indonesian Ships Registration list. The same regulation provides the opportunity for foreign vessel to operate inContinue Reading

Penanaman Modal Asing di bidang e-commerce

Berdasarkan Daftar Negatif Investasi (DNI), e-commerce dideskripsikan sebagai perdagangan eceran melalui pemesanan pos atau internet. Deskripsi lebih jelas dinyatakan di dalam KBLI dengan kode 4791, yang mana perdagangan eceran melalui pemesanan pos atau internet yaitu ketika pembeli memilih barang melalui iklan, katalog, informasi di website, contoh atau sarana iklan lainnya, kemudian memesan barang-barang tersebut melaluiContinue Reading

Shareholders Liability on Employees’ Compensation upon Termination and Company’s Dissolution

Under Indonesian laws, obligation to pay severance, reward for services, compensation payment, detachment money or any other similar payment with respect to the dismissals of the employees shall be borne by the company and not the shareholders of the company. Pursuant to Law number 13 of 2003 on Manpower, employment relationship is created from theContinue Reading

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