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Foreign artificial intelligence (AI) companies are increasingly entering the Indonesian market by providing AI-powered platforms, software, and digital services directly to users in Indonesia. Unlike traditional businesses, AI service providers can operate their services remotely and serve users in Indonesia without establishing a physical office or incorporating a company in Indonesia. This raises an important […]

Mining area planning for investigation and research assignments in Indonesia is increasingly moving toward a more centralized and top-down model, particularly through the strengthened role of the Director General of Mineral and Coal. This development is reflected not only in the allocation of authority under Indonesia’s mining regulations, but also in the mechanism for investigation

The transfer of foreign workers (TKA) from one company to another within the same business group is relatively common, particularly among multinational companies (MNCs) with multiple entities in Indonesia. Such transfers may involve changes in payroll, position, reporting lines, or the placement of a foreign worker from one group entity to another. From an immigration

The participation of foreign companies in government procurement in Indonesia is, in principle, permitted, but does not generally apply to all types of procurement. Foreign companies may, in principle, participate only in international procurement, subject to the applicable package value thresholds, procurement methods, qualification requirements, and obligations to cooperate with national business entities as stipulated

The death of a foreign employee in Indonesia may raise a practical question for the employer: can the employee’s outstanding employment entitlements be paid to a foreign executor rather than directly to the heirs? In principle, this may be possible, but the employer must first ensure that the executor has valid authority to receive the

For startups founded by foreign nationals that establish a company in Indonesia, appointing the founder as a Director of a PT PMA carries legal implications that should be considered from the outset. From a corporate law perspective, a foreign national may be appointed as a Director of an Indonesian limited liability company, including a PT

Foreign companies considering entering the Indonesian market often ask whether they can conduct business activities in Indonesia without establishing a foreign investment company (PT PMA). The answer depends on the nature of the activities conducted in Indonesia. As a general principle, foreign investment to conduct business in Indonesia must be carried out through a limited

Foreign companies seeking to enter the Indonesian market have several structuring options. The appropriate structure largely depends on what the company intends to do in Indonesia, whether it plans to conduct full commercial operations, establish a representative presence, or carry out activities that may create a taxable presence in Indonesia. Three concepts are particularly important

Foreign companies establishing a Foreign Company Representative Office (Kantor Perwakilan Perusahaan Asing or “KPPA”) in Indonesia may appoint a foreign national as the head or representative of such office. However, the appointment of a foreign national as the head of a KPPA is not solely related to obtaining a residence permit. KPPA licensing, immigration requirements,

Foreign companies conducting business activities in Indonesia should consider whether their activities create a Permanent Establishment (“PE”), known in Indonesia as a Bentuk Usaha Tetap (“BUT”). A BUT is not an Indonesian legal entity such as a limited liability company (Perseroan Terbatas or “PT”), but rather a form of business presence of a foreign tax