Indonesia Business Legal Guidelines
 December 2021 Edition

The Government of Republic of Indonesia continues to strive to increase the economic growth of Indonesia. The efforts which have been done comprise the simplification of regulations and the licensing matters. Notwithstanding such means, there are still many challenges that might be faced by the relevant stakeholders who are involved in the business process in Indonesia. The hurdles are usually misinterpreted provisions specified under the prevailing laws, the complexity of bureaucracy, and other hindrances during operation in the fields.

To support the efforts made by the  Government of the Republic of Indonesia, and as part of our attempt to be actively involved in creating legal certainty in doing business in Indonesia, we, AHRP, as an institution engaged in legal advisory, have prepared the guidelines emphasizing the laws and regulations that are generally required to be complied in conducting business in Indonesia.

In providing this publication, we also refer to the rules that are applicable after the enactment of Law Number 11 of 2020 on Job Creation whose provisions render substantial changes in the regulation of many sectors in Indonesia. This publication will be updated periodically as the laws and regulations change rapidly from time to time.

We hope that this publication can be useful for any parties who intend to carry out business activities in Indonesia.

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Chapter I

Ease of Doing Business in Indonesia

Overview of Indonesia's business climate and incentives for investors


Chapter III

Business Sectors for Investment in Indonesia

Priority business sectors and conditions for investment


Chapter V

Indonesia's Legal System

Hierarchy, characteristic of regulations and decree, type of government authority


Chapter VII

Incorporation of Limited Liability Company in Indonesia

Requirements, article of association, organs and authorization


Chapter IX

Licensing in General

Business licensing, land, environmental, building construction and utilization


Chapter XI

Manpower Matters

Industrial relation, foreign workers, outsourcing


Chapter XIII

Dispute Settlement

Settlement of legal dispute, government-private investment dispute


Chapter XV

Government Policy to Suppress the Spread of COVID-19 in Indonesia

Restriction and mitigation plans


Chapter II

Indonesia’s Development Plan

Long term, medium term and government work plan in national development


Chapter IV

Standard Indonesian Business Field Classifications

Definition, importance and structure of business field classification


Chapter VI

Foreign Investment in Indonesia

Things which foreign investors should know


Chapter VIII

Merger, Consolidation, and Acquisition in Indonesia

Mechanism and procedures for M&A


Chapter X

 Business Compliance

Language, reporting, legalization, taxation, currency, antitrust, domestic component level


Chapter XII

Intellectual Property Rights

General overview, types, licensing 


Chapter XIV

Anti-Corruption and Good Corporate Governance in
Doing Business

Things to obey in keeping the business clean