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Indonesia Business Legal Guidelines
2023 Edition

With the aim to push the economic growth of Indonesia, the Government of the Republic of Indonesia has made efforts to simplify regulations and licensing matters. Notwithstanding with the purpose, the path is still mazy and the challenges are there to be solved, among others, the hurdles include misinterpreted provisions specified under the prevailing laws, complex bureaucracy issues, and other hindrances during operation in practice.

To support the intention of the Government of the Republic of Indonesia, and as a part of our objective to be actively involved in ensuring legal certainty in doing business in Indonesia, we have prepared the guidelines to highlight the laws and regulations that are generally required to be complied with in conducting business in Indonesia. 

In providing this publication, we also refer to the rules that apply following the enactment of Government Regulation in lieu of Law Number 2 of 2022 on Job Creation whose provisions render substantial changes in the regulation of many sectors in Indonesia. 

This publication is an update of our previous version of IBLG and will continue to be updated in parallel with the change in laws and regulations from time to time. 

We hope that this publication can be useful for 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


Industrial relation, foreign workers, outsourcing


Chapter XIII

Dispute Settlement

Settlement of legal dispute, government-private investment dispute


Chapter XV

Bankruptcy and Restructuring

Overview on the Bankruptcy and Restructuring Process in Indonesia

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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


Chapter XVI

Competition Law in Indonesia

Prohibitions related to Monopolistic Practices and Unfair Business Competition

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