Frequently Asked Questions

Find answers to common legal questions about Indonesian law, business regulations, and our services.

Ask a Lawyer

Browse by Category

Common Legal Questions

What are the requirements to start a business in Indonesia?

To establish a business in Indonesia, you typically need:

  • Approval of your company name from the Ministry of Law and Human Rights
  • Articles of Association (Akta Pendirian)
  • Tax Identification Number (NPWP)
  • Business Identification Number (NIB)
  • Required licenses based on your business activity (OSS System)

Foreign investors may need additional requirements like BKPM approval and minimum investment amounts.

What is the difference between PT and CV in Indonesia?

PT (Perseroan Terbatas) is a limited liability company with shareholders, while CV (Commanditaire Vennootschap) is a partnership with active and passive partners. Key differences:

  • PT offers limited liability protection, while CV partners have unlimited liability
  • PT requires at least 2 shareholders, CV requires at least 2 partners
  • PT is more suitable for larger businesses seeking investment
How long does a civil lawsuit take in Indonesia?

The duration varies depending on case complexity, but typically:

  • District Court: 6 months to 2 years
  • High Court (appeal): 6-12 months
  • Supreme Court (cassation): 1-3 years

Our firm uses strategic case management to expedite proceedings where possible.

Can foreigners own property in Indonesia?

Foreigners cannot own freehold land (Hak Milik), but they can:

  • Purchase property under Right of Use (Hak Pakai) for up to 80 years
  • Lease property for 25-70 years (extendable)
  • Own apartments in certain developments
  • Establish a PT PMA (foreign investment company) to hold property
What are the termination rules under Indonesian labor law?

Termination must follow strict procedures under Law No. 13/2003:

  • Valid reasons required (misconduct, poor performance, economic reasons)
  • Mandatory severance pay (1-9 months salary based on tenure)
  • Prior written warnings required for performance issues
  • Bipartite negotiations or Industrial Relations Court involvement may be needed

Wrongful termination can result in reinstatement or additional compensation.

What visa do I need to work in Indonesia?

Foreign workers typically need:

  1. VITAS (Limited Stay Visa) - Obtained overseas before arrival
  2. KITAS (Limited Stay Permit) - Converted from VITAS after arrival
  3. Work Permit (IMTA) - Employer-sponsored

Requirements include:

  • Sponsorship by an Indonesian company
  • Proof of qualifications
  • Clean criminal record
  • Medical check-up
How long does trademark registration take in Indonesia?

The trademark registration process at DGIP typically takes 12-24 months:

  1. Formality Examination (1-2 months)
  2. Substantive Examination (6-9 months)
  3. Publication Period (3 months for opposition)
  4. Certificate Issuance (1-2 months after approval)

Our firm can expedite monitoring and responses to office actions.

Still Have Questions?

Can't find what you're looking for? Our legal team is ready to help.

Contact Our Lawyers