Indonesian Laws Relevant To Foreign Investors

Indonesian Law
According to Google, the search engine receives about 27,000 queries each month related to Indonesian law. About half of them come from outside of Indonesia.

Reading Indonesian laws is not required for every foreign investor, but it can definitely be useful. Some of the reasons are:

  • You start detecting when a particular article about Indonesian law is outdated
  • You can ask very specific questions from your agent or lawyer
  • You get the general picture of the legal framework

This article is for you if you want to not just read about the interpretation of the law but also go directly to the original source.

Below I listed 7 most commonly requested Indonesian laws by foreign investors. All of them are in English and latest version of that particular law.

In some cases the name of the law listed here is not the official name of the law. For example property law is actually under agrarian law, but most foreigners search for that law using “property law” keyword. It’s all about making the life of foreign investors as easy as possible.

We will do our best to update this list in case newer versions of those laws will be legislated.

Company law

Company law, or more accurately limited liability company law, is the main document regulating companies in Indonesia. This includes starting, running and closing companies, both public and private, foreign and local.

Investment law

Investment law is the main law regulating domestic and foreign investment activities. This is especially important document for foreign investors and should be studied in depth together with company law.

Labor law

Indonesian manpower law is relevant to anyone hiring employees in Indonesia.

Immigration law

Immigration law is the main document regulating everything concerning foreigners visiting, living and working in Indonesia. A must read for anyone who wants to apply on their own (without using agent) for residence permit.

Property law

Indonesian property is regulated by 1960 Agrarian law that unlike it name says, regulates all land ownership.

Trademark law

Trademark law regulates trademark registration process and principles. Useful to anyone who is planning to register their trademark in Indonesia.

Tax law

Indonesian tax system has several regulations and here you can find two main ones –  the general provisions and income tax. There a plenty of tax books available that also give relevant information about Indonesian tax system. For example here is pocket tax book by PWC.

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