Legal & Financial
Compliance Advisory
Entry is the beginning, not the end. A PT PMA (a foreign-owned Indonesian company) carries continuous, overlapping obligations across four regulators, each with its own deadline and its own penalty for a lapse. We hold that obligation as a single mandate, so the entity stays in good standing and capital stays free to move.
Why Compliance Drifts.
After entry or acquisition, internal systems rarely keep pace with Indonesian regulatory change. Left unmonitored, four things slide quietly out of alignment. Each is recoverable early and costly late. Compliance is the recurring layer that holds them in place.
Governance
Day-to-day decisions still track the board's mandate and the original investment thesis agreed at completion.
Operating choices drift away from that mandate, and no one is accountable for holding the widening gap.
Reporting
Local PSAK (Indonesian Financial Accounting Standards) accounts reconcile cleanly to the parent company's consolidated IFRS (International Financial Reporting Standards) reporting each period.
The two sets of books fall out of sync, eroding the board's and investors' line of sight.
Regulation
Filings to BKPM, OJK, Kemenkeu and Bank Indonesia are complete, accurate and fully up to date.
New obligations land throughout the year and their deadlines quietly pass before anyone has noticed.
Shareholder Rights
Drag-along, tag-along and minority protections written into the SHA are observed exactly as negotiated.
Negotiated rights and dividend policy weaken quietly whenever no one is actively monitoring the agreement.
Compliance Architecture.
One mandate for the full set of post-entry obligations (financial, legal and governance), so nothing lapses in the gaps between separate advisers.
Six domains, one mandateLicensing & LKPM Reporting
Quarterly LKPM (Investment Activity Report) filing to BKPM (Investment Coordinating Board) and live monitoring of the NIB (Business Identification Number) and operational licences. Mandatory for every PMA; lapses carry licence-suspension risk.
Tax Architecture
Corporate income tax, VAT, withholding on dividends and service fees, transfer-pricing documentation and annual SPT, filed with licensed consultants to protect your position.
Statutory & Board Reporting
PSAK-to-IFRS alignment, board packs prepared to investor standard, and statutory registers and minutes kept current, so every meeting rests on verified information.
Shareholder Agreement Monitoring
Independent oversight of drag-, tag-along and minority protections and dividend policy, so the rights negotiated at close are observed, not quietly eroded.
Corporate Secretary & Manpower
Registered address, corporate secretary and statutory records, plus BPJS (Social Security Agency) enrolment, RPTKA (Foreign Worker Utilisation Plan) renewal and Manpower Law compliance, without a full local back office.
ESG & Anti-Corruption Governance
ESG benchmarking to the OJK (Financial Services Authority) Sustainable Finance Roadmap and GRI/TCFD, with FCPA (US Foreign Corrupt Practices Act) and UK Bribery Act programmes, internal audit and whistleblower protocols for international parents.
The Risk of Inaction
Indonesian requirements are not static, and the penalty for non-compliance is rarely a simple fine. It is typically a restriction that can halt operations or trap capital in-country. The exposure is concrete.
Discuss Your Compliance NeedsLicence Suspension
Failure to file LKPM reports for two consecutive quarters triggers an automatic licence review by BKPM.
Tax Penalty Cascades
Late SPT filings and transfer-pricing non-compliance can attract penalties of up to 150% of underpaid tax.
Repatriation Blocks
Dividend repatriation requires clean BKPM status and current tax clearance; non-compliance traps capital in-country.
A Continuous Mandate, Not a One-Off.
We set the entity in order once, then hold it in good standing as obligations evolve. The set-up is finite; the mandate is not.
Diagnostic
A full review of the entity's standing, filings and exposure against live obligations.
Framework Design
Governance, reporting and internal controls designed to investor-grade standard.
Implementation
The framework put into operation: calendars, filings, board structures and sign-off protocols.
Ongoing Retainer
Once the framework is live, the mandate runs as a perpetual cycle across BKPM, OJK, Kemenkeu and Bank Indonesia.
Monitor
Regulatory change and upcoming deadlines, across all four authorities.
Report
LKPM, tax and board reporting filed on schedule; registers kept current.
Renew
Licences, RPTKA and the compliance calendar refreshed as rules evolve.
Reviewed each quarter; the cycle renews
Expert
Inquiry
Addressing the specific nuances of Indonesian regulatory compliance and statutory obligations.
Quarterly LKPM investment reporting to BKPM, annual corporate tax (SPT) filing, transfer-pricing documentation for related-party transactions, BPJS enrolment, and statutory record maintenance. The set grows with headcount and sector.
Failure to file for two consecutive quarters triggers an automatic licence review by BKPM, which can escalate to suspension. Dividend repatriation also requires clean BKPM status, so lapses can trap capital in-country.
Both, though we recommend a retainer. Obligations are continuous and overlapping; an ongoing mandate keeps the entity in good standing without the cost of a full in-house administrative function.
Yes. We begin with a diagnostic of current standing and filings, remediate any gaps, then install an ongoing framework. Many mandates begin precisely because an existing PMA has drifted out of compliance.
We implement FCPA and UK Bribery Act-aligned programmes, internal audit frameworks and whistleblower protocols, with documentation suitable for an international parent's own governance and reporting obligations.
Address
Your Exposure.
Regulatory uncertainty is manageable when identified early. Bring your structure and we will assess the risk clearly.