Month: July 2025

Foreign Nationals and Criminal Liability in Indonesia: Why You Need a Local Legal Counsel Who Speaks Your Language

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With Indonesia’s growing economy and increasingly open investment and labor markets, the number of foreign nationals residing and working in Indonesia continues to rise. However, behind this opportunity lies a real risk—many foreigners find themselves entangled in criminal legal issues, whether due to a lack of knowledge about the Indonesian legal system, administrative mistakes, or falling victim to fraud or criminalization schemes.

Having represented numerous foreign clients, Queen Law Firm understands that the most fundamental need for a foreign national facing legal troubles is to have a local legal counsel who not only understands the Indonesian legal system in depth but also communicates fluently in the client’s native language, including Mandarin.

A. Common Criminal Offenses Faced by Foreign Nationals

Based on our observation and experience, the following types of criminal cases are the most common among foreign nationals, whether as suspects or victims:

1. Immigration Violations
The most frequent issues include:

  • Overstaying visa validity

  • Misusing visas (e.g., using a tourist visa for work or business)

  • Entering or exiting Indonesia without proper documentation

These are governed by Law No. 6 of 2011 on Immigration and may result in administrative sanctions (fines, deportation) or criminal penalties (imprisonment).

2. Drug Offenses
Indonesia enforces a strict zero-tolerance policy against narcotics. Many foreign nationals are prosecuted due to:

  • Carrying luggage unknowingly containing narcotics

  • Serving as couriers without knowledge of the content

  • Consuming drugs legal in their home countries but classified as narcotics in Indonesia

Law No. 35 of 2009 on Narcotics prescribes severe penalties, including the death penalty for serious offenses such as trafficking or smuggling.

3. Fraud and Illegal Investment Schemes
Foreign nationals may fall victim to fraud or, in some cases, are countersued by their local partners for:

  • Embezzlement

  • Fraud in investment cooperation

  • Violating business license requirements or operating in restricted sectors

Such charges are usually prosecuted under Article 378 (Fraud) or Article 372 (Embezzlement) of the Indonesian Penal Code.

4. Violence and Private Disputes
Foreign nationals may also be involved in:

  • Domestic violence (KDRT)

  • Fights or altercations

  • Minor assaults

  • Sexual harassment allegations often stemming from cultural misunderstandings

Without adequate understanding of local customs and legal procedures, these cases can become highly complicated and risky to the individual’s reputation and liberty.

5. Violations of Public Morality or Ethics
Indonesian law, including the Penal Code and regional regulations, still recognizes offenses such as:

  • Adultery

  • Indecent acts

  • Violations of public morality

Actions deemed acceptable in the foreigner’s home country may be considered criminal under Indonesian law.

B. Why Foreign Nationals Are Vulnerable to Criminal Prosecution

1. Lack of Legal Awareness
Many foreign nationals arrive in Indonesia without receiving proper legal orientation. The difference between legal systems often leads to serious misunderstandings.

2. Language and Cultural Barriers
Legal proceedings are conducted entirely in Bahasa Indonesia. Without a lawyer or interpreter fluent in the client’s language, the risk of misinterpretation and inadequate legal defense increases.

3. Procedural Missteps During Police Examination
Foreigners often undergo police questioning without legal assistance, despite having the right to be accompanied. This can lead to unintended confessions or signing documents without understanding their implications.

4. Complex and Evolving Administrative Regulations
Immigration, business licensing, and tax regulations frequently change. Administrative non-compliance may escalate into criminal matters if not handled properly.

C. Why You Need a Local (and Mandarin-Speaking) Legal Counsel

Dealing with the Indonesian criminal justice system requires the right legal strategy, smooth communication with law enforcement, and maximum protection of your legal rights. This is why it’s crucial to appoint competent local legal counsel who speaks your language.

Queen Law Firm offers:

  • Licensed and experienced attorneys in criminal law and foreign national assistance

  • In-house staff and sworn translators fluent in Mandarin, ensuring you fully understand legal proceedings

  • A strategic and proactive legal approach

  • Broad connections with legal institutions and government agencies, facilitating communications with Prosecutors, Police, Immigration, and Correctional Facilities

D. What We Do: Step-by-Step Handling of Your Case

If a foreign client faces criminal charges, Queen Law Firm will:

1. Initial Assessment and Case Review
Conduct a factual and legal evaluation of the case and assess the urgency of legal action.

2. Develop Legal Strategy and Provide Full Representation
This includes attending police examinations, preparing legal defenses, and handling the case through trial.

3. Coordinate with Family and Embassy Representatives
Maintain lawful and effective communication with your country’s embassy or consular office.

4. File Further Legal Remedies if Needed
Including objections (eksepsi), defense briefs (pledoi), appeals (banding), or even judicial review (peninjauan kembali).

E. Conclusion: Protect Yourself with the Right Legal Counsel

Indonesia’s criminal law system has its own particular characteristics and often differs significantly from that of your home country. Facing legal issues without a competent local lawyer is a highly risky decision.

If you or someone you know is a foreign national facing criminal proceedings in Indonesia—or seeking to mitigate legal risks in advance—Queen Law Firm is here to help. Contact us and secure your legal protection in a language you understand.

Foreign Investment in Indonesia: A Practical Guide to Establishing a Foreign Investment Company Made Simple

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Indonesia is undergoing a major transformation in its investment landscape. Various legal reforms and licensing simplifications have opened up new opportunities for foreign investors to inject capital more easily, securely, and strategically. This article presents a practical overview of how to establish a Foreign Investment Company (PMA), based on the latest positive laws in Indonesia, summarized from an exclusive eBook prepared by the Queen Law Firm team.

A. Why Indonesia?

Indonesia is not only a large market—with over 275 million people and a rapidly growing middle class—but also a country strongly oriented toward investment growth. Since the enactment of the Job Creation Law and the launch of the OSS-RBA (Online Single Submission – Risk-Based Approach) system, the government has demonstrated a clear commitment to bureaucratic simplification and legal certainty.

The realization of foreign investment (PMA) in 2024 reached IDR 744 trillion, reflecting strong global investor confidence. Key sectors include technology manufacturing, new and renewable energy, digital logistics, and private healthcare.

B. Legal Structure Every Investor Must Understand

To establish a PMA, investors must understand the following legal framework:

  • Law No. 25 of 2007 on Investment, which guarantees legal certainty and asset protection for foreign investors.

  • The Job Creation Law and its derivatives, which streamline licensing through OSS-RBA and shift from the Negative Investment List to the Positive Investment List (DPI).

  • Sectoral regulations, which must still be considered for certain fields such as energy, health, education, and financial services.

Business Form Options
PMA is generally established in the form of a Limited Liability Company (PT) with foreign capital, requiring a minimum capital of IDR 10 billion and an initial paid-up capital of IDR 2.5 billion. Another option is setting up a Foreign Representative Office (KPPA), which is not permitted to engage in commercial activities but may conduct promotion, research, and supervision.

Location and KBLI Classification
Business location must align with the Spatial Detail Plan (RDTR) and have a KKPR. The business sector must match the correct KBLI (Indonesian Standard Industrial Classification) code to avoid rejection by the OSS system.

C. OSS-RBA System: Convenient but Not to Be Taken Lightly

OSS-RBA is a centralized, risk-based system. Each business sector is classified as low, medium, medium-high, or high risk—determining the type of license required.

Although OSS can be accessed directly by business actors, many foreign investors face challenges such as:

  • Incorrect KBLI input.

  • Data mismatches with the deed of establishment.

  • Additional permits required by sectoral ministries.

In practice, legal professional assistance ensures process accuracy and smooth compliance.

D. Don’t Miss Government Incentives and Facilities

Indonesia offers a range of fiscal and non-fiscal incentives, including:

  • Tax Holiday for up to 20 years.

  • Tax Allowance up to 30% of the investment value.

  • Exemption of import duties and VAT not collected.

  • Facilitated employment of foreign workers and expedited licensing in Special Economic Zones (KEK).

Eligibility requires alignment with national priority sectors and complete, valid documentation.

E. Legal Risks and Obligations That Must Not Be Ignored

Once established, a PMA must:

  • Submit Investment Activity Reports (LKPM) regularly.

  • Comply with foreign manpower regulations.

  • Fulfill environmental and zoning permits.

  • Adhere to tax rules and transfer pricing obligations.

  • Avoid nominee structures, which are prohibited.

Risks such as incorrect KBLI classification, illegal land status, or poorly drafted contracts can lead to license revocation or legal disputes.

F. 7 Key Tips for Foreign Investors

  1. Check the DPI (Investment Priority List) and suitable KBLI code.

  2. Choose a location compliant with RDTR and obtain KKPR.

  3. Plan your capital and shareholding structure early.

  4. Validate all legal documents before OSS submission.

  5. Use a certified notary and sworn translator.

  6. Submit LKPM reports on time and consistently.

  7. Consult incentives early—Tax Holiday, Tax Allowance, or KEK benefits—so you don’t lose out on eligible rights.

G. When Do You Need Professional Help?

Although OSS-RBA is publicly accessible, technical complexities, sectoral variations, and the importance of legal strategy drive many foreign investors to retain a corporate law firm for full support. Proper legal assistance not only ensures compliance but accelerates business setup and strengthens investor positioning.

Queen Law Firm is your trusted legal partner for entering the Indonesian market lawfully, securely, and efficiently. With broad experience across sectors, we help simplify the complex legal process into actionable results.

Contact us for an initial, non-citation consultation. We’ll help you set the right direction before you invest further.