The Evolution and Practical Innovation of Indonesian Limited Liability Company Law: Reflections and Prospects from a Global Perspective

Posted by Dr. Guan Yue on

(This article was published on February 11, 2025, in World Wide Journal of Multidisciplinary Research and Development, Vol. 11, No. 02.)

The Evolution and Practical Innovation of Indonesian Limited Liability Company Law:
Reflections and Prospects from a Global Perspective

 Guan Yue, Eni Oktaviani

Abstract

This paper examines the evolution and practical innovation of Indonesian Limited Liability Company Law, highlighting its historical development, current challenges, and prospects in a globalized and digital economy. Tracing the origins of limited liability company laws from Dutch colonial influence to modern reforms, the study explores key milestones, including the enactment of pivotal legislation and digital transformation initiatives such as the Online Single Submission system. The paper also analyzes the integration of Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) compliance into corporate practices, reflecting global sustainability trends. Despite notable advancements, challenges persist in legal implementation, corporate governance, and support for small and medium enterprises (SMEs). The findings underscore the necessity for ongoing reforms to enhance efficiency, transparency, and alignment with international standards while addressing Indonesia’s unique socio-economic context. This research provides theoretical insights and policy recommendations to strengthen Indonesia’s limited liability company framework, fostering sustainable economic growth and global competitiveness.

Keywords: Indonesian Limited Liability Company Law, Digital Transformation in Legal Systems, Globalization and Corporate Law, Legal Innovation.

 

  1. Introduction

Indonesia, as the largest economy in Southeast Asia, plays an increasingly crucial role in promoting investment and economic growth through its Limited Liability Company Law. As the legal foundation for economic development, the Limited Liability Company Law not only attracts foreign investment and protects investor rights but also drives the growth of local businesses and optimizes market conditions. However, with the rapid development of globalization and the digital economy, traditional legal frameworks are increasingly exposed to limitations and lagging behind. To maintain the distinctive features of the local legal system while enhancing its flexibility and global competitiveness has become an important issue in the development of Indonesian Limited Liability Company Law.

In recent years, Indonesia has made significant strides in attracting foreign investment and supporting local businesses. However, challenges such as low efficiency in law enforcement and regional development imbalances continue to constrain the full potential of companies. For instance, while the introduction of online registration systems has improved the convenience of business registration, their reach and effectiveness remain limited in remote areas. Furthermore, international investors are raising higher demands for the transparency and consistency of Indonesia’s legal system, further highlighting the urgency of legal reforms.

This article aims to systematically review the historical evolution and practical development of Indonesian Limited Liability Company Law, analyze the actual effectiveness and limitations of current legal implementation, and explore the direction and path for future reforms of Indonesian Limited Liability Company Law. It aims to provide theoretical support and policy recommendations for the improvement of its legal system and economic development.

  1. Methods

This study employed a multidisciplinary approach to analyze the evolution and innovations in Indonesian Limited Liability Company Law. The research methods included:

2.1          Literature Review Method

A comprehensive review of primary and secondary sources was conducted. Primary sources included Indonesian legal texts, historical legislation such as the Dutch Commercial Code, and contemporary laws like the “Law Number 40 of 2007 concerning Limited Liability Companies.” Secondary sources included academic journals, legal commentaries, and government reports.

2.2          Case Studies Method

Key case studies were analyzed to understand the practical application of limited liability company laws in areas such as digital transformation, corporate governance, and CSR initiatives. Cases from major corporations like PT Pertamina and SMEs were included.

2.3          Data Analysis Method

Quantitative data from government databases, such as the Indonesia Investment Coordinating Board (BKPM), and reports on the Online Single Submission (OSS) system were analyzed to assess the efficiency of reforms.

The combination of these methods ensured a holistic understanding of the topic, integrating historical perspectives, practical applications, and policy implications.

  1. Results & Discussion

3.1 History and Evolution of Indonesian Limited Liability Company Law

3.1.1 Early Beginnings: Dutch Colonial Influence

The establishment of Indonesian Limited Liability Company Law can be traced back to the Dutch colonial period. During this time, the Dutch East India Company (Dutch: Vereenigde Oostindische Compagnie / VOC) played a central role in administrative and trade policies. The Dutch East India Company (VOC), founded in 1602, was one of the earliest forms of corporate entities as regulated by Dutch law. During the Dutch colonial period, VOC, as a primitive form of company organization, monopolized trade activities in Indonesia. This long-standing monopoly indicates that VOC already possessed the basic elements of modern business and corporate governance. The legal framework governing such entities was primarily based on the Dutch Commercial Code (Dutch: Het Koopmansrecht) applicable to VOC activities.

When Indonesia became a Dutch colony, Dutch commercial law, including company law, continued to influence the region. The Dutch Civil Code (Dutch: Burgerlijk Wetboek), enacted in 1838, established legal structures such as partnerships and companies, which were adapted to meet the needs of colonial trade and governance.

In 1848, the Indonesian Commercial Code (Indonesian: Kitab Undang-undang Hukum Dagang / KUHD, Dutch: Wetboek van Koophandel), a special law separate from the Dutch Civil Code, was compiled and implemented in the colonies. The Indonesian Commercial Code specifically regulated business and trade matters, including company law, negotiable instruments law, maritime law, etc. Initially, the Indonesian Commercial Code applied only to Europeans. Indigenous populations and other foreigners each adhered to their own customary laws. Nonetheless, over time, the application of the Indonesian Commercial Code expanded to the Chinese population, while other foreigners, such as Arabs and Indians, continued using their traditional customary laws.

However, specifically regarding laws related to business, difficulties arise when the customary laws of each group are applied, due to the following reasons:

  1. The customary laws of each group are highly diverse;
  2. The customary laws of each group are very unclear; and
  3. In business life, interactions often occur without regard to the group of the population, leading to inter-group laws that are naturally perceived as complicated for the business [1].

To address these issues, the authorities designed a legal system known as the “subordination principle”, which allowed one party to choose to adhere to another party’s legal system, thus simplifying legal conflicts between different ethnic groups. The Dutch colonial government applied the Indonesian Commercial Code based on the principle of concordance [2]. Based on this principle, individuals were allowed to freely establish a legal entity known as the “Public Limited Company (Dutch: Naamloze Vennootschap)”, which is the precursor to modern limited liability companies. This marked the official birth of limited liability companies in Indonesia.

During this period, the characteristics of the legal framework governing limited liability companies included high thresholds for business establishment, complex approval processes, and strict corporate governance structures. The legal legacy from the colonial era provided a framework for subsequent limited liability company laws, but also introduced legal complexities and inadequacies in meeting modern economic needs. The legal system from this period not only affected business at the enterprise level but also contributed to long-term centralization issues in the socio-economic structure, making it difficult for local businesses to access resources.

3.1.2 Post-Independence: The Birth of Indonesian Limited Liability Company Law

After Indonesia declared its independence in 1945, the new government faced the urgent task of establishing a sovereign economic system. The existing Dutch colonial laws, including the Commercial Code and Civil Code, continued to apply, but their content could no longer meet the social and economic development needs of post-independence Indonesia. To address this, the government adopted a dual strategy: maintaining certain aspects of the colonial legal structure to avoid abrupt legal disruptions, while gradually reforming to establish a legal framework that would better suit local needs and international conditions.

A significant milestone in the development of the Indonesian Limited Liability Company Law came with the enactment of “Law Number 1 of 1967 concerning Foreign Investment”. This law marked a departure from Dutch colonial practices, with a focus on self-reliance and prioritizing control over economic resources after Indonesia’s independence. The core content and significance of this law include:

  1. Regulation of Foreign Investment

The law allowed foreign capital to establish businesses in Indonesia, but under specific conditions, including government approval and restrictions from investing in key sectors such as energy, infrastructure, and agriculture.

  1. Priority of National Interest

The law emphasized economic independence and resource control, aiming to reduce dependency on foreign economic powers and protect local enterprises and resources.

  1. Attraction of Foreign Technology and Capital

While prioritizing national interests, the law still provided a legal framework for attracting foreign capital, aimed at acquiring necessary technology and funds to boost local economic development.

In the early post-independence period, the focus of the Limited Liability Company Law was to encourage state involvement in the economy. “Law Number 1 of 1967 concerning Foreign Investment” allowed foreign investors to enter Indonesia under specific conditions, but it also emphasized national interests, particularly in sectors deemed crucial to the nation. Key reform points included:

  1. Lowering Capital Requirements

Recognizing that many small and medium-sized enterprises (SMEs) struggled to meet the previously high capital requirements, the government lowered the thresholds, encouraging more local enterprises to register as limited liability companies and expand local economic participation.

  1. Clear Definition of Company Types

This marked the first systematic definition of different company forms, particularly limited liability companies (Indonesian: Perseroan Terbatas / PT). The core characteristic of limited liability companies is that shareholders’ liability is limited to their investment, making it easier to attract investors and distribute risk.

  1. Regulation of Shareholder and Board Rights and Obligations

Shareholders hold decision-making power, while daily business management is handled by the board of directors. This division improved corporate governance efficiency. The rights and obligations of the board, including financial reporting, legal responsibility, and transparency, were clearly defined.

The enactment of “Law Number 1 of 1967 concerning Foreign Investment” achieved significant results:

  1. Promoting Local Enterprise Development

The new law lowered barriers for SMEs to engage in the economy, enabling more businesses to formalize and promoting rapid growth in Indonesian enterprises.

  1. Modern Legal Framework

The introduction of limited liability company law laid the groundwork for modern corporate governance, providing institutional support for local businesses competing both domestically and internationally.

Despite the successes, the early legal reforms faced challenges:

  1. Inefficient Implementation

The implementation of the law relied heavily on manual processes, lacking electronic support and technical infrastructure. The lengthy processes for company registration, approvals, and regulatory oversight impacted overall efficiency.

  1. Limited Foreign Investment Appeal

While the law permitted foreign investment, many sectors were still restricted due to protectionist policies, which dampened interest from global investors.

  1. Incomplete Regulatory Mechanism

The government lacked effective oversight and enforcement capacity, leading to instances where some businesses did not fully comply with the new regulations, or even exploited loopholes. Additionally, initial reforms lacked technical support, making enforcement dependent largely on manual operations, thus reducing efficiency.

After Indonesia’s independence, the initial establishment of the Limited Liability Company Law reflected the urgent need for economic development and legal modernization. “Law Number 1 of 1967 concerning Foreign Investment” attracted foreign capital, fostered local enterprise development, and established modern corporate governance systems, laying a foundation for Indonesia’s long-term economic growth. However, the technological and institutional shortcomings of the early reforms provided lessons for future legal enhancements. During this period, the limited liability company law embodied the nation’s drive for economic self-reliance and also paved the way for more comprehensive legal modernization in subsequent years.

3.1.3 Reform Era: Liberalization and Modernization (1990s-2000s)

Towards the close of the 20th century, Indonesia faced significant challenges in political and economic transformation. Following the fall of the Suharto regime, the country began a series of reforms aimed at achieving economic liberalization, attracting foreign investment, and improving corporate governance structures. These reforms primarily focused on enhancing transparency, strengthening accountability, and optimizing business management frameworks to align with global trends and international standards. Notably, in 1995, the government introduced a major reform in the area of limited liability companies with the enactment of “Law Number 1 of 1995 concerning Limited Liability Companies”.

In 1995, Indonesia issued the new Limited Liability Company Law, known as “Law Number 1 of 1995 concerning Limited Liability Companies”. This law aimed to modernize corporate structures, especially concerning the operation of limited liability companies. Its core principle was the separation of ownership and management, intended to enhance board independence and transparency. The law required clear distinctions between the rights and responsibilities of the board and shareholders, enabling the board to make independent decisions with reduced direct shareholder intervention. The new law introduced the concept of state-owned enterprises (Indonesian: Badan Usaha Milik Negara / BUMN) and regional enterprises (Indonesian: Badan Usaha Milik Daerah / BUMD), where the government holds partial or full ownership. This aimed to ensure government involvement while also encouraging enterprises to operate in a more transparent and standardized manner. The Indonesian Limited Liability Company Law began aligning more closely with international standards, including requirements for corporate governance, shareholder meetings, and defined responsibilities of boards.

To further support and consolidate these corporate governance reforms, the Indonesian government established the Financial Services Authority (Indonesian: Otoritas Jasa Keuangan / OJK) in 2011. Article 6 of “Law Number 21 of 2011 concerning Financial Services Authority” states the duties of OJK, including:

  1. financial services activities in the banking sector;
  2. financial services activities in the capital market sector;
  3. financial services activities in the insurance, pension funds, financing institutions, and other financial services institutions sectors.

Despite these reforms achieving some progress, challenges remain in their practical implementation:

  1. Lack of Transparency and Efficiency

Although an online registration system has been introduced, many businesses still need to provide supplementary paper materials, making the registration process lengthy and complex. The reliance on paper documents adds time and administrative burdens, slowing down business startups.

  1. Policy Implementation Gaps

While laws require transparency and accountability, implementation remains lagging in certain areas. In particular, at the local government level, regulatory enforcement is often weak, leading to ineffective corporate governance practices.

  1. Information Asymmetry

Some businesses, especially SMEs, lack clear communication and understanding of the new laws, hindering their ability to successfully adapt to the regulatory environment.

During the latter part of the 20th century, Indonesia’s introduction of “Law Number 1 of 1995 concerning Limited Liability Companies”, along with the establishment of Financial Services Authority in 2011, aimed to improve corporate governance, enhance transparency, and attract foreign investment. However, while reforms have made some headway, challenges like lack of transparency, inefficient execution, and information asymmetry persist in their practical application.

3.1.4 Latest Developments and Trends

Following the foundation of “Law Number 1 of 1995 concerning Limited Liability Companies”, Indonesia introduced a new “Law Number 40 of 2007 concerning Limited Liability Companies” in 2007. This law aimed to further improve corporate governance structures, enhance transparency, and specifically address the rights of minority shareholders, the board of directors, and the rights of various stakeholders.

  1. Strengthening Corporate Governance

The new law clearly defined the structure of the board of directors, the operation of shareholders’ meetings, and the protection of minority shareholder rights. It built upon the goals of “Law Number 1 of 1995 concerning Limited Liability Companies”, making specific refinements in certain provisions.

  1. Protection of Minority Shareholders

The law emphasized the protection of minority shareholders, addressing deficiencies found in the 1995 legislation. This provision reduces excessive control by majority shareholders, promoting a more balanced power distribution among shareholders.

  1. Integration of Corporate Social Responsibility (CSR)

The 2007 law introduced the concept of Corporate Social Responsibility (CSR) into the Limited Liability Company framework for the first time. This reflects the global business trend towards sustainability, particularly in resource-intensive industries in Indonesia, such as mining, forestry, and energy sectors.

Global sustainability principles have led to the incorporation of CSR requirements into Indonesian Limited Liability Company Law.

  1. Mandatory CSR Requirements in Business Operations

The 2007 law explicitly mandates that companies in specific industries, such as resource extraction and energy, must integrate sustainable development and social responsibility practices. Companies are required to take greater responsibility in fields like environmental protection, community engagement, and social impact.

  1. Balancing Economic, Environmental, and Social Aspects

With Indonesia’s rapid industrialization, urbanization, and globalization, challenges in environmental and social responsibility are prominent, especially in resource-intensive sectors. The 2007 law reflects this shift by requiring companies to not only seek economic benefits but also contribute to environmental and social responsibility.

  1. Aligning with International Standards

The introduction of CSR provisions aligns Indonesian Limited Liability Company Law with international markets and global corporate governance standards, boosting investor confidence and enhancing the competitiveness of companies in international markets.

The development of corporate law in Indonesia is driven not only by globalization trends but also by domestic economic, social, and political factors.

  1. Economic Perspective

Indonesia has undergone economic structural transformation over the past few decades. Rapid industrialization and urbanization have presented new demands on corporate law. Economic changes have led to the diversification of business forms, from traditional family-owned enterprises to modern large-scale corporations, requiring more refined governance structures. Additionally, the expansion of the middle class has heightened societal demands for corporate transparency and responsibility, leading to the introduction of corporate governance and CSR provisions.

  1. Social Perspective

As the middle class emerges, there is a significant increase in societal demand for corporate responsibility and transparency. This has led to stricter regulations in limited liability company law regarding shareholders’ rights, board structure, and corporate social responsibility. Resource-intensive industries, such as forestry, mining, and energy, have significant environmental impacts. Public expectations for companies to perform well in social responsibility and environmental protection have driven the introduction of CSR provisions.

  1. Political Perspective

The Indonesian government, through anti-corruption and legal reforms, has created a more transparent and regulated corporate governance environment. Political stability and anti-corruption measures have strengthened the enforcement of corporate law. Additionally, government-driven policies and anti-corruption initiatives provide a more favorable environment for the practical implementation of limited liability company law, making companies more inclined to adhere to new corporate governance structures and CSR requirements.

The enactment of “Law Number 40 of 2007 concerning Limited Liability Companies” reflects Indonesia’s evolving demands in its economic, social, and political landscape. This law not only strengthens corporate governance structures and protects minority shareholders but also integrates relevant CSR provisions, ensuring that companies contribute to environmental and social responsibility while pursuing economic growth. The evolution of corporate law in Indonesia is shaped by globalization, domestic economic structural transformation, rising social responsibility demands, and government anti-corruption policies, reflecting a profound transformation from colonial, to independence, to modernization.

3.2 Innovations and Practices in the Current Indonesian Limited Liability Company Law

In recent years, with the acceleration of global economic integration, governments around the world have increasingly prioritized adjusting laws and policies to optimize the business environment, drive economic development, and enhance international competitiveness. As a key economic entity in Southeast Asia, Indonesia has actively explored innovations and practices in its Limited Liability Company Law. These reforms not only focus on enhancing corporate operational efficiency while also aim to create a fairer and more transparent market environment by introducing digital tools, optimizing legal support, and strengthening regulations. These measures provide robust support for businesses, particularly small and medium-sized enterprises (SMEs) and foreign-invested enterprises.

3.2.1 Promoting Digital Transformation

Efficiency has become an important standard for evaluating whether a country’s judicial system is scientific and civilized, in addition to justice, in contemporary society [3]. Over the past few years, the Indonesian government has optimized company registration and operational procedures through digital reforms to enhance efficiency and transparency. The primary objectives of information technology and electronic transaction development, including e-commerce, are: to enhance the nation’s intellectual life as a component of the global information society; to develop national trade and economy in order to improve public welfare; to increase the effectiveness and efficiency of public services; to provide the widest opportunities for everyone to advance their thoughts and skills in the optimal and responsible use of information technology; to ensure security, justice, and legal certainty for users and providers of information technology [4].

  1. Online Company Registration

The Online Single Submission (OSS) system, developed by the Ministry of Economic Affairs and the Indonesia Investment Coordinating Board (Indonesian: Badan Koordinasi Penanaman Modal / BKPM), was launched in 2018 to provide one-stop registration services for businesses. The legal basis for this system is “Government Regulation Number 24 of 2018 concerning Integrated Business Licensing Services Electronically”, which defines the structure and functions of the OSS system, including registration, license approval, and post-approval supervision.

Before the execution of the OSS system, the average time to register a new company in Indonesia was 30 days. After the OSS system was introduced, the average time to register a new company was reduced to 7 days or even less. This demonstrates that the OSS system has significantly lowered the time cost for businesses to gain entry into the market, enhancing the efficiency of the country’s economic operations.

According to a report from the BKPM, as of the end of 2023, the Ministry of Investment / BKPM had issued 7,146,105 Business Identification Numbers (Indonesian: Nomor Induk Berusaha / NIB) through the OSS system. The composition of issued NIBs includes 6,887,479 for micro-enterprises, followed by 187,402 for small businesses, 23,350 for medium enterprises, and 47,874 for large businesses. It is significant to highlight that over 2 million NIBs were issued since the second anniversary of the risk-based OSS system in August 2023, compared to 2,461,775 NIBs issued throughout all of 2022 [5]. This means that in the past five months, the number of Business Identification Numbers issued has nearly equaled the total number issued throughout 2022. This significant increase highlights the growing awareness among business actors to formalize their operations, reflecting a boost in trust towards the government. With an internet connection, business actors can now easily process their NIBs from anywhere, eliminating the need to visit the One-Stop Integrated Investment and Licensing Service Office (Indonesian: Dinas Penanaman Modal dan Perizinan Terpadu Satu Pintu / DPMPTSP) or interact with multiple officers at different desks.

Of course, online company registration still has many shortcomings. Some small and medium-sized enterprises (SMEs) are unfamiliar with digital tools, resulting in limited system utilization. To help these businesses adapt, the government launched the Digital Technology Adaptation Program, which offers online training courses, free technical support, and community consultation centers to ensure more businesses can effectively use the OSS platform.

Additionally, earlier versions of the OSS platform faced risks such as data breaches and cyberattacks. In 2022, the “Law Number 27 of 2022 concerning Personal Data Protection” was implemented, requiring all government digital platforms to conduct regular security assessments and introduce multi-layer encryption technology to protect user data.

  1. Electronic Shareholders’ Meetings

During the COVID-19 pandemic in 2020, the Indonesian Financial Services Authority (Indonesian: Otoritas Jasa Keuangan / OJK) issued “Regulation of the Financial Services Authority Number 15/POJK.04/2020 of 2020 concerning the Planning and Implementation of General Meetings of Shareholders of Public Companies”. This regulation, for the first occasion, explicitly affirmed the legality of holding shareholders’ meetings via online platforms. It established standards for electronic meeting notifications, voting recordkeeping, and meeting outcomes archiving, ensuring the legal validity and operational integrity of online meetings. Through its participation in the ASEAN electronic governance framework, Indonesia has worked in tandem with other regional countries to advance the digitalization of corporate governance standards, enhancing its global competitiveness.

The implementation of online meetings has significantly facilitated the decision-making processes of multinational corporations and regional enterprises, especially for shareholders across multiple time zones. In Indonesia, numerous companies have convened shareholders’ meetings through the Electronic General Meeting of Shareholders (Indonesian: Elektronik Rapat Umum Pemegang Saham / E-RUPS) system. On June 28, 2021, PT KSEI launched an e-Voting module on the eASY.KSEI platform, incorporating webinar live streaming features to support electronic attendance and proxy granting in general meetings of shareholders [6]. Companies such as Bank Syariah Indonesia, Bank Panin Dubai Syariah, and Bank BJB have published guidelines on their official websites for investor participation in E-RUPS. These cases demonstrate Indonesian companies’ proactive adoption of the E-RUPS system to enhance the efficiency and convenience of shareholders’ meetings.

However, sensitive data transmitted during online meetings, such as voting records and financial reports, faces the risk of unauthorized access. To address this, the government amended “Law Number 11 of 2008 concerning Electronic Information and Transactions”, introducing stricter data protection measures, including data encryption and access control mechanisms.

Enterprises in remote areas, however, face challenges in participating in online meetings due to insufficient network coverage. The government has formulated various strategies to address these issues, such as the “6 Sustainable Strategies for Digital Infrastructure Development in Indonesia” published by the Parliamentary Analysis Center of the Indonesian Parliament’s Expert Body, the “The Digital Development Horizon of Indonesia 2025-2030” published by the Ministry of Communication and Information, and the “White Paper on the National Strategy for Indonesia’s Digital Economy 2030” by the Faculty of Economics at Jakarta State University. These strategies aim to accelerate nationwide digital infrastructure development, foster digital talent, enhance infrastructure management efficiency, bolster cybersecurity, and promote digital economic growth. Furthermore, they emphasize strengthening coordination and collaboration across sectors and stakeholders to bridge the technological divide.

3.2.2 CSR and ESG Compliance

CSR (Corporate Social Responsibility) refers to the concept where businesses, while pursuing profits, voluntarily assume responsibilities for society and the environment. CSR emphasizes a business practice centered on ethics and sustainable development, requiring companies to focus not only on economic benefits but also on responsibilities toward employees, communities, the environment, and other stakeholders.

ESG (Environment, Social, and Governance) represents the three non-financial factors that businesses prioritize in their operations. These aspects are used to assess a company’s environmental and social responsibility, and they are also essential metrics for investors evaluating a company’s long-term value and risk management capabilities.

The Indonesian Limited Liability Company Law has increasingly emphasized CSR and ESG indicators in recent years. Article 74 of “Law Number 40 of 2007 concerning Limited Liability Companies” stipulates that companies engaged in natural resource sectors or those related to natural resources are mandated to fulfill CSR obligations. CSR must be accounted for as a corporate expense and implemented correctly and fairly. Failure to meet CSR obligations can result in penalties as regulated by law.

“Government Regulation Number 47 of 2012 concerning Social and Environmental Responsibility of Limited Liability Companies” further specifies the details of CSR programs, including budget allocation, implementation methods, and community feedback mechanisms to ensure CSR initiatives go beyond mere formalities.

In recent years, driven by supportive legislation, Indonesian companies have actively engaged in CSR, achieving significant results in environmental protection, social contributions, and governance. Below are some notable examples:

  1. PT Pertamina (Persero)

Through its CSR programs, Pertamina has supported the development of renewable energy by constructing solar power plants (PLTS) for remote villages. A notable project is the PLTS initiative on Pahawang Island, Lampung, which successfully provided electricity access to hundreds of households [7].

  1. PT PLN (Persero)

PLN runs the “Electrified Villages” program aimed at delivering electricity to remote areas. One achievement is the development of co-firing biomass-based power plants, such as at PLTU Rembang, which use agricultural waste as fuel, reducing carbon emissions while empowering local farmers economically [8].

  1. PT Bio Farma (Persero)

Bio Farma actively supports public health through mass vaccination programs across Indonesia, especially during the COVID-19 pandemic. It has also established healthcare training centers to enhance the capacity of medical professionals in remote regions [9].

  1. PT Indonesia Weda Bay Industrial Park (IWIP)

IWIP has implemented comprehensive CSR initiatives to improve the economic well-being of communities in North Maluku. Since its establishment in 2018, IWIP has supported various sectors such as education, health, socio-culture, the environment, and local community economic development. The company has provided support for facilities and infrastructure to over 25 schools and Islamic boarding schools, implemented vocational training programs, and offered scholarships from vocational to postgraduate levels. IWIP has also supported health centers with oxygen tanks, constructed hospital wards, and improved healthcare services in the Weda area, including providing ambulances and building inpatient centers. Additionally, IWIP has carried out coral transplantation and mangrove restoration, planting one million mangroves to protect the local ecosystem [10].

  1. MMS Group Indonesia (MMSGI)

MMSGI received a five-star Excellence Award at the 2024 TOP CSR Awards, recognizing its efforts to improve local community quality of life. The company implemented the Paspatambang Clean Water Program, providing clean water resources to communities. It also engaged in rainforest and conservation forest restoration, offered scholarships to support local students, and developed traditional villages like Lung Anai Suku Dayak Kenyah while providing capital support to local MSMEs [11].

With the execution of the Paris Agreement, international investors have increasingly prioritized sustainability in investment decisions, using ESG as a key metric. The Indonesia Stock Exchange (IDX) launched an ESG rating system in 2020, requiring all listed companies to provide detailed ESG performance data. Based on these ratings, companies are granted financing and investment incentives. In 2022, IDX expanded the release of green bonds to attract more companies to fund environmental and social projects. By 2024, the IDX has made significant progress in ESG initiatives and green bonds issuance. IDX continues to promote sustainable investment and support companies practicing ESG principles in their operations. IDX has established a set of ESG standards that must be adhered to by companies wishing to list on the exchange. In 2024, IDX further strengthened the market of green bonds, with many companies using green bonds to finance renewable energy, water-saving, and energy efficiency projects. As of October 2024, the Financial Services Authority (OJK) reported that the value of sustainability-based bonds and sukuk issuance in Indonesia had reached IDR 36.4 trillion [12]. This indicates that Indonesia is continuously supporting the growth of the sustainable investment market.

3.2.3 Support for Small and Medium Enterprises (SMEs) and Startups

Small and Medium Enterprises (SMEs) play a vital role in Indonesia’s economy, and the government, through reforms to the Limited Liability Company Law, provides more support to these enterprises.

  1. Simplification of Registration Process

The “Job Creation Law 2021 (Omnibus Law)” removed the minimum capital requirement for micro and small enterprises and allowed them to complete registration through simplified procedures. “Government Regulation Number 7 of 2021 concerning the Ease, Protection, and Empowerment of Cooperatives and Micro, Small, and Medium Enterprises” further detailed classification standards for micro and small enterprises and provided free consultation services during registration, lowering market entry barriers.

  1. Financing Convenience

The government, in collaboration with financial institutions, has introduced various support policies, including establishing Endowment Fund for Entrepreneurship Indonesia, which offers low-interest loans and equity financing for SMEs and startups. In 2023, the government launched the “Baparekraf for Startup (BEKUP) 2023” program, focusing on innovative tech enterprises, providing interest-free loans and technical support. The Bank Indonesia also lowered loan interest rates, enabling more micro and small enterprises to access business funds at a lower cost.

  1. Training and Guidance

The Ministry of Industry, in collaboration with local educational institutions, launched the Micro, Small, and Medium Enterprises (MSME) Digitalization Program, providing free online tools for enterprises and conducting multi-level skill training. Nationwide innovation and entrepreneurship competitions are held annually, offering funding support and market promotion opportunities for outstanding startup projects.

3.2.4 Legal Support for Foreign Investment

Indonesia actively attracts foreign investment through reforms in the Limited Liability Company Law. Because trade can make everyone’s situation better [13]. The “Job Creation Law 2021 (Omnibus Law)” relaxes foreign ownership restrictions in several industries, allowing up to 100% foreign ownership in sectors such as technology, e-commerce, and renewable energy. “Presidential Regulation Number 49 of 2021 concerning the Amendment to Presidential Regulation Number 10 of 2021 concerning Investment Fields” lists priority sectors open to foreign investment and provides tax incentives and expedited approval services for eligible foreign enterprises. Indonesia has also signed multiple Bilateral Investment Treaties with major economies like Japan, South Korea, and China, ensuring protection for foreign investors in terms of investment rights, tax policies, and dispute resolution. According to the “Law Number 30 of 1999 concerning Arbitration and Alternative Dispute Resolution”, foreign investors can choose international arbitration institutions to handle disputes with the government or local enterprises.

3.3 Current Key Issues

Although Indonesian Limited Liability Company Law reform has achieved many successes, it still faces key challenges that hinder its effective implementation in economic development, social equity, and globalization.

3.3.1 Lack of Efficiency and Transparency in Legal Execution

Despite the ongoing digital transformation, the enforcement efficiency of Indonesian Limited Liability Company Law remains low. The system coverage has not yet achieved full coverage, particularly in remote areas, where related laws and regulations are difficult to implement swiftly. Additionally, online registration processes remain complex, making it difficult for businesses and individuals to access relevant services.

The lack of digital infrastructure, insufficient technical capacity at the local government level, and fragmented policy execution mechanisms are the main reasons behind low legal execution efficiency. Moreover, the government provides insufficient technical support to remote regions and small enterprises, failing to effectively shorten online service times and processes.

3.3.2 Corporate Governance and Transparency Need Further Strengthening

Although Indonesian Limited Liability Company Law sets standards for information disclosure, many companies do not strictly follow these regulations in practice, and transparency in both financial and non-financial information remains insufficient. The independence and professionalism of corporate boards need further improvement, and conflicts of interest often arise.

The methods of appointing board members, the internal governance structures of companies, and the lack of effective oversight mechanisms are core factors leading to insufficient transparency. Additionally, corporate culture does not fully embrace good governance practices, and there are still constraints from internal interest networks within many companies.

3.3.3 Insufficient Support for SMEs

In Indonesia’s economy, SMEs are the driving force for economic growth. However, SMEs still face numerous challenges in accessing financing, technical support, and market connections. Tax policies have not effectively eased the financial burden on small enterprises, and financing channels remain narrow.

The financial system provides insufficient service coverage for SMEs, with bank loan standards being too strict, making it difficult for small enterprises to obtain long-term and stable financing support. Furthermore, the lack of effective collaboration between the public sector and private capital has hindered the creation of platforms for SME incubation.

3.3.4 Low Level of Internationalization of Law

Indonesian Limited Liability Company Law has a low level of engagement with international legal rules, which affects its attractiveness in global markets. Poor quality translations of the law result in misunderstandings by international investors, leading to inaccurate interpretations of legal provisions.

The government’s capacity and resources to participate in international legal affairs are limited, and translation work has not kept pace with the needs of international investors. Additionally, the business community has a limited understanding of international legal frameworks and lacks effective strategies for international collaboration.

3.3.5 Weak Legal Constraints on Environmental and Social Challenges

Against the backdrop of global sustainable development, Indonesian Limited Liability Company Law needs to better address environmental and social issues. However, legal constraints on businesses regarding pollution control and resource protection remain weak, with a lack of mechanisms to support green economic development.

The enforcement of environmental legal responsibilities is weak, and there are no dedicated environmental courts or enterprise environmental impact assessment mechanisms. Companies lack effective mandatory constraints in environmental governance, which leads to insufficient implementation of sustainable development in many enterprises.

3.4. Future Development Directions and Policy Recommendations

The continuous reform of Indonesian Limited Liability Company Law reflects the values of social justice embedded in Indonesia’s Pancasila ideology – where every law and court decision must embody the spirit of justice. The values of social justice encourage every Indonesian to truly achieve a just and prosperous society, both physically and mentally [14]. Against this backdrop, legal formulation and enforcement not only focus on economic growth but also emphasize promoting fairness, protecting the rights of vulnerable groups, and advancing overall social harmony. Therefore, the Indonesian government, in driving company law reform, must take a social justice perspective. Through policy adjustments, legal innovation, and institutional improvements, the government should ensure that the law genuinely reflects fairness and justice, fostering long-term social stability and sustainable economic development.

3.4.1 Deepen Digital Transformation

Digital reform is the core direction for improving legal implementation efficiency and transparency. In the future, the Indonesian government must ensure expand system coverage, through technical and financial support, to ensure the effective promotion of the OSS system in remote areas. Additionally, the user experience must be optimized, and online registration processes simplified, while providing SMEs with technical training to lower access barriers. Finally, data security should be strengthened by establishing encryption and backup mechanisms to address potential cybersecurity threats.

3.4.2 Strengthen Corporate Governance and Transparency

Good corporate governance is key to attracting international investment and enhancing corporate competitiveness. The Indonesian government should establish mandatory disclosure standards, requiring companies to regularly disclose both financial and non-financial information, including CSR and ESG metrics. Furthermore, the independent director system needs to be improved to enhance board independence and professionalism, preventing conflicts of interest. Finally, corporate culture must be transformed through education and advocacy to increase acceptance and implementation of good governance practices.

3.4.3 Support for SMEs and the Innovation Ecosystem

The development of SMEs is crucial for economic growth. The Indonesian government must ensure expand financing channels by establishing dedicated SMEs development funds and attracting more private capital. Additionally, innovation incubation platforms should be built through public-private sector collaboration, providing startups with technical support and market access. Simplified tax policies should also be introduced to offer tax incentives for small enterprises, easing their financial burdens.

3.4.4 Enhance Legal Internationalization

To enhance integration into global markets, Indonesian Limited Liability Company Law needs further internationalization. The Indonesian government should engage in international rule-making and actively participate in company law framework negotiations within ASEAN and globally to enhance its influence. It should also adopt international best practices and learn from the successful experiences of other emerging economies in legal reform, adjusting local policies accordingly. Finally, the quality of legal translations must be improved to provide international investors with high-quality legal text translations, reducing misunderstandings.

3.4.5 Address Environmental and Social Challenges

Within the framework of global sustainable development, Indonesian Limited Liability Company Law must better address environmental and social issues. The Indonesian government must ensure enhance environmental legal accountability, strengthening legal constraints on companies regarding pollution control and resource protection. Community participation should also be promoted, encouraging businesses to collaborate with local communities to ensure social acceptance and sustainability of projects. Lastly, support for green economies must be provided, offering legal and financial assistance to green technologies and eco-friendly enterprises.

Through these measures, Indonesian Limited Liability Company Law will be better equipped to adapt to changes in the domestic and global economic and social environment, driving long-term national economic development and enhancing global competitiveness.

4 Conclusions

The evolution of Indonesian Limited Liability Company Law has been both a reflection of the nation’s economic transformation and a response to global trends in corporate governance. From its colonial foundations to modern reforms, the legal framework has significantly progressed to support economic growth, foreign investment, and the protection of stakeholder interests. Key innovations such as digital transformation, enhanced corporate governance, CSR integration, and support for SMEs demonstrate Indonesia’s commitment to aligning with international standards while addressing domestic needs.

Despite these advancements, challenges remain, including inefficiencies in legal implementation, limited support for SMEs, and the need for greater transparency and environmental accountability. These challenges underscore the need for ongoing reform and capacity building, enabling the legal framework to effectively address the demands of globalization, digitalization, and sustainable development.

Looking forward, Indonesia must deepen its digital transformation, strengthen governance and transparency mechanisms, and adopt international legal standards to enhance global competitiveness. Order and justice are the ultimate objective of law. And only in stable society will citizens have the interest and opportunity to develop themselves and contribute to life together [15]. Emphasizing social justice, as rooted in Indonesia’s Pancasila ideology, should remain central to these reforms, ensuring that economic progress is inclusive and sustainable. By addressing these priorities, Indonesian Limited Liability Company Law can become a robust foundation for national development and a model for emerging economies worldwide.

5 Acknowledgments

The authors sincerely thank all the members of Queen Law Firm in Jakarta and Bandung, Indonesia.

6 References

  1. Munir Fuady. Perseroan Terbatas Paradigma Baru. PT. Citra Aditya Bakti, Bandung, Indonesia, 2003, 37.
  2. Hukum Perusahaan. Ghalia Indonesia, Bogor, Indonesia, 2010, 11.
  3. Yue Guan, Eni Oktaviani. Meningkatkan Efisiensi Peradilan Dalam Tata Cara Prosedural Litigasi Perdata Indonesia. Delega Lata: Jurnal Ilmu Hukum, 2021; 6(2): 101-119.
  4. Yue Guan. Fungsi Hukum E-Commerce Dalam Pembangunan Ekonomi Indonesia Yang Berkualitas (Studi Perbandingan Hukum E-Commerce Indonesia Dan Tiongkok). Doctoral Dissertation. Universitas Katolik Parahyangan, Bandung, Indonesia, 2023, 172.
  5. Tutup Tahun 2023, Tujuh Juta NIB Terbit Melalui OSS. https://www.bkpm.go.id/id/info/siaran-pers/tutup-tahun-2023-tujuh-juta-nib-terbit-melalui-oss. December 30, 2023.
  6. Investor Kini Dapat Ikut RUPS Secara Online. https://www.ksei.co.id/files/uploads/press_releases/press_file/id-id/197_berita_pers_investor_kini_dapat_ikut_rups_secara_online_20210630231205.pdf. June 28, 2021.
  7. Tanggung Jawab Sosial Perusahaan. https://www.pertamina.com/id/tanggung-jawab-sosial-perusahaan. 2020.
  8. Corporate Social Responsibility (CSR). https://web.pln.co.id/sustainability/corporate-social-responsibility-csr. 2025.
  9. Tanggung Jawab Sosial dan Lingkungan. https://www.biofarma.co.id/id/corporate-social-responsibility. 2025.
  10. PT IWIP Tingkatkan Kesejahteraan Masyarakat melalui Program CSR Terintegrasi. https://voi.id/ekonomi/399809/pt-iwip-tingkatkan-kesejahteraan-masyarakat-melalui-program-csr-terintegrasi. July 18, 2024.
  11. MMS Group Indonesia Raih Penghargaan Bergengsi TOP CSR Untuk Kategori Ini. https://voi.id/ekonomi/385364/mms-group-indonesia-raih-penghargaan-bergengsi-top-csr-untuk-kategori-ini. May 29, 2024.
  12. Obligasi dan Sukuk Hijau RI Tembus Rp 36,4 T, Bos OJK Ungkap Ini . https://www.cnbcindonesia.com/market/20241008095333-17-577777/obligasi-dan-sukuk-hijau-ri-tembus-rp-364-t-bos-ojk-ungkap-ini. October 8, 2024.
  13. Yue Guan, D. Priyatno, A. Kamilah, Comparison Between Chinese E-Commerce Laws and Indonesian Information and Electronic Transactions Laws Against Cross-Border Online Services. International Journal of Scientific and Technology Research, 2019; 8(10): 3189-3194.
  14. Yue Guan, Eni Oktaviani. The Impact of Pancasila Ideology on Indonesian Law. Educational Research, 2022; 3(6): 304-305.
  15. Budiono Kusumohamidjojo. Teori Hukum – Dilema antara Hukum dan Kekuasaan. Penerbit Yrama Widya, Bandung, Indonesia, 2019, 113.

Queen Law Firm Establishes New Branch in Jakarta

Posted by Eni Oktaviani, SH., MH., CLA on

On January 20, 2025, the renowned Indonesian Queen Law Firm announced the official opening of its newest branch in The Kensington Office Tower, located in Jakarta’s premium business district. This strategic move aims to better serve its rapidly growing corporate clientele while solidifying the firm’s position as a leader in the legal services market.

Prime Location

The Kensington Office Tower, situated in the bustling Kelapa Gading area in North Jakarta, is an iconic modern office building. Its convenient location and premium business environment have attracted numerous international and local companies. The selection of this site for the firm’s new branch reflects its commitment to high-quality client service and confidence in the future potential of Indonesia’s legal market.

Comprehensive Legal Services

The new branch will focus on providing a full range of legal services to both local and international clients. Dr. Guan, a senior partner at the firm, stated: “With Indonesia’s ongoing economic growth and increasing foreign investments, we feel a responsibility to offer more accessible and professional legal support to our clients. The establishment of this new branch is our proactive response to these needs.”

Future Outlook

Since its founding, Queen Law Firm has always been client-centric, continuously expanding its service areas. The opening of the Jakarta branch marks a milestone in the firm’s development and underscores the steady growth of Indonesia’s legal industry.

The firm plans to further expand its presence in Indonesia in the coming years to consolidate its industry leadership and help more businesses and individuals succeed in navigating complex legal landscapes.

Queen Law Firm and China’s Big Star Law Firm Establish Strategic Partnership

Posted by Dr. Guan Yue on

Preface
In today’s globalized business environment, the professionalism, comprehensiveness, and international perspective of legal services are becoming increasingly critical. To better meet clients’ growing and complex needs, and to provide high-quality, efficient, one-stop legal service solutions, Queen Law Firm and Big Star Law Firm are pleased to announce the establishment of a strategic partnership.

1. Background of Cooperation
As economic exchanges between Indonesia and China grow closer, cooperation in trade, investment, engineering, and other fields continues to deepen. However, differences in legal systems and cultural backgrounds between countries pose significant challenges for businesses engaged in cross-border operations. To help enterprises overcome legal obstacles and achieve steady development, Queen Law Firm and Big Star Law Firm, leveraging their profound expertise and stellar reputations, have decided to join forces, pooling resources to build a legal service bridge across borders.

2. Introduction to Big Star Law Firm
Guangxi Big Star Law Firm, officially established with the approval of the Ministry of Justice, is located in Nanning, Guangxi Zhuang Autonomous Region. Positioned within the ASEAN economic zone, it is a boutique law firm with international practice standards. Specializing in corporate affairs, litigation and arbitration, entertainment law, family inheritance, intellectual property, criminal defense, and administrative law, the firm excels in providing professional, efficient, and high-quality legal services to a diverse clientele, including domestic businesses, entertainment celebrities, and foreign investors.

3. Advantages of Cooperation
(1) Professional Complementarity and Comprehensive Services
Queen Law Firm and Big Star Law Firm each have unique strengths, enabling deep professional synergy. Big Star Law Firm has extensive experience and capabilities in domestic legal matters, while Queen Law Firm holds profound resources and expertise in Indonesia’s legal environment. Through this collaboration, clients will benefit from comprehensive legal services covering both China and Indonesia, including but not limited to company registration, contract review and drafting, intellectual property protection, investment mergers and acquisitions, and dispute resolution, ensuring professional and precise legal support at every stage of cross-border business operations.

(2) One-Stop Service for Convenience and Efficiency
This partnership aims to create a one-stop legal service platform for clients. Whether Chinese enterprises expanding into the Indonesian market or Indonesian businesses entering China, clients can access a seamless service system that spans the entire process—from preliminary market research, legal consultation, and project planning to contract execution and dispute resolution. This one-stop service model significantly simplifies communication, enhances efficiency, reduces legal risks, and provides strong support for cross-border operations.

(3) In-Depth Market Insights and Seizing Opportunities
With years of deep cultivation in Indonesia, Queen Law Firm possesses keen insights into local market dynamics, policy changes, and business culture. Partnering with Queen Law Firm allows Big Star Law Firm to gain a thorough understanding of the Indonesian market’s unique characteristics and requirements, enabling them to offer more targeted and effective investment advice and legal solutions, helping businesses seize opportunities and achieve sustainable development.

(4) Jointly Addressing Challenges and Mitigating Risks
Cross-border operations are often accompanied by complex legal risks and cultural challenges. By forming a partnership, both firms will establish a joint professional team to thoroughly research the legal policies of both countries, proactively identify potential risks, and develop corresponding strategies. In the event of legal disputes, they can respond swiftly, leveraging their expertise in different legal systems to provide robust legal defense and dispute resolution support, thereby safeguarding clients’ rights and interests to the greatest extent possible.

4. Prospects for Cooperation
The establishment of this strategic partnership marks a significant milestone in the development of Queen Law Firm and Big Star Law Firm. It is also an important step for both firms to align with the global trend and actively expand their international business footprint. In the future, both firms will remain client-centric, continuously innovate service models, enhance service quality, strengthen communication and collaboration, and explore more areas and opportunities for cooperation. We firmly believe that the close partnership between Big Star Law Firm and Queen Law Firm will inject new vitality into the collaboration between Chinese and Indonesian enterprises, create greater value for clients, and open a new chapter in the field of legal services!

Categories of Witnesses Prohibited from Testifying in Indonesian Civil Trials

Posted by Dr. Guan Yue on

In civil trials, a witness is someone who directly sees, hears, or experiences a legal event, and their testimony can serve as one of the considerations in resolving a case. According to Article 1866 of the Indonesian Civil Code (Kitab Undang-Undang Hukum Perdata, abbreviated as BW), the forms of evidence are as follows:

  • Written evidence;
  • Witness testimony;
  • Presumptions;
  • Confessions;
  • Oaths.

However, not everyone can serve as a witness in civil litigation. The Indonesian Civil Procedure Code (Hukum Acara Perdata), particularly Revised Indonesian Civil Procedure Code (H.I.R (Herzien Inlandsch Reglement)) Article 145, sets specific restrictions on who may testify as a witness.

 

Restrictions on Witnesses

Article 145 of H.I.R states that the following individuals cannot serve as witnesses in civil trials:

  1. Direct relatives and in-laws
    This includes direct family members or in-laws of the parties involved.
  2. Spouses
    Even if divorced, a former spouse cannot act as a witness against the other party.
  3. Minors under 15 years of age
    If it cannot be confirmed that the witness is at least 15 years old, their testimony is invalid.
  4. Mentally ill individuals
    Even if the individual occasionally has clear memory, their testimony is not considered valid evidence.

Exceptions

Despite these restrictions, there are exceptions where such witnesses may testify:

  1. Family disputes
    In cases involving family matters such as marriage, divorce, or child custody, direct relatives or in-laws may act as witnesses.
  2. Labor disputes
    For issues related to employment contracts (e.g., termination, severance pay, or labor rights), these restrictions may be waived.

Right to Refuse Testimony

Article 146 of H.I.R grants certain individuals the right to refuse to testify, including:

  1. Siblings and their spouses from either party;
  2. Direct blood relatives and siblings of the husband or wife of one of the parties;
  3. Any person who, by virtue of their job or position, is legally bound to maintain confidentiality; but only regarding matters entrusted to them.

This protects witnesses from being forced into difficult situations, ensuring their rights and privacy.

Legal Consequences

If a prohibited person is compelled to testify in a civil trial, their testimony is of limited legal value. While they may appear in court, they are not sworn in, and their testimony cannot be used as valid evidence.

 

Conclusion

The restrictions on witnesses in Indonesian civil trials reflect the legal system’s commitment to fairness and the reliability of evidence. By specifying who can and cannot testify, and allowing exceptions in particular circumstances, the law ensures that the evidence presented in court is both credible and appropriate for the case at hand.

PASAL 25 in Indonesia’s Corporate Tax System and Its Calculation Method

Posted by Dr. Guan Yue on

In Indonesia’s taxation system, PASAL 25 (Pajak Penghasilan Pasal 25, abbreviated as PPh Pasal 25) is an integral part of corporate income tax. It provides a mechanism for companies to pay their income tax in monthly installments, reducing the financial burden of a single annual payment and ensuring steady tax revenue for the government. This article will explain PASAL 25, its scope, and its calculation method.

What is PASAL 25?

PPh Pasal 25 refers to the tax regulation under Article 25 of Indonesia’s Income Tax Law, requiring taxpayers to pay their estimated annual income tax in monthly installments. It applies to:

  1. Corporate taxpayers (Badan Usaha), including limited liability companies (PT), cooperatives, and other business entities.
  2. Individual taxpayers (Wajib Pajak Orang Pribadi) whose income meets the taxable threshold.

PASAL 25 serves as a prepayment towards the final annual income tax liability (PPh Pasal 29), alleviating the financial burden during the annual tax return process.

How is PASAL 25 Calculated?

The monthly installments for PASAL 25 are based on the previous year’s tax filings, using the following formula:

Where:

  • Previous Year’s Tax Liability: The total income tax payable reported in the previous year’s tax return (PPh Pasal 29).
  • Previous Year’s Tax Credits: Tax amounts already paid through withholding taxes such as PPh Pasal 21 (employee income tax), PPh Pasal 23 (withholding tax on specific transactions), and PPh Pasal 22 (prepaid tax for imports).
  • 12: The number of months in a year, representing equal monthly installments.

Example Calculation

Suppose a company’s total tax liability for 2023 was IDR 1,200,000,000, and it had already paid IDR 400,000,000 through PPh Pasal 21, PPh Pasal 23, and PPh Pasal 22. Its monthly PASAL 25 payment for 2024 would be:

Thus, the company would need to pay IDR 66,666,667 monthly as its PASAL 25 obligation in 2024.

Payment Procedure and Deadlines

Taxpayers are required to pay PASAL 25 by the 15th of each month, using the following steps:

  1. Generate a tax payment slip (SSP) through Indonesia’s online tax system (e-Billing).
  2. Complete the payment at designated banks or through online payment systems.

Timely payment of PASAL 25 avoids penalties and late payment fines.

Relation to Other Taxes

PASAL 25 operates as a prepayment mechanism linked to the final annual income tax (PPh Pasal 29). If the total prepaid tax exceeds the actual annual tax liability, the taxpayer can apply for a refund. Conversely, if the prepayments fall short, the taxpayer must pay the difference during the annual tax reconciliation process.

Conclusion

PASAL 25 is a critical component of Indonesia’s corporate tax framework. Proper planning and timely compliance with PASAL 25 obligations help businesses manage their tax burden effectively while avoiding penalties. Companies should ensure accurate calculations based on their previous year’s tax data to stay compliant with the law.

Overview of the Indonesian Tax Court

Posted by Eni Oktaviani, SH., MH., CLA on

The Indonesian Tax Court (Pengadilan Pajak) is a judicial body dedicated to resolving tax disputes in Indonesia. As part of the judicial system, its primary function is to adjudicate cases of dispute between taxpayers and tax authorities. The Tax Court holds a significant role within the legal framework, providing taxpayers with a legitimate means of appeal to safeguard their rights when they disagree with a decision from the tax authorities.

I. Duties and Jurisdiction of the Tax Court

The Indonesian Tax Court is responsible for hearing and ruling on various disputes between the Directorate General of Taxes (Direktorat Jenderal Pajak) or other tax-collecting agencies (such as the Directorate General of Customs and Excise). The main types of cases it handles include:

  • Tax Assessment Disputes: When taxpayers disagree with the tax authorities’ assessments, they may file a lawsuit with the Tax Court within a specified period. These disputes commonly involve Income Tax (Pajak Penghasilan), Value-Added Tax (Pajak Pertambahan Nilai), and other local taxes and customs duties.
  • Tax Penalties and Fines Disputes: If a taxpayer believes that penalties or fines imposed by the tax authority are unreasonable, they can appeal to the Tax Court to seek a fair resolution.
  • Tax Procedure Issues: These include issues such as whether the tax authority’s investigative procedures are reasonable and if the enforcement process complies with regulations.
  • Customs Disputes: These disputes involve import/export taxes, customs duties, and other tax issues related to the Directorate General of Customs and Excise.

II. Litigation Process

When taxpayers disagree with the decision of the tax authorities, they must file a lawsuit with the Tax Court within 90 days of the ruling’s issuance. The main steps in the process include:

  • Filing an Application: Taxpayers or their legal representatives submit the case and pay the relevant court fees. They must provide evidence and documentation related to the case to support their stance.
  • Hearing Process: The court proceedings generally include an initial review and a substantive examination. During the hearing, judges assess the statements from both parties and the submitted evidence to fully understand the case and ensure a fair ruling.
  • Ruling: After the hearing, the court issues a final ruling. Both the taxpayer and the tax authority must fulfill their obligations according to the ruling. If either party is unsatisfied with the Tax Court’s decision, they may further appeal to the Supreme Court (Mahkamah Agung), though the appeal process is strict and subject to specific conditions.

III. Importance of the Tax Court

The Tax Court plays an essential role in protecting taxpayer rights, promoting compliance with tax laws, and enhancing transparency within tax authorities. It offers taxpayers a legitimate pathway to challenge tax authorities’ decisions, preventing potential abuses of power in the tax collection process. Additionally, the Tax Court’s rulings serve as precedents for tax practices in Indonesia, contributing to the improvement of the tax regulatory system and enhancing transparency in tax administration.

IV. Challenges and Future Outlook

Despite its important role, the Indonesian Tax Court faces some challenges:

  • Case Backlog: The increasing number of tax dispute cases has led to a higher workload for the court, which has extended case processing times.
  • Shortage of Specialized Professionals: The tax field requires professionals with expertise in both finance and law, and the Tax Court has high standards for judges and lawyers. The shortage of skilled personnel limits the court’s operational efficiency.
  • System Optimization: The Tax Court still needs to further optimize its case management processes and information systems to improve efficiency and transparency.

In the future, as the Indonesian government continues to refine the tax system and strengthen communication between tax authorities and taxpayers, the role of the Tax Court will become increasingly important. The Tax Court is also expected to actively adopt digital systems to accelerate case processing and provide more efficient services. Through these initiatives, the Indonesian Tax Court will be better equipped to protect taxpayers’ legitimate rights and promote transparency and fair enforcement by tax authorities.

The Three-tier Final Appeal System in Indonesia

Posted by Dr. Guan Yue on

Indonesia’s judicial system adopts a three-tier final appeal system. This means that every case can go through three levels of review, with the Supreme Court making the final ruling.

The first instance is usually heard in the district court. Here, the judge will examine the facts of the case and render a verdict. If either party is dissatisfied with the decision, they can appeal to the higher court.

The second level of appeal takes place in the provincial high court. The high court will re-examine the case and may either overturn or uphold the original judgment. If the parties are still not satisfied, they can further appeal to the Supreme Court.

The final appeal process happens at the Indonesian Supreme Court. The Supreme Court has the ultimate decision-making power, and its judgments are legally binding. This three-tier appeal system provides safeguards for judicial fairness and legal certainty.

This three-level judicial review system helps to fully protect the litigants’ right to appeal. Each stage offers an opportunity for examination and defense, ensuring the fairness and correctness of the final ruling. Even at the Supreme Court, the parties can continue to appeal until a satisfactory result is obtained.

Of course, the three-tier final appeal system also has its limitations. The entire litigation process may drag on for years, imposing a heavy burden on the parties and judicial resources. As a result, the Indonesian government has in recent years been exploring ways to streamline the review process and improve judicial efficiency.

Overall, Indonesia’s three-tier final appeal system reflects the judicial system’s pursuit of justice and certainty. It provides ample opportunities for redress to the parties, but at the same time, a balance needs to be struck between efficiency and fairness.

Eni Oktaviani and Dr. Guan Yue Awarded “Indonesia Most Trusted Lawyer Award 2024”

Posted by Dr. Guan Yue on

At the awards ceremony on July 5, 2024, lawyers Eni Oktaviani and Dr. Guan Yue of Queen Law Firm were honored with the prestigious “Indonesia Most Trusted Lawyer Award 2024”. This recognition not only acknowledges their outstanding achievements in the legal field but also affirms their profound discussions and contributions to trust, law, and justice.

During the awards ceremony, Dr. Guan Yue delivered a thought-provoking speech titled “How Trust, Law, and Justice Should Promote Each Other.” He delved deep into the importance of trust in the legal system and how law and justice are interdependent, mutually reinforcing concepts. Dr. Guan Yue’s speech not only captivated the audience but also sparked deep reflections on legal ethics, social justice, and the advancement of the rule of law.

As members of Queen Law Firm, Eni Oktaviani and Dr. Guan Yue have demonstrated exceptional professionalism and a passion for the legal profession. They have not only showcased superior legal skills in handling cases but have also contributed to advancing judicial fairness and the progress of the rule of law through active participation in social welfare activities and legal advocacy work.

The awarding of the “Indonesia Most Trusted Lawyer Award 2024” not only recognizes the personal achievements of Eni Oktaviani and Dr. Guan Yue but also acknowledges the values they represent and their dedication to the legal profession. Their efforts and dedication will continue to inspire more legal practitioners to work towards building a more just, transparent, and rule of law society.

On the path ahead, Eni Oktaviani and Dr. Guan Yue will continue to lead Indonesia’s legal community towards a brighter future with their lofty beliefs and professional spirit, providing solid legal protection and support for everyone seeking justice. Their achievements will be recorded in history, serving as role models for legal practitioners and the wider society to learn from and emulate.

The Secret to Successfully Planning and Managing Mixed Marriages Between Indonesian Citizens and Foreign Nationals in Indonesia: A New Approach for Extraordinary Results

Posted by Irfan Disnizar on

The main purpose of this writing is to gain a deep understanding of the steps to plan and undertake a mixed marriage between Indonesian citizens (WNI) and foreign nationals (WNA) in Indonesia, and to apply a new approach that can result in an extraordinary and harmonious relationship.

Chapter 1: Preparation for Planning Mixed Marriages between Indonesian Citizens and Foreign Nationals

I. Understanding the Process of Preparing for Mixed Marriages in Indonesia

Planning a mixed marriage between an Indonesian citizen (WNI) and a foreign national (WNA) requires thorough preparation and a deep understanding of the involved processes. The first crucial step is to communicate openly with your partner about expectations, values, and goals for the marriage. Discuss cultural differences, traditions, and beliefs to reach a better understanding from the outset.

General steps in the process of planning a mixed marriage in Indonesia include:

  1. Collecting the required documents (birth certificate, passport, certificate of no impediment, etc.)
  2. Fulfilling legal and administrative requirements (such as visas and residence permits for the foreign national)
  3. Choosing a location and arranging the wedding ceremony according to cultural and traditional practices
  4. Completing the official marriage registration process

Factors such as culture, religion, location, and family circumstances also need to be considered in the planning of this mixed marriage.

II. Legal and Administrative Requirements

To conduct a mixed marriage in Indonesia, there are several legal and administrative requirements that both parties must fulfill. For Indonesian citizens, the required documents include a birth certificate, an identity card (KTP), and a certificate of no impediment from the local village/municipality office.

For foreign nationals, additional requirements include:

  • A valid passport
  • A limited stay visa (VITAS) or a permanent stay permit (ITAP) issued by the local immigration office
  • A certificate of no impediment from the embassy/consulate of the country of origin
  • Other legal documents such as a marriage permit from the embassy/consulate (if required)

Once all documents are complete, the couple can apply for marriage registration at the Civil Registry Office or the Office of Religious Affairs, depending on the religion they follow.

Case Study Example:

An Indonesian man named Budi and a French woman named Marie plan to marry in Indonesia. They collected all the necessary documents, including Marie’s passport, a certificate of no impediment from the French embassy, and Marie’s residence permit in Indonesia. After fulfilling all requirements, they successfully registered their marriage at the Civil Registry Office in Jakarta.

III. Building Communication and Understanding from the Start

Open communication and building understanding from the beginning are key to a successful mixed marriage. The couple should honestly and openly discuss their expectations, values, and goals. Cultural differences, traditions, and beliefs should be respected and understood by both parties.

Strategies for building understanding and a shared vision include:

  • Deeply learning about each other’s cultures
  • Discussing how to integrate traditions and values into the marriage
  • Setting common goals and future visions
  • Compromising and being willing to make adjustments if needed

Practical tips to enhance effective communication:

  • Be a good listener and show empathy
  • Use clear language and avoid assumptions
  • Be open to accepting differing opinions
  • Practice patience and emotional control during conflicts

IV. Financial and Future Planning

Financial and future planning are also important factors in a mixed marriage. The couple should openly discuss each other’s financial situation and how to manage finances together after marriage.

Consider future living and work options. Will you live in Indonesia or your partner’s home country? What are the career prospects and job opportunities for each party?

Additionally, it is important to prepare essential documents such as a will, insurance, and other financial plans to secure the family’s future.

Case Study Example:

An Indonesian woman named Sari and a German man named Hans plan to marry in Indonesia. They openly discussed their financial situations and developed a joint financial plan. They also considered long-term living in Indonesia, so Hans needed to find a job in Indonesia or start his own business. They also prepared a will and insurance to secure their family’s future.

By understanding the preparation process, fulfilling legal and administrative requirements, building communication and understanding from the start, and planning finances and the future, Indonesian and foreign national couples can effectively prepare for a mixed marriage and create a strong foundation for a harmonious and lasting relationship.

Chapter 2: Rituals and Procedures for Mixed Marriages in Indonesia

I. Aligning the Wedding Ceremony with Culture and Tradition

After preparing all the legal and administrative requirements, the next step is to organize the wedding procession itself. In mixed marriages, it is crucial to respect and combine both parties’ cultures and traditions in the wedding ceremony.

Some aspects to consider include:

  • Location and venue of the wedding ceremony (building, place of worship, etc.)
  • Traditional rituals and processions according to each culture
  • Wedding attire and decorations that reflect cultural fusion
  • Food and dishes that represent the culinary tastes of both parties

Be sure to discuss with extended family and seek advice on how to harmoniously and meaningfully blend these traditions.

II. Understanding the Importance of Respecting Cultural Differences

In mixed marriages, respecting cultural differences is key to creating a meaningful ceremony accepted by all parties. Each culture has unique traditions and rituals that may differ from others.

Some tips for respecting cultural differences include:

  • Learn and understand the meaning behind each ritual and tradition
  • Show respect and be open to accepting differences
  • Do not impose your own views or culture
  • Involve extended family and traditional leaders for guidance

By understanding and respecting cultural differences, couples can create a unique wedding ceremony that harmoniously reflects cultural fusion.

III. Aligning Rituals and Procedures According to Preferences

After understanding the importance of respecting cultural differences, the next step is to align the wedding rituals and procedures according to the preferences of both parties.

Some strategies to consider include:

  • Dividing the ceremony into several sessions that reflect each culture
  • Combining certain elements from both cultures into one ceremony
  • Using symbols or decorations that represent both cultures
  • Inviting religious or traditional leaders from both sides to lead the ceremony

Always communicate with your partner and extended family to reach an agreement on the desired form of the ceremony.

IV. Case Study: Indonesian-Japanese Mixed Marriage

For example, let’s look at a case study of a mixed marriage between an Indonesian man named Adi and a Japanese woman named Yuki.

In their wedding ceremony, they combined Javanese and Japanese traditions. The procession began with Javanese traditional ceremonies such as siraman (ritual bathing), midodareni (pre-wedding night), and ijab kabul (marriage contract). Afterward, they continued with a sacred Shinto wedding ceremony at a Japanese shrine.

The wedding attire also reflected cultural fusion, with Adi wearing Javanese beskap and Yuki wearing a traditional Japanese kimono. The decorations and dishes also combined elements from both cultures.

By aligning the rituals and procedures according to their preferences, Adi and Yuki successfully created a unique and meaningful wedding ceremony while respecting their cultural differences.

By understanding the importance of respecting cultural differences and using strategies to align the rituals and procedures according to preferences, Indonesian-foreign couples can create a beautiful wedding ceremony that harmoniously reflects cultural fusion.

Chapter 3: Facing Challenges in Mixed Marriages between Indonesian Citizens and Foreign Nationals

I. Discussing Potential Challenges

Although mixed marriages can be enriching and broaden one’s perspectives, couples must also be prepared to face various challenges that may arise. Some common challenges in mixed marriages include:

  • Cultural and Traditional Differences
    • Different values, norms, and expectations
    • Different ways of communicating and interacting
    • Different family traditions and religious practices
  • Language and Communication Issues
    • Difficulties in communicating effectively
    • Risk of misunderstandings and conflicts
  • Legal and Administrative Issues
    • Complex immigration and visa regulations
    • Property and inheritance issues
  • Challenges in Raising Children
    • How to teach and preserve each culture
    • Choosing the language to be used at home
  • Pressure from Extended Family and Social Environment
    • Lack of acceptance or support from extended family
    • Stereotypes and prejudices from the social environment

II. Strategies for Overcoming Differences in Culture, Language, and Values

To overcome these challenges, couples need to develop effective strategies. Some strategies to consider include:

  • Learning and Appreciating Each Other’s Culture
    • Study the history, traditions, and values of your partner’s culture
    • Show respect and openness to accept differences
  • Improving Communication Skills
    • Learn your partner’s language and use a translator if necessary
    • Practice active listening and clear communication
  • Finding Common Ground and Compromising
    • Discuss expectations and make mutual agreements
    • Find creative solutions that respect both sets of values
  • Building a Support Network
    • Join mixed marriage communities
    • Seek advice from experienced mixed couples

III. Emphasizing the Importance of Patience and Understanding in Facing Conflict

In facing the challenges of a mixed marriage, patience and understanding are crucial to avoiding conflicts and maintaining harmony in the relationship. Some tips to consider include:

  • Learn to Control Emotions and Think Clearly
  • Appreciate Differences and Avoid Imposing Your Own Views
  • Be Willing to Compromise and Find Solutions Together
  • Build Trust and Mutual Respect
  • Seek Professional Help if Necessary (marriage counseling, etc.)

IV. Case Study: Indonesian-Foreign Couple Facing Cultural Challenges

For example, let’s look at a case study of an Indonesian-foreign couple facing cultural challenges in raising their child.

An Indonesian man named Rudi married an English woman named Emily. They had a son. Rudi wanted to teach his son Indonesian traditions and culture, while Emily also wanted their child to know English culture.

To address this challenge, Rudi and Emily found common ground and compromised. They agreed to teach both cultures to their son, with Rudi teaching Indonesian language and traditions and Emily teaching English language and culture.

Additionally, they joined a mixed marriage community in their city to gain support and advice from other couples in similar situations.

With patience, understanding, and a willingness to compromise, Rudi and Emily successfully overcame the cultural challenges in raising their son harmoniously.

By understanding the challenges that may arise, developing strategies to overcome differences, and practicing patience and understanding, Indonesian-foreign couples can overcome various challenges in mixed marriages and build strong and harmonious relationships.

Chapter 4: Building Communication and Harmony in Mixed Marriages

I. Tips for Enhancing Effective Communication between Mixed Couples

Effective communication is crucial for maintaining harmony in marital relationships, especially in mixed marriages involving cultural and language differences. Here are some tips to improve communication between mixed couples:

  • Learn Your Partner’s Language
    • Strive to learn your partner’s language, at least at a basic level
    • This will help reduce misunderstandings and make communication smoother
  • Practice Active Listening
    • Pay full attention when your partner speaks
    • Show interest by asking questions and summarizing the essence of the conversation
  • Use Positive Body Language
    • Eye contact, nodding, and smiling can strengthen the message conveyed
  • Be a Clear Communicator
    • Avoid assumptions and express thoughts and feelings clearly
    • Use a translator or other communication aids if necessary

II. Understanding the Importance of Mutual Support and Building Trust

In addition to effective communication, mutual support and trust are also crucial for maintaining harmony in mixed marriages. Here are some steps that can be taken:

  • Show Support and Appreciation
    • Support your partner’s interests, hobbies, and career
    • Appreciate differences and value each other’s contributions in the relationship
  • Build Trust through Honesty and Openness
    • Be open and honest in expressing thoughts and feelings
    • Avoid hiding information or lying to your partner
  • Respect Privacy and Individual Space
    • Allow space and time for individual activities and personal time
    • Avoid excessive interference in your partner’s privacy
  • Create Traditions and Shared Moments
    • Establish new traditions and routines that reflect your combined cultures
    • Celebrate important moments in life with your unique style

III. Strategies for Maintaining Relationship Harmony in Mixed Marriages

To maintain relationship harmony in mixed marriages, consistent strategies and efforts are necessary. Here are some strategies to consider:

  • Continuously Learn about Your Partner’s Culture
    • Show interest and curiosity about your partner’s culture
    • Learn about the history, traditions, and values upheld by your partner
  • Be Flexible and Open to Compromise
    • Avoid imposing your own views or culture
    • Seek creative solutions that respect both sides’ values
  • Allocate Quality Time Together
    • Schedule time for shared activities such as romantic dinners or vacations
    • Avoid being too busy with work or individual activities
  • Seek Professional Help if Needed
    • Don’t hesitate to seek marriage counseling or therapy
    • This can help address conflicts and strengthen the relationship

IV. Case Study: WNI-WNA Couple Building Communication and Harmony

As an example, let’s look at a case study of a WNI-WNA couple who successfully built communication and harmony in their marriage.

Sarah, a woman from Australia, married Andi, a man from Indonesia. At the beginning of their marriage, they faced communication challenges due to language and cultural differences.

To overcome these challenges, Sarah intensively studied Indonesian language, while Andi worked on improving his English skills. They also practiced active listening and expressed thoughts and feelings clearly.

Furthermore, Sarah and Andi supported and appreciated each other’s interests. Sarah supported Andi in pursuing his career, while Andi provided space for Sarah to develop her painting hobby.

They also created new traditions reflecting their combined culture, such as alternating celebrations of Eid al-Fitr and Christmas each year.

Through consistent efforts in building communication, mutual support, and creating togetherness, Sarah and Andi successfully maintained harmony in their mixed marriage.

By implementing appropriate tips and strategies, WNI-WNA couples can build effective communication, mutual support, and maintain harmony in their mixed marriages, thereby creating a strong and lasting relationship.

Chapter 5: Life After Marriage: Maintaining Happiness and Harmony

I. Explaining the Importance of Adaptation and Compromise in Married Life

After going through the stages of preparation, wedding ceremonies, and facing various challenges, WNI-WNA couples enter a new phase in their lives as husband and wife. During this phase, the ability to adapt and compromise becomes crucial to maintain happiness and harmony in the relationship.

Adapting to Lifestyle Changes

  • Adjusting daily routines and habits
  • Sharing roles and responsibilities in the household

Compromising in Decision-Making

  • Learning to negotiate and find win-win solutions
  • Valuing each other’s opinions and desires

Flexibility in Planning for the Future

  • Being open to adjusting plans according to changing circumstances
  • Discussing choices such as residence, careers, and raising children

II. Tips for Continuously Nurturing a Happy and Harmonious Relationship

Despite being married, it’s important for couples to continue making efforts to nurture and maintain happiness and harmony in their relationship. Here are some tips to consider:

Allocate Special Time for Each Other

  • Schedule romantic moments like dinners or vacations together
  • Avoid being too caught up in work or other activities

Maintain Open and Honest Communication

  • Share thoughts, feelings, and hopes openly
  • Listen attentively and show empathy

Continuously Learn and Appreciate Each Other’s Cultures

  • Show interest in continually learning about your partner’s culture
  • Respect and preserve each other’s traditions in daily life

Create Togetherness and Intimacy

  • Engage in enjoyable activities together
  • Maintain physical and emotional intimacy in the relationship

III. Strategies for Planning a Successful and Fulfilling Future Together

In addition to maintaining current happiness and harmony, it’s crucial for WNI-WNA couples to plan a successful and fulfilling future together. Here are some strategies to consider:

Discussing Shared Goals and Priorities

  • Setting long-term goals such as careers, finances, and raising children
  • Establishing priorities and steps to achieve these goals

Planning Finances Wisely

  • Creating a budget together and managing expenses
  • Considering investments and retirement planning

Preparing for the Future of Children (if applicable)

  • Discussing education and cultural heritage to be imparted
  • Planning savings or insurance for children’s education

Remaining Flexible and Ready to Adapt

  • Being willing to adjust plans according to changing situations and needs
  • Making decisions together as partners in important matters

IV. Case Study: WNI-WNA Couple Maintaining Happiness and Planning for the Future

As an example, let’s examine a case study of a WNI-WNA couple who have successfully maintained happiness and planned for their future.

Tono, a man from Indonesia, married Laura, a woman from Spain. After marriage, they faced challenges in adapting to a new lifestyle and dividing roles in the household.

To overcome this, Tono and Laura were willing to compromise and adjust to each other. They shared household tasks fairly and discussed every important decision together.

Additionally, they always made time for special moments together, such as romantic dinners or vacations. They also continued to learn about and appreciate each other’s cultures, fostering togetherness and intimacy in their relationship.

In planning for the future, Tono and Laura discussed shared goals and priorities, such as careers, finances, and raising children. They created a budget together and planned savings for their future children’s education.

Through consistent efforts in maintaining happiness and harmony, as well as thoughtful planning for the future, Tono and Laura have built a successful and fulfilling relationship as a WNI-WNA couple.

By applying appropriate strategies, WNI-WNA couples can maintain happiness and harmony in their married life, while planning for a successful and satisfying future together. Key elements include adaptation, compromise, open communication, and wise planning.

Closing:

Preparing for and navigating a cross-cultural marriage between Indonesian nationals (WNI) and foreign nationals (WNA) indeed presents its own set of challenges. However, with thorough preparation, deep cultural understanding, and a willingness to adapt and compromise, WNI-WNA couples can navigate these challenges and build a harmonious and enduring relationship.

At Queen Law Firm, we understand the complexities involved in the process of cross-cultural marriage. As a leading law firm in Indonesia, we offer integrated services to assist WNI-WNA couples in smoothly handling all legal and administrative aspects.

Choosing our services provides several key benefits:

Expertise and Experience: Our team comprises experienced lawyers who have a deep understanding of the laws and regulations related to cross-cultural marriages in Indonesia. We can provide accurate guidance and solutions for every unique situation you may face.

Efficiency and Speed of Process: With strong networks and connections with relevant authorities, we ensure that administrative processes and legal requirements proceed smoothly and swiftly, allowing you to focus on other wedding preparations.

Personal Approach and Empathy: We recognize that every couple has unique situations and needs. Therefore, we offer a personalized and empathetic approach in serving each client, carefully listening to your needs and expectations.

Security and Confidentiality Assurance: We are committed to maintaining the security and confidentiality of your personal data and information throughout the cross-cultural marriage handling process.

At Queen Law Firm, we believe that cross-cultural marriages not only unite two individuals but also enrich cultural differences and traditions. With our services, we hope to assist WNI-WNA couples in realizing their wedding dreams more easily and enjoying happiness and harmony in their relationship.

Feel free to contact us and utilize our services in planning and experiencing your cross-cultural marriage. Let Queen Law Firm be your trusted partner to ensure that the legal and administrative processes run smoothly, allowing you to focus on building a strong and enduring foundation with your partner.

Why Do Lawyers Defend Drug Traffickers?

Posted by Eni Oktaviani, SH., MH., CLA on

In Indonesia, drug trafficking has always been a significant category of criminal cases and often involves a high proportion of foreign nationals. The harm caused by drug traffickers to society is undeniable, and therefore, drug trafficking is considered a serious crime in many countries, including Indonesia, where it can carry the death penalty.

So, why do lawyers defend drug traffickers? This question has sparked numerous discussions regarding legal ethics and professional responsibility. Representing drug sellers in court may raise moral controversies in society, but as part of the legal profession, lawyers have a responsibility to ensure that everyone receives fair legal representation.

Firstly, it’s worth noting that lawyers have ethical and legal obligations to respect and protect the rights of their clients. This includes providing legal representation to those accused of criminal activities. Various countries’ laws explicitly provide for this. According to Article 54 of Indonesia’s Criminal Procedure Code, “For the interests of defense, a suspect or defendant has the right to obtain legal assistance from one or more legal advisors during each stage of examination, according to the procedures specified in this law.” Similarly, the Sixth Amendment of the U.S. Constitution states, “in all criminal prosecutions, the accused shall enjoy the right . . . to have the Assistance of Counsel for his defense.” Article 35 of the Criminal Procedure Law of China stipulates: “If a criminal suspect or defendant, due to economic difficulties or other reasons, does not appoint a defense counsel, the person themselves or their close relatives may apply to the legal aid agency. For those who meet the criteria for legal aid, the legal aid agency shall appoint a lawyer to provide defense. If the criminal suspect or defendant is blind, deaf, mute, or has not completely lost the ability to recognize or control their behavior, and has not appointed a defense counsel, the people’s court, procuratorate, and public security organs shall notify the legal aid agency to appoint a lawyer to provide defense. If the criminal suspect or defendant may be sentenced to life imprisonment or death penalty, and has not appointed a defense counsel, the people’s court, procuratorate, and public security organs shall notify the legal aid agency to appoint a lawyer to provide defense.” This means that even for behaviors generally considered immoral or harmful by society, lawyers must respect their clients’ rights and make every effort to defend them.

Secondly, the role of lawyers is to ensure the fairness and impartiality of the judicial system. Even if the accused may be seen as criminals, they must undergo a fair trial through due process. Lawyers’ duty is to ensure the legality of evidence and guarantee a fair trial for the accused. If lawyers were to refuse to defend certain clients based on personal moral beliefs, it could threaten the fairness of the judicial system.

Furthermore, lawyers’ work is not just about defending the accused but also ensuring the proper functioning of the judicial process. By representing the accused, lawyers have the opportunity to raise objections, defend, and challenge, which contributes to the transparency and effectiveness of the judicial system.

Lastly, lawyers serve not only as advocates but also as legal advisors. When representing drug traffickers and other defendants, lawyers may provide legal advice to help them understand their rights and responsibilities. This legal guidance ensures that defendants are treated fairly throughout the judicial process and can make informed decisions.

In conclusion, the reasons why lawyers defend drug traffickers stem from their obligation to fulfill their legal duties and responsibilities and ensure the fairness of the judicial process. Although this may provoke moral controversies, lawyers’ mission is to ensure that everyone receives fair legal representation and a fair trial through due process.