What kind of law does Indonesia have?

April 15, 2023

Indonesia has a rich history and diverse culture, but many people often find themselves scratching their heads when it comes to its legal system. With so many different types of law governing different aspects of life in Indonesia, it can be challenging to understand what kind of law applies to you. Whether you're a tourist or an ex-pat planning to live in Indonesia long-term, understanding the country's legal system is essential.

The Indonesian Legal System & Sources of Law

Indonesia is a republic with a population of over 260 million people. The country is divided into 38 provinces and 516 districts. The Indonesian legal system is based on the Napoleonic code, adopted in 1848. Indonesia has two systems indonesia only adheres to civil law syste. Common law systems are used in most countries, while civil law systems are used in France, Italy, Japan, and Russia.

The Indonesian Supreme Court is the highest court in the country. Other courts include the Court of Appeal, District Courts, and Special Courts. Several government ministries administer various areas of law, such as justice, trade and industry, agriculture, forestry and fishing, religious affairs, and labor relations.

There are several sources of Indonesian law, including statutes passed by parliament (legislative), regulations issued by executive branch agencies (regulatory), case law from the lower courts (judicial), and customary or religious laws (customary).

Business Incorporation and Set-up

When starting a business in Indonesia, you must adhere to the relevant Indonesian business laws. The country's central government determines these laws, which can vary depending on the jurisdiction.

There are many ways to start a business in Indonesia. Still, some of the most common methods include: forming a partnership with another company, registering as a sole proprietorship or a limited liability company (LLC), or registering as an agricultural enterprise.

Each method has its own legal requirements that must be met before your business can operate. For example, partnerships must have at least two participants, LLCs must file Articles of Incorporation and have at least one member who is an Indonesian citizen, and registered agricultural enterprises must comply with specific regulations imposed by the Ministry of Agriculture.

In general, all businesses operating in Indonesia must abide by local labor laws and regulations that protect employees and consumers. These laws may include limits on working hours, minimum wage standards, and worker rights protections.

It is important to consult with an attorney when starting or expanding your business in Indonesia to ensure you follow all the necessary rules and procedures. An attorney can also guide how best to market your business domestically and abroad and provide advice on protecting your intellectual property rights.

Filing Requirements for Business

Under Indonesian law, businesses are regulated by the civil and criminal codes. The main categories of business covered by the law include:

  • Commercial enterprises (i.e., businesses engaged in trade or commerce)
  • Business organizations (i.e., companies, partnerships, and associations)
  • Foreign enterprises operating in Indonesia
  • Investment enterprises
  • Publicly traded companies

 The principal filing requirements for businesses are:

  •  A company must have a company registration number (NIB), which the Ministry of law and human rights.
  •  A company must have a board of directors appointed by the NIB.
  •  The NIB must file an annual report with the ministry.

 Other filing requirements depend on the type of business:

  • For commercial enterprises, the NIB must register with the tax office to determine its taxable income and capital gains.
  • For investment enterprises, the NIB must submit an investment promotion plan to the Investment Coordinating Board for examination and approval before initiating any investment activities.

Conclusion

indonesia adheres to civil law system. but in some sectors we do refer to islamic law such as marriage law (it only applies to muslim thats why there's a religious court).

Categories:  
Emiy Watson

Leave a Reply

Your email address will not be published. Required fields are marked *

Related Posts
July 16, 2024
Proactive Online Marketing: Strategies for Forward-Thinking Businesses

In today's digital landscape, proactive online marketing is more than just a necessity—it's a crucial element of business strategy that determines long-term success. Unlike reactive marketing, which responds to trends and events after they've occurred, proactive marketing involves anticipating changes and capitalizing on opportunities before they become mainstream. This comprehensive guide explores the essence of proactive online […]

Read More
July 16, 2024
How Can a Car Accident Lawyer in Wake Forest, NC Improve Your Settlement?

Car accidents can be life-altering, leaving you with injuries, medical bills, and stress. That's where a car accident lawyer in Wake Forest, NC can make a significant difference. Engaging a lawyer ensures that your rights are protected, and you receive the compensation you deserve. But how exactly can a lawyer help improve your settlement? Let's […]

Read More
July 16, 2024
What Makes Key West Snorkeling Charters the #1 Choice for Your Florida Keys Adventure

Our Charter’s Key West Marina Location Snorkeling charters in Key West, FL offer an unparalleled experience for anyone looking to explore the vibrant underwater world of the Florida Keys. Whether you are a seasoned snorkeler or a first-timer, the clear waters and diverse marine life make Key West a top destination for snorkeling. The convenience […]

Read More
Welcome to Urban Splatter, the blog about eccentric luxury real estate and celebrity houses for the inquisitive fans interested in lifestyle and design. Also find the latest architecture, construction, home improvement and travel posts.
© 2024 UrbanSplatter.com, All Rights Reserved.
linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram