Murzal & Partners Law Firm

Borderless Opportunity: Indonesia Launches Golden Visa On Thursday 25th of July 2024, Indonesian Ministry of Law and Human Rights (“MoLHR”) officially launch as well as introduces its latest immigration product named Golden Visa which took place in South Jakarta. The issuance of Golden Visa is purposefully aimed to invite potential talented individuals across the globe to invest and later contribute to the nation’s rapidly growing economy. Indonesian Minister of Law and Human Rights, Mr. Yasona Laoly, provide the following statement: “These days, Border between states has almost become borderless marked by an intense mobilization of individuals as well as the movement of international citizens resulting to the enormous growth of Indonesia in various sectors. In line with the rapid dynamism of Globalization, an adaptive and responsive regulations are required so that we can optimize all resources and potentials for the prosperity of Indonesia. Hence, we decided to conclude the issuance of Golden Visa” . The statement above is further reaffirmed by the Director General of Immigration of the Republic of Indonesia, Silmy Karim, stipulating that the Golden Visa is essential due to the increasingly interconnected world. Golden Visa is a swift response to the need for strategic initiative to elevate Indonesia global standing. It serves several main objectives which include attracting more foreign investment, driving digital innovation, as well as nurturing the nation’s human capital. Based on Article 184 of the Regulation of the Minister of Law and Human Rights No.22 of 2023 concerning Visas and Limited Stay Permits, as amended by Ministry of Law and Human Rights No.11 of 2024 concerning Amendments to Regulation of the Minister of Law and Human Rights No.11 of 2023 concerning Visas and Limited Stay Permits (together referred to as, "Permenkumham 22/2023"), the Golden Visa is a grouping of limited Stay Visas, Limited Stay Permits, Permanent Stay Permits, and Re-Entry Permits for a certain period of time. In this case, a Golden Visa is granted to carry out activities. Indonesia’s Golden Visa offers residency to foreign nationals in a period ranging from 5 to 10 years with extension. It requires investment capital ranging from the minimum of 0,35 to 50 million USD at maximum for individuals as well as 25 million to 50 million USD for Companies. Moreover, it comes with 9 visa classifications each provides specific benefits for foreign nationals. To apply for a Golden Visa, all it takes is to access the website of evisa.imigrasi.go.id and follow the instructions provided. With this latest product, Indonesia’s hopes of emerging as well as growing strongly in the world globalism continues to soar. As the Golden Visa’s are now becoming more and more accessible to foreign nationals, it is expected to provide significant stimulation towards nation’s developing economy as well as releasing country’s truest potential in the global stage. Strongly evident from the successful practices of 22 preceding countries issuing Golden Visa, the chances of making Indonesia on par with other world’s economic Giants has never been more feasible than ever.  

Updates to Indonesia’s Franchise Regulatory Landscape - An Overview Very recently, the Indonesian Government issued and enacted Government Regulation No. 35 of 2024 regarding Franchises (“GR 35/2024”). GR 35/2024 replaces the previous regulation governing the matter i.e., Government Regulation No. 42 of 2007. Key provisions under GR 35/2024 Criteria Criteria of business that can be considered as a Franchise: Possesses a business system in a form a written operational standard and procedure that is easy to be applied and include a clear framework; The business has generated profits which is proven by showcasing that the business has been franchised for at least 3 years consecutively and the business’s audited financial statements for the past 2 years have been reflecting profits; Possesses registered intellectual property rights e.g., trademarks, copyrights, patent, trade secret etc; and There is a continuous support from the franchisor to the franchisee such as training, operational management, promotion, research, market development and other form of support. For completeness, GR 35/2024 sets out the following definition: Franchise is the special rights possessed by individual or legal entity on a business system which criteria was set in order to market any goods and/or services which was proven as successful and can be leveraged and/or utilized by other party based on the Franchise agreement. Franchise agreement is a written agreement between the franchisor and franchisee which contain the granting of the rights to enjoy the economic benefit of a Franchise for a certain period of time. Offering of the Franchise The franchisor must deliver an offering prospectus to the prospective franchisee at the latest 14 calendar days before signing of the franchise agreement. The franchise offering prospectus must, at least, include the following details and must be in Bahasa Indonesia: Identity of the franchisor; Legality of the franchisor; Business history; Organisational structure of the franchisor; Business system; Financial statements of the past 2 years; Number of franchise outlets save for the franchisor who has just started to offer the franchise arrangement; List of the franchisee. Rights and obligations of the franchisor and franchisee; and Certificate or registration statement of the intellectual property rights involved. Franchise Agreement GR 35/2024 specifically governs that the prevailing law of the franchise agreement must be Indonesian law, and the minimum contents are prescribed. Interestingly, one of the contents of the franchise agreement prescribed by GR 35/2024 is a guarantee from the franchisor to the franchisee for the franchisee to obtain a compensation and/or to receive its rights in case of cease of the franchise business by the franchisor. Obligations of the Franchisor One of the key obligations of the franchisor under GR 35/2024 is to provide a continuous support to the franchisee. The continuous support could be in a form of promotion through advertisement, exhibition, or brochure. In addition to the support, the franchisor is also obliged to divide the distribution area among franchisees. These provisions indicate that GR 35/2024 wishes to ensure that the franchisor remains responsible to support the franchisee to achieve success with the franchise business, and that GR 35/2024 is not in favor of franchise arrangement where the franchisor is merely accepting as much as franchisee as possible. Obligations of the Franchisee On the other hand, one of the key obligations of the franchisee imposed by GR 35/2024 is to safeguard the ethic code/confidentiality of the intellectual property rights owned by the franchisor. Local content GR 35/2024 remains consistent with the intention of the Indonesian Government to ensure a minimum use of local content within the goods and/or services offering in franchise arrangements. The obligation to meet the local content requirement is imposed to both franchisor and franchisee, although in the case of franchisee the fulfillment of the obligation subjects to whether the use of local content meets the standard of quality prescribed by the franchisor. The minimum percentage of local content is determined by the relevant regulations. Franchise Registration Letter The franchisor and the franchisee (respectively) must obtain the franchise registration letter in order to carry out its business and the letter must be obtained prior to entering into any franchise agreement. The franchise registration letter of the franchisor is deemed invalid when: The franchisor ceases its business activity; and/or The term of the registered intellectual property rights expires. On the other hand, the franchise registration letter of the franchisee is deemed invalid when: The term of the franchise agreement expires or terminated; The franchisor or the franchisee ceases its business activity; and/or The term of the registered intellectual property rights involved in the franchise arrangement expires. Sanctions for Non-Compliance to Key Obligations Obligations Party(ies) Affected Sanctions Remarks To provide continuous support Franchisor Administrative sanctions ranging from written warning, temporary suspension of business activities, and/or revocation of franchise registration letter. As mentioned above, GR 35/2024 is clearly showcasing its position against any franchise arrangement where the franchisor is merely accepting as much as franchisee as possible. To obtain the franchise registration letter prior to the commencement of the business or entering into the franchise agreement Franchisor and/or franchisee Sanctions as per the regulations governing the risk-based business licensing, which range from written warning to revocation of license. - In case of franchise arrangement involving offshore franchise business to amend the franchise registration letter in case of changes in the franchise prospectus offering and franchise agreement. Franchisor and/or franchisee Administrative sanctions ranging from written warning, temporary suspension of business activities, and/or revocation of franchise registration letter. GR 35/2024 appears to not differentiate any treatment for franchise arrangements, either involving domestic or offshore franchise business.   Grandfather Clause All franchise registration letters issued before GR 35/2024 is grandfathered from any updates made by GR 35/2024. The franchise registration letters that are currently in progress are not grandfathered and therefore updates could be applied to the review process of these registration letters. Subsequent Franchisor and Subsequent Franchisee All obligations and references to franchisor and franchisee apply to subsequent franchisor and subsequent franchisee. To read the article in PDF version,  click here.

Clients’ Alert – Preparing for Labor Law Changes in Indonesia Overview of the Indonesian Constitutional Court Ruling No.168/PUUXXI/2023 issued on 31 October 2024 (the “Ruling”) On 31 October 2024, the Constitutional Court finally deliver its final ruling on the pleads for judicial review of the Law No. 11 of 2020 on Job Creation Law – this ruling was delivered after almost a year of series of proceedings since the first plea was submitted. The plea was submitted by several labor unions in Indonesia on the basis that the Job Creation Law (which significantly amended the landscape of Labor Laws in Indonesia) does not align with the principles of Indonesia 1945 constitution. We set out below the impactful part of the Ruling and our recommended pro-active action to mitigate the potential changes in the future. Labor rights   The Ruling envisages the importance of employer to, at all times, meet the general labor rights of employees. These rights cover the matters such as proportionality principle in determining wages, day offs for employees, and the general right of employees to have decent living. The Ruling prescribes that the minimum wage determination should be a cross stakeholders product in the sense of both regional wage councils and representative of local governments should work together to conclude the appropriate minimum wage for employees. Recommended action: businesses in Indonesia to start reviewing the existing hiring framework and how the wage was calculated. Determining the ‘proportionality’ and establishing ‘fair pay’ practice could be a struggle for businesses knowing the significance of subjective dependency, hence there could be a need of engaging a data-driven consultant to assist the businesses in setting up their view of what could be deemed as ‘proportionate’. Hiring prioritise set for Indonesian talents  It has been a longstanding rule in Indonesia that employers must prioritise the hire of Indonesian talents before seeking for expatriates/non Indonesian talents. To date, the importance of this requirement remains dependent on individual/organisational. The Ruling clarifies that businesses are required to favor Indonesian hires over foreign nationals especially for roles that do not require specific skills that cannot be undertaken by Indonesian. Recommended action: businesses to consider reviewing its hiring strategies and investing in local talent development to eventually support the localisation goals. This could be in a form of mentoring, or sharing knowledge between foreign hires and Indonesian hires. Limitation on fixed-term employment arrangement   The Ruling emphasizes that any fixed-term employment, regardless of the purpose, must be limited to a 5 year term including any extensions. In addition to the limited term, the Ruling also prescribes that the fixed-term employment agreement must be in Bahasa Indonesia. It is clear that the Constitutional Court attempts to ensure transparency in employment terms hence safeguarding the interest of employers and employees. Recommended action: Businesses to consider performing audits of its existing employment contract to understand the prevailing language, and how it was drafted. It is expected that any dispute raising from unclear drafting or language misunderstanding would be ruled in favor of the employees in light of the Ruling. Additionally, human resources policy/framework may need to be revisited to understand the impact of converting fixed-term employees to permanent positions, and to revamp the process of doing so. Clearer rights in case of termination and dispute resolution   Termination processes have been the most complex matters to navigate – regional labor government could have a different interpretation, the employees have their own expectation, and employers would want to limit any form of indemnity for the employees as minimum as possible. The Ruling is now mandating all terminations to be accompanied with a clear justification and it must be done through a formal procedures with sufficient notice to the employee. The Ruling also introduces the possibility of mandated reinstatement if the termination is not justifiable or no clear processes in place. For completeness, the Ruling also touches briefly on an expectation to implement more efficient dispute resolution between employers and employees. Recommended action: businesses to look into revamping its termination process including but not limited to ensure termination policies are well-documented, and align with the mandates of the Ruling. It would also be important to train the human resource teams to handle terminations fairly and the importance of thorough documentation.   The Ruling also pushes for the urgency to separate the labor laws from the Job Creation Law that was essentially enacted as an omnibus law. It is mandated that all judiciary authorities and governmental authorities to support the implementation of the Ruling including but not limited to produce the necessary regulatory products. Indonesia Centre of Indonesian Labor Union (Gabungan Serikat Buruh Indonesia) voiced out its gratitude for the ruling of the Constitutional Court. For the organisation, the ruling may bring in a more balanced state between keeping business interests in engaging employees while giving clarity to the employee position. Bearing in mind wide range of stakeholders who are looking after the Ruling and its impacts, we foresee changes to Indonesian labor laws to be formalised at the soonest and could be leaving businesses little to no time to adapt.   To read the article in PDF version,  click here

Disclaimer: The following is not legal advice but rather educational content. Non-reliance should be assumed. Non-Disclosure Agreement For In-Housel Counsel: Clauses Watch List Article 1320 of the Indonesian Civil Code ("Kitab Undang-Undang Hukum Perdata" or "KUHPer") stands as a fundamental provision governing the formation of valid contracts in Indonesia. Contract review and negotiation is a day-to-day activity of in-house counsel (and legal practitioners). The main goal of contract review and negotiation is not only to close the deal or formalise business relationship, but also to avoid future risks e.g., misinterpretation of the parties’ intention. In short, making sure the contract is valid under Article 1320 of Indonesian Civil Law is not enough. A non-disclosure agreement (“NDA”) is one of the regular contracts reviewed by in-house counsel as NDA is commonly serving the role as the first document being signed by the parties before discussing the potential deal any further. It is not uncommon for NDA to be the object of a dispute between the parties – in our experience, in most cases, unclear drafting which (unintentionally) allows various interpretations is the breeding ground for disagreements and disputes. We set out below a watch list of clauses that should be considered by in-house counsel when reviewing and negotiating NDA. As a refresher, at the end of the article, we provide a high-level overview of Article 1320 and the challenges in practice. Definition of confidential information  Ensure the definition of confidential information is precise and comprehensive, covering all types of data the disclosing party intends to protect, including trade secrets, rights attached to the information disclosed, business plans, and proprietary technologies. Clear scope of confidentiality obligation Clarify the scope of the confidentiality obligation to include not only keeping the information but also to include prohibition to reverse engineer the information and/or reproduce for commercial purposes or otherwise. It is also key to clarify the extent of safe-keeping obligation, for example, impose the requirement of destroying the information when the NDA is deemed terminated. Applicability of the confidentiality obligation In global business, it is important for the obligation to keep the confidentiality obligation to apply not only to the recipient of the confidential information, but also the affiliates, advisors, or related party(ies) of the recipient. Without clear drafting of the applicability of the confidentiality obligation, it could be challenging for the parties to enforce the NDA provisions in the future. For completeness, it would be pivotal to clearly define “affiliates” or “related parties” or any other relevant term. Exclusions from confidentiality  Pay attention to any exclusions, such as information already in the public domain or independently developed by the recipient without breaching the NDA. These exclusions must be narrowly defined to avoid loopholes. Term  Review the duration of the confidentiality obligations. While the agreement itself may have a fixed term, confidentiality obligations often extend beyond its termination and this should be clarified within the drafting. As a rule of thumb, no party should be subjected to perpetual obligation (e.g., confidentiality obligation) or agreement as this would expose such party to potential risks of breach. No transfer and no disruption to the intellectual property rights of the confidential information It is common for confidential information to have intellectual property rights attached to it – hence it is key to spell out the restrictions of challenging the intellectual property rights of the confidential information. Any sharing of confidential information should not imply transfer of the ownership of the information or the intellectual property rights attached to it. This should be clearly stated in the NDA to avoid any misunderstanding between the parties. Warranty of no reliance  As the common purpose of NDA is to further discuss a potential commercial deal, it is very important for the NDA to limit any liability that might arise from any commercial decisions made in reliance on the confidential information disclosed between the discloser and the recipient.   High-level overview of Article 1320 of Indonesian Civil Law Article 1320 prescribes four essential conditions for a contract to be valid: Consensus (Kesepakatan) The first requirement mandates mutual consent between the contracting parties. Consent must be free from coercion, fraud, or mistake ("dwaling"), as stipulated under Article 1321. Any taint to the purity of consent could render a contract voidable or even void. Capacity to Contract (Kecakapan untuk Berbuat) Parties must possess the legal capacity to enter into binding agreements. Under Indonesian law, capacity is often tied to age (e.g., adulthood at 18 years) and mental competence. Corporate entities must also act through duly authorized representatives, emphasizing the importance of power of attorney ("surat kuasa") and corporate resolutions. A Specific Object (Suatu Hal Tertentu) The agreement must pertain to a specific and determinable object. This ensures the subject matter of the contract is clearly identified, whether it involves goods, services, or other obligations. A Lawful Cause (Suatu Sebab yang Halal) The contract’s purpose must not contravene public order, morality, or statutory provisions. Contracts involving prohibited activities, such as usury or illegal trade, are deemed null and void.   Challenges in Practice Despite its clarity, Article 1320 can present challenges in practice. The subjective nature of "consent" and "lawful cause" often leads to judicial interpretation. Courts frequently scrutinize whether parties truly reached a meeting of the minds or whether external factors, such as coercion or misrepresentation, tainted the agreement. Legal practitioners must be meticulous in documenting negotiations and ensuring transparency in contractual terms to withstand potential disputes. The dynamic nature of business practices also tests the limits of "lawful cause." Innovations in technology, cross-border transactions, and regulatory changes may inadvertently lead to contracts that are later deemed unlawful. For instance, agreements involving emerging industries, such as fintech or blockchain, often require careful vetting against applicable laws to avoid future invalidation. Moreover, the principle of "good faith" (itikad baik) increasingly influences judicial interpretations. Courts may evaluate the behavior of parties throughout the contractual process, adding another layer of complexity to compliance and enforceability. To read the article in PDF version,  click here

Immigration Highlights - Strengthened Immigration Enforcement in Indonesia: Key Considerations for Foreign Workers and Employers Disclaimer: The following is informational in nature – crafted for the benefits of our clients, based on our recent engagement with the immigration department. Recently, we have seen increased number of news covering immigration arrest. One example: https://en.antaranews.com/news/333141/immigration-authority-boosts-supervision-despite-golden-visa-services With the new government taking place, shifts in immigration enforcement policies have been spotted. Indonesia has heightened its scrutiny over foreign nationals' compliance with work and residence regulations. This article discusses essential considerations for companies employing foreign workers in Indonesia, ensuring they understand new enforcement protocols to avoid potential penalties. Increased Immigration Audits Immigration authorities have amplified on-site audits and random inspections to verify the status of foreign employees across various sectors. These measures, designed to align with national employment policies, are intended to ensure all work visas accurately reflect foreign workers’ positions, responsibilities, and personal details. For companies, this means that any role change, adjustment to job titles, or personal information updates for foreign staff should be carefully documented and reflected in visa records. Furthermore, companies sponsoring foreign employees must notify immigration authorities of changes, often within strict timelines, such as a 30-day window for certain updates. Key Takeaway for Employers: It is crucial to develop an internal compliance framework to stay on top of visa accuracy, job title alignments, and timely updates on employee information. Mandatory Reporting of Foreign Employee Movements Indonesian regulations now mandate that employers track and report the whereabouts of their foreign employees, particularly if workers move across job sites, travel, or temporarily relocate. This measure aims to prevent unauthorized labor mobility and promote greater accountability among businesses. For companies, this means maintaining updated records on foreign employees’ work locations and ensuring they only work in designated locations permitted by their visa type. Key Takeaway for Employers: Employers should implement consistent communication and reporting protocols to monitor employee travel and location data as required by immigration authorities.   Stringent Penalties for Non-Compliance  Failure to adhere to immigration policies and reporting requirements can result in significant penalties. Non-compliant companies may face fines, while individual foreign employees could encounter legal repercussions, including deportation. With the current enforcement landscape, businesses that fail to align with these enhanced policies risk not only financial liabilities but also operational disruptions if foreign employees face restrictions or are unable to complete assignments. Key Takeaway for Employers: Proactively work with legal advisors or immigration specialists to develop a comprehensive compliance plan that includes regular audits, reporting mechanisms, and support for foreign employees navigating complex immigration requirements. Conclusion  The recent increase in immigration enforcement reflects Indonesia’s commitment to regulating foreign employment. For companies hiring foreign talent, understanding these changes and adopting a compliance-first approach is essential. Establishing clear communication, updating information promptly, and maintaining thorough records can minimize risks associated with non-compliance and ensure smooth operations under Indonesia’s stringent immigration framework. To read the article in PDF version,  click here

The Overview of Regulatory Landscape for Crypto Assets in Indonesia Indonesia has made significant strides in developing a comprehensive regulatory framework for crypto assets, reflecting its growing role in the global cryptocurrency market. This article explores key legal developments governing crypto assets in Indonesia, focusing on the current and future regulatory landscape. Key Regulations Cryptocurrencies are recognized as commodities in Indonesia, not as fiat currency. This distinction is upheld under Indonesian Law No. 4 of 2023 on the Development and Strengthening of the Financial Services Sector (“P2SK Law”). The Commodity Futures Trading Regulatory Agency (“Bappebti”) oversees crypto-asset regulation, although authority will transition to the Financial Services Authority (OJK) by January 2025, as mandated by the P2SK Law. Trading crypto assets is generally regulated under Bappebti Regulation No. 8 of 2021 as amended by Bappebti Regulation No. 2 of 2024; these outlines the guidelines for organizing physical markets for crypto assets. It also further reinforced operational requirements for exchanges and traders, emphasizing transparency, risk management, and compliance. National Crypto Exchange and Licensed Trading  In July 2023, Indonesia launched its National Crypto Exchange, PT Bursa Komoditi Nusantara, marking a milestone in its regulatory approach. The exchange consolidates licensed crypto-asset trading under a single platform, ensuring compliance with strict guidelines. Bappebti regulates which cryptocurrencies can be traded, with 229 approved assets currently listed. Unlisted assets may lead to administrative penalties. Transition to the Financial Services Authority (OJK)  The regulatory shift from Bappebti to the OJK in 2025 signifies Indonesia’s efforts to align crypto oversight with broader financial regulations. The firm foresees that OJK’s mandate will likely to include integrating crypto assets into the financial ecosystem, addressing investor protection, anti-money laundering (AML) measures, and financial stability. Regulatory Sandbox for Innovation  To date, OJK has implemented a regulatory sandbox for financial technology, including blockchain applications; the regulatory sandbox is designed to support innovation while mitigating risks/impacts to Indonesia financial services industry. The sandbox allows startups and financial institutions to test their products under supervision before public deployment. This approach complements Indonesia's broader commitment to fostering technological advancement in the financial sector. Challenges and Future Directions  Indonesia’s crypto regulatory landscape faces challenges such as ensuring compliance, managing cross-border risks, and balancing innovation with investor protection. However, its proactive approach, exemplified by the enactment of P2SK Law and the National Crypto Exchange, demonstrates a commitment to establishing a secure and sustainable crypto market. Further, gaps between Indonesia’s civil laws and trading laws of what is considered as currencies/assets will also need to be bridged at some point; either by demolishing these rules that were enacted decades ago, or bridging the gaps with new provisions. Conclusion  The current regulatory landscape reflects Indonesia’s ambitions to be part of the global crypto market. By transitioning oversight to the OJK and fostering innovation through mechanisms like the regulatory sandbox, Indonesia is indicating its position to harness the potential of crypto assets while safeguarding its financial system. To read the article in PDF version,  click here

Navigating Indonesia’s Immigration Landscape MNP Role and Relocation Services Indonesia’s growing economy and rich cultural tapestry continue to attract expatriates, foreign investors, and international professionals. However, navigating the country’s complex immigration laws and relocation procedures can be a daunting task as minor mishap could lead to visa/permit being rejected/revoked. For businesses and individuals alike, ensuring compliance with ever-evolving regulations is not just about ticking legal boxes—it is about laying a solid foundation for a successful journey in Indonesia. At Murzal & Partners (MNP), we offer end-to-end relocation services, ensuring that every aspect of our client’s transition is handled with precision and care. Key highlights of Indonesia’s immigration landscape and how relocation plays a pivotal role in ensuring compliance and successful relocation: Understanding Indonesia’s Immigration Regulations Indonesia’s immigration framework is governed by laws that regulate the entry, stay, and exit of foreign nationals. Some key points include: Visa Categories: From business visas and temporary stay permits (KITAS) to permanent stay permits (KITAP), each visa serves a specific purpose. Understanding which visa suits your needs is critical. Work Permits: Foreign nationals intending to work must secure a work permit, which is often tied to their visa application. Evolving Policies: Recent updates have streamlined certain processes, but stricter enforcement on overstays and undocumented workers means staying compliant is non-negotiable. Challenges in the Process As with any other relocation, challenges are inevitable. Common challenges when navigating immigration matters: Complex Documentation: Visa applications often require extensive paperwork, including letters of recommendation, proof of employment, and financial documentation. Lengthy Timelines: Delays can occur if applications are not meticulously prepared and submitted on time. Regulatory Changes: Policies (written and unwritten) frequently change, catching applicants unaware and unexpectedly leading to non-compliance issues. Relocation Hassles: Beyond visas, settling into a new country involves securing housing, arranging utilities, local reporting of address, and understanding provincial laws (where relevant). The Vital Role of Relocation in Immigration Compliance Relocation should not be seen as ‘finding a new place to live’. Relocation is a pivotal part of the process in securing the required visa or work permit because of the complex immigration landscape of Indonesia. Thus, at MNP, as part of our end-to-end service, MNP offers a comprehensive relocation plan. Registration of address to the local government Visa applications and work permits in Indonesia require an official address. Having proper documentation of our client’s residence is essential to fulfilling visa conditions. Streamlining coordination with local government with the right documentation  Moving into a new city or region often involves interacting with local administrative bodies. Proper relocation support ensures that these interactions are smooth and legally compliant. Avoiding unintentional non-compliance Missteps in securing accommodation, utilities, or local registrations can inadvertently lead to visa requirements fail to be met and therefore complicate the visa/work permit process. For example, failing to report the residential address can result in visa/permit application to be rejected or revoked. By integrating relocation services with visa processing, we ensure that clients exhaustively meet the legal requirements needed for smooth and pleasant relocation. MNP takes this holistic approach with the aim to minimise any risk and give peace of mind to individuals and organizations alike. MNP Comprehensive Visa and Relocation Services At MNP, we pride ourselves on providing seamless support from start to finish. Our services include: Visa Application and Processing Expert advice on the right visa type. Preparation and submission of all required documentation. Regular updates on application progress. Work Permit Assistance Streamlining work permit acquisition and renewals, including any routine reporting to any governmental authorities. Ensuring compliance with employer and industry-specific regulations. Relocation Support Assistance with finding suitable residence both on a temporary basis or permanent. Guidance on local banking, healthcare, and local reporting requirements. Legal Compliance Continuous assistance on day to day maintenance of the visa/permit, Conclusion The immigration rules in Indonesia is a complex regulatory landscape on its own, but it does not need to be overwhelming for expatriates relocating to Indonesia. Appropriate relocation planning and execution are key because relocation is a cornerstone of ensuring compliance with the immigration rules. At MNP, it is our practice to take comprehensively plan and execute the relocation process; handling both the logistical and legal aspects of your move – ensuring client’s relocation to be seamless and compliant with the local laws and regulations. To read the article in PDF version, click here  

Working Visa Application Platform Has Been Changed The government of Indonesia has made significant efforts to enhance its policies for foreign investors and expatriates, especially with the enactment of the Ministry of Law and Human Rights Regulation of the Republic of Indonesia No. 11 of 2024 concerning the Amendment of Ministry of Law and Human Rights Regulation No. 22 of 2023 on Visa and Stay Permit (“2024 Amendment”). The meticulous adjustments made to visa types, requirements, and validity periods underscore a comprehensive approach aimed at meeting the diverse needs of stakeholders. The 2024 Amendment demonstrates Indonesia's dedication to establishing a more efficient, transparent, and inviting environment for foreign investors and expatriates. These adjustments not only enhance conditions for international visitors but also contribute to Indonesia's broader economic and social development objectives. The latest update on the working visa procedure was recently changed through the Circular Letter of the Ministry of Law and Human Rights of the Republic of Indonesia through the Directorate General Immigration No. IMI.2-GR.01.01-659, dated 18 July 2024, concerning the Termination of Sending Notifications to the Visa Application Version 2 (“Circular Letter”). Effective from 22 July 2024, the process for working visa applications will transition from the previous platform at https://tka-online.kemnaker.go.id/ to the new e-visa application system, accessible at https://evisa.imigrasi.go.id. For the complete announcement, please read the following: Working visa applications should be submitted through the e-visa application at https://evisa.imigrasi.go.id; The corporation or employer of foreign workers (Tenaga Kerja Asing) must complete the work permit at https://tka-online.kemnaker.go.id; The company's or legal entity's valid Tax Identification Number (Nomor Pokok Wajib Pajak, “NPWP”) is required; Fill in the working visa application requirements; and Updates to the company's or legal entity's NPWP on the guarantor's account can be submitted through the Customer Service Visa desk at the Directorate General Immigration Office. The significant change is that the application process for a working visa will now be handled exclusively by the Ministry of Law and Human Rights through the Directorate General Immigration, whereas previously, it was managed through the TKA-Online platform under the Ministry of Manpower. This separation ensures that the Expatriate Utilization Plan (Rencana Penggunaan Tenaga Kerja Asing) continues to be processed via TKA-Online, preventing confusion by keeping these procedures distinct under their respective ministries. Important Note Applications for working visa submitted before 22 July 2024, through the TKA-Online platform will continue to be processed under the previous work visa issuance mechanism (C312 index). To read the article in PDF version, please click here.  

Indonesia Data Protection Regulatory Landscape Key Highlights – The Present & Future In 2022, Indonesia formalize its standing in regards to the personal data protection in Indonesia by enacting Law No. 27 of 2022 governing the Personal Data Protection (“PDP Law”). PDP Law is largely inspired by EU General Data Protection Regulation (“GDPR”). The PDP Law is designed as the comprehensive regulatory framework regulating personal/sensitive data collection, processing, transfer, sharing, both by public entity (e.g., governmental authority) and private entity (e.g., businesses). The PDP Law is due to fully come into effect by 17 October 2024 being the end of its 2 years transition period. Although PDP Law is designed as the main regulatory framework, the data protection regulatory landscape in Indonesia itself must be seen as dimensional rather than a linear landscape as the sectoral provisions is in play alongside the PDP Law. For example, the health laws in Indonesia would govern the treatment of data involving someone’s age or medical condition or financial services related regulations in Indonesia would govern the treatment of transaction data e.g., debtor personal data, or someone’s credit score. The Present   General principles  Under the PDP Law, personal data processing includes the following activities. It must be noted that “personal data” is broadly defined by the PDP Law as the data regarding identified or could be identified individuals whether as a standalone or aggregated information with others either directly or indirectly through the electronic system or other system. Acquisition and pooling; Management and analysis; Storage; Revision and renewal; Display, announcement, transfer, publication, or disclosure; and/or Deletion or destruction. The personal data processing shall subject to the following principles: The acquisition of personal data must be done under a limited and specific purpose, transparent, and as per the relevant legal requirements; The processing of personal data must be done as per the acquisition purpose; The processing of personal data must also be done by taking into account the rights of the data owner; The processing of personal data must be done accurately, complete, not misleading, up to date, and can be held liable; The personal data processing is performed in consideration of the personal data security from unauthorised access, invalid disclosure, invalid correction, unlawful use, unlawful damage, and/or loss of personal data; Within the processing of the personal data, there must be a notice of purpose and processing activities, including if any failure occurs in relation to the personal data protection; Personal data must be destroyed and/or erased by the expiry of the retention period or as per the request of the individual who owns the personal data, except when determined otherwise by the laws and regulations; and Personal data processing is performed in a responsible way and can be clearly proven. Scope of application  PDP Law applies to any entities within the territory of Indonesia, and outside of Indonesia which could carry a legal impact within the territory of Indonesia/where the personal data is possessed by Indonesian although such person is outside of the Indonesian territory. Only processing of personal data by individuals within non-commercial activities/private activities is excluded from the application of PDP Law. Contractual arrangement needed  Similar to GDPR, PDP Law requires certain contractual arrangement to be in place where the processing of personal data involves 2 or more data processors. The contractual arrangement must include, at least, purpose, responsibilities and liabilities, and roles of each processor. Further, any individual rights over the personal can be waived on the basis of the national security or government interest. Enforcement agencies  The function of personal data protection must be carried out by an officer appointed by the controller and the processor of the personal data. Under GDPR, this office is known as DPO or data protection officer. Essentially, DPO under the PDP Law would be performing an advisory role to ensure compliance to regulations as well as the communication bridge when any issue in relation to the personal data arises. Under the PDP Law, a PDP agency will be formed and this agency will be responsible for formulating and stipulating policies and strategies for personal data protection, which will serve as guidelines for personal data subjects, controllers, and processors. Additionally, it will supervise the implementation of personal data protection, enforce administrative law against violations of the PDP Law, and facilitate out-of-court dispute resolution. It must be noted that the PDP agency will be reporting to the President rather than to the House of Representative. Further guidance in relation to DPO or the government agency will be included under the implementing regulation (see future state below). Sanction  Non-compliance could lead to sanctions ranging from written warning, cease of processing activities, order of removal of data, or monetary fine. The monetary find shall not be higher than 2% of the annual revenue in relation to the violation. The Future – overview of the implementing regulation draft (“RPP”)  The implementing regulations of the PDP Law was expected to be promulgated in 2024 as the RPP was circulated for public comments in 2023. The RPP, from its drafting, appears to focus on the governance of the data controller and/or data processor; the RPP appears to impose various degree of reporting and governance policy to ensure the protection of personal data and risk-based approach backed by sufficient mitigation actions. Data owner’s explicit consent/notice to the data owner   Required in case of: 2 or more processors are involved in the data processing. Disclosure of purpose. Failure in protecting the personal data. In case of visual data processing facility being implemented, clear notice must be in place. Merger, acquisition, or consolidation – prior to any of these events. It must be noted that without consent from the data owner, the data controller must not refuse the data owner’s request to obtain services or goods. Similar to GDPR, minor’s data must be validated by its guardian and consent to process minor’s data must also be granted by the guardian. Enforcement agencies  DPO must be appointed by the data controller and DPO’s contact must be informed to the personal data owner. DPO is positioned as an independent task force within the organization. Duties of the DPO, in general: Provide the necessary advice to the controller/processor. Under the RPP, these advisory works must be documented by the DPO. Comment or respond to any questions from the data owner. Supervise and ensure the processor/controller compliance to laws and regulations. Coordinate and bridge any issues in relation the data processing. RPP appears to allow DPO to take a risk-based approach in providing the advice in relation to the data processing. The Ministry of Communications and Informatics (“MOCI”) is in the process of setting up the PDP agency. The MOCI has allocated funds from the 2024 State Budget for the establishment of the PDP agency and is currently proposing an initiative permit (Izin Prakarsa) to the President. Closing note   PDP Law and the RPP show the level of importance of data protection in the eyes of Indonesian government. Hence, for businesses, it becomes pivotal to look closer into its collection of (particularly) customers’ data and the processing involved. Not only the process built but also the relevant contractual arrangements within the process itself. Training for DPO would also be necessary to ensure that the DPO carries out its duties as per the expectation of the regulations. To read the article in PDF version,  click here.  

Murzal & Partners (MNP) is pleased to announce the signing of a strategic Memorandum of Understanding (MoU) with the Ministry of Manpower of the Republic of Indonesia, signaling a pivotal step forward in the joint effort to support entrepreneurship and modernize regulatory frameworks in alignment with Indonesia’s evolving economic ambitions. The MoU, signed on 30 April 2025, mandates MNP to assist in two key areas: (i) providing legal support and training for emerging entrepreneurs across Indonesia, and (ii) contributing legal insights during regulatory policy development discussions hosted by the Ministry. This collaboration reinforces the government’s commitment to fostering an inclusive, business-friendly ecosystem — while recognizing the increasingly sophisticated needs of both local and international investors. A Proactive Government Response to Market Momentum The Ministry’s initiative comes in direct response to Indonesia’s strong and sustained economic performance, underscored by consistent GDP growth and a rising influx of domestic and foreign investment. From digital innovation and renewable energy to manufacturing and infrastructure, Indonesia is rapidly becoming one of Southeast Asia’s most attractive investment destinations. Recognizing this momentum, the Ministry of Manpower is proactively working to reshape the regulatory landscape to ensure it remains agile, transparent, and conducive to long-term economic growth. The MoU with MNP serves as a cornerstone of this approach — and a signal to the market that Indonesia is serious about aligning regulation with business realities. “This MoU reflects not only the Ministry’s forward-looking policy stance, but also Indonesia’s recognition of the vital role the legal profession plays in shaping sustainable economic development,” said Jufrian Murzal, MNP’s Managing Partner. “We’re honoured to partner with the Ministry at such a critical time and contribute directly to both policy dialogue and entrepreneurial empowerment.” From Agreement to Action: Execution Phase Underway With the MoU now formalized, both MNP and the Ministry have swiftly shifted their focus to the execution of commitments outlined in the agreement. MNP’s legal experts are currently working closely with Ministry officials to design and deliver targeted training programs for aspiring entrepreneurs, particularly in areas of regulatory compliance, licensing, employment law, and corporate governance. At the same time, MNP has begun contributing to working groups and regulatory roundtables, offering strategic legal analysis and industry-informed perspectives to help shape frameworks that are responsive to the needs of businesses while upholding public interest. Bridging Business and Nation-Building This engagement reflects more than just legal cooperation — it is an embodiment of MNP’s deep-rooted belief that law firms have a responsibility to contribute to nation-building, not just commercial success. “For us, this isn’t just about supporting individual entrepreneurs or advising on regulations,” added Arip Sapta, Senior Associate at MNP. “It’s about being a long-term partner in Indonesia’s journey — ensuring that legal infrastructure evolves in a way that is inclusive, strategic, and aligned with the country’s development goals.” MNP has long positioned itself as a trusted advisor to businesses navigating Indonesia’s regulatory terrain. With this MoU, the firm demonstrates its broader commitment to contributing directly to Indonesia’s national progress — acting as a bridge between public policy, legal certainty, and private sector innovation. Looking Ahead As Indonesia continues to rise on the global economic stage, forward-thinking regulatory reform and entrepreneurial resilience will be essential pillars of growth. Murzal & Partners is proud to stand at the forefront of these efforts, working hand-in-hand with the Ministry of Manpower to lay a strong legal and regulatory foundation for the future. About Murzal & Partners (MNP) Murzal & Partners (MNP) is a trusted Indonesian law firm specializing in corporate and commercial transactions, foreign investment, business licensing, capital markets, restructuring, and immigration. Backed by a team of dynamic and industry-savvy lawyers, we provide practical legal solutions tailored to Indonesia’s evolving regulatory landscape. With a strong focus on corporate advisory, litigation, and immigration, we help clients navigate the country’s unique legal and business environment. MNP is also ISO 27001:2013 certified, ensuring the highest standards in client confidentiality and information security. For more information about the firm and to make an inquiry about our legal services, drop an email to [email protected] or visit www.murzallawfirm.com.

Murzal & Partners (MNP), a preeminent Indonesian law firm distinguished for its expertise in immigration law, corporate affairs, and commercial transactions, proudly announces the opening of its new office on Sunset Road, Bali. This expansion marks a significant milestone following a year of exceptional accomplishments, including recognition from Legal500 and the ALB Indonesia Law Awards 2024. Guided by a commitment to delivering bespoke legal solutions, MNP has earned a reputation for its innovative and strategic approach. The firm’s core competencies span general corporate matters, foreign direct investment, commercial transactions, business licensing, and immigration services. With a deep understanding of Indonesia’s complex regulatory landscape, MNP offers clients pragmatic solutions tailored to their specific needs. The establishment of the Bali office underscores MNP’s recognition of the island’s flourishing expatriate community and dynamic business environment. This strategic initiative reinforces the firm’s dedication to providing world-class legal services designed to address the multifaceted requirements of expatriates and enterprises in Bali. “Our expansion to Bali is a testament to our unwavering mission to serve as a trusted partner for our clients,” stated Jufrian Murzal, Founder and Managing Partner of MNP. “This significant development, made possible by the enduring trust of our clients, allows us to bring our tailored services closer to their operations. We remain steadfast in our commitment to delivering incisive legal solutions, empowering businesses and individuals to navigate Indonesia’s legal landscape with confidence and clarity.” As a pioneer in the field of immigration law, MNP is adept at addressing the intricate legal requirements of high-profile corporations and individuals. The firm’s comprehensive offerings include visa and work permit applications, as well as tailored advice to support expatriates in establishing and maintaining residency and business activities in Indonesia. In addition to immigration services, MNP provides integrated corporate legal solutions, covering transactional support, regulatory compliance, and business licensing. The firm’s dedication to confidentiality and data security, exemplified by its ISO 27001 certification, underscores its commitment to the highest professional standards. Murzal & Partners welcomes expatriates, entrepreneurs, and fellow legal professionals in Bali to engage with the firm for sophisticated legal counsel and strategic guidance.