Merger In Indonesia: General Overview

1. The provisions on merger are regulated under Law 40 of 2007 on Limited Liability Company as lastly amended by Law Number 11 of 2020 on the Job Creation (the "Company Law").

2. The Company Law defines merger as legal action carried out by one or more company (ies) to merge itself with other existing company which results the assets and liabilities of the merging companies to be assigned by law to the company which accepts the merger and subsequently the legal entity status of the merging company is terminated by law.

3. In addition, the Company Law further stipulates that after merger the following events will occur at the Effective Date of merger:

(a) the assets and liabilities of the merging companies shall be transferred by operation of law to the company which accepts the merger;