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Legal Requirements and Business Regulations in Indonesia: real experience from chats

From real experience

ruleAs of June 1, 2026, all Indonesian companies (PT) must file an annual report to the Ministry of Justice via the SABH/AHU system.
Deadline for the 2025 financial year is June 30, 2026. Non-compliance results in written warnings and potential suspension of access to the AHU system, preventing changes to company structure or directors. Requirements include financial statements, activity reports, CSR reports (resource sector), supervisory reports, and director/commissioner salary data.
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riskWorking as a self-employed foreigner (e.g., nail technician, tattoo artist, beautician) without a proper corporate KITAS and working permit (IMTA) is strictly illegal in Indonesia.
"Protection fees" paid to locals do not protect from official immigration raids, especially those initiated from Jakarta. Penalties include deportation, blacklisting, and heavy fines (up to 100 million IDR to recover seized passports).
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ruleIn May 2026, Indonesian authorities are scheduled to conduct administrative field audits of PT PMA (foreign-owned) companies in Bali.
The audit targets corporate data verification, including company addresses, exact business activities, financial turnovers, and physical investments. Businesses must ensure that all corporate documentation, active licenses, and registered locations exactly match their actual day-to-day operations to avoid penalties.
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ruleUnder Indonesian law, only Indonesian citizens are legally allowed to work as real estate brokers.
Foreigners acting as intermediaries for property sales are operating in a legal gray area or illegally. AREBI (Indonesian Real Estate Broker Association) is actively pushing for stricter controls and blocking of platforms facilitating non-resident foreign property sales.
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ruleUnder Indonesian Company Law (UU PT No.40/2007), director and commissioner terms are limited to 5 years.
Companies failing to renew board appointments face automatic blocks from the Ministry of Law and Human Rights (AHU). Non-compliance results in personal liability for the director and restricted access to corporate accounts.
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ruleThe Indonesian government is implementing a star-rating system for villas and cracking down on unlicensed short-term rental properties.
Approximately 1,600 non-compliant properties have been identified for potential removal from major booking platforms. Owners are being encouraged to formalize their business status to ensure market transparency.
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serviceLegal assistance is available for construction dispute issues in Bali, including broken deadlines, altered terms, documentation problems, and lack of response after payment.
Lawyers can analyze the situation, assess risks, and guide through negotiations or legal actions. Contact information: TG & WA: 62 817 9677-771.
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ruleIndonesia is transitioning from KBLI 2020 to KBLI 2025. The transition must be completed by June 18, 2026. PT PMA entities must verify their codes, as split codes may trigger new investment requirements or mandate charter amendments.
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