SAFEGUARDING NATIONAL INTERESTS IN CROSS-BORDER MERGERS AND ACQUISITIONS

By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

Cross-border mergers and acquisitions have increasingly become a part of the global economic landscape. Multinational corporations are actively acquiring local entities across various countries, including Indonesia, in pursuit of market expansion, strategic resource access, and technology consolidation. While these transactions offer opportunities for increased investment and industrial efficiency, they also raise serious legal and policy challenges related to national interest protection, regulatory oversight, and economic sovereignty.

 

Legally, Indonesia has several regulations governing merger and acquisition activities, both from a corporate governance and competition law perspective. Law No. 40 of 2007 on Limited Liability Companies provides the fundamental legal framework for mergers, consolidations, and acquisitions. Meanwhile, competition aspects are governed under Law No. 5 of 1999, further detailed in the Business Competition Supervisory Commission (KPPU) Regulation No. 3 of 2023, which outlines criteria and procedures for assessing mergers and acquisitions. In practice, any corporate action that significantly affects market structure must be notified to KPPU if it meets certain asset or sales thresholds. This notification obligation also applies to cross-border transactions that have a domestic market impact.

 

However, current regulations still leave room for improvement. One key concern is the absence of a formal legal mechanism to assess national interest in merger transactions. As foreign entities increasingly acquire Indonesian companies, the government should not merely focus on formal compliance or competition effects, but also on strategic considerations such as control over vital assets, public service relevance, and the long-term impact on domestic players. Countries like Australia, Canada, and the United States have already implemented foreign investment screening mechanisms to ensure that foreign investments do not jeopardize public interest or national security. Indonesia should begin moving in this direction.

 

Regulatory fragmentation across sectors also presents a considerable challenge. Cross-border mergers involving strategic sectors such as banking, energy, telecommunications, or mining require additional approvals from sectoral regulators, including the Financial Services Authority (OJK) and relevant ministries. Coordination among these institutions is essential. Conflicting regulations, overlapping procedures, and prolonged approval timelines can create legal uncertainty for investors. While Indonesia has introduced the Online Single Submission (OSS) system to simplify processes, its effective implementation—particularly in cross-border contexts—still requires strengthening.

 

Another emerging issue in cross-border M&A is data privacy and confidentiality. In the acquisition of digital, technology, or data-intensive companies, legal considerations now go beyond corporate ownership and extend into data governance. Law No. 27 of 2022 on Personal Data Protection imposes obligations on data controllers to ensure that any cross-border data transfer or processing adheres to principles of transparency, fairness, and maximum protection of individual rights. Therefore, mergers are not merely about business integration, but also involve the legal transfer of accountability over data previously held by the acquired entity.

 

The role of KPPU as the competition authority is critical in maintaining a fair post-merger market structure. Cross-border mergers by dominant global players can lead to oligopolistic markets, reducing the space for local competitors. KPPU should be empowered not only to conduct post-transaction reviews but also to conduct pre-transaction assessments, as is common practice in many jurisdictions. This proactive approach would help prevent anti-competitive consequences from the outset and provide legal certainty for all stakeholders.

 

From a broader policy perspective, cross-border mergers and acquisitions should not be viewed merely as corporate matters, but as a component of national strategy in safeguarding economic sovereignty. The state must play a balancing role—welcoming foreign investment while ensuring that such transactions yield long-term benefits for national development, domestic industrial growth, and meaningful knowledge transfer.

 

With stronger legal governance and more cohesive institutional coordination, Indonesia can manage cross-border M&A more wisely. Legal certainty, coupled with the protection of national interests, must serve as the foundation to ensure that global corporate transactions do not erode our economic autonomy, but instead contribute to strengthening Indonesia’s position in the global economy.

K&Co - September 26, 2025

BASE FUEL COLLABORATION : A STRATEGIC MOVE TO ADDRESS THE FUEL SUPPLY CRISIS

By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

In recent weeks, the public has once again faced a fuel shortage, particularly at gas stations operated by private companies. Long queues and empty stock have disrupted economic activities, logistics distribution, and daily mobility. This situation raises concerns about the vulnerability of the national energy distribution system, which should be resilient in the face of global pressures and domestic market dynamics.

 

In response to this condition, the Ministry of Energy and Mineral Resources (ESDM) has taken a strategic step by allowing private companies to utilize Pertamina’s base fuel cargo, which has arrived in Jakarta. This initiative represents a measured government intervention that is not only curative but also opens up new opportunities for collaboration between state-owned energy companies and the private sector.

 

Base fuel is a refined fuel product that has not yet been blended with additives or colorants. In other words, it is raw fuel ready to be further formulated according to the octane standards set by government regulations. This is where the flexibility and advantage of this solution come into play. Private gas stations can customize their final product to meet market needs and technical standards without having to import finished fuel—a process often hindered by international price fluctuations, limited quotas, or logistical barriers.

 

The decision to permit the use of base fuel by private entities also signals a new approach in the government’s energy management. Whereas previously state-owned enterprises like Pertamina held a dominant role in the fuel distribution chain, there is now a more open space for private actors to actively participate—under strict supervision and with good governance principles. This shift demonstrates that the government is no longer positioning itself as the sole controller of energy distribution, but rather as a facilitator enabling strategic collaboration among stakeholders in the energy ecosystem.

 

Pertamina Patra Niaga, in its statement, affirmed its commitment to maintaining product quality through joint surveyor mechanisms and technical verification processes. Additionally, Pertamina is opening the door for individual discussions with private businesses to accurately forecast demand and develop distribution patterns. This is critical, as smooth fuel distribution relies heavily on accurate demand data and well-planned logistics.

 

However, despite this initiative being commendable, several challenges must be addressed collectively. First, not all private businesses are immediately ready to access this base fuel. Some companies still need to coordinate with their overseas headquarters, especially regarding legal, contractual, and technical aspects. Second, it is essential to ensure that the process of blending additives and final formulation does not violate quality standards that could harm consumer vehicles or the environment. This is where government oversight becomes crucial.

 

Transparency in pricing must also be a priority. While opening up fuel supply is necessary, it should not lead to price disparities that burden consumers, especially in regions that heavily rely on private gas stations. If non-subsidized fuel prices soar without regulation, the economic impact of the shortage will still be felt—even if physical stock is available.

 

Nonetheless, this collaboration marks a significant step toward a more resilient and adaptive energy system. The government is demonstrating a willingness to move beyond overly bureaucratic models, while Pertamina is showing that a state-owned company can also play an inclusive stabilizing role. On the other hand, private businesses are expected not to be driven solely by commercial interests, but also to share responsibility in safeguarding national energy security.

 

Fuel availability is an essential part of energy sovereignty. Therefore, the success of this collaboration will be a critical determinant in shaping future energy policy. If implemented consistently, transparently, and with broad participation, this initiative could serve as an important precedent for redesigning a more modern and efficient national energy distribution system.

K&Co - September 26, 2025

QUALITY AD HOC JUDGES CRUCIAL FOR FIGHTING CORRUPTION

By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

The Supreme Court of Indonesia (Mahkamah Agung) through its Selection Committee has launched the 23rd stage of selecting Ad Hoc Judges for Corruption Crimes (Tipikor) in 2025. On Wednesday, September 24, 2025, 526 candidates took the written exam simultaneously at High Courts across the country. This rigorous selection process aims to fill 12 Ad Hoc Judge positions at both first-instance and appellate courts. This initiative reflects the judiciary’s commitment to strengthening the quality and integrity of law enforcers in combating corruption — a chronic disease afflicting the nation.

 

Corruption is not merely a legal violation but a parasite that erodes the foundations of national life. It hampers economic development, widens social inequality, and undermines public trust in state institutions. Therefore, the role of independent and competent Ad Hoc Judges at the Corruption Courts is critical to preserving the dignity of law enforcement. A stringent and transparent selection process is essential to ensure that the chosen judges possess not only deep knowledge of criminal and corruption law but also high integrity and courage to resist various pressures.

 

The participation of 526 candidates out of 679 applicants shows a high level of enthusiasm from legal professionals and other experts to contribute to the anti-corruption effort. Yet, with only 12 seats available, the competition is fierce and selective. This selectivity is crucial to ensure that the Supreme Court appoints judges who are legally proficient, morally upright, and able to withstand external influences.

 

The written test is only the first stage, assessing the candidates’ technical skills. The subsequent stages — public scrutiny, profile assessments, and interviews with Supreme Court leadership — are essential to evaluate the candidates’ character, track record, and ability to understand the social and ethical dimensions of law enforcement. Particularly, public scrutiny allows society and experts to provide critical feedback about candidates, promoting transparency and accountability.

 

With this multi-layered selection process, the Supreme Court aims to appoint Ad Hoc Judges who meet academic standards and possess the moral integrity and fortitude necessary to uphold justice uncompromisingly. Corruption judges must be fearless and resolute in fighting corruption, often involving powerful actors with extensive networks and political clout.

 

However, the greatest challenge is not merely the selection itself. Once appointed, these judges must operate within a judiciary system sometimes vulnerable to interference, political pressure, and collusion. Therefore, the selection must be accompanied by institutional commitments to protect and fully support these judges in carrying out their duties.

 

Furthermore, the public deserves open and transparent information regarding the entire selection process. Inconsistent data or a lack of public knowledge can breed skepticism and distrust towards the judiciary. By providing accessible and clear information, the Supreme Court can strengthen its legitimacy and public confidence in law enforcement.

 

The selection of Ad Hoc Judges for Corruption Courts is not merely an administrative routine but a strategic moment to solidify the foundation of Indonesia’s anti-corruption judiciary. Amid the increasingly complex nature of corruption, the need for judges with integrity and competence is more urgent than ever. Effective law enforcement starts with selecting the right law enforcers.

 

If this process is conducted earnestly, transparently, and free from external influences, the results will have a significant positive impact on strengthening the fight against corruption. Conversely, if the process becomes a mere formality without substance, the opportunity to improve the corruption judiciary system will continue to be hindered.

 

Therefore, the public must actively oversee this selection process and urge the Supreme Court to prioritize transparency and accountability. Together, we can foster the emergence of courageous, capable, and integrity-driven Ad Hoc Judges — true guardians of justice for Indonesia.

K&Co - September 26, 2025

GOVERNMENT, PERTAMINA, AND PRIVATE SECTOR COLLABORATION IS KEY TO OVERCOMING FUEL SHORTAGES

By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

The recent fuel shortage at private gas stations across Indonesia since mid-August 2025 is a strong signal that the country's energy management still requires serious reform—particularly in the areas of distribution and import quota allocation. In this context, the swift action by the Ministry of Energy and Mineral Resources (ESDM) and Pertamina to coordinate with private sector players deserves appreciation as a prompt response to an urgent issue. However, more than just patching up supply gaps, what’s truly essential is preventing such incidents from recurring.

 

In a healthy and competitive energy market, fuel distribution should not rely too heavily on a single entity—especially when import quota policies fail to keep up with actual consumption trends and the growing number of non-Pertamina gas stations. Structural weaknesses in the energy distribution system, such as centralization and lack of flexibility, must be addressed if Indonesia is to build a resilient energy future.

 

The government's decision to allow an additional 10% fuel import quota for private companies is a commendable short-term solution. However, this policy should also serve as a catalyst for deeper discussions on long-term energy planning that is more inclusive and data-driven. Companies like Shell, BP-AKR, Vivo, and ExxonMobil must be given a seat at the table when it comes to planning and forecasting national energy needs.

 

One noteworthy agreement is the adoption of base fuel (pure fuel without additives), which allows each company to add its own additives at their respective storage facilities. This business-to-business (B2B) arrangement is a pragmatic solution that helps reduce logistical burdens and increases operational flexibility. Nevertheless, strict quality control through independent joint surveyors remains essential to ensure the fuel delivered to consumers meets established standards.

 

Equally important is the issue of price transparency and fair distribution commitments. Minister of Energy and Mineral Resources, Bahlil Lahadalia, stated that there is an agreement on “fair and transparent pricing” along with an “open book” policy. While this is a positive move on paper, it will only be meaningful if implemented with integrity and monitored by independent oversight bodies.

 

Moving forward, the government must strengthen import quota monitoring systems, improve inter-agency coordination, and create more space for private sector participation in the national energy supply chain. The current fuel supply crisis is a stark reminder that transparency and collaboration—not monopoly—are the true foundations of energy resilience in Indonesia.

 

Only through open, accountable, and sustained cooperation between the government, state-owned enterprises like Pertamina, and the private sector can Indonesia build a robust and inclusive energy system capable of meeting future challenges.

K&Co - September 26, 2025

INDONESIA'S POLICY PARALYSIS IN THE FACE OF CURRENCY PRESSURE

 By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

The continued weakening of the Indonesian rupiah against the US dollar in recent days is once again raising concerns. On Wednesday, September 24, 2025, the rupiah opened at Rp16,670 per US dollar, following a 0.36 percent drop the previous day. This marks its weakest level since April 2025. Yet, this depreciation comes at a time when the US dollar index (DXY) is itself weakening. This divergence demands a deeper look: why is the rupiah under pressure when the global currency environment is not particularly unfavorable?

 

The answer lies not merely in external dynamics but in the reality of domestic policy that has yet to respond adequately to long-standing structural challenges. The weakness of the rupiah reflects more than just short-term volatility—it underscores a policy landscape that remains reactive rather than proactive, and hesitant rather than bold.

 

Government officials continue to project a message of macroeconomic stability and solid growth. However, the financial markets remain unconvinced. The gap between policy narrative and ground-level execution is increasingly evident. Persistent current account deficits, reliance on imported inputs, and the limited competitiveness of Indonesian exports are fundamental weaknesses that have not been addressed in a meaningful or coordinated manner.

 

Moreover, the response from policymakers has largely been focused on managing perceptions and stabilizing short-term indicators, rather than implementing structural reforms. Fiscal incentives have often lacked strategic direction, with few targeted efforts to drive high-value exports or industrial transformation. Public investment in innovation, research, and technology—a vital component for long-term competitiveness—remains minimal compared to peer economies in the region.

 

On the monetary side, Bank Indonesia has acted with relative discipline in defending the rupiah through interest rate policy and market interventions. But without sufficient support from fiscal and industrial policy, its tools are limited in effectiveness. We cannot expect a central bank to hold the line indefinitely when broader economic policy is not aligned to support currency stability through stronger fundamentals.

 

Initiatives like downstream industrialization are promising but face real obstacles on the ground—regulatory uncertainty, infrastructure bottlenecks, and a workforce that lacks the necessary skills. Meanwhile, many other emerging economies have begun shifting toward technology-driven export models and service sector competitiveness. Indonesia, by contrast, still depends heavily on raw or semi-processed commodity exports. This reflects the absence of a clear, long-term economic transformation blueprint with measurable targets and consistent execution.

 

We must acknowledge that the rupiah's depreciation is not simply a function of global uncertainty. When other emerging market currencies begin to stabilize or rebound, yet the rupiah continues to slide, the issue is domestic. It reflects structural fragility and policy indecision. This should serve as a wake-up call for the government to recalibrate its approach—less focus on optics, and more focus on substance.

 

Rather than relying on superficial measures or reassuring rhetoric, the government needs to show concrete steps toward strengthening structural resilience. Industrial reform, regulatory clarity, and long-term investment in human capital must be top priorities. Without these, any short-term stabilization will be just that—short-lived.

 

This moment presents the government with a choice: continue patching over structural cracks with temporary fixes, or treat this currency pressure as a turning point for serious economic overhaul. If the second path is not taken decisively, the rupiah will not only remain vulnerable but may also lose the market’s trust—something far more difficult to regain than a few hundred rupiah on the exchange rate.

K&Co - September 23, 2025

INDONESIA’S GREEN AMBITIONS UNDER PRABOWO : BETWEEN GLOBAL PLEDGES AND DOMESTIC CHALLENGES

By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

President Prabowo Subianto’s address at the 80th United Nations General Assembly delivered a bold message: Indonesia is ready to take real steps—beyond slogans—in confronting climate change. Highlighting the country’s status as the world’s largest archipelagic nation, he pointed to the annual five-centimeter rise in sea levels along Jakarta’s northern coast as a tangible threat, justifying the construction of a massive 480-kilometer sea wall projected to take 20 years to complete.

 

Prabowo’s speech outlined a broad vision: accelerating the transition to renewable energy, committing to the Paris Agreement, reaching net-zero emissions by 2060 (or sooner), reforesting over 12 million hectares of degraded land, and empowering local communities with green jobs. He stated that starting next year, most of Indonesia’s new power generation capacity will come from renewable sources. Moreover, he promised that Indonesia would become a global solution hub for food, energy, and water security.

 

These are compelling goals and they place Indonesia in a forward-looking position within international climate diplomacy. However, as with any grand vision presented on the global stage, the true measure lies in how those commitments are implemented at home. In this respect, a growing gap between ambition and execution threatens to undermine the credibility of Indonesia’s pledges.

 

Indonesia’s legal and policy frameworks on climate and energy have yet to demonstrate the level of integration and urgency required. While regulatory instruments such as Presidential Regulation No. 112/2022 on renewable energy provide direction, implementation has been plagued by institutional fragmentation, slow permitting processes, and a lack of clear incentives for investors. The dominance of the state-owned utility PLN and the absence of market-based pricing models for renewable energy continue to be significant deterrents to private investment.

 

Forest governance faces similar challenges. Past reforestation and peatland restoration initiatives have suffered from overlapping land claims, weak law enforcement, and limited accountability mechanisms. Prabowo’s pledge to reforest 12 million hectares is a positive step, but without structural reforms in land use policy, agrarian conflict resolution, and monitoring systems, it risks being another target that looks good on paper but lacks impact in the field.

 

Moreover, while Prabowo frames climate action as a route to poverty reduction and national resilience, his administration inherits unresolved weaknesses in Indonesia’s food system. Agricultural productivity remains stagnant, and reliance on food imports continues despite repeated rhetoric of food sovereignty. Large-scale land conversion for infrastructure and industry further reduces the availability of arable land. In this context, food security cannot be decoupled from climate and energy policy. A coherent, cross-sectoral strategy is urgently needed.

 

From a legal standpoint, Indonesia also lacks a centralized climate institution with real enforcement authority. Climate-related policies remain scattered across ministries, often resulting in contradictory or redundant initiatives. A new institutional model—such as a presidentially mandated climate council with legal authority and oversight capacity—may be necessary to streamline implementation, monitor progress, and ensure transparency. Legal instruments must also be strengthened to improve data disclosure, guarantee community participation, and enhance compliance.

 

Execution also demands political will, bureaucratic coordination, and fiscal prioritization. Many of the goals Prabowo laid out are multi-decade projects that require long-term planning across successive administrations. This raises questions about governance continuity, especially in a system where program fragmentation and political cycles often disrupt momentum. It is essential that Indonesia’s climate strategy is institutionalized through robust laws and not left to the discretion of changing leadership.

 

The international community may welcome Indonesia’s renewed commitment, but the domestic audience—especially those in vulnerable sectors—remains more concerned with delivery than diplomacy. Real progress will be judged not by applause at the UN, but by tangible improvements in environmental quality, economic opportunity, and institutional performance.

 

President Prabowo’s speech was rhetorically effective and globally attuned. But if Indonesia is to fulfill its promise of becoming a hub for food, energy, and water security, it must quickly move from vision to execution. The challenges are legal, structural, and political. Bridging the gap between what is said and what is done will define the legacy of this administration, not only in climate diplomacy, but in the real lives of its citizens.

K&Co - September 23, 2025

RUPIAH WEAKENS: A STRUCTURAL WAKE-UP CALL, NOT JUST A GLOBAL SIGNAL

By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

The Indonesian rupiah has once again come under pressure. On Wednesday, September 24, 2025, the rupiah opened lower at Rp16,670 per US dollar, following a 0.36 percent decline the previous day. This marks its weakest level since April 2025 and signals a critical moment for assessing the country's economic resilience.

 

Ironically, this depreciation occurred at a time when the US dollar index (DXY) has shown signs of weakening for two consecutive days. With global markets pricing in the possibility of two more rate cuts by the US Federal Reserve before the end of the year, risk assets in emerging markets should have had room to rebound. Yet the rupiah has failed to capitalize on this shift—an indication that deeper, structural issues may be at play.

 

Indeed, while global monetary uncertainty continues to drive volatility, the underlying causes of the rupiah's weakness appear more complex. Fed Chair Jerome Powell has maintained a cautious tone, emphasizing the need to balance persistent inflation with signs of labor market softening. He has warned against premature easing, which could reignite inflation, while acknowledging that excessive tightening could damage employment prospects. This policy ambiguity has led to market hesitance, especially toward emerging markets perceived as vulnerable.

 

For Indonesia, this hesitancy reflects not only external dynamics but also domestic concerns. The current account deficit has widened over the past two quarters, pointing to persistent reliance on external financing. Export performance remains weak, weighed down by falling global commodity prices. Meanwhile, fiscal uncertainty toward the end of the budget year has raised investor concerns over macroeconomic management.

 

The implications are far-reaching. Currency depreciation increases the risk of imported inflation, especially in energy and food sectors. Although Bank Indonesia has so far managed to keep inflation within target, prolonged rupiah weakness could force it to maintain high interest rates for longer, putting pressure on business lending and investment. Additionally, government and corporate debt denominated in US dollars becomes more expensive, straining fiscal space and liquidity—especially for private firms lacking sufficient hedging strategies.

 

However, this moment of pressure can also be viewed as a necessary corrective. Indonesia cannot continue to depend on global tailwinds—such as commodity booms or capital inflows—to stabilize its currency. Economic resilience must be built from within. Structural reform is essential: boosting value-added exports, improving fiscal efficiency, and ensuring regulatory certainty are all urgent priorities. Moreover, economic policy credibility must be maintained to strengthen investor confidence during periods of global turbulence.

 

Bank Indonesia has already exercised disciplined monetary and macroprudential policy. But the burden of defending the rupiah cannot rest solely on the central bank. A coordinated policy response—fiscal, industrial, and trade-related—is critical. The recent depreciation should serve not as a crisis, but as a reflection of what still needs to be done to build a more competitive and shock-resistant economy.

 

This is not the first time the rupiah has weakened, and it likely won't be the last. But if this episode is treated merely as a symptom of global volatility, we risk ignoring the deeper issues. On the other hand, if seen as an opportunity for structural correction, it could lay the foundation for a more sustainable and self-reliant economic future.

K&Co - September 24, 2025.

PRESS RELEASE : KUSNANDAR & CO. IN ASSOCIATION WITH WATSON & BAND

Kusnandar & Co. Establishes Joint Operation with Watson & Band Law Offices (Huacheng Law Firm)

Shanghai, September 17, 2025 — Kusnandar & Co. and China’s Watson & Band Law Offices (Huacheng Law Firm) officially launched their joint operation with a signing and unveiling ceremony held at Watson & Band’s Shanghai headquarters. Senior representatives from both firms attended the event, marking a new stage of cooperation in cross-border legal services between China and Indonesia.

At the ceremony, Mr. Arno D. Rizaldi Setiawan (Guo Anyuan), Managing Partner of Kusnandar & Co., delivered a speech. He expressed his gratitude for Watson & Band’s warm reception and emphasized the significance of this partnership in meeting the growing demand of Chinese enterprises investing in Indonesia. He further noted that the joint operation would also create new opportunities for Indonesian companies to expand into China and the broader Southeast Asian market.

With more than 45 years of experience in the Indonesian market, Kusnandar & Co. is recognized as one of the country’s top ten law firms, specializing in cross-border mergers and acquisitions, project financing, and dispute resolution. Established over 30 years ago, Watson & Band Law Offices (Huacheng Law Firm) has grown into one of China’s leading full-service law firms, with a strong reputation in cross-border investment and intellectual property. By combining their strengths and resources, the two firms will work together to provide clients with one-stop legal solutions, supporting enterprises in achieving secure and sustainable growth across the region.

Kusnandar & Co. 与 Watson & Band Law Offices（华诚律师事务所）建立联营合作关系

上海，2025年9月17日 —— Kusnandar & Co. 与中国 Watson & Band（华诚律师事务所） 在上海 Watson & Band 总部举行了联营合作签约及揭牌仪式，正式启动双方的战略合作。本次活动有两所律所的高层代表出席，标志着双方在中印尼跨境法律服务领域的合作进入新阶段。

在仪式上，Kusnandar & Co. 的管理合伙人 Arno D. Rizaldi Setiawan（郭安源） 律师发表致辞。他对 Watson & Band（华诚律师事务所） 的热情接待表示感谢，并强调此次合作对于满足日益增长的中国企业赴印尼投资需求具有重要意义。他同时指出，该联营合作也将为印尼企业拓展中国及东南亚市场创造新的机遇。

拥有逾 45 年 印尼市场经验的 Kusnandar & Co. 被公认为印尼十大律所之一，专长于跨境并购、项目融资及争议解决。而成立逾 30 年 的 Watson & Band Law Offices（华诚律师事务所） 已发展成为中国领先的综合性律师事务所之一，在跨境投资及知识产权领域具有广泛影响力。双方将通过此次合作整合优势与资源，携手为客户提供一站式法律解决方案，助力企业在区域内实现安全与可持续发展。

By : K&Co - September 23, 2025

THE DIRECTION OF INDONESIAN POLITICS : MAINTAINING BALANCE AMID SOCIAL AND GLOBAL DYNAMICS

 By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA
 

Indonesia’s political trajectory today stands at a crucial crossroads that will shape the nation’s future. Following a series of elections and the ongoing consolidation of the government, this moment must be wisely leveraged to strengthen the foundations of democracy while accelerating national development.
 
One of the most notable aspects is the government’s effort to maintain political stability. The administration, together with the parliament, is pushing forward strategic programs aimed at improving public welfare and accelerating economic growth. Amid global challenges—including economic uncertainties and geopolitical tensions in the region—political stability is a vital prerequisite to ensure Indonesia does not lose momentum in its progress.
 
However, this political stability comes with risks. Identity politics continues to play a significant role in the national political arena. The use of religious, ethnic, and social group identities as political mobilization tools threatens the unity and harmony of the nation. This dynamic requires vigilance and political maturity from all sectors of society, especially political elites who hold substantial influence in shaping public opinion. Inclusive political narratives that emphasize diversity must be continuously promoted so that Indonesia’s pluralism becomes a unifying strength rather than a source of conflict.
 
In addition, bureaucratic reform and law enforcement remain critical agendas that must be prioritized. Although the government has shown commitment to establishing a clean and efficient administration, challenges such as corruption and bureaucratic sluggishness often remain obstacles. Strengthening law enforcement institutions and transparency is key to ensuring that policies truly benefit the people.
 
Indonesia’s strategic position in Southeast Asia also demands careful and balanced diplomacy. The tensions among major global powers compel Indonesia to act as a mediator, safeguarding sovereignty without getting entangled in geopolitical conflicts. Wise diplomacy will enhance Indonesia’s standing on the world stage while preserving national security.
 
On another front, the role of civil society and the media is vital in overseeing Indonesia’s democratic journey. Enhancing political literacy, broadening public participation, and protecting freedom of expression form the foundation for a healthy democracy. The government and all stakeholders must ensure that the public sphere remains open for constructive and respectful dialogue.
 
Moving forward, Indonesia’s political direction should not only focus on government strength but also strengthen synergy between the government, society, and other democratic institutions. Only with a balanced approach between stability, reform, and social inclusiveness can Indonesia confidently face the challenges of the times.
 
In this context, visionary and integrity-driven national leadership is greatly needed. Leaders who can unify diverse interests and advance a sustainable development agenda will lead Indonesia toward a better future.
 
In short, Indonesia’s political path today must move on a well-calibrated axis—balancing stability, reform, and social inclusivity—so that the country can continue progressing as a democratic, just, and prosperous nation.

K&Co - September 23, 2025

NATIONAL STRATEGY FOR COPYRIGHT AND TRADEMARK PROTECTION

 By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

In today’s fast-paced digital and globalized era, legal protection for copyrights and trademarks has become a crucial key to driving the growth of Indonesia’s creative economy and innovation-based industries. Copyrights and trademarks are not merely legal instruments; they are strategic assets that add economic value and strengthen the competitiveness of domestic products in the global market.

 

Copyright grants exclusive rights to creators over their intellectual works, such as art, music, literature, software, films, and various other creative forms. Meanwhile, trademarks serve as distinct identifiers that differentiate one business’s goods or services from another’s, acting as symbols of trust and quality for consumers. Strong legal protection for both ensures certainty for creators and businesses that their works and products will not be misused by others without permission.

 

However, in practice, violations of copyright and trademark rights remain a serious problem in Indonesia. Pirated music, films, software, and counterfeit brands and products are widespread, causing harm not only to rights holders but also damaging the business ecosystem and consumer trust. This phenomenon is a major obstacle to the growth of the creative industry, which actually holds significant potential to boost the national economy.

 

The Indonesian government has regulated copyright and trademark laws through Law No. 28 of 2014 on Copyright and Law No. 20 of 2016 on Trademarks and Geographical Indications. Yet, enforcement and supervision against infringements must be improved so that deterrent effects are genuinely felt by violators. Additionally, new challenges arise from the proliferation of digital distribution, enabling works and products to be easily shared without authorization. Thus, adaptive regulations and more advanced monitoring technology are necessary.

 

Beyond enforcement, raising public and business awareness about the importance of copyright and trademark protection is equally vital. Many small businesses and creators still lack full understanding of their rights or how to register and protect their works or brands. Therefore, massive and structured education and socialization programs should be a priority. With proper knowledge, entrepreneurs can proactively safeguard their intellectual assets and leverage legal protections as valuable business capital.

 

Collaboration among stakeholders—including government, industry players, academics, and the broader community—must also be strengthened to create a healthy and sustainable innovation ecosystem. The government can provide easier and more affordable registration facilities and reinforce law enforcement agencies. Meanwhile, industry players and creative communities can actively contribute to building a culture that respects original creations and trademarks.

 

Furthermore, strengthening copyright and trademark protection is part of Indonesia’s national strategy to advance a knowledge- and creativity-based economy. Amid intense global competition, countries that effectively protect their innovations and brands are better positioned to attract investment and expand markets. With its rich culture and creativity, Indonesia has great potential to become a global creative economy hub, provided its legal protection system continues to improve in strength and effectiveness.

 

In short, strengthening copyright and trademark laws is not just about protecting creators and businesses; it is about building a robust and competitive creative economy foundation. With adequate regulations, firm law enforcement, and high public awareness, Indonesia can create a conducive environment for innovation and original product development, while enhancing the country’s position on the global stage.

K&Co - September 22, 2025

MAKING INDONESIA’S FISCAL STIMULUS WORK

 By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

Indonesia’s decision to raise the budget deficit target to 2.68 percent of GDP in the 2026 state budget signals commendable fiscal courage amid global economic uncertainty. However, this boldness must be matched by institutional readiness and sound governance to ensure that fiscal stimulus does not go to waste. The experience of social assistance distribution during the Covid-19 pandemic offers a crucial lesson. Numerous beneficiaries missed out or received aid late, revealing persistent bureaucratic capacity gaps and weak inter-agency coordination that hamper effective and efficient allocation of public resources.

 

These institutional risks cannot be underestimated. Administrative shortcomings risk wasting public funds and widening social inequality. For example, funds intended to empower micro-enterprises and village cooperatives can be drained by corruption or distribution distortions. Thus, bureaucratic reform and digital integration of data systems are critical to guarantee that stimulus funds reach their intended targets.

 

From a medium-term fiscal perspective, increased deficits without accompanying tax reform and spending efficiency pose a threat to Indonesia’s fiscal sustainability. Rising debt burdens could crowd out productive investment and increase debt servicing costs, ultimately dampening purchasing power and slowing economic growth.

 

Macro-policy coordination is also key. Expansive fiscal stimulus must align with monetary policy to maintain inflation and exchange rate stability. Without synergy, risks of runaway inflation and market volatility rise, disproportionately harming the most vulnerable populations.

 

Moreover, transparency and accountability in public budget management are vital to policy success. The public must be assured that every rupiah spent yields positive impact and is managed responsibly. Open communication and participatory oversight involving civil society can strengthen legitimacy and policy effectiveness.

 

Indonesia’s fiscal boldness is a necessary and welcome step in uncertain times. Yet without deep reforms in governance, implementation capacity, and policy coordination, such boldness risks becoming a burden rather than a catalyst for national development. Comprehensive reform must underpin fiscal expansion to ensure it drives inclusive and sustainable growth.

 

Indonesia must not only dare to allocate larger budgets but also have the courage to build systems that ensure those budgets work for the people—not become sources of waste or inequality. Only through this combination of courage and reform can progressive fiscal policy truly deliver a better future for the nation.

K&Co. - September 22, 2025

FOOD SOVEREIGNTY UNDER PRABOWO : BETWEEN AMBITION AND EXECUTION

By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

The Indonesian government’s decision to raise the projected budget deficit to 2.68 percent of GDP in the 2026 state budget marks a deliberate shift toward a more progressive yet disciplined fiscal posture. This move reflects an important transition—from a conservative, risk-averse approach to a more assertive use of fiscal instruments to drive economic recovery and transformation.

 

In the face of a complex global environment—marked by economic slowdown, geopolitical volatility, and persistent energy shocks—Indonesia can no longer rely solely on fiscal prudence. The state budget must serve not just as a stabilizer, but as a strategic driver of structural change. The recent stimulus packages, amounting to over Rp16 trillion, along with the Rp200 trillion allocated to the “Koperasi Merah Putih” program for grassroots cooperative financing, illustrate this intention. These initiatives target underserved sectors, aiming to unlock inclusive growth through accessible, low-interest financing.

 

However, ambition alone does not guarantee success. The impact of such interventions will ultimately depend on the quality of implementation. Weak distribution mechanisms, bureaucratic inefficiencies, and local institutional gaps could distort intended outcomes, leaving communities behind and amplifying inequality. A stimulus that fails to reach its target not only wastes fiscal space, but also erodes public trust in government spending.

 

Meanwhile, efforts to modernize the tax system signal Indonesia’s alignment with evolving global standards. The adoption of a 15 percent global minimum tax on multinational corporations, alongside tighter regulations on digital and crypto transactions, is commendable. These measures aim to broaden the national tax base and secure fair contributions from sectors that have historically operated beyond the reach of conventional taxation. Still, these policies must be supported by stronger tax administration, enhanced digital infrastructure, and improved regulatory enforcement. Without these institutional foundations, the potential for increased revenue could be compromised by loopholes and non-compliance.

 

Monetary-fiscal coordination remains a critical dimension of macroeconomic management. As the government steps up public spending to stimulate domestic demand, Bank Indonesia faces mounting pressure to maintain inflation control and currency stability—particularly in an era of high global interest rates and volatile capital flows. Policy coherence between fiscal expansion and monetary restraint must be carefully calibrated. This requires not only technical coordination, but also a unified strategic vision to sustain macroeconomic resilience.

 

Equally important is transparency. A progressive fiscal agenda cannot succeed without public accountability. Citizens have the right to know not just how much is being spent, but what outcomes are achieved. Transparent budgeting, open-access data platforms, and independent oversight must become the norm, not the exception. Public confidence is a crucial factor in ensuring the legitimacy and effectiveness of fiscal policy—especially when that policy involves a widening deficit.

 

The government’s current fiscal stance signals a readiness to move beyond the short-term goal of economic recovery and toward the longer-term objective of economic transformation. This is a necessary pivot. Yet fiscal courage must be matched by institutional reform. Spending must shift from routine consumption to productivity-enhancing investment: in education, innovation, infrastructure, and the green economy. Budgetary ambition must be backed by governance capacity.

 

What lies ahead is not merely a test of technical soundness, but a test of political will. Will the government stay the course and deliver fiscal reform that empowers rather than pacifies? Will the stimulus be channeled toward real productivity, or will it be captured by inefficiencies and elite interests? These questions are not just fiscal—they are political, and they demand honest answers.

 

The move toward a more active and progressive fiscal policy is a welcome development. But its ultimate value will be measured not by the size of the deficit, but by the quality of its execution and the sustainability of its impact. In this, Indonesia is not just spending more—it is making a statement about the kind of economy it wants to build.

K&Co. - September 22, 2025

 

LEADERSHIP DECISIONS AND THEIR FINANCIAL IMPACT : WHY GOOD POLICY MATTERS

 By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

Financial performance is not solely the product of market conditions, customer demand, or external pressures. Time and again, companies succeed or falter based on the strategic decisions made at the top. Executive-level policies—from expansion plans and hiring strategies to procurement rules and investment directives—can either drive long-term growth or trigger costly setbacks.

 

A company’s leadership sets the tone for how risks are taken, how resources are allocated, and how crises are handled. Poor financial performance often has roots not in external disruptions, but in internal misalignment, unrealistic targets, or overconfidence in unsound strategies. A leader’s vision must be matched by operational feasibility, data-backed planning, and financial prudence.

 

One of the most common examples of policy missteps involves overexpansion without adequate capital support. Leaders may push aggressive growth goals—opening new branches, entering unfamiliar markets, or launching new products—without fully assessing the financial and operational implications. This can result in excessive overhead costs, inventory pileups, or unmet revenue projections, eventually bleeding the company dry.

 

Similarly, delayed or reactive decision-making can be just as harmful. Postponing cost-cutting measures in the face of declining revenues, or ignoring early signs of market shifts, often causes greater losses in the long run. Strong leadership involves making timely, sometimes unpopular decisions, to ensure sustainability over optics.

 

Financial discipline must start at the top. Policies that encourage spending without accountability, or tolerate vague budgetary practices, will inevitably lead to leakages. CEOs and CFOs should ensure that every major spending decision aligns with a clear return on investment (ROI) framework. More importantly, leadership should champion a culture of financial transparency across all departments.

 

In some cases, losses occur because decision-making is too centralized, with key financial calls made by individuals without proper consultation or data analysis. Encouraging a collaborative leadership model, where finance, operations, legal, and risk management teams are involved in policy formation, can provide a more balanced view and reduce the margin for error.

 

Furthermore, ethical leadership plays a vital role in financial health. Corruption, favoritism in procurement, or even subtle conflicts of interest at the top can significantly undermine financial integrity. A leader who models compliance, fairness, and accountability sends a powerful message to the entire organization—and this translates into better governance and fewer financial risks.

 

At Kusnandar & Co., we have witnessed firsthand how seemingly minor executive policies—like using informal vendor agreements or deferring tax planning—can snowball into substantial losses. We advise clients to embed legal and financial oversight into strategic decision-making from the outset. Preventive governance is not a barrier to agility—it is the framework within which sustainable growth occurs.

 

In conclusion, leadership policies are not just administrative tools—they are financial drivers. The most resilient companies are those where leadership understands that every policy has a price tag, and that sound decisions today shape the financial outcomes of tomorrow. Vision without discipline is a liability; great leadership balances both.

K&Co - September 22, 2025

PRESS RELEASE : KUSNANDAR & CO. IN ASSOCIATION WITH WATSON & BAND

 

FOOD SOVEREIGNTY UNDER PRABOWO : BETWEEN AMBITION AND EXECUTION

By KUSNANDAR & CO., Attorneys at Law – Jakarta, INDONESIA

 

The administration of President Prabowo Subianto has launched an ambitious effort to secure Indonesia’s food future. For the first time in years, the national budget for food security has seen a substantial increase. In the 2026 State Budget (RAPBN), the government allocated Rp164.4 trillion (approximately USD 10.6 billion) specifically for food security programs—an 18 percent increase from the previous year. This isn’t just a budgetary increase; it’s a political signal: Indonesia is determined to stand on its own feet when it comes to feeding its people.

 

The allocation covers various aspects of the food system, including increasing agricultural output, strengthening food reserves, and ensuring food access for vulnerable groups. Of this amount, Rp46.9 trillion is earmarked for fertilizer subsidies, and Rp22.7 trillion is allocated to state logistics agency Bulog to manage national reserves and price stabilization. On paper, this looks like a serious effort to achieve food sovereignty.

 

But policy success is measured not by intention, but by execution.

 

According to the Central Statistics Agency (BPS), rice production between January and July 2025 reached 21.76 million tons, up by 14.5 percent year-on-year. Yet, nearly 42 percent of Indonesian regencies remain food-deficit areas. A national surplus does not guarantee local food security. This discrepancy between production and distribution reveals systemic flaws that money alone cannot fix.

 

One of the most controversial efforts revived under the Prabowo administration is the Food Estate program—large-scale agricultural projects in regions like Papua and Kalimantan. President Prabowo has personally visited several of these sites, showing strong political will. However, past failures should serve as a warning. Large-scale industrial agriculture often disregards local wisdom, environmental sustainability, and indigenous land rights. When this happens, food estates become monuments of mismanagement rather than milestones of progress.

 

The government’s new framing of food security as a matter of national defense—"food security is national security"—is both strategic and symbolic. But it raises questions about the future of participatory food governance. Will this approach empower farmers and fishers as the primary agents of food production, or reduce them to passive recipients of top-down programs? The Ministry of Agriculture, whose budget remains significantly smaller than that of subsidy programs, must not be sidelined. Long-term food sovereignty cannot be built on infrastructure and subsidies alone—it requires capacity building, research, and support for smallholders.

 

Meanwhile, the threats of climate change, land conversion, and reliance on imported commodities like soybeans and garlic persist. Market volatility continues to harm both farmers and consumers. When prices fall, farmers suffer. When they rise, consumers struggle. The government must act as a stabilizer, not just a facilitator of the market.

 

Food sovereignty is more than just high yields. It is about who controls the food system, who benefits, and whether the system is ecologically and socially just. President Prabowo’s government now has the budget, the political capital, and the momentum to transform the country’s food system. But this opportunity could be wasted if not accompanied by structural reforms and a shift in priorities—away from optics and toward resilience.

 

In an increasingly uncertain global landscape, securing food is not optional—it is existential. Indonesia has the land, the people, and the potential. What remains to be seen is whether this administration has the courage to transform ambition into lasting change.

K&Co - September 19, 2025