Wednesday, 17 September 2025

LAYING DOWN STRONG FOUNDATIONS: NAVIGATING INDONESIA'S LEGAL LANDSCAPE FOR FOREIGN INVESTORS

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

 

Global interest in Indonesia continues to grow steadily, even amidst economic uncertainty in many parts of the world. With a population approaching 280 million and a median age of 28, Indonesia presents not just a vast market, but one that is evolving quickly—driven by its digital transformation, a shift toward renewable energy, and steady consumer demand. Yet, behind this promise lies a legal and regulatory framework that remains complex and, at times, unpredictable.

 

Over the past few years, the Indonesian government has made notable progress in reforming its investment climate. Key reforms include improvements to the Online Single Submission (OSS) licensing system, the expansion of the Positive Investment List, and increased digitalization of public services. However, on-the-ground implementation continues to pose challenges, especially due to coordination gaps between national and regional authorities. Investors frequently encounter regulatory inconsistencies, bureaucratic delays, and unclear administrative procedures—barriers that can affect both timing and cost.

 

In this context, partnering with a well-established local law firm is no longer a mere advantage—it has become a strategic necessity. Firms like Kusnandar & Co., which has been advising foreign clients since 1980, play a critical role not just in legal compliance, but in helping investors fully understand Indonesia’s complex institutional environment and cultural nuances.

 

“Indonesia is a promising market, but the legal system is not always intuitive to outsiders,” says Gatot Sanyoto, a senior partner at Kusnandar & Co. “Many of our clients come to us for legal advice, but more importantly, for strategic insight into how things work locally—how business relationships are built, how institutions function, and how to anticipate change.”

 

Recognized as one of Indonesia’s top ten law firms, Kusnandar & Co. operates as a full-service legal practice. Its services span corporate and commercial law, litigation, mediation, domestic and international arbitration, intellectual property, and digital law—including compliance with Indonesia’s increasingly important Personal Data Protection Law.

 

As Indonesia’s digital and green sectors expand rapidly, Kusnandar & Co. has positioned itself as a key legal partner to both Fortune 500 companies and institutional investors looking to enter or scale within the market. The digital economy, for example, continues to grow on the back of strong internet penetration and rising consumer adoption. Yet, many regulatory frameworks—particularly in e-commerce, taxation, and data governance—remain in flux.

 

“In the digital and technology sectors, uncertainty is still a real issue,” says Arno Rizaldi Setiawan, a partner at Kusnandar & Co. who leads investment and technology-related practice areas. “Our integrated services—from entity formation and corporate structuring to licensing, litigation, arbitration, and IP protection—are designed to give investors confidence that they can establish and grow securely here.”

 

The firm also supports cross-border transactions involving complex disputes and international arbitration, often advising on matters involving Singapore International Arbitration Centre (SIAC), Hong Kong International Arbitration Centre (HKIAC), and other global dispute resolution mechanisms. With its broad capabilities and deep local insight, Kusnandar & Co. has earned the trust of multinational clients across sectors, from infrastructure and mining to fintech and digital services.

 

Although Indonesia’s legal landscape is still maturing, the direction of reform is becoming clearer: open investment policies combined with tighter oversight over strategic sectors. In such an environment, long-term success hinges not just on the amount of capital deployed, but on the readiness to navigate evolving regulations and forge local partnerships.

 

Legal strategy in Indonesia today is about more than just compliance—it’s about foresight. With a legal environment that can shift quickly and a political climate that demands agility, foreign investors need advisors who not only interpret the law, but anticipate where it is going.

 

With over four decades of experience and a reputation for practical, hands-on legal support, Kusnandar & Co. goes beyond document preparation to become a key player in designing sustainable legal strategies for complex markets. In today’s Indonesia—shaped by digital disruption and climate-conscious investment trends—success belongs to those who arrive not just with good intentions, but with deep preparation, clarity of purpose, and trusted local guidance.

 

As many global investors have discovered, entering Indonesia is not a sprint—it is a journey. And with the right legal partner, that journey becomes far more navigable.


K&Co - September 18, 2025

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