Merger & Acquisition
In Indonesia, a merger refers to the combining of two or more companies into a single entity, while an acquisition involves one company purchasing another. These strategic moves are often pursued to strengthen market presence, gain competitive advantages, or achieve operational synergies. As commonly known globally, Merger and Acquisition are ways to enter new business opportunities anywhere in the world.
What to Consider
MERGER IN INDONESIA
- Regulatory Approval: acquire acknowledgements by the related ministerial institutions to ensure compliance with related regulations
- Awareness on the capital and human resources effects after performing merger and securing shareholders consent through written resolutions
- Legal Documentation: prepare and draft supporting legal documents; outlining the terms and conditions of the merger
What to Consider
ACQUISITION IN INDONESIA
- Due Diligence: Conduct thorough due diligence to assess the financial, legal, and operational aspects of the target company
- Valuation: Determine the fair value of the target company and negotiate the purchase price and payment terms
- Regulatory Compliance: Obtain necessary regulatory approvals, including those from the Indonesian Investment Coordinating Board (BKPM) and other relevant authorities, to complete the acquisition process
RELATED ASPECTS TO MERGER & ACQUISITION:
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- 1. Tax Implications: consider the tax consequences of the merger or acquisition, including capital gains tax and potential incentives provided by the Indonesian government for certain transactions
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- 2. Legal Due Diligence: conduct a comprehensive legal review to identify any potential legal risks or liabilities associated with the target company, ensuring a smooth transition
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- 3. Employee Matters: address labor and employement issues during the merger or acquisitition process, including compliance with Indonesian labor laws and the handling of employee transfers or terminations
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- 4. Regulatory Compliance: Navigate through various regulatory requirements, obtaining approvals from authorities such as the Indonesian Investment Coordinating Board (BPKPM) and the Indonesian Competition Commission (KPPU)
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- 5.Intellectual Property Rights: assess and protect intellectual property rights during the merger or acquisition, ensuring compliance with Indonesian laws and safeguarding the vallue of intangible assets
Energy and Mining
Telecommunication and Technology
Construction
Renewable Energy
Steps & Requirements
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Conduct a Proposal to perform Merger and Acquisition: Provided by the party willing to do the M&A activity in Indonesia |
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Perform legally compliant documents through stages as governed by law: Some stages to be aware of is that the intention of M&A must be announced in a public national newspaper |
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3. |
Execute M&A documents in the Notary |
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Obtain acknowledgement from the Ministry of Law and Human Rights |
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5. |
Tax Identification Number (TIN/NPWP): From the Local Tax Office where the Company is registered |
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6. |
Business Registration Number / Nomor Induk Berusaha – NIB: Submitted through the Online Single Submission System (OSS) Indonesia |
Why Choose Us?
Our team has extensive experience in providing Merger & Acquisition Assistance service. We are prepared to assist in all 360° aspects, from Legal, Tax and Financial Advisory.
Get Started!
Our dedicated team is ready to assist you and providing the necessary legal support to address your concerns in accordance with Indonesian law.
