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 term
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:

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

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.

Employment Matters

Address manpower and employment issues during the merger and acquisition process, including compliance with Indonesian labor laws and the handling of employee transfers and/or terminations.

Regulatory Compliance

Navigate through various regulatory requirements, obtaining approvals from authorities such as the Ministry of Investment in Indonesia (previously Indonesian Investment Coordinating Board/BKPM) and the Indonesian Commission for the Supervision of Business Competition (KPPU).

Intellectual Property Rights

Assess and protect intellectual property rights during the merger and acquisition process, ensuring compliance with Indonesian law and regulations to safeguard the value of intangible assets

Steps & Requirements

1.	Conduct a Proposal to perform Merger and Acquisition: Provided by the party willing to do the M&A activity in Indonesia
2.	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
3.	Execute M&A documents in the Notary
4.	Obtain acknowledgement from the Ministry of Law and Human Rights
5.	Tax Identification Number (TIN/NPWP): From the Local Tax Office where the Company is registered
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.

At Andalan Consulting, we prioritize the confidentiality of your personal data and will take all necessary measures to protect it in accordance with the laws of Indonesia and the your country as detailed in our Privacy Notice.