M&A and Due Diligence in Indonesia
Overview
Streamline your company’s business consolidation with Business Hub Asia’s expert Mergers & Acquisitions advisory. We provide comprehensive assistance throughout every phase of the M&A process, including strategy development, thorough due diligence, legal & tax compliance, and secure transaction completion, ensuring efficiency and adherence to Indonesian government regulations.
Free ConsultationKey Features
Strategic M&A Consultacy
Develop a merger or acquisition strategy that is aligned with long-term business objectives.
Comprehensive Due Diligence
A comprehensive review of legal, financial, tax, and operational aspects to minimize transaction risk.
Legal & Regulatory Compliance
Processing of all legal documents and licenses following OJK, BKPM, and the Ministry of Law & Human Rights (Kemenkumham) regulations.
Valuation & Negotiation Support
Assistance in company valuation and negotiation to get the best results.
Post-Merger Integration
Support in the post-merger/acquisition integration process to ensure effective transition and minimal business disruption.
Minimum Requirements
Company Profile
Full profile of the companies involved (legality, financial statements)
Letter of Intent
Letter of Intent (LOI) or Memorandum of Understanding (MoU)
Financial Information
Data on company assets and liabilities
Structure & Shareholding
Organizational structure and shareholding
Shareholder Consent
Shareholder approval (if required)
Process and Timeline
1
Initial Consultation & Feasibility Study
Initial discussion to understand M&A objectives (expansion, consolidation, efficiency), including scope identification, business potential, and industry research, to legal and financial feasibility analysis. Estimated time: 3-5 working days
2
Non-Disclosure Agreement (NDA) & Letter of Intent (LOI)
Signing of NDA to maintain data confidentiality, and LOI to confirm initial interest and basic principles of M&A. Estimated time: 1-2 working days
3
Legal & Financial Due Diligence
A thorough examination of the legal, compliance, tax, HR, assets, encumbrances and liabilities of the target company. Estimated time: 10-20 working days (depending on the scale and complexity of the company)
4
Valuation & Negotiation
Assessment of the fair value of the target company using valuation methods, followed by discussions and adjustment of the strike price. Estimated time: 5-10 working days
5
Drafting & Signing Final Agreement
Drafting of the definitive agreement (Share Purchase Agreement, Merger Agreement, and other related documents), including transition agreements. Estimated time: 5-10 working days
6
Regulatory Approvals & Compliance
Processing of approvals from the Ministry of Law and Human Rights, KPPU (for large mergers), and other relevant regulators. Estimated time: 10-20 working days (depending on the regulator and industry sector)
7
Transaction Closing & Fund Transfer
The process of finalizing the transaction, payment, and handover of shares or assets according to the terms. Estimated time: 1-3 working days
8
Post-Closing Integration & Reporting
Combine operational, HR, financial, and regulatory reporting aspects. For foreign investment cases, ensure BKPM reporting is included. Estimated time: 5-10 working days (optional, depending on client needs)
*The M&A process in Indonesia generally takes 2-4 months overall, depending on the complexity of the target business, the number of entities involved, and regulatory approvals and document readiness
Important Consideration
- The M&A process must comply with local regulations, such as, e.g., OJK regulations for the financial sector and the IDX for public companies.
- Anti-monopoly due diligence must be conducted to avoid violating the Antitrust Law (UU No. 5/1999).
- Public companies require a general meeting of shareholders’ approval in the M&A process.
- Tax consultation is highly recommended to maximize the tax efficiency of the transaction.
Frequently Asked Questions
Does the business acquisition in Indonesia require government approval?
Yes, depending on the business sector and transaction value. Certain sectors require approval from regulators such as OJK, BKPM, or KPPU.
Can foreign companies fully acquire Indonesian companies?
Yes, but subject to the Negative Investment List (DNI) or the latest regulation on foreign investment, which limits foreign ownership in certain sectors.
Should the M&A process involve a consultant or a lawyer?
It is highly recommended to involve a professional consultant so that the entire process runs smoothly, legally, and safely, from legal risks.
How is the company value calculated in the M&A process?
Company value is usually calculated through valuation approaches such as Discounted Cash Flow (DCF), Comparable Company Analysis (CCA), or Asset-Based Valuation.
Are there tax risks in the M&A process?
Yes, M&A transactions can have significant tax implications for the seller and the buyer. Therefore, tax planning should be completed beforehand as a part of mergers & acquisitions strategy.
Can Business Hub Asia find a suitable target company in Indonesia?
Yes, we can assist in identifying acquisition targets that align with your specific criteria or suggest companies deemed appropriate for your acquisition strategy.
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Disclaimer
The content provided on this website is published by PT. Bisnis Hub Asia (“we“, or “us“) for general informational purposes only. While every effort is made to ensure the accuracy and timeliness of the information presented, we make no representations or warranties, express or implied, as to the completeness, accuracy, reliability, suitability, or availability of any content, products, or services described on this website. Any reliance placed on such information is strictly at the user’s own risk.
We are a private, independent entity and are not affiliated with, authorized by, or acting on behalf of the Government of the Republic of Indonesia, its ministries, agencies, or any officially appointed representatives. This website does not provide, offer, or promote any official government documents or services, including but not limited to:
-
Business identification numbers (Nomor Induk Berusaha – NIB);
-
Tax refunds or rebates;
-
Stay Permit or electronic travel authorizations;
-
Passports or other immigration-related documents.
Any references to such services are provided solely for general informational purposes and should not be construed as an offer or facilitation of official services.
We are committed to ensuring the protection of your personal data in accordance with Law No. 27 of 2022 on Personal Data Protection. Any personal information collected through this website will be processed for the purposes clearly stated in our [Privacy Statement]. We do not sell or misuse personal data under any circumstances.
By accessing and using this website, you acknowledge and agree to the terms set out in this Disclaimer. You further agree to use this website and the information provided responsibly and in compliance with applicable laws and regulations.
For further information or questions regarding this Disclaimer, please contact us via the channels provided on our Contact page.
Disclaimer
The content provided on this website is published by PT. Bisnis Hub Asia (“we“, or “us“) for general informational purposes only. While every effort is made to ensure the accuracy and timeliness of the information presented, we make no representations or warranties, express or implied, as to the completeness, accuracy, reliability, suitability, or availability of any content, products, or services described on this website. Any reliance placed on such information is strictly at the user’s own risk.
We are a private, independent entity and are not affiliated with, authorized by, or acting on behalf of the Government of the Republic of Indonesia, its ministries, agencies, or any officially appointed representatives. This website does not provide, offer, or promote any official government documents or services, including but not limited to:
-
Business identification numbers (Nomor Induk Berusaha – NIB);
-
Tax refunds or rebates;
-
Visas or electronic travel authorizations (e-Visa, e-VoA);
-
Passports or other immigration-related documents.
Any references to such services are provided solely for general informational purposes and should not be construed as an offer or facilitation of official services.
We are committed to ensuring the protection of your personal data in accordance with Law No. 27 of 2022 on Personal Data Protection. Any personal information collected through this website will be processed for the purposes clearly stated in our [Privacy Statement]. We do not sell or misuse personal data under any circumstances.
By accessing and using this website, you acknowledge and agree to the terms set out in this Disclaimer. You further agree to use this website and the information provided responsibly and in compliance with applicable laws and regulations.
For further information or questions regarding this Disclaimer, please contact us via the channels provided on our Contact page.
Meet the Expert
Meet the Expert
Edy Tama, SH, LLM.
Chief Operating Officer at Business Hub Asia
Edy Tama is a seasoned legal and compliance executive with over 20 years of experience in Indonesia and Southeast Asia. As COO at Business Hub Asia, he oversees day-to-day operations and ensures regulatory integrity across legal, licensing, and client service teams. His core expertise is in corporate law, regulatory compliance, and risk management for international clients in emerging markets.
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