Overview

In general corporate compliance in Indonesia is shaped by Law No. 40 of 2007 on Limited Liability Companies and Law No. 8 of 1997 on Corporate Documents and other anti-bribery and anti-corruption legislation.

These laws oblige companies in Indonesia to, among others, maintain their books and accounts in a manner that is in line with the accounting standards prevailing in Indonesia although they do not specify how transactions should be recorded in a company’s books.

In terms of sound business practice, alongside the anti-bribery legislation, the government, in cooperation with representatives of the business community and the public, has also been issuing guidelines on good corporate governance, e.g. on whistle-blowing system, bribe-free business and anti-corruption.

Baker & McKenzie discusses how Indonesia is catching up with the global trend of fighting corruption through various laws.

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