Company Merger
Thinking of merging two companies into one stronger entity?
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A merger is when two or more companies legally combine into a single business entity. In Indonesia, mergers are governed by Law No. 40 of 2007 and require approval from:
- Shareholders of both companies
- Ministry of Law & Human Rights
- BKPM, OJK, and other regulatory bodies (depending on the business sector)
- Indonesian Competition Commission (if applicable)
- M&A proposal is prepared and published
- Extraordinary General Meeting (EGM) with ≥75% shareholder presence
- Creditor approval
- Share valuation for merger ratio
- Third-party approvals (as per contract/law)
- Final approvals from BKPM, OJK, and the Ministry
- Industry-specific regulator approvals (if required)
- Identity & documents of new + current directors & commissioners
- Copy of company deeds, licenses (SK, NIB, Tax ID)
- Lease agreement and domicile letter
- For foreign individuals: Passport, email, phone
- For Indonesian individuals: KTP, NPWP, email, phone
Don’t worry—we’ll send you a checklist and handle the rest.
There are 3 common types:
- Merger by Acquisition: One company absorbs another (the latter is dissolved)
- Merger by Consolidation: Two companies combine into a new entity
Merger by Absorption: Similar to acquisition, but shares may be retained
Mergers are regulated under Law No. 40 of 2007 on Limited Liability Companies
Typically around 30 working days, depending on complexity and approvals. Due diligence, negotiations, and regulatory review can affect the timeline.
It’s a legal and financial check of the target company to identify risks and ensure compliance. It also increases your negotiation power and reduces future liabilities.
Yes. You’ll need:
- At least 75% of shareholders present at the EGM
Creditor consent for the transaction to proceed
We’ll help you manage all the coordination and documentation.
Absolutely. We can assist with:
- Organizational restructuring
- Revisions to articles of association
Licensing and tax registration updates
