A Legal due diligence exercise is recommended when an investor wishes to acquire an Indonesian company or engage in a government project, to minimize potentially adverse surprises and high costs. The exercise examines all aspects relevant to the corporate action, including but not limited to as follows,
a. Validity of business licenses;
b Land status and issues;
c. Financial and tax liabilities/compliance;
d. Employment (and possible termination) matters;
e. Value and physical conditions of assets;
f. Social acceptance of operations in the neighbourhood;
g. Issues of a specific concern; and/or
h. Others.
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