• id

Business Mergers and Acquisitions in Indonesia

Contact Our Consultants
Mergers and acquisitions (M&A) in Indonesia is expected to continue the positive trend that was observed in previous years.

In 2016, Indonesia recorded 71 deals worth of USD 1.9 billion. In 2017, the amount increased significantly to USD 4 billion with 81 deals recorded. And, in 2018 69 deals were recorded with a staggering amount of USD 10 billion. Although records are impressive, it is important to note that mergers and acquisitions in Indonesia are complex processes. Thus, successful execution of both mergers and acquisitions require a significant amount of resources and time.

Merger and Acquisition: The Difference

As the name says, merging happens when two or more items become one. In business, merger takes place when two or more business entities or corporations become a single entity. The main purpose of this activity is scale and productivity efficiencies in major areas of business operations.

As for acquisition, it happens when a strong company (usually a large one) buys a smaller company (usually with weaker financial ability) in order to create a company that is cost-efficient and competitive in the market.

 

 

Reasons for Doing Mergers and Acquisitions in Indonesia

In general, companies that merge together are able to achieve cost efficiencies when it comes to delivering products and services, administration tasks as well as marketing and sales in business operations.

Benefits that can be enjoyed from doing mergers and acquisitions in Indonesia include improving company productivity through staffing efficiencies and market expansion through penetrating new markets that result in growing revenues.

merger acquisition process in Indonesia

Procedures of Mergers and Acquisitions in Indonesia

In general, the procedures of mergers and acquisitions in Indonesia are summarised as follows:

  • The acquirer and the target company prepare an M&A proposal in newspapers.
  • The target company conducts an extraordinary general meeting of shareholders with the presence of at least 75% shareholders.
  • Creditors approve the proposed M&A transaction.
  • Determine the fair market value of the merger shares conversion formula through a valuation of shares.
  • Third parties (as required by law and agreements) give approval.
  • Relevant agencies (BKPM, OJK and Ministry of Law and Human Rights) approve the merging or acquired companies.
  • Any relevant industry regulator gives approval (depending on the business nature of the target company)

From a regulatory perspective, a merger or an acquisition takes at least 30 days to be successfully completed. However, it may take longer due to negotiation and due diligence processes.

The Required Documents

acquisition documents

To acquire a company in Indonesia, the documents to be prepared include:

  • Announcement
  • GMS resolutions
  • A sale and purchase agreement
  • A deed of transfer
  • Shareholders register
  • A certificate of collective shares
  • Approval from Ministry of Law and Human Rights or other relevant agencies
  • Business Identification Number

 

merger documents

To merge with another company in Indonesia, the documents to be prepared include:

  • A merger plan
  • Announcement
  • A deed of merger
  • Shareholders register
  • A certificate of collective shares
  • Approval from Ministry of Law and Human Rights or other relevant agencies
  • Business Identification Number

Mergers and Acquisitions in Indonesia with Cekindo

Cekindo’s mergers and acquisitions services in Indonesia are designed to help our clients achieve their strategic goals through identification of opportunities and later seizing the most suitable and profitable ones to merge with or acquire other businesses. Our comprehensive services comprise the valuation, negotiation and completion stages, including financial audit and legal due diligence.

Fill in the form below to learn more about Cekindo’s mergers and acquisitions services. Our consultants are also available offline. Visit us in one of our offices in Jakarta, Bali and Semarang. We will be happy to answer your questions.

Contact our consultants

Selected Testimonials

  • Matthias Coessens - Empyrean

    When I was looking for a reliable partner who could help with company registration, payroll, taxes and working permit in Indonesia, Cekindo’s domain knowledge and clear communication astonished. Firstly, we decided to pursue cooperation with Cekindo in terms of company registration, but they also assisted me in obtaining the necessary working permits and visas (KITAS), and we use their payroll and tax reporting services until now.

    Matthias Coessens
    Product Director at Empyrean Solutions Apac
  • Ivana Bartonkova

    Cekindo handled business visa for our new colleague promptly and made the start of our company in Vietnam easier and faster. I particularly enjoyed communication with the consultant, who advised the best solution for us and was all the time available to answer any questions. She made sure that all the documents were collected and prepared on time and we got great support during the whole process. Thank you Cekindo and I hope to cooperate again in the near future!

    Ivana Bartonkova
    Marketing and HR director of Port Cities Vietnam
  • Phyto CZ Sro

    Cekindo assisted us with a selection of our local distributor in Indonesia and organised several meeting in Jakarta. Their assistance enabled us to meet our potential local partners and choose the best distributor conveniently. The decision to cooperate with Cekindo was based on a recommendation from our prominent partner in Bali and we cannot be more grateful. Cekindo’s systematic work, active communication, thoroughness and professionalism was exceptional.

    Ing. Václav Tomek
    Phyto CZ Sro
  • Vivek Singh Rathaur

    Cekindo initially helped us with setting up our business structure in Indonesia and getting us all due licenses and approvals. Currently, Cekindo is associated with us as our business partner in Indonesia by providing a face to our name and handling various business activities on our behalf. Without their help, we would be lost in keeping up with regulatory requirements and being a compliant company in Indonesia.

    Vivek S.Rathaur
    Vega Industries
  • akvo - cekindo

    Thanks to Cekindo and its one-stop market entry solutions, we could start exploring the Indonesian market. Cekindo’s broad portfolio of services included a formal process of our representative office registration, consultations regarding proper legal set-up and even working permit and visa applications. Cekindo’s extensive knowledge of the latest developments and legal requirements allowed us to focus on more operational matters and to build a local team in Indonesia.

    Peter van der Linde
    Co-founder / Director strategy & solutions, Akvo Pte Ltd
  • morning-star-cekindo

    After extensive research online, I reached out to several companies including Cekindo. Cekindo’s info package and summary of services were by far the most thorough and professional and their pricing was competitive and reasonable. Cekindo’s sound knowledge of all administrative requirements gave me the confidence that my company incorporation of 100% foreign owned export company was being executed correctly and legally.

    Kingsley Fiegert
    Director, Morning Star Investments (WA) Pty Ltd
  • Jason Peter Stevens

    With knowledgable team, Cekindo helped me make the whole process of company registration and product registration of health and beauty products in Indonesia less confusing and seamless at the same time. They have always been swift in response and hands-on at every email, never leaving me wondering or worried. As far as I am concerned, they go above and beyond the call of duty. They will most certainly be my long-term partner moving forward into the years to come. Thank you Cekindo!

    Jason Peter Stevens
    Group CEO, Studio XII Pte Ltd
  • Konstantin-Simonov

    We chose Cekindo because we considered Cekindo as a professional company with a good attitude and a streamlined business model. Cekindo met all our expectations as it created the atmosphere of accountability and transparency. The most significant added values that we received from cooperation with Cekindo are the time we saved and mistakes we avoided.

    Konstantin Simonov
    Director, PT. AEKS Konsultasi dan Integrasi
  • DESMI Testimonial - Cekindo

    Cekindo provided outstanding services in registering our representative office in Indonesia in a timely manner. Their financial services have been helping us a lot — our local employees feel secure working for our company. Cekindo became our reliable partner with quick response on our needs. Their flexibility and full support of our business in Indonesia are the main reasons to continue in our cooperation.

    Rajendra Iskandar
    Sales and Support Engineer, DESMI
  • (CFLD), Mr. Max Yang, President, Indonesian Region

    After comparing several consultants, I found Cekindo is a international and professional organization with good understanding of local market. Cekindo helped our company to set up our first Indonesian entity, and also helps with day-to-day operation.  Cekindo showed high level of professionalism. Jump start the business in Indonesia, take care of routine process, therefore we can focus more on our core business.

    Max Yang
    President, Indonesian Region, China Fortune Land Development Co., Ltd.