Legal due diligence is a comprehensive assessment conducted to evaluate the legal aspects of a company, project, or transaction. This process is essential to identify potential risks, ensure compliance, and support informed decision-making, particularly in mergers, acquisitions, and investments. In Indonesia, due diligence practices are generally aligned with various sectoral regulations, including Company Law (Law No. 40 of 2007) and other related regulations.
Scope of Legal Due Diligence:
- Corporate due diligence – review of company legality, licenses, and corporate documents
- Asset due diligence – verification of ownership and legal status of assets
- Contractual due diligence – analysis of agreements and potential legal risks