������Ƶ

A Compliance Procedure is a documented set of steps that organizations follow to meet legal requirements and industry standards in Indonesia. It maps out exactly how a company will handle everything from financial reporting and data protection to workplace safety and environmental regulations under laws like UU No. 40/2007 on Limited Liability Companies.

These procedures help businesses stay on the right side of Indonesian regulations while protecting themselves from penalties and reputation damage. They typically include clear instructions for staff training, regular audits, incident reporting, and corrective actions. Good compliance procedures also account for local business customs and regulatory updates from bodies like OJK (Financial Services Authority) and BKPM (Investment Coordinating Board).

Use Compliance Procedures when your organization faces new regulatory requirements or needs to standardize how it follows Indonesian laws. Key moments include expanding into regulated sectors, preparing for OJK inspections, or responding to compliance violations. These procedures become essential when onboarding new employees who need clear guidance on regulatory obligations.

Many Indonesian companies implement Compliance Procedures during mergers and acquisitions, when entering highly regulated industries like banking or mining, or after receiving notices from regulatory bodies. They're particularly valuable when introducing new internal controls, updating risk management systems, or adapting to changes in laws like the Investment Law or Financial Services Authority regulations.

• General Regulatory Compliance: Basic procedures covering essential legal requirements for Indonesian businesses, including corporate governance, reporting, and documentation.
• Industry-Specific Procedures: Tailored compliance steps for sectors like banking (OJK regulations), mining (ESDM requirements), or manufacturing (environmental compliance).
• Risk-Based Procedures: Detailed protocols focusing on high-risk areas like anti-corruption, data protection, or financial controls.
• Department-Level Procedures: Specialized compliance steps for specific business units like HR (employment law), Finance (tax compliance), or Operations.
• Crisis Response Procedures: Step-by-step compliance guides for managing regulatory investigations, audits, or violation remediation.

• Compliance Officers: Lead the development and implementation of compliance procedures, ensuring they align with Indonesian regulations and company policies.
• Legal Teams: Draft and review procedures, incorporating requirements from OJK, BKPM, and other regulatory bodies.
• Department Managers: Help customize procedures for their units and ensure staff follow compliance steps daily.
• Board of Directors: Approve procedures and oversee their effectiveness in meeting regulatory obligations.
• External Consultants: Provide expertise on specific regulations and help design robust compliance systems.
• Employees: Follow procedures in their daily work and report compliance issues through proper channels.

• Regulatory Review: Identify all applicable Indonesian laws and regulations for your industry, especially OJK and sector-specific requirements.
• Risk Assessment: Map out key compliance risks and current control gaps in your organization.
• Process Mapping: Document existing workflows and identify where compliance checkpoints need to be added.
• Stakeholder Input: Gather feedback from department heads about operational impacts and practical challenges.
• Resource Planning: Determine staff, technology, and training needed to implement the procedures.
• Documentation Structure: Use our platform to generate a legally sound template that includes all mandatory elements and clear compliance steps.

• Purpose Statement: Clear objectives and scope of the compliance program aligned with Indonesian regulations.
• Legal Framework: References to specific laws, OJK regulations, and industry standards being addressed.
• Roles and Responsibilities: Detailed accountability matrix for compliance tasks and oversight.
• Reporting Mechanisms: Procedures for internal reporting, whistleblowing, and regulatory notifications.
• Monitoring Protocols: Specific steps for tracking compliance, conducting audits, and maintaining records.
• Enforcement Guidelines: Consequences of non-compliance and corrective action procedures.
• Review Schedule: Timeframes for updating procedures and assessing effectiveness.

A Compliance Procedure differs significantly from a Compliance Policy in both scope and application within Indonesian organizations. While they work together, each serves a distinct purpose in your compliance framework.

• Level of Detail: Compliance Procedures provide step-by-step instructions for specific compliance tasks, while Compliance Policies outline broader principles and requirements.
• Implementation Focus: Procedures detail the 'how-to' of compliance activities, whereas policies establish the 'what' and 'why' of compliance standards.
• Update Frequency: Procedures require more frequent updates to reflect operational changes and new regulatory guidance, while policies typically remain stable longer.
• User Application: Staff directly follow procedures in their daily work, while policies serve as reference documents for overall compliance direction.
• Regulatory Context: Procedures often respond to specific OJK or industry requirements, while policies align with broader Indonesian corporate governance principles.