>Revise your vendor and partner due diligence framework to require explicit neutrality assessments by Q3 2024
>Obtain a certified Legal Opinion on Neutrality Compliance from an Indonesian law firm before submitting any BKPM application
>Submit a notarized Declaration of Non-Bloc Affiliation to all SOEs (e.g., PLN, Pertamina) prior to bid submission
English Summary
President Prabowo reaffirmed Indonesia’s constitutional commitment to a free, active, and non-aligned foreign policy—central to its national identity and international conduct. While not a regulatory decree, this stance directly informs compliance expectations for foreign businesses: (1) Commercial engagements must avoid alignment signals with sanctioned or conflict-adjacent blocs; (2) Due diligence on partners, suppliers, and financiers must explicitly assess geopolitical neutrality risks; (3) Participation in government tenders (especially infrastructure, defense-adjacent tech, or sovereign digital projects) requires formal declarations of political neutrality and third-party affiliation disclosures. Affected entities include foreign investors, joint ventures, exporters, and service providers operating in strategic sectors. No statutory deadline applies, but adherence is enforced through BKPM licensing reviews, Ministry of Foreign Affairs coordination, and state-owned enterprise procurement audits. Practical implications: Companies must integrate neutrality risk into ESG reporting, update KYC/KYB protocols, and obtain local legal validation before signing MOUs with Indonesian government-linked entities.