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Enabling Compliance Confidence for a High-Growth India Indonesia Explosives JV

Enabling Compliance Confidence for a High-Growth India Indonesia Explosives JV

Client Profile:

A publicly listed Indian explosives manufacturing company operating in a strategic
joint venture with an Indonesian government entity, holding a monopoly in
industrial explosives across key sectors.

Challenges:

  • Rapid growth in Indonesia created compliance overload
  • Inability to manage multi-jurisdictional statutory obligations due to language and operational barriers
  • Complex reporting needs related to tax, licensing, and safety audits
  • Risk of non-compliance in a heavily regulated sector, with potential reputational and financial impact

Our Solution:

JCSS Indonesia was initially engaged to perform a Compliance Wellness Assessment—a health check across tax, payroll, regulatory, and statutory filings.

We implemented:

  • A comprehensive compliance calendar system aligned to Indonesian regulations and Ministry of Industry expectations
  • Quarterly internal audit programs covering factory operations, licensing, and finance functions
  • Localization of tax and statutory reporting (in Bahasa) with dual-language summaries for the Indian board
  • Full outsourcing of payroll compliance, PPh 21, VAT filings, LKPM, and sectoral returns, with built-in review controls
  • Direct representation with Indonesian authorities on behalf of the joint venture

Results Delivered:

  • Client now enjoys 100% on-time compliance reporting
  • Internal teams are freed up to focus entirely on production, safety, and growth strategy
  • Avoided potential penalties through early detection of gaps via internal audits
  • Strengthened trust with Indonesian government partners due to clean regulatory track record
  • JCSS Indonesia became the single-point partner for all compliance and audit services in the country