INDONESIA Law and Practice Contributed by: Lia Alizia, Jonathan Andreas Sitorus and El Yefta Akwila, Alizia & Partners Law Office
5.2 Internal Regulations Employers in Indonesia may set internal policies through workplace guidelines, company regulations or collective labour agreements that govern HR inves - tigations. Once established, these rules bind both employers and employees, and any deviation can trigger serious consequences. Ignoring procedural protections may lead to industrial relations disputes, violations of Article 6 of the Manpower Law on equal treatment and civil liability for breach of contract, defamation or privacy violations. In regulated sec - tors, employers could also be subject to adminis - trative sanctions from authorities such as the OJK. Beyond legal exposure, mishandled investigations erode employee trust, weaken morale and damage reputation. To safeguard both the organisation and its people, investigations must be conducted transpar - ently, fairly and in full compliance with the law. 5.3 Burden and Degree of Proof In HR internal investigations, whether triggered by whistle-blower reports or internal findings, the bur - den of proof rests with the investigation team. At this stage, both the investigation team and the respond - ent may present evidence. To establish the validity of alleged violations, the investigation team must dem - onstrate stronger and more convincing proof. Employers must ensure that investigation teams col - lect and present evidence that convincingly tips the scale, while giving respondents equal opportunity to defend themselves. This approach strengthens fair - ness, legal compliance and organisational trust. 6. Conclusion and Outcome of an HR Internal Investigation 6.1 Deciding to End an HR Internal Investigation Indonesian laws do not specifically regulate the ter - mination of HR internal investigations. In practice, the conclusion depends on company procedural stand - ards and may also occur when company manage - ment, such as the board of directors, issues a decision on follow‑up. The investigation does not automatically end based on whether the alleged violation is proven.
6.2 Procedure for Ending an HR Internal Investigation At the conclusion of an HR internal investigation, employers must follow a closing procedure. The investigation team prepares a report for the company management, usually the board of directors, and, where appropriate, for witnesses, victims or whistle- blowers. This report sets out the chronology, witness statements, evidence and recommendations for dis - ciplinary action. 6.3 Conclusion In Indonesia, there is no regulation that specifically governs the form of an HR internal investigation’s con - clusion. Each company determines how the results will be summarised. In practice, once the investigation ends, the conclusion is documented in a written report prepared and signed by the HR investigation team or the HR internal investigator. 6.4 Reports In Indonesia, there are no statutory requirements regarding the content of an HR internal investigation report. However, in practice, certain key elements are typically included to ensure clarity and completeness: • name of the respondent; • chronology of events; • evidence obtained; • list of witnesses, along with their statements; • conclusion regarding the allegation; and/or • advice on possible disciplinary measures. In addition to these elements, the report often pro - vides recommendations for next steps that employers may consider, such as specific disciplinary actions or preventive measures to strengthen workplace compli - ance. 6.5 Information As explained in 6.4 Reports , information regarding the outcome of an HR internal investigation will be compiled in a written report. At the company’s sole discretion, the written report may be disclosed to the interested parties, namely the management board of the company (the board of directors), the witnesses, the victim, the reporter and/or the whistle-blower. It is possible for the written report to not be disclosed
230 CHAMBERS.COM
Powered by FlippingBook