COVID-19 Pandemic: Guidelines on Designing Business Continuity Plan for Indonesian Companies

Marshall SitumorangFounder and Partner, Nusantara Legal Partnership

On 17 September 2020, the Minister of Manpower issues a decree that stipulates a guideline for the company to design its business continuity plan amidst the pandemic. The guideline aims to anticipate the impact of pandemic disease in numerous business sectors in order to reduce the spread of pandemic diseases while maintaining business continuity, especially during the unfolding of the COVID-19 pandemic.

Legal Frameworks: Our executive summary refers to Minister of Manpower Decree No. 312 of 2020 on the Guidelines for the Designing of Business Continuity Plan in Facing Pandemic Disease (“MoM Decree 312/2020”).

Main Keys on Designing Business Continuity Plan: We have managed to provide you the following main keys regarding the guidelines provided by the government in designing a business continuity plan amidst the pandemic.

Forming Business Continuity Team: We note that in preparing a business continuity plan, it is necessary for a company to establish a team (“Business Continuity Team”) that is responsible for: (a) preparing an anticipating/kesiapsiagaan plan (“Plan”); (b) conducting necessary reviews to the Plan; (c) examining the Plan through tabletop, drill, simulation, etc.; and (d) performing required adjustments in order to polish-up the Plan.

Stages in Preparing Business Continuity Plan: We note that the MoM Decree 312/2020 outlines 7 (seven) main stages in preparing a business continuity plan, namely as follows:

  1. Evaluating business priorities;
  2. Identifying the pandemic risks;
  3. Planning the mitigation for the pandemic risks;
  4. Identifying the response to the impact of the pandemic;
  5. Designing and implementing the Business Continuity Plan;
  6. Communicating the Business Continuity Plan; and
  7. Assessment on the Business Continuity Plan (Point 2 of MoM Decree 312/2020)