Recently, we were surprised at the numbers of news about the conflict between indigenous people (Adat law) and the company in several regions such as Bima, Tapanuli, Sulawesi, Ambon, Papua and Borneo. These conflicts may indeed have impacted not only on the company internally but also on the value of investments and creditors either Bank or non bank creditor like leasing company. Related to such potential conflicts, investor or creditor which does not ready with information or early warning of potential conflict, may be suffered or at least facing difficulties on their debt collections or the decreasing of investment value.If the alert system of law risk has been revealed and being notice earlier, the potential conflict could be preventable by building a good communications with local society or indigenous people, or at least it can find out the potential law conflict by creating the legal solutions to prevent the biggest damages. Regular Legal Compliance Report annually or every two years is important to prepare any legal things which should be complied with rules and regulations, such as the articles of associations, certificate of share, list of shareholders, business licenses and related licenses, mandatory obligations related to the business licenses and any potential conflict rising up within such period, either internal conflict with labors and or staffs or third party including local government. Regular Legal Compliance Report is indeed similar with the general check up in the health care matters, that the report is contained of complete analyses of company’s legal aspects. The purposes of legal compliance report is having knowledge or mapping out the conditions of the company overall and also as an early alert system. According to our 20 years experience on handling due diligence and preparing the compliance reports for many industries, it has found out that the legal compliance report is an early alert system which is important for the company itself as well as for the investor and creditor. By this report, the companies are able to notice or to be aware of any damaged fact earlier before blowing up to public. Recently the internet social networks i.e. Facebook, Twitter, etc can spread out any single problem inside the company to be rolled out like a snow ball to public. Those problems and the way they spread out is similar with the way a virus spread into all systems of the company, investor or creditors, and unexpectedly becoming the fatal cancer inside the company. Since the prevention always better than resolving, it is wise for the company to be ready with the Legal Compliance Report. We hope this simple article is useful for all the company managements to be more aware of any early legal risk.