Govt. Introduces Three New Methods for Structure and Gradation Formulations for Different Wage Schemes
Employers must inform their workers of any newly formulated wage schemes, structures and gradations
Mining Businesses in the Wake of PP Minerba: Many Issues Loom Regarding Indonesia’s Mining Divestment Policy
Contrary to popular expectations, transfers of ownership to Indonesia may not lead to any drastic increases in domestic employment opportunities within the mining sector
Implementation of the Precautionary Principle in Environmental Cases Deemed Important
Impacts resulting from environmental damage cannot be equated with losses involving damaged goods or other material rights
Indonesian Law Digest
Indonesia: Towards an Anti-Bribery Era
Friday, May 26, 2017
This edition of ILD aims to offer a little insight into various domestic and international legal frameworks which address the thorny issue of bribery, and also offers a brief discussion as to why any companies operating within Indonesia should also be aware of and comply with the USA’s Foreign Corrupt Practices Act and the UK’s Bribery Act, as two of the world’s leading anti-bribery frameworks.
Licensing Policy for Upstream and Downstream Oil-and-Gas Business Activities Simplified
Friday, May 19, 2017
In April 2017, the Ministry of Energy and Mineral Resources was responsible for a milestone within the industrial oil-and-gas sector by issuing Regulation No. 29 of 2017 on the Licensing of Oil-and-Gas Business Activities. This regulation basically simplifies a number of provisions which address licensing within the oil-and-gas sector and which were formerly addressed under several different regulations. By issuing this regulation, the government is hoping that the investment climate within the oil-and-gas sector will soon show signs of improvement.
Indonesian Health Industries 101
Friday, May 12, 2017
What requirements have to be met in order to establish a hospital in Indonesia? Can pharmaceutical manufacturers and distributors become single companies under a single license? This edition of Indonesian Law Digest will address these and other questions, as it tackles the legal framework that covers Indonesia’s health industries and the anatomy of the country’s health sector.
Indonesian Legal Brief
Draft Bill on the Restriction of Hard-Cash Transactions
Friday, May 26, 2017
Due to the fact that hard-cash transactions are prone to be used as a means of money-laundering and other criminal activities, the government and the House are currently discussing the Draft Bill on the Restriction of Hard-Cash Transactions. In a nutshell, this Draft Bill prohibits any hard-cash transactions with values of above IDR 100 million from being undertaken in Indonesia, with a number of exemptions to this restriction also being described. All agreements which set out such hard-cash transactions will therefore subsequently be considered null and valid. Moreover, the carrying of foreign banknotes in certain amounts will require the acquisition of permits issued by Bank Indonesia if this Draft Bill is ultimately passed by the House.
Procedures for the Imposition of Administrative Sanctions upon Notaries
Wednesday, May 24, 2017
In order to clarify matters pertaining to the imposition of administrative sanctions upon notaries, the Ministry of Law and Human Rights has issued Regulation No. 61 of 2016 on Procedures for the Imposition of Administrative Sanctions upon Notaries. This regulation essentially addresses two important matters, namely the types of administrative sanctions that may be imposed upon notaries, as well as the procedures involved in the imposition of said sanctions.
Govt. Redefines Emissions-Quality Standards for Certain Motor Vehicles
Tuesday, May 23, 2017
The Ministry of Environment and Forestry has finally taken the initiative and set higher emissions-quality standards for motor vehicles through the issuance of Ministry Regulation No. P.20/MENLHK/SETJEN/KUM.1/3/2017. This regulation mandates that both producers and importers of Category M, Category N and Category O motor vehicles now have to comply with the emissions standards which are commonly referred to as EURO 4.
Monthly Law Review
Monthly Law Review April 2017
Friday, April 28, 2017
Finally, after a long and exhausting election season, the people have made their decision. Jakartans will have a new governor after challengers Anies Baswedan and Sandiaga Uno defeated the incumbent Basuki Tjahaja Purnama and his running mate Djarot Saiful Hidayat in the recent Jakarta gubernatorial election. The winning couple has revealed details of their future plans for the capital city, following their inauguration which will take place in October, including the eagerly anticipated zero down-payment housing program, as well as an entrepreneurship mentoring program for micro-, small- and medium-scale enterprises (UMKM) which goes by the catchy name of OK-OCE. It is hoped that the new governor will be able to bring a breath of fresh air to the Indonesian capital’s business sector.
Monthly Law Review March 2017
Friday, March 31, 2017
Moving on, as the end of this month rolls around, we are also focusing upon several noteworthy business-sector regulations which have been issued over the course of the last four weeks. To begin with, within the energy sector, a new regulation on geothermal industry has finally been issued, specifically Government Regulation No. 7 of 2017 on the Indirect Utilization of Geothermal Industry.
Monthly Law Review February 2017
Tuesday, February 28, 2017
The ongoing dispute between the government and PT Freeport Indonesia has been very much in the spotlight throughout February 2017. Both parties have yet to reach an agreement regarding the conditions of the Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) which was granted to Freeport in order to replace its original Contract of Work (Kontrak Karya). Freeport subsequently invoked the arbitration clause in its Contract of Work, meaning that both parties have less than four months in which to settle their dispute amicably before an arbitration forum is set up. The dispute is considered to be one of the greatest challenges currently facing Indonesia and, whatever the outcome, it will surely affect the country’s future investment climate.