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
Non-Fixed-Route Public-Transportation Service Regulation Revised: Striking a Balance Between Conventional and Application-Based Transportation Services
Friday, April 21, 2017
As we reached the end of this first quarter in 2017, the Ministry of Transportation has issued the highly contentious Regulation No. PM 26 of 2017 on the Organization of Non-Fixed-Route Public-Transportation Services, which becomes the new framework for the organization of said transportation services, including application-based transportation services. This regulation repeals and replaces the previous framework originally set out under Ministry Regulation No.PM 32 of 2016 on the same matter and is attempting to offering greater legal certainty for the organizers of both non-fixed-route, public-transportation services in general, and application-based transportation services in particular. In this context, the new framework incorporates a number of essential revisions which relate to at least 11 areas, including: the categorization of application-based transportation services, minimum engine capacities for vehicles which are utilized for the provision of said services, vehicle quotas, roadworthiness inspections and requirements for digital dashboards. This edition of ILD will elaborate upon the key provisions which are addressed throughout the 72 Articles which have been incorporated into Regulation 26/2017, specifically the inclusion of various categories and criteria for each type of non-fixed-route, public-transportation service and their vehicles, as well as the licensing requirements and procedures which have to be met by the organizers of said services. A number of other provisions which have to be met by online transportation application providers are also addressed by the regulation, as are sanctions for any violations relating to the organization of non-fixed-route transportation services.
P2P Lending: The New Banking Alternative
Thursday, April 13, 2017
A wave of innovation took hold of the financial sector in the wake of the global financial crisis of 2008-2009 when previously time-consuming, lengthy and rigid banking procedures made way for more inventive lending and borrowing options. The result was the rise of so-called peer-to-peer (“P2P”) lending, which offered simplified and expedited procedures, speedy lending decisions and better interest-rate deals for borrowers, as well as lenders. In a bid to shed a little light on P2P lending, this week’s edition of Indonesian Law Digest (ILD) will analyze and address several of the key areas which relate to this field, including a general outline of P2P lending and P2P lending within Indonesia.
Draft Government Regulation on Food Labeling and Advertising
Friday, April 07, 2017
A new Draft Government Regulation on Food Labeling and Advertising is currently being cooked up in the government’s legislative kitchen in a bid to improve consumer protection. In essence, the Draft Regulation sets out in greater detail the information that both should and should not be listed on food labels or addressed by advertisements for food products, with public participation taking center stage as the primary key to achieving greater public awareness.
Indonesian Legal Brief
Provisions on the Reconciliation, Depositing and Reporting of Geothermal Production Bonuses Further Regulated
Thursday, April 27, 2017
The Ministry of Energy and Mineral Resources has issued Regulation No. 23 of 2017 on Procedures for the Reconciliation, Depositing and Reporting of Geothermal Production Bonuses, which is an implementing regulation to the provisions originally set out under Government Regulation No. 28 of 2016 and which relates to the following matters: 1) Annual geothermal steam and/or electrical-power production plans; 2) The imposition and calculation of geothermal production bonuses; 3) The reconciliation of production-bonus calculations; 4) The determination of production-bonus amounts and deposits; and 5) Mandatory reporting.
Foreign OTT Providers to Be Classified as Permanent Establishments
Wednesday, April 26, 2017
Endless efforts have been made by the Indonesian government to raise tax revenue from the profits which are generated by so-called over-the-top players. More recently, the Director General of Tax issued Circular Letter No. SE-04/PJ/2017 on the Determination of Permanent Establishments for Foreign Tax Subjects Which Are Providers of Applications and/or Content Services Through the Internet in a bid to classify Foreign OTT Providers as BUT which can be considered tax subjects under Indonesian taxation laws and regulations.
OJK Introduces Provisions on the Stipulation of Supervision Status and Follow-Up Measures for Commercial Banks
Tuesday, April 25, 2017
In a bid to improve the supervision of commercial banks and also as a follow up to Law No. 9 of 2016 on the Prevention and Control of Financial-System Crises, the Financial Services Authority has issued Regulation No. 15/POJK.03/2017. This new regulation sets out a new set of guidelines for the stipulation of supervision statuses and relevant follow up activities for commercial banks, which are now divided into systematically important banks and non-systematically important banks.
Monthly Law Review
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.
Monthly Law Review January 2017
Tuesday, January 31, 2017
This edition of Monthly Law Review will outline the key aspects of 114 regulations which were issued in end of December 2016 and January 2017, and we have classified these various regulations into Energy and Natural Resources, Financial Service, Tax, Manufacturing and Industry, Telecommunication and Media, Trade, General Corporate, Litigation, as well as a number of other sectors which we have grouped under the Miscellaneous banner.