SSEK Celebrates 22nd Anniversary

SSEK anniversary

SSEK Legal Consultants is marking its 22nd year as the trusted Indonesian legal partner.

Founded in 1992 with the goal of delivering world-class legal services to clients, SSEK is today one of the largest and most respected firms in the country.

SSEK works with multinationals and domestic firms across all practice areas and industries and has been fortunate to work on some of the biggest, most important projects in Indonesia in the last 22 years.

In recognition of its work with clients, SSEK has received numerous honors from leading independent legal publications. These include being named the Chambers Asia Indonesian Law Firm of the Year in 2011 and 2013 and the Who’s Who Legal Indonesian Law Firm of the Year six times, most recently in 2014, the most of any firm in Indonesia. Read more »

Legal Guide to Oil Regulation in Indonesia: Regulation Overview

Lesser Sunda Islands (courtesy of NASA)

This is the second post in our 2014 Legal Guide to Oil Regulation. Fitriana Mahiddin and Syahdan Z. Aziz will address a new topic each week.

Principal legal framework regulating oil activities

The oil and gas sector in Indonesia is mainly regulated by Law No. 22 of 2001 regarding Oil and Natural Gas (the Oil and Gas Law). Upstream business activities are further regulated by Government Regulation No. 35 of 2004, as amended several times, lastly by Government Regulation No. 55 of 2009 regarding Upstream Oil and Natural Gas Business Activities (GR 35). Downstream business activities are regulated by Government Regulation No. 36 of 2004 regarding Downstream Oil and Natural Gas Business Activities, as amended by Government Regulation No. 30 of 2009 (GR 36).

The Oil and Gas Law grants the government the exclusive rights to oil and gas exploitation and requires all private companies wishing to explore for and exploit oil and gas resources to enter into cooperation contracts, based upon a production sharing scheme with the government (through the Special Task Force for Upstream Oil and Natural Gas Business Activities or SKK Migas) (previously the Implementing Body for Upstream Oil and Gas Business Activities or BPMigas). Read more »

Teamwork Makes the Dream Work at Law Firm Games

PPAKH

A unique tradition among the Indonesian legal community entered its second decade as the 20th annual Law Firm Games (Pertandingan Persahabatan Antar Konsultan Hukum or PPAKH) officially kicked off on Saturday, August 16.

With the theme “Teamwork Makes the Dream Work,” the games opened over the Independence Day weekend with a 5K Fun Run on Saturday. Lawyers and staff members from 16 of the biggest law firms in Jakarta donned costumes and completed a course around Pasar Festival Kuningan, with the first 50 finishers picking up medals.

Members of the SSEK family tapped into flower power and the 1960s vibe and decked themselves out in tie-dye and peace symbols for the run.

An all-day bazaar added to the festive spirt, with stalls set up by the different law firms selling food and goods. Read more »

SSEK Lawyers to Speak at IBA Conference in Tokyo

IBA Conference Tokyo

Two lawyers from SSEK Legal Consultants, a full-service corporate and commercial law firm based in Jakarta, Indonesia, will feature in three working sessions at the upcoming Annual Conference of the International Bar Association (IBA) in Tokyo.

Rusmaini Lenggogeni, the managing partner of SSEK, will speak on Wednesday, October 22, on “Targeting the Asian Market: Setting Up or Taking Over a Sales and Distribution Network in Asia.”

Western companies are pouring into the Asian market, including Indonesia, and this session will look at the best practices for sales and distribution Asia. Ms. Lenggogeni will discuss the establishment of distribution networks in Indonesia, either by way of green-field investment or joint ventures. Read more »

Which Goods Require Indonesian-Language Labels and What Is the Penalty for Failing to Comply?

Indonesian-language label

By Ade B. Adamy and Alvin Suryohadiprojo

The Minister of Trade has updated Regulation No. 67/M-DAG/PER/11/2013 regarding the Obligation to Affix Indonesian-Language Labels on Goods, with the issuance of Minister of Trade Regulation No. 10/M-DAG/PER/1/2014 dated January 30, 2014 (“MOT Reg. 67/2013″). This MOT Regulation requires that certain goods manufactured in Indonesia and certain imported goods traded in Indonesia carry a label in the Indonesian language. It is seen as a tool to ensure the right of consumers to receive clear information about the goods they purchase.

Goods Affected

Goods subject to the requirement for an Indonesian-language label are listed in the attachments of MOT Reg. 67/2013. They include:

  1. Electronic goods for households, telecommunications and informatics;
  2. Building materials; and
  3. Motor vehicle goods and spare parts.

In the amended 2014 Regulation, the Ministry of Trade has added tablet computers to the above list. Read more »

Legal Guide to Oil Regulation in Indonesia: Introduction

KONICA MINOLTA DIGITAL CAMERA

This is the first post in SSEK’s 2014 Legal Guide to Oil Regulation. Fitriana Mahiddin and Syahdan Z. Aziz will address a new topic each week.

Oil activities in Indonesia are classified as upstream (exploration and exploitation) or downstream (processing, transportation, storage and trading). In the upstream business, as of March 1, 2014, there are a total of 323 contract areas, 244 of which are in the exploration phase and 79 in the exploitation phase. The success rate for oil and gas exploration has consistently reached 69 percent since 2011. Most exploration and exploitation activities, both onshore and offshore, are carried out in western Indonesia. Major companies are involved in oil exploration and exploitation in Indonesia, including Chevron Pacific Indonesia, Total E&P, ConocoPhillips and ExxonMobil.

In 2012, Indonesia consumed approximately 1.384 million barrels per day of oil, or about 47 percent of Indonesia’s total energy consumption. Oil production per day in 2012 reached 874,790 barrels, or approximately 63.1 percent of Indonesia’s oil needs. Through Presidential Instruction No. 2 of 2012 regarding Increase of National Oil Production, Indonesia is targeting production of 1.01 million barrels per day by 2014. Read more »

SSEK Advises on Hong Kong IPO

deal-news-300x135

SSEK Legal Consultants, based in Jakarta, Indonesia, advised on Link Holdings Limited’s recent IPO and listing on the Hong Kong Stock Exchange by way of placement. Link Holdings, a hotel operator, has a subsidiary with assets in Indonesia.

SSEK advised the sole sponsor and underwriters of the IPO on all aspects of Indonesian law. Partner Fahrul S. Yusuf and foreign legal adviser Douglas G. Smith led the SSEK team advising on the IPO and listing, with SSEK associate Maria Yudhitama Eka Dewi assisting on the matter.

New Negative List Introduces Changes to Health Investment in Indonesia

Hospital

By Ira A. Eddymurthy and Alvin S. Suryohadiprojo

The Indonesian Government has released a new list of business fields that are closed to investment and business fields that are conditionally open to investment. The long-awaited New Negative List, issued under Presidential Regulation No. 39 of 2014, increases allowed foreign ownership levels in several key industries, including the health sector.

Under the New Negative List, foreign ownership in the pharmaceutical manufacturing industry, either for raw material drug manufacturers or finished drug manufacturers, is 85% (previously 75%). Despite the increase, foreign investors had been pressing for 100% foreign ownership to secure the intellectual property of their products. The long-term nature of drug manufacturing means foreign investors are also in the position that they will likely have trouble finding domestic partners.

One of the most common questions is whether a foreign investor can establish a hospital in Indonesia under the New Negative List. The New Negative List preserves the foreign ownership limitation in specialist/sub-specialist hospital services at 67%. Such limit also applies to specialist medical clinics and dental clinics. However the New Negative List removes the 200-bed minimum requirement for specialist/sub-specialist hospital services under the previous Negative List. Read more »

SSEK Named Tax Law Firm of Year for Indonesia

Acquisition International Tax Awards

SSEK Legal Consultants has been recognized as the 2014 Indonesian Tax Law Firm of the Year by Acquisition International magazine. The global awards recognize the outstanding achievements by firms over the last 12 months and are determined based on feedback from clients and peers.

SSEK, a full-service corporate and commercial law firm based in Jakarta, was earlier cited as one of Indonesia’s leading tax law firms in the 2014 edition of the Tax Directors Handbook.

Ira A. Eddymurthy, a founding partner of SSEK, was included in the Tax Directors Handbook’s TDH250, the elite list of the world’s leading tax advisers. Ms. Eddymurthy was one of only two lawyers in Indonesia to receive this honor. Inclusion on this list is determined through client feedback.

To access the full supplement announcing the winners of the 2014 Acquisition International Tax Awards, please click here.

Legal Guide to Vertical Agreements in Indonesia: KPPU and Enforcement

Vertical Agreements

This is the fifth and final post in our 2014 Legal Guide to Vertical Agreements by Fahrul S. Yusuf and Meta N. Mustikaningrum.

Notifying Agreements

47. Outline any formal procedure for notifying agreements containing vertical restraints to the authority responsible for antitrust enforcement.

There is no formal procedure for notifying agreements containing vertical restraints.

Authority Guidance

48. If there is no formal procedure for notification, is it possible to obtain guidance from the authority responsible for antitrust enforcement or a declaratory judgment from a court as to the assessment of a particular agreement in certain circumstances?

The Business Competition Supervisory Commission (“KPPU”) does not provide any formal guidance for the assessment of a particular agreement. It provides formal written guidance only in certain contexts, namely suggestions to the government, decisions on cases and opinions on mandatory post-merger notification. Read more »