Legal Alert January 2018

Legal Alert

Please find the SSEK Legal Alert for January 2018. The SSEK Legal Alert is a monthly survey designed to keep you up to date with the latest legal developments in Indonesia. Read more »

Indonesian Manpower Ministry Issues Regulation on Delegation of Licensing Authority to the BKPM

Labor & Employment

The Indonesian Ministry of Manpower has issued a regulation concerning the delegation of some licensing authority to Indonesia’s Investment Coordinating Board (Badan Koordinasi Penanaman Modal or “BKPM”).

Ministry of Manpower Regulation No. 22 of 2017 regarding the Implementation of the One-Stop Integrated Service (Pelayanan Terpadu Satu Pintu or “PTSP”) for the Manpower Sector at the Investment Coordinating Board (“Regulation 22/2017″) was issued in December.

One-Stop Service at BKPM

The general concept of the PTSP was introduced several years ago, through Presidential Regulation No. 97 of 2014 on the Arrangements of PTSP. Regulation 22/2017 is, in essence, a compilation of previous Manpower Ministry regulations governing the implementation of PTSP for the manpower sector. Regulation 22/2017 revokes these previous regulations but does not introduce any substantial changes.

Regulation 22/2017 defines PTSP as an integrated service through a single, unified process, from the application stage through the final delivery of the product or service, all through one door. Read more »

Free Employment Law Alliance Webinar on New Data Protection & Privacy Regulations in the EU

ELA

The Employment Law Alliance is offering a free 90-minute webinar on Wednesday, March 7 on “New Data Protection & Privacy Regulations in the EU.”

This webinar will provide an overview of the major changes in the European personal data protection legal framework introduced by the General Data Protection Regulation (GDPR). You will hear perspectives from experienced legal counsel in the Czech Republic, Germany and the Netherlands. The webinar will also include a presentation by a Russian expert on personal data protection issues existing for multinational companies operating both in the EU and in Russia.

Attendees will be provided with recommendations and strategies to navigate the challenges of complying with the new requirements.

For more information about the webinar and to register, please click here.

Read more »

Update on Employment Law in Indonesia and Asia

Labor & Employment

SSEK Legal Consultants has contributed the Indonesia chapter to the new Asia Employment Law, a quarterly review of employment law developments across 14 jurisdictions in Asia.

Asia Employment Law: Quarterly Review is designed to help legal and human resources advisers stay up to date on employment-related legal developments in Indonesia and around Asia.

For the Indonesia chapter of the Employment Law review, click here.

You can see the full report here. Read more »

SSEK Contributes Indonesia Chapter to Oil & Gas Regulation Guide

Oil & Gas Regulation 2018

SSEK partners Fitriana Mahiddin and Syahdan Z. Aziz have contributed the Indonesia chapter to the International Comparative Legal Guide to: Oil & Gas Regulation 2018.

Fitriana and Syahdan provide a comprehensive overview of the oil and gas sector in Indonesia. They examine issues related to exploration and production, licenses, royalties, taxation, contracts, local content rules, environmental regulations and more.

Fitriana is a supervising partner of SSEK’s oil and gas practice. She has represented numerous leading offshore and local upstream oil and gas companies. Fitriana is recognized as a leading lawyer for energy and natural resources. Read more »

SSEK Advisor Recognized as Leading Restructuring & Insolvency Lawyer for Indonesia

Darrell R. Johnson

Darrell R. Johnson has been recognized as a leading restructuring and insolvency lawyer in the new edition of Who’s Who Legal: Restructuring & Insolvency, a guide to the leading restructuring and insolvency lawyers around the world. Darrell was one of just two lawyers recognized in Indonesia.

Darrell is a supervising advisor for SSEK’s restructuring and insolvency practice and has extensive experience working with the largest companies doing business in Indonesia. He is praised by clients as a “fantastic lawyer who always gives first-class advice.”

In addition to being recognized by Who’s Who Legal, Darrell is acknowledged by Chambers Asia-PacificLegal 500IFLR1000 and Asialaw as a leading lawyer in the areas of banking and finance, corporate/M&A, and projects and energy. Read more »

Indonesian Manpower Regulation Changes Procedures for Companies Submitting Mandatory Employment Reports

Labor & Employment

The Indonesian Ministry of Manpower has issued a new regulation that is meant to improve the registration process and enhance legal protections for workers. What this means for employers is new reporting procedures, including the online submission of mandatory manpower reports.

New Manpower Regulation

Minister of Manpower Regulation No. 18 of 2017 (“Regulation 18/2017″) regarding Procedures for Online Mandatory Manpower Reports was issued last November. It is an implementing regulation for Law No. 7 of 1981 (“Law 7/1981″) and replaces a 2006 regulation on the manual submission of manpower reports.

Main Provisions of New Regulation

Regulation 18/2017 introduces a number of changes including the online submission of reports and the time periods for the submission of reports. It also introduces changes to how data from submitted reports is handled. Read more »

SSEK Indonesian Legal Consultants Wins China Business Law Journal Deal of Year Award

CBLJ Deals of the Year 2017-300dpi

SSEK Indonesian Legal Consultants has won a 2017 Deal of the Year Award from China Business Law Journal for its work on China Hongqiao Group’s alumina refinery development and financing in Indonesia.

Click here to read the full report (see the Chinese version here).

Michael S. Carl led the SSEK team that advised China Hongqiao Group, with international counsel Orrick Herrington & Sutcliffe (Hong Kong), on this US$1.5 billion project, including the successful closing of project financing.

This was the first big Chinese-invested alumina refinery development and financing in Indonesia. Read more »

SSEK Lawyers Recognized as Leaders in New Legal 500 Asia Pacific Rankings

Legal 500 2018 Leading Individual

Five partners and foreign legal advisors at SSEK Legal Consultants have been recognized as Leading Lawyers for their work in multiple practice areas in The Legal 500 Asia Pacific 2018 guide to the region’s top lawyers and law firms.

SSEK’s Leading Lawyers are Dyah Soewito (Projects & Energy, Shipping); Ira A. Eddymurthy (Banking & Finance, Capital Markets, Corporate/M&A); Darrell R. Johnson (Projects & Energy); Michael D. Twomey (Corporate/M&A); Michael S. Carl (Corporate/M&A, Restructuring & Insolvency).

Read more »

Tax Treatment for Gross Split Production Sharing Contracts in Indonesian Oil and Gas Sector

KONICA MINOLTA DIGITAL CAMERA

By Ira A. Eddymurthy and Fransiscus Rodyanto

The Government of Indonesia (“GOI“) first regulated Gross Split Production Sharing Contracts (“Gross Split PSC“) in early 2017, with the enactment of Minister of Energy and Mineral Resources (“MEMR“) Regulation Number 8 of 2017 regarding Gross Split Production Sharing Contracts, as amended by MEMR Regulation Number 52 of 2017 regarding the Amendment of MEMR Regulation Number 8 of 2017 (August 29, 2017) (“MEMR Reg. 8/2017, as amended“). Despite this new regulatory push, however, as of the date of this article, the GOI has only executed one Gross Split PSC, with PT Pertamina Hulu Energi Offshore North West Java, for the Offshore North West Java Block.

In response to this apparent lack of interest from investors, the GOI issued a regulation on December 28, 2017, on the tax treatment for Gross Split PSCs, Government Regulation Number 53 of 2017 regarding Tax Treatment for Upstream Oil and Gas Business Activities with Gross Split Production Sharing Contracts (“GR 53/2017“). The GOI hopes the tax treatment under GR 53/2017 will attract more investors to Gross Split PSCs. Read more »