New Registration Rules for Integrated Construction Service Companies in Indonesia

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By Awang Fahrizal Bahrin

Indonesia’s Construction Services Development Institute (“LPJK”) has issued LPJK Regulation No. 5 of 2014 regarding Integrated Construction Services Registration, dated June 11, 2014 (“LPJK Reg. 5/2014″ or “New Regulation”).

LPJK Reg. 5/2014 revokes LPJK Decision No. 15/KPTS/LPJK-N/II/2012 regarding Procedures for the Re-Registration, Renewal of Terms, New Certificate Request of Integrated Construction Service Entities (“LPJK Dec. 15/2012″).

Changes in New Regulation

The New Regulation amends the requirements for the issuance of the Business Entity Certificate (Sertifikat Badan Usaha or “SBU”) for integrated construction service companies. The SBU will be issued based on the Classification and Qualification of the business entity in question, as stipulated in the New Regulation. Read more »

Legal Alert October 2014

Legal Alert - 2012

Please find attached the latest Legal Alert for October 2014.

The SSEK Legal Alert is a monthly survey designed to keep you up to date with the latest legal developments in Indonesia.

Click here: Legal Alert October 2014

Update on Indonesian Employment Law

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Richard D. Emmerson, a senior foreign legal advisor at SSEK Legal Consultants, has contributed the Indonesia chapter to Asia Employment Law, quarterly review of employment law developments across 15 jurisdictions in Asia. The review is designed to help legal and human resources advisors stay up to date on employment-related legal developments around Asia.

In this latest edition of Asia Employment Law, Mr. Emmerson highlights a number of issues related to labor and employment law in Indonesia, including new minimum wages, the recruitment of foreign employees and training for companion employees, and national holidays and collective leave for 2015. Read more »

Free Employment Law Alliance Webinar

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The Employment Law Alliance (ELA) is offering a free 90-minute webinar on Thursday, December 4, on Privacy v. the Employer’s Right to Know: Hot Issues that Straddle the Can-Am Border.”

Program Description

Workplace privacy continues to be an important focus for employers, particularly those who operate in both Canada and the U.S. While most businesses try hard to protect their employees’ privacy and avoid getting involved in their off-duty activities, there are times when an employer is faced with the prospect of legitimately needing to look into or take into account an employee’s personal life. This webinar brings together a panel of legal experts from Canada and the U.S., who will provide practical guidance on how to successfully navigate and resolve these issues in their respective countries. They will address:

  • Medical or legal marijuana – Does it change the analysis? Can employers restrict its use or presence in the workplace?
  • The latest rules and development on drug and alcohol testing of employees – and whether medical drug use changes the equation.
  • Criminal records searches and privacy issues – Just how deeply can employers (or prospective employers) “dig” into an employee’s background and what information is permissible to access? Read more »

Expert Guide: Discrimination Law in Indonesia

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SSEK’s Richard D. Emmerson has written an article on Discrimination Law in Indonesia for the Corporate LiveWire Expert Guide on Discrimination Law and Equality 2014.

As Richard notes, Indonesia does not have an overarching anti-discrimination law. Rather, a patchwork of laws and sector-specific regulations prohibit discrimination and encourage equality.

The relevant laws include:

  • the 1945 Constitution;
  • the Labor Law (Law No. 13 of 2013 on Labor);
  • Law No. 21 of 1999 and Law No. 80 of 1957;
  • Law No. 4 of 1997 on Disabled People; and
  • Law No. 40 of 2008 on the Elimination of Racial and Ethnic Discrimination.

These laws stipulate that all Indonesian shall have equal opportunity without discrimination to obtain work and shall be entitled to equal treatment from the employer without discrimination.

They also cover more specific issues that all employers must be aware of such as employment background investigations, leaves of absence, harassment, privacy and union activity. Read more »

Free Webinar on Prevention and Redressal of Workplace Sexual Harassment in India

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The Employment Law Alliance is offering a free webinar on “Prevention and Redressal of Sexual Harassment at Work – Employer Obligations in India.” The webinar will be offered on November 12th and 14th, with the same content each time.

Workplace sexual harassment is an important topic for companies doing business in India. In December 2013, the Indian legislature passed a law on the prevention of sexual harassment of women at the workplace. This law introduced various new obligations and penalties (including the potential loss of license to operate in India) for companies in the country.

It is essential for companies to understand the nuances of this law and suitably modify their HR practices to ensure compliance. Read more »

Michael Carl of SSEK Included in Indonesia Mining Report

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Global Business Reports has produced a comprehensive report on Indonesia’s mining industry for the Energy & Mining Journal. The report, titled “Indonesian Mining Industry in Transition: Navigating the World’s Last Great Mining Frontier,” looks at developments in the sector and the prospects for future investment.

The report notes that Indonesia is among the world’s largest exporters of nickel, thermal coal and refined tin, but that regulatory uncertainty continues to be an issue for investors.

GBR interviewed industry experts in researching the report. Among those contacted was SSEK’s Michael S. Carl, who looked at the direction of investment in the mining sector and the role of foreign players. Read more »

Bank Indonesia Regulations on Foreign Exchange Transactions

Bank Indonesia in Yogyakarta by B10m

By Andini H. Dewi

Bank Indonesia (“BI”) recently issued several regulations related to foreign exchange transactions by Indonesian banks, which update existing regulations issued by BI. Below is a brief summary of the new regulations: Read more »

SSEK Wins 3 Trophies at ALB Indonesia Law Awards

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SSEK Legal Consultants was honored three times at the inaugural ALB Indonesia Law Awards, underscoring the depth and quality of the firm.

SSEK was recognized as the Construction Law Firm of the Year and the Employment Law Firm of the Year. SSEK also won Real Estate Deal of the Year.

Rusmaini Lenggogeni, SSEK’s managing partner, said the awards were special because they were recognition of the work done by SSEK and the firm’s strong relationship with its clients. “I want to thank all of our clients for placing their trust in SSEK and giving us the opportunity to do award-winning work.” Read more »

Foreign Investment in Indonesian Real Estate

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By Dyah Soewito and Denny Rahmansyah

Indonesia’s Agrarian Law provides that foreigners can only acquire right to use (hak pakai) title for land if they reside in Indonesia. If foreign investors wish to engage in business in Indonesia, they must establish a foreign capital investment (PMA) company.

A PMA company is able to acquire a right to build (HGB) or a hak pakai title. The HGB or hak pakai title may also be placed over the seller’s pre-existing right of ownership (hak milik) or right to manage (hak pengelolaan) titles. Under the applicable regulation, individual foreigners are allowed to own residential property under the hak pakai title. Specifically, foreigners who provide benefits to national development, reside permanently or temporarily in Indonesia, and have proper immigration documents can purchase the following: Read more »