SSEK Hosts Seminar on Land and Property Sector in Indonesia

Real Estate & Property

SSEK Legal Consultants recently hosted a seminar on Indonesia’s land and property sector. Denny Rahmansyah, a partner in SSEK’s land and property practice, and Michael D. Twomey, the supervising foreign advisor for the practice, were the featured speakers.

Denny covered the legal framework for Indonesia’s land and property sector, discussing land titles in Indonesia, foreign ownership of land, land acquisition, land-related taxes and recent developments in the sector. Michael discussed various issues and concerns related to land due diligence.

Also speaking at the event was John Lauwrenz, a partner in Deloitte Tax Solutions, who gave a presentation on tax aspects of the Indonesian land and property sector. Read more »

SSEK Advisor Michael Carl Discusses FDI in Indonesia at LAWASIA Conference

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Michael S. Carl, an international legal advisor at SSEK Indonesian Consultants, was a featured speaker at the recent LAWASIA Conference in Colombo, Sri Lanka.

Michael discussed foreign direct investment in Indonesia and the effects and opportunities of the Trans-Pacific Partnership (TPP) and China’s One Belt, One Road initiative.

Michael joined SSEK in 2004 and has nearly 20 years of experience practicing law in Southeast Asia. Before joining SSEK, he was associated with the international law firm Baker & McKenzie in its Singapore and Bangkok offices, where he represented Indonesian and Thai concerns in US debt and equity offerings and debt restructurings. Read more »

New Incentives for the Development of Solar Photovoltaic Plants in Indonesia

Solar Panels

By Syahdan Z. Aziz and Farah Nabila

Indonesia has set an ambitious national energy target of 125 GW of installed capacity at power plants by 2025. As of 2016, installed capacity has not reached even half the targeted number. In an attempt to support the development of power plants in Indonesia, the Government of Indonesia, through the Ministry of Energy and Mineral Resources, has introduced a new regulation that is intended to promote the development of solar power plants. This new regulation is Minister of Energy and Mineral Resources Regulation No. 19 of 2016 regarding Power Purchase from Solar Photovoltaic Plants by PT PLN (Persero) (“PLN”) (hereinafter referred to as “MEMR Reg No. 19/2016″).

Previous Regulation on Solar Power Plants

MEMR No. 19/2016 was enacted to replace and perfect the initial policy on solar plants, which was introduced by Minister of Energy and Mineral Resources Regulation No. 17 of 2013 regarding Power Purchase by PLN from Solar Photovoltaic Plants (“MEMR Reg No. 17/2013″). MEMR Reg No. 17/2013 introduced a solar power tender program in Indonesia and obliged PLN, the Indonesian state-owned electricity company, to purchase electricity generated by solar photovoltaic projects on the basis of a Power Purchase Agreement (“PPA”). However, in 2015, the Supreme Court annulled MEMR Reg No. 17/2013 on the grounds that the regulation did not require the use of local content by foreign investors developing solar photovoltaic plants. Read more »

Legal Alert August 2016

Legal Alert (for blog post)

Please find the SSEK Legal Alert for August 2016. The SSEK Legal Alert is a monthly survey designed to keep you up to date with the latest legal developments in Indonesia. Read more »

Recent Legal Developments in the Indonesian Real Estate Sector

Real Estate & Property

By Dyah Soewito and Denny Rahmansyah

When discussing Indonesia’s real estate sector, two recent legal developments are particularly interesting. First, Indonesian President Joko Widodo recently issued Presidential Instruction No. 3 of 2016 regarding Simplification of Licensing in Housing Construction (“Presidential Instruction 3/2016″). This presidential instruction calls for ministers and heads of regional governments to simplify the policies, requirements and process to obtain the licenses required for the construction of housing. The issuance of Presidential Instruction 3/2016 followed the announcement of the government’s “one million housing” program, which, as the name suggests, is aimed at building a million houses for lower-income families.

It will take time to evaluate the effect of Presidential Instruction 3/2016, but in the months immediately following its issuance developers reported the same difficulties and challenges in obtaining the necessary licenses, in particular obtaining licenses from regional government authorities, which due to regional autonomy, have broad authority and discretion in the issuance of licenses for activities within their regions, including for real estate development. Read more »

Legal Review: Public-Private Partnerships in Indonesia

Infratructure

The concept of Public-Private Partnerships (“PPP”) embodies one or more private parties comprising a consortium, commonly consisting of construction companies, operating companies and financiers that together undertake to finance and develop a project or asset for use by the government on behalf of the public and to be paid for over time. The types of projects and assets are normally infrastructure related and are of interest to investors because of the government’s support and guarantee of repayment.

The Government of Indonesian (the “GOI”) has put forward pro-PPP policies since early this millennium, although only a handful of projects have been completed successfully. In many cases, the work has been awarded to state-linked enterprises and may not be considered PPPs. That said, the GOI has evidenced its intent to improve the development of PPP projects in Indonesia by making them more appealing to investors.

Recent Regulations Read more »

Darrell Johnson of SSEK Moderates AmCham Seminar on New Indonesian Tax Amnesty Program

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Darrell R. Johnson, the senior foreign legal advisor at SSEK Legal Consultants, moderated a seminar organized by the American Chamber of Commerce in Indonesia on Indonesia’s new Tax Amnesty Law.

The seminar, “Tax Amnesty: How it Affects You and Your Company,” was held on Wednesday, August 24, and featured speakers from Ernst & Young and PricewaterhouseCoopers. The discussion focused on Indonesia’s new tax amnesty program and its impact on expatriates and foreign companies.

Darrell Johnson has resided in Indonesia for nearly 40 years. His expertise includes Indonesian finance, banking and capital markets law, foreign investment law, oil and gas law, mergers and acquisitions, insurance law and corporate and commercial law. He is a Governor of the American Chamber of Commerce in Indonesia.

SSEK Partner, Adviser Recognized as Leading Energy Lawyers for Indonesia

IEA and MDT

Ira A. Eddymurthy and Michael D. Twomey of SSEK Indonesian Legal Consultants have been recognized as leading energy lawyers in the 2016 edition of Who’s Who Legal: Energy.

Ira, a founding partner of SSEK, has extensive experience working with multinationals and large domestic companies on some of the biggest, most complex projects in Indonesia. Clients praise Ira as a “consummate expert” and laud her “sophisticated knowledge of Indonesian law” and her “comprehensive knowledge and understanding of the commercial aims of clients.”

In addition to energy, Ira is recognized by Who’s Who Legal as one of Indonesia’s leading lawyers for banking, mergers and acquisitions, and project finance. Ira is also recognized by Chambers & Partners as a leading lawyer for corporate/ M&A, by The Legal 500 for banking and finance, capital markets and corporate/M&A, by Asialaw for capital markets and corporate/M&A, and by IFLR1000 for banking, capital markets, corporate/M&A, energy and infrastructure, and project finance.

Michael is a senior foreign legal adviser at SSEK. He is extensively involved in major and highly complex transactions in the upstream and downstream oil and gas sectors, as well as the private power, mining and shipping sectors. He counts numerous successful projects to his name, including the development, financing and refinancing of oil and gas and mineral extraction and processing projects, private power projects, pipeline and gas projects, and other deals involving oil, natural gas and other natural resources. Read more »

Real Estate Disputes in Indonesia

RealEstate&Property

By Dyah Soewito and Denny Rahmansyah

“Real estate” is a very broad subject that touches many aspects of Indonesian law, e.g., administrative law, environmental law, construction law, civil law, agrarian/land law, etc. There is no arbitration facility or process specifically designed to accommodate real estate matters under Indonesian law. Disputes related to real estate are treated in a similar manner as any other dispute in Indonesia.

Concerning dispute settlement through arbitration, Indonesia has enacted Law No. 30 of 1999 regarding Arbitration and Alternative Dispute Resolution (“Arbitration & ADR Law”). Under the Arbitration & ADR Law, parties may resolve a dispute through arbitration only after they have agreed to arbitration as the dispute settlement mechanism. For agreements, including agreements related to real estate (e.g., construction agreements or lease agreements over building or office space), the parties will usually insert an arbitration clause if they prefer arbitration to settle any dispute arising from such agreements.

The most widely recognized national arbitration body in Indonesia is the Indonesian National Arbitration Board (Badan Arbitrase Nasional Indonesia or “BANI”). When a foreign counterpart is involved, the parties often choose an international arbitration body such as the Singapore International Arbitration Centre (“SIAC”) or the International Chamber of Commerce (“ICC”) to settle their dispute.

The rules of the arbitration depend on the parties’ agreement. As an illustration, if the parties choose BANI to resolve their dispute, the process is (i) submission of an application for a notice of arbitration, (ii) response to the notice of arbitration, (iii) appointment of arbitrator(s), (iv) payment of the arbitration fees, (v) examination of the case, (vi) proceedings, and (vii) award. Read more »

SSEK Advises Shinhan Investment Corp. on Acquisition of Indonesian Securities Company

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SSEK Legal Consultants has acted as Indonesian counsel to Shinhan Investment Corporation, one of South Korea’s leading securities brokerage and investment banking houses, in its acquisition of Indonesian securities company PT Makinta Securities. Fahrul S. Yusuf, a partner at SSEK, and Jonathan M. Streifer, a foreign legal advisor at the firm, led the SSEK team advising on the transaction. Kim & Chang was Shinhan Investment Corporation’s counsel in South Korea.