Insurance and Reinsurance in Indonesia

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SSEK Indonesian Legal Consultants founding partner Ira A. Eddymurthy and Maria Yudhitama, an associate at the firm, have contributed the Indonesia chapter of the new Practical Law global guide to insurance and reinsurance.

SSEK Legal Consultants has one of the leading insurance law practices in Indonesia and has been involved in numerous high-profile cross-border transactions. SSEK’s insurance clients include ACE, Chartis Insurance, Dai-ichi Life and Prudential.

The following is an extract from the Indonesia chapter of the Practical Law global guide to insurance and reinsurance written by SSEK Legal Consultants.

Market trends and regulatory framework

The main trend in the insurance and reinsurance business over the last 12 months has been the acquisition of existing Indonesian insurance and reinsurance companies, rather than the establishment of new insurance/reinsurance companies (greenfield projects).

The 2014 report of the Financial Services Authority (Otoritas Jasa Keuangan) (OJK), the authority that oversees the Indonesian insurance industry, shows a 40% increase in insurance claims in 2014. In the authors’ view, this was due to the numerous natural disasters that occurred in Indonesia in 2014 including floods, earthquakes and air disasters.

Regarding underwriting, there has been an emphasis on implementing the “know your customer” (KYC) principle as a tool to prevent insurance and reinsurance companies being used to launder money. The KYC principle is mainly applied to perceived high-risk persons (such as civil servants and public officials) and high-risk companies (such as property agents and automotive dealers). Read more »

Richard Emmerson of SSEK Named Leading Labor and Employment Lawyer

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Richard D. Emmerson, a senior foreign legal advisor at SSEK Indonesian Legal Consultants, has been selected for inclusion in the 2015 edition of Who’s Who Legal: Labor & Employment, an authoritative guide to the world’s leading labor and employment lawyers. He is one of only three lawyers in Indonesia to be recognized.

Richard is the supervising advisor of SSEK’s highly rated labor and employment practice. An advisor to SSEK since 1996, Richard has more than 25 years of experience as a corporate-commercial lawyer. In addition to labor and employment, his practice includes foreign investment planning, the establishment of subsidiaries and joint venture companies and their ongoing corporate and commercial affairs, corporate restructuring, and mergers and acquisitions.

Richard has been recognized by Who’s Who Legal as one of Indonesia’s leading labor and employment practitioners every year since 2010. He is ranked as a top-tier employment lawyer for Indonesia by Chambers & Partners and Asialaw. Richard is also recognized by Chambers & Partners as one of Indonesia’s leading real estate lawyers. Read more »

Indonesia: New Labor Regulations

By Mohammad Irham

Indonesia’s Ministry of Manpower and Transmigration (“MOMT”) has issued three regulations:

  1. MOMT Regulation No. 27 of 2014 on the Amendment of MOMT Regulation No. 19 of 2014 regarding Outsourcing Requirements dated December 31, 2014 (“MOMT Reg 27/2014″);
  2. MOMT Regulation No. 28 of 2014 on Drafting and Ratification Procedures for Company Regulation and the Registration of Collective Employment Agreements dated December 31, 2014 (“MOMT Reg 28/2014″); and
  3. MOMT Regulation No. 3 of 2015 on Standard Operational Procedures for the Issuance of Foreign Manpower Utilization License through the One-Stop Integrated Services of the Indonesian Capital Investment Coordinating Board (“BKPM”) dated January 25, 2015 (“MOMT Reg 3/2015″).

MOMT Reg 27/2014, as the title suggests, amends a previous regulation. The two amendments introduced by the regulation clarify some questions that foreign investors may have had about outsourcing. MOMT Reg 27/2014 confirms that foreign investors – foreign nationals, foreign companies or foreign governments – are covered by the provisions contained in MOMT Reg 27/2014 and the previous regulation and that all relevant licensing shall be processed through the BKPM. Read more »

Legal Alert July 2015

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Please find attached the latest Legal Alert for July 2015

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_July 2015

Indonesia Introduces New Visitor Visa Exemption

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By Awang Fahrizal Bahrin

The Indonesian government recently issued Presidential Regulation No. 69 of 2015 regarding Visitor Visa Exemptions (“PR 69/2015″). The purpose of PR 69/2015 is to improve the relationship between Indonesia and other countries by waiving the visa requirement for visitors from certain countries to enter Indonesia. PR 69/2015 is also intended to benefit national development in general and the economy in particular.

Visitor visa exemptions were previously regulated under Presidential Decree No. 18 of 2003 regarding Short Visit Visa Exemptions, which has been amended several times, lastly by Presidential Regulation No. 43 of 2011 regarding the Third Amendment of Presidential Decree No. 18 of 2003 (“PR 18/2003″). PR 69/2015 introduces new countries whose citizens are exempted from the requirement to obtain a visa to enter Indonesia for tourism purposes. PR 69/2015 also requires foreign nationals taking advantage of such visitor visa exemption  to enter the country through specified immigration checkpoints, which was not stipulated under PR 18/2003.

Below is the list of new countries whose citizens are exempted from visitor visa for tourism purposes and the said specified immigration checkpoints: Read more »

SSEK to Speak at Indonesia HR and Employment Law Seminar

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Richard D. Emmerson, a senior foreign legal advisor at SSEK Indonesian Legal Consultants, and Dicky Tanjung, a senior associate in SSEK’s employment law practice, will speak on Wednesday, July 29, as part of the two-day Indonesia HR and Employment Law seminar organized by Clariden Global.

This two-day seminar, scheduled for July 28-29 at the Shangri-La Hotel in Jakarta, is designed to provide participants with comprehensive knowledge of the Indonesian employment framework, the different types of employment, key aspects for employment agreements and how to navigate outsourcing agreements. Attendees will also learn to effectively handle employment complications involving expatriates and employee wages.

SSEK’s Richard Emmerson and Dicky Tanjung will discuss various issues connected to wages and compensation, including minimum wage and bonus rules and severance packages. They will also examine regulations and rules for labor unions and collective agreements. Read more »

ASEAN: Will the Puzzle Pieces Fit?

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The latest edition of Asian-MENA Counsel features a story on the ASEAN Economic Community (AEC), which is due to be in place by the end of this year.

There is much debate surrounding the implementation of the AEC and whether the region’s 10 jurisdictions can come together to create a global economic powerhouse. Asian-MENA Counsel looks at issues with the integration and potential teething problems and opportunities.

As part of its cover story on ASEAN and the AEC, Asian-MENA Counsel spoke with one of the founding partners of SSEK Indonesian Legal Consultants, Ira A. Eddymurthy.

Ira touched on ASEAN’s Mutual Recognition Arrangement (MRA) and said: “Skilled workers will likely gravitate toward states that are centres for their occupation, where their expertise will be highly valued. However, it is unlikely that states, including Indonesia, will be quick to ease restrictions on expatriate workers, noting the reservations toward employment matters in the ratification of the ACIA [ASEAN Comprehensive Investment Agreement] and the extent of states’ commitments in the ASEAN Framework Agreement on Services.” Read more »

Legal Alert June 2015

Legal Alert (small icon)

Please find attached the latest Legal Alert for June 2015

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_June 2015

Indonesia, ASEAN and Investment

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With the increased interest in Indonesia and the impending completion of the ASEAN Economic Union, foreign investors are looking for a means to do business in Indonesia. SSEK discusses the revised Negative Investment List, the impact of the ASEAN Free Trade Area on Indonesia and Bilateral Investment Treaties.

  • A new major development in Indonesian trade law has been the revised Negative Investment List (DNI), which has essentially opened up some business sectors to foreign investment by ASEAN member countries How will this revised list help to strengthen ASEAN as a whole and position Indonesia within it?

The issuance of the Indonesian Trade Law (Law No. 7 of 2014) did not have a significant impact on the Negative Investment List, which is issued in a Presidential Regulation and governs those lines of business that are closed to foreign investment or open with restrictions. Indonesia’s first trade law was issued to, among other things, provide a legal basis for the issuance of regulations in the field of trade. Most of the provisions in the Indonesian Trade Law have already been regulated under Minister of Trade regulations or regulations issued by other ministries.

In the trade sector, research and public polling services is the only line of business open only to foreign investors from ASEAN countries under the new Negative Investment List. The new Negative Investment List was promulgated under Presidential Regulation No. 39 of 2014 regarding the List of Business Fields that Are Closed and Open with Conditions in the Investment Sector (PR 39/2014). Research and public polling services is open to a maximum 51% foreign ownership for investors from ASEAN countries and is closed for foreign investors from non-ASEAN countries. Read more »

SSEK a Top-Ranked Firm for Energy and Infrastructure in New IFLR1000 Guide

IFLR Energy & Infrastructure (2015) Recommended Firm Rosette

SSEK Legal Consultants has been recognized as one of Indonesia’s leading energy and infrastructure firms by IFLR1000 in the 2015 edition of its guide to the industry’s leading law firms and lawyers.

SSEK is described as a “sophisticated practice when it comes to projects, infrastructure and energy work.”

Founding partner Ira A. Eddymurthy and senior foreign legal advisors Darrell R. Johnson and Michael D. Twomey are recognized as leading energy and infrastructure practitioners.

Also singled out for mention by IFRL1000 for their work in project finance, mining, and oil and gas are Fitriana Mahiddin, Jonathan M. Streifer and Michael S. Carl.

For the full rankings, please click here. Read more »