Indonesian Labor Law and the Hospitality Industry

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By Richard D. Emmerson

Indonesia’s hospitality industry is enjoying strong growth. Both domestic and foreign operators are opening new hotels and Indonesia’s National Statistics Board reported that foreign tourist arrivals to Indonesia between January and November 2014 reached 8.52 million, an increase of 7.29 percent from the same period in 2013. There were 251 million trips by domestic tourists during that same period.

As hospitality companies enter the Indonesian market, it is important that they understand the employment law regime and how it applies to the hospitality industry. Below is a primer on Indonesian labor law and the hospitality industry.

If a company wants to bring employees to a new hotel chain located in Indonesia, how are job titles, type of work performed, length of assignment and nationality relevant to the immigration process?

Foreigners are eligible to obtain work permits to perform certain specified types of jobs in the hospitality industry subject to certain time limits. The work actually performed must be consistent with the job title specified in the work permit. Nationality is not relevant provided that the candidate is a citizen of a country having diplomatic relations with Indonesia.

The Stay Permit is issued by the immigration division of the Ministry of Law, and the Work Permit is issued by the Ministry of Manpower. An additional Recommendation Letter from the Ministry of Tourism may be required. Read more »

SSEK Adviser to Speak at China Nickel Conference

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Michael S. Carl, a foreign legal adviser at SSEK Indonesian Legal Consultants, is a scheduled speaker at the 12th Annual China Nickel Conference taking place May 27-28 in Shanghai.

Michael will offer a legal perspective on building smelters in Indonesia, touching on topics such as foreign investment policies, licensing and dealing with the government and the community. His session is scheduled for Thursday, May 28.

For more information on the conference and to register, click here. Read more »

Compliance Road Map for Companies in Indonesia

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By Andini H. Dewi and Christina N. Soela

Compliance is an important issue for foreign investment companies doing business in Indonesia. As international organizations, foreign investment companies are not only required to comply with the laws and regulations of the country of origin of their parent companies but also with relevant laws and regulations in Indonesia. Due to the Capital Investment Coordinating Board (Badan Koordinasi Penanaman Modal or BKPM), which supervises all foreign investment activities in Indonesia, foreign investment companies are often more strictly scrutinized than wholly owned Indonesian companies in terms of compliance with Indonesian laws and regulations.

Foreign investment companies are required to obtain BKPM approval before carrying out certain actions such as share transfers, capital increases and business expansions. Foreign investment companies must also submit an investment activities report to the BKPM. This report must be submitted quarterly for companies that have not obtained a Business License (i.e., they have not yet commenced commercial production or operations) and each semester for companies that have obtained a Business License (i.e., they have commenced commercial production or operations). Read more »

SSEK Partner Speaks at Petromindo Oil and Gas Seminar

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Ira A. Eddymurthy, a founding partner at SSEK Indonesian Legal Consultants, was a featured speaker at an oil and gas seminar organized by Petromindo.com.

The seminar, “Minister of Trade Regulation on the Export of Oil and Gas and the Use of Letter of Credit: Opportunities and Challenges for Business Actors,” was held on Tuesday, March 10.

Ira was on a panel exploring commercial strategies for oil and gas business actors. Her presentation examined the Legal Consequences of the Minister of Trade Regulation on the Export of Oil and Gas.

Ira has three decades of experience advising multinationals and domestic companies on Indonesia’s regulatory environment and helping them achieve their business and investment goals. She is praised for her “comprehensive knowledge and understanding of the commercial aims of clients” (Chambers & Partners).

For more information on Petromindo.com and upcoming events, please click here.

SSEK and Deloitte Welcome the Year of the Goat

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SSEK Legal Consultants and Deloitte hosted a Lunar New Year Gathering on Friday, March 6, for members of the Chinese business community in Indonesia.

SSEK’s managing partner, Rusmaini Lenggogeni, and Fahrul Yusuf, a partner at the firm, spoke at the event. They offered a legal perspective on foreign direct investment in Indonesia, looked at some of the priority sectors under the new administration, discussed licensing at the Capital Investment Coordinating Board (“BKPM”) and touched on a number of other issues of importance to Chinese companies doing business in Indonesia.

SSEK has extensive experience working with Chinese companies and helping them realize their business goals in Indonesia. We work with Chinese companies across all sectors, including mining and natural resources, infrastructure and project finance, and banking and finance.

For more information, please contact Rusmaini Lenggogeni at rusmainilenggogeni@ssek.com.

Defamation under Indonesian Law

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By Michael S. Carl, Andini Dewi and Bambang Dhanisworo

Defamation under Indonesian law involves the issuance of a defamatory statement that causes a person to suffer harm. The term “defamation” is often used to encompass both slander (penistaan) and libel (penistaan dengan surat). Defamation is governed in the Indonesian Criminal Code under Chapter XVI, which covers six types of defamation.

Defamation under the Indonesian Criminal Code

1. Slander or defamation (Article 310 (1) of the Criminal Code).

2. Libel or defamation in writing (Article 310 (2) of the Criminal Code).

The elements that need to be fulfilled under Article 310 (1) and (2) are:

  • the defamation is made intentionally to harm a person’s honor or reputation;
  • the defamation is addressed to an individual, not a government institution, official or association, community, etc.;
  • the defamation needs to contain an accusation about a specific matter (e.g., deception, embezzlement, etc.), as long as it disgraces the related person; and
  • the defamation is made publicly.

Read more »

SSEK Ranked in 2015 Chambers Asia-Pacific

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SSEK Indonesian Legal Consultants earned seven firm rankings in the 2015 Chambers Asia-Pacific directory of the leading law firms in the region. Six SSEK lawyers received individual rankings across five practice areas.

SSEK was recognized as a leading firm in Indonesia in Banking & Finance, Corporate/M&A, Dispute Resolution, Employment, Projects & Energy, Real Estate, and Telecommunications. These rankings underline SSEK’s standing as one of Indonesia’s leading full-service corporate and commercial law firms.

The following lawyers received individual rankings in the following practice areas:

Ira A. Eddymurthy – Corporate/M&A

Darrell R. Johnson – Corporate/M&A, Projects & Energy

Michael D. Twomey – Projects & Energy, Real Estate

Richard D. Emmerson – Employment, Real Estate

Michael S. Carl – Banking & Finance, Corporate/M&A, Projects & Energy

Bezaliel Basuki Erlan – Banking & Finance (Associates to Watch) Read more »

SSEK to Speak at Webinar on Protecting Company Rights and Confidential Information

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Richard D. Emmerson, a senior foreign legal advisor at SSEK Legal Consultants, will take part in a free Employment Law Alliance webinar on Wednesday, March 11 titled, “What Employers in Asia Need to Know about Protecting Company Rights and Confidential Information.”

You can click here to register.

Webinar Description

Employers in Asia are increasingly facing questions of how best to protect confidential information and IP rights when an employee leaves the company. Restrictive covenants sometimes help, but provisions that are not well-drafted may not be enforceable.

This webinar, featuring employment lawyers from across Asia, will use a case scenario to offer guidance and practical insight into how employers can address these key issues, specifically:

  • How can employers prevent terminated employees from competing with their former company?
  • If there is a post-termination non-compete, what remedies are available to the employer?
  • What course of action can employers take when faced with a breach of a confidentiality obligation and IP rights?
  • What are the myriad considerations if the confidentiality breach involves cross-borders?

Guidance for Companies in Indonesia

Richard Emmerson, of SSEK Legal Consultants, will address these issues for companies operating in Indonesia. Mr. Emmerson has extensive experience in Indonesia and is recognized by leading legal publications including Chambers Asia Pacific, Who’s Who Legal and Asialaw as a leading employment law practitioner. Read more »

A Closer Look at Indonesian Condominium Law

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By Alvin Saptamandra Suryohadiprojo

Indonesia enacted a new Condominium Law in 2011 (Law No. 20 of 2011 regarding Condominiums, the “New Condominium Law”). It replaced Law No. 16 of 1985 regarding Condominiums (the “Old Condominium Law”). The implementing regulations of the New Condominium Law were to be issued at the latest one year after the enactment of the law. That has not happened and to date no implementing regulations have been issued. The New Condominium Law stipulates that any implementing regulations of the Old Condominium Law shall continue to apply to the extent that such regulations do not contradict the New Condominium Law and have not been amended by a new regulation.

Due to the absence of implementing regulations for the New Condominium Law, Government Regulation No. 4 of 1988 regarding Condominiums, dated April 26, 1988 (“GR 4/1988″), still applies. However, this does not solve the need for implementing regulations since GR 4/1988 does not cover all the provisions of the New Condominium Law, in particular those provisions that were not regulated under the Old Condominium Law. Further, the New Condominium Law mandates the issuance of 14 government regulations, six ministerial regulations and one regional regulation.

One of the main issues with the implementation of the New Condominium Law is the obligation that commercial condominium developers allocate 20% of the total commercial apartment area to be developed for the low-income community. This low-income development does not have to be at the same location as the commercial apartment, but it has to be in the same regency or city. Read more »

Legal Alert January 2015

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Please find attached the latest Legal Alert for January 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_January 2015