Foreign Employees and Termination Benefits in Indonesia

Labor & Employment

By Indrawan Dwi Yuriutomo

The Indonesian Supreme Court in December issued Circular Letter No. 1 Year 2017 regarding the Implementation of the 2017 Supreme Court Meeting as a Guideline for the Role of Indonesian Courts (“SEMA No. 1″).

SEMA No. 1 is a 41-page document that contains new policies to be applied by courts in Indonesia when handling criminal, civil, religious and military matters.

It also contains a section on Labor Court policies and in particular the employment of expatriates and their termination benefits under Indonesia’s Manpower Law (Law No. 13 of 2003). Read more »

SSEK Discusses Cross-Border Employment Issues at ELA Conference

Fahrul Yusuf at ELA Conference

SSEK partner Fahrul S. Yusuf was a featured speaker at the recent Employment Law Alliance Asia-Pacific client conference, held in the Philippines.

Fahrul was part of the panel on “Global Employment: Handling Cross-Border Employment Issues.”

Fahrul is the head of SSEK’s employment law practice, which is recognized by legal directories as one of the leading practices in Indonesia. Read more »

Mandatory Disclosure of Beneficial Owners in Indonesia

Jakarta by Stenly Lam

By Bezaliel Basuki Erlan and Aldilla S. Suwana

Legal entities in Indonesia are now required to declare the identity of beneficial owners and provide information on their beneficial ownership, following the recent enactment of Presidential Regulation No. 13 of 2018 regarding the Implementation of the Principle on Recognizing Beneficial Ownership of Corporations in the Framework of the Prevention and Eradication of Money Laundering and Criminal Acts of Terrorism Financing (March 5, 2018) (“Regulation”).

This Regulation is part of the Indonesian government’s new disclosure regime to create more transparency in the ownership of business entities and to monitor and control the entities, as well as to reduce opportunities for the misuse of such legal entities for illicit purposes such as money laundering, terrorism financing, tax evasion and corruption. The promulgation of this Regulation is a prerequisite for Indonesia to join other members of the Financial Action Task Force (“FATF”), an inter-governmental body formed to address issues of terrorism financing, money laundering and tax evasion. Read more »

MEMR Imposes New Abandonment and Site Restoration Obligations for Indonesian Upstream Oil and Gas Activities


By Wynne Prasetyo

Indonesia’s Minister of Energy and Mineral Resources (“MEMR“), after a long wait, has regulated abandonment and site restoration (“ASR“) activities, or post-operation activities, for the upstream oil and gas sector.

MEMR Regulation No. 15 of 2018 regarding Post-Operation Activities in Upstream Oil and Gas Business Activities (“MEMR Reg. 15/2018“) came into effect on February 23, 2018. It implements Article 17 (4) of Government Regulation No. 79 of 2010 regarding Recoverable Operating Costs and Income Tax Treatment in Upstream Oil and Gas Business Activities, as amended by Government Regulation No. 27 of 2017 (as amended, “GR 79“). Even though Article 17(4) of GR 79 only orders the MEMR to stipulate the procedure for the utilization of ASR funds, MEMR Reg. 15/2018 now imposes the obligation to conduct ASR activities.

MEMR Reg. 15/2018 revokes MEMR Regulation No. 1 of 2011 regarding Technical Guidelines for the Dismantling of Offshore Oil and Gas Installations (“MEMR Reg. 1/2011“). While MEMR Reg. 1/2011 only concerned offshore installations, MEMR Reg. 15/2018 applies to both onshore and offshore installations. Read more »

SSEK Contributes Indonesia Chapter to New Foreign Investment Review

Foreign Investment Review

SSEK senior foreign counsel Darrell R. Johnson and Irwina Annisa, an associate at the firm, have contributed the Indonesia chapter to Getting the Deal Through: Foreign Investment Review 2018.

You can find the chapter here. Read more »

Virtual Currency Is Here, So How Is Indonesia Going to Regulate It?


By Harry Kuswara

Virtual currency, or cryptocurrency, has made its way to Indonesia and government agencies are working to regulate its use. But as Bitcoin, Ripple, Peercoin and other virtual currencies increasingly attract the interest of Indonesians for all kinds of reasons, there is no regulation in Indonesia that deals specifically with virtual currency, a gap regulators hope to close.

Existing Regulations

Although there is as of this writing no specific regulation in Indonesia for virtual currency, a number of regulations can be viewed as relevant to and briefly touch on the subject of virtual currency. Law No. 7 of 2011 regarding Currency (the “Currency Law”) provides that Indonesian Rupiah is the only lawful currency in Indonesia, and that any transaction in Indonesia for the purpose of payment, the settlement of other liabilities that must be settled with money, and/or other financial transactions must use Rupiah. Read more »

SSEK 2nd Annual Blood Drive: Save a Life, Give Blood

SSEK Blood Drive

SSEK Indonesian Legal Consultants held a blood drive on February 23, 2018, at our offices at Mayapada Tower I, Jl. Jend. Sudirman, Jakarta.

This was SSEK’s second annual blood drive. SSEK again cooperated with the Indonesian Red Cross (Palang Merah Indonesia or “PMI”) to organize the event.

The blood drive was open to SSEK employees and members of the public and more than 80 people gathered at SSEK to donate blood. Read more »

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


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 »