Legal Alert August 2014

Legal Alert - 2012

Please find attached the latest Legal Alert for August 2014.

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

Click here: Legal Alert August 2014

The New Geothermal Energy Law: New Hope for Geothermal Energy Development in Indonesia


By Bambang Dhanisworo and Dewi Mayangsari

Indonesia is one of the world’s most volcanically active countries and among the countries with the greatest geothermal energy potential. Dwindling production of traditional energy sources such as oil and gas has the Government of Indonesia (“GOI”) seeking alternatives to maximize national energy production. That includes developing geothermal energy, which is expected to play a larger role in Indonesia’s energy production going forward.

To this end, the GOI has introduced provisions to better manage geothermal energy, through a new law approved by the House of Representatives (“DPR“) in August 2014, Law No. 21 of 2014 (“New Geothermal Law”).

The New Geothermal Law was proposed by President Susilo Bambang Yudhoyono in August 2013. It contains new provisions that are more industry-friendly compared to the previous law on geothermal energy, Law No. 27 of 2003 (“Law 27/2003″). The highlights of the New Geothermal Law are as follows: Read more »

E-Commerce Guidelines for Indonesia


Indonesia is becoming one of the most dynamic e-commerce markets in the world. With a population of 250 million, a growing middle class and more than 82 million internet users, Indonesia is attracting the interest of more investors, both foreign and domestic.

SSEK’s Dewi Mayangsari and Saprita Tahir have produced a legal guide to the e-commerce business in Indonesia. This guide covers everything from setting up a website and internet advertisements to e-payments and data privacy rules.

Click here to see the full guide.

Employment Law and the Hospitality Industry: A Free Webinar

ELA Logo

SSEK’s Richard D. Emmerson will take part in an Employment Law Alliance webinar on October 23, 2014, titled “Immigration Issues in the Hospitality Industry: A Global Perspective.” You can click here to register.

Global expansion in the hospitality industry creates unique challenges depending on the location of the new business development. Can low- or mid-level employees be transferred to the foreign location? Are there special immigration processes for higher-level management or executives?

This free webinar brings together legal experts from Asia, the U.S., Europe and the Middle East who will highlight the practical and legal aspects of hiring foreign nationals in hospitality jobs and provide guidance on the following:

  • How education, experience and job title matter in the immigration process.
  • What are the most important issues to consider when terminating a foreign national?
  • Is the relocated employee subject to the laws of the home country, host country, or both? Read more »

SSEK Shortlisted in 9 Categories at ALB Indonesia Law Awards

ALB Indonesia Awards

SSEK Indonesian Legal Consultants has been announced as a finalist in nine categories at the inaugural 2014 Indonesia Law Awards.

SSEK has been shortlisted for:

  • M&A Deal of the Year
  • Real Estate Deal of the Year
  • Construction Law Firm of the Year
  • Deal Firm of the Year
  • Dispute Resolution Law Firm of the Year
  • Employment Law Firm of the Year
  • Energy and Resources Law Firm of the Year
  • Insolvency and Restructuring Law Firm of the Year
  • Shipping Law Firm of the Year

The nine nominations underline the strength of SSEK across all major practice areas.

Winners will be announced during a ceremony on October 28 in Jakarta.

SSEK Named In-House Community Firm of Year in Multiple Practice Areas


SSEK Indonesian Legal Consultants has been recognized as an Asian-MENA Counsel In-House Community Firm of the Year in five practice areas. The firm was also voted a joint winner in the prestigious category of Most Responsive Domestic Firm of the Year for Indonesia.

SSEK, a full-service corporate and commercial law firm based in Jakarta, was recognized as Firm of the Year in Indonesia for Compliance/Regulatory, Employment, Energy & Natural Resources, Environmental, and Telecommunications, Media & Technology.

SSEK received honorable mentions in three other practice areas: Anti-Trust/Competition, Corporate and M&A, and Real Estate/Construction.

This is the sixth straight year that SSEK has been honored as an Asian-MENA Counsel Law Firm of the Year. Read more »

Legal Guide to Oil Regulation in Indonesia

Oil Regulation

SSEK contributed the Indonesia chapter to the 2014 edition of Getting the Deal Through: Oil Regulation.

SSEK partner Fitriana Mahiddin and senior associate Syahdan Z. Aziz provide a comprehensive overview of oil regulation in Indonesia.

They examine issues related to exploration and production, licenses, royalties, taxation, contracts, local content rules, environmental regulations and labor rules.

You can see the complete report here.

Michael Carl of SSEK to Speak at LAWASIA Conference


Michael S. Carl, a foreign legal advisor at SSEK Legal Consultants in Jakarta, Indonesia, has been invited to speak at the LAWASIA Conference in Bangkok.

Mr. Carl will speak at the corporate securities and investment session on “Hot FDI Destinations of ASEAN Community 2015″.

The session will take place on Saturday, October 4, the second day of the four-day conference.

Mr. Carl joined SSEK in 2004 and has 18 years of experience practicing law in Southeast Asia. Before joining SSEK, Mr. Carl 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. At SSEK, he specializes in securities, mergers and acquisitions, banking transactions, and mining and natural resources. Read more »

Legal Guide to Oil Regulation in Indonesia: Taxation, Price Controls, Competition and Outlook


This is the seventh and final post in our 2014 Legal Guide to Oil Regulation. Fitriana Mahiddin and Syahdan Z. Aziz have addressed a new topic each week.


The taxes applicable to upstream and downstream oil activities in Indonesia include income taxes, VAT, import duties and tariffs, regional taxes and other levies. Please note that the tax obligations of a contractor may be stabilized. The Minister of Finance, through the Director General of Taxation, exercises governmental authority in respect of taxation.

Commodity Price Controls

The crude oil price is determined periodically by the Minister of Energy and Mineral Resources (MEMR) in consultation with the Minister of Finance. In addition, there is an obligation that 25 percent of a contractor’s portion of extracted oil must be provided to the government to fulfil its domestic market obligation (DMO). For such fulfilment of its DMO, the contractor receives a DMO fee in the amount stipulated by the MEMR for 60 consecutive months from the commencement of commercial production.

With regard to fuel oil trading, the MEMR has the authority to stipulate a certain distribution area for the sale of specified fuel oil and stipulate a retail price for certain types of fuel oil. Noncompliance with the determined price constitutes a violation of the trading business license, which entails administrative sanctions up to the revocation of business license. Read more »

SSEK Lawyers to Speak at IBA Conference in Tokyo

IBA Conference Tokyo

Two lawyers from SSEK Legal Consultants, a full-service corporate and commercial law firm based in Jakarta, Indonesia, will feature in three working sessions at the upcoming Annual Conference of the International Bar Association (IBA) in Tokyo.

Rusmaini Lenggogeni, the managing partner of SSEK, will speak on Wednesday, October 22, on “Targeting the Asian Market: Setting Up or Taking Over a Sales and Distribution Network in Asia.”

Western companies are pouring into the Asian market, including Indonesia, and this session will look at the best practices for sales and distribution in Asia. Ms. Lenggogeni will discuss the establishment of distribution networks in Indonesia, either by way of green-field investment or joint ventures.

Ms. Lenggogeni specializes in corporate acquisitions and mergers, real property leases, construction and taxation. Her practice sees her advise multinational and domestic firms, with an emphasis on cross-border transactions. Ms. Lenggogeni is recognized as one of Indonesia’s leading practitioners in Corporate/M&A. Read more »