Indonesia’s franchise sector has experienced rapid growth in the past decade, riding the wave of the country’s economic expansion and the rise of its middle class. In response to this growth the Minister of Trade (“MOT”) issued new rules to shape the future direction of the business.
Indonesia’s Capital Investment Coordinating Board (“BKPM”) has issued BKPM Regulation No. 5 of 2013 regarding Guidelines and Procedures for Capital Investment Licenses and Non-Licenses, dated April 12, 2013 (“BKPM Reg. 5/2013″). The regulation introduces new requirements for capital investment registration procedures, as well as relevant licenses and non-licenses. More important, it reiterates and adds statutory weight to the informal policies of the BKPM that were never explicitly stipulated in previous regulations.
The Special Working Unit for Upstream Oil and Gas Business Activities (“SKK MIGAS”) issued a Decision Letter on April 3, 2012, amending part of its guidelines dealing with local content and domestic company preferences (the “Amendment”) in the context of the procurement of goods and services. PTK 007 Rev. 2 has been issued by SKK MIGAS to all production sharing contractors.
Outsourcing has become a hot-button issue in Indonesia, with labor unions leading large demonstrations in Jakarta against the practice. The unions claim that about 16 million Indonesians, or roughly 40 percent of the country’s formal workforce of 40 million, are outsourced employees, or hired on short-term contracts, or paid daily wages.
Written by Deni Sri Anjayani
Indonesia’s franchise sector has experienced rapid growth in the past decade, riding the wave of the country’s economic expansion and the rise of its middle class. In response to this growth the Minister of Trade (“MOT”) issued new rules to shape the future direction of the business.
Written by Mohammad Irham and Wynne Prasetyo
Indonesia’s Capital Investment Coordinating Board (“BKPM”) has issued BKPM Regulation No. 5 of 2013 regarding Guidelines and Procedures for Capital Investment Licenses and Non-Licenses, dated April 12, 2013 (“BKPM Reg. 5/2013″). The regulation introduces new requirements for capital investment registration procedures, as well as relevant licenses and non-licenses. More important, it reiterates and adds statutory weight to the informal policies of the BKPM that were never explicitly stipulated in previous regulations. Read more »
Written by Darrell R. Johnson and Ade B. Adamy
The Special Working Unit for Upstream Oil and Gas Business Activities (“SKK MIGAS”) issued a Decision Letter on April 3, 2012, amending part of its guidelines dealing with local content and domestic company preferences (the “Amendment”) in the context of the procurement of goods and services. PTK 007 Rev. 2 has been issued by SKK MIGAS to all production sharing contractors.
We will focus on the domestic company preference. Under this preference, if a domestic company participates solely or as a leader of a consortium in a tender for an oil and gas project, its bid will be entitled to a pricing preference of 5 percent, meaning that if its bid is within 5 percent of the lowest bid, it will be awarded the tender, all other factors being equal. Read more »
Written by Richard D. Emmerson and Indrawan Dwi Yuriutomo
Outsourcing has become a hot-button issue in Indonesia, with labor unions leading large demonstrations in Jakarta against the practice. The unions claim that about 16 million Indonesians, or roughly 40 percent of the country’s formal workforce of 40 million, are outsourced employees, or hired on short-term contracts, or paid daily wages.
Companies in Indonesia can delegate part of their work to be performed by subcontractor companies or labor suppliers. In Indonesia, both types of delegation are described as “outsourcing.” While Law No. 13 of 2003 regarding Manpower requires companies to only outsource non-core functions, there remains a great deal of ambiguity around the practice. A recent Constitutional Court decision and Ministerial Regulation have sought to clear up this ambiguity and tighten the rules surrounding outsourcing. It remains to be seen whether this will satisfy the unions and what kind of effect it will have on business. Read more »
SSEK has been shortlisted in five categories at this year’s Asian Legal Business Southeast Asia Law Awards. The Awards recognize the outstanding achievements of Southeast Asia’s leading law firms and in-house legal teams as well as the top deals and dealmakers of 2012. The winners are selected after months of intensive research.
SSEK has been shortlisted for Real Estate Law Firm of the Year; Energy & Resources Law Firm of the Year; SE Asia Shipping Law Firm of the Year; Indonesia Deal Firm of the Year; and Managing Partner of the Year, for Rusmaini Lenggogeni.
The winners will be announced on Friday, May 17, in Singapore.
The Employment Law Alliance is offering a free 90-minute webinar on Tuesday, May 21, focusing on “Hot Topics in Labor Law Affecting the Retail and Restaurant Industry: A Global Perspective.” Read more »
Written by Ira Eddymurthy and Douglas G. Smith
When forming an Indonesian joint venture the two main statutes for consideration are typically the Indonesian Civil Code and the Indonesian Company Law.
By contrast with the Civil Code, which was promulgated in the 19th century by the Dutch East Indies government and was based on the then existing Civil Code in the Netherlands, the Indonesia Company Law (Law 40 of 2007) was promulgated in 2007 and is a relatively modern form of companies’ law, drawing on a variety of contemporary international legislative models. Both laws will impact your structure and organization in Indonesia and the substance of your joint venture agreement. Read more »
Please find attached the latest Legal Alert for April 2013.
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 April 2013
Written by Tania Drawina
The Indonesian Ministry of Trade has issued new rules for restaurant franchise holders to limit the number of outlets they operate in the country.
While the new rules have elicited concerns in the franchise industry of slowing growth, the Ministry has said the changes are designed to protect and empower small- and medium-sized businesses in the country by giving them the chance to partner with the industry’s dominant players. Read more »
SSEK on April 11, 2013, welcomed 32 participants from 23 companies to a one-day seminar on Employment Law in Indonesia. The event began at 9 a.m. at SSEK’s Seminar Room on the 12th Floor of the Mayapada Tower.
Opening the seminar was Richard Emmerson, a foreign advisor at SSEK who is recognized by numerous independent legal publications as one of Indonesia’s leading employment lawyers. Richard took a close look at one of the most controversial and challenging labor issues facing companies in Indonesia – outsourcing. Read more »
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