Indonesian Shipping Law: Cargo and Passenger Claims

Shipping

By Dyah Soewito and Stephen Igor Warokka

The Indonesian Commercial Code (ICC) provides that a carrier is liable to provide compensation for any damages arising from its failure to deliver cargo, whether partially or entirely, or any damages to the cargo, unless such damage or failure to deliver was caused by force majeure.

Indonesia has not ratified the Hague/Hague-Visby/Hamburg/Rotterdam Rules.

In practice, either the shipper, the consigner, the lawful holder of the bill of lading, the cargo owner or the cargo insurer (by subrogating) is entitled to bring cargo claims against the carrier for loss or damages arising from the carrier’s alleged default.

Article 513 of the ICC provides that if the bill of lading states that the “content / nature / amount / weight / size is unknown,” or a similar clause to this effect, the carrier will not be responsible for any cargo claim, unless the carrier should have known the condition and type of the cargo or the cargo was quantified before the carrier. Read more »

Update on Employment Law in Indonesia and Asia

Labor & Employment

SSEK Legal Consultants has contributed the Indonesia chapter to the new Asia Employment Law, a quarterly review of employment law developments across 14 jurisdictions in Asia.

Asia Employment Law: Quarterly Review is designed to help legal and human resources advisers stay up to date on employment-related legal developments in Indonesia and around Asia.

For the Indonesia chapter of the Employment Law review, click here.

You can see the full report here. Read more »

SSEK Assists on US$28m Tech Startup Funding

DSR GRA

SSEK Indonesian Legal Consultants has assisted DLA Piper Singapore in a US$28 million Series C funding for C88 Financial Technologies led by Experian, a global information services company based in Dublin, Ireland.

According to media reports, this was one of the largest Series C funding rounds in Southeast Asia.

C88, a Singapore startup that builds financial technology infrastructure, owns and operates CekAja.com, among other companies, one of Indonesia’s leading online financial marketplaces.

The SSEK team, led by partner Dewi Savitri Reni, advised Experian on Indonesian data privacy laws and regulations. Also on the team was associate Greita Anggraeni. Read more »

Discrimination and Employment Law in Indonesia

Labor & Employment

By Fahrul S. Yusuf

Article 27 of the Indonesian Constitution states that all citizens shall have equal status accorded by law and the government, and are obliged to respect the law and government without exception, and each citizen shall be entitled to work and to have a reasonable standard of living.

The prevailing Indonesian labor laws reflect anti-discrimination principles. Law No. 13 of 2003 regarding Labor (the “Labor Law”) stipulates that termination of an employment relationship shall not be permitted if it is based on the ideology, religion, political inclination, ethnic group, race, social group, gender, physical condition, or marital status of the employee (Article 153(1) of the Labor Law).

Article 3 of Government Regulation No. 78 of 2015 regarding Wages (“GR 78″) states that in determining an employee’s wage, an employer may not discriminate between male and female workers who perform work of equal value. Read more »

Standard Forms of Contracts in the Indonesian Construction and Projects Sector

Construction

By Denny Rahmansyah

Projects in Indonesia involving locally owned private construction service companies rarely refer to a particular contract model. Indonesian law does not require the use of a particular standard form of contract issued by a particular organisation.

Indonesian law recognizes the principle of freedom of contract. This principle is explicitly stated in Article 1338 of the Indonesian Civil Code. Article 1338 provides that parties to a contract are free to include any provisions they wish, subject only to mandatory provisions of Indonesian law. The mandatory provisions of Indonesian law that a contract must not violate derive from Indonesian statutory laws and regulations, public policy and the public order.

Under the Construction Law, a construction agreement must include provisions on: Read more »

New Indonesian Manpower Regulation Changes Rules for Foreign Workers

Labor & Employment

By Joseph Hendrik

The Indonesian Ministry of Manpower (“MOM”) has issued MOM Regulation Number 10 of 2018 on Procedures for the Utilization of Foreign Workers (“MOMR 10/2018″), which implements Government Regulation Number 20 of 2018 on the Utilization of Foreign Workers. MOMR 10/2018 revokes MOM Regulation Number 16 of 2015 and MOM Regulation Number 35 of 2015.

MOMR 10/2018 introduces a number of important changes and provisions that will be of interest to employers in Indonesia.

Employment of Foreign Workers

Under Article 3 of MOMR 10/2018, only the following can employ foreign workers:

  • Government agencies, representatives of foreign countries, international agencies and organizations;
  • foreign trade representative offices, representative offices of foreign companies and foreign news agencies established in Indonesia;
  • limited liability companies (perseroan terbatas or “PT”) and foundations (yayasan);
  • foreign business entities registered with the authorized institution in Indonesia;
  • social, religious educational and cultural institutions;
  • event organizers (sports or arts/entertainment); and
  • other business entities, as long as they are not prohibited under Indonesian laws or regulations from employing foreign workers.

Obligations of Employers Read more »

SSEK Lawyers Recognized in 2018 Asialaw Leading Lawyers

Partners&Advisors-n

Nine partners and foreign legal advisors at SSEK Legal Consultants have been recognized in the 2018 edition of Asialaw Leading Lawyers, the guide to the leading lawyers in Asia-Pacific. The nine were recognized as leading lawyers in Indonesia across a total of six practice areas.

SSEK is a full-service corporate and commercial law firm based in Jakarta. The depth of the firm’s experience and expertise was underlined by its showing in the latest edition of Asialaw Leading Lawyers. Its partners and advisors were recognized as leaders in the following practice areas: Banking & Finance; Capital Markets; Construction & Real Estate; Corporate/M&A; Energy & Natural Resources; and Projects & Infrastructure.

SSEK’s 2018 Asialaw Leading Lawyers are: Read more »

Protection of Privacy in Indonesia

Abstract Technology Network Background

By Denny Rahmansyah and Saprita Tahir

With regard to private and family life in Indonesia, Article 28(G) of the 1945 Constitution provides that every person has the right to: (i) Protection of their personal selves, families, respect, dignity and possessions under their control; and (ii) Security and protection from threat of fear for doing, or not doing, something which constitutes a human right.

Article 28(G) is considered the basis for more specific data privacy legislation. However, there is no specific law in Indonesia that regulates respect for private and family life. As of the time of this writing, the most relevant regulations for the protection of privacy are related to personal data protection.

Protection of Personal Data

Provisions on the protection of personal data can be found in Law No. 11 of 2008 regarding Electronic Information and Transactions, as amended by Law No. 19 of 2016 (the “Electronic Information Law”). The procedural guidelines for the Electronic Information Law are contained in Government Regulation No 82 of 2012 regarding the Implementation of Electronic Systems and Transactions (“Government Regulation 82″). Read more »

SSEK Contributes Chapter on Establishing a Business in Indonesia

IEA RNW

SSEK senior partner Ira A. Eddymurthy and Revaldi N Wirabuana, an associate at the firm, have contributed the Indonesia chapter to Practical Law’s global guide to establishing a business worldwide.

Establishing a Business in Indonesia provides an overview of the key issues in establishing a business in Indonesia, including an introduction to the legal system; the available business vehicles and their applicable formalities; corporate governance structures and requirements; foreign investment incentives and restrictions; currency regulations; and tax and employment issues.

You can find Establishing a Business in Indonesia here.

To compare answers across multiple jurisdictions, click on Establishing a Business in … in Practical Law’s Country Q&A Tool. Read more »

Facilitating Payments in Indonesia

Businessmen

By Denny Rahmansyah and Nico Mooduto

We understand that the Foreign Corrupt Practices Act (the “FCPA”) permits facilitating payments to be made to foreign officials for routine governmental actions to expedite the performance of their duties. Such payments are generally considered as not being intended to influence the outcome of the official’s action or decision, but rather to expedite an action or decision that is already a given. A facilitating payment, therefore, is an exception to the anti-bribery prohibitions in the FCPA.

In contrast, facilitating payments are not recognized under Indonesian law. Generally, there is no provision under the Anti-Corruption Law (Law No. 31 of 1999 regarding Eradication of Criminal Acts of Corruption, as amended by Law No. 20 of 2011) or in Indonesian law that permits facilitating payments or exempts such payments from the general prohibitions of the Anti-Corruption Law. In fact, unauthorized payment to any government official, regardless of the purpose, is very suspect and may be considered a bribe.

The Anti-Corruption Law expressly provides that gifts or gratifications given to a Government Official or State Organizer shall be considered a bribe if they are related to his/her position and are contrary to his/her official duty or obligations. The Anti-Corruption Law does not define the term “gift”. It merely provides that “gratifications” are “gifts in a broad meaning, which includes the giving of money, goods, discounts, commissions, interest-free loans, travel tickets, lodging, travel, free medical care, and other facilities. Gratification shall also encompass any gift that is accepted outside the country and given by using electronic means or otherwise. Read more »