Top Five Legal Updates of 2012


Over the course of 2012 our Indonesian Insights blog received more than 23,000 readers and we hope that we were able to provide insightful and timely commentary on Indonesian legal issues.The following articles were among the most popular with our readers in 2012. So let’s take a look back on some of the legal and business developments that unfolded in Indonesia  last year. To read more or to view any related articles, please visit our blog.

1. Import Regulation

On May 1, 2012, the Minister of Trade (“MOT”) issued MOT Regulation No. 27/M-DAG/PER/5/2012 regarding Importer Identification Numbers (“API”) (“MOT Reg 27”). This regulation revokes the previous MOT Regulations i.e.  (i) Minister of Industry and Trade Decree No. 134/MPP/Kep/6/1996 regarding Import Activities and the Domestic Trade of Complementary Goods by Foreign Companies in the Field of Production and (ii) MOT Regulation No. 45/M-DAG/PER/9/2009 regarding API, as lastly amended by MOT regulation No. 20/M-DAG/PER/7/2011 (the “Previous MOT Regulations”). More & MOT Reg. No. 59

2. Environmental Protection Management
On February 23, 2012, the Government of Indonesia issued Government Regulation No. 27 of 2012 regarding Environmental Permits (“GR 27/2012”), an implementing regulation of the recent 2009 Environmental Law (Law No. 32 of 2009)  and revokes Government Regulation No. 27 of 1999 (“GR 27/1999”) which previously regulated two types of environmental reporting and compliance for companies operating in Indonesia: an Environmental Impact Analysis Report (“AMDAL”) and an Environmental Management/Monitoring Efforts Report (“UKL – UPL”). The aim of GR 27/2012 is to provide greater legal certainty for businesses in terms of environmental licensing while ensuring the protection and management of the natural environment. More

3. Oil & Gas

The Oil & Gas Year published its inaugural Indonesia report that outlines the state of the Indonesian oil and gas industry. The publication interviewed SSEK’s Michael Twomey who spoke on the regulatory and legal challenges for oil and gas companies in Indonesia, as well as on issues of land acquisition, procurement and cabotage. Read the full interview: More

4. Mining Regulation on Foreign Ownership

Effective as of February 21, 2012, a new mining regulation was recently issued that limits foreign ownership in mines by requiring a phased divestment of ownership over the life cycle of the mine. As reported by Reuters, domestic ownership of mines is to be at least 51% in the tenth year of mine ownership. More

5. Employment
This article is a follow-up to our previous post, a Guide to Indonesian Employment Law. The article presents the Top 10 questions to ask when you HIRE an employee in Indonesia. More

Thank you to all for reading and best wishes for 2013. If you have any article suggestions or topics that you would like to see covered, please email us at

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