Archive for the ‘Legal Updates’ Category

Oil & Gas Regulation 2017

Restrictions on Contractors in the Indonesian Oil and Gas Sector

By Fitriana Mahiddin and Syahdan Z. Aziz There are a number of rules for Production Sharing Contract (“PSC”) Contractors in Indonesia’s oil and gas sector, including those on the export of production, currency exchange and the transfer or disposal of development rights. Subject to obtaining requisite export approvals, a Contractor is entitled to export its [...]

Labor & Employment

Salaries of Foreign Workers Seconded to Indonesia

By Wynne Prasetyo Bank Indonesia has refined its position regarding the exemption of a cross-border supply of services from the currency requirement, particularly in the case of a foreigner who is employed by a foreign company and seconded to an Indonesian company (Article 8.(1).b.1 of Bank Indonesia Regulation No. 17/3/PBI/2015 and Article C.3.b.1 of Bank [...]

Shipping

Indonesia Extends Cabotage Exemption

By Dyah Soewito and Stephen Igor Warokka The Indonesian Shipping Law and its implementing regulations contain Indonesia’s cabotage rules, requiring that domestic sea transportation be carried out by an Indonesian shipping company using an Indonesian-flagged vessel and an Indonesian crew. These provisions are broadly interpreted to cover most vessels, including different types of vessels operating [...]

Oil & Gas Regulation 2017

Indonesian Oil and Gas Sector: Role of the State

By Fitriana Mahiddin and Syahdan Z. Aziz Extracted oil and gas in Indonesia remains owned by the State until it passes the point of export or other delivery point. Thereafter, the Government is entitled to a certain percentage of the production output as apportioned under the Production Sharing Contract (“PSC”), as is the Contractor. Under [...]

Labor & Employment

Update on Employment Law in Indonesia and Asia

SSEK Legal Consultants has contributed the Indonesia chapter to the new Asia Employment Law, a quarterly review of employment law developments across 15 jurisdictions in Asia. The review is designed to help legal and human resources advisers stay up to date on employment-related legal developments around Asia. For the Indonesia chapter of the Employment Law [...]

Oil & Gas Regulation 2017

Development of Oil and Natural Gas in Indonesia

By Fitriana Mahiddin and Syahdan Z. Aziz Indonesia’s oil and gas sector is governed by Law No. 22 of 2001 regarding Oil and Gas (the “Oil and Gas Law”). The state retains mineral rights throughout Indonesian territory and the Government holds the mining authority. The oil and gas sector comprises upstream and downstream activities, which [...]

Construction

New Construction Law in Indonesia: Changing the Regulatory Framework

By Awang Fahrizal The Government of Indonesia (“GOI”) recently issued Law No. 2 of 2017 regarding Construction Services (the “New Construction Law”). The New Construction Law revokes Law No. 18 of 1999 regarding Construction Services (the “Previous Construction Law”) and introduces several changes and new provisions related to construction services in Indonesia. Below are the [...]

Bank Indonesia in Yogyakarta

Bank Indonesia Issues Rules for Payment System Service Providers

By Harry Kuswara Bank Indonesia (“BI”) has issued a circular letter on licensing procedures and requirements related to payment system transactions in Indonesia. BI Circular Letter No. 18/41/DKSP regarding the Implementation of Payment Transaction Processing, dated December 30, 2016 (the “Circular Letter”), is an implementing regulation for BI Regulation No. 18/40/PBI/2016 on the Implementation of [...]

Labor & Employment

Update on Employment Law in Indonesia and Asia

SSEK Legal Consultants has contributed the Indonesia chapter to the new Asia Employment Law, a quarterly review of employment law developments across 15 jurisdictions in Asia. The review is designed to help legal and human resources advisers stay up to date on employment-related legal developments around Asia. For the Indonesia chapter of the Employment Law [...]

Oil & Gas Regulation 2017

Overview of the Indonesian Natural Gas Sector

By Fitriana Mahiddin and Syahdan Z. Aziz Indonesia has approximately 150-153 trillion standard cubic feet (“TSCF”) of natural gas reserves. The BP Statistical Review of World Energy 2016 recorded 100.3 TSCF of proven reserves in Indonesia as of the end of 2015, with gas production reaching 75 billion m3, which is a slight decrease from [...]