Fintech in Indonesia: Weighing the Future

Bitcoin

SSEK’s Rusmaini Lenggogeni, Fahrul S. Yusuf and Harry Kuswara have contributed an article to the International Financial Law Review’s special supplement on cryptocurrency regulation around the world.

SSEK looks at Indonesia’s clampdown on virtual currencies and the future potential of blockchain.

You can find the article here.

International Financial Law Review (IFLR) is a market-leading financial law publication.

Terminating an Employment Relationship in Indonesia

Labor & Employment

By Fahrul S. Yusuf

Under Law No. 13 of 2003 regarding Labor (the “Labor Law”) and other prevailing labor laws and regulations, employment-at-will and termination upon simple notice are not recognized in Indonesia. Employment terminations must follow the procedures under the Labor Law and Law No. 2 of 2004 regarding Industrial Relations Dispute Settlement (“Law No. 2″).

Before terminating an employment relationship, the parties (employee, employer and, if applicable, labor union) are required to meet in an attempt to reach an amicable termination settlement. This meeting is known as bipartite negotiation. Such negotiations should be completed within 30 days, and minutes of each negotiation must be drafted and signed by all parties.

If a settlement is reached, a Mutual Termination Agreement should be executed and then registered at the relevant labor court. A settlement that is documented as a resignation does not require registration.

If the negotiations fail, the employer or employee may file the dispute with the relevant office of the Ministry of Manpower (“MOM”), along with supporting documents to show that bipartite negotiations have been attempted. A manpower official will ask both parties whether the dispute should be resolved through non-binding conciliation with private conciliators, mediation with a MOM mediator, or arbitration. The parties should respond within seven days, and if they do not, the dispute automatically will go to mediation. Read more »

SSEK to Lead Indonesian Employment Law Masterclass in Singapore: Book Your Place

Speaker Highlight - ELAW (Indonesia)

SSEK’s Rusmaini Lenggogeni, Syahdan Z. Aziz and Mahareksha Dillon will lead a full-day Indonesian employment law masterclass in Singapore on Tuesday, Sept. 18.

The class will cover the Indonesian labor law landscape, different categories of employment contract, expatriate employment, labor disputes and the termination process in Indonesia, among other topics.

You can find more information on the class and register here or online here.

SSEK clients receive a 20% discount on the normal registration fee. You can contact David Eyerly (davideyerly@ssek.com) for more information.

SSEK Indonesian Legal Consultants Assists Pertamina on Major Transaction

IEA DSR

SSEK has assisted the Indonesian state-owned oil and natural gas corporation, Pertamina, in the transfer of 51% of Pertamina’s shares in its direct subsidiary Pertagas to another Pertamina subsidiary, PT Perusahaan Gas Negara (PGN), in a transaction valued at US$1.2 billion, as has been reported.

With the transfer, PGN will become a subholding company under Pertamina, managing gas from midstream to distribution and marketing.

SSEK previously assisted the Indonesian Ministry of State-Owned Enterprises and Pertamina in the establishment of an Oil and Gas Holding State-Owned Company, which resulted in an additional US$2.7 billion in capital owned by the Government in Pertamina.

The SSEK team for both transactions was led by founding partner Ira A. Eddymurthy and partner Dewi Savitri Reni, with assistance from senior associate Tengku Almira Adlinisa. Read more »

Indonesian Shipping Law: Marine Casualty

DS SIW

By Dyah Soewito and Stephen Igor Warokka

In the event of a ship collision, grounding or other major casualty, there are a number of key provisions in Indonesia that will impact upon the liability and response of interested parties.

Collision

With regard to liability in a collision, the Indonesian Commercial Code (“ICC”), which was enacted in the 19th century, provides that:

  1. If the collision is caused by force majeure, or if there are doubts as to the cause of the collision, the damages shall be borne by those who have suffered them.
  2. If the collision is caused by the fault of one of the colliding vessels, liability to remedy the damages shall be borne by the vessel that committed the fault. Wirjono Prodjodikoro, an Indonesian scholar, stated that a collision caused by a defect (unseaworthiness) of the vessel shall also be considered as the fault of the vessel.
  3. If the collision is caused by the fault of two or more vessels, the liability of each vessel is in proportion to the degree of their respective faults.  Prodjodikoro stated that the test of fault is the impact of the fault on the damage suffered, irrespective of the intention (culpa) of the vessel.
  4. If a vessel being towed collides due to the fault of the towing vessel, the owners of both the towed and the towing vessel shall be jointly and severally responsible for the damage.

Upon declaring independence in 1945, Indonesia decided that the articles of the ICC would continue to be followed unless they were contrary to the Constitution.

Under Law No. 17 of 2008 regarding Shipping (“Shipping Law”), unless it can be proven otherwise, the master of the vessel shall be held liable in a vessel accident. Read more »

Employment Law Alliance Global Client Newsletter for July 2018

Employment Law Alliance

The Employment Law Alliance (ELA) client newsletter is a monthly publication by which ELA members can provide the latest employment law developments to global clients.

You can find the ELA Global Client Newsletter for July 2018 here.

The ELA is the largest network of labor and employment lawyers in the world. ELA members provide employment, labor and immigration expertise in more than 135 countries around the globe and all 50 U.S. states.

SSEK Legal Consultants is the ELA’s member firm for Indonesia. Read more »

Shareholder Activism in Indonesia

IEA-TAA

By Ira A Eddymurthy and Tengku Almira Adlinisa

While there is no specific definition of shareholder activism in Indonesia, and Indonesia does not recognize shareholder activism, the Indonesian Company Law (Law No. 40 of 2007 regarding Limited Liability Companies) gives certain rights to each shareholder and minority shareholder that allow them to influence the company’s actions.

  • Each share grants its owner the right to attend and cast one vote in the general meeting of shareholders (GMS) and perform other rights under the Company Law. Actions that require shareholder approval include:
    • amendments to the articles of association (AOA) must be approved by a resolution at a GMS at which at least two-thirds of the company’s voting shares are represented and at least two-thirds of the shares in attendance approve the resolution;
    • merger, consolidation, acquisition, bankruptcy and/or dissolution of the company, as well as the transfer or pledge of the company’s assets as security for a loan, which comprise more than 50% of the company’s net assets in one or more related or unrelated transactions, must be approved by a resolution at a GMS at which at least three-quarters of the company’s voting shares are represented and at least three-quarters of the shares in attendance approve the resolution.

In all cases, the Company Law permits the AOA to require a greater percentage of votes to approve resolutions for these and any other matters. Read more »

SSEK Partner Recognized in 2018 Benchmark Litigation Rankings for Indonesia

Dewi Savitri Reni

SSEK partner Dewi Savitri Reni was named a Future Star for Indonesia in the Benchmark Litigation 2018 rankings.

Vitri is a supervising partner of SSEK’s arbitration and dispute resolution practice. Her recent projects include assisting a multinational automaker with its exit from Indonesia, advising a multinational banking group on insolvency proceedings against a Singapore shipping company, and assisting a Russian industrial conglomerate in a dispute related to a joint venture in Indonesia.

In addition to the individual recognition for Vitri, SSEK was named a leading litigation and dispute resolution firm for Indonesia in the Benchmark Litigation 2018 rankings. Read more »

Employee Data Privacy in Indonesia

Labor & Employment

There is no law or regulation in Indonesia that specifically regulates the collection, use or handling of an applicant’s personal data, including protection of the privacy of an employee’s particulars. The Indonesian Minister of Communication and Informatics (MOCI) relatively recently issued MOCI Regulation No. 20 of 2016 regarding the Protection of Personal Data in Electronic Systems (MOCI Reg 20), which stipulates the protections afforded to personal data stored in an electronic system.

While there is no regulation that stipulates the protection of non-electronic personal data, generally, all persons have a general right to privacy under the Indonesian Human Rights Law.

Retaining Personal Data of Employees

Manpower laws and regulations do not expressly deal with employee data privacy. In light of such paucity, reference shall be made to MOCI Reg 20 as well as Law No. 8 of 1997 regarding Corporate Documents (Law No. 8). Read more »

SSEK Leads Training on Indonesian Land and Building Law

DR-SIW

SSEK managing partner Denny Rahmansyah and senior associate Stephen Igor Warokka recently led a training session on Indonesian land and building law for the legal division of Badan Penyelenggara Jaminan Sosial (BPJS) Ketenagakerjaan, Indonesia’s social security administration agency for workers.

The training included the types of land rights in Indonesia, land purchases and the disposal of land assets, and licensing issues to optimize land banks. Denny and Stephen also discussed the procedures and requirements for building construction. Finally, they touched on best practices to avoid land disputes.

Denny leads SSEK’s real estate practice, which is recognized by legal directories including Chambers & Partners, The Legal 500 and Asialaw as a market leader.