Legal Alert February 2017

Legal Alert

Please find the SSEK Legal Alert for February 2017. The SSEK Legal Alert is a monthly survey designed to keep you up to date with the latest legal developments in Indonesia.

Click here: Legal Alert February 2017

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 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 review, click here.

You can see the full report here.

SSEK is regularly rated as a top-tier employment and labor law firm by leading legal directories including Chambers & Partners, Legal 500 and Asia Law & Practice. Read more »

Development of Oil and Natural Gas in Indonesia

Oil & Gas Regulation 2017

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 are separately regulated and organized. Upstream activities include exploration and exploitation, and are regulated under Government Regulation No. 35 of 2004 regarding Upstream Oil and Natural Gas Business Activities as has been amended several times, the latest by Government Regulation No. 55 of 2009 (“GR 35″). The upstream sector is managed and supervised by the Special Task Force for Upstream Oil and Natural Gas Business Activities (“SKK Migas”).

Due to the unique territorial composition of the archipelagic state of Indonesia, upstream oil activities may be undertaken in onshore and offshore areas. Work areas for onshore and offshore operations are determined by the Ministry of Energy and Mineral Resources (“MEMR”) based on consultations with and recommendations from the respective regional governments.

Downstream activities encompass processing, transportation, storage and trading, and are regulated under Government Regulation No. 36 of 2004 regarding Upstream Oil and Natural Gas Business Activities as has been amended by Government Regulation No. 30 of 2009 (“GR 36″). Downstream operations fall under the auspices of the MEMR and Downstream Oil and Gas Regulatory Agency (“BPH Migas”). Read more »

SSEK an ALB Employer of Choice for Indonesia

ALB 2017 Employer of Choice

SSEK Legal Consultants has been named a 2017 Employer of Choice for Indonesia in the annual rankings by Asian Legal Business (ALB) of the region’s best law firms to work for.

The rankings are based on the responses of private practice lawyers across Asia, as well as ALB’s own market knowledge. Law firms are ranked based on job satisfaction, remuneration, work-life balance, career prospects, mentorship, job security and other factors.

SSEK was named the Labor and Employment Law Firm of the Year, and the Restructuring and Insolvency Law Firm of the Year, and was recognized for the M&A Deal of the Year at the 2016 ALB Indonesia Law Awards.

SSEK was also recognized as a Tier 1 M&A Firm in 2016 by ALB. Read more »

New Construction Law in Indonesia: Changing the Regulatory Framework

Construction

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 most significant changes and new provisions in the New Construction Law:

Types of Construction Services: The Previous Construction Law divided construction services into (i) construction planning and supervision services, (ii) construction implementation services, and (iii) integrated construction services. Under the New Construction Law, the names of the types of construction services have been changed to the following:

  1. Construction consultation business (previously known as construction planning and supervision services);
  2. Construction work business (previously known as construction implementation services); and
  3. Integrated construction work business (previously known as integrated construction services).

The above types of construction services are further divided as follows: Read more »

SSEK Partner Ira Eddymurthy Discusses Cross-Border Investment and Trade at IPBA Conference

Ira Eddymurthy

Ira A. Eddymurthy, a founding partner of SSEK Indonesian Legal Consultants, was a featured speaker at the Inter-Pacific Bar Association (IPBA) conference held April 6-9 in Auckland, New Zealand.

Ira spoke during a session on the Trans-Pacific Partnership (TPP) and cross-border investment and international trade. The session was held on Friday, April 7.

Ira was joined by former government officials and counsel from jurisdictions shaping the TPP in examining questions such as, Can the TPP survive without the United States? Are its widely diverse provisions even desirable, ranging from traditional market access for goods to new opening of services, e-commerce, labor commitments and the much-debated investor-state dispute settlement mechanism? Will the TPP’s fate either way significantly affect stability in Asia?

Ira is the co-head of SSEK’s award-winning corporate mergers and acquisitions practice group. Her practice also includes capital markets and banking law, finance, including project finance, insurance, and tax law. Ira is recognized as one of Indonesia‚Äôs leading corporate and M&A, banking and finance, and capital markets lawyers by independent legal publications including Chambers & Partners, IFLR1000, The Legal 500 and Who’s Who Legal. Read more »

Michael Carl of SSEK Featured at INSOL Seminar on Insolvency

Michael S. Carl

Michael S. Carl, an international legal adviser at SSEK Indonesian Legal Consultants, was a featured speaker at a one-day seminar in Seoul organized by INSOL, an international association of restructuring, insolvency and bankruptcy professionals.

The seminar covered the role of insolvency practitioners in rehabilitation proceedings, cross-border insolvency in the shipping industry, the reorganization of small and medium businesses in financial distress, schemes of arrangement in different jurisdictions, and insolvency of multinational enterprise groups.

Michael discussed the bankruptcy/insolvency regime in Indonesia, including the role of insolvency practitioners.

You can find his presentation slides here. Read more »

SSEK Lawyers Highly Ranked in New Chambers Directory

Chambers Asia 2017 Leading Individual

Five SSEK partners and foreign legal advisors have been recognized as leading practitioners in Indonesia across a host of practice areas in the 2017 Chambers Asia-Pacific directory of the leading lawyers in the region.

SSEK founding partner Ira A. Eddymurthy received a Band 1 ranking from Chambers for Corporate/M&A.

Darrell R. Johnson, a senior foreign legal advisor at SSEK, received a Band 1 ranking for Corporate/M&A, once of only three foreign legal advisors in Indonesia to receive that recognition. Chambers noted that Darrell was highly rated by commentators, who called him “a talented lawyer.”

Michael D. Twomey, a senior foreign legal advisor, was ranked as a leading practitioner for Projects & Energy and Real Estate. Michael was called a “very strong practitioner” by peers.

Michael S. Carl was ranked as a leading practitioner for Banking & Finance, Corporate/M&A and Real Estate. He was the only foreign legal advisor in Indonesia to receive a Band 1 ranking for Banking & Finance. One client noted that Michael Carl “makes complex legislation easy to navigate.” Read more »

Bank Indonesia Issues Rules for Payment System Service Providers

Bank Indonesia in Yogyakarta

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 Payment Transaction Processing (“BI Regulation No. 18/40/PBI/2016″), which was issued on November 9, 2016. The Circular Letter is accompanied by an Attachment and an FAQ document.

The Circular Letter mainly concerns licensing procedures and requirements set by BI for various Payment System Service Providers, such as (i) Principals, (ii) Switching Providers, (iii) Issuers, (iv) Acquirers, (v) Payment Gateway Providers, (vi) Clearing Providers, (vii) Final Settlement Providers, (viii) Fund Transfer Providers and (ix) Electronic Wallet (E-Wallet) Providers. It also refers to Supporting Providers, as defined in BI Regulation No. 18/40/PBI/2016, which support Payment System Service Providers in processing payment transactions.

Foreign Ownership Limitation

Principals, Switching Providers, Clearing Providers and Final Settlement Providers must be in the form of a limited liability company (Perseroan Terbatas or “PT”) with at least 80% of shares owned by Indonesian citizens and/or Indonesian legal entities. If an Indonesian legal entity owning the shares has foreign ownership, the foreign ownership percentage in the Principal, Switching Provider, Clearing Provider and Final Settlement Provider will be calculated based on (i) direct and (ii) indirect foreign ownership.

Direct ownership is calculated based on one level of ownership above the Principal, Switching Provider, Clearing Provider and Final Settlement Provider, while indirect ownership is calculated based on two levels above. The following are illustrations of direct and indirect ownership. Read more »

Legal Alert January 2017

Legal Alert

Please find the SSEK Legal Alert for January 2017. The SSEK Legal Alert is a monthly survey designed to keep you up to date with the latest legal developments in Indonesia.

Click here: Legal Alert January 2017