Blog Category: Legal Updates

New Regulation Allows Direct Appointment of Regional-Owned Enterprises for Construction Projects

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By Ira A. Eddymurthy and Awang Fahrizal The Indonesian government recently issued Government Regulation No. 54 of 2016 regarding the Third Amendment to Government Regulation No. 29 of 2000 regarding the Implementation of Construction Services (Third Amendment). The Third Amendment introduces additional provisions similar to those in the previous amendment, namely Government Regulation No. 79 … New Regulation Allows Direct Appointment of Regional-Owned Enterprises for Construction Projects

Distributing Goods in Indonesia: What Are the Rules?

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By Ira A. Eddymurthy and Christina N. Soela Indonesia’s Ministry of Trade (MOT) recently issued a regulation on the distribution of goods. MOT Regulation No. 22/M-DAG/PER/3/2016 regarding General Provisions on the Distribution of Goods (MOT Reg 22/2016) stipulates that goods can be distributed directly or indirectly to consumers within Indonesia. It revokes Minister of Industry and Trade … Distributing Goods in Indonesia: What Are the Rules?

Indonesian Legal Review: Seaports

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The Government of Indonesia (the GOI) has over the past year issued several regulations of note on seaports. Ministry of Transportation Regulation No. PM 15 of 2015 regarding Concessions and Other Forms of Cooperation Between the Government and Seaport Business Entities in the Field of Seaports (MOT Reg. 15/2015) Government Regulation No. 61 of 2009 … Indonesian Legal Review: Seaports

Update on Import Regulations for Indonesia

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Indonesia’s Ministry of Trade (MOT) recently issued new regulations that affect the rules for importing different products. Import of Certain Products MOT Regulation No. 87/M-DAG/PER/10/2015 regarding Provisions on the Import of Certain Products (MOT Reg 87/2015) revokes MOT Regulation No. 83/M-DAG/PER/12/2012 regarding the same, as amended several times, lastly by MOT Regulation No. 73/M-DAG/PER/10/2014 (together, … Update on Import Regulations for Indonesia

A Look at Indonesian Trade Regulations on Importer Identification Numbers

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Indonesia’s Ministry of Trade (MOT) recently issued new regulations on Importer Identification Numbers. Special Importer Identification Number The MOT has revoked the requirement for importers to obtain a Special Importer Identification Number (NPIK) for the import of certain products such as textiles, shoes and electronics. The NPIK requirement had been stipulated in Minister of Industry … A Look at Indonesian Trade Regulations on Importer Identification Numbers

Legal Review: Public-Private Partnerships in Indonesia

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The concept of Public-Private Partnerships (PPP) embodies one or more private parties comprising a consortium, commonly consisting of construction companies, operating companies and financiers that together undertake to finance and develop a project or asset for use by the government on behalf of the public and to be paid for over time. The types of projects … Legal Review: Public-Private Partnerships in Indonesia

Real Estate Disputes in Indonesia

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Real estate is a very broad subject that touches many aspects of Indonesian law, e.g., administrative law, environmental law, construction law, civil law, agrarian/land law, etc. There is no arbitration facility or process specifically designed to accommodate real estate matters under Indonesian law. Disputes related to real estate are treated in a similar manner as … Real Estate Disputes in Indonesia

Downsizing in Indonesia

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There has been considerable confusion about whether the law and courts allow employers in Indonesia to downsize a part of their workforce for efficiency reasons. We are writing to clarify the matter. Termination under Article 164(3) of the Employment Law Article 164(3) of Law No. 13 of 2003 regarding Employment allows a company to terminate … Downsizing in Indonesia

Indonesian Legal Review: Franchise Law

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With approximately 260 million people, Indonesia is the largest consumer market in Southeast Asia and the ASEAN region and is attractive to international and local franchise businesses. When the Government of Indonesia (GOI) introduced a number of economic policy packages in a de-regulation effort to stimulate the economy, none of the policy packages focused on … Indonesian Legal Review: Franchise Law