After a long and contentious discussion involving many interested parties, the Government of Indonesia issued a regulation that bans the export of raw minerals/ores. Government Regulation No. 1 of 2014 (GR 1/2014) was issued on January 11th, 2014, one day before the deadline for the domestic processing and refining of raw minerals/ores as mandated by … In Indonesia, Processing Minerals for Export now Mandatory
On December 30, 2013, the Indonesian Minister of Manpower and Transmigration (MOMT) issued MOMT Regulation No. 12 of 2013 regarding Procedures for Employing Foreign Manpower (MOMT Reg 12). This new regulation revokes the 2008 MOMT Regulation (No.PER.02/MEN/III/2008) on the same subject. The new regulation contemplates several changes to the previous 2008 regulation and introduces a … New Rules on Hiring Foreigners in Indonesia
Bank Indonesia, Indonesia’s central bank, officially transferred its banking microprudential supervisory powers to the Financial Services Authority (OJK) on December 31, 2013. Agus Martowardojo, the governor of Bank Indonesia, signed the Record of Transfer (Berita Acara Serah Terima) to Muliaman D. Hadad, the Chairman of the OJK’s Board of Commissioners. The OJK now has the … OJK at Full Power After Taking Over Banking Supervision from Bank Indonesia
In a landmark decision on June 20, 2013, the West Jakarta District Court annulled a Loan Agreement entered into between a local borrower and an offshore lender because it was executed in English only. The decision is not controversial in our view since all agreements entered into by an Indonesian party with a foreign party … Indonesian Court Annuls Loan Agreement on Language Law: What Does It Mean for Your Agreements?
Microfinance Institutions (“MFIs”) play an important role in Indonesia, dispensing financial support to people and small businesses that might not have qualified in the traditional banking system. Until recently MFIs largely operated without a comprehensive regulatory framework to guide their operations, and with little supervision. After a long wait the Government has issued a framework … Microfinance Institutions Move Out of Regulatory Black Hole
Indonesia’s central bank, Bank Indonesia (“BI”), has issued a regulation designed to improve the competitiveness of the banking system by streamlining bank ownership through consolidation and enhancing supervision, particularly in the area of good corporate governance. BI Regulation No. 14/24/PBI/2012 regarding Single Ownership in Indonesian Banks was issued on December 26, 2012. It addresses what … Indonesian Banks Get New Ownership Rules
Foreign and foreign-owned enterprises represent some of the largest employers in Indonesia. Accordingly, some foreign companies expressed consternation when, on February 29, 2012, the country’s Ministry of Manpower and Transmigration issued Decree No. 40 of 2012 on Certain Positions that Are Restricted for Foreign Workers (the “Decree”). The Decree, among other things, lists 19 positions that … The Effect of Decree 40: Foreigners Are Banned from the Human Resources Arena in Indonesia
In an unexpected development with profound implications, the Constitutional Court of the Republic of Indonesia on November 13, 2012, announced a decision disbanding BP MIGAS, the upstream regulator of the petroleum industry in Indonesia. In response, President Susilo Bambang Yudhoyono that same day issued Presidential Regulation No. 95 Year 2012, which transferred the responsibilities of … BP Migas Decision
Indonesia’s Constitutional Court (the “Court”) issued decisions in two cases on June 4, 2012, that could help change the playing field in the mining industry, giving smaller companies the chance to compete with big miners. In separate rulings in cases brought by tin miners from Bangka-Belitung Province, the Court found that several provisions of Law … Review of the Indonesian Mining Industry
The Indonesian Ministry of Trade (MOT) issued a new regulation on September 21, 2012, amending some of the provisions on the Importer Identification Number (API). The new regulation, MOT Regulation No. 59/M-DAG/PER/9/2012 (MOT Reg 59), amends MOT Regulation No. 27/M-DAG/PER/5/2012 regarding Provisions on Importer Identification Number (MOT Reg 27). Below is a look at the … Indonesia Import Regulation Update: MOT Reg No. 59
