Indonesia has not ratified the Nairobi International Convention on the Removal of Wrecks of 2007. Law No. 17 of 2008 regarding Shipping (the “Shipping Law”), as implemented by Minister of Transportation (“MOT”) Regulation No. PM 71 of 2013, as lastly amended by MOT Regulation No. PM 38 of 2018 regarding Salvage and Underwater Works (“MOT … Indonesian Shipping Law – Marine Casualty
Restrictions on foreign investment in Indonesia are regulated by the Negative Investment List. There are lists of industries for which foreign investment is open (up to a certain percentage of its capitalisation), for example: A construction services business is open for up to 67% foreign investment (70% if the foreign investor is from an … Investing in Indonesia – Investment Restrictions
The primary source of law relating to corporate governance in Indonesia is Law No. 40 of 2007 regarding Limited Liability Companies (the Company Law). Additionally, corporate governance for certain types of companies, namely those operating in the insurance and capital market sectors, as well as issuers and public companies, is governed by the Financial Services … Corporate Governance in Indonesia – Sources of Law, Regulation and Practice
A new regulation has introduced significant changes to the implementation of Indonesia’s Construction Services Law, which will affect business actors in the country’s construction sector. The new regulation, Government Regulation Number 22 of 2020 (“GR 22“) regarding Implementing Regulations of Law Number 2 of 2017 regarding Construction Services (January 12, 2017) (the “Construction Services Law“), … New Regulation Puts Focus on Local Resources in Indonesia’s Construction Sector
An overseas company can trade directly in Indonesia through appointing an Indonesian agent, distributor, or franchisee. To do so, an overseas company must enter into a distribution, agency or franchise agreement with an existing Indonesian company. With this structure, the overseas company does not need to establish a limited liability company with foreign ownership (PT … Establishing a Business in Indonesia – Establishing a Presence from Abroad
In addition to the Indonesian Constitution, the principal law that regulates the mining industry is Law 4/2009 on Coal and Mineral Mining (Law 4/2009), the amendment of which, under the draft Amendment to Law 4/2009 (the Mining Law Amendment), was recently ratified by the House of Representatives. The Ministry of Energy and Mineral Resources (MEMR) … Mining in Indonesia – Principal Laws and Regulatory Bodies
Foreign entities often structure acquisitions of Indonesian entities so they can rely on Indonesia’s double tax treaties with, among others, Singapore, Hong Kong or the Netherlands, as governed under Directorate General of Taxation Regulation No. Per-25/PJ/2018 regarding Avoidance of Double Taxation. Further, to encourage investment, Ministry of Finance Regulation No. 258/PMK.03/2008 regarding Article 26 Withholding … Private Equity in Indonesia – Incentive Schemes
Law No. 17 of 2008 regarding Shipping (the “Shipping Law”) provides that a vessel may be arrested by the harbormaster at the relevant port, based on a written court order that is issued if the vessel is involved in a criminal or civil case. The Shipping Law further provides that a court order for a … Indonesian Shipping Law – Arrest and Security
Under Indonesia’s tax regulations, there are domestic taxpayers and foreign taxpayers. Foreign individuals who reside or are present in Indonesia for more than 183 days in a 12-month period or who are present in Indonesia and have the intention to live in Indonesia are deemed domestic taxpayers. The 12-month period is based on the current … Investing in Indonesia – Tax
By Budi Widuro With COVID-19 infections not slowing in the country, the Government of Indonesia (\"GOI‚Äù) has continued to issue regulations aimed at fighting the pandemic and the economic downturn it has caused. One of the most recent policies from the GOI is the relaxation of mandatory contributions by employers to manpower social security programs. … Indonesia Relaxes Mandatory Employer Contributions to Manpower Social Security Programs Amid COVID-19
