
Electronic System Provider (PSE) Registration Provisions in Indonesia
The blocking of Private Scope Electronic System Operators (“PSE”) that missed the Ministry of Communication and Information’s (“Kominfo”) notice of the registration deadline resulted in several PSE’s being blocked, including PayPal, on July 30th, 2022. As a result, the policy has sparked public outcry. In response, Kominfo announced a new approach to temporarily open the PayPal website and expects consumers who utilize PayPal services will be…

Amendment to Smelter Licenses in Indonesia: Annulment of Special Operation Production Mining Business License for Implementation of Industrial Business License
In accordance with the government’s program to promote the value of natural resource commodities and with the enactment of Law No.3 of 2020 concerning amendments to Law No.4 of 2009 (“Law 3/2020”), there has been a significant change in the licensing to carry out smelter operation business, especially smelter for nickel as a commodity. It is hoped that…

Labor Law Guide: What You Need to Know in the Event of a Labor Strike in Indonesia
Regulations in Indonesia are very dynamic. This is to create ease for investment to Indonesia. Changes in regulations, specifically in the area of labor issues, can sometimes trigger a conflict between the employer and the laborers, leading to a strike. A strike is an action by laborers that is planned and carried out jointly and/or by a trade union/labor union to stop or slow down work. Strikes by laborers are thankfully not a regular occurrence, but…

Construction Equipment Ownership for Foreign Investment Construction Service Business Entities (BUJK PMA) and Construction Representative Offices (KP BUJKA) in Indonesia
Infrastructure investment has been identified as one of the key catalysts for unlocking a country’s overall economic potential, promoting growth, creating jobs and reducing poverty. Efficient infrastructure is also needed to lower…

Construction Consortiums in Indonesia
A consortium is a group of two or more individuals or companies that work together to achieve a common objective. Entities participating in a consortium pool resources but are otherwise only responsible for the obligations set out in the consortium’s agreement. Therefore, every entity under the consortium remains independent regarding their normal business operations and has no say over another member’s operations that are unrelated to the consortium. The law in Indonesia does not require using a particular standard form of agreement issued by a specific organization.

Revocation of Export Prohibition on Crude Palm Oil and its Derivatives in Indonesia
On June 8, 2022, the Ministry of Trade lifted the temporary export prohibition on Crude Palm Oil, Refined, Bleached and Deodorized Palm Oil, Refined, Bleached and Deodorized Palm Olein, and Used Cooking Oil (“CPO and its derivatives”) commodities through Minister of Trade Regulation No. 30 of 2022 in conjunction with the Minister of Trade Regulation No. 39 of 2022 (“MoTR 39/2022”), which creates a positive outlook for investment in Indonesia.

Private-interest Terminal and Special Terminal Regulation in Indonesia
Along with the economic developments in the Port sector, business owners can build special terminals to facilitate their business, such as a Special Terminal and Private-interest Terminal. Terminal and transportation infrastructure has a critical role in supporting business chains. Without the availability of decent transportation infrastructure, businesses will face many obstacles, i.e., delays in shipping goods.

Employment Termination due to Urgent Violation in Indonesia
In some cases, termination of employment is carried out by employers immediately against employees who have committed grave wrongdoings without any warning letter (“Urgent Violation”). Typically, the terms and conditions for termination due to Urgent Violation are set under the Employment Agreements, Company Regulations, and Collective Labor Agreement. The most common questions from the employers…

Compensation Payment on the Change of Employment Agreement in Indonesia
The implementation of the Job Creation Law (“Omnibus Law”), which was enacted in 2020, has made a significant change to the law and regulation in Indonesia, including the Company Law, Investment Law in Indonesia, and the Indonesian Labor Law. The Job Creation Law makes it easier to attract foreign investment to Indonesia. Following to the Job Creation Law, the Government of the Republic of Indonesia has enacted Government…

Apostille, Foreign Public Document Legalization Service in Indonesia
The Ministry of Law and Human Rights has enforced the Apostille certificate since June 4, 2022 based on the Regulation of the Minister of Law and Human Rights No. 6 of 2022 concerning Apostille Legalization Services on Public Documents (“RM 6/2022”), which implements regulation of the Presidential Regulation No. 2 of 2021 concerning Ratification of the Convention Abolishing the Requirement of Legalization for Foreign Public…
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