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Risk-Based Investment System

One of the adjustments for investments regulated under Law No. 11 of 2020 regarding Job Creation is the transition to a Risk-Based Investment System implemented in the Risk-Based Business Licensing. According to Article 1 Government Regulation No. 5 of 2021 regarding Risk-Based Business License Management (GR 5 2021), Risk-Based Business Licensing is a business permission that is granted to applicants to start their business according to the level of potential for injury or loss from a hazard or a combination of the likelihood and effect of the hazard.

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Dispute Between the Shareholders in the Event of Default in Capital Payment

Establishing a new company or investing in an existing business, no matter the size, requires an agreement between two or more shareholders of a corporation. The Shareholder Agreement is made not only to set out the capital and management structure, but also to mitigate any risk of default related to the implementation of the Shareholder Agreement. The Shareholder Agreement can later be implemented in the Company Article of Association.

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Skill Recognition for Foreign Construction Workers

The construction sector has become the government’s mainstay sector, especially when it comes to encouraging the National Economic Recovery from the COVID-19 pandemic. It is also a work field that still needs to use foreign workers, considering the need for special skills, especially those related to complex technology, For example, the Mass Rapid Transit project. In addition, foreign workers are used for work when the source of funds comes from investment, such as the Jakarta-Bandung high-speed rail work…

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No Royalty for Coal Process

Law No. 11 of 2020 concerning Job Creation (“Omnibus Law”) contains many new regulations regarding industrial, including the Implementation of the Energy and Mineral Resources Sector, regulated in the Government Regulation No. 25 of 2021 (“GR 25/2021”), which mostly regulates mineral mining activities and electricity. One of the new adjustments in the regulation is stipulated in article 3, which states: “Production operation Mining Business Permit, Production Operation Special Mining Business Permit and…

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Provisions Regarding Energy and Electricity according to Government Regulation number 25 of 2021

Law number 11 of 2020 concerning Job Creation (or generally referred to as the Omnibus Law) contains many new regulations regarding industrial activities, requiring the implementation of new regulations. Some of those new regulations are in Government Regulation number 25 of 2021 concerning the Implementation of the Energy and Mineral Sector (GR 25 of 2021) which mostly regulates coal and mineral mining activity, as well as electricity.

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Commercial Disputes in Indonesia: Finding an Alternative Dispute Resolution Body covering Mediation and Arbitration in Indonesia

A commercial dispute is a dispute that commonly arises from a commercial contract. This can be between companies, individuals, a mix of both or even between an investor and a state. Keeping in mind that court litigation might be lengthy and disclosed to the public, the contractual party might prefer to settle the dispute by way of Mediation and Arbitration. For agreements, including agreements related to commercial matters (e.g., sale and purchase agreement

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Membership Termination of Social Security BPJS for Dissolved Companies

As stipulated in article 13 of Law No. 40 of 2004 concerning National Social Security System (‘Law 40/2004’), employer(s) must register themselves and their business for social security programs related to manpower to the Social Security Administrator (Badan Penyelenggara Jaminan Sosial / ‘BPJS’), which requires them to contribute a certain amount of money for their employee’s insurance/social securities. This obligation is mandatory and cannot be waived. Those programs are Work Accident Security (Jaminan Kecelakaan Kerja),

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Sanctions for Workers When Abusing Doctor’s Note

Every worker/laborer has the right to a decent living, including being given leniency if the worker/laborer is sick. Article 81 point 40 of Law No. 11 of 2020 concerning Job Creation (“Omnibus Law”) which amends Article 153 paragraph (1) letter (a) of Law No. 13 of 2003 concerning Manpower (“Manpower Law”) prohibits employers from terminating employment relationships (layoffs) on the grounds that the worker is unable to come to work due to illness according to a doctor’s statement as long as the period does not exceed 12 (twelve) months continuously. Based on these provisions, the prohibition….

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Omnibus Law Employment Sector: Employment Termination Procedure

Following Law No. 11 of 2020 on Job Creation (“Omnibus Law”), the Indonesian government has enacted a number of regulations in Omnibus Law. One of the enacted regulations is Government Regulation No. 35 of 2021 on the Fixed-Term Contract, Outsourcing, Work and Resting Hours and Termination of Employment (“GR 35”).

The GR 35 provide procedures for terminating employment. Article 36 of GR 35 states that the termination of …

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Value-Added Tax in The Liquidation Process of A Company

Liquidation is the process of dissolving a limited liability company, accompanied by the sale of its assets to meet their outstanding payment obligations, and distribute the remaining balance to all shareholders.

Law No. 40 of 2007 concerning Limited Liability Companies (“Company Law”) stipulates that the company liquidation can be caused by:
1. resolution of General Meeting of Shareholders (“GMS”). The GMS is a company organ other than the Board of Directors, and Board of Commissioners. Based on

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Schinder Consultant London Ltd.


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