SPIN-OFF COMPANIES: A GENERAL VIEW
A spin-off company can be understood as a new, independent company resulting from either a separation or a solution from a larger parent company. The action of ‘spinning-off’ a company may be achieved by distributing or separating the shares (including its assets, employees, and intellectual property) from the parent company as special dividends on a pro-rata basis.
There are number of reasons why parent companies create spin-offs. One common motive is to allow the parent company to focus on core operations and on the management of its resources and divisions while using a spin-off to expand into a wider market. While this can potentially have higher costs…
Expatriate Employment Permits: No Longer Needed!
To address industry specialization demand, the Indonesian government has issued a new regulation concerning Procedures for Employing Expatriates under the Minister of Manpower Regulation Number 10 Year 2018 (“Permenaker 10/2018”). This regulation facilitates the implementation of Presidential Regulation Number 20 Year 2018 concerning Exertion of Expatriate Employment (Penggunaan Tenaga Kerja Asing), which was issued on 26 March 2018 and took effect on 30 June 2018.
Examining the new regulation, there are some significant changes the government has mandated in terms of expatriate employment….
CHOOSING A SUBCONTRACTOR
Choosing a contractor or subcontractor can often have devastating consequences. The wrong one can plague a project like constant natural disasters. Some of the most typical consequences companies suffer from the making the wrong choice are as follows:
Bad reputation. The project owner can begin to question your reputation. You have to be fully aware that keeping a good portfolio from the current project owner will help to land the next job.
Loss of scheduling delays. If you choose the wrong subcontractor, it might cause your construction schedule to…
A General Perspective On Peer-to-Peer Lending in Indonesia
Let’s take a big-picture look at this growing sector by answering some of the most frequently asked questions posed to us at Schinder Law Firm.
What is Peer-to-Peer Lending?
The definition of Peer-to-Peer (P2P) Lending or FinTech Lending in the Financial Services Authority Regulation (POJK) Number 77 / POJK.01 / 2016 is the provision of financial services by bringing together lenders with the borrower in the context of borrowing and lending…
FRANCHISING IN INDONESIA
Under the Ministry of Trade Regulations No. 53/M-DAG/PER/8/2012 JO and No. 57/M-DAG/PER/9/2014 Regarding to Franchise Organizers (“Law”), a Franchise is defined as a special right, owned by an individual or a business entity to a business system with a business characteristic, in order to market goods and / or services that have proven successful and can be utilized and / or used by other parties under a Franchise agreement. In order to become a Franchise Organizer, the products or the method must meet the following criteria. The Franchise must :
1. Posses a business characteristic;…
THE TAX HOLIDAY FACILITY
Who does it apply to and why?
In order to attract investment, The Government of Indonesia amended the previous Minister of Finance Regulation No. 159/PMK.010/2015 JO No. 103/PMK.010/2016 (“PMK”) regarding Corporate Income Tax Reduction Facilities (otherwise known as the Tax Holiday Facility) with the latest Minister of Finance Regulation No. 35/PMK.010/2018 (“Regulation”). The new Regulation became effectively enforced on 04 April 2018. Subsequenlty, PMK has been revoked and declared null and void by Regulation.
KNOW YOUR BENEFICIAL OWNERS PRINCIPLE
Who’s in charge? Where’s the head hancho? How do I find the big boss?
Sometimes discerning just who is legally responsible for a company can be problematic. In Indonesia however, the process of identifying the top dog is one step closer to transparency in business.
On 5 March, 2018, The President of Indonesia issued President Regulation No.13 Year 2018 concerning the Implementation of the Principle on Recognizing Beneficial Ownership of Corporations in the Framework of the Prevention and Eradication of Money Laundering and Criminal Acts of Terrorism Financing…
PT Shenhua Guohua Lion Power Indonesia (“SGLPI”) Appoints Schinder Law Firm as its On-Site Legal Trainer
While Schinder Law Firm (SLF) has been providing legal services to SGLPI for some time, its scope of services has now expanded to include legal training for SGLPI staff on their project site. The training will take place on a regular basis, and it will be geared toward ensuring legal compliance with Indonesian Laws and Regulations, specifically on both applicable labor law and company law. Trainings will be led by both Budhi Satya Makmur (Partner) and Erick Sanjaya Perkasa (Associate). Within the breadth of the training,….
WHEN YOU SHARE SUCCESS, IT GROWS!SCHINDER LAW FIRM’S COLLABORATION WITH THE LAW FACULTY OF ATMA JAYA UNIVERSITY PAYS IT FORWARD.
It started from a simple vision. What started in a private living room has evolved into a bustling and burgeoning law firm. Schinder Law Firm (SLF) has not only emerged as a first-class, full scope law firm but also as a avid contributor to its legal community. The firm feels its success can only be fully realized by doing its part to raise the standard of…
Initial Concerns and Start-up Tips for Foreign Investors
As Indonesia attracts more and more foreign investors, it’s vital to understand both the common hurdles and the creative tricks involved with doing business in this fast-growing economy. Just in the third quarter of 2017, the Indonesia Investment Coordinating Board or Badan Koordinasi Penanaman Modal (BKPM) recorded that total foreign investment in Indonesia grew by 12% (twelve percent), reaching Rp 111.7 trillion, in comparison with the same quarter of 2016. Obviously, foreign investment in Indonesia continues to increase. However, there are some specific stipulations on …
- Dispute Resolution
- Foreign Direct Investment
- Business Formation, Mergers and Acquisitions
- Land and Property
- Construction and Real Estate
- Employment and Labor
- Environmental Law
- Bankruptcy, Insolvency and Restructuring
- Aviation and Shipping
- White Collar Crime
- Intellectual Property and IP Dispute
- Privacy, Data Protection and Cyber-Security