New Rules on Business Continuity Plans in Indonesia – What You Should Know and What you (Don’t) Have to Do

In principle, all companies should have a so-called business continuity plan – commonly known as “BCP” – in place. Business continuity planning is the process a company undergoes to create a prevention and recovery system from potential threats such as natural disasters or cyber-attacks. It is designed to protect personnel and assets and make sure they can function quickly when disaster strikes…

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Signing Documents in Times of COVID-19 and E-Signatures: Much Ado About Nothing?

Some parts of Indonesia, and Jakarta in particular, have again went into a lockdown as of mid-September 2020 as a result of COVID-19. Although the lockdown is scheduled to only last for two weeks, yet additional lockdowns may be necessary. Either way: with or without social distancing, meeting in person has become much more difficult. Many key decision makers work from home and prefer to not meet others in person in face of the risk of getting infected. This raises the question on what the formal requirements are for closing a deal in Indonesia and, in particular whether contracts and other…

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Personal Data Protection Act: New Law, New Challenges

Background Overview
The potential for misuse of sensitive personal information has triggered legislative and regulatory action across the globe, including Indonesia. On 24 January 2020, President Joko Widodo signed the Personal Data Protection (PDP) Bill which is currently being finalised by the Indonesian House of Representatives (DPR) and will be targeted to be passed on the upcoming months.

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Dismissing Employees in Times of COVID-19

Dismissing Employees in Times of COVID-19

COVID-19 has had a devastating effect on many businesses around the world and Indonesia, although the number of confirmed COVID-19 cases are very low in comparison to its vast population, is affected the same way as other countries. Many companies have experienced a sharp drop in revenue while their fixed costs have largely remained at the same level.

For many companies, a large portion of these fixed costs are employee salaries. It is thus not surprising that there had already been many layoffs at the beginning of the global pandemic:

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Immigration Stay Permits Service During the New Normal

COVID-19 has forced governments around the world to take various different actions. Almost all governments imposed travel restrictions one way or another. In Indonesia, international travel has been almost halted and foreigners are finding it very difficult to enter Indonesia.
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The Directorate General of Immigration recently issued Circular Letter No.IMI-GR.01.01-1102 of 2020 on Immigration Stay Permit Service during the New Normal Period (“Circular Letter”). It came into effect on 13 July 2020 and …

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Obtaining A Medical Devices Distribution License in Indonesia

The global COVID-19 pandemic has gravely affect the world”s economy, including that of Indonesia. Despite the biggest decline in economic growth since the Great Depression during the 1930s, the recent disruptions have their “winners” from a business point of view. The medical industry is one of them and Indonesia, which heavily relies on the import of medical devices, is a potentially highly lucrative market.
Medical devices are instruments (e.g. surgical mask), machines or implants…

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COVID-19 Workplace Guidelines – What You Must Know Not to Breach the Law (Part 3)

Indonesia, like virtually all other countries around the world, has issued various decrees over the last few months to stop the spread of the Coronavirus. These decrees among others provide for social distancing and require that employees work from home. 1

However, exemptions apply and some companies are allowed to keep open despite the measures taken. These companies must take various measures and the Ministry of Health recently issued a decree on Workplace Guidelines (the “Guidelines”), 2 setting out clear details of what obligations…

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COVID-19 Workplace Guidelines – What You Must Know Not to Breach the Law (Part 2)

Indonesia, like virtually all other countries around the world, has issued various decrees over the last few months to stop the spread of the Coronavirus. These decrees among others provide for social distancing and require that employees work from home. [1]

However, exemptions apply and some companies are allowed to keep open despite the measures taken. These companies must take various measures and the Ministry of Health recently issued a decree on Workplace Guidelines (the “Guidelines”), [2] setting out clear details…

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Investment in Indonesia: Establishing a Foreign Representative Office

Indonesia is one of many countries which has become a destination for foreign investors to make an investment with the purpose of maximizing their profits. Having a large land mass, rich soil and benefitting from a tropical climate, Indonesia is opulent in natural resources such as oil and minerals, timber and raw/semi-processed agricultural products. For those wishing to invest in Indonesia, the usual choice is the foreign-invested Ltd. (in Indonesian: Perseroan Terbatas Penanaman Modal Asing). [1] However, prior to establishing a foreign-invested Ltd., investors are allowed to…

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COVID-19 Workplace Guidelines – What You Must Know Not to Breach the Law (Part I)

Indonesia, like virtually all other countries around the world, has issued various decrees over the last few months to stop the spread of the Coronavirus. These decrees among others provide for social distancing and require that employees work from home. [1]

However, exemptions apply and some companies are allowed to keep open despite the measures taken. These companies must take various measures and the Ministry of Health recently issued a decree on Workplace Guidelines (the “Guidelines”), [2] setting out clear details of what obligations there are both…

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