Tunjangan Hari Raya Payments – Pay in Instalments or Later to Maintain Your Liquidity

Each country has its own customs when it comes to paying bonuses which are not performance-based to employees on certain occasions. In many parts of the world, employees receive a bonus payment for Christmas, in other parts this is prior to the summer holiday period or for the New Year. In Indonesia, employers are under an obligation pay a so-called “Religious Holiday Allowance” (Tunjangan Hari Raya). [1]

Tunjangan Hari Raya is a non-wage income to be paid once a year and at least seven days prior to the religious holiday in question…

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Setting Up A Trading Representative Office in Indonesia

As a country that has natural resources, as well as a fairly high level of economic growth, Indonesia has a good infrastructure development for investors, especially in trading activities. Foreign investors are able to establish a Trading Representative Office orKantor Perwakilan Perusahaan Perdagangan Asing (“KP3A”). KP3A is led by one or more foreigners or Indonesian citizens appointed by the parent company as Representative Executives in Indonesia. The functionality of KP3A is limited to:

Introduce, promote and market the goods…

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Foreign Investor Know-How: Make Sure You Don’t Get Your Investment Activity Report Wrong or Submit It Too Late

Any foreign investor to Indonesia must submit an annual investment activity report, detailing all relevant updates regarding its investment in Indonesia subsequent to the initial investment. [1] This report needs to be filed on a quarterly basis with the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal – BKPM) and is called “Investment Activity Report” (Laporan Kegiatan Penanaman Modal – LKPM). In the LKPM, every investor must provide an update on the initial investment …

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Schinder Law Firm Coronavirus Contract Risk Assessment Checklist

Since a few weeks, the world news has been dominated by reports on the Coronavirus. More and more countries, including Indonesia, impose travel bans and other measures which greatly impact trade and investment. Every business potentially affected must carefully take the necessary actions to minimize all risks.

In particular, we strongly advise all our clients to proactively mitigate their risk stemming from interruptions to their own operations or those of critical suppliers. We have already advised several of our clients …

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Implementation of The Electronic Court

Implementation of The Electronic Court
The development of technology in today’s era is moving at an unprecedented rate, especially in the field of information technology which covers the internet. Though technological progress has positively improved the lives of millions of individuals, it has forced the law to match its development in order to reap these same benefits institutionally. Recently, the Supreme Court (“SC”) has enacted a regulation regarding the implementation of electronic court (“e-Court”), designed to more efficiently handle the administrative tasks involved in cases and trials…

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Company Wind Up in Indonesia

Liquidation, or the winding up of a company, is a process during which a company’s assets are seized and realized – that is, converted into cash. This money is typically then used to pay off the company’s debts and liabilities.

The process ensures a fair distribution of a company’s assets between its creditors, members, and shareholders, and results in the termination of the company’s existence once all debts and liabilities have been paid.

Pursuant to Article 142 par. (1) of Law no. 40 Year 2007 regarding Limited Liability Law, liquidation may happen due to:
A decision made in a General Meeting of Shareholders (“GMS”);…

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Data Protection Officer Certification Worskhop

The economic and political impact of controlling personal data created the need to regulate organisations and individuals involved in collecting, storing, processing and transferring such data.

Jurisdictions across the world have enacted data protection laws with extra-territorial applications. Indonesia is no exception in adapting and responding to this global phenomenon in this 4th Industrial Revolution era. The largest South East Asian economy will have its own personal data protection law (Undang-Undang Perlindungan Data Pribadi) that adopts EU GDPR approach. Under the new Indonesian personal…

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Schinder-EP Legal Collaboration

Schinder has entered into official collaboration with EP Legal, a reputable Vietnamese law firm with headquarters in Ho Chi Minh and offices in Ha Noi and London, UK.

EP Legal is the first Vietnamese law firm which is specialized in oil & gas Industry with the foremost legal practice to support clients
‘s needs in the energy industry In Vietnam. EP Legal also focuses on infrastructure and manufacturing industry. They have substantial experience in delivering legal services in support of local Vietnamese and international commercial transactions, incorporations, mergers & acquisitions, maritime…

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Franchising Your Business in Indonesia

Domestic and international franchise businesses have expanded rapidly as a way of investing in Indonesia. In this country, it is nearly impossible for you to go outside without seeing a franchise business, be it in F&B (McDonald’s, KFC, Starbucks Coffee), retail (Alfamart, Indomart), or beauty and personal care (Haircode, Kaizen).

However, the regulatory system around franchising is extensive and complex, which poses a challenge for business actors who want to grow through this route.

The following are some of the regulations regarding franchising in Indonesia:

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Outsourcing Business Licensing

Companies providing outsourcing services (the “Outsourcing Company”) shall comply with the provisions of the Ministry of Manpower Regulation No. 11 of 2019 on Requirements of Partial Work Division to Other Company (the “Regulation”), the newest regulation on outsourcing arrangements. The Regulation requires that the following are produced or amended:

The Outsourcing Agreement (the “Agreement”) needs to clearly state the following additional clauses:

1. Description of the type(s) of works to be performed by the workers/employees of the Outsourcing Company;

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