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 Regulation No. 35 of 2021 on Fixed Term Employment, Outsourcing, Working Hours and Rest Times and Termination (“GR 35/2021”).

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 Document/Apostille Convention (“PR 2/2021”), which states that Indonesia has acceded to this International Convention on Apostille.

Komisi Pengawas Persaingan Usaha (KPPU) Issues Business Competition Compliance Program Regulations in Indonesia

The Business Competition Supervisory Commission or Komisi Pengawas Persaingan Usaha (KPPU) issued KPPU Regulation No. 1 of 2022 concerning the Business Competition Compliance Program, which has been in effect since the promulgation date on March 24, 2022, intending to increase the compliance of business actors with business competition law in Indonesia to support the company’s credibility in the international community.

The Investment Coordinating Board is Flooded with Complaints from Business Actors Over Revocation of Mineral Mining Business Permits in Indonesia

The government has officially revoked 1,118 Mining Business Permits (“IUP”) out of 2,078 recommendations for IUP revocation. The 1,118 IUP revocations include 102 IUP in nickel mining (161,254 Ha), 271 IUP in coal mining (914,136 Ha), 14 IUP in copper mining (51,563 Ha), 50 IUP in bauxite mining (311,294 Ha), 237 IUP in tin mining (374,031 Ha), 59 IUP in gold mining and 385 IUP for other minerals (365,296 Ha).

Establishing a Power Station Operation and Maintenance (“O&M”) Service Business in Indonesia

To conduct O&M Service for Power Station business, the company should obtain an Electric Power Supporting Services Business License (Izin Usaha Jasa Penunjang Tenaga Listrik – IUJPTL). The requirement by law in Indonesia to get the IUJPTL is regulated under Article 31 paragraph 1 letter (d) and (e) of Government Regulation in Indonesia Number 25 of 2021 regarding the Implementation of Energy and Mineral Resources (“PP 25/2021”).

Mining Licenses Revocation in the First Semester of 2022 in Indonesia

President Joko Widodo announced the revocation of 2.078 mineral and coal Mining Business Permits (Izin Usaha Pertambangan/IUP) because the IUP holders never submitted their work plans (Rencana Kerja dan Anggaran Biaya/RKAB) even though the permits had been granted for years. Minister of Investment/Head of the Investment Coordinating Board Bahlil Lahadalia stated that the revocation of IUPs for 2.078 mining companies in Indonesia was carried out starting January 2022, following Presidential Decree No. 1 of 2022

E-Cigarette Manufacture Establishment:5 Key Issues on the establishment of e-cigarette manufacturing in Indonesia you should know

After a small decline in Indonesia’s vaping population in 2020 due to the COVID-19 pandemic, the numbers began to increase again in 2021 with 1.7m vapers reported and a market worth $239m, representing an 8 percent growth from last year. Smoking rates are declining with smokers slowly shifting to vaping, while other alternatives (e.g. heated tobacco) are slowly picking up.

How Many Types of Mining Permits that Mining Owners Should Have in Indonesia?

To carry out mining activities in Indonesia, it is necessary to own permits in accordance with the latest government regulations and other applicable Laws in Indonesia. The stages of mining start from general investigation, exploration, feasibility study, construction, mining, processing, and refining, transportation and sales, and post-mining. These stages can be fully or partially carried out by one mining company, it depends on the type of mining permit the company owns.

New Rules for Final Income Tax for Construction Services in Indonesia

The Indonesian Government has issued a new rule for Income Tax or Pajak Penghasilan (“PPh”) for construction services, namely Government Regulation No. 9 of 2022 concerning the Second Amendment to Government Regulation No. 51 of 2008 concerning Income Tax on Income from Construction Services Business (“GR 9/2022”).

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