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Preparing for a Commercial Dispute

Key things you should know before a commercial dispute

Commencing or facing litigation or arbitration (“legal recourse”) can be a very stressful, time-consuming and expensive process for all involved. This article discusses some key ways to prepare before taking legal recourse.

Do your due diligence
A key consideration when deciding to initiate legal recourse is whether your counterparty has assets against which to enforce a successful judgment. If there are no accessible assets,

Foreigner Visa Ban Lifted in Indonesia

On 15th September 2021, the Minister of Law and Human Rights, Yasonna H. Laoly, officially enacted Regulation of the Minister of Law and Human Rights No. 34 of 2021 regarding the Granting of Immigration Visas and Residence Permits in the Period of Handling the Spread of Corona Virus Disease 2019 and National Economic Recovery (“MR 34/2021”) which revokes the Regulation of the Minister of Law and Human Rights No. 27 of 2021 concerning Restrictions on Foreigners Entering Indonesian Territory during the Enforcement Period of Restrictions on Emergency Community Activities (“MR 27/2021”).

The Urgency of Personal Data Protection

The suspected data leaks from Social Health Insurance Administration Body (BPJS) and the Indonesia Health Alert Card (eHAC) demonstrates the urgent need to provide increased protection for citizens’ personal data. But, in reality, the discussion of the Bill on Personal Data Protection has reached a dead end. The reason is that parliament and the government both hold different opinions about the concept of an institution that will protect people’s personal data. The government wants this institution to be under the Ministry of Communication and Information as the executive power branch. Meanwhile, parliament wants the institution to be independent and report directly to the President.

Coal Export Suspension

On August 7, 2021, the Director General of Mineral and Coal (Dirjen Minerba) of the Ministry of Energy and Mineral Resources (ESDM) sent a letter T-370/MB.05/DJB.B/2021 regarding “Prohibition of Coal Sales Overseas ” to the Director General of Foreign Trade, the Director General of Customs and Excise, and the Director General of Sea Transportation, stating that there are 34 coal supply companies that have not fulfilled their coal supply obligations in accordance with the sales contract with PT PLN (Persero) and/or PT PLN Batubara from the …

New OSS Platform: Online Single Submission Risk-Based Approach (OSS-RBA)

The Government has officially launched a new version of OSS under the name Online Single Submission Risk-Based Approach (OSS-RBA) with Government Regulation Number 5 of 2021. Pursuant to Government Regulation No 5 of 2021 regarding the Operation of Risk-Based Business Licenses or Peraturan Pemerintah Nomor 5 Tahun 2021 Tentang Penyelenggaraan Perizinan Berusaha Berbasis Risiko (“GR No. 5/2021”)

Gas in the City, Gas Network

The supply of gas in Indonesia is quite abundant, but unfortunately, has not been used optimally domestically. To meet domestic gas needs, especially for household needs, more is supplied from imports of liquefied petroleum gas (LPG). In fact, gas is delivered to household customers through pipes known as the city gas network or a natural gas network for households (“Jargas”), which is much cheaper than the price of LPG. The main objective of the Jargas is to make people’s lives easier, along with lowering LPG imports and saving on foreign exchange at a macro level.

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.

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.

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…

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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