Indonesian Omnibus Law: Simplification on Construction Services Licensing Procedures

Law number: 11 of the Year 2020, concerning Job Creation or commonly known as Omnibus Law, is one of the breakthrough bills aimed to boost economic and business activities and growth in Indonesia. One of the sectors majorly affected currently is the Construction industry. Though in 2018, the government had simplified licensing procedures and regulations for the said business activity with Government Regulation Number: 24 of the Year 2018 concerning Electronic Integrated Business Licensing Services, the Indonesian government

Omnibus Law: New Regulation on Employment of Foreign Workers

Following Law No. 11 of 2020 on Job Creation (“Omnibus Law”), the Indonesian government has enacted several implementing regulations of Omnibus Law. One of the enacted implementing regulations is Government Regulation No. 34 of 2021 on the Employment of Foreign Workers (“GR/34”). The issuance of GR/34 is a replacement of Presidential Regulation No. 20 of 2018 on Employment of Foreign Workers (“PR 20/2018”).
The GR/34 stipulates that every employer of foreign workers is obliged to

Religious Holiday Allowance 2021

On 12 April 2021, Minister of Employment, Ms.Ida Fauziyah, issued a Circular Letter Number M/6/HK.04/IV/2021 concerning the Implementation of Religious Holiday Allowance 2021 for Workers in the Company (“Circular Letter 6/2021”), addressed to governors throughout Indonesia. The provision of Religious Holiday Allowance (i.e., Tunjangan Hari Raya or as it is commonly known “THR”) for workers is an effort to meet the needs of workers and their families for celebrating religious holidays. The Indonesian Government is officially requiring state-owned and private corporations to fully

Goverment Reopens Raw Mineral Export

Indonesia is rich in natural resources, and one of them is nickel which is the raw material for the manufacture of lithium batteries in electric cars. Nickel is one of the prime mining commodities forecasted to experience a supercycle phase, due to the massive growth of electric vehicles in the future. The high demand for nickel-based commodities might impact the price increase of this mining commodity. This scenario is highly profitable for Indonesia as a country, and the opportunity should be well utilized.

Before the outbreak of Covid-19, the government allowed exports of…

Indonesian Omnibus Bill: Implementation Regulation related to spatial Planning and Settlement of Differences

In 2020 the Indonesian government formulated a law that was considered a breakthrough in advancing the domestic economy, namely the Omnibus Bill. The Omnibus Bill amended many regulations, which was previously a non-conducive environment for doing business in Indonesia. One of the regulations amended in the omnibus bill is the regulation on spatial planning and zoning…

Omnibus Law: New Regulation on Definite Period Employment Agreements

Amid the COVID-19 Pandemic, we have been receiving queries from our clients with regard toemployment contract issues. One of the most frequently asked questions is about the definite period employment agreements. In businesses, such as drilling services, construction , or any other companies having businesses based on projects , the definite period employment contracts are the most preferable. Following Article 59 par. 3 of Law No. 13 of 2003 concerning Manpower…

Positive Investment List vs Negative Investment List

The Job Creation Law (Indonesian: Undang-Undang Cipta Kerja), officially Law No. 11 of 2020 (hereinafter referred to as Omnibus Law), is a bill that was passed on 5 October 2020 by Indonesia’s People’s Representative Council (DPR), and enacted on 2 November 2020 to create jobs and raise foreign and domestic investment by reducing regulatory requirements for business permits and land acquisition processes.

Several regulations for the implementation of the Omnibus Law have been issued. Generally, it is to improve the…

Indonesia Investment Authority wins trusts from both domestic and foreign investors

The Indonesia Investment Authority (INA) which was set up in January 2021 is an institution for investment endowment fund management established by Law to increase and optimize the value of state assets in the long term to support sustainable development. It has won enormous interests and trusts from both domestic and foreign investors, especially in the field of infrastructure.

“With a strong legal foundation and political support as well as a great supervisory board …

Foreign Document Legalization: Implementation of Presidential Regulation No. 2 of 2021 concerning Ratification of the Convention abolishing the requirement of legalization for Foreign Public Document

In January 2021, Presidential Regulation No. 2 of 2021 concerning Ratification of the Convention abolishing the requirement of legalization for Foreign Public Document (“PR 2/2021”) was enacted by the Government. According to the Convention abolishing the requirement of legalization for Foreign Public Document (“Apostille Treaty”), there are four types of …

Digitization of Land Data in Indonesia

The Ministry of Agrarian Affairs and Spatial Planning (ATR)/ National Land Agency (BPN) or Kementerian Agraria dan Tata Ruang /Badan Pertanahan Nasional (“ATR/BPN”) has issued new regulations regarding electronic land certificates.
Starting in 2021, ATR/BPN will begin to use electronic land certificates as stipulated in the Regulation of the Minister of ATR/Head of BPN Number 1 of 2021 concerning Electronic Certificates which was signed on January 12, 2021. This means that proof of ownership of a land certificate or land book will…

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