The Legal 500

Indonesia

Editorial

Overview

The Indonesian archipelago continues to be an attractive hub for foreign investment, thanks to its established energy and natural resources sector and growing interest in Islamic finance. Although the country’s elections caused a ‘wait-and-see’ attitude among investors, there has still been a considerable amount of market activity. The consumer products sector continues to thrive with big brands establishing themselves in the region. As always with a rapidly emerging market, the regulatory framework is struggling to keep up with its expansion, and foreign companies face increasing restrictions. The mining sector has particularly suffered as a result of the recent ban on the export of unprocessed mineral ore and export taxes. However, this trend does not seem to have deterred foreign workers, investors and companies who seek advice from local and international firms on how best to conduct their business.

Key foreign and local firm alliances include Hadiputranto, Hadinoto & Partners, a member firm of Baker & McKenzie and Ginting & Reksodiputro in association with Allen & Overy, with many others attempting to follow in their footsteps. Ali Budiardjo, Nugroho, Reksodiputro, Assegaf Hamzah & Partners and SSEK Legal Consultants are the key independent local firms.

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Legal Developments in Indonesia

Legal Developments and updates from the leading lawyers in each jurisdiction. To contribute, send an email request to
  • Indonesia's New 2014 Insurance Law

    he House of Representatives ("DPR") recently passed the bill on Insurance. The provisions of the bill will come into force after the president assents to it or at any rate within 30 days of its passage at the DPR. The 2014 Insurance Law will replace Law No. 2 of 1992 on Insurance. Within Indonesia's legislative structure the Insurance Law regulates insurance businesses, core insurance concepts however are largely left to the Civil and Commercial Codes.
  • New Indonesian Copyright Law

    On 16 September 2014 the House of Representative revoked Law No. 19 of 2002 (" Old   Copyright Law ") with the Bill on Copyright, which will become law and receive a number upon the earliest of being signed by the President or 30 days (" New Copyright Law "). The New Copyright Law is an effort from the lawmakers to protect the economic and moral rights of creators and owners as the essential element in the development of national creativity.
  • Indonesia Under Review - July 2014

    Negative Investment List   
  • The 2014 Negative Investment List

    The Government has issued Presidential Regulation No. 39 of 2014 (PR 39/2014), which sets out the new negative investment list containing the business sectors that are closed or are partially open to foreign and domestic investment. The new negative investment list will replace the previous list under PR 36/2010, with a view of integrating Indonesia's economy to ASEAN, as well as accelerating development in the regions.
  • The Indonesian Election Process and Contributions to Political Parties and Campaigns

    Article 35 of Law No. 2 of 2008, as amended by No. 2 of 2011, on Political Parties ("Political Party Law") provides for contributions to political parties, Articles 94 to 96 of Law No. 42 of 2008 on Presidential and Vice Presidential Elections ("Presidential Elections Law") provides for contributions to political campaigns, and Law No. 8 of 2012 on the Election of the House of Representatives, the Regional Representative Council and Regional House of Representatives (the "Legislative Elections Law") provides for contributions to House of Representatives campaigns.
  • Indonesia Stock Exchange Revises Rule I-A on Share Listing Requirements

    PT Bursa Efek Indonesia has issued Decision of the Board of Directors of the Indonesia Stock Exchange No. Kep-00001/BEI/01-2014 on an amendment of Rule I-A (" Rule "), on 20 January 2014, coming into force on 30 January 2014, except as discussed below. The Rule sets out the IPO and subsequent share offerings requirements and procedures and listing fees. Notably the revised Rule sets out a free float policy and limits independent directors and commissioners to 2 successive terms.
  • Indonesia Implements Raw Mineral Export Restriction

    Indonesia's Government Regulation No. 1 of 2014 (" GR 1/2014 ") and Minister of Energy and Mineral Resources Regulation No. 1 of 2014  (" ESDM 1/2014 "), enacted on 11 January 2014, implement the ban on raw mineral exports legislated under Law No. 4 of 2009 on Mineral and Coal Mining (" Mining Law "). The two regulations are currently in force. However, the restriction is not in full effect as ESDM exempts 5 minerals from a higher standard of refinement for a period of three years, on the condition that the exporter owns sufficient reserves for eventual smelting and has a credible plan to construct a smelter or jointly process the ores.
  • Export Duty on Processed Metal Minerals

    The Minister of Finance has issued Regulation No. 6/PMK.011/2014, which imposes tax on the export of five mineral concentrates: copper, zinc, manganese, iron and lead. This tax reflects the Government's policy to discourage sales of impure minerals, as an implementation of Law No. 4 of 2009 on Mineral and Coal Mining, which requires processing and purification of minerals.
  • Indonesia Under Review - October 2013

    Legislative Developments
  • 2013 PPP Book Launched by Bappenas with 27 Focused Projects

    The National Development Planning Agency (Bappenas) has published the 2013 Public Private Partnership (PPP) book on 15 November 2013 (" PPP Book "). The PPP Book contains a list of 27 PPP projects currently being offered by the Indonesian government. The projects constitute a shorter, more focused, list compared with prior years, placing emphasis on high priority projects and focusing on ensuring successful implementation. However, the 27 projects do span a wide range in terms of size, location, and stage of completeness.

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