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Revocation and Replacement of Minister of Trade Regulation on Import of Finished Goods and the...
Issuance of Licensed Importer Numbers
Minister of Trade Regulation No. 39/M-DAG/PER/10/2010 on Import of Finished Goods by Manufacturers (“MoTR No. 39/2010”) has been revoked by the issuance of Minister of Trade Regulation No. 24/M-DAG/PER/4/2012 on 30 April 2012.
Newsletter March 2012 Edition
1. Local Uniqueness in the protection of IPR in Indonesia
The Government of Indonesia (GoI) consistently took action in the implementation of IPR protection. The GoI has stated that Gorontalo (the 32nd Province of Indonesia that located in North Sulawesi) becomes the Free Zone of IPR violations, as well as operations against counterfeit products in the said region.
Indonesia Under Review April 2012
A Strong Start to a Year of Business Growth
A significant macroeconomic development in recent months has been that Indonesia has regained an investment grade rating, from Fitch and Moody’s, for the first time since the Asian financial crisis over a decade ago. Combined with a record low rate of 5.75% that has been set by Bank Indonesia in February this should serve to encourage further investor confidence.
Implementation of the Corporate Social and Environmental Responsibility Requirements
Government Regulation No. 47 of 2012 on Corporate Social and Environmental Responsibility ("Regulation) has been issued on 4 April 2012 to implement Article 70 (4) of Law No. 40 of 2007 on Limited Liability Companies. This is a long-awaited piece of implementing legislation that clarifies the nature of the required corporate social responsibility (CSR) activities, which have been a vague requirement (which has survived a Constitutional Court challenge) for nearly 5 years.
An Eye for an Eye….the Tragic Execution Of Ruyati And A Way Forward For Indonesia
Indonesia is in a state of shock following the beheading of Ruyati binti Satubi in Saudi Arabia, on Saturday 18 June. Ordinary Indonesian citizens are appalled at the barbarous treatment of one of Indonesia’s overseas workers and fellow citizens.
Revision of Bapepam-LK Rule IX.E.2 on Material Transactions and Changes in Core Business
Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) Rule IX.E.2 on Material Transactions and Changes in Core Business has been amended by the Chairman of Bapepam-LK Decree No. KEP-614/BL/2011 ("Decree"). The amendment has been in force since 28 November 2011, and has repealed Chairman of Bapepam-LK Decree No. KEP-413/BL/2009 on the same subject matter. The amendment adds exemptions to the disclosure rules for debt, creates a disclosure obligation for changes in the business of certain subsidiaries, and sets a deadline for reporting the completion of the transaction.
Indonesia’s Masterplan for Economic Development
There has been almost as much press coverage as questions about the Indonesian Government’s announcement in May of MP3EI.
Presidential Regulation No. 56 of 2011
Presidential Regulation No. 56 of 2011 as the Second Amendment of the Regulation on Public-Private Partnerships (PPP)
Latest Consent or Addendum, Which One Shall Apply?
In the contract law theory, under Indonesian law, an agreement is deemed to have occurred if there is consent of the parties. This is according to the Civil Code as the applicable contract law, i.e. Article 1320 of the Civil Code:
Indonesia Under Review
June 2011 A busy time for business, a few notable corruption developments, and some long anticipated environmental progress
Indonesia Under Review
February 2011 A new year of challenges and opportunities
As we enter 2011 it is necessary to take a moment to note a number of significant developments that have recently taken place in Indonesia.
Decentralization of BKPM's Authority Over Investment
Head of Capital Investment Coordinating Board (BKPM) Circular Letter No. 2 of 2011 on the Regional Implementation of Investment Services (“Circular Letter”) has been issued to decentralize the authority over investment by shifting it from the central government to the regional governments. The Circular Letter was issued on 7 March 2011.
Bank Indonesia Tightens the Fit and Proper Test for Commercial Bank Officials...
Bank Indonesia Tightens the Fit and Proper Test for Commercial Bank Officials and Controlling Shareholderes
Bank Indonesia Circular Letter No. 13/8/DPNP, dated 28 March 2011, on Fit and Proper Tests (“Circular Letter”) has been issued to implement Bank Indonesia Regulation No. 12/23/PBI/2010 on Fit and Proper Tests (“Regulation”). The Circular Letter has been in force since 28 March 2011 and repeals and replaces Bank Indonesia Circular Letter No. No.6/15/DPNP, dated 31 March 2004; and the Regulation, since 29 December 2010, repeals and replaces Bank Indonesia Regulation No. 5/25/PBI/2003, on the same subject matter, so as to improve good governance in the banking industry.
Presidential Regulation No. 54 of 2010 Revises Government Procurement Policy
Government procurement policy, as previously defined by Presidential Decree No. 80 of 2003 has been revised under Presidential Regulation No. 54 of 2010 (‘Regulation').
Government Regulation on Supervision of Mining Operations
Government Regulation No. 55 of 2010 on the Guidance and Supervision of the Management of Mineral and Coal Mining Operations (‘Regulation') was issued on 5 July 2010. The purpose of the Regulation is to govern the supervision of the extractive industries, by implementing Article 144 of Law No. 4 of 2009 on Mineral and Coal Mining ("Mining Law").
New Bapepam-LK Regulation on the Relationship Between Bond Issuers and Trustees
Capital Market and Financial Institutions Supervisory Agency (Bapepam-LK) Regulation No. VI.C.4 (KEP-412/BL/2010) (‘Regulation') will come into force on 5 November 2010. The purpose of the Regulation is to implement Article 52 of Law No. 8 of 1995 on Capital Markets by regulating the relationship between the Issuer of debt securities (bonds) and the Trustee.
No substantial similarity or in its entirety between trademarks “COBB” and “GOLDEN COB”
The Indonesian Trademark Appeal Commission in their decision number 79/KBM/HKI/2009 dated 08 May 2009, states that trademark “COBB” is having substantial similarity in its essential part with trademark “GOLDEN COB” under registration number 517524 to cover similar kind of goods which is class 31. Therefore, trademark “COBB” is rejected due to prior registration of trademark “GOLDEN COB”.
Franchising Law - Indonesia
Indonesia’s franchise industry has been significantly developing in recent years. Dominated by small and medium companies, in 2009, Indonesian franchise’s yearly turnover reached US$ 9.5 billion and the number is still increasing to date. Recent research has expected yearly turnover to exceed US$ 10 billion by the end of 2010. The research also records domination of domestic franchise over foreign franchise distribution.
Regulation on Pre-Notification of Mergers, Consolidations and Acquisitions in Indonesia
Mergers, consolidations and acquisitions are three means commonly used by businesses, among other things, to expand and increase their efficiency. They can also attract the attention of competition regulators, as these types of transactions can result in an increase of concentration in the relevant market, which may eventually result in the occurrence of monopolistic practices and/or unfair business competition, as defined by the relevant laws.
DIRECTOR’S RESPONSIBILITIES IN A LIMITED LIABILITY COMPANY
In a Limited Liability Company (”Company”), the Director is one of the Company’s organs who oversees the activities of the Company. In overseeing the activities of the company, the Director has the right and authority to act for and on behalf of the Company.
W Java to build its own int'l seaport
Jakarta (ANTARA News) - West Java province is planning to build its own international seaport in Muara Gembong, Bekasi district, a provincial businessman said.
National Development Planning Strategic Plan
The State Minister of National Development Planning / Head of the National Development Planning Board has released a Guidelines for Compiling Departmental and Institutional Strategic Plans through Minister Regulation No. 5 of 2009. The Guideline covers the scope and procedure of Government Ministry/Institution Strategic Plan for the period of 2010-2014. All of the initial strategic plans are to be submitted by 15 October 2009.
Minister of Finance Draft Regulation on Insurance
In order to enhance protections for insurance customers, Minister of Finance will soon replace Ministerial Decisions on Investigations of Insurance Companies No. 423/KMK.06/2003 with a new Regulation. The draft regulation will provide additional definitions for loss insurance, life insurance, and insurance brokers. Direct investigations of an insurance company under this Draft should be done with a prior notification to the Insurance Company and Capital Market and Financial Institutions Supervisory Agency. An indirect investigation is to be carried out by the insurance bureau. In addition, both direct and indirect investigation should be conducted periodically.
INDONESIA - INTEGRATED ONE-STOP SERVICES IN THE CAPITAL INVESTMENT SECTOR
On 23 June 2009, Presidential Regulation No. 27 of 2009 on Integrated One-Stop Services in the Capital Investment Sector (“PR 27”) was issued. PR 27 was enacted to implement Article 26(3) of Law No. 25 of 2007 Regarding Capital Investment (“Law 25”), which requires the issuance of a Presidential Regulation for further implementation of the “one gate policy in investment services”.
QUORUM DETERMINATION TO BREAK THROUGH GMOS DEADLOCK
In a General Shareholder Meeting ("GMOS"), we often discover that a quorum is unattainable due to the absence of shareholders even though the shareholders have been officially summoned to attend the GMOS. The absence of shareholders may result from a disagreement over the agenda of the GMOS. In such event, the Board of Directors or the Board of Commissioners may issue the summons for the second GMOS. Furthermore, if the second GMOS quorum is still unattainable, according to Law No. 40 Year 2007 regarding Limited Liability Company ("UUPT"), the company may request that the Head of the District Court, who has jurisdiction over the company's domicile, determine the quorum for the third GMOS. The UUPT regulates this matter in order to avoid a deadlock in making decisions, which may hamper the company's business activities.
COLLECTIVE RESPONSIBILITY OF A COMPANY’S BOARD OF DIRECTORS
In a company, the Director or the Board of Directors plays a very important role in managing the company's daily activities, which could result in two possibilities, the growth or the loss of the company. In order to achieve such goals, the Director or the Board of Directors needs to have sufficient knowledge in order to manage and develop the Company because as a professional, the Director is granted valuable powers, by the law or by the Articles of Association of the Company.