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Articles contributed by Makarim & Taira S.
In Indonesia, despite it being generally accepted that a foreign employee is by nature a fixed term employee, recent rulings of the Industrial Relations Court or the Supreme Court have given rise to some arguments among scholars, legal practitioners and jurists since the rulings have recognized foreign employees as ‘permanent’ employees and therefore entitled to severance pay upon termination of their employment 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.
Requirements and Procedures under the Arbitration Law
The requirements and procedures for enforcement of an international/foreign arbitration award in Indonesia are regulated in the Indonesian Arbitration Law (Law No. 30 of 1999 regarding Arbitration and Alternative Dispute Resolution, particularly Articles 65 to 69). Previously, enforcement of an arbitration award is governed by Supreme Court Regulation Number 1 of 1990. The Arbitration Law does not specifically revoke this Supreme Court regulation. However, as the Arbitration Law now provides greater legal certainty, it is usually assumed that the parties will now enforce arbitration awards under the Arbitration Law.
I. Introduction: It has been over 4 years since the Constitutional Court’s ruling on 26 October 2004 which declared that Article 158 and other relevant articles of the Manpower Law in relation to serious misconduct were against the Indonesia Constitution and therefore were not legally binding. The legal effect of the ruling was that an employer cannot immediately terminate an employee for serious misconduct. Instead an employer must report the act to the police and then follow the criminal proceedings under the Indonesian Criminal Procedure Law. Only upon receiving a criminal judgment of the district court that the employee is guilty (and if the decision is not appealed by the employee) can the employer terminate the employee.
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”.