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USD 800 MIO SOFT LOAN
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Presidential Decree No. 3 of 2012 on the
Contract of Work and Coal Contract of Work Adjustment Evaluation Team (" Decree ") has been issued on 10 January
2012 in order to establish a team that will evaluate the adjustment of
Contracts of Work (CoW / Kontrak Karya )
and Coal Contacts of Work (CCoW / Perjanjian
Karya Pengusahaan Pertambangan Batubara ) as required by Article 169(b) of
Law No. 4 of 2009 on Mineral and Coal Mining (" Law "). The Evaluation Team will operate from 10 January 2012 until
December 2013 (Part 7).
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On 30 September 2011, Bank Indonesia (“BI”) issued BI Regulations concerning foreign exchange, i.e. BI Regulation No.13/20/PBI/2011 concerning Receipt of Export Proceeds in Foreign Currency and Drawdowns of Foreign Loans in Foreign Loans (“PBI 20/2011”) and BI Regulation No.13/22/PBI/2011 concerning Obligation to Report a Drawdowns of Foreign Loans in Foreign Currency (“PBI 22/2011”) both of which came into effect on 2 January 2012.
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The Bill on Land Acquisition for Public Interest Development (" Bill ") has finally been passed by House
of Representatives (DPR) on 16 December 2011, and will receive the number of a
law upon Presidential signing, or at the latest within 30 days. The Bill is
intended to assure that land can be acquired for the development of public
interest projects while prioritizing fair, democratic and humane principles and
improving on the previous regulations on land acquisition, which are widely
seen as being insufficient. The Bill is a significant revision of the prior
regime under Presidential Regulation No. 65 of 2006 on the Amendment of
Presidential Regulation No. 35 of 2005 on Land Acquisition for Public Interest
(" PR 65/2006 ").
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6 months
after the issuance of Ministry of Forestry Decree No. 323/Menhut-II/2011 on the
Determination of Indicative Maps Concerning the Suspension of New Permits for
Utilization of Forests, Use of Forest Areas and Change of Forest Area Usage and
Other Usage Areas (" Decree "), Ministry
of Forestry Decree No. SK.7416/Menhut-VII/IPSDH/2011 on the Determination of
Indicative Maps Concerning the Suspension of New Permits for Utilization of Forests,
Use of Forest Areas and Change of Forest Area Usage and Other Usage Areas
(Revision I) was issued on 22 November 2011 (" Revised Decree "). The issuance of Revised Decree is mandated by
Presidential Instruction No. 10 of 2011, which obliged the Minister of Forestry
("Minister") to revise the maps covering the entire territory of Indonesia
setting out areas of suspension of new permit issuance ("Indicative Maps") in
every 6 months.
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Law
No. 20 of 2011 on Apartments was issued on 10 November 2011 ("Law 20/2011") and
revoked the previous law on the same subject matter ("Law 16/1985"), which was
considered to no longer be in line with the current conditions.
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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.
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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.
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On 11
November 2011 Indonesia notified its prior ratification, by means of
Presidential Regulation No. 26 of 2011 ("Regulation"), of the ASEAN - Australia
- New Zealand Free Trade Agreement ("AANZFTA" / "Agreement"). This means that
the Agreement will enter into force for Indonesia on 10 January 2012. The original
English version of the Agreement is included as part of the Regulation's
appendix along with an Indonesian translation, whereby the original English
language version of the Agreement will prevail should there be a difference in
interpretation.
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Commission for the
Supervision of Business Competition ("KPPU")
Regulation No. 10 of 2011 on Guidelines for Completing Mergers, Consolidations
or Acquisitions that Might Result in Monopolistic Practices and Unfair
Competition ("Regulation") has been issued as an implementation of Article 29
(1) of Law No. 5 of 1999 on the Prohibition on Monopolistic Practices and
Unfair Business Competition. The Regulation effectively replaces Regulation No.
13 of 2010 with the intention of improving the efficiency of corporate
restructuring notification procedures. The Regulation has been in force since
21 September 2011.
SUITE 601, WISMA PONDOK INDAH, JL. SULTAN ISKANDAR MUDA BLOK V-TA, PONDOK INDAH, JAKARTA 12310, INDONESIA