Newsletter

New Rules for Final Income Tax for Construction Services in Indonesia

New Rules for Final Income Tax for Construction Services in Indonesia

The Indonesian Government has issued a new rule for Income Tax or Pajak Penghasilan ("PPh") for construction services, namely Government Regulation No. 9 of 2022 concerning the Second Amendment to Government Regulation No. 51 of 2008 concerning Income Tax on Income from Construction Services Business ("GR 9/2022").
ASEAN Space Programs - History and Way Forward

ASEAN Space Programs - History and Way Forward

The role of space science and technology in fostering sustainable development has always been cited as the raison d'etre for a country to embark on a space programme. For ASEAN countries, the situation is no different. This book clearly shows that they are embracing this important concept: all ASEAN countries are using space science and technology, at the very minimum for monitoring resources, and,...
Mergers and acquisitions in Indonesia have increased significantly in 2020 and 2021. Does this lead to monopolistic practices and unfair business competition?

Mergers and acquisitions in Indonesia have increased significantly in 2020 and 2021. Does this lead to monopolistic practices and unfair business competition?

<p> <i>The Commissioner of the Business Competition Supervisory Commission or Komisi Pengawas Persaingan Usaha</i> (<b>"KPPU" </b>), Ukay Karyadi, stated that mergers and acquisitions in Indonesia have increased significantly in 2020 and 2021. It was noted that in 2019, the number of notifications of mergers and acquisitions was 123, rising to 196 notifications in 2020 and 233 notifications in 2021. </p>
Why You Should (WNI and WNA) Have Social Health Insurance (BPJS) When You Buy a Property in Indonesia

Why You Should (WNI and WNA) Have Social Health Insurance (BPJS) When You Buy a Property in Indonesia

The government, through legal instruments, has designed a National Health Insurance Program ("JKN") which is mandated to the Social Health Insurance Administration Body ("BPJS Kesehatan") as stated in Article 19 paragraph (2) of Law Number 40 of 2004 which explains that JKN is held to ensure that participants receive the benefits of health care and protection to meet basic health needs. Recently, the President of the Republic of Indonesia issued Presidential Instruction Number 1 of 2022 ("Inpres No.1/2022") which contains the
Corporate Governance in Indonesia:  Change of Directors and Commissioners

Corporate Governance in Indonesia: Change of Directors and Commissioners

In addition to the General Meeting of Shareholders, there are a Board of Directors and Board of Commissioners that are also bodies of limited liability companies in Indonesia. The Board of Directors (BOD) is the company's body that manages the day-to-day business, and the Board of Commissioners (BOC) supervises the director(s) and can step in and report to the shareholders if necessary. From time to time, companies will change their director or commissioner. Since the director and commissioner are not a regular employee, a specific procedure applies for such an amendment.
Contract Law Guide: How to amend the EPC Contract in a disagreement between consortium members

Contract Law Guide: How to amend the EPC Contract in a disagreement between consortium members

A construction project, specifically for an EPC project, is typically conducted by contractors in a consortium. The implementation of the EPC Contract was often changed or adjusted according to the project circumstances. In some situations, a disagreement between the consortium members related to the contract amendment was unavoidable. For example, we had a client (contractors, consortium members) who needed to change a provision regarding the retention money and was willing to replace the retention money with a warranty bond, which is our client's obligation according to the EPC Contract
New Value Added Tax (VAT)

New Value Added Tax (VAT)

The COVID-19 pandemic has left lasting damage, not only to public health, but to the economy as well. A lot of effort will be required to recover both aspects, both by the government and by individuals. One of the steps that the government has taken to accelerate economic growth during this pandemic is issuing a new tax regulation in the form of Law No. 7 of 2021 regarding Tax Regulation Harmonization (Law No. 7 of 2021) on 29th October 2021 which revised many tax provisions, including the Value Added Tax (VAT) which was previously regulated in No. 42 of 2008 regarding Third Amendment to Law No. 8 of 1983 concerning Value Added Tax on Goods and Services and Sales Tax on Luxury Goods (Law No. 42 of 2008).
Singapore: Combating Dilatory Conduct and Non-Participation in Arbitration Proceedings - The Delicate Balance

Singapore: Combating Dilatory Conduct and Non-Participation in Arbitration Proceedings - The Delicate Balance

While most will agree that justice should not be hurried, what happens when parties refuse to comply to arbitration procedural timelines? In this article, we discuss the challenges in balancing efficiency and procedural fairness in arbitration proceedings by examining the recent Singapore court decision of Sai Wan Shipping Ltd v Landmark Line Co, Ltd [2021] SGHC 8 (“Sai Wan”).
Ministry of Energy and Mineral Resources Invites Other Ministries/Agencies to Accelerate Electric Vehicle Conversion

Ministry of Energy and Mineral Resources Invites Other Ministries/Agencies to Accelerate Electric Vehicle Conversion

The Ministry of Energy and Mineral Resources (MEMR) invites Government Ministries and Institutions in Indonesia to participate in supporting the acceleration of the national program to implement Battery-Based Electric Motorized Vehicles (<i>Kendaraan Bermotor Listrik Berbasis Baterai </i>/ KBLBB) for road transportation, especially two-wheeled roadworthy operational vehicles with a book value of Rp. 0.
Regime Interaction in Investment Arbitration: Crowded Streets; Are Human Rights Law and International Investment Law Good Neighbors?

Regime Interaction in Investment Arbitration: Crowded Streets; Are Human Rights Law and International Investment Law Good Neighbors?

Globalization has diversified the actors, institutions, norms, and instruments on the international legal stage. With diversification comes increased specialization and, in turn, organization around so-called regimes. The notion that international legal regimes can exist autonomously has long been refuted; indeed, each regime draws from general international
Renewal of LSBU Application Process

Renewal of LSBU Application Process

On 25th November 2021, the Minister of Public Work and Housing issued Circular Letter No. 21/CL/M/2021 Regarding Procedures for Fulfilment of Business Licensing Requirements, Implementation of Construction Work Competence Certification, and Implementation of Business Entity Certificates and Construction Work Competency Certificates (CL 21/2021). The Circular Letter stipulates many things, such as Fulfilment of LSBU/ Lembaga Sertifikasi Badan Usaha (Business Certification Institute) Business Licensing Requirements, Fulfilment of LSP/ Lembaga Sertifikasi Profesi (Profession Certification Institute) Business Licensing Requirements and the Fulfilment of Business Licensing Requirements for Construction Services Business Entities.
Progress of Solar Photovoltaic in Asean Countries: A Review

Progress of Solar Photovoltaic in Asean Countries: A Review

The present global energy scenario, in which fossil fuels play a preponderant role, faces significant energy and environmental challenges. To help address these challenges, countries across the world are increasing the contribution made by renewable energy (RE) resources to their energy supplies. Feed-in Tariff (FiT) is one of the most effective incentive policies used to promote the RE sector especially at the micro-generation level.
Public Activities Restriction in the Island of Java and Bali

Public Activities Restriction in the Island of Java and Bali

The Minister of Home Affairs issued The Minister of Domestic Affairs Instruction No. 03 the Year 2022 regarding the Implementation of Public Activities Restrictions Corona Virus Disease 2019 Level 3, Level 2, And Level 1 In Java and Bali islands. This Instruction clarifies the level of Community Activities Restriction (PPKM) in these areas, along with the list of activities that are allowed and prohibited.
2021 in Review: Continued Movement at the Intersection of International Arbitration and Human Rights

2021 in Review: Continued Movement at the Intersection of International Arbitration and Human Rights

This is the third consecutive year that we, either together or separately, have reported on trends at the intersection of human rights and international arbitration from the prior year. As we emphasized last year, the effects of the COVID-19 pandemic on this intersection are likely to remain
Domestic Coal Market Obligation and Temporary Export Ban

Domestic Coal Market Obligation and Temporary Export Ban

Domestic Market Obligation (DMO) of coal is the obligation of Business Entities to submit part of its share of coal production to the state through the Implementing Body in the context of supplying coal to meet domestic needs, the amount of which is regulated in the Cooperation Contract. This DMO regulation is essential to control the amount of coal
Feed-in Tariff for Solar Photovoltaic: The Rise of Japan

Feed-in Tariff for Solar Photovoltaic: The Rise of Japan

Japan started implementing a national Feed-In Tariff (FiT) mechanism on the 1st July 2012, which included specific payment tariffs for solar photovoltaic (PV) installations. This marks a new era in the renewable energy landscape in Japan. This paper aims at analysing the solar PV prospect in Japan, particularly in both residential and non-residential sectors.
Calculating the Overtime Wage: Key Provisions Your Company Should Know

Calculating the Overtime Wage: Key Provisions Your Company Should Know

The calculation of overtime wage is regulated in Article 26, Article 29, Article 31 Paragraph (1), Article 31 Paragraph (2), Article 31 Paragraph (3) and Article 32 of Government Regulation no. 35 of 2021 concerning Employment Agreements for Certain Time, Expert Power, Working Time and Rest Time, and Termination of Employment ("GR 35/2021"). Company Obligation Article 26 states that overtime can only be worked at most 4 (four) hours in 1 (one) day and 18 (eighteen) hours in 1 (one) week and Article 29 further
Are You Ready for Tax Amnesty Volume II?

Are You Ready for Tax Amnesty Volume II?

The Indonesian reformation period promotes continuous new innovations led by its people, thus helping Indonesia's economic stability. Indonesia is a country that has high economic potential, potential that is starting to be noticed by the international community due to the prosperity of natural resources contained in the motherland. Of course, rapid materialistic success is encouraging news for business actors, but for some people, this is just one edge of a double-edged sword. At the other edge of the blade is an obligation for business actors to pay taxes on their income.