Any foreign investor to Indonesia must submit an annual investment activity report, detailing all relevant updates regarding its investment in Indonesia subsequent to the initial investment. [1] This report needs to be filed on a quarterly basis with the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal - BKPM) and is called "Investment Activity Report" (Laporan Kegiatan Penanaman Modal - LKPM). In the LKPM, every investor must provide an update on the initial investment ...

In an industry which thrives on lofty ideals of amicable dispute resolution and open debate, it is startling to observe that the environmental impact involved in the conduct of international arbitrations has received little attention. This is not to suggest that the international arbitration community has completely

Since a few weeks, the world news has been dominated by reports on the Coronavirus. More and more countries, including Indonesia, impose travel bans and other measures which greatly impact trade and investment. Every business potentially affected must carefully take the necessary actions to minimize all risks. In particular, we strongly advise all our clients to proactively mitigate their risk stemming from interruptions to their own operations or those of critical suppliers. We have already advised several of our clients ...

Implementation of The Electronic Court The development of technology in today's era is moving at an unprecedented rate, especially in the field of information technology which covers the internet. Though technological progress has positively improved the lives of millions of individuals, it has forced the law to match its development in order to reap these same benefits institutionally. Recently, the Supreme Court ("SC") has enacted a regulation regarding the implementation of electronic court ("e-Court"), designed to more efficiently handle the administrative tasks involved in cases and trials...

Liquidation, or the winding up of a company, is a process during which a company's assets are seized and realized - that is, converted into cash. This money is typically then used to pay off the company's debts and liabilities. The process ensures a fair distribution of a company's assets between its creditors, members, and shareholders, and results in the termination of the company's existence once all debts and liabilities have been paid. Pursuant to Article 142 par. (1) of Law no. 40 Year 2007 regarding Limited Liability Law, liquidation may happen due to: A decision made in a General Meeting of Shareholders ("GMS");...

The economic and political impact of controlling personal data created the need to regulate organisations and individuals involved in collecting, storing, processing and transferring such data. Jurisdictions across the world have enacted data protection laws with extra-territorial applications. Indonesia is no exception in adapting and responding to this global phenomenon in this 4th Industrial Revolution era. The largest South East Asian economy will have its own personal data protection law (Undang-Undang Perlindungan Data Pribadi) that adopts EU GDPR approach. Under the new Indonesian personal...

Schinder has entered into official collaboration with EP Legal, a reputable Vietnamese law firm with headquarters in Ho Chi Minh and offices in Ha Noi and London, UK. EP Legal is the first Vietnamese law firm which is specialized in oil & gas Industry with the foremost legal practice to support clients 's needs in the energy industry In Vietnam. EP Legal also focuses on infrastructure and manufacturing industry. They have substantial experience in delivering legal services in support of local Vietnamese and international commercial transactions, incorporations, mergers & acquisitions, maritime...

Domestic and international franchise businesses have expanded rapidly as a way of investing in Indonesia. In this country, it is nearly impossible for you to go outside without seeing a franchise business, be it in F&B (McDonald's, KFC, Starbucks Coffee), retail (Alfamart, Indomart), or beauty and personal care (Haircode, Kaizen). However, the regulatory system around franchising is extensive and complex, which poses a challenge for business actors who want to grow through this route. The following are some of the regulations regarding franchising in Indonesia:

Companies providing outsourcing services (the "Outsourcing Company") shall comply with the provisions of the Ministry of Manpower Regulation No. 11 of 2019 on Requirements of Partial Work Division to Other Company (the "Regulation"), the newest regulation on outsourcing arrangements. The Regulation requires that the following are produced or amended: The Outsourcing Agreement (the "Agreement") needs to clearly state the following additional clauses: 1. Description of the type(s) of works to be performed by the workers/employees of the Outsourcing Company;

Job Positions Allowed in Indonesia for Foreign Workers Companies who are looking to hire foreign workers should refer themselves to the Ministry of Manpower Regulation No. 228 of 2019 regarding the Specific Positions Open for Foreign Workers (the "Regulation") The Regulation specifically addresses job titles that are open for foreign workers in 18 industry sectors, with all 18 industry sectors listed in the table below:

Indonesia's Minister of Energy and Mineral Resources has recently relaxed regulations on changes in investment structures within the mineral and coal mining sector. In the past, changes such as those in investments, financing source, investment status (Foreign Investment or Domestic Investment), Articles of Association, could only be performed after obtaining ministerial approval.1 Now, through the Regulation of the Minister of Energy and Mineral Resources No. 11/2018, any increase in authorized capital, subscribed capital, and paid-up

The Ministry of Public Works and Housing has enacted Regulation No.11/PRT/M/2019 (the "Regulation") regarding PPJB on 18 July 2019. The Regulation is applicable to sale and purchase transactions of residential real estate and properties, including private houses, private commercial houses, cluster houses, and apartment units. In the PPJB context, the term "Developer" refers to both an individual and legal entity. The Regulation regulates PPJB transactions, which are usually entered by ...

The insurance industry in Indonesia began during the Dutch colonial period, presenting itself as one of the many mechanisms to secure the Dutch's trading activities. Indonesians are vaguely familiar with the benefits of insuring themselves against loss, damage, illness or death - ultimately, this lack of awareness materializes in the low adoption rates of insurance coverage. The Jakarta Post reported that only 1.7 % (one point seven percent) of the population have insurance, and as a result, Schinder Law Firm sees a substantial opportunity for the insurance business to grow rapidly in Indonesia...

The European Parliament and the Council of European Union enacted Regulation 2016/679 on 25 May 2018, known as General Data Protection Regulation ("GDPR"). The GDPR provides a set of standardized data protection laws, which are intended to make it easier for consumers worldwide to understand how their data is being used. GDPR has extra-territorial application outside European Union ("EU") member states, and therefore affects data processing activities of controllers in other countries including Indonesia, where goods and services ...

Indonesia's peer-to-peer lending industry is experiencing massive growth. To help regulate institutions in the space, on October 5th, 2018, the Indonesian Financial Services Authority (OJK) established Asosiasi Fintech Pendanaan Bersama Indonesia (AFPI), the country's official association for peer-to-peer lending businesses. OJK inaugurated the association through Letter No. S-5/D.05/2019 dated March 8th, 2019, and now requires every peer-to-peer lending company...

On 24 July 2019, Schinder Law Firm hosted a full-day class of Atma Jaya University's Summer Course on Business Law. The international students participating in the Course are from Afghanistan, Egypt, Eritrea Iraq, Sudan, Somalia, Taiwan, and Vietnam. The class was intellectually stimulating and culturally enriching for both our firm and the students. Our Senior Advisors Professor IBR Supancana and Dr Bambang Supriyanto, who are also faculty members of the University, delivered lectures on Indonesian investment and employment laws...

Jakarta's sky consistently finds itself shrouded in a blanket of pollution, followed by hundreds of citizens using their smartphones to monitor the air quality. On a car free day, many pose the question: is today's pollution safe enough for me to exercise outside? Although the city's steep pollution comes as no surprise to many inhibitors, the citizens of Jakarta are beginning to take serious actions against the government to demand better air quality. In light of the topic of air quality standards, Schinder Law Firm highlights a new regulatory policy: the Minister of ...

Jakarta, Indonesia's capital and commercial center, is taking a big step to improve the ease of doing business in the country. Jakarta's Investment and One-Stop Services Agency (Dinas Penanaman Modal dan Pelayanan Terpadu Satu Pintu Pemerintah Provinsi Daerah Khusus Ibukota Jakarta-"PTSP DKI") has recently issued Announcement Number 27 of 2019, regarding the Public Services Shutdown for Company Domicile Letter Non-License and Business Domicile Letter. Company Domicile Letters...