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Is a Nominee Arrangement Regarding Company Shares Ownership Allowed in Indonesia?

Is a Nominee Arrangement Regarding Company Shares Ownership Allowed in Indonesia?

By adminbpl | Aug 5, 2020

Is a Nominee Arrangement Regarding Company Shares Ownership Allowed in Indonesia? In March 2020, Budi and Frans want to establish a foreign investment company (PT PMA) to run a potato cultivation business. Budi is an Indonesian citizen., while Frans is a Chinese citizen who has lived in Indonesia for a long time. They plan to export potato harvest from the cultivation to other countries. To realize this business, they agree to set aside their assets to be paid up as shares in the company. Frans and Budi agrees that the breakdown of shares ownership in the PT PMA should be 63% (sixty three percent) for Frans and 37% (thirty seven percent) for Budi. However, this becomes an issue. Under the applicable Negative Investment List (Presidential Regulation No. 44 of 2016, foreign shareholding ownership for potato cultivation business is 30% (thirty percent). Under their current plan, the shares ownership percentage of Frans (63%) is too high and does not comply with the Negative Investment List. Frans insisted to have the majority of control in the…

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Things Foreigners with Telex Visas Need to Know during Covid-19 Pandemic in Indonesia

Things Foreigners with Telex Visas Need to Know during Covid-19 Pandemic in Indonesia

By adminbpl | Jul 10, 2020

Things Foreigners with Telex Visas Need to Know during Covid-19 Pandemic in Indonesia Covid-19 outbreaks have urged the Indonesian Government to implement some policies to prevent worse situations. One of the major issues to regulate is the movement of foreigners. On 2 April 2020, the Ministry of Law and Human Rights Regulation Number 11 of 2020 about Temporary Prohibition of Foreigners from Entering Indonesia (MOL 11/2020) was issued. The regulation has confused expatriates who intend to enter Indonesia, especially those who already obtained the telex visa or visa approval. Telex Visa will be valid for 60 days since its issuance date. During that time, foreigners must claim their Telex Visa to the Embassy of Republic Indonesia in their country.  However, amid the Corona Virus outbreak, the policy to prevent foreigners from entering Indonesia is enforced, and some Indonesian Embassies also close their offices and do not accept any visa application. This condition sparks worries among foreigners who have obtained Telex Visa since their Telex Visas will expire before they claim it. In response to…

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Companies Must Know The Provisions of The Transfer of Employee To Other Companies In One Company Group

Companies Must Know The Provisions of The Transfer of Employee To Other Companies In One Company Group

By adminbpl | Jun 15, 2020

Companies Must Know The Provisions of The Transfer of Employee To Other Companies In One Company Group “The company may not arbitrarily transfer employees to other companies, this cause a change in the status of the employer, employment relations and legal relations basis” Limited company can establish a subsidiary or subsidiaries to execute the Parent Company business. Limited Company Law that has the principle of limited liability, results in all legal actions undertaken by the company including its subsidiaries to be accounted for separately even in one group of companies. This means that the Parent Company and its subsidiaries have their respective responsibilities for legal actions. Companies that have subsidiaries may potentially make a policy of transferring employee from one company to other company in the group (“transfers”). The purpose is none other than to help the subsidiary’s business processes to proceed in accordance with the company’s goals. THINGS THAT NEED TO BE CONCERNED IN TRANSFER OF EMPLOYEE Understand the Transfer of Employee Provisions. Mutation of Employee is Different from Transfer of Employee. Many…

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Company Obligations to Institute Company Regulations and Sanctions

Company Obligations to Institute Company Regulations and Sanctions

By adminbpl | Jun 12, 2020

Company Obligations to Institute Company Regulations and Sanctions “Companies that have at least 10 employees are required to institute company regulations. These company regulations have binding legal force if they have been approved by the local Manpower Office. If the company does not institute company regulations, the company may be subject to criminal sanctions.” The South Jakarta Regency Court (PN) judge imposed a fine of IDR 5 million or a sentence of one month in prison to the Director of PT DGI last March. The sanction was handed down because PT DGI was proven to not have Company Regulations. Obligations to have Company Regulations are regulated in Articles 108 through Article 115 of Law Number 13 of 2003 concerning Manpower (“Law 13/2003”) and Minister of Manpower Regulation Number 28 of 2014 concerning Procedures for Institution and Ratification of Company Regulations and the Institution and Registration of Collective Labor Agreements (“Permenaker 28/2014“). Basically, companies need a guideline so that operational activities can run well. Especially companies that have developed and already have many employees, it…

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Arbitration Session at BANI Will Be Conducted Electronically

Arbitration Session at BANI Will Be Conducted Electronically

By adminbpl | Jun 11, 2020

Arbitration Session at BANI Will Be Conducted Electronically BANI (Indonesian National Arbitration Board) on May 28, 2020, has just issued Decree Number 20.015/V.SK-BANI/HU concerning the Rules and Procedures for Organizing Electronic Arbitration (Electronic Arbitration Decree). Decree on Arbitration Electronically issued under the consideration that meeting and session of the Arbitration Council or Single Arbitrator can be held at any time and place including through the internet network. With this Electronic Arbitration Decree, the BANI Board of Directors Decree regarding the Temporary Termination of the Tribunal Process at BANI during the Corona Virus Disease Pandemic Period (COVID-19) was declared invalid. The Electronic Arbitration Decree shall take effect as from the date of stipulation. There are 12 Articles in the Electronic Arbitration Decree including the following: Article 1. Scope The Electronic Arbitration Rules and Procedures can be used in the event of a disaster emergency and special situation occur when: A party wishes to submit an application for arbitration; An arbitration tribunal will take place or an arbitration tribunal is in progress The meaning of a…

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Observe Drug and Food Online Circulation Supervision Regulation

Observe Drug and Food Online Circulation Supervision Regulation

By adminbpl | May 27, 2020

Observe Drug and Food Online Circulation Supervision Regulation Medicines and Processed Foods that are circulated online must have a circulation permit, but ready-to-eat foods are excluded from such obligations. The COVID-19 pandemic period requires people to implement social distancing. One of the effects of social distancing is that people buy their daily needs online, so they don’t have to leave their residence. This is also supported by the increasing number of applications that sell food and medicine online. So how is the control of drugs and food, which are sold online, carried out during COVID-19? National Agency of Drug and Food Control (BPOM) has just issued a Regulation on the Supervision of Medicines and Foods that are Circulated Online. PerBPOM No. 8 of 2020 regulates the supervision of activities related to the distribution and/or delivery of drugs, traditional medicines, health supplements, cosmetics, and processed food using electronic transaction media in the context of trade. Online Drug Distribution In this regulation, drugs that are circulated online must have a circulation permit and must meet the…

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Requirements for Business Operators Continuing to Deliver Goods Using Land Transportation during Transportation Control Period

Requirements for Business Operators Continuing to Deliver Goods Using Land Transportation during Transportation Control Period

By adminbpl | May 26, 2020

Requirements for Business Operators Continuing to Deliver Goods Using Land Transportation during Transportation Control Period “All business operators who are still operating need to prepare themselves to complete all the requirements stipulated in Permenhub 25/2020 and Circular Letter of Task Force for the Acceleration of COVID-19 Handling in using land transportation.” In order to accelerate the handling and control of the spread of Corona Virus Disease-2019 (COVID-19) the Ministry of Transportation of the Republic of Indonesia issued Ministerial Regulation No. 25 of 2020 Regarding Transportation Control During the Eid Al-Fitr Mudik Period of 1441 Hijri in the Context of Preventing the Spread of Corona Virus Disease 2019 (COVID- 19) (“Ministry of Transportation Regulation 25/2020”). Referring to Article 1 paragraph (1) of the Permenhub 25/2020, the Government essentially imposes a temporary prohibition on the use of transportation facilities especially those used for travel by people. The types of transportation facilities which are temporarily prohibited from being used are: Land transportation; Railway transportation; Sea transportation; and Air transportation. Furthermore, this temporary prohibition was applied from 24…

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These Legal Aspects Needs to be Considered by Company Directors in Making Decisions Facing the New Normal during Covid-19

These Legal Aspects Needs to be Considered by Company Directors in Making Decisions Facing the New Normal during Covid-19

By adminbpl | May 21, 2020

These Legal Aspects Needs to be Considered by Company Directors in Making Decisions Facing the New Normal during Covid-19 Covid-19 has characteristics and aspects that are very different from the challenges that have been faced by the Directors of the Company before. Put simply, it can be said that current conditions have never been faced by any industry, even globally. Covid-19 will test the new skills of Directors from all business sectors, all business scales from local to global, small to large scale businesses. This New Normal condition will occur with an uncertain period. For most companies, this will present a series of difficult problems and unimaginable serious risks. Therefore, the company must immediately adapt and continue to move to find solutions. How can the directors cope with the current situation that triggers high pressures and threats to business continuity? Start with the basics: keep calm, always be alert, help one another, get information, get advice, be wise, and decide things decisively. One of the most important basics in a company crisis situation is…

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Things to Know for Foreigners whose Visa are Expired during Covid Pandemic in Indonesia

Things to Know for Foreigners whose Visa are Expired during Covid Pandemic in Indonesia

By adminbpl | May 20, 2020

Things to Know for Foreigners whose Visa are Expired during Covid Pandemic in Indonesia Covid 19 pandemic resulted in the Indonesian government need to make policy regulations to prevent the situation from getting worse. One of the major issues that must be regulated is the traffic of foreigners. On 2 April 2020, the Ministry of Law and Human Rights impose a ban on foreign nationals from entering Indonesia. That regulation causes much confusion among expatriates going to enter Indonesia and  expatriates residing in Indonesia but their visa soon to be expired. Indonesian Government allowed those foreigners to stay when their visa expired by using Emergency Stay Permit (Izin Tinggal Keadaan Terpaksa). Here are several important things to know for foreigners whose visas have expired and cannot return to their country of origin due to travel restriction. Applies for Every Visa Holder The emergency stay is permitted by any type of Visa holder in Indonesia. Both visit visa and limited stay visa (ITAS) eligible to use the emergency stay permit during Covid 19 emergency. As…

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