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An Investment in Indonesia: Benefits Given by the Government

By adminbpl | Mar 31, 2020

An Investment in Indonesia: Benefits Given by the Government An investment is a form of business to get profit in the future, or specifically in Indonesia, an investment or more known by a capital investment, as regulated under Law No. 25/2007 about Capital Investment, is all form of capital investments by local investor or foreign investor to conduct business in Indonesia. More specific in the same regulation, it states that a foreign capital investment is an activity of investing to conduct business in Indonesia using either fully foreign capital or joint-capital with local investor. In Law No. 25/2007, it also states that the investor could get general benefits such as: The investor is given two years of limited stay permit The limited stay permit could be changed into a permanent stay permit if the investor has lived in Indonesia for consecutive 2 years Re-entry permit for several trips for the holder of limited stay permit and with a validity period of one year for a maximum period of 12 months from the date a…

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LIST OF SPECIAL ECONOMIC ZONES IN INDONESIA

LIST OF SPECIAL ECONOMIC ZONES IN INDONESIA

By adminbpl | Mar 30, 2020

LIST OF SPECIAL ECONOMIC ZONES IN INDONESIA Special Economic Zones are areas within certain boundaries that have geo-economic and geo-strategic advantages which located inside of a country. Special Economic Zone first appeared in the late 1950s in Shannon Airport in Claire, Ireland. One of the main purposes of Special Economic Zone is to attract investors by giving tax incentives and lower tariffs for conducting business in Special Economic Zone. China is the perfect example of successful country in using Special Economic Zones to attract investors of foreign capital. China has even declared an entire province, Hainan, to be a Special Economic Zone. The first four Chinese Special Economic Zones were all based in south-eastern coastal China and included Shenzhen, Zhuhai, Shantou, and Xiamen. China allowed, and continues to allow, these areas to offer tax incentives for foreign investors and develop their infrastructure without approval. The Special Economic Zones essentially act as liberal economic environment that promotes innovation and advancement within China’s borders. The Special Economic Zones continue to exist with great success. The success of Shenzhen and the other…

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WHAT DOES ESOP MEAN?

WHAT DOES ESOP MEAN?

By adminbpl | Mar 27, 2020

WHAT DOES ESOP MEAN? Employee Stock Option Program (ESOP) is a program that provides the employees a right to be shareholders of their own company. It is possible for the employees to be the shareholders since the main aim of this program is giving incentive for the employees by giving the share of the company. Generally, Employee Stock Option Program (ESOP) is designated as a pension fund for the employees in their retirement. However, there also other aims, mechanisms, and legal standing to apply ESOP. Hereby:   Aims Improving the employees’ loyalty towards the company By  relating the ESOP to the intention of the employers to work at the company, it would improve the capability of the company to carrying out their business with a solid line up. There is also another reason, ESOP encourages employees to do what is the best for shareholders since the employees themselves are shareholders and provide companies with tax benefits, thus give incentive to the owners to be extended to the employees. As a reward for the employees…

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The Latest Rules for Granting Visas to Chinese Citizens due to COVID-19

The Latest Rules for Granting Visas to Chinese Citizens due to COVID-19

By adminbpl | Mar 26, 2020

The Latest Rules for Granting Visas to Chinese Citizens due to COVID-19 Applicants must attach a Covid-19-free healthy statement. Covid-19 or coronavirus first appeared and began to spread in Wuhan City, China in December. But now its spread is increasingly widespread, in Indonesia alone there have been two people who tested positive for corona on March 1, 2020 yesterday. To prevent the more widely spread the Government in February issued Minister of Law and Human Rights Regulation No. 3 Year 2020 concerning Temporary Suspension of Visit Visa, Visa and Granting of Permits for Forced Residents to Chinese Citizens. However, in March the Government evaluated the ministerial regulation by issuing Minister of Law and Human Rights Regulation No. 7 Year 2020 (Permenkumham No 7/2020) concerning Granting of Visas and Residence Permits in the Prevention of Corona Virus Entry . Then what are the provisions regarding the granting of visas and residence permits that change? Granting visa-free visit visa on arrival Provisions regarding the granting of a visa-free visa and a visitor visa on arrival are…

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Steps that You Need to Do after Knowing Recently Regulated Beneficial Ownership

Steps that You Need to Do after Knowing Recently Regulated Beneficial Ownership

By adminbpl | Mar 26, 2020

Here are some steps that every business doer needs to do to comply with provisions regarding beneficial ownership. Following the steps of several countries that fight against cash flow from corporate fields into corruptions, money launderings, or terrorism funding, Indonesia has recently regulated the principal of beneficial ownership to combat crimes relating to corporations. In 2018, President Joko Widodo issued a presidential regulation about the application of this principle for prevention and eradication of crimes limited to money laundering and terrorism funding in Regulation of the President Number 13 of 2018 that stipulates the definition and identification of someone who can be called as beneficial owner and creates a new norm that requires a registration for beneficial owner in every corporation. Moreover, in 2019, Ministry of Law and Human Rights issued two ministerial regulations regarding the procedures to enact this presidential regulation, namely the implementation in Regulation of the Minister of Law and Human Rights Number 15 of 2019 and the supervision in Regulation of the Minister of Law and Human Rights Number 21…

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A New Regulation! Violating These Manpower Norms, Business Actors Can Be Proceeded Directly to the Court

A New Regulation! Violating These Manpower Norms, Business Actors Can Be Proceeded Directly to the Court

By adminbpl | Mar 20, 2020

A New Regulation! Violating These Manpower Norms, Business Actors Can Be Proceeded Directly to the Court In the previous regulation, the implementation of manpower supervision for all manpower norms was carried out in stages. Judicial Repressive action is the last resort. Manpower is an important thing that must be considered by employers. To avoid loss and as a form of legal compliance, employers have to comply with all aspects of employment to avoid Manpower conflict. To supervise legal compliance in manpower, the Government has the authority to conduct manpower supervision. The Government has big participation in manpower supervision, regulated in Regulation of Minister of Manpower Number 1 of 2020 on Amendment to Regulation of Minister of Number 33 of 2016 on Procedures of Manpower Supervision (“Permenaker 1/2020”). One of the amendments to this regulation is regarding the implementation of manpower supervision for violations that can be directly carried out by force in the court. This is regulated in Article 9B Permenaker 1/2020 which states violations of certain manpower norms, judicial repressive action can be…

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These are the Requirements for Becoming a Peer to Peer Lending Provider in Indonesia

By adminbpl | Mar 19, 2020

These are the Requirements for Becoming a Peer to Peer Lending Provider in Indonesia Borrowing and lending money directly by either written or unwritten agreements is a longstanding practice amidst society. This practice certainly persists because it is one way to obtain funds quickly that cannot be provided by financial service institutions in the Banking, Capital Market, or Financing Companies. In the digital era as it is today, the practice of lending and borrowing has experienced developments marked by the presence of peer to peer lending fintech. With the existence of peer to peer lending, fund borrowers can meet lenders on an online platform as if bringing together traders and buyers in a buying and selling application. This practice is rife in society because the process is far easier than borrowing funds from conventional banks and there are promising benefits for lenders. The rise of peer to peer lending lately makes the providers of peer to peer lending begin to mushroom in Indonesia, either registered and licensed or illegal. To avoid losses for peer…

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Business Doers Need To Know the Difference Between Trademarks and Patents

Business Actors Need To Know the Difference Between Trademarks and Patents

By adminbpl | Mar 18, 2020

Business Actors Need To Know the Difference Between Trademarks and Patents Business actors often mention “Patent a Trademark”, apparently this term is not quite right because trademarks and patents are two different things. In some cases, business actors are still confused about determining the right intellectual property that has to be registered for their products. Trademarks itself are regulated in Act Number 20 of 2016 on Trademarks and Geographical Indications, while Patents are regulated in Act Number 13 of 2016 on Patents. Trademarks mean any sign capable of being represented graphically in the form of drawings, logos, names, words, letters, numerals, color arrangements, to distinguish them from other products. In contrast, patents are exclusive rights granted by the state to inventors for their inventions in technology. The Period of trademarks is valid for 10 years and can be extended for 10 years with a maximum of 6 months before the period of mark ownership ends. However, the period of patents is 20 years and cannot be extended, while for simple patents the period is 10…

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Company Gets a Capital Injection from Foreign Investors

5 Things You Need to Know Before Your Company Gets a Capital Injection from Foreign Investors

By adminbpl | Mar 13, 2020

5 Things You Need to Know Before Your Company Gets a Capital Injection from Foreign Investors From the arrangement deciding the agreement forms to company status. At the end of February 2020, Tech in Asia reported that JD.id, a subsidiary of a company based in the People’s Republic of China JD.Com which conducts e-commerce activities in Indonesia has reached a valuation of over US$ 1 billion. Therefore, JD.id becomes the 6th Startup company with Unicorn status in Indonesia, besides Gojek, Tokopedia, Traveloka, Bukalapak, and Ovo. Not only Startup that holds Unicorn status that constantly looks for funding to run and expand its operational activities in Indonesia, but also other startups and not to mention micro, small, and medium enterprises (MSMEs) which means to continuously develop commercially. Capital injections for business activities in Indonesia, especially if your business takes the form of a Company (Limited Liability Company or Perseroan Terbatas/PT), can come from local investors from Indonesia itself or foreign investors. Although in 2019 the investment capital injections into startups in Indonesia fell by 40%…

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