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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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Procedures To Establish A Foreign Company In Indonesia

Procedures To Establish A Foreign Company In Indonesia

By adminbpl | Mar 6, 2020

Procedures To Establish A Foreign Company In Indonesia A foreign company (or PT Penanaman Modal Asing, hereinafter “PT PMA”) is a distinct business entity to generate revenues, profit, or engage in sales directly in Indonesia which can be established by either foreign citizens or legal entities. This entity is regulated generally under the Legislation No. 40 of 2007 regarding Limited Liability Company (hereinafter, “Limited Liability Company Act”), and Legislation No. 25 of 2007 regarding Capital Investment. In order to establish PT PMA, there are several basic matters that must be considered: There is limitation for foreign share ownership under the Negative Investment List (Daftar Negatif Investasi, hereinafter “DNI”) that is specifically governed in the President Regulation No. 44 of 2016. The DNI is served as a guideline for the investors to have clear options about the business sectors or line of business which they can invest in Indonesia. DNI also provides distinction between PT PMA and companies established under the frame of Domestic Capital Investment (PT PMDN), and other ordinary local limited liability companies.…

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The Intricacy of a Work Agreement

The Intricacy of a Work Agreement

By adminbpl | Mar 5, 2020

The Intricacy of a Work Agreement Indonesian Labour Law is regulated under the Act of the Republic of Indonesia Number 13 of 2003 concerning Manpower [hereinafter, “Law No. 13/2003”]. The Law No. 13/2003 governs the general rules of labour to protect the fundamental rights of workers and to secure the implementation of equal treatment without discrimination to realize the welfare of labourers as well as their family. As a worker, it is a must to understand the rights you have and obligations you bear. To secure your position, an agreement usually plays a pivotal role. In the work field, it is called a work agreement. There are two types of a work agreement, i.e an individual work agreement and a collective work agreement. Under Article 1 (14) of Law No.13/2003, an individual work agreement shall be defined as an agreement made between a worker/labourer and an entrepreneur or an employer. The agreement specifies work requirements, rights and obligations of both sides. On the other hand, as defined under Article 1 (21) of Law No.13/2003,…

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