Oil and Gas Business in Indonesia

Through significant investment, the oil and gas market has seen exploration and production (E&P) broaden extensively over the past decade. As the oil and gas resources are often found in new locations, such as emerging markets, the cost of E&P has gone up and in turn, this has increased logistics costs disproportionately. This has certainly made the market desirable to logistics providers, particularly as it appears this trend is set to continue for the foreseeable future.

Ti’s Oil and Gas Exploration and Production Logistics 2013 scrutinises the size of the market, its growth prospects and how the structure of the market and its supply chain is evolving. The report also highlights the distinct features of the supply chains of oil fields, off-shore markets and unconventional E&P markets.

Employment Law in Indonesia

In general, the vast majority of Indonesian workers are not unionized.  This may in part be attributable to the fact that the Indonesian employment standards legislation provides very generous benefits and requires Labour Court approval for all employee terminations except where the employee accepts the termination by written agreement or resignation.

Any group of at least 10 employees can register a union.  One or more unions representing more than 50% of all employees have the right to negotiate a Collective Labour Agreement which is binding on all employees.  Bargaining in Indonesia takes place at the company level as industry level negotiations are not well developed.

Communication and Media Law

If you are a legal professional or are responsible for social media, and you are concerned about the legal risks that relate to using social media, this group is for you.

Intellectual Property Rights in Indonesia

Intellectual Property Rights (IPR) consists of two categories, copyrights and industrial property rights is the exclusive right for the creator or the recipient of copyright to publish or duplicate its creation or to give permission for the creation without prejudice to the restrictions under the applicable rules and regulations.

Indonesia Sharia Law

Although Indonesia, "the world's largest Muslim country" with an 87% Muslim population, was once considered a moderate Muslim country, day by day it has been leaning more and more towards conservative Islam and Sharia laws. Initiated in 2009, bylaws in the light of Sharia rulings were implemented that conflict with the values of human rights, and are creating a difficult land for minorities to live in.

Foreign Investment Law Indonesia

In 2007, the Government of the Republic of Indonesia (“GOI”) enacted a new Investment law in the form of Law Number 25 of 2007 concerning Investment (“Investment Act”) and made this Investment Act the legal basis of investment activities in Indonesia.

Overview of the Indonesian Legal System

The Indonesian legal system is complex because it is a confluence of three distinct systems. Prior to the first appearance of Dutch traders and colonists in the late 16th century and early 17th century, indigenous kingdoms prevailed and applied a system of adat (customary) law. Dutch presence and subsequent colonisation during the next 350 years until the end of World War II left a legacy of Dutch colonial law. A number of such colonial legislation continue to apply today. Subsequently, after Indonesian declared independence on 17 August 1945, the Indonesian authorities began creating a national legal system based on Indonesian precepts of law and justice.

These three strands of adat law, Dutch colonial law and national law co-exist in modern Indonesia. For example, commercial law is grounded upon the Commercial Code 1847 (Kitab Undang-Undang Hukum Dagang or Wetboek van Koophandel), a relic of the colonial period. However, commercial law is also supplemented by a large number of new laws enacted since independence. They include the Banking Law 1992 (amended in 1998), Company Law 1995, Capital Market Law 1995, Antimonopoly Law 1999 and the Oil & Natural Gas Law 2001. Adat law is less conspicuous. However, some adat principles such as “consensus through decision making” (musyawarah untuk mufakat) appear in modern Indonesian legislation.