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.

Gas Regulation in Indonesia

The ownership, organizational and regulatory framework for LNG facilities depends on how the LNG business is carried out. If, under the applicable contractual arrangements, the natural gas is to be sold as LNG, then the owner of the LNG will be the government until the point of delivery or sale and the facilities will be developed within the framework of the cooperation contract.

Land & Real Estate in Indonesia

The system of land registration in Indonesia includes measuring, mapping and recording the land dimensions, registering the land title (which includes a public announcement) and, finally, the issuance of the land certificate under the applicant’s name.

Dispute Resolution in Indonesia

In the post-1998 era, corruption has been reduced in the Indonesian court system; so the parties can now rely on disputes being determined on the respective merits.  Consequently, any consideration in the past to declare Indonesia a “non-convenient” forum based on such concerns, would therefore no longer apply.

Typical provisions of a joint venture agreement Indonesia

A joint venture (JV) is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares.

A Legal Primer on Joint Venture Agreements in Indonesia

When forming an Indonesian joint venture the two main statutes for consideration are typically the Indonesian Civil Code and the Indonesian Company Law.

By contrast with the Civil Code, which was promulgated in the 19th century by the Dutch East Indies government and was based on the then existing Civil Code in the Netherlands, the Indonesia Company Law (Law 40 of 2007) was promulgated in 2007 and is a relatively modern form of companies’ law, drawing on a variety of contemporary international legislative models. Both laws will impact your structure and organization in Indonesia and the substance of your joint venture agreement.

Legal Separation for Divorce in Indonesia

Legal separation can be the basis for getting your divorce in Indonesia. When you’ve been living separately from your spouse for more than four (4) years, even though you never had a fight, it is the symptom of having disagreement in your marriage. Therefore, it can be used to dissolve your marriage. This is applicable for both Indonesians, mixed-marriage couples, and foreigners. In another words, it is applicable to those who submit themselves voluntarily to the Indonesian legal system.

Embassy Legalization and/or Certification for Foreign Public Documents in Indonesia

An Indonesian legalization or certifications upon a public documents to be further used for certain purposes, can be classified as a means to authenticate the authenticity of the said documents. In Indonesia, documents legalization can be legalized by following certain procedures, to obtain verifications over the documents.

There are numerous documents, such as public documents, private documents or official documents that can be legalized for international use, such as immigrations, civil acknowledgement or other typical requirements that is completely depends on where and how the documents will be required.

Acquiring Indonesian Citizenship through Marriage to an Indonesian Spouse

The Citizenship of Indonesia may be acquired through marriage with an Indonesian citizens. This is a new method provided by the new Indonesia's 2006 Citizenship Law in acquiring a Citizenship of Indonesia. The Indonesian spouse can be the sponsor for his/her spouse to turn status to Indonesian citizen.

This article will hopefully useful for foreigners married to Indonesian spouse who are considering to relinquish his/her current citizenship  and wish to seek the possibility of becoming an Indonesian.

Guide to Incorporate a Prenuptial Agreement in Indonesia

Most people think of marriage as the ultimate emotional and spiritual bond. They are looking forward to a life of happiness. However when faced with negotiating a premarital agreement, they realize that not only do they have to decide what will happen to them if they divorce or when die, but that they also have to negotiate these issues with their fiancée. It’s not the types of subjects that an about to be married couple likes to think about prior to getting married.

Indonesia Overseas Marriage Reporting

The Indonesian marriage law says that any marriage performed by two Indonesian citizens or by an Indonesian citizen with a foreign party abroad, will be considered as valid and legally  bounding, should the marriage is performed in accordance with the effective legal statute, of the country where the marriage was held.

Indonesian Immigration Limited Stay Guide KITAS (Kartu Ijin Tinggal Terbatas/Limited Stay Card)

The Indonesian Permanent stay Permit (KITAP) is an Indonesian Immigration License which is given to a foreigner who's previously held The Indonesian Limited stay Permit (KITAS) for five consecutive years. The Indonesian Permanent stay permit (KITAP) is the conversion proceedings given to a foreigner after possessing five (5) of The Indonesian Limited stay permit (KITAS), which simply means five consecutive years of staying in Indonesia.

The Validity of Marriage in Indonesia

Unlike other countries, Indonesian law has no provision for non-religious civil marriages. The validity of marriage is governed by the Marriage Law of 1974 which took affect in 2nd January 1974. The mixed-marriage couple needs to pay attention to the legal issues surrounding their union. If something unforeseen happens down the line, lack of legal requirements in your marriage will put you into an unfavorable condition. If the law doesn’t recognize your marriage, you are considered to be not marriage at all. This lack of a legal status will affect your divorce, division of marital properties, alimony, and child custody.

Divorce Advice from Divorce Lawyer in Jakarta, Indonesia

In Indonesia, every divorce lawyer will have to refer to the 1974 Marriage Law and its implementing rules for divorce and  marital dissolution. A divorce petition must be filed at the local district court for Non-Moslems, and local Religious Court for Moslems. There are certain marital dissolution reasons according to 1974 Marriage Law and Islamic Law, they are:

Marriage Law
Pursuant to Marriage Law, a marriage may be terminated due to several reasons as follows :

1. Death of either party
2. Divorce
3. Upon court’s decision

Death
The death to either party will automatically terminate the marriage.

Joint Venture How to in Indonesia

A joint venture (JV) is a business agreement in which the parties agree to develop, for a finite time, a new entity and new assets by contributing equity. They exercise control over the enterprise and consequently share revenues, expenses and assets. There are other types of companies such as JV limited by guarantee, joint ventures limited by guarantee with partners holding shares.

Indonesian Immigration Guide to KITAP (Kartu Ijin Tinggal Tetap)

Guide to KITAP (Kartu Ijin Tinggal Tetap/Permanent Stay Permit) in Indonesia
A status conversion of an Indonesian Immigration Permit is the changing of status of a Limited Stay Permit into a Permanent Stay Permit.

Coversion Provisions
Indonesia's Limited Stay Permits may be converted into Permanent Stay Permits with the exception of a Special Immigration Facility Limited Stay Permit.

Visas for Foreign Husbands of Indonesian Women

There are many married couples in Indonesia where either the wife or husband is foreigner and the spouse is Indonesian. Indonesian government regulations do not treat these two circumstances in the same manner. Almost all the regulations that apply to foreign wives of Indonesian men are very different that those that apply to foreign husbands of Indonesian women, few similarities can be found between the two circumstances.

Incorporation of Foreign Company Investment (PMA Company) in Indonesia

Business activities in Indonesian may be carried-out in the form of a sole proprietorship, a general or limited partnership or one of a various number of corporations. However foriegn capital investment (so called "PMA Company") in Indonesia may only conducted in form of a limited liability company, being established and existed under the Indonesian laws and havin its legal domicile within the Indonesian territory.

Divorce and Marriage Dissolution in Indonesia

Everyone wishes to have a long-lasting marriage. But when things are not working, you should know what to do to end the marriage legally. In Indonesia, divorce and marital dissolution have been governed by the 1974 Marriage Act and its implementation rules.

Divorce Between Foreigners in Indonesia Regulation

You and your spouse are foreigners. Both of you have been living in Indonesia for several years due to work commitments. Either your spouse works in Indonesia or being your dependent, both of you are residents of Indonesia. After all you have been through, you find the romance is no longer exists and you are seeking divorce as the ultimate solution.

Indonesia Step Child Adoption Procedures

Adopting your Indonesian stepchild is a special adoption proceeding because it takes place within a marriage between an adopting parent and a biological parent. Adopting your spouse’s child can make your family feel connected. When a step-parent adopts his spouse’s child, he becomes responsible for the child both legally and financially in addition to forming an emotional bond.

This type of adoption is pretty special in Indonesia. Not only because it is happening within a marriage, but this is also because of the shared custody of the child between the adopting parent and the spouse as the custody holder. It should not remove your spouse’s custody right and put it on you as the adopting parent. It’s more like making your spouse share the child custody with you as if the child was born within your marriage. Both of you will share parental authority in virtue of a court decree.

Prenuptial Agreement in Indonesia

The assets of both husband and wife are jointly owned after marriage and each partner is entitled to 50 percent of the estate. If a foreigner wishes to protect assets that predate the marriage, a prenuptial agreement (Surat Pernyataan Harta) is required. A prenuptial agreement must be made before getting married and it cannot be made retroactively. The agreement is legalised at the same time the marriage is registered with the local Civil Registration Office (Kantor Catatan Sipil) and the Office of Religious Affairs (Kantor Urusan Agama).

How to ESTABLISHMENT OF FOREIGN DIRECT INVESTMENT COMPANY In Indonesia

Indonesia has abundant natural resources and strategic location in the international water, a large number of populations, approximately 230 million people do have the potential and capability to support the investment climate. Indonesia has also made substantial progress in the field of democracy economic reforms and security over the last decade. Indonesia is welcoming foreign capital investors.

How to Divorce in Indonesia?

Every married couple definitely wish to have a long-lasting marriage, however, if things are not working, a husband or a wife could decide to end the marriage with a divorce. Divorce in Indonesia can sometimes pretty easy if both husband and wife agrees to divorce, but it can also turn out to be a lengthy and stressful legal proceeding if one of the party (husband or wife) refuses to have the divorce.

In Indonesia, every divorce can only be executed by a court decision. An agreement to divorce between the husband and wife will not be constituted as a divorce, only a court decision may constitute a divorce.

How to Termination of Employment Relationship in Indonesia

Employment matters in general, and the termination of employees in particular, can often be both complex and confusing. Indeed, for the unwary Employer, they can also have significant impact both in terms of time and cost. Accordingly, it is important for management personnel to have a certain amount of background knowledge on Indonesian employment issues prior to entering into (and certainly before terminating) any employment relationship.

How to Establishing a Representative Office in Indonesia

Establishing a representative office is the fastest way to get a legal presence in Indonesia and it is easier than setting up a limited liability company. But it comes with more limitations.

Note that in the Indonesian context representative office is not the same as a branch office. So if you are looking to establish a local entity that is free to earn revenue, import products etc. then you need to set up a foreign direct investment (PT PMA) company.

In this article we explore the benefits of representative office and in which cases you should prefer it over limited liability company.

How to Dissolve Company in Indonesia

In Indonesia, a liquidation of an Indonesian company by virtue of Article 142, paragraph 1 of the Indonesian Law No. 40 of 2007 on Limited Liability Company (“Company Law”), could performed by the following reasons :

1. Based on a resolution of the General Meeting of Shareholders (“GMS”).
2. Due to the expiry of the company, as prescribed in the articles of association.
3. A court order.
4. Revoked bankruptcy statement based on binding court judgment, and the asset of the company is not sufficient to pay the bankruptcy cost or.
5. Due to the revocation of the company’s business permit, so that the company is obliged to conduct liquidation according to prevailing regulations.

Marriage Registration in Indonesia

Indonesian marriage law states that a marriage is legitimate if it is performed according to the regulations of the religious beliefs of the husband and wife. Because religious law applies, requirements vary.