SSEK Indonesian Legal Consultants acted as sole counsel to Thai Containers Group Co., Ltd. in its US$6.1 million acquisition of PT Indoris Printingdo, an Indonesian box and packaging manufacturer. Thai Containers Group is a subsidiary of SCG Paper. It is the largest corrugated containers manufacturer in Southeast Asia. Partner Fahrul S. Yusuf led the SSEK team advising on the deal, assisted by senior associate Deni Sri Anjayani.

By Ade B. Adamy With a population of more than 250 million, Indonesia is an attractive country for investors, particularly those interested in the distribution, retail and franchise sectors. But 2014 was a nervous time for new and existing investors in Indonesia, many of whom delayed any major actions to see how the country's legislative and presidential elections would play out. We would expect this situation to continue through the end of the year, despite Indonesia having elected a new president, Joko Widodo, on July 9. Investors are expected to wait and see the direction of the new government and the economic policies of President Widodo, but there is optimism. With his call to work, work, work in his inaugural address, President Widodo has engendered hope for a better business environment in Indonesia. Investors in the franchise sector though must first be aware of the latest changes to franchising regulations issued by the Ministry of Trade just prior to President Widodo's inauguration on October 20. Before the latest changes, franchising regulations were covered under the following:

1. Law Number 7 of 2014 on Trade, dated March 11, 2014;
2. Government Regulation Number 42 of 2007 regarding Franchises, dated July 23, 2007;
3. Minister of Trade Regulation Number 53/MDAG/PER/9/2012 regarding Franchises, dated August 24, 2012 (MOT Regulation No. 53/MDAG/PER/8/2012);
4. Minister of Trade Regulation Number 68/MDAG/ PER/10/2012 regarding Franchises for Modern Store Business, dated October 29, 2012; and
5. Minister of Trade Regulation Number 07/MDAG/PER/2/2013 regarding Partnership Development in Franchises for the Food and Drink Service Business, dated February 14, 2013 (MOT Regulation No. 07/MDAG/PER/2/2013).

On September 17, 2014, the Ministry of Trade issued two amendments to the above regulations, as follows:

By Awang Fahrizal Bahrin Indonesia's Construction Services Development Institute (LPJK) has issued LPJK Regulation No. 5 of 2014 regarding Integrated Construction Services Registration, dated June 11, 2014 (LPJK Reg. 5/2014 or New Regulation). LPJK Reg. 5/2014 revokes LPJK Decision No. 15/KPTS/LPJKN/II/2012 regarding Procedures for the Re-Registration, Renewal of Terms, New Certificate Request of Integrated Construction Service Entities (LPJK Dec. 15/2012). Changes in New Regulation The New Regulation amends the requirements for the issuance of the Business Entity Certificate (Sertifikat Badan Usaha or SBU) for integrated construction service companies. The SBU will be issued based on the Classification and Qualification of the business entity in question, as stipulated in the New Regulation. Classification of Integrated Construction Service Companies Article 8 of LPJK Reg. 5/2014 provides the working Classifications for integrated construction services, as follows:

• Integrated services for Transportation Infrastructure;
• Integrated services for Construction of Water Supply and Sanitation Work;
• Integrated services for Construction of Manufacturing Facilities; and
• Integrated services for Construction of Oil and Gas Facilities.

Please find attached the latest Legal Alert for October 2014. The SSEK Legal Alert is a monthly survey designed to keep you up to date with the latest legal developments in Indonesia. Click here: Legal Alert October 2014

Richard D. Emmerson, a senior foreign legal advisor at SSEK Legal Consultants, has contributed the Indonesia chapter to Asia Employment Law, quarterly review of employment law developments across 15 jurisdictions in Asia. The review is designed to help legal and human resources advisors stay up to date on employment-related legal developments around Asia. In this latest edition of Asia Employment Law, Mr. Emmerson highlights a number of issues related to labor and employment law in Indonesia, including new minimum wages, the recruitment of foreign employees and training for companion employees, and national holidays and collective leave for 2015.

The Employment Law Alliance (ELA) is offering a free 90-minute webinar on Thursday, December 4, on Privacy v. the Employer’s Right to Know: Hot Issues that Straddle the Can-Am Border. Program Description Workplace privacy continues to be an important focus for employers, particularly those who operate in both Canada and the U.S. While most businesses try hard to protect their employees’ privacy and avoid getting involved in their off-duty activities, there are times when an employer is faced with the prospect of legitimately needing to look into or take into account an employee’s personal life. This webinar brings together a panel of legal experts from Canada and the U.S., who will provide practical guidance on how to successfully navigate and resolve these issues in their respective countries. They will address:

• Medical or legal marijuana – Does it change the analysis? Can employers restrict its use or presence in the workplace?
• The latest rules and development on drug and alcohol testing of employees – and whether medical drug use changes the equation.

Criminal records searches and privacy issues – Just how deeply can employers (or prospective employers) dig into an employee's background and what information is permissible to access?

Richard D. Emmerson has written an article on Discrimination Law in Indonesia for the Corporate LiveWire Expert Guide on Discrimination Law and Equality 2014. As Richard notes, Indonesia does not have an overarching anti-discrimination law. Rather, a patchwork of laws and sector-specific regulations prohibit discrimination and encourage equality. The relevant laws include:

• the 1945 Constitution
• the Labor Law (Law No. 13 of 2013 on Labor)
• Law No. 21 of 1999 and Law No. 80 of 1957
• Law No. 4 of 1997 on Disabled People and
• Law No. 40 of 2008 on the Elimination of Racial and Ethnic Discrimination.

These laws stipulate that all Indonesian shall have equal opportunity without discrimination to obtain work and shall be entitled to equal treatment from the employer without discrimination. They also cover more specific issues that all employers must be aware of such as employment background investigations, leaves of absence, harassment, privacy and union activity.

Global Business Reports has produced a comprehensive report on Indonesia's mining industry for the Energy &amp Mining Journal. The report, titled Indonesian Mining Industry in Transition: Navigating the World’s Last Great Mining Frontier, looks at developments in the sector and the prospects for future investment. The report notes that Indonesia is among the world's largest exporters of nickel, thermal coal and refined tin, but that regulatory uncertainty continues to be an issue for investors. GBR interviewed industry experts in researching the report. Among those contacted was SSEK's Michael S. Carl, who looked at the direction of investment in the mining sector and the role of foreign players. Michael advises multinationals and large domestic companies on all aspects of their operations in Indonesia's mining sector. He will be included in Who's Who Legal: Mining 2015, which identifies the leading mining lawyers in the world. Michael is recognized as a leading lawyer by Chambers Global, IFLR 1000 and Asialaw.