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Indonesia's Financial Services Authority has introduced a new concept, known as Primary Parties in Non-Banking Finance Institutions, along with certain requirements that such Primary Parties must fulfill. Primary Parties, according to recent OJK regulations, are those who manage or supervise and have significant influence over Non-Banking Finance Institutions, i.e. insurance companies, pension funds, finance companies, and credit guarantee companies.
SSEK Legal Consultants acted as Indonesian counsel to Woori Bank of South Korea in its purchase of a 33 percent stake in Indonesia's Bank Himpunan Saudara 1906 for 713.1 billion Rupiah, about US$60 million. Securing approval from Indonesia's central bank, Bank Indonesia, for the purchase took about 18 months amid an evolving regulatory environment for bank acquisitions in the country.
Indrawan Dwi Yuriutomo, a senior associate at SSEK Legal Consultants and an employment law specialist, is participating in the 2nd Annual Indonesia HR & Employment Law Executive Program organized by Clariden Global.
Starting this year, companies in Indonesia are required to register employees in the Indonesian Government's health and employment social security programs. This is part of an effort by the Government to expand social security benefits to more of the population, but questions remain about the implementation of the new programs and their effect on business.
Indonesia's House of Representatives recently passed into law the trade bill. There are several points of the new Trade Law in particular that should be highlighted and could affect companies in Indonesia. These points are related to (i) domestic and international trade activities, (ii) labeling, (iii) the standardization of trade goods, (iv) e-commerce transactions, (v) international trade security for exports and imports, (vi) export business facilities, (vii) warehouse registration, and (viii) the requirement for business service providers to have competent technical personnel.
After a long and contentious discussion involving many interested parties, the Government of Indonesia issued a regulation that bans the export of raw minerals/ores. Government Regulation No. 1 of 2014 was issued on January 11th, 2014, one day before the deadline for the domestic processing and refining of raw minerals/ores as mandated by the 2009 Mining Law.
SSEK Legal Consultants was again ranked as one of the best firms in Indonesia in the 2014 Chambers Asia-Pacific guide to the region's leading firms and lawyers. SSEK was recognized in all the major practice areas, including in the key practice areas of Corporate/M&A and Real Estate, where SSEK received the highest ranking.
The Indonesian Minister of Manpower and Transmigration ("MOMT") has issued MOMT Regulation No. 12 of 2013 regarding Procedures for Employing Foreign Manpower. This new regulation contemplates several changes to the previous 2008 regulation and introduces a useful new mechanism on the temporary hiring of foreign workers.
In its latest Indonesian Economic Quarterly report, the World Bank projects slowing growth in 2014 and says that risk remains high. To counter slowing growth, according to the report, additional and more focused policy responses are needed.
