We understand that the Foreign Corrupt Practices Act (the “FCPA”) permits facilitating payments to be made to foreign officials for routine governmental actions to expedite the performance of their duties. Such payments are generally considered as not being intended to influence the outcome of the official’s action or decision, but rather to expedite an action or decision that is already a given.
Under Law No. 13 of 2003 regarding Labor (the “Labor Law”) and other prevailing labor laws and regulations, employment-at-will and termination upon simple notice are not recognized in Indonesia. Employment terminations must follow the procedures under the Labor Law and Law No. 2 of 2004 regarding Industrial Relations Dispute Settlement (“Law No. 2″).
SSEK has assisted the Indonesian state-owned oil and natural gas corporation, Pertamina, in the transfer of 51% of Pertamina’s shares in its direct subsidiary Pertagas to another Pertamina subsidiary, PT Perusahaan Gas Negara (PGN), in a transaction valued at US$1.2 billion, as has been reported.
While there is no specific definition of shareholder activism in Indonesia, and Indonesia does not recognize shareholder activism, the Indonesian Company Law (Law No. 40 of 2007 regarding Limited Liability Companies) gives certain rights to each shareholder and minority shareholder that allow them to influence the company’s actions.