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Berita Hari Ini Indonesia

  • IMF: What about the Fragile Five Emerging Economies in 2014?

    Five emerging markets, India, Brazil, Turkey, South Africa and Indonesia, have become known to the world in 2013 as the ‘Fragile Five’, a term coined by analysts at Morgan Stanley. This term refers to those five emerging economies that were considered most vulnerable to the winding down of the US Federal Reserve’s quantitative easing program (bond-buying program) as capital inflows dried up, or, in fact reversed. The five countries were assessed as risky due to their twin fiscal and current-account deficits, slowing economic growth and high inflation.

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  • Indonesia's Preparations Start ASEAN Economic Community 78% Completed

    Indonesia's Preparations for Start ASEAN Economic Community 78% Completed

    Economic Minister Hatta Rajasa said that Indonesia's preparations for the implementation of the ASEAN Economic Community (AEC) in late 2015 are currently for 78 percent completed. The AEC aims to enhance regional economic integration among the ASEAN member states. It will transform the ASEAN region into one with free movement of goods, services, investment, and skilled labour, as well as a freer flow of capital. Most important is to develop Indonesia's infrastructure in order to foster connectivity, thus reducing logistics costs.

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Artikel Terbaru Indonesia

  • Divestment Foreign Companies (PMA) Indonesia

    Divestment Foreign Companies (PMA) Indonesia

    The obligation for foreign companies to perform a divestment of part their shares to Indonesian companies has raised already much discussion among foreign investors. Before the enactment of BKPM regulation number 5/2013 on Guidelines and Procedures on Licensing and Non-licensing of Capital Investment as amended by BPKM regulation number 12/2013 (BKPM Regulation), divestment was required for all foreign companies (PMA) in Indonesia. The new regime of the BKPM Regulation removes this obligation, even though there are still sectors in Indonesia which require foreign companies to divest, such as the mining sector.

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  • New Regulation Construction Representative Office Indonesia

    New Regulation Construction Representative Office Indonesia

    In late September, the Minister of Public Works (Minister) issued Minister Regulation number 10/PRT/M/2014 regarding Guideline Requirements for Giving Permission Foreign Construction Service Representative Office (New Regulation). The New Regulation for construction representative offices in Indonesia replaces the old Minister regulation 05/PRT/M/2011 (Old Regulation) which had a similar title. The New Regulation has become more comprehensive than the Old Regulation and in this column we will discuss the most significant changes for foreign investors.

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  • Types of Distributors and Agents in Indonesia

    Types of Distributors and Agents in Indonesia

    In Indonesia the types of distributors and agents are differentiated in agents, sole agents, sub-agents, distributors, sole distributors and sub-distributors based on Ministry of Trade Regulation number 11/M-DAG/PER/3/2006 regarding the Provisions and Procedures for the Issuance of Registration Identity of Agents or Distributors of Goods and/or Services (Trade Regulation). In this column we will explain the exact difference between the above mentioned types of distributors and agents.

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  • Establishment of Distributor or Agent in Indonesia

    Establishment of Distributor or Agent in Indonesia

    The establishment of distributor/agent can be conducted after appointment by the principal producer or supplier. Both distributor and agent are Indonesian trading companies. The distributor is acting for and on behalf of its own name based on an agreement with the principal to purchase, store, sale and market the owned/controlled goods and/or services. An agent is engaged in the marketing on behalf of the principal without doing the physical transfer of goods and/or services that are owned/controlled by the principal.

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  • Appointment Distributor or Agent in Indonesia

    Appointment Distributor or Agent in Indonesia

    A foreign investment company cannot perform any distributor or agent activities in Indonesia. To undertake such activities it must appoint a national trading company as its distributor or agent. In practice the foreign investment company (PT PMA or foreign trade representative office) acts in such case as principal supplier, which is appointed by the principal producer to appoint local distributors or agents in accordance with authority which is delegated by the principal producer.

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  • Overtime by Employees Working in Indonesia

    Overtime by Employees Working in Indonesia

    Overtime by employees in Indonesia is allowed under certain conditions. Indonesian Law Number 13 of 2003 regarding Manpower (Labor Law) and its implementing regulation in Decree of Manpower and Transmigration Minister Number 102/MEN/VI/2004 regarding Overtime and Overtime Wages (Overtime Regulation) set these conditions. Based on the foregoing, legislation employees are working overtime if the work time exceeds the seven hours per day in a six day work week, or the eight hours per day in a five day work week, or on weekly rest days, or on Indonesian public holidays.

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  • Termination Employment Agreement Indonesia: causes of termination

    Termination Employment Agreement Indonesia: causes of termination

    The causes of termination of an employment agreement are regulated in Indonesian Law number 13 of 2003 regarding Manpower (Labor Law). The employment law regulates a variety of causes of termination of an employment agreement, conducted by either the employee or employer or based on mutual agreement. The causes of termination are affecting the amount of termination compensation an employee receives from the employer. In this column we will go through all causes of termination as regulated by the Labor Law.

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  • Company Name Indonesia - Restrictions and Procedure

    Company Name Indonesia - Restrictions and Procedure

    Before a company name of a limited liability company in Indonesia - both foreign investment (PT PMA) and local investment (PT) - can be utilized, the founders must obtain an approval of the Indonesian Minister of Law and Human Rights (Minister). Without an approved company name the founders are unable to complete the establishment process of their company. The use of a company name in Indonesia is subject to certain restrictions which are regulated in Indonesian Law number 40 of 2007 (Company Law) and its implement regulations.

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  • Amendment Articles of Association Indonesia

    Amendment Articles of Association Indonesia

    An amendment to the articles of association of a limited liability company in Indonesia - a PT in case of local investment and PT PMA in case of foreign investment - must be approved by the general meeting of shareholders. Besides approval of the general meeting of shareholders, law number 40 of 2007 (Company Law) requires in certain cases also approval of the Minister of Law and Human Rights (Minister). In this column we discuss such specific amendments and we will explain the approval procedure of such amendments.

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  • Articles of Association Indonesia - Content and Requirements

    Articles of Association Indonesia – Content and Requirements

    The articles of association of an Indonesian limited liability company (a PT in case of local investment and PT PMA in case of foreign investment) are initially drafted at the establishment of the company. The articles of association form part of the deed of incorporation. In this week’s column we will discuss the provisions which regulate the content of the articles of association and other relevant requirements, which are set out in the Indonesian law number 40 of 2007 (Company Law).

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