NEW DIVESTMENT REQUIREMENT FOR MINING COMPANIES IN INDONESIA

On 21 February 2012, the Government issued Government Regulation No 24/2012 on the amendment to Government Regulation No. 23/2010 on the Implementation of Mineral and Coal Mining Activities (“GR 24/2012”).

SUPREME COURT DECISION AFFECTING IMPORTATION OF FINISHED GOODS BY PRODUCERS

The Supreme Court has struck down the core provisions of the Trade Minister Regulation which allowed producers to import finished goods (No. 39/M-DAG/PER/10/2010). The regulation will cease to have legal effect as of 8 May 2012

CONSTITUTIONAL COURT DECISION ON FIXED TERM EMPLOYMENT CONTRACTS UNDER OUTSOURCING

The Constitutional Court in Decision No. 27/PUU-IX/2011 (“Decision”) declared articles 65(7) and 66(2)(b) of Law No. 13 of 2003 (“Manpower Law“) conditionally unconstitutional where fixed-term employment contracts used in outsourcing arrangements do not provide a clause protecting the rights of existing workers when the principal company (work provider) switches outsourcing company or labour provider but the same work continues.

IRON AND STEEL IMPORTS

in response to changes made to the ASEAN Harmonized Tariff Nomenclature, the Government issued Minister of Trade Regulation No. 08/M-DAG/PER/2/2012 (“MOTR 8/2012”) on the Amendment to Minister of Trade Regulation No. 54/M-DAG/PER/12/2010 (“MOTR 54/2010”) on Iron and Steel Import Provisions

NEW CORPORATE SOCIAL AND ENVIRONMENTAL RESPONSIBILITY REGULATION

The Government issued Government Regulation No. 47 of 2012 on Corporate Social and Environmental Responsibility on 4 April 2012 (“GR 47”).