INDONESIA'S NEW OUTSOURCING REQUIREMENTS

Outsourcing of both work and employees has become increasingly popular in recent years in Indonesia as businesses feel the effect of high severance and retirement payments and the potential problems and difficulties in employment termination.

BP MIGAS DECLARED UNCONSTITUTIONAL BY CONSTITUTIONAL COURT

The Constitutional Court (“MK”) has struck down several articles in the Oil and Gas Law related to BPMigas’ establishment and duties. The MK recommended in its judgment that BPMigas’ duties and functions be performed by the Minister of Energy and Mineral Resources while waiting for the promulgation of replacement laws and regulations.

INDONESIAN MERGER REGIME: MINOR CHANGES AND INTRODUCTION OF REMEDIES

On 27 August 2012, the Indonesian Business Competition Supervisory Commission (KPPU) issued KPPU Regulation No. 3 of 2012, amending its merger control guide for the second time, replacing the operative provisions of the previous regulation entirely.

AMENDMENT TO TRADE MINISTER REGULATION NO. 27/2012 RE. GOODS IMPORTS IS FINALLY ISSUED

The key change in the amendment is found in the broader scope of “special relationship”, used to exempt API-P holders from the restrictions on importing industrial products with the view to reselling them in Indonesia and API-U holders from the restrictions on importing products under more than one section of the HS Code.

INDONESIA'S M&A NOTIFICATION REGIME

Over a decade has now passed since the passage of Indonesia’s Anti-Monopoly Law (“AML”) in 1999. After a slow start, the Indonesian Business Competition Supervisory Commission (“KPPU”) has now become a significant feature of the Indonesian business landscape, taking a more active role particularly since 2009, in which year it issued a spate of interpretive guides to the AML. In July 2010, the Indonesian Government issued the long-awaited Government Regulation No. 57 of 2010 (“GR 57”), which enlivened the merger control provisions in Article 29 of the AML, which until then had been dormant.