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AMENDMENT TO MINISTER OF TRADE REGULATION NO. 27/2012 RE. GOODS IMPORTS FINALLY ISSUEDERMINATION OF TAX CRIME INVESTIGATION

Importers are likely to welcome the Minister of Trade’s (MOT) latest move in the import license saga which commenced with a Supreme Court decision of June 2011 striking down MOT Regulation No. 39 of 2010 regarding the import of finished goods by producers

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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”

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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”).

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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

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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.

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