A Critique of the Proposed National Education Policy Reform
Business Law Final Presentation - Foreign Investment in Indonesia
1. Business Law
Alfira Sari
Andrian Harianto
Li Wei Ye
Micha Paramitha
Zani Patria Akbar
2. • Temporary
permission to
establish PT.PMA
What kind entity he has to set up in
Indonesia, and how to set up that entity?
IICB
• Permission to
build the PT.PMA
• Permanent
permission to
build the PT.PMA
IICB
3. How many percent share should
he have?
When he decides to make PT, it means that
he will not be the one who own the
company because the share will be issued
to the public.
If he wants to has control over the
company, he need to hold the most of
shares, that means that he should be the
majority shareholder.
4. How many percent share should
he have?
Majority here means that the power in controlling
the LLC. Control of company had by the shareholders
that hold at least 20% of shares or more. This is
regulated in BAPEPAM regulations No.IX. FI about
Tender offering.
And also the regulation also was written on UU no
40/2007 about Limited Liability Company (P.T)
But, in this case he needs to hold more than 50% of
shares to avoid the possibility of company taken over
by the other investors.
5. How to protect his property of
his company?
Car industry is very competitive, so
every single invention in technology
should be protected.
After he proposes the patents to Director
General and it is being announced,
means that his intellectual property have
been protected under law. ( UU no 14,
2001 about patents )
6. Protection of Foreign Investor
Capital
Based on UUPM No.25/2007 Art.6,
protection to foreign investor without
discrimination of regions. In UUPM
No.25/2007 Art.32 to solve any dispute
between foreign investor and local investor
or government by deliberation and
consensus. If it cannot be accomplished,
arbitration is the alternative or bring it to
the court.
7. How to protect his property of
his company?
Since he is a foreign investor, he cannot
own the land but he only can build a
building for the business. The regulations
have been regulated in UUPA Art.41 and 42
about Hak Guna Bangunan or HGB ( Right to
Build ).
So his rights to use or build a building is
being protected under law. But he has a
duty to the owner of land.
8. 4. How about the employment?
• Mature. Accordance with UU is 21 Years old
• Can be both Indonesian and foreigner. Foreign
workers can be employed only for certain position
and certain time
• Labor must be paid based on UMR
• The wage for those who can’t work because some
reason, it will be paid based on UU 13/2003 ps. 93
(3)
• Labor allowed to create labor union
9. Prohibitions
• Prohibit to employ the female labor in the pregnant
condition at night shift
• No discrimination (gender, RAS, etc)
Terms and Conditions
• For female labor that work in the morning (23.00-
07.00) should be given nutritious food and safety while
at work
• For labor that come and go for work between 23.00-
05.00 should be given shuttle transport facilities
• Overtime work is only allowed for 3 hours/day or
14hours in a week
10. How to solve dispute with
employee and employee union?
There are 4 ways to solve this problem:
Mediation
Conciliation
Arbitration
There are 4 types:
1. Dispute of Rights
2. Disputes of Interest
3. Disputes Layoffs
4. Disputes between Labor Unions
Industrial Relations Court and the Supreme
Court
11. How to solve up dispute with
government of republic
Indonesia?
• Conciliation is set forth in Chapter Three of
the ICSID Convention and the Rules of
Procedure for Conciliation Proceedings
(Conciliation Rules).
• Arbitration is set forth in Chapter Four of the
ICSID Convention and Rules of Procedure for
Arbitration Proceedings (Arbitration Rules).