Business Law

Alfira Sari

Andrian Harianto

Li Wei Ye

Micha Paramitha

Zani Patria Akbar

What kind entity he has to set up in

Indonesia, and how to set up that entity?

• Temporary permission to establish PT.PMA

IICB

• Permission to build the PT.PMA

• Permanent permission to build the PT.PMA

IICB

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.

How many percent share should

he have?

Majority here means that the power in controllingthe LLC. Control of company had by the shareholdersthat hold at least 20% of shares or more. This isregulated in BAPEPAM regulations No.IX. FI aboutTender offering.

And also the regulation also was written on UU no40/2007 about Limited Liability Company (P.T)

But, in this case he needs to hold more than 50% ofshares to avoid the possibility of company taken overby the other investors.

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 )

Protection of Foreign Investor

Capital

Based on UUPM No.25/2007 Art.6,protection to foreign investor withoutdiscrimination of regions. In UUPMNo.25/2007 Art.32 to solve any disputebetween foreign investor and local investoror government by deliberation andconsensus. If it cannot be accomplished,arbitration is the alternative or bring it tothe court.

How to protect his property of

his company?

Since he is a foreign investor, he cannotown the land but he only can build abuilding for the business. The regulationshave been regulated in UUPA Art.41 and 42about Hak Guna Bangunan or HGB ( Right toBuild ).

So his rights to use or build a building isbeing protected under law. But he has aduty to the owner of land.

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

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

How to solve dispute with

employee and employee union?

There are 4 types:

1. Dispute of Rights

2. Disputes of Interest

3. Disputes Layoffs

4. Disputes between Labor Unions

There are 4 ways to solve this problem:

Mediation

Conciliation

Arbitration

Industrial Relations Court and the Supreme

Court

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).