The government has yet to issue regulations with regard to termination of employment specifically during the Covid-19 pandemic. Companies should, therefore, follow the regulations as stipulated under Law Number 13 of 2003 Concerning Manpower.
Multiple construction projects have been delayed or even canceled – as an impact of the pandemic. Various reasons may cause this issue, such as material and/or workforce shortages, disrupted mobilization, travel restrictions, physical distancing policy, or even suspension of all construction activities.
Following Indonesia’s Rising Stars 2020 award for Rizky Dwinanto (Partner at ADCO Law) and the NexGen Lawyers 2020 for Endah Sulastri (Associate Lawyer at ADCO Law), good news has once again come from our lawyer. Now, it comes from our Managing Partner, Dendi Adisuryo. He has been listed in the A-List: Indonesia’s Top 100 Lawyers 2020 by the Asia Business Law Journal.
The ongoing outbreak of the Coronavirus Disease 2019 (“COVID-19”) has disrupted the stability of the financial system and economic growth, which particularly include the performance and capacity of the credit. As a response to this situation, the Financial Service Authority (Otoritas Jasa Keuangan “OJK”) has issued POJK 11/20, as an effort to stimulate the affected debtors, including micro-small-and medium scale enterprises (Usaha Mikro, Kecil dan Menengah ”UMKM”).
The World Health Organization on Wednesday, March 11, 2020, declared that COVID-19 is a pandemic. Business is most likely to experience the effect. If a businessman cannot perform contractual obligations as a result of the COVID-19, force majeure clauses will be very important.
The President of the Republic of Indonesia, Joko Widodo, said that one of the important concerns in his term of office in the 2019-2024 period was to invite the DPR-RI to issue the Omnibus Law. Omnibus Law is expected to be the answer to revising overlapping laws that obstruct investment and business in Indonesia.
The government commits to realizing the ‘equitable construction sector’ by issuing Law No. 2 of 2017 on Construction Services (“Construction Law”) as a legal instrument that guides the implementation of construction services in Indonesia.
At the end of 2019, the government is more vigorous in attracting both domestic and foreign investors to invest in Indonesia. Having previously enacted a ‘tax holiday’ policy package, the government through Presidential Instruction of the Republic of Indonesia Number 7 of 2019 concerning the Acceleration of Ease of Business (Inpres 7/2019) instructs all the ministers/heads of institutions to draft regulations aimed at simplifying business licensing process and providing investment incentives for investors.
Under the Construction Law (Law No. 2 of 2017 on Construction Services), it is possible for foreign construction companies to operate their business in Indonesia with special requirements. There are several aspects to consider prior to establishing foreign construction companies in Indonesia.