Publications

Indonesia Air Transport 2015

Title: Air Transport 2015
Publisher: Getting The Deal Through

 

 

1. Which bodies regulate aviation in your country, under what basic laws?

The basic law governing aviation is laid down by the parliament, currently through Law No. 1 of 2009 on Aviation (the Aviation Law). The Aviation Law authorises the Ministry of Transport (MoT) to cover not only further implementing regulations but also control and supervision.

2. How is air transport regulated in terms of safety?

Air transport safety is regulated by the MoT in accordance with international standards. Strict requirements are mandated by the MoT as to the airworthiness and operations of aircraft, qualification as aircraft operators, airport standards, safe flight operation zones, maintenance of aircraft, technical and operational requirements for flight navigation services (air traffic control), and for the granting licensing schemes for pilots, crew, ground staff, flight procedure design and air traffic controllers.

3. What safety regulation is provided for air operations that do not constitute public or commercial transport and how is the distinction made?

Private operators are subject to regulations that in most respects are identical to the regulations applicable to airlines.

The Technology, Media and Telecommunications Review

Title: The Technology, Media and Telecommunications Review
Publisher: Law Business Research

 

The Indonesian government acknowledges the need for legislative reforms. Convergence will potentially bring about a reshaping of the existing regulatory framework and will, as
necessary, see the enactment of new regulations covering issues yet to be regulated.

The 2007–11 Government Work Program accommodates wide-ranging legislative reforms to the licensing regime to cover:

  1. content, carrier and network licences;
  2. restructuring of frequency allocation;
  3. the introduction of bandwidth-based fees for use of the radio spectrum; and
  4. strengthening of competition safeguards and local industries.

The government and the House of Representatives have included a Convergence Bill in the 2010–14 national legislative programme. In welcoming the digital era, in July 2011
the government introduced a draft of the Minister of Communications and Information Technology Regulation on the Implementation of Free-to-Air Fixed Terrestrial Digital Television Broadcasting, in which a distinction of broadcasting operators between broadcasting programme operators and multiplexing broadcasting operators was initiated.

In line with developments in the sector, in an effort to develop domestic industries and revive efforts to empower the local telecommunications industry, the government is now focusing on the fulfilment of local content for the operation of the telecommunication business. Guidelines on the evaluation of local content level from capital expenditures (capex) and operational expenditures (opex) were issued to support this programme.

Indonesia Construction 2015

Title: Construction 2015
Publisher: Getting The Deal Through

                                                                       

                                                                       

                                                                       

1 Foreign pursuit of the local market

If a foreign designer or contractor wanted to set up an operation to pursue the local market, what are the key concerns they should consider before taking such a step?

First, the foreign contractor will have to decide which business vehicle to adopt in Indonesia. Basically, according to the construction laws there are two business vehicles that can be considered by a foreign contractor: establishing a local limited liability company (known as a foreign investment company or ‘PT PMA’), or establishing a representative office (RO).

In relation to the first model, investors usually have to deal with the following issues:

  • obligation to find a local partner for establishing a PT PMA company, which shall own a minimum of 33 per cent of shares in the company. There is an exception for establishing a PT PMA in the business of engineering, procurement and construction (EPC) for the energy and mineral sectors, where the maximum foreign ownership is raised to 95 per cent;
  • obligation to meet a minimum investment value of more than 10 billion rupiah or its equivalent value in US dollars;
  • time constraints and a long process for establishing a PT PMA, including the process for obtaining contractor certifications, business licences (IUJK) and other necessary general licences for the operation of the PT PMA.

Indonesia Air Transport 2014

Title: Air Transport 2014
Publisher: Getting The Deal Through

General

1. Which bodies regulate aviation in your country, under what basic laws?

The basic law governing aviation is laid down by parliament, currently through Law No. 1 of 2009 on Aviation (the Aviation Law). The Aviation Law authorises the Ministry of Transport (MoT) to cover not only further implementing regulations but also control and supervision.

Regulation of aviation operations

2. How is air transport regulated in terms of safety? Air transport safety is regulated by the MoT in accordance with international standards. Strict requirements are mandated by the MoT as to the airworthiness of aircraft, qualification as aircraft operators, airport standards, safe flight operation zones, maintenance of aircraft, technical and operational requirements for flight navigation services (air traffic control), and granting licensing schemes for pilots, crew, ground staff, flight procedure design and air traffic controllers.

3. What safety regulation is provided for air operations that do not constitute public or commercial transport, and how is the distinction made? Private operators are subject to regulations that in most respects are identical to the regulations applicable to airlines.

Indonesia Corporate Governance 2014

Title: The Corporate Governance 2014
Publisher: Getting The Deal Through

Primary sources of law, regulation and practice
What are the primary sources of law, regulation and practice relating to corporate governance?

The primary policy relating to corporate governance in Indonesia is generally set out in Law No. 40 of 2007 regarding Limited Liability Companies (Company Law). The Company Law is the main legislative corporate governance source that regulates the establishment of a company, the management and governance of a company, shareholder rights and meetings, major corporate actions and the dissolution and liquidation of companies.

In addition to the Company Law, there are numbers of sectoral regulations which establish good corporate governance in specific areas. Law No. 8 of 1995 regarding Securities (Securities Law) and its implementing regulations as well as the regulations issued by the Indonesian Stock Exchange (IDX) play an important role in regulating the governance of listed and public companies. In the banking sector, specific corporate governance regulations for both conventional banks and shariah or Islamic banks exist. The sets of rules are elaborated in Law No. 7 of 1992, as amended by Law No. 10 of 1998, regarding Banking, and Law No. 21 of 2008 regarding Shariah Banking and its implementing regulations. In a recent development, good corporate governance has also been enforced in the state-owned enterprises area. Minister of State-Owned Enterprises Regulation No. 01/ MBU/2011 regarding Applying the Practice of Good Corporate Governance for State-Owned Enterprises, as amended by Minister of State-Owned Enterprises Regulation No. 09/MBU/2012 regarding Applying the Practice of Good Corporate Governance for State-Owned Enterprises, serves as the source for state-owned enterprises to realise the principles of good corporate governance in connection with conflicts of interest, risk management, internal control systems and the requirement for audit committees, independent commissioners and a corporate secretary.

There are two specific non-statutory corporate governance sources supplementing the mandatory regulations:

  • the Manual of Good Corporate Governance issued by the National Committee for Governance Policies (KNKG); and
  • the Indonesian Corporate Governance Manual issued by the Financial Services Authority (FSA).