SMART ARTICLE

March 23, 2017
COMPANY-OBLIGATION-TO-STRUCTURE-AND-SCALE-EMPLOYEE-WAGES

COMPANY OBLIGATION TO STRUCTURE AND SCALE EMPLOYEE WAGES

All entrepreneurs, including Companies, which employ Employees in Indonesia have the obligation to structure and scale employee wages pursuant to the prevailing wage structure and scale […]
March 21, 2017
NEW-REGULATION-REGARDING-THE-COMPANY-REGISTRATION-CERTIFICATE-TANDA-DAFTAR-PERUSAHAAN--OR-TDP

NEW REGULATION REGARDING THE COMPANY REGISTRATION CERTIFICATE (TANDA DAFTAR PERUSAHAAN OR “TDP”)

TDP or Tanda Daftar Perusahaan(Company Registration Certificate) is a mandatory legal document signifying the official registration of a Company (PT) that has been established in Indonesia. […]
March 20, 2017
DIVESTMENT-OBLIGATION-FOR-FOREIGN-INVESTMENT-COMPANY-PT-PMA-IN-INDONESIA

DIVESTMENT OBLIGATION FOR FOREIGN INVESTMENT COMPANY (PT PMA) IN INDONESIA

Previously, all foreign investment companies in Indonesia, otherwise known as PT PMA, are required to divest part of their shares to Indonesian citizens or legal entities […]
March 16, 2017
CIRCULAR-RESOLUTION-OF-SHAREHOLDERS

CIRCULAR RESOLUTION OF SHAREHOLDERS

General Meeting of Shareholders, also known as GMS or RUPS, is the only mechanism for a Company to make certain decisions pursuant to the Company Law. […]
March 15, 2017
OBLIGATIONS-RELATED-TO-LOAN-FROM-FOREIGN-PARENT-COMPANY-TO-INDONESIAN-SUBSIDIARY

OBLIGATIONS RELATED TO LOAN FROM FOREIGN PARENT COMPANY TO INDONESIAN SUBSIDIARY

In order to finance their subsidiaries in Indonesia in the form of PT PMA, many foreign parent companies enter into loan agreements with their subsidiaries. Learn […]
March 14, 2017
PROTECTION-FOR-FEMALE-EMPLOYEES-PURSUANT-TO-THE-MANPOWER-LAWS

PROTECTION FOR FEMALE EMPLOYEES PURSUANT TO THE MANPOWER LAWS

Male and Female Employees must be treated with equality at the workplace. Pursuant to the role of women in society, as well as specific biological needs, […]
March 13, 2017
TUNJANGAN-HARI-RAYA-THR-OR-RELIGIOUS-HOLIDAY-ALLOWANCE

TUNJANGAN HARI RAYA (THR) OR RELIGIOUS HOLIDAY ALLOWANCE

Each of the official religion in Indonesia has their own Religious Holidays, which in turn is recognized by the Government. For each Religious Holidays, Companies must […]
March 10, 2017
TERMINATION-OF-EMPLOYMENT-DUE-TO-GRAVE-WRONGDOINGS

TERMINATION OF EMPLOYMENT DUE TO GRAVE WRONGDOINGS

Employee who has conducted grave wrongdoings (kesalahan berat) is allowed to be terminated from its employment. However, there are several conditions that must be fulfilled before […]
March 9, 2017
EMPLOYEE-RESIGNATION-WITHOUT-30-DAYS-NOTICE

EMPLOYEE RESIGNATION WITHOUT “30 DAYS NOTICE”

Pursuant to the prevailing laws and regulations, Employee resignation must be preceded by a 30 (thirty) days notice of such resignation. What happens if the Employee […]
March 8, 2017
HOW-TO-REDUCE-THE-EMPLOYEE-SALARY-IN-THE-EVENT-OF-DEMOTION

HOW TO REDUCE THE EMPLOYEE SALARY IN THE EVENT OF DEMOTION

Sometimes, a Company may be required to demote its Employees for a number of reasons, such as non-performance, breach of Company Regulations, and so on. In […]