Highlights
Summary and key takeaways of current issues
Summary and key takeaways of current issues
COVID 19 as Force Majeure Event, does it matter?
With the issuance of Presidential Decree number 12 year 2020, Indonesia has officially determine COVID19 as a National Disaster. With this decree, obviously any party that engages in a contract that states national disaster as a Force Majeure event will have a strong basis to propose a force majeure in relation to the fulfillment of obligation under the respective contract.
Additionally, there are a lot of other issues that also provides a strong basis for COVID19 as a Force Majeure event. However, we are under the opinion that instead of arguing whether COVID19 is a Force Majeure or not, parties should acknowledge that the current situation shall have consequences towards the performance of contract. Should the Parties agrees to acknowledge that, the next step is to determine whether a performance of contract is still possible or not.
Where performance of contract is still possible, consider taking the steps as elaborated here
Oil and Gas Companies commitment to help
Oil and Gas Companies are committed to help the fight against coronavirus in the middle of oil price crash. Here are the following examples on how the so-called supermajor are contributing to the cause.
Oil and Gas Companies are committed to help the fight against coronavirus in the middle of oil price crash. Here are the following examples on how the so-called supermajor are contributing to the cause.
Use of Indonesian Language in Agreement
In September 2019, President of Republic of Indonesia issued Presidential Regulation No. 63 year 2019 on the Use of Indonesian Language (“Perpres 63”). We note that:
1. Indonesian language must be used. Foreign language or English language can be used when the agreement involves foreign parties;
2. However, Perpres 63 does not provide any explanation or interpretation of the phrase “involves foreign parties”. There is also no definition of “foreign parties”.
3. Prevailing language / governing language in the agreement where foreign parties are involved shall be agreed upon by the Parties in the agreement.
For further information on the use of Indonesian language in Agreements, feel free to contact us at [email protected]
In September 2019, President of Republic of Indonesia issued Presidential Regulation No. 63 year 2019 on the Use of Indonesian Language (“Perpres 63”). We note that:
1. Indonesian language must be used. Foreign language or English language can be used when the agreement involves foreign parties;
2. However, Perpres 63 does not provide any explanation or interpretation of the phrase “involves foreign parties”. There is also no definition of “foreign parties”.
3. Prevailing language / governing language in the agreement where foreign parties are involved shall be agreed upon by the Parties in the agreement.
For further information on the use of Indonesian language in Agreements, feel free to contact us at [email protected]
New version of Incoterms
As per 1 January 2020, the new Incoterms 2020 shall be effective. The previous Incoterms 2010 shall remain valid for contracts that are entered before 1 January 2020.
As per 1 January 2020, the new Incoterms 2020 shall be effective. The previous Incoterms 2010 shall remain valid for contracts that are entered before 1 January 2020.
We produce Insights and Updates which contained the latest important issues in relation with business world in general as well as particular issues within specific industries.
Insights
Analysis on current issues
Neraca Gas Indonesia 2020-2030, defisit pasokan mulai tahun 2023
(Bahasa Indonesia)
Berdasarkan Neraca Gas Indonesia 2020-2030, Existing Supply gas Indonesia yang merupakan produksi gas bumi yang saat ini sudah berjalan tidak dapat memenuhi Contracted Demand dan pasokan akan defisit mulai tahun 2023. Silahkan membaca lebih lanjut tentang Neraca Gas Indonesia 2020-2030 disini,
(Bahasa Indonesia)
Berdasarkan Neraca Gas Indonesia 2020-2030, Existing Supply gas Indonesia yang merupakan produksi gas bumi yang saat ini sudah berjalan tidak dapat memenuhi Contracted Demand dan pasokan akan defisit mulai tahun 2023. Silahkan membaca lebih lanjut tentang Neraca Gas Indonesia 2020-2030 disini,
New Termination Payment Formula
The new formula on Termination Payment still raise so many issues to be discussed. This new formula is governed under Government Regulation No. 35 year 2021 on Definite Period Employment Agreements, Outsourcing, Working and Resting Hours and Termination of Employment ("Regulation 35"). The main question is: does the new formula applied to current employment relationship? Does the current employee will receive lower payment when he/she is being terminated? To address this issue, we have prepare our client insight
Online Arbitration in Indonesia
Dispute Settlement via arbitration in Indonesia can now be conducted online/electronically based on the new regulation by Indonesia National Arbitration Board – Badan Arbitrase Nasional Indonesia (“BANI”). We recommend that you revise any contracts with dispute settlement clause that choose BANI for its forum to accommodate electronic arbitration procedure. Reasoning for the recommendation is provided in the attached Client Insight.
Refineries in Indonesia
We compose a summary on the existing refineries in Indonesia and the RDMP as well as GRR projects currently underway.
Updates
Regulation updates in Indonesia
Construction
Government Regulation Number 22 year 2020 on Implementation of Law Number 2 year 2017 on Construction Services.
GR 22 aims to increase a good business environment for construction services by promoting transparency, healthy business competition and guarantee on the same-level playing field for the players in the construction services. With GR 22, the government simplifies all scheme and regulation of construction services with a regulation regime that will not burden the construction services players. GR22 shall provide better construction services policy and uplift professionalism and performance.
pp_nomor_22_tahun_2020.pdf | |
File Size: | 6757 kb |
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Telecommunication
Government Regulation No. 71 year 2019.
The Indonesian government is committed to support the growth of digital economy. While at the same time maintaining the sovereignty of electronic information within the territory of the Indonesian Republic, it is necessary for a wholistic approach in governing the use of information technology and electronic transaction.
Having these things in mind, the Indonesian government issue a new Government Regulation on the Operation of Electronic System and Transaction. Below is the Indonesian language version of the respective Government Regulation.
pp_nomor_71_tahun_2019_tentang_penyelenggaraan_sistem_dan_transaksi_elektronik_-.pdf | |
File Size: | 5043 kb |
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