The House of Representatives is currently in the process of discussing the Draft Bill on Water Resources in response to a landmark Constitutional Court decision, specifically Decision No. 85/PUU-XI/2013, which declared Law No. 7 of 2004 on Water Resources to be null and void. The Draft Bill is aiming to update the umbrella arrangement for the management of water resources and to provide greater legal certainty for the water industry, which currently falls under the obsolete Law No. 11 of 1974 on Water. This edition of ILD will analyze the Draft Bill, which contains a total of 50 articles, and elaborate upon its key provisions, which specifically address rights over water resources, water-resource management measures, financing for water-resource management rights, the obligations and roles of communities, coordination relating to water-resource management and the investigation of water-resource related crimes.
Employers must inform their workers of any newly formulated wage schemes, structures and gradations
The taxing of multinational corporations is no easy task in this era of globalized capital, especially when national governments have to deal with corporate behemoths such as Google. However, as complicated as this issue can seem at first glance, the collection of such taxes is by no means an impossible task for Indonesias tax authorities. Taking its cue from the United Kingdoms newly enacted diverted-profits tax scheme, the Indonesian government is optimistic that it can find a new solution to the thorny question of collecting taxes from corporations such as Google in ways that don't involve forcing them to register as permanent establishments within Indonesia. Can such schemes ultimately prove effective however? This edition of ILD will address this tangled question, as Indonesia considers incorporating its own diverted-profits tax scheme into its current tax regime.
Contrary to popular expectations, transfers of ownership to Indonesia may not lead to any drastic increases in domestic employment opportunities within the mining sector
One of the most controversial draft bills in Indonesian legislative history has been incorporated into the 2017 national prioritized legislation program. Indeed, now that the Draft Bill on Tobacco has come to the attention of the general public after being officially initiated by the House of Representatives in mid-2016, the government just this week indicated its intention to suspend the Houses deliberations of the bill. Some believe that the Draft Bill is urgently needed in order to create a regulatory framework aimed at improving and boosting the national tobacco industry. However, others are of the view that the Draft Bill, in its current version at least, fails to address a number of important elements relating to the public interest, specifically health and poverty. This edition of ILD will analyze the Draft Bill and elaborate upon its key provisions.
Impacts resulting from environmental damage cannot be equated with losses involving damaged goods or other material rights
As a way of mitigating the problems associated with land scarcity, the government, working in conjunction with the private sector, is currently engaged in a land reclamation project which is aiming to create new land from the sea. However, land reclamation is an issue that remains steeped in controversy and often leads to disputes between those who are initiating a given reclamation project and the residents who are evicted in order to make way for it. This edition of Indonesian Law Digest will present an in-depth analysis of the various issues affecting land reclamation, particularly as they apply in coastal areas and on small islands.
The KPK expects corporations to ensure that none of their employees or policy makers engages in bribery in order to realize their business interests
The infamous Nine AM Case has shaken the foundations of contract law within Indonesias legal community. Through the handing down of a simple, yet direct and bold decision, the judges presiding over the Nine AM Case, from the District Court level all the way up to the Supreme Court, established that any agreements involving both Indonesian and foreign parties that do not also provide a version in Bahasa Indonesia should be annulled, as they are in violation of Article 31 of the Language Law. However, legal practitioners have argued that the underlying legal analysis as regards the Nine AM Case was not correctly implemented, as the obligation to use Bahasa Indonesia in International Commercial Agreements is considered a non-essential element and should thus not become the basis for any annulments or delegitimizations of contracts and agreements, as stipulated under Article 1320 (4) of the KUHPER. This edition of Indonesian Law Digest (ILD) will attempt to analyze this complex legal issue purely from the standpoint of legal theory, without offering any subjective opinions in relation to this issue.
Employees have the right to file objections against any ?corporate actions?