Indonesia Advisory

New Company Law No 40 year 2007 - DEADLINE of CHANGE

Today is 3rd of August 2008.

Do you remember anything re the new company law issued by the government that is due in this month?

We would like to remind you one deadline due this month.

Change of Article of Association (AoA)!! due on 16th August 2008!!

Any company MUST apply the full changes stated on the article 157 (3) Law No. 40/2007.

What are the consequences if this not changed by the deadline?

As per the Law article 157 (4), if not changed and reported than the company (PT) considered being dismissed! but there are additional explanation saying that the company will not automatically being dismissed unless there are action from the District Attornew or third Party request to dismissed the company.

But after 16th August 2008, District Court can start processing and dismissing company that has not apply the changes based on request from the DA or any other parties.

Request of the AoA changes after 16th August will still be processed as per normal but expected all company has made the changes before 16th August 2008.

Hope the above useful as a reminder
visit our Jakarta Reference www.jalanjajanjakarta.blogspot.com
visit our online store www.indonesia-onlinestore.blogspot.com

Previously we are talking about Bureaucracy!, we are at second issues of the paperworks needs for living and working in Indonesia. Let us continue...

DPKK Fee (Skills and Development Fund)

When a company wants to employ expatriate, they must pay USD 100 / month per expatriate, this is administered by Ministry of Labor / Manpower and have to be paid in advance for one year of total USD 1200.
DPKK Fee must be paid as part of requirements before Work Permit approval.

For Non Directors position, foreigners' expertise must be proven (in theory) that the expertise will improve Indonesian manpower development. This must be proven that the skills can not be filled by Indonesian (to avoid unemployment of Indonesian national)

PAY ATTENTION!
Deportations of foreigners is NOT UNcommon! The most reasons of deportation can be due to simple reason of abusing the work permit, eg. if the work permit says Production Director.. BUT your business card stating Managing Director, this can be REASON of deportation for abusing work permit

TA01 Recommendation
After RPTKA been approved (as in .....Part 1), the next step is applying for TA01 Recommendation to Manpower Ministry in order to get temporary residence visa and the original of this document to be used for getting what so called VITAS (in bahasa Visa Tinggal Terbatas).

The RPTKA and TA01 Recommendation is for applying the work visa, so the family members will be under the foreigners' sponsorship who is working or having the working visa. So, Any family members who intended to work, has to apply separate working visa.

Visit the Foreign Affairs Ministry for further detail on Visa requirements in Indonesia at http://www.deplu.go.id/ or check directly to the Ministry Office:

Departemen Luar Negeri Republik Indonesia
Direktorat Informasi dan Media
Jalan Pejambon No. 6
Jakarta Pusat 10110
Indonesia
Phone : (62-21) 3813453
Fax No : (62-21) 3857316
Email : infomed@deplu.go.id

Coming up next, Legal Document to Live and Work in Indonesia PART 3