News & Legal Update

AMO Partnership

A.M | Oktarina Counselor At Law (“the Firm”) has the most potential and professional people working together and merging into one embodied system. One of the Firm Corporate Strategy is to engage with other potential firm and legal entity around the world: Shiftinpartners: http://www.shiftinpartners.com/ We are engaging with the Shiftin and partners to provide a comprehensive service to all of our client. This, including merge with the Firm international portfolio and the International standard which exist in the United Emirat Arab (EUA) and all around the globe where the Shiftin and partners operated. The Shiftin and Partners is one of the most well known and respective commercial and consulting firm in the World. Their main core operation shall be dealing with several market and commercial practice from: 1. Strategy Development 2. Strategy Translation 3. Risk Management 4. Initiative Management 5. Cascading and Alignment 6. Human Capital Alignment 7. Strategy Communication 8. Operational Innovation 9. Reporting Decision Making For more detail please open the above website or contact our lawyer at info@amoktarina.co and n.pasaribu@amoktarin.co  please refer to our contact section as provided under this website. #Incoming Search: Advokat Jakarta, Corporate Lawyer Jakarta, Legal Consultant Jakarta

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Establishment of Foreign Direct Investment Company or FDI/PMA

Transnational transaction around the globe has force many of the business players to establish a strong legal entity in order to build their business power. This entity may in the form of company or limited liability Company, foundation, BV, PT, CV, Legal Firm, organization, LLC, and others. This variation of form shall require a legal base line for many shareholders and or business player in order to enter the market. In Indonesia, every entrepreneur require them self to abide by the prevailing laws which commonly known as the Company Law or Act No 40 of 2007. In Indonesia, the core of law that regulates the establishment of the Company are Law No. 25 of 2007 regarding Capital Investment (hereinafter referred to as “Investment Law”), and Law No. 40 of 2007 regarding Limited Liability Company (hereinafter referred to as “Company Law”). Under the Company Law, every single person or legal entity who wish to build them self a legal company or corporation, they shall require to follow the requirements of 2 (two) shareholders at minimum. This means, that there will be 2 people or legal entity which act as the shareholders or owners. The capital injection which needs to be provided by the shareholders minimally shall be Rp. 50.000.000 (fifty million Rupiah). However this capital injection requirement does not apply should the shareholders wishes to build and established the Foreign Direct Investment Company or PMA/FDI (which in this matter considered as the foreign national legal entity, this due to foreign shareholders who reside under the company establishment). According to the Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal) any legal entity and or person who wish to build and established PMA/FDI shall require a minimum at around of $ 250.000 (two hundred fifty thousand United States Dollar). For most foreign entrepreneur, this capital injection is considered very high and creates obstacles for investment. Therefore, in order to simplify the process and bridging between the foreign investment action and the government, AM | Oktarina Lawyers has the ability to execute the most probable process for this type of foreign national licensing. For more detail, please contact our lawyer.   t #Incoming Search: Advokat Jakarta, Corporate Lawyer Jakarta, Legal Consultant Jakarta

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The Company Structure

By AM | Oktarina Lawyers: The Company structure is created based on the Law No 40 of 2007 Concerning Limited Liability Company (“Company Law”). According to this Company Law, the company organ can be established in 2 ways: 1. The establishment of the Board of Directors: According to the Company Law, the Directors can be appointed through the General Meeting of Shareholders (GMS). The GMS shall be responsible to determined who will become the Directors The Company Law and common practice by GMS provides that the Directors may be appointed for 5 consecutive years. During these years, the Directors shall be responsible for in and out of court obligation and all financial close. The Directors can be divided into 5 common titles: (i) the President Directors; (ii) the Vice President Directors; (iii) the Chief Executive Officer (CEO); (iv) Chief of Operation Officer (COO); and (v) Chief Financial Officer (CFO). The Directors is not an EMPLOYEE. According to the Company Law, the Directors are not part of the management team BUT part of the Executive level, which determined directly by the GMS. Therefore, Law No 13 of 2003 Concerning Employment (“Employment Law”) shall not apply for the Directors. Only the terms provided by GMS and the Company Law apply for the Directors. In this case, all rights reserve by the Company Law The Directors only answer to the GMS, however since the Directors has to provide a clarification once it’s needed by the Commissioner, in some cases the Directors has to answer to the Commissioner. 2. The establishment of the Board of Commissioners: Similar to the Board of the Directors, the Board of Commissioner can be appointed through the GMS and for 5 consecutive years. Commissioner only answer to the GMS The Board of Commissioner function is to provide the supervision mechanism for the Directors action. Therefore the Board of Commissioner has the authority over the Directors. In some cases, the Directors action based on the Article of Association shall require the written approval from the Board of Commissioner; ex: (i) Financing Process or borrowing money; (ii) pledging the company assets; (iii) purchasing other company assets; (iv) releasing some company assets to other third party. The Board of Commissioner shall entitled to the have Directors monthly report if required and warn the Directors should the Directors action beyond its company projected business plan Similarly apply with the Directors; the Employment Law not binds the Board of Commissioner. Only the Company Law and the GMS has authorization over the Board of Commissioner. Both, the Directors and the Board of Commissioner shall be appointed by using the amendment of the Article of Association (Deed of the Article of Association). Therefore, it is very important to determine this deed after the GMS appointment through the Circular Resolution of the GMS and register it at the Ministry of Law and Human Rights. That being said, the validity of the deed is mandatory by law and shall become a strong evidence the Directors and Board of Commissioner titles. For more detail, please contact our lawyer at info@amoktarina.co or n.pasaribu@amokatrina.

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Mr Alexander Diyakonov – Russia Legal Service

In terms of International view and service, we AM. | Oktarina Counsellors at Law has established a wide range of service which consolidate us with many professionals and lawyer around the world, one of them is Mr Alexander  Diyakonov. Acting as lawyer and professional for more than 25 years of experience in many legal issue and service, whether it’s internationally or domestic. Including but not limited to EU law and Non EU Law. My main fields of expertize are direct investments, M&A, due diligence, corporate law, securities, risk management, contract law and legal staff management as well as diverse litigations involved. In Russia I can offer to your potential clients a range of services related to some general and few special areas of law such as: Formation and maintenance of private and public companies with foreign capital  including memorandum, articles and shareholders agreements drafting, statutory registration, reporting, AGM and EGM convocation, minutes of board of directors drafting, substantial and party related transactions legal approval, maintenance of stock ledger, labor and other issues compliance. Establishment or registration of branches and  subsidiaries of foreign corporations, Diverse international and local commercial contract drafting, Including sale of goods, services,  supply contracts, franchise, lease agreements, construction contracts, shipment contracts, loan agreements, labor contracts, Tax policies engineering and consulting in view of best tax regimes applicable. M&A transactions Including the analysis of  target corporations, NDA and term sheet drafting, legal and financial due diligence, final agreement fine tuning and negotiation, financing procurement and related agreements drafting, Stock and bonds issuing with prospectus drafting, IP rights registration and transfer related transactions. IP disputes resolution and related litigations legal representation. Legal analysis in depth of potential commercial disputes in view to take a legal action and assess the reasonableness of such action, Legal representation in diverse commercial litigations , Legal representation in corporate disputes including derivative suits. Legal representation in tort legal actions, Legal representation in arbitration and alternative dispute resolution, Enforcement of court decisions and arbitral awards. Land and real estate transactions legal assistance, Staff recruiting and dismissal legal support. Commercial and corporate litigations including all sorts of disputes arising. Companies winding up and dissolution. Insolvency cases representation, Debt collection,

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Perceiving The Significance Of Maritime Labour Convention 2006

By AMO Lawyers Contributor: Noverizky Tri Putra Pasaribu S.H LL.M (Adv); Gilang Mursito Aji S.H LL.M (Adv); Maritime Labour Convention (“MLC 2006”) was established in Geneva, Swiss as a part of the International Labor Organization (“ILO”). This convention was adopted with the purpose as to make sure that the rights and needs of seafarers can be secured.  The MLC 2006 provides a set of comprehensive rights and protection at work for seafarers and aims to achieve a proper on board conditions covering various aspects, including working hours, health and safety, crew accommodation, seafarers’ welfare, and seafarers’ contractual arrangements. Another globally well-known convention regarding the maritime law is the United Nation Convention on The Law of the Sea (“UNCLOS”) which was concluded in 1982 and came into force in 1994. The UNCLOS defined the limits of the territorial seas of nations and the areas in which they could exploit the marine resources. Therefore, it did not provide any provisions regarding employment or working standards of seafarers as stipulated in MLC 2006. Although Indonesia had ratified the UNCLOS back in 1986, but this is not the case with the MLC 2006. Up until now, Indonesia has not yet become one of the Member States in MLC 2006. Nevertheless, an understanding of this Convention is of utmost importance for Indonesian seafarers, particularly for seafarers that are employed in a foreign ship. Therefore, in this article we will talk about the most important provisions of MLC 2006 that Indonesian seafarers or ship-owners have to take into consideration.   The Subject Matter of MLC 2006 1. The Requirements for Seafarers According to MLC 2006 The general mandatory requirements for seafarers to work in a ship according to MLC 2006: The minimum age for a person to be employed or engaged in a ship is 16 years old. However, a higher age requirement is needed in particular conditions such as where the work is likely to jeopardize their health or safety. In such conditions, the minimum age of the seafarers shall be 18 years old. Hold a valid medical certification issued by a duly qualified medical practitioner. This medical certification shall attest that they are medically fit to perform the duties they will carry out at the sea. The medical certificate shall be in accordance with the requirements provided in the International Convention on Standards of Training, Certificate, and Watch keeping for Seafarers 1978 as amended by the 2010 Manila Amendments (“STCW”). In addition, the persons concerned with the conduct of medical fitness examinations of seafarer candidates and serving seafarers (i.e. the competent authority, medical practitioners, examiners, and ship-owners) should follow the ILO/WHO Guidelines for Conducting Pre-sea and Periodic Medical Fitness Examinations for Seafarers, including any subsequent versions, and any other applicable guidelines published by the ILO, International Maritime Organization (“IMO”), or World Health Organization (“WHO”). Currently, the aforementioned standards are also being followed in Indonesia. Has successfully completed training and certification of competence required, particularly with regard to personal safety on board ship. This training and certification shall be in accordance with the mandatory instruments adopted by the IMO (i.e. STCW). The recruitment and placement system shall be efficient, adequate, and accountable. Moreover, it shall conform to the standards set out in MLC 2006. 2. Conditions of Employment The seafarers’ employment agreement shall be in writing and legally enforceable. Therefore, it shall be in compliance with the standards set out in the MLC 2006(i.e. it shall contain full identity of the seafarers and ship owner, the place and date of the agreement, wages, annual leave, termination conditions, health and security benefits, etc.). These standards have been duly complied by the Indonesian law (Governmental Decree of Republic Indonesia No. 7 Year 2000 concerning Seafarer/”PP no. 7 tahun 2000”). Accordingly, both parties may choose the applicable law for the seafarers’ employment agreement. However, an Indonesian Court will not recognize an agreement written in foreign language, thus it is highly advisable for Indonesian Seafarer to use Indonesian language for their employment agreement or at least it has to be made bilingually (e.g. English and Bahasa Indonesia). Seafarers shall have the freedom to enter the employment agreement. Furthermore, they shall have the opportunity to review and seek advice regarding the terms and conditions provided there. The payment of the wages shall be paid on monthly intervals basis and in accordance with minimum wage fixed by the international labour standards, which is US$614 for the basic monthly minimum wage as of 1 January 2016 (according to the Resolution of Joint Maritime Commission on 28 February 2014: http://www.ilo.org/global/about-the-ilo/newsroom/news/WCMS_236644/lang–en/index.htm). However, Indonesian Minimum Wage (based on Provincial/Regional Minimum Wage) is still far below this standard since many of the Indonesian seafarers are still being paid lower than US$400 per month. The normal working hour’s standard shall be no more than an eight-hour per day with one day of rest per week and rest on public holiday. In addition, the maximum hours of work shall be 14 hours in any 24-hour period and 72 hours in any seven-day period. Seafarers are entitled for an annual leave which subject to any collective agreement or national laws / regulations. In this respect, the annual leave with pay entitlement shall be calculated on the basis of minimum of 2.5 calendar days per month of employment. Seafarers have a right to be repatriated at no cost to themselves if the seafarers’ agreement expires while they are abroad; or when the agreement is terminated by the ship-owner or by the seafarer for justified reasons. Moreover, they are entitled to be repatriated when they are no longer able to carry on their duties in specific circumstances. Seafarers are entitled for adequate compensation in the case of injury, loss, or unemployment arising from the ship’s loss or foundering. The indemnity against unemployment for such cases may be limited to two months’ wages. Ships are required to have sufficient number of seafarers on board, taking into account the particular nature and conditions of the voyage. Member States of MLC 2006 shall

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