Legal Aspects of Technology Transfer in Indonesia

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Team of Hukumindo

Previously, the Hukumindo.com platform has talk about "Some Legal Aspects of Export-Import According to Indonesian Law" read also "How To Legally Adopt a Child in Indonesia?" and on this occasion we will discuss about Legal Aspects of Technology Transfer in Indonesia.

Understanding Technology

Technology comes from the word technologia (Greek) techno meaning 'skill' and logia meaning 'knowledge'. According to the Big Indonesian Dictionary (KBBI), the word technology means the scientific method to achieve practical goals, applied science or the entire means to provide goods needed for the survival and comfort of human life. While quoted from the Encyclopaedia Britannica (2015), technology is the application of scientific knowledge for practical purposes in human life or in changing and manipulating the human environment.[1]

Quoted from the book Waiting for the Prosperity of the Country: a collection of essays on the socio-economic development of Indonesia (2006) by Burhanuddin Abdullah, in addition, technology refers to tools and machines, the notion of technology also includes methods, processes, and ideas. Read also: Packaging of Fiber Craft Products Because in the 20th century, technology was broadly defined, namely ways or activities that allow humans to change and tamper with their environment (nature, humans, and all of their creations). With that definition, technology has included anything that humans can do to improve their lives.[2]

International Trade & Technology Transfer

The development of international trade and the free trade movement have resulted in more and more technology transfers being carried out between developed and emerging countries. Because technology transfer is closely related to intellectual property rights, especially those related to industry, then cross-country legal protection is needed.

According to M. Blakeney, the definition of technology transfer is the systematic transfer of knowledge for the processing of a product, the application of a process or the provision of technical assistance, but does not include solely the sale of goods. From this definition, the transfer of technology is only within the national scope, while from an international perspective, technology transfer occurs through transactions between the technology-owning country and the technology-receiving country. Technology transfer occurs through transactions between the country that owns the technology and the country that receives the technology.[3]

An example is the international cooperation between Indonesia and Germany, which consciously results in the transfer of technology. The cooperation in the field of science and technology that has been fostered by Germany and Indonesia is a long history in the course of history. This cooperation began when the German government established the Federal Ministry of Nuclear Affairs which later changed its name to the Federal Ministry of Education and Science. This collaboration was realized because of the well-established bilateral relationship between the two countries and the role played by B.J. Habibie, who at that time served as Minister of Research and Technology and Head of the Agency for the Assessment and Application of Technology. In addition, personally, Habibie also has a personal closeness with Germany because he studied at one of the universities in Germany.[4]

It was this cooperation in the nuclear field which later developed and became the basis for the birth of cooperation in the field of science and technology in which the scope covered in it became wider. Henceforth, nuclear development cooperation is included in the framework of cooperation in the field of science and technology. The cooperation agreement between Indonesia and Germany has been signed since March 20, 1979. This cooperation aims to conduct and develop research together.[5]

Legal Aspects of Technology Transfer in Indonesia

Agreements regarding technology transfer are basically a mere contractual relationship between the buyer and the seller. The agreement involves local parties as buyers and recipients of technology and expertise from foreign companies as sellers. In Indonesia, technology transfer agreements are subject to agreement law that generally applies, namely the Civil Code (BW), while the provisions regarding technology transfer can indirectly be found in scattered laws such as the trademark law, copyright law copyright and patent laws. And if you have any issue with this topic, contact us, feel free in 24 hours, we will be glad to help you.

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

Reference:

1. "Pengertian dan Perkembangan Teknologi", Kompas.com., Penulis : Ari Welianto, Editor : Ari Welianto, Diakses pada tanggal 11 Desember 2021, https://www.kompas.com/skola/read/2021/01/08/120000169/pengertian-dan-perkembangan-teknologi.

2. Ibid. 

3. "Legal Aspects of the Transfer of Technology to Development Countries", M. Blakeney. 1989, London Oxford: ESCPublishing. Hlm.: 135.

4. "Kerja sama Bilateral Jerman dan Indonesia Bidang Sains dan Teknologi", reviewnesia.com, diakses pada tanggal 11 Desember 2021, https://reviewnesia.com/kerja-sama-jerman-indonesia-sains-teknologi/

5. Ibid.

Some Legal Aspects of Export-Import According to Indonesian Law

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By:

Team of Hukumindo

Previously, the Hukumindo.com platform has talk about "The Role of Law in Sharia Economic Development" read also "Who's Legally Represents The Company In Indonesia?" and on this occasion we will discuss about Some Legal Aspects of Export-Import According to Indonesian Law.

Global Trade

Trade globalization is one type of economic globalization and a way (economic indicator) of implementing economic integration. At the national level, trade globalization roughly represents the proportion of all production that crosses national borders, as well as the number of jobs in countries that depend on foreign trade. At the global level, globalization of trade represents the proportion of all world production used for imports and exports between countries.[1]

International trade is a trade between countries which includes the process of export and import which is very influential on state income. International trade involves currency as a buying and selling transaction between countries and the laws used in accordance with international law. International trade can involve two or more countries with the exchange of goods or services.[2]

Indonesia's Export Leading Products 

As a country that is also involved in global trade, Indonesia has several superior products, namely:[3]

1. Shrimp (Udang), with export destination countries including: Japan, Hong Kong, China, Singapore, Malaysia, Australia, Taiwan, Thailand, South Korea, Vietnam, USA, Belgium, England, Spain, French, Canada, Dutch, Italy, Germany, Japan, Hong Kong, China, Singapore, Malaysia, Australia, Taiwan, Thailand, South Korea, Vietnam, USA, Belgium, UK, Spain, France, Canada, Netherlands, Italy, Germany;
2. Coffee (Kopi), with export destinations including: Brazil, Spain, Italy, Turkey, Argentina, USA, England, India, China, Thailand, Japan, Vietnam, Pakistan, Malaysia, Hong Kong, Sri Lanka, Bangladesh, Egypt , Iran;
3. Palm Oil (Minyak Sawit), with export destinations including: India, China, Malaysia, Pakistan, Singapore, Bangladesh, Vietnam, Jordan, Tanzania, South Africa, Egypt, Iran, Mozambique, Germany, Spain, Italy, Turkey, Russia, USA;
4. Cocoa (Kakao), with export destinations: Malaysia, Singapore, Thailand, China, India, Japan, Philippine, Taiwan, Sri Lanka, USA, Brazil, Canada, Germany, Dutch, Russia, Switzerland, Belgium, England, Mali, Malaysia, Singapore;
5. Rubber and Rubber Products (Karet dan Produk Karet), with export destinations: Japan, Malaysia, Philippine, Australia, Thailand, Singapore, Hong Kong, Taiwan, Sri Lanka, South Korea, USA, England, German, Belgium, Italy, Dutch, Canada, Saudi Arabia, Egypt;
6. Textiles & Textile Products (Textil dan Produk Textil), with export destinations:  USA, England, Germany, Panama, Italy, Canada, Mexico, Dutch, Spain, French, Japan, Australia, Singapore, Hong Kong, Sri Lanka, South Korea, Saudi Arabia, Ethiopia, Nigeria, Kenya, Tunisia, Sudan;
7. Footwear (Alas Kaki), with export destination countries: USA, Belgium, England, French, Italy, German, Mexico, Spain, Canada, Chile, Panama, Turk, Japan, Malaysia, Thailand, South Korea, Australia, China, Hong Kong;
8. Electronics (Elektronik), with export destination countries: Japan, Taiwan, South Korea, China, Malaysia, Hong Kong, Australia, Singapore, Thailand, Vietnam, German, Dutch, Italy, Belgium, Poland, USA, England, Denmark, French, Greece;
9. Motor Vehicle Components (Komponen Kendaraan Bermotor), with destination countries: USA, French, England, German, China, Malaysia, Vietnam, Australia, Hong Kong, Japan, Singapore, Thailand, Sri Lanka, India, Pakistan, Philippine, USA, Canada, Belgium, Turkey, South Africa, Iran, Saudi Arabia;
10. Furniture (Mebel), with export destination countries: USA, French, England, Dutch, Belgium, Spain, German, Italy, Canada, Denmark, Sweden, Japan, Australia, Malaysia, Singapore, South Korean, Taiwan, China, South Africa. 

Import-Export Legal Terminology

If referring to Law Number 7 of 2014 concerning Trade, there are several related terminology, including the following:[4]

• According to Article 1 number 16 of Law 7/2014: Export is the activity of removing goods from the Customs Area.
• According to: Article 1 number 17 of Law 7/2014, Exporters are individuals or institutions or business entities, whether in the form of legal entities or not legal entities that carry out exports.
• According to Article 1 number 18 of Law 7/2014: Import is the activity of entering Goods into the Customs Area.
• According to Article 1 number 19 of Law 7/2014: Importers are individuals or institutions or business entities, whether in the form of legal entities or not legal entities that carry out imports.

Some Legal Aspects

By law, the relationship between exporters (Indonesia) and importers (Country of Export Destination) in global trade is bound by an agreement as regulated in Article 1313 of the Civil Code (“KUH Perdata”) which reads as follows: "An agreement is an act in which one or more persons bind themselves to one or more other persons". From this agreement between the exporter and the importer, legal consequences arise between the parties who make the agreement covering the rights and obligations of each. [5] And if you have any issue with this topic, contact us, feel free in 24 hours, we will be glad to help you.

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

Reference:

1. "Globalisasi perdagangan", id.wikipedia.org., Diakses pada tanggal 10 Desember 2021, https://id.wikipedia.org/wiki/Globalisasi_perdagangan

2. "Perdagangan Internasional, Pengertian dan Manfaatnya", indomaritim.id., Diakses pada tanggal 10 Desember 2021, https://indomaritim.id/perdagangan-internasional-pengertian-dan-manfaatnya/

3. "Produk Unggulan Indonesia", ppei.kemendag.go.id., Diakses pada tanggal 10 Desember 2021, http://ppei.kemendag.go.id/produk-unggulan-indonesia/

4. Law Number 7 of 2014 concerning Trade.

5. Civil Code (“KUH Perdata”).

The Role of Law in Sharia Economic Development

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By:

Team of Hukumindo

Previously, the Hukumindo.com platform has talk about "How To Legally Adopt a Child in Indonesia?" read also "Who's Legally Represents The Company In Indonesia?" and on this occasion we will discuss about The Role of Law in Sharia Economic Development. 

Major Muslim Population 

The total Muslim population in Indonesia is 87.2% of the population. With this amount, Indonesia has enormous potential to develop the Islamic finance and economic sector that can contribute to achieving financial inclusion targets including the development of Islamic finance.[1] In other words, the great potential of the sharia economy is based on the majority population in Indonesia who embraces Islam.

Sharia Economic Development in Indonesia

Currently, Indonesia has risen to rank 4 out of 5 in the world in terms of developing Islamic finance after Malaysia, Saudi Arabia and the United Arab Emirates. Meanwhile, Islamic financial assets in Indonesia are ranked 7th in the world with total assets of US$99 billion.[2] According to Prof. Dr. Edy Suandi Hamid, M.Ec Chancellor of the Widya Mataram University (UWM), the development of the Islamic economy has experienced significant development although it is relatively slow compared to when it first emerged in the 1990's. The Islamic economy is mostly concentrated in the financial sector which will slow down if it is not supported by the real sector. The challenges in developing a sharia economy will be easier to overcome if there are serious efforts from all stakeholders. The Islamic Economic Community (MES) must of course be at the forefront of giving ideas and unraveling existing problems.[3]

Sharia Economic Sectors

Some of the opportunities identified as enablers in the development of Islamic finance include the growth of social finance through zakat and waqf, tokenization of sukuk, digitalization and development of Islamic Fintech, sharia financial regulation and impact investment (ESG).[4] 

"The real sector needs to be encouraged so that it goes hand in hand with the monetary sector in developing the sharia economy. The implementation of sharia economy is not only at the level of large corporations, but also at the people's economy to the bottom tier. From existing developments, including a digital-based creative economy, sharia economy does not lagging behind in its digitalization implementation,” explained the Chair of the DIY MES Expert Council--Prof. Dr. Edy Suandi Hamid, M.Ec.[5]

The Role of Law in Sharia Economic Development

To support the sharia economy and finance ecosystem, it is necessary to integrate every element that supports the sharia economy which is reflected in a strong sharia economic ecosystem. In addition, for the development of the halal industry to support the national economy, regulatory support and government incentives are needed to encourage the development of the halal industry. [6] Prof. Edy explained that steps are needed as an effort to develop the sharia economy, including building theories and policies, encouraging a strong legal umbrella, disseminating and promoting sharia economics.[7] 

 

In conclusion, the author would like to convey that behind the huge potential for Islamic economic growth in Indonesia, it is necessary to support a legal sub-system as a supporter. And if you have any issue with this topic, contact us, feel free in 24 hours, we will be glad to help you.

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

Reference:

1. "Potensi Besar Ekonomi Berbasis Syariah Indonesia", Kementerian Koordinator Bidang Perekonomian Republik Indonesia, Diakses pada tanggal 8 Desember 2021, https://ekon.go.id/publikasi/detail/2943/potensi-besar-ekonomi-berbasis-syariah-indonesia

2. Ibid.

3. "Perkembangan Ekonomi Syariah Indonesia: Perlu Akselerasi Baru", new.widyamataram.ac.id., Diakses pada tanggal 8 Desember 2021, http://new.widyamataram.ac.id/content/news/perkembangan-ekonomi-syariah-indonesia-perlu-akselerasi-baru#.Ya_-T9JBxdg

4. Op. Cit., Kementerian Koordinator Bidang Perekonomian Republik Indonesia.

5. Op. Cit., new.widyamataram.ac.id.

6. Op. Cit., Kementerian Koordinator Bidang Perekonomian Republik Indonesia.

7. Op. Cit., new.widyamataram.ac.id.

How To Legally Adopt a Child in Indonesia?

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By:

Team of Hukumindo

Previously, the Hukumindo.com platform has talk about "What Language Must Be Used In The Agreement In Indonesia?" and on this occasion we will discuss about "How To Legally Adopt a Child in Indonesia?"

Another way to become a parent is by adopting a child. Adoption is not a new thing in Indonesia because parents have been able to do it for a long time. However, not many prospective parents know the procedures and requirements for legal adoption of children according to state regulations. The following is the explanation.[1]

Child Adoption Requirements

The rules and procedures for child adoption are contained in the Indonesian Government Regulation Number: 54 of 2007 concerning The Implementation of Child Adoption. The requirements for child adoption are divided into two, for prospective parents and adopted children. The criteria for children who are allowed to be adoptive parents are:[2]

1. Not reached 18 years old;
2. The main priority is the age of the child has not reached 6 years;
3. For children aged 6-12 years, you can adopt as long as there is an urgent reason;
4. For children aged 12-18 years only for children who need special protection;
5. The child is an abandoned child or his biological parents abandon him/her;
6. The child is in the care of a family or care institution; and
7. The condition of the child requires special protection (eg.: victims of violence).

Meanwhile, the requirements for prospective parents who will adopt a child are:[3]

1. Physically and mentally healthy;
2. The minimum age is 30 years and the highest is 55 years;
3. Having the same religion as the prospective adopted child;
4. Be of good character and never receive punishment for a crime;
5. Married with a minimum of 5 years of marriage;
6. Not same-sex couples;
7. Economic and social conditions in a state of being able;
8. Obtain the consent of the child, parent or guardian;
9. Make a written statement that the adoption of a child is in the interests, welfare and protection of the child;
10. There are social reports and local social workers;
11. Have taken care of prospective adopted children for at least 6 months since the issuance of the parenting permit;
12. Obtain permission from the minister or social service office.

Quoting from the official website of the Indonesian Pediatrician Association (IDAI), it is recommended that prospective adopted children and foster parents carry out a health screening test. This test aims to see the clinical condition and from each party, both parents and children. General health screening procedures include:[4]

1. Physical examination (birthmarks, scars, or other physical defects);
2. Developmental screening;
3. Chest x-ray;
4. Complete blood count (red blood cells, antibodies to hepatitis A, B, C, syphilis, and HIV).

Meanwhile, if you are going to adopt a newborn, you should do some newborn screening. Some of the screenings such as thyroid hormone levels and hemoglobin. Don't forget to know the immunization status of the baby that your child has received.[5]

Child Adoption Procedures and Methods

The first thing that prospective parents must do is submit a letter of application to the district court where the prospective adopted child lives. The application letter must attach all the requirements that have been described previously.[6]

The second procedure, the social service officer will make a home visit and check on the economic and social conditions of the family. Checks include:[7]

1. Economic conditions;
2. Residence;
3. Acceptance from prospective adoptive siblings (if you already have children), social interactions, mental conditions, and others;
4. Financial checks need to be carried out by social workers to find out permanent work and family income.

For foreigners, there must be approval to adopt an Indonesian baby from the competent authority of the country of origin.

The third stage of the adoption of a child is when the social service agency assesses that the prospective parents are worthy, the child and the parents live together. This is a process for prospective parents and children to know and interact with each other for 6 months. The social service office will issue a Temporary Care Permit and carry out supervision and guidance during the care period.[8]

The fourth procedure for the adoption is the couple will undergo a trial in district court by presenting at least two witnesses. This process is to assess parenting patterns and interactions during the 6 month trial period between children and prospective parents.[9]

The fifth stage is the determination of the application's decision, whether the court approves it or not. If the court agrees, a decree with legal force will be issued. If the court rejects the application, the child will return to the Child Care Institution office. If the court has determined the result and the adoption process has been completed, proceed to the next procedure.[10]

The sixth procedure for the adoption is the adoptive parents need to report and submit a copy of the court order to the Ministry of Social Affairs. In addition to the Ministry of Social Affairs, foster parents also need to provide a copy to the Regency or City Population and Civil Registration Office. For prospective adopted children who come from orphanages, the foundation must have a written permission from the Minister of Social Affairs. The contents of the permit stated that the foundation had received approval in the field of child adoption activities. The process of determining the status of a foster child in court takes approximately three to four months. The stipulation from district court coincides with a substitute birth certificate which states the child's status as an adopted child of the adopting parent issued by Regency or City Population and Civil Registration Office. Neither party can cancel the adoption status. The entire process of formally adopting a child from start to finish takes approximately two years. [11] 

The process of adopting a child in Indonesia is not an easy matter, there are two decisive stages in it, the first is the process at the relevant Social Service and the second is the process of applying for adoption at the relevant District Court. Both require a lot of time and energy. And if you have any issue with this topic, contact us, feel free in 24 hours, we will be glad to help you.

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

References:

1. "Cara dan Syarat Adopsi Anak di Indonesia Sesuai Aturan yang Berlaku", hellosehat.com., diakses pada tanggal 26 November 2021, https://hellosehat.com/sehat/informasi-kesehatan/langkah-langkah-prosedur-adopsi-anak-di-indonesia/

2. Ibid.

3. Ibid.

4. Ibid.

5. Ibid.

6. Ibid.

7. Ibid.

8. Ibid.

9. Ibid.

10. Ibid.

11. Ibid.

What Language Must Be Used In The Agreement In Indonesia?

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By:

Team of Hukumindo

Previously, the Hukumindo.com platform has talk about "Who's Legally Represents The Company In Indonesia?" you may read also "How To Check The Validity of Indonesian Advocates?", "If I Get Fired, What Are My Rights According to Indonesian Law?" and on this occasion we will discuss about What Language Must Be Used In The Agreement In Indonesia?

Nowadays globalization is unavoidable. Human interaction from various parts of the world with one another has become a necessity. Including in doing business, business transactions between countries at this time are something commonplace. As a result, interaction between culture and law becomes unavoidable. On a practical level, foreign investors who wish to invest in Indonesia need a sufficient understanding of local aspects such as culture, language and laws. With an understanding of some of these aspects, it is hoped that future business activities will be smoother.

For example, when a company starts running or when it is already running, it is common practice to enter into business agreements between companies. Loan agreements with banks, raw material supplier agreements with suppliers, employment agreements with employees, and other agreements are real examples that are often carried out. When doing so, companies need sufficient knowledge of the language spoken in Indonesia and the laws that apply in such country. As the title above, on this occasion will be discussed about the law of using Indonesian language/'bahasa Indonesia' in an agreement.

Governing Law

The law related to the topic of discussion in this article is Law no. 24 of 2009 concerning the National Flag, Language, Emblem and National Anthem. Article 31 paragraph (1) and (2) Law no. 24 of 2009 concerning the National Flag, Language, Emblem and National Anthem, stipulates that:

"Indonesian language must be used in memorandums of understanding or agreements involving state institutions, government agencies of the Republic of Indonesia, Indonesian private institutions or individual Indonesian citizens."

"The memorandum of understanding or agreement as referred to in paragraph (1) involving a foreign party is also written in the foreign party's national language and/or English"

What Language Must Be Used In The Agreement In Indonesia?

Thus, the question in this article has been answered, that the agreement made by the company to carry out its business activities must use the Indonesian language/'bahasa Indonesia'. This is as regulated in Law no. 24 of 2009 concerning the National Flag, Language, Emblem and National Anthem.

As a tips, make a contract in bilingual. Make sure that you comply with the applicable laws in Indonesia and also understand the contents of the agreement that binds your company. And also, translate agreements or company documents into the required language for file. For official documents use a sworn translator. And if you have any issue with this topic, contact us, feel free in 24 hours, we will be glad to help you.

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

Reference:

1. Law no. 24 of 2009 concerning the National Flag, Language, Emblem and National Anthem.

Who's Legally Represents The Company In Indonesia?

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By:

Team of Hukumindo

Previously, the Hukumindo.com platform has talk about "What Types of Land Ownership May Company Obtain In Indonesia?" you may read also "Principles of Buying Land in Indonesia", and on this occasion we will discuss about Who's Legally Represents The Company In Indonesia?

We assume that when you make the choice to start a business in Indonesia, you understand which sectors are open or closed for foreign investment. In this article, we also assumed that you as a foreign investor have established a company in Indonesia. And to run a company, of course you need sufficient knowledge of corporate law in Indonesia. Or at least, on this precious occasion we will increase lightly your knowledge about company law in Indonesia.

Governing Law

The main sources of law governing limited liability companies in Indonesia are Law Number: 40 of 2007 Concerning Limited Liability Company. In addition, other laws are also regulated, including Law Number: 3 of 1982 concerning Compulsory Company Registration and Law Number: 11 of 2020 concerning Job Creation. Also, various implementing regulations under it.

The Company Organs In Indonesia

To answer the questions referred to in the article, we must first understand the company's organs first. There are three organs in a company, the first is the general meeting of shareholders, second is the board of directors, and the last is the board of commissioner. 

What is the General Meeting of Shareholders? As stipulated in Article 1 point 4, what is meant by General Meeting of Shareholders is the Company's Organ which has authority not given to the Board of Directors or the Board of Commissioners within the limits specified in this law and/or the articles of association.

What is a the Board of Director? As stipulated in Article 1 point 5, what is meant by the board of director is a company organ that is authorized and fully responsible for the management of the Company for the benefit of the Company, in accordance with the purposes and objectives of the Company and represents the Company, both inside and outside the court in accordance with the provisions of the articles of association.

What is a the Board of Commissioner? As stipulated in Article 1 point 6, what is meant by the board of commissioner is the Company's organ in charge of conducting general and/or specific supervision in accordance with the articles of association and providing advice to the Board of Directors. 

Who's Legally Represents The Company In Indonesia?

Then, who's legally represents the company in Indonesia? To answer this question, we must still refer to Law Number: 40 of 2007 Concerning Limited Liability Company, especially Article 1 point 5, where the board of directors is the one who legally represents the company in Indonesia, both inside and outside the court.

And as a tips, in the practice of corporate law in Indonesia, there are also rules that allow the board of directors to delegate their authority to one or several company employees for certain purposes. This provision refers to article 103, Law Number: 40 of 2007 Concerning Limited Liability Company. And if you have any issue with this topic, contact us, feel free in 24 hours, we will be glad to help you.

*) For further information please contact:

Mahmud Kusuma Advocate

Law Office

Jakarta - Indonesia.

E-mail: mahmudkusuma22@gmail.com

________________

Reference:

1. Law Number: 40 of 2007 Concerning Limited Liability Company.