New Regulation Consolidates and Expands Shareholder Rights in Indonesian SOEs

12 May 2023 A. Introduction On 3 March 2023, the Ministry of State-Owned Enterprises (“MSOE”) issued Regulation No. PER-2/MBU/03/2023 (“Reg. 2/2023”)[1], which revokes 20 other regulations and came into force on 24 March 2023. The new regulation is part of a broader effort to streamline oversight and governance at Indonesia’s state-owned enterprises (“SOE”).…

Indonesian Gov’t Gives Employers Leeway to Cut Wage Costs Amid Global Economic Challenges

04 May 2023 Background On 8 March 2023, the Minister of Manpower issued a new regulation that allows certain export-oriented, labor-intensive enterprises to reduce employees’ working hours and/or wages in order to help them survive amid the ongoing global economic turbulence and waning worldwide demand. The new rules are set out in Minister of Manpower Regulation No. 5 of 2023 (“MoM…

Mining Ministry Expands Online Licensing to Boost Transparency

18 Apr 2023 Digitalization of the pre-existing manual system for licensing and approval at the Directorate General of Minerals and Coal (“DGMC”) had yet to be completed when the Investment Coordinating Board (“BKPM”) launched its Risk-Based Online Single Submission System (“OSS”) for business licensing and applications in 2021, followed by the issuance of Government…

Indonesian Competition Commission Rolls Out Major Overhaul of Merger Control Regime

12 Apr 2023 The Indonesian Competition Commission (“KPPU”) has issued a streamlined merger control regulation, which makes fewer mergers, consolidations and acquisitions subject to a notification requirement (particularly foreign-to-foreign ones), sets new rules on the notification process, and reduces review periods.[1] Separately, the Indonesian Government has issued a regulation that makes…

Herry Nuryanto Kurniawan (1974-2023)

10 Apr 2023 It was with grief and sorrow that we learned of the passing of our esteemed colleague at ABNR Counsellors at Law, Herry Nuryanto Kurniawan, who passed away early in the evening of Wednesday, 4 April (14 Ramadhan 1444 H), at the relatively young age of 48. Herry earned his law degree from the University of Indonesia in 1998 (class of 1993). He then joined ABNR in February 1998,…

Indonesia’s FSA Raises Registration Threshold to Encourage Private Securities Offerings

13 Mar 2023 In 2021, the Indonesian Financial Services Authority (“OJK”) increased the threshold that triggers the requirement to register and seek OJK approval for a private offering of securities. Previously, the registration threshold was IDR 1 billion (approx. USD 65,000), but this was increased to IDR 5 billion (approx. USD 327,000) under OJK Regulation No. 29/POJK.04/2021.[1]…

State Infrastructure Guarantee Agency Gets Revamp to Boost Sector’s Attractiveness to Financiers

08 Mar 2023 A. Background The Government has moved to expand the remit of its infrastructure guarantee agency in recognition of the ongoing urgent need for private-sector finance to overcome the continuing infrastructure gap in Indonesia, notwithstanding the major progress made to date under the Jokowi administration. As always, the basic problem boils down to money. The need for new infrastructure…

Indonesian Gov’t Opts for Quick Fix for “Conditionally Unconstitutional” Job Creation Law

07 Feb 2023 Background On 30 December 2022, the Indonesian Government promulgated an emergency regulation, Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation (“Perppu 2/2022”).[1] The new regulation repeals and replaces Law No. 11 of 2020 on Job Creation (“Job Creation Law” or “JCL”),[2] which was declared “conditionally unconstitutional”…

ABNR Awarded Nine Tier-1 Rankings by Legal 500, Eight More Lawyers Recognized

25 Jan 2023 ABNR’s position as a top-tier Indonesia commercial law firm has been reaffirmed by the 2023 rankings published by leading international legal directory The Legal 500 Asia Pacific on Jan 11. ABNR is now ranked as a Tier-1 firm in a total of nine practice areas: Antitrust & Competition; Aviation; Banking & Finance; Labour & Employment; Projects & Energy; Real…

IDX Launches New Economy Board to Accommodate Volatile Tech Stocks

09 Jan 2023 Introduction The Indonesian government and Indonesia Stock Exchange (“IDX”) have long been eager for more players in the country’s booming tech scene to go public. However, investor confidence has been undermined by a perceived lack of financial transparency among tech companies, while the overall performance of the IDX has been dragged down in recent months by the…