The Government Amends Investment List: Is this Latest Cut the Deepest?

24 Jun 2021 On May 25, the government issued an updated investment list as Presidential Regulation No. 49 of 2021 (“PR 49/2021”), which amends “PR 10/2021”, published in February this year. For further details on PR No. 10/2021, please refer to our update here. PR 49/2021 is focused on foreign investment restrictions on the drinks industry, such as Alcoholic Beverages…

‘Omnibus Law’ Manpower Regulation Turns Out to Be Mixed Bag for Indonesia’s Employers

21 Jun 2021 February 2021 saw the issuance of a raft of new government regulations to give effect to the reformist Job Creation Law (colloquially known as the Omnibus Law), which entered into force on 2 November 2020. In this ABNR legal update, we discuss Government Regulation No. 35 of 2021 on Fixed-term Employment Contracts, Outsourcing, Working Hours and Rest Entitlements, and Termination of Employment.…

Prof. Mardjono Reksodiputro (1937 to 2021)

22 May 2021 It was with profound grief and sorrow that we learned of the untimely passing of our esteemed colleague and founding member of ABNR Counsellors at Law, Prof. Mardjono Reksodiputro, who passed away peacefully in the early hours of Friday morning at the age of 84. Known for his unimpeachable integrity and his selfless contributions to society as a scholar, teacher, mentor, leader, and…

New ‘Omnibus Law’ Regulation Makes Significant Changes to Indonesian Land Law Regime

18 May 2021 February 2021 saw the issuance of a raft of new Government Regulations to give effect to the reformist Job Creation Law (known colloquially as the Omnibus Law),[1] which entered into force on 2 November 2020. In this ABNR legal update, we discuss some of the notable items under Government Regulation No. 18 of 2021 on Land Management Rights, Land Titles, Apartment Units, and Land Registration.…

New BPKM Rules to Require PMA Companies to Have IDR 10 Billion in Paid-up Capital: Will Existing Investors Be Affected?

11 May 2021 The Investment Coordinating Board (Badan Koordinasi Penanaman Modal / “BKPM”) recently issued Regulation No. 4 of 2021 on Guidelines and Procedures for Risk-Based Licensing and Investment Facilities (“Reg. 4”),[1] which requires a foreign direct investment company (“PMA”) to have at least IDR 10 billion[2] in issued and paid-up capital (previously, IDR 2.5…

Omnibus Law Regulation Relaxes Indonesias Spatial Planning Rules for Investors

15 Apr 2021 February 2021 saw the issuance of a raft of new government regulations to give effect to the reformist Job Creation Law (known colloquially as the Omnibus Law), which entered into force on 2 November 2020. In this ABNR legal update, we discuss Government Regulation No. 21 of 2021 on Spatial Planning. In line with one of the key aims of the Omnibus Law[1] – greater efficiency and…

Indonesias FSA Launches Revamp of Capital Markets Rules, Including First Ever Code for Voluntary Corporate Privatizations

01 Apr 2021 After the passage of more than 15 years since its last major overhaul of capital-markets rules, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) has issued an important new instrument that updates the requirements and procedures that regulate the organization, governance, and activities of (i) capital-market institutions and support professions, and (ii)…

After Five-Year Hiatus, Indonesian Competition Commission Imposes Fine for Late Merger Notification of Foreign-to-Foreign Transaction

26 Mar 2021 On 4 March 2021, the Indonesian Competition Commission (“KPPU”) fined Travel Circle International (Mauritius) Ltd. (the “Notifying Party”) IDR 1 billion (approx. USD 70,000[1]). This was due to the company’s failure to notify its foreign-to-foreign acquisition of shares in Asian Trails Holding Ltd. to the KPPU within the prescribed 30-business-day post-closing…

Omnibus Law Regulation on Indonesias Energy and Mining Sectors to Boost Coal Processing but Also Raises Questions

24 Mar 2021 February 2021 saw the issuance of a raft of new government regulations to give effect to the reformist Job Creation Law (colloquially known as the Omnibus Law), which entered into force on 2 November 2020. In this ABNR legal update, we discuss Government Regulation No. 25 of 2021 on the Energy and Mineral Sectors. The government has issued a new regulation to give effect to the provisions…

Indonesian Govt Resists Temptation to Burden Employers with Full Cost of New Unemployment Scheme

18 Mar 2021 February 2021 saw the issuance of a raft of new government regulations to give effect to the reformist Job Creation Law (colloquially, the Omnibus Law), which entered into force on 2 November 2020. In this ABNR legal update, we discuss Government Regulation No. 37 of 2021 on the Job Loss Security Program. In what some see as a “sweetener” to persuade labor unions to accept…

New Omnibus Law Regulation on Indonesias National Strategic Projects Expands Availability of State Guarantees

17 Mar 2021 February 2021 saw the issuance of a raft of new government regulations to give effect to the reformist Job Creation Law (colloquially known as the Omnibus Law), which entered into force on 2 November 2020. In this ABNR legal update, we discuss Government Regulation No. 42 of 2021 on the Facilitation of National Strategic Projects. The Indonesian government is hoping to maintain momentum…

New Omnibus Law Regulation to Increase Supervision of Indonesias Manufacturing Sector

08 Mar 2021 February 2021 saw the issuance of a raft of new Government Regulations to give effect to the reformist Job Creation Law (colloquially known as the Omnibus Law),[1] which entered into force on 2 November 2020. In this ABNR legal update, we discuss Government Regulation No. 28 of 2021 on the Industry Sector. Despite decades of concerted promotion of industrial development, Indonesia’s…

New Omnibus Law Regulation Revisits Indonesias Long-running Project Land Acquisition Issue

05 Mar 2021 February 2021 saw the issuance of a raft of new Government Regulations to give effect to the reformist Job Creation Law (colloquially, the Omnibus Law),[1] which entered into force on 2 November 2020. In this ABNR legal update, we discuss Government Regulation No. 19 of 2021 on Land Acquisition for Development in the Public Interest. One of the key issues that has traditionally hampered…

Indonesias Electronic Land Registration to Boost Ease of Doing Business and Enhance Legal Certainty

04 Mar 2021 The National Land Agency (Badan Pertanahan Nasional/ “BPN”, Indonesia’s national land registry) is currently in the process of rolling out a raft of new electronic-based land and title registration services. Initially, in 2020, BPN commenced the digitization and integration of 3 formerly conventional services: electronic charge/mortgage registration (abbreviated…

Little Change for Indonesias Rail Sector under New Omnibus Law Regulation

03 Mar 2021 Despite significant ongoing deregulation in some other key sectors, a recently issued government regulation makes it clear that there are to be no major changes to the basic licensing and regulatory regime in the rail sector -- business, construction and operating licenses will continue to be required for businesses in the rail infrastructure field, while business and operating licenses will…

New Omnibus Law Regulation More a Big Tweak than Big Bang for Indonesias Trade, Retail & Distribution Sectors

03 Mar 2021 February 2021 saw the issuance of a raft of new Government Regulations to give effect to the reformist Job Creation Law (colloquially, the “Omnibus Law”), which entered into force on 2 November 2020. In this ABNR legal update, we discuss Government Regulation No. 29 of 2021 on the Trade Sector. As the largest economy in Southeast Asia and with a rapidly growing middle class…

Indonesian Govt Shows Support for Labor-intensive Sectors by Giving Nod to Wage Cuts

01 Mar 2021 The Ministry of Manpower (MOM) has thrown its support behind labor-intensive industries hit hard by Covid-19 by issuing a new regulation that smooths the way for eligible businesses to temporarily cut employee wages. While any decision on wage cuts (or indeed, wage increases) is a matter for employer and employee under Indonesian law, the regulation will nevertheless help to clarify the legal…

Major Liberalization of FDI Rules Heralds New Paradigm in Indonesia

24 Feb 2021 Acting on the mandate provided by Law No. 25 of 2007 on Investment (the “Investment Law”), as amended by Law No. 11 of 2020 on Job Creation (the “Job Creation Law”), the Government of Indonesia has issued a new implementing regulation for the Investment Law: Presidential Regulation No. 10 of 2021 on Investment and Business Lines(the “New List”). …

Indonesias FSA Tightens Up Its Supervision of Finance Companies

23 Feb 2021 1. Introduction The Financial Services Authority (“OJK”) issued Regulation No. 47/POJK.05/2020 of 2020 on Business Licensing and Institutional Aspects of Finance Companies and Sharia Financing Companies (the “New Regulation”)[1] in November 2020. This seeks to increase industry competitiveness and support the development of conventional and sharia finance companies…

Indonesias New State Investment Fund Likely to Be Up and Running Soon

23 Feb 2021 The Indonesian Government is pushing ahead quickly with its plans to bridge the gaps in existing infrastructure financing sources through the setting up of a new state investment fund known as the Indonesia Investment Authority (abbreviated in Bahasa Indonesia as “INA”). The fund, whose establishment is mandated by Government Regulation No. 74 of 2020 (“Regulation 74”)…

Indonesias Ratification of Apostille Convention Should Boost Ease of Doing Business

16 Feb 2021 After almost sixty years since its adoption, Indonesia finally ratified the Convention to Abolish the Requirement for Legalisation of Foreign Public Documents (the “Convention”) via Presidential Regulation No. 2 of 2021 (“PR 2/2021”), on 4 January 2021. The ratification sends a positive signal to Indonesia’s legal community in particular amid the Covid-19 pandemic;…

Indonesian Competition Law: Draft Govt Regulation to Introduce Profit / Turnover-based Fines

15 Feb 2021 As reported in an earlier competition law update, the reformist Job Creation Law (“JCL”), which was enacted on 3 November 2020, gives the Commercial Courts jurisdiction in appeals against decisions of the Indonesian Competition Commission (“KPPU”) and overhauls sanctions that may be imposed by the KPPU on violation of the Indonesian Competition Law (“ICL”).…

After Period of Confusion, IDERA Protection in Indonesia Now Extends to Offshore Lenders

11 Feb 2021 With the aviation industry around the world continuing to reel from the impact of COVID-19, many airlines are struggling to meet their obligations under aircraft leasing and financing agreements. Given the current uncertainties, in this ABNR Legal Update we look at the position in Indonesia as regards a key protection for creditors under the Cape Town Convention (CTC), namely, the IDERA mechanism…

Indonesian Central Bank Regulation Introduces New FDI Restrictions in Payments Sector

11 Feb 2021 Shortly before the New Year, Indonesia’s central bank, Bank Indonesia (“BI”), issued Regulation No. 22/23/PBI 2020 on payment systems (the “Regulation”), which stipulates a reduction in the level of foreign participation permitted in payment system operators. The new provision will have an impact on businesses providing remittance, payment gateway, acquiring, and…

ABNR Ranked as Tier-1 Firm for 11 Practice Areas by Legal 500 Asia Pacific

04 Feb 2021 ABNR’s position as one of Indonesia’s top-3 law firms has been confirmed by the latest edition of Legal 500 Asia Pacific, which accords 11 Tier-1 rankings to ABNR this year, making us one of just three Indonesian law firms ranked as Tier-1 firms for so many practice areas. No other Indonesian firms are ranked so highly. ABNR’s top-tier recognitions are for: Competition,…

ABNR Recognized as Global Top-100 Firm for Cross-border Restructuring & Insolvency by GRR

29 Jan 2021 ABNR has once again been recognized as one of the world’s top 100 law firms for cross-border restructuring & insolvency work by specialist international legal publication Global Restructuring Review (GRR). ABNR is one of only two Indonesian law firms to be so recognized. The full GRR 100 is available at https://globalrestructuringreview.com/survey/grr-100/2020 This latest…