04 Dec 2013
ABNR'S CONTRIBUTION IN IFLR REGULATORY CAPITAL SURVEY 2013
Our Partner, Ayik Candrawulan Gunadi and Foreign Counsel, Theodoor Bakker have contributed in &ldquo
14 Nov 2013
RECENT REGULATION ON FOOD AND DRUG SUPERVISORY AGENCY (BPOM) REGARDING TOBACCO PRODUCTS
In line with the task assigned to it under article 60 (5) of Government Regulation Peraturan Number 109 of 1012 Regarding Health Safety Measures on Material Containing Addictive Substance in the Form of Tobacco Products, i.e. to prepare a regulation regarding supervision of circulated tobacco products, the Indonesian Food and Drug Supervisory Agency (“BPOM”) issued, on 28 Juni 2013, Regulation…
14 Nov 2013
BI REGULATIONS ON BANK'S MINIMUM CAPITAL REQUIREMENTS AND MULTIPLE LICENSING
The Indonesian central bank, Bank Indonesia, recently issued two regulations which will change the way banks in this country do their business. These two regulations regulate the business activities of a bank on the basis of the bank’s capital. As a result, commercial banks which in the past had more freedom in their operation thanks to Law No. 7/1992 regarding Banking (as amended) are now only…
11 Oct 2013
MINISTER OF HEALTH'S REGULATION REGARDING INFANT FORMULA AND OTHER INFANT PRODUCTS
This regulation was issued in May 2013 as Regulation of the Minister of Health Number 39 of 2013, and is the implementation of Article 28 of Government Regulation No. 33 of 2012 regarding Exclusive Feeding of Mother&rsquo
11 Oct 2013
REGULATION OF THE MINISTER OF ENERGY AND MINERAL RESOURCES REGARDING SOLAR ENERGY
The Minister of Energy and Mineral Resources (“MEMR”) has issued MEMR Regulation No. 17 of 2013 regarding Purchase of Electricity Power by PT Perusahaan Listrik Negara (Persero) (“PLN”) from Photovoltaic (Fotovoltaik) Solar Power Plant (“Solar Energy Regulation”). The regulation is meant to promote greater use of solar energy for electricity power generation. Purchase…
25 Jul 2013
REGULATION REGARDING FINANCIAL HEALTH OF INSURANCE AND REINSURANCE COMPANIES
Regulation No. 53/PMK.010/2012 of the Minister of Finance (“MOF”) regarding Financial Health of Insurance and Reinsurance Companies (“Regulation”) which was issued last year has been in force since 1 January 2013. The Regulation revokes the following previous regulations:-Article 21, 22, 28, and 31 of MoF Decree No. 422/KMK.06/2003 on Conduct of Insurance and Reinsurance Business;…
25 Jul 2013
GOVERNMENT'S FEASIBILITY SUPPORT FOR PPP INFRASTRUCTURE PROJECTS
The Minister of Finance on 21 December 2012 issued Regulation No. 223/PMK.011/2012 regarding Provision of Feasibility Support by Funding Part of the Construction Cost of Infrastructure Projects Under the Public-Private Partnership Scheme (“Regulation”). This Regulation was issued to implement the Article 17A of Presidential Regulation No. 56 of 2011 regarding Second Amendment to Presidential…
25 Jul 2013
BI UPDATED ITS REGULATION ON SINGLE PRESENCE POLICY
Bank Indonesia (“BI”) on 26 December 2013 issued Regulation No. 14/24/PBI/2012 regarding Single Ownership in Indonesian Banks (the “Regulation”). The Regulation was issued as an effort of BI to improve the competitiveness of Indonesia’s banking industry in light of the economic development in regional and global levels, by reducing the number of Indonesian banks via consolidation.…
16 May 2013
BKPM REGULATION NO. 5 OF 2013
The Investment Coordination Board (BKPM) has issued a new BKPM Regulation No. 5 of 2013 concerning Guidelines and Procedures for Licenses and Non-Licenses for Capital Investment (“Reg 5 2013”), dated April 8, 2013. This new regulation presents new items that may impact new investment for establishing a foreign investment company as well as existing foreign investment companies (“PMA…
15 May 2013
ASSETS QUALITY RATING OBLIGATION FOR COMMERCIAL BANKS
Bank Indonesia recently issued Bank Indonesia Regulation No. 14/15/PBI/2012 concerning Commercial Banks’ Assets Quality Rating (“Regulation No. 14/2012”), which obliges commercial banks (“Banks”) to rate their assets quality in the manner set forth in this regulation. Regulation No. 14/2012 revokes all previous Bank Indonesia regulations on the same subject matter which…
15 May 2013
PRESIDENTIAL REGULATION ON MANAGEMENT OF OIL AND GAS ACTIVITIES BY SKK MIGAS
As a follow up of Decision of the Minister of Energy and Mineral Resources Number: 3135 K/08/MEM/2012 which transfers the duties and functions of the Executive Agency for Upstream Oil and Gas Business Activities (BPMIGAS) to the Executive Task Force for Upstream Oil and Gas Activities (SKK MIGAS), the President of the Republic of Indonesia issued Presidential Regulation No. 9 of 2013 regarding Implementation…
15 May 2013
REGULATION ON HEDGING TRANSACTIONS IN THE FRAMEWORK OF GOVERNMENT DEBT MANAGEMENT
The Minister of Finance on 4 January 2013 issued Regulation No. 12/PMK.08/2013 regarding Hedging Transactions in Government Debt Management (“Regulation”). The Regulation was issued to implement Article 26 (2) and (4) of Law No. 19/2012 regarding 2013 State Budget (“Budget Law”), which allows the government to hedge its debts against interest and exchange rate fluctuations…
15 May 2013
LAW NO.18 OF 2012 CONCERNING FOOD
Indonesian Law No. 7 of 1996 concerning Food (“Law No. 7/1996”) has been replaced by Law No. 18 of 2012 concerning Food (“Law No. 18/2012”). This new food law was issued on 16 November 2012 and has been in force since17 November 2012. Food Law 2012 contains provisions under 12 headings that range from food planning to food investigation, as follows: 1.Food Planning;2.Food Availability;3.Food…
05 Mar 2013
MINISTER OF TRADE REGULATION LIMITS THE NUMBER OF RETAIL SHOPS FOR FRANCHISORS AND FRANCHISEES
The Minister of Trade (“Minister”) has issued Regulation No. 68/M-DAG/PER/10/2012 on Modern Retail Shop Franchising, which limits the number of company owned outlets to 150. The Regulation categorizes retail outlets into company owned outlets and franchised outlets, and limits the number of outlets that can be directly owned by a franchisor and a franchisee to 150. If a franchisor and…
05 Mar 2013
PROCEDURE FOR OBJECTION ON SANCTION IN CAPITAL MARKET
The Head of the Capital Market and Financial Institution Supervisory Agency (“Bapepam-LK”) issued, on 5 December 2012, her Decision No. KEP-642/BL/2012 regarding Submission of Objection to Sanctions (“Decree”). The rules and procedures for the submission of the objections are elaborated in Regulation No. XIV.B.2 on the same subject matter (the “Regulation”) which…
05 Mar 2013
GUIDELINES FOR THE COMPOSITION OF ENVIRONMENTAL DOCUMENTS
The State Minister for the Environment has issued a new regulation regarding how the Environmental Documents being the prerequisites for a company’s environmental license are to be composed. The regulation is Regulation of the State Minister for the Environment No. 16 of 2012 on Guidelines for the Composition of Environmental Documents (the “Regulation”), and is the implementing…
05 Mar 2013
GUIDELINES FOR PUBLIC INVOLVEMENT IN THE PROCESS OF ENVIRONMENTAL IMPACT ASSESSMENT
The State Minister for the Environment has issued guidelines for the involvement of the public in the environmental impact assessment (known by its Indonesian acronym as “AMDAL”) process and in the issuance process of environmental licenses. The guidelines are set forth in the Minister’s Regulation No. 17/2012 (the “Regulation”), which is the implementation regulation…
05 Mar 2013
REGULATION ON BANK'S TRANSPARANCY AND PUBLICATION OF BANK'S REPORTS
With the current development of banking products and activities in Indonesia, the demand for transparency of the financial condition and performance of a bank is increasing. Banks are expected to disclose their risk exposures as well as their risk management practices, so that the public and the relevant market can better assess their products and performance. Bank Indonesia addresses the demand by…
05 Mar 2013
REGULATION ON GOOD CORPORATE GOVERNANCE FOR INSURANCE COMPANIES
The Minister of Finance issued, on 3 October 2012, Regulation No. 152/PMK.010/2012 regarding Good Corporate Governance for Insurance Companies (“MOF Regulation”). This Regulation is the implementing regulation for Government Regulation No. 73 of 1992 which has been severally amended, lastly by Government Regulation No. 81 of 2008 on Insurance Business. The MOF Regulation applies to insurance…
28 Jan 2013
INDONESIAN BANKS TO PROVIDE BROADER TRUST SERVICES
Although Indonesian banking law No. 7/1992 (as amended, “Law No. 7/1992”) allows Indonesian banks to provide trust services, Indonesian banks have generally only provided limited trust services. As a result, the Indonesians rich and companies operating in Indonesia would usually opt for the services of foreign banks. Bank Indonesia expects to change the above condition through its recently…
28 Jan 2013
NEW MINISTER OF TRADE REGULATION ON FRANCHISING
The Minister of Trade issued his Regulation No. 53/M-DAG/PER/8/2012 concerning Franchise Management (“Regulation No. 53”), revoking at the same time the previous Minister of Trade Regulation No. 31/M-DAG/PER/8/2008 (“Regulation No. 31”) on the same subject matter. The new regulation aims at increasing franchising business partnership between franchisors and Indonesian small…
28 Jan 2013
LEGAL ALERT FOR HAK TANGGUNGAN HOLDERS: THE STATE HAS THE RIGHT TO TAKE LAND FOR REASONS OF ABANDONMENT
Hak tanggungan (land mortgage) holders, financial institutions, banks, and creditors alike should be aware of the possible invalidation of their lien over land that has been pledged to them if the State has reasons to declare the land as abandoned land. In January 2010, the Government issued Regulation No. 11 Year 2010 concerning Abandoned Land (“Regulation 11”), which regulates that the…
28 Jan 2013
NEW REGULATION REGARDING OUTSOURCING
The Minister of Manpower and Transmigration (“Minister”) has revoked two previous Minister decrees, respectively No.KEP.101/MEN/VI/2004 regarding Guidelines Permits for the Outsourcing of Workers/Labor Services and No. KEP.220/MEN/X/2004 regarding Requirements for the Outsourcing of Part of Work to Another Company, and replaced them with Regulation No. 19 of 2012 regarding Requirements…