08 Nov 2018
Anticorruption Latest: Some Encouragement for Whistleblowers and KPK Launches Its First-Ever Prosecution of a Corporation
New whistleblower regulation One of the things that often surprises outside observers of graft in Indonesia is the comparative rarity with which complex, multilayered schemes of corruption are uncovered through the action of whistleblowers, despite such schemes frequently involving large numbers of participants. In order to encourage more whistleblowers to come forward, and greater public participation…
07 Nov 2018
Government Backtracks on Date for Prohibiting Deployment of Certain Types of Foreign-Flagged Vessels in Indonesian Waters
Under Minister of Transportation Regulation No. PM 100 of 2016, certain types of foreign-flagged vessels, other than passenger and freight vessels, were permitted to be deployed in Indonesian waters for particular purposes until the end of December 2017 (“Permitted Vessels”). After that date, their use was to be banned. However, this cut-off date was subsequently extended to the end of…
08 Oct 2018
ABNR Shines at ALB Indonesia Law Awards 2018
ABNR emerged as one of the two biggest winners from the ALB Indonesia Law Awards 2018, which were presented during a gala event in the Grand Ballroom of Jakarta’s Mandarin Oriental Hotel on Oct. 4. ABNR received a total of six awards, including the prestigious Indonesia Deal Firm of the Year award, while ABNR’s Mr. Emir Nurmansyah was declared Dealmaker of the Year. The ALB Indonesia Law…
20 Sep 2018
OJK Issues Umbrella Regulation for Fintech Development, Establishes Regulatory Sandbox Regime
A. Introduction The financial technology (“fintech”) sector in Indonesia is regulated by two separate institutions: (i) the central bank (Bank Indonesia / “BI”) for fintech related to the payments system, such as payment gateways, e-money, e-wallet, etc.) and (ii) the Financial Services Authority (“OJK”) for fintech related to lending and all other aspects of fintech.…
10 Sep 2018
Minimum Equity Requirement for Foreign Investors Wishing to Use OSS System Reduced to IDR 2.5 Billion
In our Legal Update titled OSS System Requires Foreign Investment Companies to Have More Than IDR 10 Billion in Equity, which was published on 5 September 2018, we reported that foreign investment companies ("PT PMA") could only register on and use the OSS System if they had a minimum equity (issued and paid up capital) of more than IDR 10 billion. We described how this was a deliberate policy that…
05 Sep 2018
OJK Issues New Regulation on Takeovers of Public Companies
The Financial Services Authority (“OJK”) has issued a new regulation governing takeovers of public companies. The regulation (OJK Regulation No. 9/POJK.04/2018 / “Reg 9/2018”), which entered into effect on 25 July 2018, supersedes Bapepam-LK Rule No. IX.H.1 (the “Previous Regulation”). Reg 9/2018 introduces a number of significant changes, including the following:…
04 Sep 2018
The OSS System: What Exactly is it?
The establishment of the integrated OSS system under Government Regulation No.24 of 2018, which entered into force on 21 June 2018, constitutes a quite fundamental overhaul of Indonesia’s business licensing regime. The essential idea is that all necessary business and operating licenses from both central and local government should eventually be capable of being obtained online using the OSS…
20 Aug 2018
ABNR Hosts Roundtable Discussion on Recent Developments and Third-party Funding in Arbitration Arena
On August 8, ABNR Counsellors at Law played host to a well-attended roundtable discussion on topical arbitration issues at ABNR’s offices in Jakarta’s SCBD. Organized in conjunction with the International Chamber of Commerce (ICC)’s Indonesia Arbitration & ADR Commission (IAAC), the event was titled “Arbitration Case Studies and Third-Party Funding.” The speakers…
07 Aug 2018
Devil’s in the Detail: New Regulation Rolls Back Expat Employment Liberalization
A. Introduction Pursuant to the changes in the expatriate employment rules brought about by Presidential Regulation No. 20 of 2018 (“PR 20/2018”), the Ministry of Manpower (“MOM”) has issued a new implementing regulation (Regulation No. 10 of 2018 / “MOMR 10/2018”) governing the procedures for the employment of expatriates. The new regulation, which entered into…
16 Jul 2018
BKPM to Continue PTSP Role despite New Online Single Submission
BKPM issued an announcement on Tuesday, 10 July 2018, stating that it will continue its service in its role as the operator of the so called Central PTSP (Pelayanan Terpadu Satu Pintu Pusat – Central One Door Policy). Previously on Friday, 29 June 2018, BKPM issued a press release stating that all submissions to BKPM received before and after Friday, 29 June 2018, would be forwarded to and processed…
12 Jul 2018
Details on the Updated E-Money Regulation
After nine long years of regulating E-Money transactions, the Indonesian Central Bank (the “Bank Indonesia) has responded to changes in technology by overhauling the Bank Indonesia Regulation No. 11/12/PBI/2009 dated 13 April 2009 on Electronic Money (“PBI 11/12”) and replacing it with the Bank Indonesia Regulation No. 20/6/PBI/2018 dated 3 May 2018 (“PBI 20/6”) with…
05 Jul 2018
BKPM Suspends Operation Pending Launch of New Online Single Submission System
At end of June 2018, the government enacted Government Regulation 24/2018 concerning Electronically Integrated Business Licensing Service (GR), which introduces the so-called Online Single Submission (OSS) system for the issuance of licenses and permits by the government. The objective of this GR is to have a harmonized, unified, and simplified licensing process nationwide. Based on GR 24/2018, the…
20 Apr 2018
OJK Issues New Rules for Assessing Financial Soundness of Venture Capital Companies in Indonesia
1. Background The Financial Services Authority (“OJK”) has issued new rules (the “Rules”) to give effect to the provisions of Chapter V of OJK Regulation No. 35/POJK.05/2015 (the “Regulation”), which governs the management of venture capital (“VC”) providers. The Rules are set out in OJK Circular No. 7/SEOJK.05/2018 on the Financial Soundness of Venture…
20 Apr 2018
Supreme Court Stresses Expats May Only Work on Temporary Contracts, but Surprises Still Possible
A. Introduction Following our recent legal update on Presidential Regulation No. 20 of 2018, which significantly streamlines the requirements for the hiring of expatriates [click here to view], we have received a number of queries as to the rights and protections afforded to expatriate employees under Indonesian manpower law. In particular, we have been asked whether there is any possibility for an…
06 Apr 2018
Bureaucratic Reform Gains Traction in Indonesia as Government Streamlines Expat Employment Rules
There was a flurry of reports in the media recently suggesting that the Government planned to institute a major overhaul of the rules governing the employment of expatriates. These reports have turned out to be well-founded, with the newly issued Presidential Regulation No. 20 of 2018 (the “New Regulation”)[i] significantly streamlining the expatriate employment process. The Regulation,…
02 Apr 2018
Indonesian Competition Authority Again Fines Companies for Late Merger Notification, Likely More to Follow
The Indonesian Competition Authority (“KPPU”) recently imposed fines on two companies for failure to notify their acquisitions to it. Indonesian competition law requires that a merger, consolidation or acquisition meeting certain criteria should be notified to the KPPU within 30 business days after the transaction becomes legally effective. In the event of a failure to notify within 30…
22 Mar 2018
Jakarta Governor Issues Sectoral Minimum Wage Rates for 2018
Back in November, the 2018 Jakarta provincial standard minimum wage was set at Rp 3,648,035.82 by virtue of Gubernatorial Regulation No. 182/2017, which entered into effect on 1 January 2018. This marked an 8 percent increase over the standard minimum wage in 2017 (Rp 3.3 million). The Jakarta administration has now moved to prescribe higher minimum wage rates than the 2018 standard minimum wage in…
14 Mar 2018
Ministry Moves Quickly to Limit Application of Coal Price Caps to New Contracts
In our Client Update published on 12 March 2018, we analyzed Minister of Mines & Energy Decree No. 1395K/30/MEM/2018 (“Decree 1395”), issued on 9 March 2018, which places price caps on coal supplied for power generation in the public interest. As we mentioned in the ABNR Commentary section of that update, the coal industry is dominated by locally owned companies or companies listed…
13 Mar 2018
Businesses Now Required to Provide Government with Information on Beneficial Ownership
A. Introduction A new presidential regulation that entered into effect on 5 March 2018 requires companies and other business entities to provide the Government with information on their beneficial owners. The regulation (“Perpres 13/2018”)[1] states that it is intended to strengthen the fight against money laundering and financing of terrorism, and is necessary so as to allow Indonesia…
12 Mar 2018
Government Caps Prices of Coal for Power Generation
A. Introduction With state power utility Perusahaan Listrik Negara (“PLN”) coming under increasing financial pressure as energy prices soar and the political temperature heating up ahead of local elections this year and a presidential election next year, the Government has opted to impose caps on the prices payable for coal to be used for power generation in the public interest. This new…
02 Mar 2018
Energy & Mineral Resources Ministry Comes Good on Promise to Revoke Regulations
As we reported in our Client Update published on 14 February 2018, the Ministry of Energy and Mineral Resources (“MEMR”) recently announced the revocation of 32 regulations in furtherance of the government’s efforts to reduce the regulatory burden on business. However, as we also pointed out at the time, it was not clear which of these regulations had in fact been revoked prior to…
28 Feb 2018
Competition Authority Goes into Forced Hibernation but New Dawn at Hand
In an entirely unexpected development, Indonesia’s competition authority, the Competition Supervisory Commission (“KPPU”), has announced that it has been forced to suspend many of its key operations due to the emergence of a legal vacuum resulting from the simultaneous expiry of the terms of office of all of its commissioners on Feb 27 -- in reality, their terms expired on Dec 27…
14 Feb 2018
MEMR Announces Easing of Regulatory Burden: New & Renewable Energy Sector to Benefit
On 5 February 2018, the Ministry of Energy and Mineral Resources (“MEMR”) issued a press release announcing the revocation of 32 regulations in the energy and mineral resources sector. Subsequent checking revealed that the bulk, if not all, of the regulations have not yet been revoked but are due to be revoked at some time in the future. However, there is no time line yet as to when this…
26 Jan 2018
MoF Regulation 95/PMK.08/2017: Updated Rules on Granting Government Guarantees in Infrastructure Sector
Ministry of Finance (“MoF”) Regulation No. 95/PMK.08/2017 was issued on 19 July 2017 as an implementation regulation for Government Regulation (“GR”) No. 50/2016 on the amendment of GR No. 35/2009, which envisages the setting up of state-owned Badan Usaha Penjaminan Infrastruktur (Infrastructure Guarantee Corporations / “BUPI”). The only BUPI established to date…
26 Jan 2018
New OJK Regulation on Single Presence Policy
A new OJK regulation on the Single Presence Policy in Indonesian Banking (“POJK 39/2017”), which revokes Bank Indonesia Regulation No. 14/24/PBI/2012 (“PBI 14/2012”), was issued on 12 July 2017 by the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”). POJK 39/2017 was followed a week later by OJK Circular Letter No. 44/SEOJK.03/017 (“OJK Circular”),…
26 Jan 2018
New Rules on Employment of Expatriates in Banking Sector
The Financial Services Authority (“OJK”) has issued Regulation No. 37/POJK.03/2017 (“OJK Reg. 37”), which sets out new rules on the employment of expatriates and the transfer of knowledge in the banking sector. OJK Reg. 37 revokes Bank Indonesia (“BI”) Regulation No. 9/8/PBI/2007 (“BI Reg. 9”). The following provisions of OJK Reg. 37 are of particular…