19 Dec 2019
Government Acts to Regulate Booming E-commerce Sector and Foreign Providers Operating in Indonesian Market
A. Introduction Despite being mandated by Article 66 of the Trade Law,[1] which entered into force on 11 March 2014, a government regulation specifically focused on e-commerce has only recently been issued after having been under discussion since 2015. The new regulation (Government Regulation No. 80 of 2019 on Electronic Commerce / “GR 80/2019”[2]) entered into force on 25 November 2019.…
10 Dec 2019
Concrete Development in Building Sector: Problematic Regulation That Threatened Licenses of Foreign-owned Construction Companies Revoked After Widespread Criticism
A. INTRODUCTION In an ABNR legal update published on 10 October 2019 (click here), we reported how the Public Works & Housing Ministry had agreed to review Regulation No. 09/PRT/M/2019 (the “Regulation”,[1] effective 13 June 2019) following widespread criticism by construction industry participants. The Regulation, which was issued pursuant to the Construction Services Law,[2] set…
06 Dec 2019
Dialing Up Change: New Regulation Modernizes and Streamlines Regulatory Regime for Telecommunications Services
A. Background The Minister of Communications and Information Technology (MCIT) has issued an important new regulation on the provision of telecommunications services. The regulation (MCIT Regulation No. 13/2019 / the “New Regulation”[1]) enters into force on 25 April 2020 (six months after its promulgation on 25 October 2019). The New Regulation, which revokes a total of 16 previous regulations…
04 Dec 2019
Reform or Die! Indonesia’s Business-friendly President Widodo Reaffirms Economic Transformation Agenda
Second Term, Same Challenges President Joko Widodo, a former businessman and entrepreneur who was officially inaugurated for a second term as Indonesia’s president on 20 October 2019, has strongly reaffirmed his commitment to the economic transformation process that he launched upon his election as president for the first time back in 2014. The pro-business president’s latest commitment…
30 Oct 2019
Indonesia Issues Important New Regulation on Electronic (Network and Information) Systems
Significant Changes to Operator Classification, Registration Requirements, Data Localization Rules, Personal Data Protection, Right to Be Forgotten, and Government Authority to Block Access An important new regulation on electronic systems has recently been issued, namely, Government Regulation No. 71 of 2019 (“GR 71/2019”[1], effective 10 October 2019), which revokes Government Regulation…
29 Oct 2019
ABNR Assists The Ocean Cleanup with Pioneering Plastic-Pollution Project in Indonesia
ABNR is honored to have provided pro bono (free) legal assistance to The Ocean Cleanup on the legal aspects of its river cleanup project in Jakarta, which was unveiled on 26 October 2019 and represents a revolutionary breakthrough for dealing with the plastic pollution problem in our oceans. The project involves the installation of a new technology called the InterceptorTM at the Cengkareng Drain…
18 Oct 2019
Substantive Agreement Reached on Comprehensive Economic Partnership Agreement between Indonesia and South Korea
After more than eight months of negotiations, agreement has been reached on the substantive aspects of the proposed Indonesia-South Korea Comprehensive Economic Partnership Agreement (CEPA). However, it is important to note that a formal Indonesia-South Korea CEPA has yet to be officially signed – it is expected that this will take place in November at the 30th ASEAN-Korea Commemorative Summit…
16 Oct 2019
KPPU Flexes Muscles with Revamped Merger Control Guidelines
New Notification Requirement for Asset Transactions, Possible Expansion of Notification Requirement for Foreign-to Foreign Transactions and Extension to Transactions Between Affiliates After fining numerous companies for late notification of mergers, consolidations and acquisitions in recent months, the new commissioners of the Indonesian Competition Commission (“KPPU”) that took office…
14 Oct 2019
ABNR Wins Big at ALB Indonesia Law Awards 2019
ABNR Counsellors at Law has emerged as one of the top winners at the annual ALB Indonesia Law Awards, which were presented last night (Oct 10) at a gala event in the Grand Hyatt Jakarta. ABNR received a total of four awards in the prestigious law-firm and individual-lawyer categories, with senior ABNR partner and Management Committee member Mr. Emir Nurmansyah taking the trophy for “Deal Maker…
11 Oct 2019
After 10-Year Delay, Presidential Regulation Issued on Key Provisions of Language Law but Questions Remain
A. Introduction After what can only be described as an inordinate delay of 10 years, a Presidential Regulation (the “Regulation,”[1] effective 30 September 2019) has finally been issued to give effect to key language provisions of Law No. 24 of 2009 on the National Flag, Language, Coat of Arms and Anthem (“Law 24/2009,” often referred to as the Language Law),[2] which came…
10 Oct 2019
Public Works Ministry Agrees to Revisit Problematic Regulation on Foreign Construction Companies
A. Background Following criticism from both foreign and domestic construction companies of Minister of Public Works & Housing Regulation No. 09/PRT/M/2019 (the “Regulation”),[1] the Ministry of Public Works and Housing (the “Ministry”) has now signaled a willingness to listen to what industry participants have to say and to revise the Regulation. The Regulation, which came…
01 Oct 2019
Water Resources Bill Passed by Indonesian Parliament: Will It Resolve Long-running Issues and Pass the Constitutionality Test?
A. Introduction After a protracted deliberation process, the House of Representatives (Dewan Perwakilan Rakyat / DPR) finally passed the Water Resources Bill[1] at a plenary session on Tuesday, 17 September 2019. While the Bill will not officially become law until such time as it receives the presidential consent and is promulgated, this is actually a formality. In view of this, we will refer to the…
06 Sep 2019
Manpower Ministry Issues Consolidated List of Roles that May be Filled by Expatriate Employees
A. Introduction The Minister of Manpower (the “Minister”) has issued a new decree (Decree No. 228 of 2019 / “Decree 228,”[1] effective 27 August 2019) that sets out a consolidated, 138-page list of positions that may be filled by expatriates in Indonesia. The more than 2,200 job titles listed in Decree 228 are taken directly from the International Standard Classification of…
02 Sep 2019
ABNR Recognized in 12 Categories in ABLJ Indonesia Law Firm Awards 2019
Asian Business Law Journal (ABLJ), a prestigious Hong Kong-based legal publication, has named ABNR Counsellors at Law (ABNR) an award winner in 12 categories in the ABLJ Indonesia Law Firm Awards 2019: Best overall law firms Aviation Banking & Finance Competition & Antitrust Corporate & Commercial Energy Projects & Infrastructure M&A PE & VC Real Estate Restructuring, Financing…
30 Aug 2019
Ministry of Agrarian Affairs Introduces Online System for Administration of Charges over Land
A. Overview The Minister of Agrarian Affairs and Spatial Planning has issued a new regulation (“Reg. 9/2019,”[1] effective 21 June 2019) to provide for the establishment of an online system for the administration of charges over land. The term “charge” in this legal update refers to the Indonesian legal concept of “Hak Tanggungan,” that is, a security interest over…
28 Aug 2019
Unease as Manpower Ministry Targets Non-Resident Foreign Directors for Breaches of Expatriate-Employment Rules
A. Requirement for Non-Resident Foreign Directors to Comply with Expatriate-Employment Rules Despite the Government’s evident commitment to improving Indonesia’s ease-of-doing-business ranking, old habits clearly die hard. In recent months, we have been receiving an increasing number of queries from clients that are experiencing difficulties related to non-resident foreign directors. These…
26 Aug 2019
SUPREME COURT PUSHES AHEAD WITH EXPANSION OF E-LITIGATION SERVICES
A. Overview The concept of e-litigation was first introduced in Indonesia with the issuance of Supreme Court Regulation No. 3 of 2018 (“Reg. 3/2018”),[1] the scope of which was largely confined to the electronic filing and service of documents, payment of court fees, and internal case administration by the courts. On the back of Reg. 3/2018, Chief Justice Muhammad Hatta Ali officially…
23 Aug 2019
New BKPM Regulation Provides Clarity on Pre-2007 PMA Divestment Obligations and Status of Shareholding Foreign Directors/Commissioners as Regards Expatriate Employment Rules
Introduction Indonesia’s Investment Coordinating Board (Badan Koordinasi Penanaman Modal / “BKPM”) has issued a new regulation that amends BKPM Regulation No. 6 of 2018 (“Reg. 6/2018”),[1] which sets out guidelines and procedures for licensing and facilities under Indonesia’s foreign direct investment (FDI) regime. The new regulation (BKPM Regulation No. 5 of 2019…
22 Jul 2019
Minister of Finance Issues Regulation Establishing Sanctions for Failure to Repatriate Proceeds of Natural-Resources Exports
A. Background The start of 2019 saw a renewed attempt by the Government to compel exporters of natural resources-based commodities to repatriate their export earnings and deposit them in the Indonesian financial system as part of a series of measures that were adopted at the time to bolster the rupiah against the various headwinds buffeting emerging-market currencies. The new rules on the repatriation…
24 Jun 2019
Key Implementing Regulation Issued for Halal Law but More Needed Before Full Enforcement
After a delay of almost five years, an essential implementing regulation has finally been issued for the Halal Products Law.[1] The new regulation (Government Regulation No. 31 of 2019 / “GR 31/2019”[2]), entered into force on 3 May 2019. GR 31/2019 contains no material changes from the draft that we analyzed in our ABNR Legal Update titled Mandatory Halal Certification in Indonesia: Government…
20 Jun 2019
ABNR Recognized as Leading Cross-border Restructuring & Insolvency Firm by ‘Global Restructuring Review’
ABNR has 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. A number of ABNR partners/foreign counsel are also singled out by GRR as “names to know”, namely, Mr. Theodoor Bakker,…
31 May 2019
OJK Imposes New Requirements for Capital Increases Using Mechanisms Other than Rights Issues
A. Introduction The Financial Services Authority (OJK) has issued a new regulation (the “New Regulation”) to update the rules on capital increases conducted by way of rights issues and other mechanisms by publicly listed companies (“Issuers”). The New Regulation (POJK No. 14/POJK.04/2019) entered into effect on 30 April 2019 but was only made publicly accessible on the OJK…
23 May 2019
ABNR Shines in 2019 List of Indonesia’s Top-100 Lawyers
ABNR has emerged in joint first place in terms of the number of partners / foreign counsel recognized by Asian Business Law Journal (ABLJ) as being on the “A List” of Indonesia’s Top-100 lawyers, marking the second year in a row that the Firm has been at the top of ABLJ’s annual lawyer rankings. A total of six ABNR partners are recognized as being on the A-List this year, namely,…
25 Apr 2019
IDX REVISITS AND CLARIFIES LISTING REQUIREMENTS
A. Introduction The Indonesia Stock Exchange (“IDX”) has issued a new regulation under IDX Board of Directors Directive No. Kep-00183/BEI/12-2018, dated 26 December 2018 (the “New Regulation”), which revokes and supersedes IDX Board of Directors Directive No. Kep-00001/BEI/01-2014 (Securities Listing Regulation No. I-A - General Provisions for the Listing of Equity Securities…
06 Mar 2019
Bank Indonesia Issues New Regulation on Prudential Rules for Offshore Debt and FX-denominated Liabilities in Banking Sector
A. Introduction Bank Indonesia (BI) has issued a new umbrella regulation on the application of prudential norms to limit the exposure of Indonesian banks to offshore debt and foreign currency (“FX”)-denominated liabilities. The regulation (No. 21/1/PBI/2019 – “Reg. 21”)[1] entered into force on 1 March 2019. Reg. 21 revokes BI Reg. No. 7/1/PBI/2005,[2] as amended four…
04 Mar 2019
Bank Indonesia Revisits Forex-Activity Reporting Requirements
A. Introduction Bank Indonesia has issued a new regulation (No. 21/2/PBI/2019 of 2019 / “Reg. 21”)[1] on the reporting of foreign exchange-related (“forex”) activities between Indonesian residents and non-residents. Reg. 21, which was issued on 7 January 2019 and entered into force on 1 March 2019, revokes those provisions of Bank Indonesia Regulation No. 16/22/PBI/2014 of…
01 Mar 2019
Director General of Foreign Trade Issues Guidelines on Mandatory Use of Domestic Insurers for Prescribed Imports/Exports
A. Introduction The Ministry of Trade’s Director General of Foreign Trade has issued a new regulation (No. 02/DAGLU/PER/1/2019 - DG Reg. 02)[1] that sets out technical guidelines governing the mandatory insuring of prescribed imports/exports with domestic insurers pursuant to Minister of Trade Regulation No. 82 of 2017,[2] as lastly amended by Minister of Trade Regulation No. 80 of 2018.[3]…
25 Feb 2019
Mandatory Halal Certification in Indonesia: Government Regulation Expected to be Issued Soon
1. Introduction The Halal Products Law,[1] which entered into effect on 17 October 2014, envisages the establishment of a mandatory Halal certification scheme for prescribed products. However, in accordance with Indonesia’s system of hierarchical legislation, the Halal Products Law requires the issuance of various ancillary or implementing regulations so that its provisions may be put into effect.…
20 Feb 2019
Non-Tariff Barriers Have Potential to Frustrate Intra-ASEAN Exporters, but Complaints Mechanism is Available
Non-Tariff Barriers in ASEAN The inauguration of the ASEAN Economic Community (AEC) on 31 December 2015 marked the start of a new chapter in ASEAN’s ambitious drive towards closer integration and cooperation. The overarching objectives of the AEC are to promote the seamless movement of goods, services, investment, capital and skilled labor within ASEAN, with the ultimate goal being the creation…
18 Feb 2019
Indonesia Establishes Legal Framework for Futures Trading of Crypto Assets
1. Introduction Following the issuance of Minister of Trade Regulation No. 99 of 2018[1] in September, which officially permits futures trading of crypto assets in Indonesia for the first time, the Commodity Futures Trading Supervisory Authority (“Bappebti”) issued Bappebti Regulation No. 5 of 2019 (“Reg. 5”)[2] on Feb 8 to provide a detailed regulatory framework for the operation…
29 Jan 2019
Indonesia’s OJK Puts Framework in Place for Establishment of Securities Finance Agency
A. Introduction The Financial Services Authority (“OJK”) has issued a regulation that provides a detailed framework for the establishment of a dedicated Securities Finance Agency (Lembaga Pendanaan Efek / “SFA”) so as to boost transaction volume and liquidity in the Indonesian stock market by, in particular, encouraging margin trading and short selling. Upon establishment,…
28 Jan 2019
Repatriation of Export Earnings to Indonesia: New Regulation Signals Stricter Approach
A. Introduction Government Regulation No. 1 of 2019 (“GR 1/2019”),[1] which entered into effect on 10 January 2019, requires exporters in the natural-resources sector to repatriate their forex-denominated export earnings to Indonesia. While this requirement is not actually new, firmer action to enforce it has been on the cards for some time, given that it was announced as a key part of…
28 Jan 2019
ABNR Enhances Client Service with Appointment of Three New Partners
As a reflection of our commitment to providing superior legal services to our clients across all practice areas, we are pleased to announce the appointment of three new partners, Ms. Monic Devina, Ms. Ammalia Putri, and Ms. Serafina Muryanti. Their appointments are effective from 1 January 2019. Monic has been with ABNR since 2005. Her key practice areas are Banking & Finance, Foreign Direct Investment…
24 Jan 2019
Indonesia’s OJK Redefines Rules Governing Finance Companies
The Financial Services Authority (OJK) has issued a new umbrella regulation on finance companies to take account of changes in the market since its last intervention in the form of OJK Regulation 29/POJK.05/2014 (“Reg. 29”). The new regulation (OJK Regulation No. 35 /POJK.05/2018 / “Reg. 35”),[1] which entered into effect on 28 December 2018, revokes and supersedes Reg. 29.…
23 Jan 2019
If at First You Don’t Succeed... Indonesia Makes Another Attempt to Regulate App-based Ride-Hailing Services
1. Background As is the case in practically all jurisdictions around the world, Indonesia’s regulators have struggled to come to grips with the disruption caused to conventional public transportation models by the emergence and phenomenal growth of app-based ride-hailing services. To date, the Minister of Transportation (the “Minister”) has made a total of four attempts to regulate…
22 Jan 2019
ABNR Ranked Among Top-3 Indonesian Law Firms by ‘Legal 500 Asia Pacific’ 2019
ABNR has emerged with flying colors in The Legal 500 Asia Pacific 2019 rankings, reaffirming our status as one of Indonesia’s top-three commercial law firms. Overall, our legal expertise in a total of 12 key practice areas is recognized, while 19 ABNR lawyers are lauded as either “Leading Individuals” or “Recommended Lawyers” for their cutting-edge and innovative advice…
18 Jan 2019
Indonesia’s OJK Moves to Regulate on Equity Crowdfunding
1. General The Indonesian Financial Services Authority (“OJK”) has issued a long-awaited regulation on equity crowdfunding that it is hoped will provide a solid foundation for the development of the industry going ahead. The new regulation forms part of a series of instruments issued by the OJK since 2016[1] to establish a regulatory framework governing the financial technology (fintech)…
17 Jan 2019
BKPM Takeover of OSS Should Help Iron Out Glitches
As we reported in our ABNR Legal Update titled The OSS System: What Exactly is it? (4 September 2018), the Online Single Submission system (“OSS”) represents a quite revolutionary new departure for business and investment licensing in Indonesia. The OSS was established by Presidential Regulation 24/2018 (“PR 24/2018”), which entered into effect on 21 June 2018. In the latest…
15 Jan 2019
Corruption Court Sets Important Precedent by Finding Corporation Guilty of Tender Rigging
In our ABNR Legal Update titled Anticorruption Latest: Some Encouragement for Whistleblowers and KPK Launches Its First-Ever Prosecution of a Corporation, published on 8 November 2018, we reported on the Corruption Eradication Commission (KPK)’s prosecution of publicly listed PT Nusa Konstruksi Enjiniring Tbk (“Nusa Konstruksi”) for corruption related to its participation in a number…