28 Oct 2020
Newsflash: Manpower Minister Advises Governors to Freeze Minimum Wage in 2021
The Minister of Manpower (“MOM”) has requested the country’s provincial governors to keep minimum wage rates for 2021 pegged at the same levels as 2020, meaning that workers on the minimum wage would receive no pay increase next year. The request is set out in MOM Circular No. M/11/HK.04/X/2020, issued on 26 October 2020.[1] It should be noted that the setting of the minimum wage…
23 Oct 2020
BKPM Gets Full Authority to Issue Exemptions to Land Area Limits for Strategic Projects
The Ministry of Agrarian Affairs and Spatial Planning (“MAASP”) has issued Regulation No. 13 of 2020 (“Reg. 13/2020,” effective 31 August 2020)[1] to amend MAASP Regulation 17 of 2019 (“Reg. 17/2019”),[2] which sets out the rules governing the granting of location permits (izin lokasi). A “location permit” is defined by Reg. 17/2019 as “a permit…
21 Oct 2020
Omnibus Bill Gives Commercial Courts Jurisdiction in Competition Appeals and Overhauls Sanctions
This is the fifth in our series of ABNR Legal Updates on the Job Creation Bill that was passed by Indonesia’s House of Representatives on Oct. 5 and sent to President Joko Widodo for signing on Wednesday, Oct.15. Today, we look at the changes it makes to Indonesia’s competition/antitrust regime. Indonesia was one of the first Southeast Asian countries to adopt comprehensive fair-competition…
20 Oct 2020
Omnibus Bill Set to Reform Indonesia’s FDI Regime but How Far Will Gov’t Go?
This is the fourth in our series of ABNR Legal Updates on the Job Creation Bill that was passed by Indonesia’s House of Representatives on Oct. 5 and sent to President Joko Widodo for signing on Wednesday, Oct.15. Today, we look at the changes it makes to the rules on foreign direct investment. A. Introduction Currently, foreign direct investment (“FDI”) and restrictions thereon…
20 Oct 2020
ABNR’s Mr. Emir Nurmansyah Named ‘Southeast Asia Dealmaker of the Year’
We are very pleased to announce that ABNR management committee member Mr. Emir Nurmansyah was named Southeast Asia Dealmaker of the Year at the 2020 iteration of the Asian Legal Business (ALB) Southeast Asia Law Awards on Oct. 15, marking the first time ever that a lawyer from Indonesia has been accorded this prestigious regional award. In addition, ABNR’s USD 1.85-billion Jambaran-Tiung Biru…
19 Oct 2020
Omnibus Bill Streamlines Indonesia’s Expatriate Employment Rules but Too Early to Say How Significantly
This is the third in our series of ABNR Legal Updates on the Job Creation Bill that was passed by Indonesia’s House of Representatives on Oct. 5 and sent to President Joko Widodo for signing on Wednesday, Oct.15. Today, we look at the changes it makes to the rules on expatriate employment. While the need to reform Indonesia’s expatriate employment regime has long been recognized, the Government…
16 Oct 2020
New List of Standard Business Classifications Issued by Statistics Indonesia
On 24 September 2020, Statistics Indonesia (Badan Pusat Statistik / “BPS”) issued Regulation No. 2 of 2020[1] to update its “Indonesian Standard Business Classifications” (Klasifikasi Baku Lapangan Usaha Indonesia / “KBLI”). The previous KBLI was issued in 2017. The KBLI consists of a long list of business sectors and sub-sectors that is formulated based on the…
14 Oct 2020
Amid Ongoing Confusion over Job Creation Bill, Manpower Reforms Less Radical Than Expected
This is the second of our ABNR Legal Updates on the Job Creation Bill that was passed by Indonesia’s House of Representatives on 5 October 2020 but has yet to be signed into law by the President. Today, we focus on the key changes it makes in the employment-law arena. A. Introduction As confusion reigns over the current status of the Job Creation Bill (“JCB”),[1]or “Omnibus…
13 Oct 2020
Indonesian Competition Commission Publishes New Merger Control Guidelines
On 6 October 2020, the Indonesian Competition Commission (“KPPU”) published highly anticipated Merger Control Guidelines (“Guidelines”) to clarify the Merger Control Regulation (“Regulation”) introduced in October 2019. As discussed in our legal update on the Regulation (see KPPU Flexes Muscles with Revamped Merger Control Guidelines), the introduction of the Regulation…
12 Oct 2020
ABNR Comes Home with Haul of Trophies from 2020 ALB Indonesia Law Awards
ABNR’s position as one of Indonesia’s top-3 law firms was confirmed once again at the seventh iteration of the prestigious Asian Legal Business (ALB) Indonesia Law Awards on Oct. 8, which saw the firm emerge joint runner-up in terms of number of awards received, taking the trophies for the following categories: Managing Partner of the Year (Mr. Emir Nurmansyah) Arbitration Law Firm of…
08 Oct 2020
Reformist Job Creation Bill Passed by Indonesia’s House of Representatives
In our ABNR Legal Update on the Job Creation Bill that was published on 26 February 2020, we commented as follows: The opportunity to effect fundamental economic reforms, such as those proposed in the Bill, is greater now than at any time since the dawn of the New Order in the mid-1960s. This is because the Government currently enjoys an overwhelming majority in the DPR[1] that is unprecedented in…
08 Oct 2020
Indonesia’s FSA issues New Risk Management Rules for Non-bank Financial Institutions
A. Overview The Indonesian Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) has issued OJK Regulation No. 44/POJK.05/2020 (“POJK 44”) on Risk Management at Non-bank Financial Institutions (“NBFI”),[1] which came into effect on 2 September 2020. Broadly speaking, POJK 44/2020 builds on and expands the risk-management principles[2] set out in its antecedent…