23 Dec 2021
Indonesia Moves to Boost Crypto-Asset Market for Traders and Investors
Few markets have been left untouched by the rapid growth in the popularity of crypto currencies and other forms of crypto assets. As governments around the world adopt crypto regulation and policies, Indonesia has evolved a relatively well-defined stance towards crypto assets and is considered reasonably open to blockchain technology. Nevertheless, a solid crypto-asset market has yet to be established…
22 Dec 2021
‘Omnibus Law’ Ruling Presents Further Challenge to Rollout of Risk-based Business Licensing System
The Constitutional Court recently declared the Job Creation Law (colloquially, the “Omnibus Law”) “conditionally unconstitutional” (see our ABNR Legal Update here for more detail). Prior to the Court’s ruling, the Government had already issued a number of important implementing regulations for the Omnibus Law, including Government Regulation No. 5 on Risk-Based Business…
29 Nov 2021
Omnibus Law Declared ‘Conditionally Unconstitutional’: What Exactly Does it Mean?
In a decision published on 25 November 2021, the Indonesian Constitutional Court (“the Court”) ruled that Law No. 11 of 2020 on Job Creation (colloquially, the Omnibus Law) is “conditionally unconstitutional”. Amending or repealing 78 statutes in the economic field, the Omnibus Law was hailed as the most significant legal reform in Indonesia since the adoption of the Civil…
15 Nov 2021
Indonesia’s State Enterprises Ministry Introduces Overhaul of SOE Directors’ Selection Process
A. Introduction In order to improve the quality and accountability of new appointees to directorships in State-Owned Enterprises (“SOE Directors”), the Ministry of State-owned Enterprises (“SOE Ministry”) has issued Regulation No. Per-11/MBU/07/2021 on Requirements and Procedures for the Appointment and Removal of Directors of SOEs (“Reg. 11/2021“),[1] which revokes…
02 Nov 2021
Bank Indonesia Issues New Regulation to Boost Quality of Customer Services
In early September, the central bank, Bank Indonesia (“BI”), issued a new regulation (“PBI 23/2021”[1]) to deliver more easily accessible and better integrated services to its customers. BI customers include the Ministry of Finance, other central government institutions; local governments; non-bank state-owned enterprises; international financial institutions; foreign central…
19 Oct 2021
Indonesia’s Central Bank Strengthens Digital Payments Architecture
In line with the global trend, Indonesians have been increasingly switching to online payment platforms, which are now widely used across the country, particularly in big cities. The country’s central bank, Bank Indonesia (“BI”), responded to the trend by publishing its Indonesian Payments System Blueprint 2025 in November 2019 (the “Blueprint”), which focuses on the…
12 Oct 2021
ABNR Shines Again at ALB Indonesia Law Awards 2021
ABNR emerged as one of the top three winners at the 2021 iteration of the ALB Indonesia Law Awards, which were presented during an online ceremony on Thursday, Oct. 7. Recognizing the country’s best law firms, legal work and lawyers across all major practice areas, this year’s event saw ABNR take a total of five awards: Environmental Law Firm of the Year Maritime Law Firm of the Year Medical…
07 Oct 2021
CFDs in Indonesia: What Are They And How Are They Regulated?
A contract for difference (CFD) is essentially a form of financial derivative contract between an investor and a CFD broker, under which the investor basically bets on whether the price of a particular commodity or asset will increase or decrease over the course of the contract. If the price is higher at the end of the contract than it was at the beginning, the CFD trader pays the difference to the…
04 Oct 2021
Constitutional Court Reaffirms Fiduciary-Security Enforcement Rules
In 2020,[1] the Constitutional Court handed down a judgment that established new rules for the enforcement in certain circumstances of fiduciary-security interests under Articles 15(2) and 15(3) of the Fiduciary Security Law (“FSL”). [2] The Court held that executorial title under a fiduciary-security certificate is enforceable if the agreement between the parties sets out a mechanism…
28 Sep 2021
Some More Clarity Emerges on New Rp 10-Billion Minimum Capital Requirement for FDI Projects in Indonesia
On 11 May 2021, we published an ABNR Legal Update titled New BPKM Rules to Require PMA Companies to Have IDR 10 Billion in Paid-up Capital: Will Existing Investors Be Affected?In this update, we set out some tentative conclusions in this regard based on our enquiries and discussions with senior officials at the Ministry of Investment/Investment Coordinating Board (“BKPM”). In principle,…
22 Sep 2021
Indonesia Stock Exchange Clarifies Rules on Interim Dividends
The Indonesia Stock Exchange (“IDX”) recently issued new rules to synchronize the existing provisions on the distribution of interim and final dividends and bonus shares by listed companies. The new rules are set out in IDX Board of Directors Resolution No. KEP-00077/BEI/09-2021,[1] which entered into effect on 13 September 2021. Most of the major changes concern the rules governing the…
13 Sep 2021
OJK Introduces Further Capital-Market Incentives and Relaxations to Counter Covid Turbulence
The Financial Services Authority (“OJK”) has once again stepped up to the mark to safeguard the stability of the Indonesian capital markets against the backdrop of the ongoing Covid-19 pandemic. The financial services regulator’s latest intervention comes in the form of Circular No. 20/SEOJK.04/2021 on Further Incentives and Relaxations of Provisions Related to Issuers / Public Companies…
26 Aug 2021
New Regulations Attempt to Level Playing Field for Conventional Banks amid Indonesia’s Fintech Boom
Consumer interest and demand for financial services are moving in step with developments in technology. Today’s consumer demand for fast, easy, and reliable services has been a significant stimulus to the rise of financial technology (fintech) companies, which bring together the worlds of banking and IT: Banks have had no alternative but to up their game and ability to adapt in the rush to survive…
24 Jun 2021
The Government Amends Investment List: Is this Latest Cut the Deepest?
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 within Indonesia…
21 Jun 2021
‘Omnibus Law’ Manpower Regulation Turns Out to Be Mixed Bag for Indonesia’s Employers
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. From…
18 May 2021
New ‘Omnibus Law’ Regulation Makes Significant Changes to Indonesian Land Law Regime
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. Indonesia…
11 May 2021
New BPKM Rules to Require PMA Companies to Have IDR 10 Billion in Paid-up Capital: Will Existing Investors Be Affected?
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 billion[3]).…
15 Apr 2021
Omnibus Law Regulation Relaxes Indonesias Spatial Planning Rules for Investors
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 coherence in…
01 Apr 2021
Indonesias FSA Launches Revamp of Capital Markets Rules, Including First Ever Code for Voluntary Corporate Privatizations
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) public…
26 Mar 2021
After Five-Year Hiatus, Indonesian Competition Commission Imposes Fine for Late Merger Notification of Foreign-to-Foreign Transaction
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 deadline.…
24 Mar 2021
Omnibus Law Regulation on Indonesias Energy and Mining Sectors to Boost Coal Processing but Also Raises Questions
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 of the Omnibus…
18 Mar 2021
Indonesian Govt Resists Temptation to Burden Employers with Full Cost of New Unemployment Scheme
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 reductions in…
17 Mar 2021
New Omnibus Law Regulation on Indonesias National Strategic Projects Expands Availability of State Guarantees
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 in the development…
08 Mar 2021
New Omnibus Law Regulation to Increase Supervision of Indonesias Manufacturing Sector
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 manufacturing…
05 Mar 2021
New Omnibus Law Regulation Revisits Indonesias Long-running Project Land Acquisition Issue
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 large-scale…
04 Mar 2021
Indonesias Electronic Land Registration to Boost Ease of Doing Business and Enhance Legal Certainty
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 as HT-El); land title…
03 Mar 2021
Little Change for Indonesias Rail Sector under New Omnibus Law Regulation
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 still…
03 Mar 2021
New Omnibus Law Regulation More a Big Tweak than Big Bang for Indonesias Trade, Retail & Distribution Sectors
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 of eager new…
01 Mar 2021
Indonesian Govt Shows Support for Labor-intensive Sectors by Giving Nod to Wage Cuts
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 position…
24 Feb 2021
Major Liberalization of FDI Rules Heralds New Paradigm in Indonesia
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”). This New List replaces…
23 Feb 2021
Indonesias FSA Tightens Up Its Supervision of Finance Companies
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 (“Finance…
23 Feb 2021
Indonesias New State Investment Fund Likely to Be Up and Running Soon
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”) on the…
16 Feb 2021
Indonesias Ratification of Apostille Convention Should Boost Ease of Doing Business
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; and…
15 Feb 2021
Indonesian Competition Law: Draft Govt Regulation to Introduce Profit / Turnover-based Fines
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”). As part…
11 Feb 2021
After Period of Confusion, IDERA Protection in Indonesia Now Extends to Offshore Lenders
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…
11 Feb 2021
Indonesian Central Bank Regulation Introduces New FDI Restrictions in Payments Sector
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 other…
04 Feb 2021
ABNR Ranked as Tier-1 Firm for 11 Practice Areas by Legal 500 Asia Pacific
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, Aviation,…
29 Jan 2021
ABNR Recognized as Global Top-100 Firm for Cross-border Restructuring & Insolvency by GRR
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 recognition for…