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…