Bank Indonesia Issues New Regulation on Prudential Rules for Offshore Debt and FX-denominated Liabilities in Banking Sector (06/03/2019)
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 – ...
Bank Indonesia Revisits Forex-Activity Reporting Requirements (04/03/2019)
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 ...
Director General of Foreign Trade Issues Guidelines on Mandatory Use of Domestic Insurers for Prescribed Imports/Exports (01/03/2019)
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 ...
Mandatory Halal Certification in Indonesia: Government Regulation Expected to be Issued Soon (25/02/2019)
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 ...
Non-Tariff Barriers Have Potential to Frustrate Intra-ASEAN Exporters, but Complaints Mechanism is Available (20/02/2019)
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 ...
Indonesia Establishes Legal Framework for Futures Trading of Crypto Assets (18/02/2019)
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 ...
Indonesia’s OJK Puts Framework in Place for Establishment of Securities Finance Agency (29/01/2019)
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 ...
Repatriation of Export Earnings to Indonesia: New Regulation Signals Stricter Approach (28/01/2019)
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 ...
ABNR Enhances Client Service with Appointment of Three New Partners (28/01/2019)
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 ...
Indonesia’s OJK Redefines Rules Governing Finance Companies (24/01/2019)
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 ...