New BPKM Rules to Require PMA Companies to Have IDR 10 Billion in Paid-up Capital: Will Existing Investors Be Affected? (06/05/2021)
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 ...
‘Omnibus Law’ Regulation Relaxes Indonesia’s Spatial Planning Rules for Investors (15/04/2021)
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 ...
Indonesia’s FSA Launches Revamp of Capital Markets Rules, Including First Ever Code for Voluntary Corporate Privatizations (01/04/2021)
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, ...
After Five-Year Hiatus, Indonesian Competition Commission Imposes Fine for Late Merger Notification of Foreign-to-Foreign Transaction (26/03/2021)
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 ...
‘Omnibus Law’ Regulation on Indonesia’s Energy and Mining Sectors to Boost Coal Processing but Also Raises Questions (24/03/2021)
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 ...
Indonesian Gov’t Resists Temptation to Burden Employers with Full Cost of New Unemployment Scheme (18/03/2021)
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 ...
New ‘Omnibus Law’ Regulation on Indonesia’s National Strategic Projects Expands Availability of State Guarantees (17/03/2021)
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 ...
New ‘Omnibus Law’ Regulation to Increase Supervision of Indonesia’s Manufacturing Sector (08/03/2021)
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 ...
New ‘Omnibus Law’ Regulation Revisits Indonesia’s Long-running Project Land Acquisition Issue (05/03/2021)
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 ...
Indonesia’s Electronic Land Registration to Boost Ease of Doing Business and Enhance Legal Certainty (04/03/2021)
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 ...
Little Change for Indonesia’s Rail Sector under New ‘Omnibus Law’ Regulation (03/03/2021)
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 ...
New ‘Omnibus Law’ Regulation More a ‘Big Tweak’ than ‘Big Bang’ for Indonesia’s Trade, Retail & Distribution Sectors (03/03/2021)
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 ...
Indonesian Gov’t Shows Support for Labor-intensive Sectors by Giving Nod to Wage Cuts (01/03/2021)
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 ...
Major Liberalization of FDI Rules Heralds New Paradigm in Indonesia (24/02/2021)
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. ...
Indonesia’s New State Investment Fund Likely to Be Up and Running Soon (23/02/2021)
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 ...
Indonesia’s FSA Tightens Up Its Supervision of Finance Companies (23/02/2021)
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 ...
Indonesia’s Ratification of Apostille Convention Should Boost Ease of Doing Business (16/02/2021)
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 ...
Indonesian Competition Law: Draft Gov’t Regulation to Introduce Profit / Turnover-based Fines (15/02/2021)
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 ...
After Period of Confusion, IDERA Protection in Indonesia Now Extends to Offshore Lenders (11/02/2021)
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 ...
Indonesian Central Bank Regulation Introduces New FDI Restrictions in Payments Sector (11/02/2021)
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 ...
ABNR Ranked as Tier-1 Firm for 11 Practice Areas by Legal 500 Asia Pacific (04/02/2021)
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 ...
ABNR Recognized as Global Top-100 Firm for Cross-border Restructuring & Insolvency by GRR (29/01/2021)
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 ...