BILL ON OIL PALM: INCENTIVE PACKAGE FOR BUSINESS ACTORS
13 Oct 2017
The Indonesian Government and the House of Representatives have agreed to put the Bill on Palm Oil (the “Bill”) as a priority to be enacted in 2017. The Bill has been criticized particularly by environmental activists who argue that there is no urgency for its enactment as most of the provisions are already contained in Law No. 39 of 2004 regarding Plantation (the “Plantation Law”).…
NEW NATIONAL SPATIAL PLAN REGULATION
13 Oct 2017
In an effort to harmonize the spatial planning regulations with the national strategic projects, the Indonesian government issued, on 12 April 2017, Government Regulation No. 13 of 2017 (“Regulation 13“) regarding Amendment to Government Regulation No. 26 of 2008 regarding National Spatial Plan. Notable features of Regulation 13: Consideration of the location and utilisation purposes…
OJK TIGHTENS ITS SUPERVISION OVER BANKRUPTCY DISCLOSURE WITH NEW SANCTIONS FOR NON-COMPLIANCE
13 Oct 2017
Indonesia’s Financial Services Authority (OJK) has updated issuers and public companies’ disclosure obligations concerning bankruptcy. The regulations create a new sanctions regime for non-compliance that improves the OJK’s enforcement capacity. The changes are relevant to investors and others with an interest in Indonesia’s capital markets. They came into effect on…
SIMPLIFIED APPLICATION PROCEDURES FOR OIL AND GAS LICENSES
13 Oct 2017
To promote a more conducive investment climate, the Ministry of Energy and Natural Resources (“Ministry”) is simplifying and streamlining the procedures for the application of upstream and downstream oil and gas related licenses by way of its regulation No. 29 of 2017 concerning Licenses in the Field of Oil and Gas (“Regulation 29”). Regulation 29 came into effect one month…
MOT REGULATION 26/2017: A CLEAR IDENTITY FOR TECHNOLOGY-BASED TRANSPORTATION SERVICES
04 Aug 2017
Indonesia’s ride-hailing transportation services enjoy greater legal certainty following regulatory changes in 2016 and 2017. Operators and customer of these businesses will welcome the government’s endorsement over their legitimacy. The new regulations introduce clear definitions, sanctions, minimum tariffs, and procedures for cooperation with conventional operators. New Ministry…
NEW LEGISLATION UPGRADES MEASURES TO PREVENT FINANCIAL CRISES AND IMPROVE FINANCIAL STABILITY
04 Aug 2017
New regulations require Indonesia’s banking and finance industries to comply with heightened supervision by financial authorities. Foreign investors and customers concerned with Indonesian financial stability will welcome this new legislation. Key developments intensify reporting obligations for Systemically Important Banks, introduce tiered supervision, and raise safeguard measures. …
NEW PROVISIONS TO SUPPORT THE USE OF RENEWABLE ENERGY FOR ELECTRICITY GENERATION
04 Aug 2017
Indonesia’s renewable energy sector is attracting greater government support this year. New regulations improve clarity for investors interested in solar, wind, hydro, geothermal, and bio-gas projects. They introduce incentives, detail procedures for renewable power purchase agreements, and update tariff rates. Despite the primary role that coal and gas continue to play in meeting Indonesia’s…
NEW MINERAL EXPORT RULES AND IMPLICATIONS FOR MINING COMPANIES
04 Aug 2017
Indonesian Government Regulation No.1 2017 triggers major shifts in the country’s mineral and coal mining industries. Mineral mining companies who depend heavily on mineral exports will be particularly affected by the new policies. Primary changes require all companies operating under a Contract of Work to transfer to a single licensing regime, and introduce stringent mineral export processing…
OJK’S REGULATION ON FINANCIAL TECHNOLOGY-BASED LENDING SERVICES
28 Apr 2017
To support the development of technology-based financial industry in Indonesia, in December 2016, the Financial Services Authority (“OJK”) issued OJK Regulation No. 77/POJK.01/2016 regarding Technology-Based Fund-Lending Services (“POJK 77/2016”). In its press release, the OJK stated that the regulation was also designed to protect consumer and national interests while…
GUIDANCE ON THE HANDLING OF CORPORATE CRIMES - SUPREME COURT REGULATION NO.13 OF 2016
28 Apr 2017
The Supreme Court made a significant move which marks a new development in the Indonesian corporate criminal liability legislation, by enacting its Regulation Number 13 of 2016 regarding Manner and Procedure for the Handling of Crimes Committed by Corporations (“Regulation 13/2016”). Consisting of 37 articles, this Regulation 13/2016 is meant to provide law enforcers with…
BILL ON ANTITRUST – PROPOSING AMENDMENTS TO THE CURRENT ANTITRUST LAW
28 Apr 2017
The Indonesian antitrust bill (the “Bill”) is still being deliberated in the House of Representatives (DPR). The Bill was originally proposed in 2014 in the National Legislation Program (Prolegnas), a program established by the DPR and the Government as an instrument for the formation of legislation. It is unclear whether the Bill will be further amended and when or if it will finally…
NEW CONSTRUCTION SERVICES LAW – LAW NUMBER 2 OF 2017
28 Apr 2017
It took 17 years for Indonesian legislators to produce a new generation law on Construction Services. The bill, passed by the House of Representatives at the end of December 2016, became law on January 12th, 2017 and was officially announced as Law Number 2 of 2017 (“New Construction Law”). Replacing Law Number 18 of 1999 (“Old Construction Law”), the New Construction…
