Indonesia Stock Exchange Revisits Equity Trading Rules

21 Dec 2020 The Indonesia Stock Exchange (“IDX”) has amended its regulations on the trading of equity securities through IDX Board of Directors’ Resolution No. Kep-00108/BEI/2020, which was issued on 4 December 2020 (“Amended Rules”). Below are the key changes introduced by the Amended Rules: Trading hours IDX trading hours have been revised as follows:…

Omnibus Law and Draft Regulation Relax Immigration Rules for Investors and Second Homers

30 Nov 2020 This is the ninth in our series of ABNR Legal Updates on the Job Creation Law, which entered into force on 2 November 2020. This time we look at the changes the Job Creation Law makes in the immigration sector. A Draft Government Regulation (“DGR”) on the immigration provisions of the Job Creation Law (“JCL”, or Omnibus Law, as it is familiarly known),[1] has…

‘Steady as She Goes’ in Shipping Sector as Omnibus Law Maintains Cabotage Ban, Foreign Ownership Restrictions

26 Nov 2020 This is the eighth in our series of ABNR Legal Updates on the Job Creation Law, which entered into force on 2 November 2020. This time we look at the changes the Job Creation Law makes in the shipping sector. The Job Creation Law (“JCL”, or Omnibus Law, as it is familiarly known), makes few significant changes to the regulatory regime governing Indonesia’s shipping…

Omnibus Law Plants Seeds of Change in Indonesia’s Agricultural Sector

17 Nov 2020 Greater Role for FDI and Move Away from Food Self-sufficiency Mantra This is the seventh in our series of ABNR Legal Updates on the Job Creation Law, which entered into force on 2 November 2020. This time we look at the changes the Job Creation Law makes in the agricultural sector. The Job Creation Law (“JCL”, or Omnibus Law, as it is familiarly known), makes a number…

Omnibus Law Should Boost Ease of Doing Business in Construction Sector

11 Nov 2020 This is the sixth in our series of ABNR Legal Updates on the Job Creation Law, which entered into force on 2 November 2020. This time we look at the changes the Job Creation Law makes in the construction sector. The Job Creation Law (“JCL”, or Omnibus Law, as it is familiarly known), amends a number of laws that directly affect the construction sector. These include the following:…

Jakarta Ups Minimum Wage, Ignoring Central Gov’t Call for Freeze

10 Nov 2020 Despite a recent circular issued by the Ministry of Manpower calling on provincial governors to freeze the 2021 minimum wage rates in their respective jurisdictions, the Jakarta provincial administration has opted to increase the minimum monthly wage payable in the province during 2021 by 3.27 percent to IDR 4,416,186.548 (USD 307.40[1]). The administration’s decision is…

Newsflash: Manpower Minister Advises Governors to Freeze Minimum Wage in 2021

28 Oct 2020 The Minister of Manpower (“MOM”) has requested the country’s provincial governors to keep minimum wage rates for 2021 pegged at the same levels as 2020, meaning that workers on the minimum wage would receive no pay increase next year. The request is set out in MOM Circular No. M/11/HK.04/X/2020, issued on 26 October 2020.[1] It should be noted that the setting of the…

BKPM Gets Full Authority to Issue Exemptions to Land Area Limits for Strategic Projects

23 Oct 2020 The Ministry of Agrarian Affairs and Spatial Planning (“MAASP”) has issued Regulation No. 13 of 2020 (“Reg. 13/2020,” effective 31 August 2020)[1] to amend MAASP Regulation 17 of 2019 (“Reg. 17/2019”),[2] which sets out the rules governing the granting of location permits (izin lokasi). A “location permit” is defined by Reg. 17/2019 as…

Omnibus Bill Gives Commercial Courts Jurisdiction in Competition Appeals and Overhauls Sanctions

21 Oct 2020 This is the fifth in our series of ABNR Legal Updates on the Job Creation Bill that was passed by Indonesia’s House of Representatives on Oct. 5 and sent to President Joko Widodo for signing on Wednesday, Oct.15. Today, we look at the changes it makes to Indonesia’s competition/antitrust regime. Indonesia was one of the first Southeast Asian countries to adopt comprehensive…

Omnibus Bill Set to Reform Indonesia’s FDI Regime but How Far Will Gov’t Go?

20 Oct 2020 This is the fourth in our series of ABNR Legal Updates on the Job Creation Bill that was passed by Indonesia’s House of Representatives on Oct. 5 and sent to President Joko Widodo for signing on Wednesday, Oct.15. Today, we look at the changes it makes to the rules on foreign direct investment. A. Introduction Currently, foreign direct investment (“FDI”) and…

ABNR’s Mr. Emir Nurmansyah Named ‘Southeast Asia Dealmaker of the Year’

20 Oct 2020 We are very pleased to announce that ABNR management committee member Mr. Emir Nurmansyah was named Southeast Asia Dealmaker of the Year at the 2020 iteration of the Asian Legal Business (ALB) Southeast Asia Law Awards on Oct. 15, marking the first time ever that a lawyer from Indonesia has been accorded this prestigious regional award. In addition, ABNR’s USD 1.85-billion Jambaran-Tiung…

Omnibus Bill Streamlines Indonesia’s Expatriate Employment Rules but Too Early to Say How Significantly

19 Oct 2020 This is the third in our series of ABNR Legal Updates on the Job Creation Bill that was passed by Indonesia’s House of Representatives on Oct. 5 and sent to President Joko Widodo for signing on Wednesday, Oct.15. Today, we look at the changes it makes to the rules on expatriate employment. While the need to reform Indonesia’s expatriate employment regime has long been recognized,…

New List of Standard Business Classifications Issued by Statistics Indonesia

16 Oct 2020 On 24 September 2020, Statistics Indonesia (Badan Pusat Statistik / “BPS”) issued Regulation No. 2 of 2020[1] to update its “Indonesian Standard Business Classifications” (Klasifikasi Baku Lapangan Usaha Indonesia / “KBLI”). The previous KBLI was issued in 2017. The KBLI consists of a long list of business sectors and sub-sectors that is formulated…

Amid Ongoing Confusion over Job Creation Bill, Manpower Reforms Less Radical Than Expected

14 Oct 2020 This is the second of our ABNR Legal Updates on the Job Creation Bill that was passed by Indonesia’s House of Representatives on 5 October 2020 but has yet to be signed into law by the President. Today, we focus on the key changes it makes in the employment-law arena. A. Introduction As confusion reigns over the current status of the Job Creation Bill (“JCB”),[1]or…

Indonesian Competition Commission Publishes New Merger Control Guidelines

13 Oct 2020 On 6 October 2020, the Indonesian Competition Commission (“KPPU”) published highly anticipated Merger Control Guidelines (“Guidelines”) to clarify the Merger Control Regulation (“Regulation”) introduced in October 2019. As discussed in our legal update on the Regulation (see KPPU Flexes Muscles with Revamped Merger Control Guidelines), the introduction…

ABNR Comes Home with Haul of Trophies from 2020 ALB Indonesia Law Awards

12 Oct 2020 ABNR’s position as one of Indonesia’s top-3 law firms was confirmed once again at the seventh iteration of the prestigious Asian Legal Business (ALB) Indonesia Law Awards on Oct. 8, which saw the firm emerge joint runner-up in terms of number of awards received, taking the trophies for the following categories: Managing Partner of the Year (Mr. Emir Nurmansyah) Arbitration…

Reformist Job Creation Bill Passed by Indonesia’s House of Representatives

08 Oct 2020 In our ABNR Legal Update on the Job Creation Bill that was published on 26 February 2020, we commented as follows: The opportunity to effect fundamental economic reforms, such as those proposed in the Bill, is greater now than at any time since the dawn of the New Order in the mid-1960s. This is because the Government currently enjoys an overwhelming majority in the DPR[1] that is unprecedented…

Indonesia’s FSA issues New Risk Management Rules for Non-bank Financial Institutions

08 Oct 2020 A. Overview The Indonesian Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) has issued OJK Regulation No. 44/POJK.05/2020 (“POJK 44”) on Risk Management at Non-bank Financial Institutions (“NBFI”),[1] which came into effect on 2 September 2020. Broadly speaking, POJK 44/2020 builds on and expands the risk-management principles[2] set out…

Deadline for Normalization of Immigration Status Extended from Sept. 20 to Oct. 5

30 Sep 2020 The Immigration Service has further extended the deadline for the normalization of immigration status for foreigners who find themselves in Indonesia on Emergency Stay Permits (Izin Tinggal Keadaan Terpaksa / ITKT). The latest extension, from the original deadline of Sept 20 to Oct. 5 now, has been granted in recognition of the continuing obstacles people face in regularizing their status…

Indonesia’s FSA Tightens Rules on Affiliate and Conflict-of-Interest Transactions for Listed Companies

23 Sep 2020 The Indonesian Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) has issued a new regulation on transactions involving affiliates (“Affiliate Transaction”) and conflicts of interest (“COI”). The new regulation (OJK Regulation Number 42/POJK.04/2020 / “Reg. 42”),[1] which revokes and supersedes Capital Markets and Financial Institutions…

Jakarta Hits COVID-19 Brakes as Capital Placed under Partial Lockdown Once Again

14 Sep 2020 With the number of COVID-19 cases soaring and intensive-care beds becoming scarcer in Jakarta, the region’s governor, Mr. Anies Baswedan, has issued Jakarta Gubernatorial Regulation No. 88 of 2020 (“Reg. 88”),[1] which reinstates a partial lockdown in the national capital. The previous partial lockdown (introduced in April 2020) was relaxed on June 5. The new arrangements,…

Indonesian Intellectual Property Law: New Regulation Updates Rules on Patent Transfers

10 Sep 2020 The Government has issued an important and long-awaited ancillary / implementing regulation for the 2016 Patent Law.[1] The new regulation, Government Regulation No. 46 of 2020 ("GR 46"),[2] sets out revised requirements and procedures for the registration of patent transfers and revokes the previous regulation on the same topic, namely, Presidential Regulation No. 37 of 2010 (the “Previous…

Government Underwrites Working-capital Loans to Keep Economic Wheels Turning

08 Sep 2020 The Minister of Finance (“MoF”)has issued Regulation No. 98/PMK.08/2020 to establish a government-guarantee scheme for working capital loans extended by the banking sector to large-scale businesses (“Reg. 98”).[1] The scheme is to be operated by Indonesia Eximbank, which will provide the loan guarantees, while PT Penjaminan Infrastruktur Indonesia (PII) will step…

Capital Markets: Indonesia’s FSA Tightens Material-transaction Rules for Public Companies

04 Sep 2020 The Indonesian Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) has issued a new regulation that tightens the rules on material transactions and shareholder-approval requirements in public companies, while at the same time providing some leeway for those in the financial-services sector in certain circumstances. The new rules are set out in OJK Regulation No. 17/POJK.04/2020…

New e-Commerce Rules Require Offshore Players to Establish Representative Offices in Indonesia, Provide Greater Consumer Protection

24 Aug 2020 Introduction The Ministry of Trade (“MOT”) has issued an important ancillary / implementing regulation to give effect to Government Regulation No. 80 of 2019 on E-Commerce (“GR 80/2019” – for an ABNR analysis, click here). The new regulation (MOT Regulation No. 50 of 2020 / the “Regulation”),[1] which enters into force on 19 November 2020, requires…

News Flash: Holders of Emergency Stay Permits Must Normalize Their Immigration Status by Sept. 20 or Face Sanctions

19 Aug 2020 With the onset of the Covid-19 pandemic in Indonesia, Indonesia’s Government responded by issuing Minister of Law and Human Rights Regulation No. 11 of 2020 (effective 2 April 2020),[1] which essentially closed the country’s borders to most non-Indonesians. Regulation 11 also recognized the difficulties that the holders of expiring Indonesian visas would face in leaving the…

All Change as Virtual Shareholders Meetings Become ‘New Normal’ in Indonesia

10 Aug 2020 With the Covid-19 pandemic having disrupted long established ways of doing things around the world, businesses and regulators have had to quickly adjust to the new reality. In Indonesia, two regulations issued earlier this year by the Indonesian Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) take cognizance of the changed circumstances by putting in place a…

Covid-19 in Indonesia: Is Govt Planning to Commandeer Drug Patents to Reduce Vaccination Costs?

07 Aug 2020 In a development that appears to be directly related to growing concerns over access to, and the cost of, potential Covid-19 vaccines, the Indonesian Government has issued Presidential Regulation No. 77 of 2020 on Procedures for Government Patent Use (the “Regulation”, effective 8 July 2020). While “government patent use” (Pelaksanaan Paten oleh Pemerintah / “GPU”)…

Tighter Rules on Private Placements of Debt Securities Come Into Force in Indonesia

04 Aug 2020 Private placements of debt securities, such as medium term notes, have been a hugely popular way for Indonesian corporates to raise fresh funds in recent years. This is due in no small part to the fact that they were not specifically regulated by the Indonesian Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) so that issuance process was relatively straightforward and…

New Rules on Importation of Complementary, Market Testing and After Sales Service Goods Fill Legal Void but Restrict Eligible Sectors

29 Jul 2020 The Minister of Trade (“MOT”) recently issued Regulation No. 59 of 2020 (the “New Regulation”)[1] to amend MOT Regulation No. 118/M-DAG/PER/12/2015 on the Importation of Complementary Goods and Goods for Use in Market Testing or After-sales Service (the “Original Regulation”).[2] On the upside, the New Regulation (effective 29 June 2020) clarifies…

Govt offers investors attractive new concession scheme for brownfield state assets

28 Jul 2020 The President has issued a regulation that simultaneously holds out the prospect of attractive new opportunities for private-sector investment in existing public infrastructure and greater state funding for new infrastructure. This is the upshot of Presidential Regulation No. 32 of 2020 (“PR 32”, effective 18 February 2020),[1] which introduces the limited-concession concept[2]…

OJK Can Now Order Healthy Non-Bank Financial Institutions to Shoulder Responsibility for Distressed Peers

22 Jul 2020 Following an earlier Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) regulation that may be used to require compulsory consolidation in the banking sector in order to avoid potential bank collapses,[1] healthy, well-managed non-bank financial institutions (“NBFI”) may now be required by the OJK to effectively carry the can for their ailing peers through…

Indonesia’s New Mining Law Heralds Significant Change but Challenges Lie Ahead

14 Jul 2020 Indonesia’s Parliament (Dewan Perwakilan Rakyat / DPR) and Government have availed themselves of the public’s preoccupation with the Covid-19 pandemic to successfully push through important new mining legislation with a minimum of publicity, thus avoiding the concerted opposition that thwarted earlier attempts to reform the sector. The new legislation (Law No. 3 of 2020 /…

Covid-19 in Indonesia: Jakarta Administration Lays Legal Groundwork for Reopening of Capital’s Economy

11 Jun 2020 Despite widespread media reports of disagreement between the Jakarta provincial administration and the central government over the pace of reopening of the national capital’s economy, the Jakarta administration has now fallen into line with the center’s focus on restarting full economic activity as quickly as possible. Jakarta’s new policy, which has led to the winding down…

Covid-19 in Indonesia: OJK Issues New Rules on Compulsory Consolidation in Banking Sector to Safeguard Financial System Stability

10 Jun 2020 Following the issuance of emergency legislation that gives the state special powers to contain the economic fallout of Covid-19 (“Perppu 1/2020”),[1] the Indonesian Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) recently issued Regulation No. 18/POJK.03/2020 (“POJK 18/2020”)[2] to provide a solid legal basis to require compulsory consolidation…

Covid-19 in Indonesia: Protocols Established for Reopening of Retail and Services Sectors

09 Jun 2020 The Ministry of Health (“MOH”) has recently issued guidelines for the reopening of businesses during the current winding down of partial lockdowns around the country and subsequent transition to the much vaunted “New Normal.” The guidelines for offices and industrial workplaces are provided in MOH Decree No. HK.01.07/MENKES/328/2020[1] (for an ABNR Legal Update on this…

BPOM Moves to Regulate Indonesia’s Burgeoning Online Trade in Food and Medicines

09 Jun 2020 Given the ever-increasing popularity of shopping at the click of a mouse, concerted efforts are now being made to regulate certain aspects of e-commerce that until recently were still ‘no man’s land’ in Indonesia, including the online sale and distribution of food and medicines. As part of these efforts, the National Agency for Food and Drug Control (“BPOM”)…

Covid-19 in Indonesia: New Rules on Safe Working Introduced Ahead of Reopening of Economy

09 Jun 2020 Despite a continuing rise in the number of Covid-19 cases in Indonesia, the Government is laying the groundwork for the imminent lifting of partial lockdowns[1] around the country and a general reopening of the economy based on the application of what is termed the "New Normal," which appears to basically be a shorthand, less worrying way of saying that, until a vaccine is found, Covid-19 cannot…

Aircraft Repossession in Indonesia amid Economic Fallout from COVID-19

20 May 2020 The aviation industry has been one of the hardest-hit during the COVID-19 crisis, and Indonesia is no exception. Indonesian airlines report a steep decline in the number of travelers, and some are looking at restructuring, such as through the issuance of restructuring bonds. Aircraft owners, lessors and security trustees are now weighing the risks. Desperate times require desperate measures,…

Indonesia’s FSA Relaxes ‘Single Presence Policy’ in Banking Sector but Tightens Minimum Capital Requirements

20 Apr 2020 A. Introduction The Indonesian Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) recently issued Regulation No. 12/POJK.03/2020 (“Reg. 12”, effective 17 March 2020),[1] which relaxes bank ownership rules under the OJK’s Single Presence Policy but simultaneously increases minimum capital requirements. It is important to note that Reg. 12…

Jakarta Imposes Partial Lockdown to Curb Spread of Covid-19

13 Apr 2020 Overview Following the issuance of a Minister of Health decree permitting the introduction of large-scale social restrictions (“LSSR”) in Jakarta,[1] the city’s governor, Mr. Anies Baswedan, has issued a regulation (the “Regulation”)[2] that imposes a range of specific LSSR on Indonesia’s capital. These LSSR, which effectively amount to a partial…

Indonesian Gov’t Arms Itself with Powers to Impose Local Lockdowns

08 Apr 2020 1. New Lockdown Powers The Indonesian government has taken a series of concerted steps recently to establish a solid legal framework for the imposition of what are likely to be partial or total lockdowns at the local level to contain the spread of Covid-19. The first of these steps was the declaration of Covid-19 as a public health emergency through the issuance of Presidential…

Government Temporarily Bans Most Foreign Nationals from Entering Indonesia

06 Apr 2020 In response to the Covid-19 crisis, the President officially declared a public health emergency on March 31 through the issuance of Presidential Decree No. 11 of 2020, which mandates all government institutions to take whatever measures are necessary to contain the spread of the virus. The Minister of Law and Human Rights has acted on this by issuing Regulation No. 11 of 2020 (“Reg.…

Force Majeure and Impact of Covid-19 on Contractual Obligations

31 Mar 2020 1. Introduction Given the economic dislocation caused by the rapid spread of Covid-19 around the world, many parties facing difficulties in performing contracts will obviously be thinking about their legal situation. Can they be held liable for damages for breach of contract or losses suffered by third parties due to circumstances beyond their control or does the law provide a relief…

FAQs on Legal Impact of Covid-19 in Indonesia

31 Mar 2020 With the world facing its biggest challenge of the century so far, and probably its greatest challenge since World War II, we have received a considerable number of inquiries as to how businesses should best respond to the impact of the Covid-19 crisis. Here are a number of FAQs and responses to them from our lawyers. What should I do if a commercial contract I am party to comes under…

Jakarta Manpower Office and Ministry of Manpower Issue Guidelines for Employers in Responding to Covid-19 Pandemic

24 Mar 2020 Both the Jakarta Manpower Office and the Ministry of Manpower have recently issued circulars setting out guidelines for employers on how they should respond to the impacts of Covid-19 in the workplace. In this ABNR Legal Update, we briefly summarize the key points of each circular. Jakarta Provincial Manpower Office Circular No. 14/SE/2020 on Working from Home. This circular urges…

Omnibus Bill’s Likely Impact on Foreign Direct Investment Open to Interpretation

10 Mar 2020 This is the second in our series of ABNR Legal Updates on the Bill on Job Creation (dubbed the “Omnibus Bill” / the “Bill”),[1] submitted by the Government to the National Legislative Assembly (DPR) on 12 February 2020. Today, we focus on the changes proposed by the Bill to Indonesia’s foreign direct investment regime. A. Introduction Indonesia’s…

Reformist ‘Omnibus’ Bill on Job Creation Submitted to Indonesia’s National Legislature but Long Road Still to Travel

26 Feb 2020 Introduction The Government submitted the much anticipated Bill on Job Creation (the “Bill”)[1] to the National Legislature (Dewan Perwakilan Rakyat / DPR) on Tuesday, 12 February 2020. Dubbed the “Omnibus Bill,” it contains 174 articles spread over 1,028 pages, and is undoubtedly one of the most complex, reformist and liberalizing pieces of legislation…

Constitutional Court Revisits Enforcement of Fiduciary Security

30 Jan 2020 What the Constitutional Court Says In a recent decision (the “Decision”),[1] the Constitutional Court handed down a decision on the constitutionality of Articles 15(2) and 15(3) of the Fiduciary Security Law (“FSL”). The Constitutional Court in its Decision interprets the implementation of the following provisions of the FSL: the executorial title under…

ABNR’s Top-tier Status Reaffirmed by ‘Legal 500 Asia Pacific’

20 Jan 2020 ABNR’s position as a top-tier Indonesia commercial law firm has been confirmed once again by the 2020 rankings published by leading international law firm directory The Legal 500 Asia Pacific on Thursday (Jan 16). ABNR is now ranked as a Tier-1 Firm in a total of nine practice areas: Antitrust & Competition, Aviation, Banking & Finance, Corporate & M&A, Labor…