News

New Legislation to Kick Start Much Needed Health Sector Reform in Indonesia

12 Sep 2023 With Indonesians spending an eye-watering Rp 100 trillion (USD 6.6 billion) on overseas healthcare every year, the government and national parliament have finally moved to institute a number of much-needed reforms to the domestic health sector, notwithstanding entrenched opposition from the country’s doctors. The reforms are set out in a new omnibus health law (Law No. 17 of 2023) that entered…

ABNR Acts for PT Bank IBK Indonesia on USD 66-million Rights Issue

06 Sep 2023 ABNR advised PT Bank IBK Indonesia Tbk, the Indonesian majority owned subsidiary of South Korea’s state-owned Industrial Bank of Korea, on their recent rights issue that raised approximately IDR 1 trillion (USD 66 million), after deduction of fees and costs. The transaction was closed on 28 July 2023. The rights issue was conducted in order to give effect to Industrial Bank of…

If at First You Don’t Succeed! Indonesian Gov’t Makes Renewed Push to Compel Repatriation of Export Dollars in Commodities Sector

30 Aug 2023 A. Introduction With the rupiah coming under sustained pressure in recent months, the government has launched a renewed push to compel the repatriation of commodity export earnings to Indonesia by issuing Government Regulation No. 36 of 2023 on Export Proceeds from the Exploitation, Management and/or Processing of Natural Resources (“GR 36”),[1] which requires exporters in the mining,…

Students gain exciting insight into the legal world at ABNR Open Day

09 Aug 2023 We are thrilled to share the success of our ABNR Open Day, held on Saturday, August 5, 2023. The event welcomed a diverse group of 100 aspiring law students from various universities across Indonesia, offering them a firsthand glimpse into the world of a modern commercial law firm. Our team was delighted to extend a warm welcome to the students, fostering a unique opportunity for them to interact…

ABNR Advises MoneyGram on Indonesian Regulatory Aspects of Their Acquisition by Madison Dearborn

04 Aug 2023 ABNR advised PT MoneyGram Payment System Indonesia, the Indonesian subsidiary of MoneyGram International Inc. (“MoneyGram”), on the Indonesian regulatory aspects of the recently closed acquisition of MoneyGram by funds associated with Madison Dearborn Partners (“MDP”). MoneyGram is a leading financial technology company that connects the world's communities, while MDP is…

ABNR Acts for Geo Energy on Acquisition of Indonesian Coal Interests from Rajawali Group

28 Jul 2023 We would like to congratulate our client, Singapore-Indonesian coal producer Geo Energy Group, on the signing of the conditional share sale and purchase agreements (CSPA) for their acquisition (through subsidiary PT Geo Energy Investama) of (i) a controlling interest in Rajawali Group subsidiary PT Golden Eagle Energy Tbk (GEE), an Indonesia Stock Exchange (IDX)-listed coal mining group; and (ii)…

KPPU Responds to Technological Change Through New Rules on Determination of Relevant Markets

21 Jul 2023 In response to rapid technological change, the chair of the Indonesian Competition Commission (KPPU) has issued a new set of rules on the determination of relevant markets (KPPU Chairman’s Regulation No. 4 of 2022 / Reg. 4/2022[1]). The previous regulation on the issue, KPPU Regulation No. 3 of 2009, was revoked by KPPU Regulation No. 9 of 2022 (effective 28 December 2022). Whilst broadly retaining…

Indonesia Issues New Rules for Identifying and Designating Prospective Mining Areas

12 Jul 2023 A. Introduction On 5 May 2023, the Indonesian Government issued Regulation No. 25 of 2023 on Mining Areas (“GR 25/2023”)[1], which introduces a new regulatory framework for the identification and designation of mining areas. A “Mining Area” is defined in GR 25/2023 as “an area that is designated in the national spatial plan as having mineral and/or coal resources, irrespective…

Gov’t Moves to Boost Interest in Indonesia’s New Capital through Improved Investment Facilities and Licensing Procedures

16 Jun 2023 A. Introduction To follow up on the enactment of Law No. 3 of 2022 on the National Capital City,[1] the government has issued Government Regulation No. 12 of 2023 on Business Licenses, Ease of Doing Business, and Investment Facilities at the National Capital City (Ibu Kota Nusantara /“IKN”) (“GR 12/2023”). [2] The new regulation, effective 6 March 2023, details the crucial…

New Regulation Consolidates and Expands Shareholder Rights in Indonesian SOEs

12 May 2023 A. Introduction On 3 March 2023, the Ministry of State-Owned Enterprises (“MSOE”) issued Regulation No. PER-2/MBU/03/2023 (“Reg. 2/2023”)[1], which revokes 20 other regulations and came into force on 24 March 2023. The new regulation is part of a broader effort to streamline oversight and governance at Indonesia’s state-owned enterprises (“SOE”). To date,…

Indonesian Gov’t Gives Employers Leeway to Cut Wage Costs Amid Global Economic Challenges

04 May 2023 Background On 8 March 2023, the Minister of Manpower issued a new regulation that allows certain export-oriented, labor-intensive enterprises to reduce employees’ working hours and/or wages in order to help them survive amid the ongoing global economic turbulence and waning worldwide demand. The new rules are set out in Minister of Manpower Regulation No. 5 of 2023 (“MoM 5/2023”),[1]…

Mining Ministry Expands Online Licensing to Boost Transparency

18 Apr 2023 Digitalization of the pre-existing manual system for licensing and approval at the Directorate General of Minerals and Coal (“DGMC”) had yet to be completed when the Investment Coordinating Board (“BKPM”) launched its Risk-Based Online Single Submission System (“OSS”) for business licensing and applications in 2021, followed by the issuance of Government Regulation…