Indonesia Moves to Boost Crypto-Asset Market for Traders and Investors
23 Dec 2021
Few markets have been left untouched by the rapid growth in the popularity of crypto currencies and other forms of crypto assets. As governments around the world adopt crypto regulation and policies, Indonesia has evolved a relatively well-defined stance towards crypto assets and is considered reasonably open to blockchain technology. Nevertheless, a solid crypto-asset market has yet…
Omnibus Law Declared ‘Conditionally Unconstitutional’: What Exactly Does it Mean?
29 Nov 2021
In a decision published on 25 November 2021, the Indonesian Constitutional Court (“the Court”) ruled that Law No. 11 of 2020 on Job Creation (colloquially, the Omnibus Law) is “conditionally unconstitutional”. Amending or repealing 78 statutes in the economic field, the Omnibus Law was hailed as the most significant legal reform in Indonesia since the adoption…
Bank Indonesia Issues New Regulation to Boost Quality of Customer Services
02 Nov 2021
In early September, the central bank, Bank Indonesia (“BI”), issued a new regulation (“PBI 23/2021”[1]) to deliver more easily accessible and better integrated services to its customers. BI customers include the Ministry of Finance, other central government institutions; local governments; non-bank state-owned enterprises; international financial institutions;…
Indonesia’s Central Bank Strengthens Digital Payments Architecture
19 Oct 2021
In line with the global trend, Indonesians have been increasingly switching to online payment platforms, which are now widely used across the country, particularly in big cities. The country’s central bank, Bank Indonesia (“BI”), responded to the trend by publishing its Indonesian Payments System Blueprint 2025 in November 2019 (the “Blueprint”), which focuses…
ABNR Shines Again at ALB Indonesia Law Awards 2021
12 Oct 2021
ABNR emerged as one of the top three winners at the 2021 iteration of the ALB Indonesia Law Awards, which were presented during an online ceremony on Thursday, Oct. 7. Recognizing the country’s best law firms, legal work and lawyers across all major practice areas, this year’s event saw ABNR take a total of five awards: Environmental Law Firm of the Year Maritime Law…
CFDs in Indonesia: What Are They And How Are They Regulated?
07 Oct 2021
A contract for difference (CFD) is essentially a form of financial derivative contract between an investor and a CFD broker, under which the investor basically bets on whether the price of a particular commodity or asset will increase or decrease over the course of the contract. If the price is higher at the end of the contract than it was at the beginning, the CFD trader pays the difference…
Constitutional Court Reaffirms Fiduciary-Security Enforcement Rules
04 Oct 2021
In 2020,[1] the Constitutional Court handed down a judgment that established new rules for the enforcement in certain circumstances of fiduciary-security interests under Articles 15(2) and 15(3) of the Fiduciary Security Law (“FSL”). [2] The Court held that executorial title under a fiduciary-security certificate is enforceable if the agreement between the parties sets out…
Indonesia Stock Exchange Clarifies Rules on Interim Dividends
22 Sep 2021
The Indonesia Stock Exchange (“IDX”) recently issued new rules to synchronize the existing provisions on the distribution of interim and final dividends and bonus shares by listed companies. The new rules are set out in IDX Board of Directors Resolution No. KEP-00077/BEI/09-2021,[1] which entered into effect on 13 September 2021. Most of the major changes concern the rules…
OJK Introduces Further Capital-Market Incentives and Relaxations to Counter Covid Turbulence
13 Sep 2021
The Financial Services Authority (“OJK”) has once again stepped up to the mark to safeguard the stability of the Indonesian capital markets against the backdrop of the ongoing Covid-19 pandemic. The financial services regulator’s latest intervention comes in the form of Circular No. 20/SEOJK.04/2021 on Further Incentives and Relaxations of Provisions Related to Issuers…
The Government Amends Investment List: Is this Latest Cut the Deepest?
24 Jun 2021
On May 25, the government issued an updated investment list as Presidential Regulation No. 49 of 2021 (“PR 49/2021”), which amends “PR 10/2021”, published in February this year. For further details on PR No. 10/2021, please refer to our update here. PR 49/2021 is focused on foreign investment restrictions on the drinks industry, such as Alcoholic Beverages…
‘Omnibus Law’ Manpower Regulation Turns Out to Be Mixed Bag for Indonesia’s Employers
21 Jun 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. 35 of 2021 on Fixed-term Employment Contracts, Outsourcing, Working Hours and Rest Entitlements, and Termination of Employment.…
New ‘Omnibus Law’ Regulation Makes Significant Changes to Indonesian Land Law Regime
18 May 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),[1] which entered into force on 2 November 2020. In this ABNR legal update, we discuss some of the notable items under Government Regulation No. 18 of 2021 on Land Management Rights, Land Titles, Apartment Units, and Land Registration.…
Omnibus Law Regulation Relaxes Indonesias Spatial Planning Rules for Investors
15 Apr 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 Planning. In line with one of the key aims of the Omnibus Law[1] – greater efficiency and…
Indonesian Govt Resists Temptation to Burden Employers with Full Cost of New Unemployment Scheme
18 Mar 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 Security Program. In what some see as a “sweetener” to persuade labor unions to accept…
New Omnibus Law Regulation to Increase Supervision of Indonesias Manufacturing Sector
08 Mar 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 Industry Sector. Despite decades of concerted promotion of industrial development, Indonesia’s…
New Omnibus Law Regulation Revisits Indonesias Long-running Project Land Acquisition Issue
05 Mar 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 for Development in the Public Interest. One of the key issues that has traditionally hampered…
Little Change for Indonesias Rail Sector under New Omnibus Law Regulation
03 Mar 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 required for businesses in the rail infrastructure field, while business and operating licenses will…
Indonesian Govt Shows Support for Labor-intensive Sectors by Giving Nod to Wage Cuts
01 Mar 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 employer and employee under Indonesian law, the regulation will nevertheless help to clarify the legal…
Major Liberalization of FDI Rules Heralds New Paradigm in Indonesia
24 Feb 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. 10 of 2021 on Investment and Business Lines(the “New List”). …
Indonesias FSA Tightens Up Its Supervision of Finance Companies
23 Feb 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 competitiveness and support the development of conventional and sharia finance companies…
Indonesias New State Investment Fund Likely to Be Up and Running Soon
23 Feb 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 establishment is mandated by Government Regulation No. 74 of 2020 (“Regulation 74”)…
Indonesias Ratification of Apostille Convention Should Boost Ease of Doing Business
16 Feb 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 signal to Indonesia’s legal community in particular amid the Covid-19 pandemic;…
Indonesian Competition Law: Draft Govt Regulation to Introduce Profit / Turnover-based Fines
15 Feb 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 imposed by the KPPU on violation of the Indonesian Competition Law (“ICL”).…
After Period of Confusion, IDERA Protection in Indonesia Now Extends to Offshore Lenders
11 Feb 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 as regards a key protection for creditors under the Cape Town Convention (CTC), namely, the IDERA mechanism…
Indonesian Central Bank Regulation Introduces New FDI Restrictions in Payments Sector
11 Feb 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 have an impact on businesses providing remittance, payment gateway, acquiring, and…
ABNR Ranked as Tier-1 Firm for 11 Practice Areas by Legal 500 Asia Pacific
04 Feb 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 other Indonesian firms are ranked so highly. ABNR’s top-tier recognitions are for: Competition,…
ABNR Recognized as Global Top-100 Firm for Cross-border Restructuring & Insolvency by GRR
29 Jan 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 recognized. The full GRR 100 is available at https://globalrestructuringreview.com/survey/grr-100/2020 This latest…
