Allen & Overy LLP (JD Supra Indonesia)

On 2 November 2020, Indonesia’s Law on Job Creation went into effect. The Law, amends or revokes over 78 existing laws and introduces new provisions with the aim of increasing investment into Indonesia, and in turn creating jobs. It aims to resolve areas which have frequently caused problems for investors, including: (i) cumbersome licensing procedures; (ii) contradictory regulations and...

On 2 October 2020, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan – OJK) issued Circular Letter No. 19/SEOJK.05/2020 on the Distribution Channel of Insurance Products (the Circular Letter), which provides detailed guidelines for insurance companies, and counterparties, with respect to the marketing and distribution of insurance products.

Like in many other jurisdictions, panic selling amid the Covid-19 coronavirus outbreak has caused significant price fluctuations for securities listed on the Indonesian Stock Exchange (IDX).

The OJK introduced new regulation to facilitate the transformation of foreign bank branches into subsidiaries and address certain existing uncertainties in executing bank M&A. The key change is the introduction of branch conversion and integration – mechanisms allowing foreign bank branches to become Indonesian banks.

From January 2020, there has been a relaxation to the existing restrictions on foreign equity ownership of an Indonesian insurer, which will “grandfather” existing foreign ownership interests in excess of the 80% threshold and permit capital increases and spin-offs of Sharia units by insurers without strict adherence to the 80:20 rule.

2020 expected to be a spotlight year for ASEAN and South Asia Debt Capital Markets 2019 has been a busy year for the A&O ASEAN and South Asia Debt Capital Markets teams. With the arrival of two new partners, Pallavi Gopinath Aney and Felipe Duque, and the promotion of Aloysius Tan to partnership in Singapore, our practice is thriving.

New MEMR regulation has reduced the capacity charge that has hindered installation of behind the meter rooftop solar photovoltaic projects.

Speed read - New merger control guidelines in Indonesia provide that asset acquisitions are now transactions that need to comply with merger notification obligations, despite the Anti-Monopoly Law and government regulation clearly limiting the obligation to obtain merger control approval for share acquisitions only.

President Joko Widodo of Indonesia recently issued a new Presidential Regulation on battery-powered electric road vehicles. It regulates the manufacture of battery-powered electric road vehicles and components and the construction of electric vehicle charging stations, and it also sets out government incentives available to spur the new market.

OJK recently passed a new regulation on increasing the capital of public companies through pre-emptive rights. This regulation consolidates two regulations regarding pre-emptive and non pre-emptive capital increase of public companies. The change tightens the shareholders’ approval requirement for a non pre-emptive rights issuance carried out by a public company (which is not in financial...

BKPM is moving in a new direction on certain approvals for changes to shareholder ownership in PMA mining companies. The new rule replaces the old paper-based licences and approvals method (issued by BKPM) with submissions now being made through the Online Single Submission System. Going forward, BKPM approval for a change of shareholder in a PMA mining company, which has traditionally been a...

The OJK recently passed Regulation No.9/POJK.04/2018 on Public Company Takeover, which revokes Rule No.IX.H.1. Key changes under the new regulation are a) a takeover that is carried out through a rights issue of the target listed company is no longer exempt from the MTO obligation; b) the MTO can be carried out by a more than 50%-owned subsidiary of the acquirer; and c) there will be no extension

Businesses in Indonesia are entering a digital era of licensing. The Government has taken a significant step in changing how it delivers its licensing services by adopting the Online Single Submission (OSS) system, a fully-fledged electronic licensing model, which became operational on 9 July 2018.

Indonesia has enacted Regulation no.14/2018 on Foreign Ownership of Insurance Companies, which came into force on 18 April 2018 and confirms a maximum threshold for foreign ownership of an Indonesian insurance company of 80%. The new regulation provides welcome clarification of the law relating to ownership and foreign participation in the Indonesian Insurance Industry.

The Ministry of Energy and Mineral Resources (MEMR) has recently issued Regulation No. 49 of 2017 (Reg.49/2017) amending Regulation No. 10 of 2017 on Principles of Power Purchase Agreements (Reg. 10/2017) in Indonesia. Reg. 49/2017 resolves one of the concerns raised by Reg. 10/2017 previously voiced by market participants, leaving other concerns unresolved, particularly in relation to force...

Six months after issuing Regulation 11/2017 on the utilisation of natural gas for power generation, the Minister of Energy and Mineral Resources has replaced it with Regulation 45/2017 on the same topic. Reg. 45/2017 raises the ceiling of the gas purchase price by PLN and IPPs, and maps out a possible future IPP scheme by which PSC Contractors are allowed to develop Wellhead Power Plants through...

Indonesia just issued a new regulation (Reg. 42/2017) that extends governmental control on private and foreign investment in the energy and mining sectors. Whilst similar forms of control already existed in the upstream oil & gas and mining sectors, Reg. 42/2017 now extends these to the downstream oil & gas and power sectors. The new regime will directly impact investment strategies in these...

On 14 March 2017, the Financial Services Authority (Otoritas Jasa Keuangan, the OJK) issued Regulation No.11/ POJK.04/2017 on Reporting of Substantial Shareholdings in Public Companies (POJK 11/2017). This new regulation revokes and replaces Regulation No.60/POJK.04/2015 on Disclosing Information on Certain Shareholders (POJK 60/2015). On the same day, OJK also issued Regulation No.10/POJK.04/201

The Ministry of Energy and Mineral Resources of the Republic of Indonesia (MEMR) recently issued regulation No. 12 of 2017 on the utilisation of renewable energy sources for electricity supply (Regulation 12/2017). Key points: This regulation supplements recent regulations issued by MEMR for specific types of renewable energies (minihydro, solar, biomass and biogas).

The Ministry of Energy and Mineral Resources of the Republic of Indonesia (MEMR) recently issued Regulation No. 10 of 2017 on Principles of Power Purchase Agreements (Regulation 10/2017) which sets out a number of principles and key provisions which need to be reflected in power purchase agreements (PPAs) entered into between PLN and independent power producers (IPPs).

The Ministry of Energy and Mineral Resources of the Republic of Indonesia (MEMR) recently issued MEMR Regulation No. 11 of 2017 on the Utilisation of Natural Gas for Power Generation (Regulation 11/2017). Key points: Regulation 11/2017 governs the utilisation of natural gas for power plants owned by either PT Perusahaan Listrik Negara (Persero) (PLN) or Power Generation Business...

The Government of the Republic of Indonesia on 11 January 2017 issued new mining regulations regulating (i) ‘new’ share divestment requirements for foreign investment companies holding an IUP or IUPK; and (ii) new export requirements for contract of works (CoW) holders who will likely be required to convert their CoW into an IUPK in order to continue exporting mineral concentrates.

Shortly after the issuance of a new regulation for the development of solar power projects in Indonesia, the Government of Indonesia is now introducing a new regulation on the purchase of electricity by PLN from biomass and biogas power projects (Minister of Energy and Mineral Resources Regulation No. 21 of 2016 – Reg 21/2016). These are the key features of the new regulation: - Biomass and...

The Government of Indonesia has just announced it will tender out at least 5,000MW of solar projects by the end of 2018 based on a newly enacted regime for the development of PV solar projects. The regime detailed in the recently issued regulation (Reg 19/2016) introduces an entirely new procedure for the tendering and award of solar projects which includes: - a capacity quota system; -