JD Supra (JD Supra Indonesia)

On Friday, April 14th 2023, the Constitutional Court of the Republic of Indonesia (“MK”) handed down two decisions regarding the Judicial Review request for Law No. 27 of 2022 on Personal Data Protection (“PDP Law”) against the Constitution of the Republic of Indonesia, namely Decision No. 108/PUU-XX/2022 (“Decision No. 108”) that was petitioned for by Leonard Siahaan, and Decision No. 110/PUU-XX/

As we all know, information technology (“IT”) is rapidly developing these days, especially in the banking industry. Banks can utilize IT to support their banking activities. The purpose of banks’ utilization of IT is to gain benefits by among others increasing the efficiency and effectiveness of the bank's operations, improving services through easier cooperation with third parties, and the...

The development of information technology and digitalization requires more practical and detailed protection in its implementation, as it facilitates convenient access for business actors to connect with consumers, which also makes it easier for business actors to obtain consumers' personal data. Please see full Publication below for more information.

The President of the Republic of Indonesia issued Law No. 4 of 2023 concerning the Development and Strengthening of the Financial Sector ("P2SK Law") which comes into force on the date of its promulgation, 12 January 2023. The P2SK Law was issued to support and realize the efforts to develop and strengthen the financial sector in Indonesia in line with the development of the increasingly complex...

The sustainability of the earth's environmental ecosystem has become a global concern. In Indonesia, the Government of the Republic of Indonesia (“GOI”) has set a Net Zero Emission target for 2060. As one of the industries that serves as a backbone for Indonesia's domestic industry, the petrochemical industry is a foundation of the national industry, equivalent to the agro industry or the base...

To support the rapid dynamic of change in the financial sector caused by developments in technological innovation and financial products/services, the House of Representatives approved a bill on 15 December 2022 to be enacted as law, using the omnibus method in order to align various regulations into 1 (one) law, namely the Financial Sector Development and Reinforcement (Pengembangan dan...

Technological advances made by humans over time are increasingly developing. Currently, we are preparing ourselves to start entering the industrial revolution 5.0. Our daily activities and behavior have changed, as well as our ways in proceeding a transaction. As a result of these changes, many legal problems related to the delivery of information, communication and/or transactions electronically,

Indonesia was shaken by disastrous and discomforting news notably when the National Food and Drug Agency ("NFDA") revoked licenses for syrup-type drug production by two local pharmacy companies for violating Good Drug Manufacturing Practices (Cara Pembuatan Obat yang Baik or "CPOB"), following the temporary ban on sales of a long list of syrup-based medications consumed primarily by children...

As the economy is recovering amid the COVID-19 pandemic, the franchise business is showing positive growth in Indonesia. The COVID-19 pandemic has taught us to be better prepared in navigating through the commercial and legal domain against any similar business disruptions in the future. Therefore, it is important for both franchisor and franchisee to understand how to mitigate legal risk in...

The long-awaited Law No. 27 of 2022 concerning Personal Data Protection Law ("PDP Law") was finally ratified by the President of the Republic of Indonesia on 17 October 2022, and it is expected to become the umbrella legal framework for the protection and legal certainty of personal data in Indonesia. While the PDP Law strengthens the provisions of previous regulations on data processing and data

In Indonesian, structured warrant was first introduced by the issuance of the long-awaited regulation on structured warrant i.e., Indonesian Financial Services Authority (or Otoritas Jasa Keuangan – “OJK”) Regulation No. 8/POJK/04/2021 on Structured Warrant (“Structured Warrant Regulation”), which came into effect on 19 March 2021. Please see full Publication below for more information.

Indonesia’s G20 Presidency is a symbol of the Indonesian government’s firm determination and strong commitment to persistently and consistently accelerate the transition towards cleaner energy by emphasising “Sustainable Energy Transition” as one of the three main pillars or priority issues being brought up by the Indonesian Government with global leaders and put as a global effort to achieve a...

The Government of Indonesia has ratified the Convention Abolishing the Requirement of Legalization for Foreign Public Documents ("Convention") by way of the enactment of Presidential Regulation number 2 of 2021 on Ratification of Convention Abolishing the Requirement of Legalization for Foreign Public Documents. With Indonesia's joining as a Contracting State of the Convention, the Government of...

In the middle of 2022, the Government promulgated and enacted Government Regulation No. 23 of 2022 concerning Amendment to Government Regulation No. 45 of 2005 concerning the Establishment, Management, Supervision, and Dissolution of State Owned Enterprises (“GR 23/2022”). This regulation was issued in order to optimise the role of State Owned Enterprises (“SOE”) as agents of national development

On 4 July 2022, the Financial Services Authority (Otoritas Jasa Keuangan “OJK”) issued OJK Regulation No. 10/POJK.05/2022 on Information Technology-Based Collective Funding Services (“POJK 10/2022”) as a response to the emerging financial technology business in Indonesia, especially Peer-to-Peer Lending (“P2P Lending”). This newly issued POJK 10/2022 revoked OJK Regulation No. 77/POJK.01/2016 on...

In 2021, the Constitutional Court in Decision No. 91/PUU-XVIII/2020 dated 25 November 2021 ("CC Decision 91/2020") declared that the formation of Law No. 11 of 2020 concerning Job Creation ("Job Creation Law") was procedurally flawed (cacat formil) and the Court declared that the Job Creation Law is ‘conditionally unconstitutional’. As a result, the CC Decision 91/2020 instructs the Government of

Bank Indonesia (“BI”) has issued Bank Indonesia Regulation No. 23/6/2021 concerning Payment Service Providers (“PBI PJP”) and Bank Indonesia Regulation No. 23/7/PBI/2021 concerning Payment System Infrastructure Operators (“PBI PIP”) in order to optimize and accelerate Payment Service Provider (“PJP”) and Payment System Infrastructure Operator (“PIP”) practices. These two regulations are applied...

The long-awaited regulation regarding the imposition of Income Tax (“Income Tax”) and Value Added Tax (“VAT”) for fintech services has finally been issued by the Minister of Finance of the Republic of Indonesia (“MoF”) as the implementing regulation of Law No. 7 of 2021 regarding Harmonization of Tax Regulations (“Law 7/2021”) that was issued last year. Effective as from 1 May 2022, Income Tax...

One impact of advances in information technology has been the digitalization of the economy. This kind of advance plays a crucial role in national economic growth. Various forms of economic digitalization have resulted in the growth in numbers of technology-based financial services and crypto-asset trading. This poses a challenge for the government to provide equal treatment between digital and...

On 25 November 2021, the Constitutional Court put an end to the lengthy debates and discussions regarding the validity and effectiveness of the Job Creation Act, Law No. 11 of 2020 (the “Job Creation Act”) by issuing Decision of the Constitutional Court No. 91/PUU-XVIII/2020 (“CC Decision 91/2020”), which adjudicated the petition for a material test submitted against the Job Creation Act and in...

In early 2021, the Government of the Republic of Indonesia issued Government Regulation No. 42 of 2021 concerning Making National Strategic Projects Easier (“GR 42/2021”) and Government Regulation No. 19 of 2021 concerning the Implementation of Land Procurement for the Public Interest (“GR 19/2021”). “National strategic project” is defined as a project and/or program carried out by the central...

With the largest Moslem population in the world, Indonesia has great market potential in the halal industry. This also followed by the growing demand by Moslem consumers for halal-based products and transparency as to whether a product is halal. As a response to such growing demand and in order to provide comfort and certainty to the Indonesian Moslem community seeking to consume halal products,...

Law No. 11 of 2020 on Job Creation (“Job Creation Act”) has amended several tax laws including the Income Tax Act Law No. 7 of 1983 as amended several times, most recently by Law No. 36 of 2008 on the Fourth Amendment to the Income Tax Act Law No. 7 of 1983. The amendment provides a relaxation of income tax to support ease of doing business... Please see full Publication below for more...

Following the enactment of Law No. 11 of 2020 on Job Creation (also known as the “Job Creation Act”), the government has enacted Government Regulation No. 26 of 2021 (“GR 26/2021”) on 2 February 2021 in order to provide clear guidelines and direction for businesses in the agricultural sector which serves as an implementing regulation to Law Number 39 of 2014 on Agriculture (“Law 39/2014”) as...

As an implementation of Article 185 of Law No. 11 of 2020 concerning Job Creation (“Job Creation Act”) requiring the promulgation of implementing regulations of the Job Creation Act, the Government of Indonesia enacted Government Regulation (“GR”) No. 25 of 2021 concerning Implementation in the Energy and Mineral Resources Sector (“GR 25/2021”) on 2 February 2021, which also has provisions...

The Indonesian government has recently enacted Government Regulation No. 29 of 2021 concerning the Operation of the Trade Sector (“GR 29/2021”) as one of the implementing regulations of Law No. 11 of 2020 on Job Creation (the “Job Creation Act”). Please see full Publication below for more information.

As the Government’s response to the challenges of overlapping policies and regulations in various sectoral and regional regulations, the Government of Indonesia has enacted Law No. 11 of 2020 concerning Job Creation (“Job Creation Act”) to support the simplification of investment mechanisms and provide more certainty for investors in Indonesia. With regard to housing matters, the Job Creation Act

Following the issuance of Law Number 11 of 2020 concerning Job Creation (the "Job Creation Act"), the Indonesian government has issued 49 (forty nine) implementing regulations, consisting of 45 Government Regulations and 4 President Regulations. One of them is Presidential Regulation Number 12 of 2021 concerning Government Procurement of Goods/Services (“PR 12/2021") as an amendment to...

Following the issuance of the Job Creation Act Law No. 11 of 2020 (“Omnibus Law”), the Indonesian Government has issued several implementing regulations, among which are Government Regulation No. 7 of 2021 concerning the Ease, Protection and Empowerment of Cooperatives and Micro, Small and Medium Enterprises (“MSMEs”) (“GR 7/2021”) and Government Regulation No. 8 of 2021 concerning Companies’...

New “priority list” for foreign investment The Indonesian government has issued Presidential Regulation No. 10 of 2021 (the “Regulation”) at the end of February, following the passage of its job creation law last year known as the Omnibus Law. Notably in the Regulation, the previous negative investment list set out in Presidential Regulation No. 44 of 2016 (the “Negative List”) is now...