White & Case LLP (JD Supra Indonesia)

President Joko Widodo issued Government Regulation in lieu of Law of the Republic of Indonesia No. 1 of 2020 on the National Finance and Financial System Stability Policy for Handling Corona Virus Disease 2019 (COVID-19) Pandemic and/or in Order to Face Threats that Endanger the National Economy and/or Financial System Stability (“Perpu 1/2020”). Perpu 1/2020…

The Indonesian Supreme Court has reinstated the right of secured creditors to file a bankruptcy and suspension of payment (Penundaan Kewajiban Pembayaran Utang or PKPU) process.

The Indonesian government has made several key changes to the foreign ownership regime for companies in the Indonesian insurance sector. Government Regulation No. 3 of 2020 on the Amendment to Government Regulation No. 14 of 2018 on Foreign Ownership of Insurance Sector Companies (the "2020 Amendment"), which came into force on 20 January 2020, amends the "grandfathering" provisions under the...

A recent debtor-friendly Indonesian Constitutional Court decision (putusan) raises uncertainty as to a creditor's right to exercise its self-help remedy (parate executie) in respect of assets subject to fiducia security. While this decision warrants caution on the part of creditors, our view is that it will not significantly impact the sophisticated commercial loan market in Indonesia.

The incumbent, Joko Widodo, declared victory in Indonesia's presidential elections over his challenger and former general Prabowo Subianto. The election commission said Mr. Widodo, widely known as Jokowi, won 55.5 percent of the vote with his rival, Prabowo, on 44.5 percent. Here we put the spotlight on what can be expected of a Jokowi government with respect to energy and infrastructure policy...

(a)Decision: The WTO Appellate Body has affirmed that claims against Indonesia under the WTO Agreement on Safeguards should be dismissed on the grounds that the challenged duty was not actually a "safeguard measure". All disputing parties had agreed that Indonesia's duty on iron or steel was a safeguard measure, but the Appellate Body rejected this consensus position. The Appellate Body...

...The WTO Appellate Body has ruled that certain import licensing measures maintained by Indonesia constitute impermissible import restrictions under Article XI:1 of the General Agreement on Tariffs and Trade (GATT) 1994.

Decision - A WTO Panel has dismissed claims against Indonesia under the WTO Agreement on Safeguards on the grounds that the challenged duty was not actually a "safeguard measure". All disputing parties had agreed that the specific duty on iron or steel was a safeguard measure, but the Panel rejected this consensus position.

New regulations issued by the Indonesian Financial Services Authority (Otoritas Jasa Keuangan "OJK") aim to increase the number of public offerings in Indonesia by (1) shortening the regulatory review period by adopting a parallel submission process for OJK and IDX and (2) simplifying certain OJK submission requirements. In addition, new disclosure requirements are expected to further improve the

The Indonesian Minister of Energy and Mineral Resources ("MEMR") recently issued further regulations to reflect changes to the divestment process introduced under Government Regulation No. 1 of 20171 ("GR 1/2017"). This follows two other MEMR regulations issued earlier this year relating to the export of raw materials further to GR 1/2017, discussed in our recent Client Alert...

The Indonesian government ("Government") has issued a number of regulations to implement its mining policy, including GR 1/of 2017. In moving towards a single Special Mining Permit Operation Production license (IUPK Operasi Produksi or "IUPK OP") licensing regime, the Minister of Energy and Mineral Resources ("MEMR") issued Regulation No. 15 of 2017 ("Reg. 15/2017") on 10 February 2017 which

On March 14, 2017, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or "OJK") issued two regulations impacting voting rights at a General Meeting of Shareholders of Public Companies ("GMS") and transparency of ownership, in line with efforts by the Indonesian government (the "Government") to increase its ranking in the World Bank Group's Ease of Doing Business index,...

In light of rapid developments in the e-commerce industry in Indonesia, the Ministry of Communication and Informatics ("MOCI") issued Circular Letter No. 5 of 2016 on the Limitations and Responsibilities of Platform Providers and Merchants in E-Commerce Using User-Generated Content Platforms (the "Circular") on 30 December 2016. The Circular is a further step towards implementing the National...

Recent Indonesian regulations1 implement a series of changes in respect of the regulation of the export of raw ores and concentrates but in doing so also implement very significant changes in respect of the conversion of contracts of work into Special Mining License (Izin Usaha Pertambangan Khusus – "IUPK") and the requirement for divestment to local parties.

In light of the rapid development of peer-to-peer (P2P) lending using information technology (IT) ("P2P Lending") in Indonesia, on 28 December 20161 the Indonesian Financial Services Authority ("OJK") enacted OJK Regulation No. 77/POJK.01/2016 regarding IT Based Lending Services ("Regulation"). The Regulation introduces various guidelines, obligations and restrictions relevant to P2P Lending...

Law No. 19 of 2016 on the Amendment to Law No. 11 of 2008 on Electronic Information and Transactions ("Amendment") took effect on 25 November 2016. Aiming to accommodate recent developments in the electronic information and transactions ("EIT") sector in Indonesia, the Amendment contains several new provisions that mainly concern law enforcement, sanctions and privacy issues, and clarifies the...

In light of evolving technological innovation and information systems in Indonesia, especially those related to e-commerce and the financial technology industry, the Indonesian government seeks to more properly regulate electronic payment systems and transactions in Indonesia. This spirit is reflected in the 14th Economic Policy Package announced on 10 November 2016....

On 17 October 2016, President Joko Widodo signed Government Regulation No. 40 of 2016New Tax Incentives for Indonesian REITs"). 1 ("GR 40"). GR 40 changes the tax rate imposed on the transfer of property (land and building) under the DIRE2 scheme which regulates Indonesian real estate investment trusts (REITs). GR 40 took effect on 17 October 2016 and is a further step towards implementation of...

In 2011, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan – "OJK") replaced Bank Indonesia ("BI") as the supervisory body for financial institutions (which includes Indonesian banks and domestic branch offices of foreign banks) further to Law No. 21 of 2011 ("Law No. 21"). Since the issuance of Law No. 21, the OJK has been restating, and in some cases revising, certain BI...

On 18 May 2016, the Indonesian Government enacted Presidential Regulation No. 44 of 2016, which sets out the new negative investments list (the “2016 Negative List”) and revokes the 2014 Negative List. The 2016 Negative List has been issued following extensive discussions within the Indonesian Government and corporate sector. It is intended to help increase Indonesia’s regional competitiveness...

The Indonesian Financial Services Authority (Otoritas Jasa Keuangan - "OJK") has recently issued Regulation No. 20/POJK.04/2016 ("Regulation 20/2016") on the Licensing of Securities Companies that Conduct Business Activities as Underwriters and Brokers which replaces Bapepam-LK Regulation No. V.A.1 (Regulation "V.A.1") on the Licensing of Securities Companies. The new Regulation 20/2016 came into

On 29 March 2016, the Indonesian Coordinating Ministry of Economy officially announced the 11th Economic Policy Package (“11th Package”). The 11th Package outlines several policy changes, including lowering the tax rate on the sale of property under the real estate investment trusts (“REITs”) scheme.

On 23 September 2014, Indonesia’s parliament (the “DPR”) passed the insurance bill into law (the “New Insurance Law”). The New Insurance Law is awaiting the signature of the President and therefore has not been officially published by the Government. The New Insurance Law will come into force on the earliest of either the date on which it is signed by the President, or 23 October 2014....

Introduction and Background - As participants in the Indonesian mining sector continue to consider the implications of the 2009 mining law requiring certain types of in-country processing and beneficiation, the Indonesian Government has introduced related regulations on (a) the thresholds that will trigger compliance and (b) an interim tax regime governing exports of processed but not yet...

Introduction On 13 September 2013, the Indonesian government (through the Minister of Energy and Mineral Resources (the “MEMR”)) demonstrated its ongoing determination to implement the divestment requirement of the 2009 Mining Law by issuing Regulation No. 27 of 2013 on Procedures for Divestment and Share Pricing and Changes to Investment in Mineral and Coal Mining Businesses (“Reg 27/2013”).

Background - On 26 December 2012 (the “Effective Date”), Bank Indonesia (“BI”) published Regulation No. 14/24/PBI/2012 (“Regulation 14”) which contains a revised version of the single presence policy applicable to banks (the “Policy”). Regulation 14 has been much anticipated by market participants. It amends and supersedes the previous version of the Policy which was issued by BI in 2006.

Background - On 2 January 2013, Bank Indonesia (“BI”) issued Regulation 14/26/PBI/2012 on the business activities and branch or office networks of banks (“Regulation 14”). Regulation 14 has been keenly anticipated by market participants, particularly as it introduces a multiple licensing policy for banks operating in Indonesia. Regulation 14 is one of a series of regulations and policies...

On 13 July 2012, Bank Indonesia ("BI") released regulation 14/8/PBI/2012 on the ownership of Indonesian banks (the "Regulation"). The issue of limitations on bank ownership has been of significant concern to existing and prospective investors in Indonesia’s banking sector and press coverage of this topic has been extensive. The Regulation contains restrictions on bank ownership that affect...