publications

Amendment to Mineral and Coal Mining Law

By : Mutiara Rengganis, Evan J. Cane, Hafil N. Rahman

17-Jul-2020

Government of Republic Indonesia has recently enacted Law No. 3 of 2020 (“Law No. 3/2020”) concerning the Amendment of Law No. 4 of 2009 concerning Mineral and Coal Mining (“Law No. 4/2009”) and comes into effect at the same date of the enactment, which is 10 June 2020.

Law No. 3/2020 has made some material changes to provisions under the previous Law No. 4/2009 which may affect investment in mineral and coal mining sector. The following are some key changes in Law No. 3/2020 which should be taken into account when investing in mineral ...

Implementation of Know Your Beneficial Owner Principle for Limited Liability Company (June 2020)

By : Arie Armand, Benny Handoko, Alisya Anindita Febriani

26-Jun-2020

Introduction

Directorate General of General Law Administration (Direktorat Jenderal Administrasi Hukum Umum) of the Minister of Law and Human Rights (the “MoLHR”), the governmental agency which has the authority to administer the registration of legal entity in Indonesia, has taken a policy that starting from 30 January 2020, all corporations, including companies, foundations, cooperatives, firms (firma), associations, and commanditaire vennootschap shall report its Beneficial Owner (as defined below) to the MoLHR through the legal entity administration system (<...

2nd Updates on DNDF Transaction

By : Arie Armand, Agung Santoso

23-Jun-2020

On 19th March 2020, Bank Indonesia (i.e. the Central Bank of Indonesia – “BI”) has enacted Bank Indonesia Regulation Nr. 22/2/PBI/2020 (the “2nd Amendment”) concerning Second Amendment to Bank Indonesia Regulation Nr. 20/10/PBI/2018 concerning Domestic Non-Deliverable Forward Transaction (the “PBI on DNDF”) (collectively, the “2nd Amended PBI on DNDF”) which comes into effect at the same date as the enactment.

The (only) new feature installed in this 2nd Amendment is the insertion of IDR bank account ownership by Foreign ...

Regulation Update concerning Consolidation of Commercial Banks Indonesian

By : Wemmy Muharamsyah, Agung Santoso, Suherlin

21-Jun-2020

Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has recently enacted Financial Services Authority Regulation (Peraturan OJK - “POJK”) Nr. 12/POJK.03/2020 of 2020 concerning Consolidation of Commercial Banks (Konsolidasi Bank Umum) (“POJK Nr. 12/2020”) on 17 March 2020.

This POJK Nr. 12/2020 revokes the previous Bank Indonesia Regulation Nr. 7/15/PBI/2005 of 2005 as amended by Bank Indonesia Regulation Nr. 9/16/PBI/2007 of 2007 concerning Amount of Minimum Core Capital of Commercial Banks. The highlights of this POJK Nr. 12/2020 are:

  1. The ...

Regulation Update concerning Mandatory Corporate Actions for Banks

By : Wemmy Muharamsyah, Agung Santoso, Suherlin

18-Jun-2020

Indonesian Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has recently issued Financial Services Authority Regulation (Peraturan OJK - “POJK”) Nr. 18/POJK.03/2020 of 2020 concerning Written Orders for the Mitigation of Bank Problems (“POJK Nr. 18/2020”) on 21 April 2020.

In a nutshell, this POJK Nr. 18/2020 regulates these followings: (i) the conditions of banks that will receive written orders for the mitigation of bank problems (“Written Order”); (ii) the follow-up actions for banks that received such Written Order; and (iii) other requirements or ...

New Government Regulation on Implementation of Electronic Systems and Transactions

By : M. Arie Armand, Hana Monica, Cindy Rachel Jessica

05-Dec-2019

Government of Republic Indonesia has recently enacted Government Regulation No. 71 of 2019 concerning Implementation of Electronics Systems and Transactions (“GR 71/2019”).

GR 71/2019 revoked Government Regulation No. 82/2012 (“GR 82/2012”) on 4 October 2019, which has come into effect as of 10 October 2019.

The issuance of GR 71/2019 presents substantial changes that may affect current practice, among others, (i) new distinction between public-scope and private-scope electronic system operators (“ESO”); (ii) provisions on data storage location; (iii)&...

New Implementing Regulation concerning the Use of Bahasa Indonesia

By : AYMP

07-Nov-2019

President Joko Widodo has recently enacted Presidential Regulation Number 63 Year 2019 on the Use of Bahasa Indonesia (“PR 63/2019”) which comes into effect on 30 September 2019 that is more than 10 years after Law Number 24 Year 2009 on National Flag, Language, Coat of Arms and National  Anthem  (“Law  24/2009”)  was promulgated which in Article 40 of Law No. 24/2009 mandate the issuance of the presidential regulation. Below are several key provisions from PR 63/2019:

 I. MoU or Agreement

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Residential Property Ownership by Foreigners in Indonesia

By : AYMP

02-Jun-2016

On 21 March 2016, the Minister of Agrarian Affairs and Spatial Layout / Head of National Land Agency (“Minister of Agrarian”) has enacted a new Minister of Agrarian Regulation No. 13 Year 2016 regarding Procedures for Granting, Relinquishing and Transferring Ownership of Residential Property for Foreign Citizens Domiciled in Indonesia (“Minister Regulation No. 13/2016”) as a further implementation of Government Regulation No. 103 Year 2015 regarding Ownership of Residential Property of Foreign Citizens Domiciled in Indonesia (“Government Regulation No. 103/2015”), which regulates on the further guidelines ...

Current Updates on Structured Products Regulation

By : AYMP

01-Jun-2016

The Financial Service Authority (Otoritas Jasa Keuangan – “OJK”) has recently enacted Regulation No. 7/POJK.03/2016 concerning Prudential Principles in Implementing Structured Product Activities for Conventional Banks (“POJK 7/2016”). This POJK 7/2016 has come into effect on 27 January 2016 and revokes the previous regulation i.e. Bank Indonesia Regulation No. 11/26/PBI/2009 concerning Prudential Principles in Implementing Structured Product Activities for Conventional Banks. In comparison between POJK 7/2016 and the previous regulation, there are no material changes made under POJK 7/2016, save for the reporting obligation ...