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Electronic Certificates Regulation issued by the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency
Makarim & Taira S., February 2021

On 12 January 2021, the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (“MOA”) issued Regulation No.1 of 2021 on Electronic Certificates (“MOA Reg. 1/2021”). This new regulation is intended to optimize the use of information and communication technology by implementing electronic-based land services and thus improve public services and the ease of doing business. Under MOA Reg...

Indonesia’s Newly Established Sovereign Wealth Fund: A New Chapter in Indonesia’s Economy
Makarim & Taira S., February 2021

As a developing country, Indonesia is still considered to have limited Government fiscal capacity and limited state-owned enterprise (Badan Usaha Milik Negara – “BUMN”) and financial sector funding capacity indicating that domestic capacity is not sufficient to meet what is needed to finance development and support economic growth and opportunities...

New Regulation on Electronic System Organizers in the Private Sector
Makarim & Taira S., February 2021

The Minister of Communication and Informatics (“MOCI”) has finally issued MOCI Regulation No. 5 of 2020 on Electronic System Organizers (“ESO”) in the Private Sector (“MOCI Regulation 5/2020”) that serves as the new implementing regulation of Government Regulation No...

The New Indonesian Umbrella Regulation on Payment Systems: Key Points that Foreign Investors Should be Aware of
Makarim & Taira S., February 2021

On 30 December 2020, Bank Indonesia issued Bank Indonesia Regulation No. 22/23/PBI/2020 of 2020 on Payment Systems (“Payment Systems Regulation”). The Payment Systems Regulation is intended to serve as an “umbrella” regulation that provides a regulatory framework for the Indonesian payment systems industry. This regulation will come into force on 1 July 2021...

Indonesia’s Ratification of the Convention Abolishing the Requirement to Legalize Foreign Public Documents
Makarim & Taira S., February 2021

On 4 January 2021, the President of Republic of Indonesia issued Regulation No. 2 of 2021 on the Ratification of the Convention Abolishing the Requirement to Legalize Foreign Public Documents (“PR 2/2021”) (the convention is hereinafter referred to as the “Apostille Convention”). The Apostille Convention was concluded on 5 October 1961 and is intended to simplify a series of formalities for documents signed overseas for the contracting states...

The Job Creation Law & Highlighted Changes to The Manpower Law
Makarim & Taira S., December 2020

Introduction On 5 October 2020, the House of Representatives and the Indonesian Government passed the Omnibus Law Bill which has been enacted as Law No. 11 of 2020 on Job Creation (“Job Creation Law”). Almost 30 days after being passed, on 2 November 2020, the Indonesian President signed the draft bill...

The Arrival of the Long Awaited KBLI Numbers in Fintech
Makarim & Taira S., December 2020

On 24 September 2020, Statistics Indonesia (Badan Pusat Statistik - “BPS”) issued BPS Regulation No. 2 of 2020 on Indonesian Standard Business Classifications (Klasifikasi Baku Lapangan Usaha Indonesia - “KBLI”), which is known as the 2020 KBLI. The 2020 KBLI came into force on its issuance date and revoked BPS Regulation No. 95 of 2015 on the KBLIs, as amended by BPS Regulation No. 19 of 2017, which is known as the 2017 KBLI...

Brief Introduction to Indonesia’s Job Creation / Omnibus Law on Broadening of the Investment Ecosystem and Business Activities, the Ease of Doing Business and Acceleration of National Strategic Projects Oriented Towards National Interests
Makarim & Taira S., December 2020

Law No. 11 of 2020 on Job Creation (the “Job Creation Law” or known as the Omnibus Law) was issued and came into effect on 2 November 2020. It is mainly based on the principles of the equalization of rights, legal certainty, greater ease of doing business, togetherness, and independence...

New KPPU Guidelines on Merger Control Rules
Makarim & Taira S., December 2020

KPPU has recently issued its long-anticipated guidelines on the Indonesian merger control rules (“KPPU Guidelines”) under KPPU Regulation No. 3 of 2019 on The Assessment of Mergers or Consolidations of Business Entities or Acquisitions of Shares in Companies (“KPPU Regulation 3/2019”) issued at the end of last year. The guidelines are relatively long and detailed (almost 100 pages), and some of their content is still subject to the KPPU’s interpretation...

Regulating the Growth of Electronic and Digital Banking Services
Makarim & Taira S., December 2020

With the rapid development of technology and the rise of new finance products and players in the fintech industry, banks are pushed to produce new products and innovative services in order to serve their customers and keep abreast of the behaviour of consumers who appreciate the convenience of digital services. In response to this, the Financial Services Authority (Otoritas Jasa Keuangan -- OJK) has issued OJK Regulation No. 12/POJK...

The Indonesian Government’s Relaxation for Foreigners Entering Indonesia
Makarim & Taira S., December 2020

On 29 September 2020, the Minister of Law and Human Rights (“MOLHR”) issued Minister of Law and Human Rights’ Regulation Number 26 of 2020 on Visas and Stay Permits During the Adaptation to the New Normal Period (“MOLHR Reg. No...

Bill on Stamp Duty
Makarim & Taira S., September 2020

In the first week of September 2020, the House of Representative passed the Bill on Stamp Duty and now it is waiting for approval by a plenary meeting of the House. The Bill is expected come into effect on 1 January 2021 given the time needed to issue the implementing regulation and for public awareness. The Bill will only recognize a single stamp duty, Rp10,000 unlike the current law which recognizes two stamp duties (Rp3,000 and Rp6,000)...

Government Measures in Employment Sector in Response to the COVID-19 Pandemic in Indonesia
Makarim & Taira S., May 2020

The Indonesian Ministry of Manpower (“MOM”) and some other Ministries have issued a number of regulations and policies or guidelines to manage and control the impact of the spread of COVID-19 in the Indonesian employment sector. Please find below a summary of the government measures:  I. Employers are encouraged to prepare plans to take preventive measures against the further spread of COVID-19 and to maintain the continuity of their businesses...

Public Service Obligation = Subsidy? A Case Study From BUMN
Makarim & Taira S., May 2020

What is the Public Service Obligation (PSO)? Whose obligation is it? What is the realization of the PSO? Some of us may not be familiar with the PSO and what actually means for a country. This article provides a general understanding of the PSO and particularly, how the PSO can affect us directly. First things first, what is the PSO? The PSO is a concept commonly adopted by all nations and as you might guess, it is the obligation of the government to serve the public...

The Enforceability of Interim Relief (Repossession) Under the Cape Town Convention and the Indonesian Aviation Law in Practice
Makarim & Taira S., April 2020

The Convention on International Interests in Mobile Equipment (“Cape Town Convention”) and Protocol to the Convention on International Interests in Mobile Equipment on Matters Specific to Aircraft Equipment (“Protocol”) were concluded in Cape Town on 16 November 2001, and entered into force on 1 March 2006. They are to be read and interpreted as one instrument...

Country-by-Country Guide: Government Measures Taken in Response to COVID-19
Makarim & Taira S., April 2020

Please find a summary of regulations related to COVID-19 in more than 32 countries (including Indonesia prepared by our Firm) as per 22 April 2020 below. Economic Measures Loan Facilities: The Indonesian Financial Services Authority (OJK) issued Regulation No. 11/POJK.03/2020 (March 16, 2020), which relaxes the loan quality assessment and restructuring requirements for borrowers affected by COVID-19 until March 31, 2021...

Hearing at the District Court During the COVID-19 Spread
Makarim & Taira S., April 2020

The COVID-19 spread in Indonesia has caused several institutions in Indonesia to make certain adjustments, including in to hearings in district courts. On 23 March 2020, the Supreme Court issued Circular Letter No. 1 of 2020 on Guidance for the Implementation of Work during the Prevention of the Spread of Corona Virus Disease 2019 (COVID-19) within the Supreme Court and the other Courts, as was later amended by Circular Letter No...

National Disaster Declaration for COVID-19 Pandemic
Makarim & Taira S., April 2020

President Joko Widodo has finally declared the spread of Coronavirus Disease 2019 (“COVID-19”) a National Disaster under Presidential Decree No. 12 of 2020 (“PD 12/2020”) which was issued on Monday, 13 April 2020. Through PD 12/2020, the President has strengthened the role of the National Disaster Mitigation Agency (Badan Nasional Penanggulangan Bencana/ “BNPB”) as the COVID-19 Task Force (Gugus Tugas Percepatan Penanganan Coronavirus 2019)...

New Regulations and Policies Related to the COVID-19 Pandemic in Indonesia
Makarim & Taira S., April 2020

With the number of cases continuing to increase exponentially on a daily basis, the Coronavirus Disease 2019 (“COVID-19”) has now been determined a global pandemic by the World Health Organization (WHO) and has affected at least 213 countries across the world. On 2 March 2020, the Indonesian President, Joko Widodo announced the country’s first confirmed case...

BKPM Regulation No. 1 of 2020: Guidelines on the Provision of Integrated Electronic Business Licensing Services
Makarim & Taira S., April 2020

Overview On 1 April 2020, the Investment Coordinating Board (Badan Koordinasi Penanaman Modal – “BKPM”) issued BKPM Regulation No. 1 of 2020 on Guidelines on the Provision of Integrated Electronic Business Licensing Services (“BKPM Reg. 1/2020”).This regulation was issued to improve and streamline the licensing services provided through the Online Single Submission (“OSS”) System, to implement Article 94 (1) of Government Regulation No...

The Change to the Procedure for Case Management of Partnership Cases
Makarim & Taira S., April 2020

On 17 October 2019, the Indonesian Commission for the Supervision of Business Competition (“KPPU”) issued KPPU Regulation No. 4 of 2019 on The Procedure for Supervising and the Management of Partnership Cases (“KPPU Reg. 4/2019”) which revoked several previous KPPU regulations, i.e. KPPU Regulation No. 1 of 2017 on The Procedure for the Management of Partnership Cases (as amended) (“KPPU Reg. 1/2017”), and KPPU Regulation No...

Fiduciary Security Execution Redefined: The Indonesian Constitutional Court Ruling on Article 15 (2) and (3) of the Fiduciary Security Law
Makarim & Taira S., April 2020

Background On 15 February 2019, a petition for a judicial review was submitted by two individuals (“Petitioners”), claiming that their constitutional rights had been violated by Article 15 (2) and Article 15 (3) of Law No. 42 of 1999 on Fiduciary Security (“Fiduciary Security Law”)...

New Regulation on the Consolidation of Commercial Banks
Makarim & Taira S., April 2020

The Financial Services Authority (Otoritas Jasa Keuangan/“OJK”) recently issued OJK Regulation Number 12/POJK.03/2020 of 2020 on the Consolidation of Commercial Banks (“OJK Reg 12/2020”). This new regulation aims for strengthening the structure, resilience, and competitiveness of the national banking industry to support national economic stability and growth through the strengthening of bank capital and the consolidation of banks in Indonesia...

COVID-19 Pandemic Regulations in Finance Tax and Import Sectors
Makarim & Taira S., April 2020

Upon the ongoing spread of coronavirus disease (“COVID-19”) pandemic, the Indonesian Government has declared the COVID-19 as a national emergency situation. Following the nation’s COVID-19 emergency, the Indonesian Government have issued sets of regulations and policies in various sectors in order to control and mitigate the adverse impacts of the COVID-19 pandemic...

The Impact of the COVID-19 Pandemic on Enforcement of Merger Control Rules in Indonesia
Makarim & Taira S., April 2020

In relation to the COVID-19 emergency, the Indonesian Commission for the Supervision of Business Competition (“KPPU”) has made several adjustments to the enforcement of merger control rules through announcements in its official website and a press release stating that, as of 16 March 2020, they temporarily suspended all law enforcement activities, including notification filing and notification reviewing, until 6 April 2020...

 

 

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