Blog Category: Legal Updates

E-commerce in Indonesia – Legal and Regulatory Framework

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The Indonesian government initially adopted a conservative and relatively traditional approach to regulating internet-based activities. Prior to 2008, there was no legislation or guidelines in Indonesia that regulated the internet and how electronic information was offered and consumed, for both commercial and non-commercial purposes. In the five to seven years before 2008, Indonesia experienced the … E-commerce in Indonesia – Legal and Regulatory Framework

Corporate M&A in Indonesia – Overview of Regulatory Field

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Purchasing shares in a company, either from a selling shareholder or from the company itself, is the most common type of share acquisition in Indonesia. Asset acquisitions are also becoming more common for individuals acquiring business units. Other methods include mergers or amalgamations, where the target company may be dissolved into the surviving company and … Corporate M&A in Indonesia – Overview of Regulatory Field

Indonesian Bankruptcy and PKPU Proceedings in a Time of COVID-19

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By Denny Rahmansyah and Mahareksha Singh Dillon The COVID-19 pandemic has caused more economic harm to Indonesia than the subprime mortgage crisis in 2008. As part of efforts to check the spread of the virus, the Indonesian government has implemented a policy of Large-Scale Social Restrictions (Pembatasan Sosial Berskala Besar or \"PSBB‚Äù), requiring most businesses … Indonesian Bankruptcy and PKPU Proceedings in a Time of COVID-19

Indonesian Government Grants Flexibility for Use of Gross Split and Cost Recovery PSCs

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According to reports and anecdotal evidence, many players in the Indonesian upstream oil and gas industry consider the latest form of Production Sharing Contract (“PSC“) using the gross split mechanism less attractive than the cost recovery PSC. So, in an effort to attract new investors and maintain existing investors, the Minister of Energy and Mineral … Indonesian Government Grants Flexibility for Use of Gross Split and Cost Recovery PSCs

Going Online: Indonesia’s OJK Establishes Mechanism for Electronic Securities Offering

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Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan or “OJK“) has issued OJK Regulation No. 41/POJK.04/2020 regarding the Implementation of Electronic Securities Offerings in the Form of Equity Securities, Debt Securities and/or Sharia Bonds (July 2, 2020) (“Regulation“). The Regulation stipulates that offerings of equity securities, debt securities and sharia bonds be done electronically, with the … Going Online: Indonesia’s OJK Establishes Mechanism for Electronic Securities Offering

No New Mining Licenses – A Reminder to Governors in Indonesia

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Indonesia’s acting Director General of Mining and Coal (“DGMC“) has issued a letter to the country’s provincial Governors to emphasize that the moratorium on the issuance of new mining licenses is still in place. DGMC letter No. 809/30.01/DJB/2020 (“DGMC Letter 809/2020“), issued July 9, 2020, emphasizes the transitional provision of Article 173C of Law No. … No New Mining Licenses – A Reminder to Governors in Indonesia

Indonesia Looks to Regulate Private Electronic System Organizers

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The Indonesian Minister of Communication and Informatics (“MOCI“) is working on a draft regulation on the governance of private scope electronic system organizers (the “Draft Regulation“). If enacted, the Draft Regulation would have a significant impact on how electronic system organizers (“ESOs“), specifically private scope ESOs (“Private ESOs“), implement their activities in Indonesia. It could … Indonesia Looks to Regulate Private Electronic System Organizers

COVID-19: KPPU and OJK Address Mergers Between Problematic Banks in Indonesia

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By Ira A. Eddymurthy and Indrawan D. Yuriutomo In response to the COVID-19 pandemic and its possible effect on the banking and financial sectors, Indonesia\'s Financial Services Authority (Otoritas Jasa Keuangan or \"OJK‚Äù) has issued a regulation to encourage mergers between problematic banks. OJK Regulation No. 18/POJK/03/2020 regarding Written Order to Handle Problematic Banks (“POJK 18/2020“) … COVID-19: KPPU and OJK Address Mergers Between Problematic Banks in Indonesia

New Local Content Regulation for Pharmaceutical Products in Indonesia

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In an effort to strengthen domestic pharmaceutical manufacturers and decrease the dependency on imported raw materials, the Indonesian government issued Presidential Directive No. 6 of 2016 on the Acceleration of the Development of the Pharmaceutical and Medical Equipment Industry. Then, on May 29, 2020, the Minister of Industry (“MOI“) enacted MOI Regulation No. 16 of … New Local Content Regulation for Pharmaceutical Products in Indonesia