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August 2022

New Government Regulation Enabling IP-Based Financing To Support Development Of Creative Economy

On 12 July 2022, Indonesian government has enacted Government Regulation Number 24 of 2022 on the Implementing Regulation of Law Number 24 of 2019 on Creative Economy (“GR 24/2022”). As the title suggests, GR 24/2022 serves as the implementing regulation for Law Number 24 of 2019 on Creative pEconomy (“Law 24/2019”). GR 24/2022 will come into effect in one (1) year as of its enactment.   Under Law 24/2019, the Indonesian government is mandated to develop the...

March 2022

OJK Sets New Provisions on Digital Banks

By 2021, Indonesian Financial Services Authority (“OJK”) has finally issued the long-awaited Financial Services Authority Regulation Number 12/POJK.03/2021 on Commercial Bank (“POJK 12/2021”) which serves as the main regulation for commercial banks in Indonesia. POJK 12/2021 was issued for the purpose of strengthening regulatory framework of banks starting from its incorporation, operations, up to its dissolutions, required to ensure that banks are able to function...

October 2021

Re-evaluating the Benefits of Contract-Based Employment, or Lack Thereof

Under Indonesian employment law, employment may be established in the form of contract-based employment (perjanjian kerja waktu tertentu/PKWT) or permanent employment (perjanjian kerja waktu tidak tertentu/PKWTT). For years, many employers have shown certain preference to the contract-based employment over permanent employment, citing the lighter obligations imposed to the employer in the event of termination of contract-based employment compared to the termination benefits payable by the...

August 2021

BI Issues Implementing Regulation for Payment System Providers

Following the enactment of Bank of Indonesia (“BI”) Regulation Number 22/23/PBI/2020 of 2020 on Payment System (“PBI 22/2020”) which has become effective as of 1 July 2021, BI has issued BI Regulation Number 23/6/PBI/2021 on Payment System Providers (“PBI 23/6/2021”) as the implementing regulations regarding payment system providers under the framework of the new payment system introduced by PBI 22/2020. PBI 22/2020, PBI 23/6/2021 hereinafter together shall...

August 2021

Bank of Indonesia Implements the New Payment System Regulation

As of 1 July 2021, Bank of Indonesia (“BI”) Regulation Number 22/23/PBI/2020 of 2020 on Payment System (“PBI 22/2020”) which was issued on 30 December 2020 has officially become effective. Henceforth, PBI 22/2020 shall serve as the umbrella regulation of Indonesia’s payment system. PBI 22/2020 is expected to bring much-needed reformation in the payment system regulatory framework in response to the digitalization and innovation of payment system by way of...

June 2021

Risk-Based Licensing Overhauls Indonesia’s Business Licensing Regime

As an effort to boost investment and to improve business activities, Indonesia implements risk-based business licensing through the enactment of Law Number 11 of 2020 on Job Creation (“Job Creation Law”) on 2 November 2020. Risk-based business licensing was first introduced by the Job Creation Law and throughout the past few months, successive implementing regulations have also been enacted among others are Government Regulation Number 5 of 2021 on the Implementation of Risk-Based...

April 2021

Enactment of New Government Regulation Sheds Clarities on Employment Issues

On 2 February 2021, Indonesian government enacted Government Regulation Number 35 of 2021 on Contract-Based Employment, Outsourcing, Working Time and Resting Period, and Employment Termination (“GR 35/2021”). Enactment of GR 35/2021 is mandated under Law Number 11 of 2020 on Job Creation (“Job Creation Law”) as one of the implementing regulations of the Job Creation Law, specifically, GR 35/2021 serves as the implementing regulation for Article 81 of the Job Creation Law...

March 2021

Positive Investment List Issued at Last

Indonesian government finally enacted positive investment list under Presidential Decree Number 10 of 2021 on Investment Business Fields (“Positive Investment List”) on 2 February 2021. The issuance of Positive Investment List has been urged by government and Indonesian Investment Coordinating Board alike for the past few years with the aim of projecting Indonesian government’s commitment in enabling and supporting local and foreign investment and to boost the growth of micro,...

February 2021

OJK Implements New Regulation on Equity Crowdfunding

Before 2020 ends, Indonesia Financial Authority (“OJK”) issued an OJK Regulation Number 57/POJK.04/2020 on Securities Offering Through Technology-Based Equity Crowdfunding Services (“OJK Reg 57/2020”) which came into effect immediately upon its enactment on 11 December 2020. OJK Reg 57/2020 revokes OJK Regulation Number 37/POJK.04/2018 (“OJK Reg 37/2018”) which previously serves as the primary OJK regulation regarding equity crowdfunding through shares...

January 2021

Noteworthy Changes to the Employment Law

Amidst months of nationwide protests and strong opposition from various stakeholders, President Joko “Jokowi” Widodo at last signed Law Number 11 of 2020 on Job Creation on 2 November 2020 (“Job Creation Law”). Job Creation Law, also coined as omnibus law, came into effect immediately upon its enactment. It amends and/or revokes number of laws with the aim of boosting investment and promoting ease of doing business in hope of creating and increasing employment and...

September 2020

Newly issued Minister of Trade Regulation providing further clarity on E-commerce

In an attempt to provide clarity with regard to the implementation of Government Regulation Number 80 of 2019 on E-Commerce (“GR 80/2019”) which was enacted last November, Minister of Trade has issued Minister of Trade Regulation Number 50 of 2020 on Provisions regarding Business Licensing, Advertising, Development of and Supervision of E-Commerce Business Practitioners (“MoT Reg 50/2020”) on 13 May 2020. GR 80/2019 and MoT Reg 50/2020 collectively serves as the...

July 2020

Government amends Regulation on Foreign Capitals in Insurance-Related Companies

On 20 January 2020, Indonesian government enacted Government Regulation Number 3 of 2020 which regulates the foreign ownership in insurance companies (“GR 3/2020”). GR 3/2020 serves as the amendment of Government Regulation Number 14 of 2018 (“GR 14/2018”. GR 3/2020 and GR 14/2018 collectively shall be referred to as “GR on Foreign Capitals”) and was enacted amidst the massive investigation launched against large-scale corruption scandal over one of the...

July 2020

Newly Issued Government Regulation on Public Housing Savings

Two years following the enactment of Law Number 4 of 2016 on Public Housing Savings (“Law 4/2016”) in 2016, on 20 May 2020 Indonesian government at last enacted Government Regulation Number 25 of 2020 (“GR 25/2020”) as the implementing regulation for public housing savings (Tabungan Perumahan Rakyat/ “Tapera”). Tapera is implemented for the purpose of collecting and providing continuous long term low-cost funding for housing financing in order to fulfill...

April 2020

Navigating Employment Issues amidst Covid-19 Pandemic

Over the past few weeks, global economic growth has been significantly affected due to Covid-19 pandemic, so does Indonesia. As of 13 April 2020, the Indonesian government has effectively declare Covid-19 as national disaster pursuant to Presidential Decree Number 12 of 2020. Throughout these past few months, in response of such global emergency, Indonesian government has rapidly issued various regulations across several sectors, in both national as well as regional scale, all of which bear...

February 2020

Government Launches New Regulation on E-Commerce

For the purpose of the implementation of Article 66 of Law Number 7 of 2014 on Trade, the President of the Republic of Indonesia, Joko “Jokowi” Widodo has signed Government Regulation Number 80 of 2019 on E-Commerce (“GR 80/2019”) on 20 November 2019 which immediately came into effect on 25 November 2019. GR 80/2019 was enacted for the purpose of organizing a fair and reliable trading system as well as protecting national interests. This regulation will serve as an...

January 2020

OJK Launches E-Licensing System for Financial Services Sector

In an effort to streamline the licensing process in the financial services sector and also to keep up with technology advancement and globalization rapidly happening in the financial sector, Indonesian Financial Services Authority (“OJK”) introduces a one-stop electronic, integrated licensing system through the launching of an electronic licensing system (“E-Licensing System”) pursuant to OJK Regulation Number 26/POJK.01/2019 on Electronic Licensing in Financial Services...

January 2019

Indonesia to further relax export procedures

Marchio Irfan Gorbiano The Jakarta Post Published on January 25, 2019 The government said it would ease procedures to boost exports, with the aim of bolstering the country’s current account, as the trade deficit was recorded at US$ 8.57 billion in 2018, the largest deficit since 1975. Statistics Indonesia (BPS) recorded that the country had a $11.4 billion trade surplus in 2017. Coordinating Economic Minister Darmin Nasution said in Jakarta on Thursday that the government would...

January 2019

Integrated licensing service moves to BKPM building

News Desk The Jakarta Post Published on January 2, 2019  The office for the online single submission system (OSS), an integrated government licensing service, was moved to the Investment Coordinating Board (BKPM) on Wednesday from the Office of the Coordinating Economic Minister, where it had been since the OSS was established in July. The office is tasked with running the web-based system to apply for or manage business permits for companies in various sectors, excluding the...

January 2019

OJK issues crowdfunding regulation

News Desk The Jakarta Post Published on January 8, 2019 The Financial Services Authority (OJK) has issued a regulation on equity crowdfunding that offers shares through information technology. OJK Regulation No. 37/ POJK.04 /2018 issued on Dec. 31, 2018, is to provide space for startup companies to obtain funding through the stock market as well as expand financial inclusion. "The OJK as the supervisory authority applies supervision based on market conduct on...

January 2019

Government to issue new regulation on coal permits

Stefanno Reinard Sulaiman The Jakarta Post Published on November 13, 2018 The government is in the process of issuing a new regulation on coal miners, which is aimed at strengthening the position of the government. Under the planned regulation, contracts of work (PKP2B) will be replaced by the special mining permit (IUPK). Energy and Mineral Resources Ministry mineral and coal Director General Bambang Gatot Ariyono said the planned regulation was part of the efforts to reform the...