News

Fiducia Security Alert: Constitutional Court decision hampers summary execution by Fiducia Security grantees

The Indonesian Constitutional Court (the “Constitutional Court”) recently rendered a controversial binding decision, namely decision No. 18/PUU-XVII/2019 (the “Decision”), following the judicial review of several provisions under Law No. 42 of 1999 concerning Fiducia Security (the “Fiducia Law”) with respect to the statutory right to summary execution or self-executory righs vested in creditors (i.e. the… Read More »

Construction Alert – New Policy on Licensing for Foreign Construction Services to Raise Indonesia’s Ranking of Ease Doing Business Index

Just 5 months after its issuance, Regulation of Minister of Public Works and Public Housing (“MPWPH”) No. 09/PRT/M/2019 on the Guidelines for the Licensing of  Foreign Construction Services Business Entities (“Reg 9/2019”) was revoked by Regulation of MPWPH No. 17/PRT/M/2019 (“Reg 17/2019”,  – see our previous newsletter on Reg 9/2019). The revocation was in line with… Read More »

New rules on outsourcing – things to observe

The Minister of Manpower (previously Ministry of Manpower and Transmigration) (“MOM”) recently amended several basic rules of outsourcing in Indonesia by issuing Regulation No. 11 of 2019 (“Regulation 11/2019”). This is the second amendment to MOM Regulation No. 19 of 2012 (“Regulation 19/2012”). This Newsletter edition summarizes the major changes to the outsourcing requirements: Registration… Read More »

Construction Alert: Abrogation of Building Construction Permit (IMB)?

There have been various news reporting the government’s plan to simplify the issuance process of IMB, which is considered by many investors to be time consuming and costly. The government, through the Minister of Agrarian Affairs and Spatial Layout or Head of the National Land Agency (Menteri Agraria dan Tata Ruang/Kepala Badan Pertanahan Nasional (ATR/BPN),… Read More »

LIMITED STAY VISA APPLICATION ALERT: Indonesian Government Relaxes Limited Stay Visa Application Policy

A month following the issuance of BKPM Regulation No. 5 of 2019 (“Reg 5/2019”) last July (please click here for further information on Reg 5/2019), BKPM together with the Ministry of Law and Human Rights of the Republic of Indonesia recently announced a new policy that simplifies the requirements for limited stay visa (visa tinggal… Read More »

DIVESTMENT RULES AND NEW INVESTMENT REQUIREMENTS ALERT: Major Amendments to BKPM Investment and Divestment Requirements

The Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal or “BKPM”) recently issued Regulation No. 5 of 2019 (“Reg 5/2019”), amending the previous Regulation No. 6 of 2018 on the Guidelines and Procedures for Licensing and Investment Facilities (“Reg 6/2018”). Reg 5/2019 introduces several important changes to the previous regulation, especially on matters relating to… Read More »

CLIENT ALERT: New Construction Licensing Procedures and Rules

The Minister of Public Works and Public Housing (“MOPWH”) recently issued 2 (two) new regulations, namely (i) Regulation No. 8/PRT/M/2019 on Licensing Guidelines for National Construction Services Business (“Reg 8/2019”), and (ii) Regulation No. 9/PRT/M/2019 on Licensing Guidelines for Foreign Construction Services Business Entities (“Reg 9/2019”), synchronizing the licensing procedures with Indonesia’s Online Single Submission… Read More »

Changes In Antitrust Case Handling Procedure

On 4 February 2019, the Indonesian Business Competition Supervisory Commission (“KPPU“) issued KPPU Regulation No. 1 of 2019 on Antitrust Case Handling Procedure (“Reg 1/2019”), replacing and revoking the previous regulation on the same matter, namely KPPU Regulation No. 1 of 2010 (“Reg 1/2010”). Reg 1/2019 comes into effect on its issuance date and introduces… Read More »

CLIENT ALERT: Construction Certificates Are Now Digitalized (New Regulation by Ministry of Public Works and Public Housing)

Following the trend towards electronic licensing by the Indonesian Government, the Minister of Public Works and Public Housing recently issued Circular Letter No. 06/SE/M/2019 on Certificates of Business Entity (Sertifikat Badan Usaha, briefly “SBU”), Certificates of Expertise (Sertifikat Keahlian, briefly “SKA”) and Certificates of Work Skills (Sertifikat Keterampilan, briefly “SKTK”) (“Circular 6/2019”). Essentially, the new… Read More »

Client Alert: Ojk Issues New Regulation On Multifinance Activities: Allowing Direct Cash Finance Loans & 0% Dp For Vehicle Financing

After almost five years, the Indonesian Financial Services Authority or OJK (Otoritas Jasa Keuangan) finally issued the long awaited new regulation governing multifinance activities in Indonesia, namely OJK Regulation No. 35/POJK.05/2018 on Multifinance Activities (“POJK 35”), replacing the previous OJK Regulation No. 29/POJK.05/2014 (“POJK 29”) on the same matter. The significant changes introduced by POJK… Read More »