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In Antitrust / Competition

Indonesia: KPPU releases 2023 annual report; continued robust enforcements and Competition Law amendment on the horizon

by , and 2 Mins Read

2023 was a transformative year for the Indonesian Competition Commission (Komisi Pengawas Persaingan Usaha, KPPU). Among others, the KPPU updated its merger control regulation and case handling regulation, introduced guidelines to help corporations identify issues in bid rigging, and updated its guidelines to define the relevant market and mechanism for payment of administrative fines by instalments. The transformation continues with the new KPPU leadership and issuance of regulation on case handling for unfair contract terms.

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In Product Regulation & Liability

Indonesia: Key updates on medical devices provision

by and 4 Mins Read

On 2 March 2023, Indonesia’s Minister of Health enacted Minister of Health Regulation on Maintenance of Medical Devices in Healthcare Facilities (“MOH Regulation 15/2023”). Under the new regulation, healthcare facilities of hospitals, local governments or communities are required to allocate a certain amount of budget to carry out medical device maintenance. This new requirement is aimed to ensure the availability of medical devices that meet service standards and requirements for quality, security, benefits, safety and feasibility of use in healthcare facilities, and to ensure the safety of users, patients and the environment in healthcare facilities.

In Product Regulation & Liability

Indonesia: CDAKB (GDP) certificate required for product registration

by and 3 Mins Read

On 11 May 2024, the Ministry of Health (MOH) issued circular letter No. FR.03.01/E/884/2024. In the Letter, the MOH announced that a Good Distribution Practice for Medical Devices (Cara Distribusi Alat Kesehatan Yang Baik or CDAKB) certificate will be required as a pre-requisite for the issuance of the product registration (izin edar).

In Antitrust / Competition

Indonesia: KPPU revises regulation on handling unfair contract terms cases

by , and 5 Mins Read

The Indonesian Competition Commission (Komisi Pengawas Persaingan Usaha, KPPU) has been carrying out enforcement against unfair contract terms (UCT) since February 2022, resulting in six decisions with three infringement findings. KPPU has the authority to examine UCT cases based on Law No. 20 of 2008 on Micro, Small and Medium Enterprises, as amended (“Law 20/2008”), and recently introduced a regulation on the procedures for handling UCT cases, in the form of KPPU Regulation No. 2 of 2024 (“New UCT Case Handling Regulation”). This new regulation revoked KPPU Regulation No. 4 of 2019 on the same topic.

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In ESG

Indonesia: Unlimited sunshine, limited solar plants quota

by , , and 1 Min Read

On 29 January 2024, the Minister of Energy and Mineral Resources (“MEMR”) issued MEMR Regulation No. 2 of 2024 on Rooftop Solar That is Connected to the Grid of a Holder of a Business License for Electricity Provision for Public Use (“Reg. 2/2024”). Reg. 2/2024 became effective on 31 January 2024 and effectively revokes the old MEMR regulation on rooftop solar (i.e., MEMR Regulation No. 26 of 2021 (“Reg. 26/2021”)).

In Antitrust / Competition

Indonesia: KPPU online merger filing portal introduces a new feature – dual nexus assessment

by , and 2 Mins Read

In the latest update of the Indonesian Competition Commission (Komisi Pengawas Persaingan Usaha, “KPPU”) online filing portal, a dual (double) nexus assessment Q&A is now required to be filled in by companies that submit a merger control notification. Although the KPPU has not issued any update to their merger filing guideline, this new questionnaire confirms how the KPPU assesses the dual nexus requirement for offshore transactions.

In Antitrust / Competition

Indonesia: KPPU hits the ground running with 100 day action plan

by , and 3 Mins Read

The new year began with the inauguration of the nine elected commissioners of the Indonesian Competition Commission (Komisi Pengawas Persaingan Usaha, KPPU). The newly inaugurated KPPU leadership hit the ground running with various engagements and announced a refined industry focus in their 100 day action plan.

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In Corporate Compliance

Indonesia: Breaking down the second amendment to the EIT Law – new provisions on electronic certificate providers, prohibited contents and mandatory use of Indonesian law

by , , , , and 1 Min Read

On 2 January 2024, the President of the Republic of Indonesia signed Law No. 1 of 2024 on the Second Amendment to Law No. 11 of 2008 on Electronic Information and Transactions (“EIT Law”) (“Amendment Law”). The Amendment Law was enacted and became effective on the same day. The Amendment Law covers some new provisions that seem to push for localization and domestic protection, such as the requirement for e-certification service providers to be domiciled in Indonesia and the requirement for international electronic contracts to be governed by Indonesian Law. The Amendment Law also elaborates on the prohibited acts under the EIT Law, and contains new provisions on government intervention.

In Indonesia

Indonesia: New E-Commerce Regulation

by , , and 9 Mins Read

The Ministry of Trade has published Regulation No. 31 of 2023 on Provisions on Business Licensing, Advertisement, Development and Supervision of Business Actors in Electronic Systems Trading (“Regulation 31”), which came into force on 26 September and revoked Minister of Trade Regulation No. 50 of 2020 on the same subject matter. This alert highlights that Regulation 31 now identifies social-commerce platforms (i.e., those platforms that feature social media functionalities) within the sphere of e-commerce operators’ business models. Regulation 31 introduces significant new restrictions on the activities of foreign merchants and e-commerce operators.

In AML & Financial Services Regulatory

Indonesia: OJK’s New Regulation on Investigation of Crimes in Financial Services Sector

by and 5 Mins Read

Law Number 4 of 2023 on the Development and Strengthening of the Financial Sector has placed OJK in a more central position to investigate crimes in the financial services sector. As an implementing rule, OJK has issued Regulation Number 16 of 2023 on Investigation of Crimes in the Financial Services Sector which covers, among other things, the general scope of crimes in financial services sector, members of authorized teams of investigators, the investigative authorities and powers, and available alternative settlement mechanics.

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