To create stability in the macroeconomy and the domestic financial market, the government of Indonesia has issued several regulations in relation to natural resource export proceeds.
On 28 July 2023, speaking at a seminar at KPPU’s head office, the competition authority’s Director of Mergers and Acquisitions indicated that KPPU may consider applying a new method for calculating administrative fines taking into account the sanctioning provisions under the Government Regulation No. 44 of 2021. This would enable KPPU to impose fines of more than the nominal limit of IDR 25 billion set under the Government Regulation No. 57 of 2010, increasing the legal risks for failing to file merger notices on time.
Following its launch in April 2023, the online notification form introduced by KPPU sets out a new set of tests for determining whether, and to what extent, a change of control has occurred in a non-majority acquisition. We summarize these tests to help you understand how KPPU will view and assess change of control in non-majority acquisitions.
On 11 July this year, the Indonesian Financial Services Authority (OJK) issued the long awaited OJK Regulation No. 11 of 2023 on Spin-off of Sharia Units of Insurance Companies and Reinsurance Companies, which replaces the provisions on sharia unit spin-off of insurance and reinsurance companies in OJK Regulation No. 67/POJK.05/2016 on Licensing and Institution of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies and Sharia Reinsurance Companies.
KPPU (the Indonesian Competition Commission) continues its enforcement against rigged bids, although bid-rigging investigations no longer dominate its caseloads. Initial indications of rigged bids have been confirmed by the issuance of KPPU Chairman Regulation No. 3 of 2023 on Guidelines on Tender Conspiracy Prohibition.
Aiming to prevent anti-competitive policies being issued by various governmental institutions, on 31 March 2023 KPPU – the Indonesian Competition Commission, issued KPPU Regulation No. 4 of 2023 on the Provision of Inputs and Suggestions for Government Policies in relation to Monopolistic and/or Unfair Business Practices. In the past, various governmental policies, particularly on imports, quotas and commodities, have caused market distortion and resulted in KPPU issuing orders against other governmental institutions. Members of the public, including business entities, are welcome to provide input to KPPU if they become aware of a potentially anti-competitive governmental policy.
Baker McKenzie is proud to launch a series of webinars aimed at helping employers understand current employment trends and issues in the South East Asia region. Some of the topics discussed are Alternatives to the Traditional Employment Model, and complexities of Workforce Optimization.
In April 2023, in two separate judgments, the Constitutional Court clarified the interpretation of some provisions in Law No. 27 of 2022 on Personal Data Protection, i.e., provisions on personal or household processing of personal data and on the limitations of a data subject’s rights in relation to national security and defense.
After more than 20 years enforcing the Anti-Monopoly Law (Law No. 5 of 1999 on the Prohibition of Monopolistic and Unfair Business Practices), KPPU – the Indonesian Competition Commission – having experienced the highs and lows of investigating a wide range of anticompetitive behavior, issued KPPU Chairman Regulation No. 2 of 2023 on Guidelines for Assessing Negative Impact from Monopolistic and Unfair Business Practices.
On 3 March 2023, the Indonesian Ministry of Energy and Mineral Resources enacted the Regulation on the Implementation of CCS (Carbon Capture and Storage) and CCUS (Carbon Capture, Utilization and Storage) in Upstream Oil and Gas Business Activities (MEMR2/2023). The Regulation covers a wide range of matters, including planning of CCS and CCUS projects, implementation, monitoring, CO2 measurement, reporting and verification, financing and monetization and closure of CCS and CCUS projects.