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Cyber Security Archive

Asia Pacific: State of Play – Supply Chains & Trade Realignment

Over a year into the global pandemic, businesses have had to pivot to survive and adjust to new ways of conducting business. Now, more than ever, Asia Pacific business leaders are making the necessary strategic changes to meet the needs of a vastly changed business landscape — and deciding where legal expertise may be needed most to limit and manage disruption and soften risks. This report will delve into how businesses view rising protectionism, regulatory scrutiny and foreign investment restrictions, and how these views are directly impacting their supply chain strategies.

Asia Pacific: The Future of Disputes: Asia Pacific

Continuing our series of video chats on the Future of Disputes in Asia Pacific, we take a look at C&I trends and developments across the region. Mini vandePol, head of the Firm’s Asia Pacific Compliance & Investigations Group, and Georgie Farrant, head of Australia’s Dispute Resolution team, talk about global C&I trends that impact clients operating in Asia Pacific such as ESG, economic sanctions, anti-bribery/corruption developments and compliance programs.

Asia Pacific: State of Play — Supply Chains and Trade Realignment

This report, the first of four in our Asia Pacific Business Renewal Series, will delve into how businesses view rising protectionism, regulatory scrutiny and foreign investment restrictions, and how these views are directly impacting their supply chain strategies.

Indonesia: New business activities and facilities provided in special economic zones

Government Regulation No. 40 of 2021 on the Organization of Special Economic Zones was issued as one of the implementing regulations of Law No. 11 of 2020 on Job Creation. GR-40 is consistent with the changes set out by Article 150 of the Omnibus Law on the amendment of the SEZ Law. The only differences concern the added scope of business lines provided under GR-40. In particular, GR 40 sets out more comprehensive provisions than the general provisions stipulated in the Omnibus Law and offers more facilities in SEZ.

Indonesia: New licensing and legal framework regime for incentives on procurement of raw and supporting materials

Government Regulation No. 28 of 2021 on Organization of Industry Sector is consistent with the changes set out by Article 44 of Law No. 11 of 2020 on Job Creation. The implementing regulation mainly establishes a new regime of licensing and a new legal framework for future incentives related to the procurement of raw and supporting materials.

Asia Pacific: The Future of Disputes: Asia Pacific

In the first episode, Nandakumar Ponniya, chair of the Asia Pacific Dispute Resolution Group, Cynthia Tang, head of the Hong Kong Dispute Resolution team, and Yoshiaki Muto, head of Tokyo’s Dispute Resolution team, discuss developments in commercial litigation around four key areas: (1) technology, (2) mediation, (3) international commercial courts, and (4) class actions in Asia Pacific.

Singapore: Singapore ratifies RCEP trade agreement

Singapore’s Ministry of Trade and Industry announced that on 9 April 2021, Singapore deposited its instrument of ratification with the Secretary-General of ASEAN and became the first country to complete the official process for ratification of the Regional Comprehensive Economic Partnership (RCEP) Agreement.

Indonesia: Omnibus Law – Implementing Regulation on Halal Product Assurance

In brief On 2 November 2020, President Joko Widodo enacted Law No. 11 of 2020 on Job Creation (“Omnibus Law“), covering amendments to various laws and regulations in Indonesia, including on halal product assurance. Article 48 and Article 185 (b) of the Omnibus Law mandated the Government to issue new regulations to implement the amendments.

Indonesia: Building Up Regulations to Support Digital Economy

The issuance of Law No. 11 of 2020 on Job Creation (commonly known as the “Omnibus Law”) and its implementing regulations, in particular Government Regulation No. 46 of 2021 on Postal, Telecommunication and Broadcasting (“Regulation 46”) and Presidential Regulation No. 10 of 2021 on Capital Investment Business Fields (commonly known as the “Priority List”), proposes significant regulatory changes to the technology and telecommunication sectors. With the various liberalization and investment incentives offered, the government expects to boost growth in these sectors, both encouraging local players as well as attracting foreign investors. 

On the other hand, the government also wants to be more involved and to have more monitoring authority in the technology and telecommunication sectors, where services can be provided and offerings can be made seamlessly from offshore to Indonesia without any actual presence in Indonesia.

International: Resolving Disputes with the Tax Authorities

Scrutiny by tax authorities can only be expected to intensify because of the pandemic’s impacts on the global economy and tax revenues. As companies themselves recover and reassess their affairs post-pandemic, timely resolution of tax disputes is ever-critical. To help you understand tax dispute resolution options available by jurisdiction, the time investments needed, and facilitate

Indonesia: Omnibus Law – Government issues regulation on definite period employment agreements, outsourcing, working and resting hours and termination of employment

On 2 February, the Indonesian government enacted a number of implementing regulations of Law No. 11 of 2020 on Job Creation (“Omnibus Law”), though many were only made available to the public on 21 February.

One of the enacted implementing regulations is Government Regulation No. 35 of 2021 on Definite Period Employment Agreements, Outsourcing, Working and Resting Hours and Termination of Employment (“Regulation 35”).

Indonesia: Omnibus Law – Draft regulations published setting new Anti-Monopoly Law sentencing standards

On 4 February 2021, the Government published its long-awaited draft implementing regulations on the job creation law (the “Omnibus Law”).  Previously, the competition authority could impose an administrative fine for competition law infringements of up to IDR 25 billion. The new maximum penalty will be either 50% of the profit gained by the violating party in the period in which it was in violation or 10% of its revenue. The new regulations also introduce other factors to be considered in determining penalties, as well as amendments to the appeals procedure.

It is unclear when this draft, which was to be issued within three months after enactment of the Omnibus Law, i.e. 2 February, will be signed and in force.

Indonesia: Constitutional Court confirms OTT services remain subject to the EIT Law; Broadcasting Law does not apply in OTT platforms

The Constitutional Court recently issued a judgment rejecting a request to include Over the Top (OTT) services under the scope of Law No. 32 of 2002 on Broadcasting as amended by Law No. 11 of 2020 on Job Creation (“Broadcasting Law”). The judgment saves OTT services operators from licensing and censorship requirements under the Broadcasting Law. If the court had granted the request, OTT services operators would have needed to be licensed as broadcasting institutions and be subject to censorship by the movie censorship board. The judgment confirms that OTT services are not subject to the Broadcasting Law and remain subject to Law No 19 of 2016 on Amendment of Law No. 11 of 2008 on Electronic Information and/or Transaction (“EIT Law”).

The Constitutional Court’s judgment is final, binding, and not subject to appeal.

The judgment was rendered following an application for constitutional review of the above provision by two conventional broadcasting operators who perceived that there is unequal treatment against them and OTT service operators.

Indonesia: LPI – A New Hope for Investments in Indonesia

Under Law No. 11 of 2020 on Job Creation (Omnibus Law), which came into force on 2 November 2020, the government is mandated to promptly issue implementing regulations of the Omnibus Law. To have Indonesia’s sovereign wealth fund (Lembaga Pengelola Investasi or LPI) up and running, the government has issued two government regulations on LPI. The first one1 is on state participation in LPI’s capital, and the other one regulates governance and operational matters of LPI.2

With the required government regulations already in place, LPI, which may also use the name “Indonesia Investment Authority” or INA, is expected to commence its activities within Q1 2021.

To see our previous client alert on LPI, please click here.

Indonesia: In light of COVID-19, OJK extends the deadline for listed companies to submit sustainability report to 2022

In a previous Client Alert (see here), we discussed a rule issued by the Financial Services Authority (Otoritas Jasa Keuangan – OJK) back in 2017 that requires all financial institutions and public and listed companies to prepare a sustainability report and submit it to OJK within a stipulated period. This obligation is set out under Rule No. 51/POJK.03/2017 on Implementation of Financial Sustainability for Financial Services Providers, Issuers and Public Companies (“OJK Rule 51”).

However, towards the end of 2020, OJK (i.e., the capital market division) issued a letter to all listed companies (“OJK Letter”), which effectively extends the deadline for certain types of listed companies to submit their sustainability report. This move is in response to a plea from the Indonesian Issuers Association for an extension and also in response to the ongoing COVID-19 pandemic crisis in Indonesia.

Indonesia: PLN re-opens prequalification process for solar PV and bioenergy developers

Indonesia’s state-owned power utility, PT PLN (Persero) (PLN), recently issued two invitations for renewable developers who want to be included in the list of selected developers (DPT) for solar PV and bioenergy (biomass and biogas) projects. Developers that pass the prequalification process will be eligible to be invited to participate in future PLN bids for those types of IPP projects.

Indonesia: Digital “stargazing” through 2021: Bank Indonesia overhauls payment system regulations

Happy New Year 2021! We hope that this year things will get better.

Bank Indonesia has issued Regulation No.22/23/PBI/2020 on Payment Systems (“Payment System Regulation”), which is an “umbrella” regulation for the payment system industry. The issuance of this regulation is an implementation of the 2025 Indonesia Payment System Blueprint, which we outlined in our previous client alert. This “umbrella” regulation restructures the regulatory framework of payment systems, including the reclassification of activities of payment system operators. Bank Indonesia’s approach in outlining the rules introduced in this regulation appears to be principle-based and strategic. The technical and operational details of how the rules are supposed to be observed will be outlined in future Bank Indonesia implementing regulations. We anticipate that those will be issued in the coming months, so keep an eye on this space.

Indonesia: Cross-border Deals – Navigating Merger Control Under the New Guidelines

Over the past year or so, the regulatory regime for merger control in Indonesia has seen significant changes. In October 2019, the Indonesian Business Competition Supervisory Commission (“KPPU”) issued a new rule on assessments of M&A transactions (“2019 Rule”), which was further clarified by the guidelines issued in October 2020 (“2020 Merger Guide”).

We discussed these issues in the webinar on “Navigating Merger Control Rules in Cross-Border M&A Transactions” broadcasted on 17 December 2020.

Indonesia: PLN re-opens prequalification process for solar PV and bioenergy developers

In brief Indonesia’s state-owned power utility, PT PLN (Persero) (PLN), recently issued two invitations for renewable developers who want to be included in the list of selected developers (DPT) for solar PV and bioenergy (biomass and biogas) projects. Developers that pass the prequalification process will be eligible to be invited to participate in future PLN

Indonesia: Indonesia sets out its COVID-19 vaccine procurement scheme

On 22 October 2020, the Minister of Health (MOH) issued MOH Regulation No. 28 of 2020 on the Procurement of Vaccines for Corona Virus Disease 2019 (“COVID-19”) (“MOH Regulation 28”). MOH Regulation 28 is an implementing regulation of the Presidential Regulation No. 99 on the Procurement of COVID-19 Vaccine and Vaccination of COVID-19 (“PR 99”). We have addressed some of the key takeaways under PR 99 in our previous client alert. You can find the link to the client alert here.

MOH Regulation 28 regulates on four main themes of COVID-19 vaccine procurement:  (i) types and amount of vaccine for procurement, (ii) procedure for procurement of vaccines, (iii) procedure for payment for vaccines and (iv) guidance and supervision on the procurement of vaccines.

As stipulated under PR 99, MOH has appointed PT Bio Farma (Persero) (“Bio Farma”) as the state-owned enterprise that will lead the procurement and distribution of COVID-19 vaccine in Indonesia. MOH Regulation 28 applies for all COVID-19 vaccines yet to come, not limited to the one that is being developed under the partnership between Government of Indonesia (GOI) (i.e., through Bio Farma) and Sinovac.

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