Cyber Security Archive

The Indonesian government has just issued a much-anticipated regulations that is closely connected with two important elements in society: children and technology. This new regulation introduces new obligations and prohibitions for electronic system operators in relation to the access and use of electronic systems by children.

The Financial Services Authority (Otoritas Jasa Keuangan or OJK) has finally unveiled the much-anticipated implementing regulation for the new chapter of financial conglomeration. OJK Regulation No. 30 of 2024 on Financial Conglomeration and Financial Holding Company governs the establishment or appointment of a financial holding company (perusahaan induk konglomerasi keuangan or PIKK) – a legal entity tasked with controlling, consolidating and overseeing all of the financial conglomerate’s activities. This regulation was promulgated and became effective on 23 December 2024.

After months of negotiations, Indonesia and Japan signed a mutual recognition agreement for bilateral carbon trading (MRA) on 18 October 2024. The MRA, which came into effect on 28 October 2024, is expected to support Indonesia and Japan to meet their climate change mitigation efforts, and also to draw investors into the carbon sector for both countries.

On 26 July 2024, the government of Indonesia issued Government Regulation No. 28 of 2024 (“GR 28”), which is an implementing regulation of Law No. 17 of 2023 on Health (“Health Omnibus Law”). GR 28 came into effect on the same day it was issued.
Through GR 28, the government aims to impose control by setting up limits on the maximum content level of sugar, salt and fat (known as gula, garam dan lemak/”GGL”) in processed food products.

On 26 July 2024, the government of Indonesia issued Government Regulation No. 28 of 2024 (“GR 28”), which is an implementing regulation of Law No. 17 of 2023 on Health (“Health Omnibus Law”). GR 28 came into effect on the day it was issued. GR 28 regulates the same main principles as the Health Omnibus Law, but adds more depth and details

As a continuation of the 2025 Payment System Blueprint, which led to the successful implementation of key initiatives such as (i) the continued domestic and cross-border implementation of the Quick Response Code Indonesia Standard (QRIS), (ii) the National Open API Standard (SNAP), (iii) the real-time payments infrastructure (BI-FAST), and (iv) regulatory, licensing, and supervisory reforms, Bank Indonesia has now issued the 2030 Blueprint of Payment System (“2030 Blueprint”).
The key objectives of the 2030 Blueprint are to ensure the payment system’s resilience against economic and technological challenges and to integrate various payment systems, creating a more efficient and cohesive structure.

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.

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.

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).

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.

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 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.

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.

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.

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.

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.

On behalf importation, locally known as “under-name importation” or “QQ” importation, has been used by companies for more than a decade, ever since the Directorate General of Customs and Excise first allowed the name of the owner of goods to be included in the import declaration form (PIB). Under Indonesia’s Customs Law, the importer of record is the party that is subject to an audit or a re-examination (Penelitian Ulang), and there is no audit or re-examination of the owner of goods in a PIB using under-name importation. However, in mid-August this year, the Minister of Finance issued Regulation No. 78 of 2023 on Re-examination in the Field of Customs, which will come into force on 21 October this year. One of the objects of re-examination is the owner of goods

On 11 July 2023, Indonesia’s house of representative (known as Dewan Perwakilan Rakyat Indonesia/DPR RI) approved the 2023 draft health law. A month later, the President enacted Law No. 17 of 2023 on Health (“Health Omnibus Law”) through the state secretariat. The Health Omnibus Law contains provisions on matters such as pharmaceutical preparations, medical devices, healthcare services, healthcare technology (including telehealth and telemedicine), R&D and other compulsory measures.

On 2 August 2023, the Financial Services Authority or Otoritas Jasa Keuangan (OJK) issued its Rule No. 14 of 2023 on Carbon Trading on Carbon Exchange (“OJK Rule 14/2023”). OJK Rule 14/2023 is issued as one of the implementing regulations of Law No. 4/2023 on Development and Strengthening of the Financial Sector.
OJK Rule 14/2023 sets out the standard criteria for carbon units that will be traded on a carbon exchange, as well as the licensing requirements for any company that will apply to become a carbon exchange.

Minister of Transportation Regulation No. 14 of 2023 on Amendment to Minister of Transportation Regulation No. 4 of 2022 on Services for Foreign-flagged Yachts and Cruise Ships, which came into effect on 23 May this year, expands the ports that are available for foreign-flagged cruise ships and yachts to enter and exit Indonesian waters.