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Indonesia


Corporate Governance | General | Support Measures | Trade | Useful Resources

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Corporate Governance

General Meeting of Shareholders Goes Online

In light of the approaching deadline for public companies to hold their annual GMS, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or "OJK") issued two new regulations this week on general meeting of shareholders ("GMS") of public companies, namely OJK Regulation No. 15/POJK.04/2020 ("POJK 15") and OJK Regulation No. 16/POJK.04/2020 ("POJK 16"). POJK 15 and POJK 16 allow public companies to hold their GMS virtually ("e-GMS") through an e-GMS system provided by an e-GMS provider.

In addition, both regulations enable the granting of an electronic proxy ("e-Proxy") through the e-GMS system. While AHP has discussed the e-proxy mechanism in its previous client update, certain provisions have been adjusted in POJK 16 to facilitate the implementation of the e-GMS better.

Indonesia | Corporate Governance | 27 April 2020
Indonesian Government Begins Easing Rules in Light of COVID-19

In light of the spread of  the Covid-19 outbreak, on 18 March 2020, the OJK, Indonesia's Financial Services Authority, relaxed the rules on submission of reports and holding of general meeting of shareholders for public companies. Under OJK Letter No. S-92/D.04/2020 ("Letter"), OJK not only extends the deadline for the submission of several reports, including annual reports and financial statements, but also touches upon the holding of a general meeting of shareholders ("GMS") via an e-proxy.

Indonesia | Corporate Governance | 20 March 2020
Market Condition Pushes the OJK to Relax Buyback Procedures

Indonesia's financial services authority, Otoritas Jasa Keuangan or "OJK", recently issued a circular that allows all issuers or public companies to conduct a buyback of shares without convening a general meeting of shareholders. 

In OJK Circular Letter No. 3/SEOJK.04/2020 on Other Conditions as Significantly Fluctuating Market Conditions in the Implementation of Shares Buyback by Issuers or Public Companies ("Circular"), the OJK states that the trading condition in the Indonesia Stock Exchange (IDX) has experienced significant pressure as evidenced by the decline in the Composite Stock Price Index (IHSG) by 18.46% from the beginning of 2020 until the date of the Circular. The economy is also slowing down due to regional and national pressure, including as a result of the COVID-19 outbreak. 

The revision to the buyback procedure is an attempt by the government to provide economic stimulus to the market and at the same time reducing the adverse impact from the current market condition.

Indonesia | Corporate Governance | 12 March 2020

General

AHP Covid-19 Dispatch

As countries around the world work to tackle the spread of Covid-19, the threat of business interruption has become real, throwing arrangements into disarray, disrupting workforce, and upsetting the global economy.

In Indonesia, the government has begun issuing various countermeasures and relief for businesses and public alike. In this update, we provide a summary of legislation and government updates issued to navigate the Covid-19 outbreak, specifically with respect to the following areas:

i. Dispute Resolution: Jokowi Declares Covid-19 as a National Disaster: A Force Majeure Trigger?

ii. Technology, Media & Telecommunications: Highlighting Indonesia's E-Signature Framework in Times of Covid-19

Indonesia | General | 14 April 2020
AHP Covid-19 Dispatch

As countries around the world work to tackle the spread of Covid-19, the threat of business interruption has become real, throwing arrangements into disarray, disrupting workforce, and upsetting the global economy.

In Indonesia, the government has begun issuing various countermeasures and relief for businesses and public alike. In this update, we provide a summary of legislation and government updates issued to navigate the Covid-19 outbreak, specifically on the following areas: 

  1. Dispute Resolution
  2. Capital Markets
  3. Competition
  4. Tax and Customs

 

Indonesia | General | 11 April 2020
AHP Covid-19 Dispatch

As countries around the world work to tackle the spread of Covid-19, the threat of business interruption has become real, throwing arrangements into disarray, disrupting workforce, and upsetting the global economy.

In Indonesia, the government has begun issuing various countermeasures and relief for businesses and public alike. AHP Covid-19 Dispatch provides a summary of legislation and government updates issued to navigate the Covid-19 outbreak. In this Update, we review the circular letter from the Ministry of Land Affairs (Kementerian ATR-BPN) requiring certain land-related services to be done online, and its potential impact to the current condition of land filings.

Indonesia | General | 03 April 2020
AHP Covid-19 Dispatch

As countries around the world work to tackle the spread of Covid-19, the threat of business interruption has become real, throwing arrangements into disarray, disrupting workforce, and upsetting the global economy.

In Indonesia, the government has begun issuing various countermeasures and relief for businesses and public alike. In this update, we provide a summary of legislation and government updates issued to navigate the Covid-19 outbreak, specifically on the following areas:

  1. Banking and Finance
  2. Disputes Resolution
  3. Tax and Custom
Indonesia | General | 02 April 2020
AHP Covid-19 Dispatch

As countries around the world work to tackle the spread of Covid-19, the threat of business interruption has become real, throwing arrangements into disarray, disrupting workforce, and upsetting the global economy.

In Indonesia, the government has begun issuing various countermeasures and relief for businesses and public alike. AHP Covid-19 Dispatch provides a summary of legislation and government updates issued to navigate the Covid-19 outbreak.

Indonesia | General | 01 April 2020
Covid-19 Response: Between Lockdown, Quarantine and Massive Social Restriction

For the last couple of weeks, the term 'lockdown' has been frequently mentioned both in official media, as well as social media. Some argue that it will be the most pressing and effective action to prevent viruses spread; others appeal to take a closer look as it may adversely affect state economy and livelihood of workers in the informal economy.

Perhaps unknown by many, the government had issued a law on health quarantine (Law No. 6 of 2018 on Health Quarantine) in 2018. This law regulates various types of actions, including massive social restriction and quarantines that can be taken by the government in preventing the spread of a disease and/or any health risk.

Indonesia | General | 31 March 2020

Support Measures

The Urge to Merge: OJK Regulations Encourages Merger Between Banks

Following the enactment of Government Regulation in lieu of Law No. 1 of 2020, Indonesia's financial services authority, the OJK, has enacted several regulations designed to safeguard the stability of the financial system and deal with the threat of an economic crisis.

In this update, we will discuss OJK Regulation No. 18/POJK/03/2020 on Written Order to Handle Problematic Banks ("POJK 18/2020") and OJK Regulation No. 12/POJK.03/2020 on the Consolidation of Commercial Banks ("POJK 12/2020") in the context of the banking sector. While POJK 18/2020 was issued in the context of the current coronavirus crisis, POJK 12/2020 has been on OJK's radar before the pandemic.

Indonesia | Support Measures | 13 May 2020
Control and Support Measures in Indonesia Amid the COVID-19 Pandemic

The Indonesian government’s response to the COVID-19 pandemic has been steadily intensifying in the past weeks. Pursuant to Regulation of the DKI Jakarta Governor No. 33 of 2020 and Decree No. 380 of 2020, Jakarta became the first province in Indonesia to impose massive social restriction. This is evidenced by the closing of schools, offices except for those conducting essential services) and places of worship, passenger’s limitation for public and personal transportation and prohibition of mass gathering. By mid-April, President Joko Widodo declared COVID-19 as a non-natural national disaster, which obliges the governors, regents, and mayors of the various regions in Indonesia to establish policies in line with this declaration. West Java and Tangerang soon followed Jakarta’s lead and declared a massive social restriction in their respective regions.

On the business side, the government has begun setting the stage to allow public institutions to introduce future measures to ensure that business can go on as usual.

Indonesia | Support Measures | 30 April 2020

Trade

Indonesia Temporarily Halts Export of Masks and Medical Protective Equipment

Following the announcement from the World Health Organization that declared Covid-19 as a pandemic, the Indonesian government continues making adjustment and taking steps to deal with the outbreak. As of 23 March 2020, there were 579 confirmed COVID-19 cases, with 49 deaths and 30 recovery. Globally, the pneumonia-like illness has infected more than 330,000 people and taken at least 14,000 lives. 

Amidst this outbreak, the Indonesian Central Statistics Agency noted an increase in the export of protective masks from Indonesia to trading partner countries by an average of 3,000% during February 2020. Given that Indonesia is currently suffering from a shortage of protective masks due to panic buying and an increase of price, the Indonesian government issued the Minister of Trade Regulation No. 23 of 2020 on the Temporary Ban of Export of Antiseptics, Raw Materials for Masks, Personal Protective Equipment and Masks on 17 March 2020 ("Regulation") prohibiting the export of antiseptics, raw materials for masks, personal protective equipment and masks that fall under specified Tariff Post/Harmonized System.

The temporary ban of export started on 18 March 2020 and will end on 30 June 2020. Non-compliance with the Regulation will subject the errant exporters to sanctions provided for by the prevailing laws and regulations.

Indonesia | Trade | 24 March 2020

Useful Resources

COVID-19 Accelerated Handling Task Force (National Disaster Management Authority)
Infeksi Emerging (no English version)
Region: Jakarta


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