Indonesia Updates Rules for Foreign Currency from Natural Resources Exports with New Regulation
Starting 1 March 2025, a new regulation, Government Regulation No. 8 of 2025 (“New Regulation“), has changed the rules for how natural resources exporters must manage their foreign currency earnings, known as DHE SDA (devisa hasil ekspor sumber daya alam, or foreign exchange proceeds from natural resources). This new rule updates Government Regulation No. 36 of 2023 (“2023 Regulation“), which we discussed in our previous client alert (click here to read). The goal of the New Regulation is to increase Indonesia’s foreign exchange reserves and ensure that profits from export contribute more significantly to the country’s economic growth.
Both the 2023 Regulation and New Regulation apply to foreign exchange proceeds earned from exports in sectors like mining, plantation, forestry, and fisheries. If these exports are worth US$250,000 or more, the earnings must be deposited into specific accounts within Indonesia’s financial system, and must be kept within a certain period of time.
The Ministry of Finance, Bank Indonesia, and the Financial Services Authority (Otoritas Jasa Keuangan or “OJK“) will jointly oversee the implementation of these obligations. In line with this mandate, Bank Indonesia issued Bank Indonesia Regulation No. 3 of 2025 on 28 February 2025, which updates the previous regulation on export and import payments under Bank Indonesia Regulation No. 7 of 2023. This new Bank Indonesia regulation also took effect on 1 March 2025.
For more information, click here to read our Legal Update.
First Antitrust Approval for Non-Merger Business Cooperation Agreement Issued – A Boost for Business Certainty
On 27 February 2025, the Indonesia Competition Commission (“KPPU“) issued its first antitrust approval for a non-merger cooperation agreement between Garuda Indonesia and Japan Airlines, imposing conditions like maintaining flight capacity, regular reporting, and avoiding exclusivity. The agreement encompasses a range of collaborative activities, including providing additional flight option, a broader network, improved connectivity, and enhanced frequent flyer programs.
Although the partnership aims to enhance services between Indonesia and Japan and was found to pose no significant competitive harm, the approval does not grant immunity from future investigations in relation to any potential anticompetitive practices or monopolistic behaviour that may arise from this collaboration.
The decision reflects KPPU’s willingness to review voluntary submissions and reinforces the need for compliance and stakeholder engagement in similar collaborations.
For more information, click here to read our Legal Update.
Changing of the Guards in Indonesia's Crypto Asset Sector
As of 12 January 2025, oversight of Indonesia’s crypto asset sector has officially shifted from Bappebti to the Financial Services Authority (“OJK“) under Law No. 4 of 2023 on Financial Sector Development and Reinforcement (PPSK Law). This move aims to strengthen regulatory control and investor protection in the rapidly evolving crypto space.
OJK is now responsible for licensing, market oversight, supervision, and enforcement in relation to crypto asset trading. However, Bappebti remains temporarily involved in resolving ongoing disputes and investigations, and its existing regulations continue to apply during this transitional period.
To guide this transition, OJK issued Regulation No. 27 of 2024, which came into effect on 10 January 2025. Key changes introduced include the following:
- Bappebti-licensed entities are automatically recognised by OJK as Digital Financial Asset Trading Providers.
- Pending applications with Bappebti must be resubmitted under OJK procedures.
- The crypto bourse must establish a new whitelist of approved crypto assets by April 2025.
- A six-month adjustment period, ending in July 2025, allows businesses to align with new governance, data protection, and consumer protection requirements.
This shift marks a key milestone in Indonesia’s crypto regulation journey, reinforcing regulatory clarity and investor confidence.
For more information, click here to read our Legal Update.
New Regulation for CCS Blocks in Indonesia: Is the Puzzle Complete?
Indonesia has taken a major step forward in carbon capture and storage (“CCS“) with the issuance of Ministry of Energy and Mineral Resources (“MEMR“) Regulation No. 16 of 2024 (“Regulation 16“), which finalises the regulatory framework for CCS operations in designated CCS blocks. This regulation complements earlier rules covering CCS within production sharing contract (PSC) areas. Regulation 16 introduces procedures for awarding CCS blocks, with mechanisms for open tenders and direct selections, and requires performance bonds to ensure compliance. Bidders must demonstrate financial and technical capability, and shortlisted parties enjoy simplified participation in tenders.
To formalise carbon storage agreements, CCS operators must seek MEMR approval, supported by financial models and emitter profiles. Fiscal terms include exploration permit compensation, royalties (to be defined), and applicable income tax. Operators must also provide guarantees for exploration, operations, and site restoration.
Regulation 16 also outlines asset transfer options post-operation and hints at potential build-operate-transfer (BOT) arrangements. Despite this progress, key uncertainties remain, including long-term liability, royalty rates, cross-border storage frameworks, and incentives for developers and emitters. The future success of CCS in Indonesia depends on addressing these gaps and ensuring a full value chain approach – from capture to storage – with support from cross-sector and international collaboration.
For more information, click here to read our Legal Update.
Investing in Indonesia? Major Regulatory Update for Venture Capital Companies
Indonesia’s Financial Services Authority (“OJK“) has issued OJK Regulation No. 46 of 2024 to update the regulatory framework for non-bank financial institutions, particularly venture capital companies (“VCCs“). With effect from 31 December 2024, the regulation replaces earlier rules and introduces key changes to the ownership, operations, compliance, and governance of VCCs. It limits VCC structures to limited liability companies and cooperatives, and now allows foreign citizens to invest under certain conditions. A minimum paid-up capital of IDR50 billion is required for all VCCs.
The regulation introduces stricter disclosure requirements, including identification of controlling shareholders and beneficial owners. Changes in ownership now trigger a fit and proper test by the OJK. Operationally, companies must have specific functional units and report the commencement of their businesses within six months. Foreign worker employment is also more tightly regulated, requiring OJK approval in advance.
For Sharia business units, spin-offs are now based on equity and asset thresholds, with more flexible implementation options. Enforcement powers have been strengthened, allowing OJK to impose sanctions without prior warning.
VCCs must now review their structures and practices to ensure compliance and prepare for further implementing regulations, especially those governing foreign ownership. The overall aim is to enhance transparency, accountability, and sustainable sector growth.
For more information, click here to read our Legal Update.
Expanded Opportunities, Stricter Rules Under OJK's New Regulation
The Financial Services Authority (“OJK“) has issued OJK Regulation No. 40 of 2024 on Information Technology-Based Collective Funding Services, effective 27 December 2024, replacing Regulation No. 10/POJK.05/2022. This new regulation introduces significant changes to Indonesia’s peer-to-peer (“P2P“) lending landscape, aiming to promote financial inclusion and strengthen oversight.
Key developments include allowing Indonesian cooperatives to operate P2P platforms and broadening ownership eligibility to include government entities and their foreign partners. The minimum paid-up capital requirement remains IDR25 billion by 4 July 2025, with new equity ratio and financial soundness requirements. Operators must also disclose their Ultimate Beneficial Owners.
The regulation sets a funding cap of IDR2 billion per recipient, extendable to IDR5 billion for productive loans under specific criteria. Amendments to funding agreements now require approval from both parties. New prohibitions include fund collection via savings instruments and unhealthy lending practices.
Governance is strengthened through mandatory General Meetings of Fund Providers and stricter anti-fraud and anti-money laundering requirements. The regulation also allows operators to establish subsidiaries, with equity limits aligned with venture capital practices.
P2P operators must update internal policies and prepare for a forthcoming OJK circular letter (SEOJK) amendment to ensure full compliance with the new framework.
For more information, click here to read our Legal Update.
Indonesia Streamlines Environmental Approvals with New Decree
In November 2024, Indonesia’s Ministry of Environment (“Ministry“) issued Decree No. 22 of 2024 (“Decree“) to delegate environmental approval responsibilities from the central government to provincial and regional authorities. This change aims to streamline the approval process and reduce delays in business licensing.
Environmental approvals, such as AMDAL (environmental impact assessments) and UKL-UPL (environmental management and monitoring efforts), are required for activities that may impact the environment. Previously, the central government handled most of these approvals, causing bottlenecks. The Decree builds on Government Regulation No. 22 of 2021 and outlines specific procedures for delegating tasks like issuing new approvals, amending existing ones, and granting technical approvals.
Provincial governments will oversee approvals for larger projects such as mining and power generation, while regional governments will handle smaller-scale activities like fuel stations. Applications must be submitted through the Amdalnet system, which is integrated into the Online Single Submission (OSS) system.
The process includes document review, feasibility assessment, and final approval by the relevant regional authority. The Ministry will monitor and evaluate implementation to maintain quality and consistency.
This decentralised approach is expected to speed up environmental licensing while maintaining strong environmental standards, supporting both regulatory compliance and business growth.
For more information, click here to read our Legal Update.
Please note that whilst the information in this Update is correct to the best of our knowledge and belief at the time of writing, it is only intended to provide a general guide to the subject matter and should not be treated as a substitute for specific professional advice
