Supervision of Changes to the Shareholdings or Board Members of Companies doing Business in the Field of Energy and Mineral Resources

The Minister of Energy and Mineral Resources (“MEMR”) recently issued MEMR Regulation No. 48 of 2017 on the Supervision of the Implementation of Business Activities in the Field of Energy and Mineral Resources (“Reg. 48/2017”) revoking and replacing the previous MEMR Regulation No. 42 of 2017 (“Reg. 42/2017”). The issuance of Reg. 42/2017 sparked multiple debates and objections due to the regulation’s ‘not so investor friendly’ requirements.

Bank Indonesia's National Payment Gateway Introduced

The regulation on the national payment gateway has finally been issued. Bank Indonesia (“BI”), through its regulation No. 19/8/PBI/2017 (“PBI 19/8”) which was promulgated on 22 June 2017, aims to establish national payment system interoperability by implementing switching interconnectivity.

New Indonesian Regulation Requires Ministerial Approval for Changes to Shareholdings or Board Members of Companies doing Business in the Field of Energy and Mineral Resources

On 14 July 2017, the Minister of Energy and Mineral Resources (“MEMR”) issued MEMR Regulation No. 42 of 2017 on the Supervision of the Implementation of Business Activities in the Field of Energy and Mineral Resources (“Reg 42/2017”), which affects businesses in the energy and mineral resources industry, namely in the power, geothermal, oil and gas, and minerals and coal mining sectors. The regulation also provides the mechanism for the procurement of bio-diesel fuel. The regulation came into effect on 17 July 2017.

AGM Reminder 2017

For those companies who have completed their tax reporting responsibilities for 2016 accounting year, it is time to turn the board’s attention to the Annual General Meeting (“AGM”). Corporate governance matters are becoming increasingly important in Indonesia and for many companies, the AGM is the most important embodiment of corporate governance for the year. It is also when final dividends, if any, are decided. For those Indonesian companies whose fiscal year follows the calendar year, the deadline of 30 June for holding this year’s AGM is fast approaching.

INDONESIA'S NEW CONSTRUCTION LAW

On Thursday 15 December 2016 the House of Representatives passed the new Law on Construction Services (“New Construction Law”) that replaces the previous law (“Law No. 18/1999”). The New Construction Law was enacted by the President of the Republic of Indonesia on 12 January 2017 as Law No. 2 of 2017 on Construction. Official copies of the New Construction Law have not been published yet. However, we have reviewed the draft New Construction Law which has been passed and expect only minor changes due to editing.