NEW REGULATION ON CAPITAL INVESTMENT LICENSING AND FACILITIES

The Investment Coordinating Board (Badan Koordinasi Penanaman Modal/”BKPM”) issued two new sets of regulations on investment, i.e. Regulation No. 13 of 2017 on The Guidelines and Procedure for Capital Investment Licensing and Facilities (“Reg 13/2017”) and Regulation No. 14 of 2017 on The Guidelines and Procedure for Capital Investment Supervision (“Reg 14/2017”).

UPDATES ON FORCE MAJEURE PROVISIONS UNDER THE POWER PURCHASE AGREEMENTS

On 12 February 2018, the Minister of Energy and Mineral Resources (the “MEMR”) issued Regulation Number 10 of 2018 on The Second Amendment to Minister of Energy and Mineral Resources Regulation Number 10 of 2017 on the Principles of Power Purchase Agreements (“MEMR Reg 10/2018”) which came into effect on 13 February 2018. As a brief background, Minister of Energy and Mineral Resources Regulation Number 10 of 2017 on the Principles of Power Purchase Agreements (”MEMR Reg 10/2017”) sets out the principles of power purchase agreements (“PPA”) between PT PLN (Persero) (“PLN”) as the purchaser and Independent Power Producers (“IPP”) as the seller in the electric power system. This regulation covers the commercial aspects of every type of IPP power plant, which previously depended on negotiations between the parties, save for certain requirements under the prevailing laws and regulations (eg the electric power purchase price). MEMR Reg 10/2017 was amended previously by Minister of Energy and Mineral Resources Regulation Number 49 of 2017 on An Amendment to Minister of Energy and Mineral Resources Regulation Number 10 of 2017 on the Principles of Power Purchase Agreements (“MEMR Reg 49/2017”).

MINISTRY OF ENERGY AND MINERAL RESOURCES TO REVOKE 32 OF ITS REGULATIONS

On 5 February 2018, the Ministry of Energy and Mineral Resources (“MEMR”) issued Press Release No. 00012.Pers/04/SJI/2018 revoking 32 MEMR regulations to promote the development of investment (“Press Release”). According to the Press Release, the revocation of 32 MEMR Regulations is to simplify regulations on the oil and gas, minerals and coal, electric power, renewable energy and energy conservation sectors and the Special Task Force for Upstream Oil and Gas Business Activities (SKK Migas) to be in line with the President's instruction to promote investment by reducing the required licenses and regulations to improve business and investment opportunities.

THE RISE OF FINANCIAL TECHNOLOGY IN INDONESIA

In order to meet public demand, especially the accessibility of financial services for non-banking customers, financial technology continues to develop and information systems continue generating innovations. These phenomena have had given a positive impact both for consumers and businesses, especially small and medium enterprises. On the other hand, certain aspects of financial technology (“Fintech”) present a potential risk to the financial system and an adverse effect on consumer protection if they cannot be regulated and controlled properly, especially in payment system services.

NEW REGULATION ON CAPITAL INVESTMENT LICENSING AND FACILITIES

The Head of the Investment Coordinating Board (Badan Koordinasi Penanaman Modal/”BKPM”) issued two new sets of regulations on investment, i.e. Regulation No. 13 of 2017 on The Guidelines and Procedure for Capital Investment Licensing and Facilities (“Reg 13/2017”) and Regulation No. 14 of 2017 on The Guidelines and Procedure for Capital Investment Supervision (“Reg 14/2017”).