CONSTITUTIONAL COURT RULING ON PRENUPTIAL AGREEMENT

The Constitutional Court on 27 October 2016 ruled on a judicial review application of Articles 21 (1) and (3) and 36 (1) of Law No. 5 of 1960 on Basic Provisions on Agrarian Principles (“Agrarian Law”) and Articles 29 (1), (3) and (4) and 35 (1) of Law No. 1 of 1974 on Marriage (“Marriage Law”) through ruling No. 69/PUU-XIII/2015.

KPPU INVESTIGATES ALLEGED MOTOR SCOOTER CARTEL

The KPPU has conducted its first hearing into an alleged motor scooter price fixing cartel between Astra and Yamaha, the dominant players in this market. The KPPU again appears to be pursuing a concerted action-type ‘agreement’, which it used in the recent beef cartel case.

BEEF IMPORT CARTEL

On 22 April 2016, the Business Competition Supervisory Commission (KPPU) found 32 importer and feedlot companies in violation of Articles 11 and 19(c) of the anti-monopolies law and levied fines totaling over Rp.107bn (approximately USD8m at current exchange rates).

AGM REMINDER 2016

For those companies who have completed their tax reporting responsibilities for the 2015 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 Indonesian companies whose fiscal year follows the calendar year, the deadline of 30 June for holding this year’s AGM is fast approaching.

RECENT REVISIONS TO INDONESIA'S NEGATIVE INVESTMENT LIST

The Indonesian Government has released the long-awaited revision to its Negative Investment List (DNI). The revised regulation (Presidential Regulation No. 44/2016) was promulgated on 18 May 2016 and circulated to the public on 24 May. The DNI regulates the sectors which are closed, open, or conditionally open to investment. The DNI revision has been keenly awaited as it stipulates, amongst other matters, the relaxing of restrictions on foreign participation in various business activities in Indonesia.