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”).

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.