Insights / Updates

Stay up to date with legal developments in Indonesia.

What's New

New OJK Regulation on Capital Increase Aims to Provide Greater Protection for Minority Shareholders

In April 2019, the Financial Services Authority (Otoritas Jasa Keuangan or "OJK") issued a new regulation on capital increase with pre-emptive rights under No. 14/POJK.04/2019 ("New Regulation"). The New Regulation amends the previous OJK regulation on the same topic (No. 32/POJK.04/2015) ("POJK 32"), as well as repeals the OJK regulation on capital increase without pre-emptive rights (POJK 38/POJK.04/2014) ("POJK 38").

In the introduction of the New Regulation, the OJK states that one of the considerations in enacting the New Regulation is to increase the protection of minority shareholders, especially in relation to an increase of capital by a public company whether through pre-emptive rights or not. One of the mechanisms of this protection is to impose certain requirements on the convening of a general meeting of shareholders ("GMS"). Furthermore, the OJK also hopes to centralise the previous capital increase-related regulations into one regulation.

Civil Servants and Corruption: how promising something to a civil servant can constitute an act of corruption

Corruption is commonly associated with financial loss to the state. However, this interpretation can be misleading as the concept of corruption under the Indonesian anti-corruption law ("Anti-Corruption Law") encompasses a far broader range of conduct than only activity that leads to state loss. The Anti-Corruption law formulates 30 types of action that may be deemed as corrupt, which can be divided into the following seven categories:

i.    corruption related to state financial loss;
ii.   bribery;
iii.  malfeasance;
iv.  extortion;
v.   tort;
vi.  conflict of interest in procurement; and
vii. gratification payments.

This client alert focuses on bribery and gratification payments made to civil servants. The client alert includes a discussion on what constitutes a bribery/gratification payment offence, and who can be made criminally liable for such an offence.

KPPU Issues a New Regulation on Case Handling Procedure

Amidst the long-awaited amendment of the Indonesian Competition Law, (Komisi Pengawas Persaingan Usah or “KPPU”) published KPPU Regulation No. 1 of 2019 on Case Handling Procedure ("New Regulation") early this week. This New Regulation entirely supersedes the previous regulation on case handling procedure. It is important to note that cases commenced prior to 4 February 2019 that have not been decided yet will continue to be subject to the previous regulation.

The most notable feature under the New Regulation is the introduction of behavioural remedy, which allows a defendant to plead guilty at the beginning of a hearing and to agree to change its behaviour in order to stop the case.