Stay up to date with legal developments in Indonesia.
At the height of the Coronavirus crisis in March 2020, the Indonesian National Arbitration Board orBANI issued Decree No. 20.007/III/SK-BANI/HU, temporarily suspending all arbitration proceedings in BANI in an effort to contain the outbreak. As the government and businesses are starting to assess the 'new normal,' BANI has revoked the March decree and issued Decree Number 20.015/V/SK-BANI/HU on the Rules and Procedures for Electronic Arbitration (“Decree”). Under the Decree, arbitrations can now be held or continued online by using an electronic telecommunication platform, provided the parties observe the arbitration principles applicable in BANI.
What is worth noting in the Decree is that it is applicable beyond the current health crisis, thus allowing an arbitration proceeding to proceed virtually in the event of a disaster, emergency, or any other exceptional circumstances.
The ability to move an arbitration online applies not only to new and ongoing arbitrations, but to situations where parties intend to submit a statement of claim. Given this, the Decree may effectively change the way arbitrations are conducted in Indonesia going forward.
On 19 May 2020, the Ministry of Trade issued Regulation No. 50 of 2020 on the Requirements regarding Business Licensing, Advertising, Development, and Supervision of Businesses in Commerce through the Electronic Systems. This regulation is an implementing regulation of the E-Commerce Regulation (Government Regulation No. 80 of 2019 on Commerce through Electronic Systems), which clarifies most of the unresolved issues in the E-Commerce Regulation.
The new regulation regulates the appointment of representatives by foreign e-commerce service providers and business licenses for local merchants, e-commerce service providers, and intermediary service providers. It also clarifies the requirements for electronic advertisements and the obligation to prioritise local products and services.
ln late April this year, OJK issued Regulation No. 20/POJK.04/2020 on Trustee Agreement for Debt Securities or Sukuk, to regulate trustees in debt securities and sukuk issuance. This regulation revokes and replaces Bapepam-LK Regulation No. VI.C.4 on the General Provisions and Trustee Agreement for Debt Securities.
This Update provides a summary of the following key features of the new regulation:
- Due diligence on issuer
- Replacement of trustee
- Profit sharing, margin and reward
- Termination of duties and obligations of the trustee
- Amendment to use of proceeds