Insights / Updates

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New Regulation on Solicited PPP: Improvements to Procurement Procedure

In November 2018, the National Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah or "LKPP") amended the regulation governing the procedure on public-private partnership ("PPP"). The previous procedure for procurement of Implementing Business Entity in solicited PPP under Head of LKPP Regulation No. 19 of 2015 on Procedure for Procurement of Implementing Business Entity in PPP for Provision of Infrastructure ("LKPP Regulation 19/2015") was considered to be incomplete by many PPP participants. Therefore, the new procedure under LKPP Regulation No. 29 of 2018 on Procedure for Procurement of Implementing Business Entity in Solicited PPP for Infrastructure Provision ("LKPP Regulation 29/2018") is aimed to provide more clarity for PPP participants. That being said, procedures for: (i) procurement of Implementing Business Entity in unsolicited PPP; and (ii) procurement of Preparation Agency are still subject to LKPP Regulation 19/2015.

Proposed New Regulation On Classification And Licensing Of Hospitals May Affect Foreign Direct Investment In Hospital Business

Foreign direct investment (“FDI”) in hospital business in Indonesia is currently regulated by the Presidential Regulation No. 44 of 2016 on Lists of Business Fields that are Closed to and Business Fields that are Open with Conditions to Investment (the "Negative List") and Ministry of Health ("MOH") Regulation No. 56 of 2014 on Classification and Licensing of Hospitals ("Regulation 56/2014"). The Negative List allows up to 67% foreign investment in a hospital (or 70% if the investor is domiciled in ASEAN countries) and foreign investment must also comply with the procedure under Regulation 56/2014 to establish, manage and classify a hospital.


Mandatory Recordation of Intellectual Property License Agreement

The Indonesian government has issued Government Regulation No. 36 of 2018 regarding the Recordation of Intellectual Property License Agreement ("GR No. 36/2018"). GR No. 36/2018 is the implementing regulation of Law No. 30 of 2000 regarding Trade Secrets, Law No. 31 of 2000 regarding Industrial Design, Law No. 32 of 2000 regarding Layout Designs of Integrated Circuits, Law No. 28 of 2014 regarding Copyright, Law No.13 of 2016 regarding Patent, and Law No. 20 of 2016 regarding Trademark and Geographical Indication. 

GR No. 36/2018, which came into effect on27 July 2018, contains provisions for the procedure of recordation of intellectual property ("IP") license agreement at the Directorate General of Intellectual Property ("DGIP"), including the documents that are required for the application for recordation. GR No. 36/2018 also contains provisions on the amendment and revocation of recordation of IP license agreement.