Stay up to date with legal developments in Indonesia.
In light of the current health crisis and as detailed in our previous client update (click here to read), the Chairman of the Indonesia Competition Commission ("KPPU") has expressed his support for businesses to collaborate. Subsequently, on 9 November 2020, the KPPU published KPPU Regulation No. 3 of 2020 on the Relaxation of Legal Enforcement of Monopoly Practices and Unfair Business Competition and Monitoring of Partnership Implementation to Support the National Economic Recovery to specify the criteria and form of relaxation in its enforcement.
Under the new regulation, businesses can now benefit from the following relaxation:
- procurement using State Budget or Regional Budget can be done to: (i) fulfil medical needs or provide supporting facilities to handle Covid-19, e.g. the procurement of medicine, vaccine, construction of emergency hospitals, the appointment of hotels or buildings for isolation, and other medical needs and supporting facilities to handle Covid-19; and (ii) distribute social assistance and social safety net from the government to the public;;
- approval of an agreement, activity, and/or the use of dominant position to handle Covid-19 and/or to increase the economic ability of a business;
- extension of the deadline to submit the mandatory post-closing notification to the KPPU from 30 to 60 business days as of the effective date; and
- extension of the period of written warning in the partnership monitoring procedure from 14 to 30 business days.
On 15 November 2020, the ten member states of the Association of Southeast Asian Nations ("ASEAN") – Brunei Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, Singapore, the Philippines, Thailand, and Vietnam – in conjunction with Australia, China, Japan, South Korea, and New Zealand, signed the world's largest free trade agreement to date, known as the Regional Comprehensive Economic Partnership ("RCEP") Agreement.
Representing the culmination of eight years of negotiations, the RCEP builds on existing bilateral FTAs among the 15 RCEP Participating Countries ("RPCs"). Together, the RPCs account for about 30% of global gross domestic product and close to a third of the world's population. It signals the RPCs' strong commitment to maintaining open and connected supply chains; broadens individual RPCs' economic linkages and connectivity with the region; and gives them preferential access to the region's growing markets.
We provide an overview of the features of the RCEP below, which improves on the existing ASEAN Plus One agreement in four key areas:
1. comprehensive trade facilitation measures;
2. improved market access for Trade in Services;
3. enhanced investment rules and disciplines; and
4. expanded scope and commitments.
This is the sixth edition of “Omnibus Law 2020: Overview Series”, which highlights changes in the real estate sector. This alert is the first alert on real estate.
The Omnibus Law launches massive changes in the real estate sector. As with the other sectors, it is expected that the government will issue implementing regulations to clarify the requirements for each of the changes introduced.
The changes introduced by the Omnibus Law relate to the following:
(i) Zoning Conformity Instead of Permits
(ii) Streamlined Building Permitting Process
(iii) New Building Service Providers
(iv) Foreigners Owning Apartments