New Era in Oil & Gas Sector as Government Moves from Cost Recovery to Gross Split Mechanism
The Government has instituted a new mechanism for sharing out production from oil and gas fields as between the State and its contractors ("Contractor") under Production Sharing Contracts ("PSC"). The new "Gross Split" mechanism is set out in Minister of Energy & Mineral Resources Regulation No. 8 of 2017, which came into force on 16 January 2017, while the first PSC to employ the new arrangement was signed on 18 January 2017, covering the Offshore North West Java working area operated by state energy firm Pertamina, which had recently expired.
New Trademarks Law Enhances Indonesia's Intellectual Property Regime
The House of Representatives enacted the Trademarks Bill into law on 27 October 2016. The new legislation (the “2016 Trademarks Law”) had long been anticipated as it relates to the requirement under the ASEAN Economic Community accords for all ASEAN member countries to implement the 1989 Protocol to the Madrid Agreement Concerning the International Registration of Marks.
Supreme Court Moves to Close Corporate Crime Loophole
The Supreme Court recently issued a regulation setting out the procedures for handling criminal offenses committed by corporations. The new rules, which entered into force on 29 December 2016, provide a partial remedy to one of the most obvious deficiencies in Indonesian law, namely, the lack of a solid legal framework for addressing corporate crime.
OJK Issues New Rule on Merger or Consolidation of Public Companies
On 23 December 2016, the Financial Services Authority (Otoritas Jasa Keuangan / “OJK”) issued OJK Regulation No. 74/POJK.04/2016 on the Merger or Consolidation of Public Companies (the “New Rule”). The New Rule, which revokes Bapepam Rule No. IX.G.1 on the Merger or Consolidation of Public Companies or Issuers, is aimed at simplifying the rules governing mergers or consolidations, and improving the quality of information disclosure. As such, it expands the information that must be contained in the disclosure so as to include:
a. disclosure of the new controlling shareholders resulting from the merger or consolidation;
b. additional information on changes in core business.