Legal Updates for December 2019

Welcoming Indonesia’s E-Commerce Regulation: A Snapshot

In November 2019, the Indonesian government enacted the much-anticipated e-commerce regulation, Government Regulation No. 80 of 2019 on Commerce through Electronic Systems, which regulates various players in an e-commerce industry. These players can be categorised into three groups: merchants, e-commerce service providers and intermediary service providers.

Foreign businesses that are actively engaging (e.g. making offers from offshore) with consumers in Indonesia and satisfy the applicable thresholds will also be subject to the Regulation. The threshold will depend on the number of transactions, transaction value, number of delivery of packages and/or amount of traffic. Foreign businesses that satisfy the applicable thresholds will be subject to Indonesian tax.

Follow-up to the New Merger Control Regulation

Further to AHP’s previous client alert on the new Komisi Pengawas Persaingan Usaha (“KPPU”) merger regulation (“New Merger Control Regulation: Asset Acquisitions are now subject to KPPU Notification”, October 2019), it now sets out further details on asset acquisitions that are subject to KPPU’s notification based on several discussions with the KPPU. This update discusses the following;

(a)        Criteria

(b)        Notification Thresholds

(c)        Pre-Closing Procedure

KPPU has stated that it intends to publish an implementing guideline of the new merger regulation. As such, the discussion here is subject to this upcoming guideline.