New OJK Regulation on Material Transaction and Change of Business Activity
After two years in the making, the OJK, Indonesia's financial services authority, finally issued the new regulation on material transaction and change of business activity, Regulation No. 17/POJK.04/2020 (“OJK Regulation 17/2020”), which will revoke and replace Bapepam-LK Regulation No. IX.E.2. OJK Regulation 17/2020 was issued as part of a series of regulations issued by OJK to support the government's attempt to safeguard the stability of the nation's financial system. Some of the regulations were issued to respond to the Covid-19 pandemic. Others, including this one, have a wider reach.
The changes contained in OJK Regulation 17/2020 relate to the following:
(a) definition of a material transaction
(b) thresholds of a public company’s equity with respect to certain transactions
(c) disclosure of the result of the material transaction in the annual report
(d) requirement of shareholders’ approval in instances where the fairness opinion finds the material transaction to be unfair
High Hopes for Indonesia's Renewable Energy-Based Electricity
The Indonesian government has once again promised to boost the proliferation of renewable energy industry in Indonesia by enacting the Ministry of Energy and Mineral Resources Regulation ("MEMR") No. 4 of 2020 on Use of Renewable Energy for Electricity Supply ("New Regulation"). The New Regulation amends MEMR Regulation No. 50 of 2017 as amended by MEMR Regulation No. 53 of 2018 ("Previous Regulation"), which was viewed by many as inadequate.
Contrary to the expectation of many independent power producers ("IPP") and rumours that the Government will re-introduce the feed-in tariff scheme for renewable energy, the New Regulation still benchmark the pricing of renewable energy against PT Perusahaan Listrik Negara's ("PLN") average electricity generation basic cost (biaya pokok penyediaan or "Generating BPP").
General Meeting of Shareholders Goes Online
In light of the approaching deadline for public companies to hold their annual GMS, the Indonesian Financial Services Authority (Otoritas Jasa Keuangan or "OJK") issued two new regulations this week on general meeting of shareholders ("GMS") of public companies, namely OJK Regulation No. 15/POJK.04/2020 ("POJK 15") and OJK Regulation No. 16/POJK.04/2020 ("POJK 16"). POJK 15 and POJK 16 allow public companies to hold their GMS virtually ("e-GMS") through an e-GMS system provided by an e-GMS provider.
In addition, both regulations enable the granting of an electronic proxy ("e-Proxy") through the e-GMS system. While AHP has discussed the e-proxy mechanism in its previous client update, certain provisions have been adjusted in POJK 16 to facilitate the implementation of the e-GMS better.
AHP Covid-19 Dispatch
As countries around the world work to tackle the spread of Covid-19, the threat of business interruption has become real, throwing arrangements into disarray, disrupting workforce, and upsetting the global economy.
In Indonesia, the government has begun issuing various countermeasures and relief for businesses and public alike. In this update, we provide a summary of legislation and government updates issued to navigate the Covid-19 outbreak, specifically with respect to the following areas:
i. Dispute Resolution: Jokowi Declares Covid-19 as a National Disaster: A Force Majeure Trigger?
ii. Technology, Media & Telecommunications: Highlighting Indonesia's E-Signature Framework in Times of Covid-19
AHP Covid-19 Dispatch
As countries around the world work to tackle the spread of Covid-19, the threat of business interruption has become real, throwing arrangements into disarray, disrupting workforce, and upsetting the global economy.
In Indonesia, the government has begun issuing various countermeasures and relief for businesses and public alike. In this update, we provide a summary of legislation and government updates issued to navigate the Covid-19 outbreak, specifically on the following areas:
- Dispute Resolution
- Capital Markets
- Competition
- Tax and Customs
COVID-19 Dispatch
As countries around the world work to tackle the spread of Covid-19, the threat of business interruption has become real, throwing arrangements into disarray, disrupting workforce, and upsetting the global economy.
AHP Covid-19 Dispatch
As countries around the world work to tackle the spread of Covid-19, the threat of business interruption has become real, throwing arrangements into disarray, disrupting workforce, and upsetting the global economy.
In Indonesia, the government has begun issuing various countermeasures and relief for businesses and public alike. In this update, we provide a summary of legislation and government updates issued to navigate the Covid-19 outbreak, specifically on the following areas:
- Banking and Finance
- Disputes Resolution
- Tax and Custom
AHP Covid-19 Dispatch
As countries around the world work to tackle the spread of Covid-19, the threat of business interruption has become real, throwing arrangements into disarray, disrupting workforce, and upsetting the global economy.
In Indonesia, the government has begun issuing various countermeasures and relief for businesses and public alike. AHP Covid-19 Dispatch provides a summary of legislation and government updates issued to navigate the Covid-19 outbreak.