Legal Updates for December 2020

OMNIBUS LAW 2020: Sharing is the New Normal for the Telecommunications Sector

This is the eight edition of “Omnibus Law 2020: Overview Series”, which highlights changes in the telecommunications sector. This alert is the first alert on telecommunications and broadcasting.

One of the main themes of the Omnibus Law (Law No. 11 of 2020 on Job Creation) is efficiency. This theme can be seen, among others, in the streamlining of licenses and their application. In the telecommunications sector, the Omnibus Law amends the Telecommunications Law (Law No. 36 of 1999) and the Broadcasting Law (Law No. 32 of 2002) by introducing efficiency through sharing of radio frequency spectrum, transfer of radio frequency spectrum, and sharing of infrastructure.

Hoping to Boost Investment, Indonesia Ratified the Indonesia-Singapore Bilateral Investment Treaty

On 25 September 2020, President Joko Widodo signed Presidential Regulation No. 97 of 2020, which ratified the Agreement between the Indonesian government and the Singapore government on the Promotion and Protection of Investments ("Treaty"). The Treaty complements the ASEAN Comprehensive Investment Agreement, which is designed to promote greater investment flow between Singapore and Indonesia. 

Treaty will come into force on the date when Singapore and Indonesia exchange instruments of ratification ("IOR"), which is still being deliberated upon by both governments. As such, investment agreements signed between 21 June 2016 until the date of exchange will need to rely on the protection under the ASEAN Comprehensive Investment Agreement, which is similar to the protection under the Treaty. Note that the previous bilateral investment treaty between Indonesia and Singapore became effective on 21 June 2006 and expired on 20 June 2016.