OMNIBUS LAW 2020: The Will to Comply: Government Highlights Compliance in Competition Law Violations
One of the topics that were left open-ended under the Omnibus Law was the removal of the cap on administrative fine and criminal sanctions for violations of the Competition Law (Law No. 5 of 1999). This was discussed in AHP’s client update in October 2020. In that Client Update, it was mentioned that a new cap is likely to be introduced. The newly issued government regulation for the Omnibus Law on competition, Government Regulation No. 44 of 2021 on the Implementation of Prohibition of Monopolistic Practices and Unfair Business Competition, has confirmed this.
Recognising the need to synergise the various rules in the capital markets sector, the Board of Directors of the Indonesia Stock Exchange (“IDX”) recently issued a decree to amend IDX Rule No. I-E on Obligation of Information Submission. The rule on information submission was issued in 2004, and in light of other newer regulations in the stock exchange, amendments to this rule are certainly overdue.
The new rule contains several notable elements, which are introduced to ensure that the public can receive information quickly while protecting issuers from burdensome obligations.
2019 was a pivotal year in Indonesia's digital business landscape as the government issued, among others, Government Regulation No. 71 of 2019 on Electronic Systems and Transactions (“2019 Regulation”). The 2019 Regulation mandates all electronic system operators to register with the Ministry of Communications and Informatics ("Ministry").
The 2019 Regulation only contains the broad principles on the registration obligation, but mandates that this obligation be further regulated in a Ministerial-level regulation. As a follow-up to such mandate, towards the end of 2020, the Ministry issued a new regulation, Minister of Communications and Informatics Regulation No. 5 of 2020 on the Operation of Private Electronic System Operators (“New Regulation”), to provide more details on the registration obligation, specifically for private electronic system operators.
At the end of 2020, Indonesia's central bank, Bank Indonesia ("BI") issued a regulation on the payment system, BI Regulation No. 22/23/PBI/2020 (“Regulation”), which comes into effect on 1 July 2021. The Regulation was issued as part of BI's initiative to reform Indonesia's payment system regime as stated in BI's 2025 Payment System Blueprint.