OJK Introduces Rules on Going Private and Obligation to Identify Controlling Shareholders
Indonesia's Financial Services Authority, or OJK, recently enacted Regulation No. 3/POJK.04/2021 on Implementation of Capital Market Activities. In line with its title, this regulation governs various capital market activities and the actors in it. The two main elements of this regulation are introducing the procedures to go private and identifying a public company's controlling shareholders and its obligations.
In the regulation, OJK identifies three situations where a public company can go private: voluntarily, based on an order from OJK, or based on an order from IDX. Meanwhile, on controlling shareholders, the regulation affirms OJK's policy of requiring public companies to disclose their controlling shareholders, whether direct or indirect.
OMNIBUS LAW 2020: Just in Time, Indonesia's Priority Investment List is Set to Boost Economic Growth
To implement the relevant provisions of the Omnibus Law (Law No. 11 of 2020) with respect to foreign investment, the government has introduced a new investment list to replace the Negative Investment List under Presidential Regulation No. 44 of 2016 and Presidential Regulation No. 76 of 2007. The new investment list, called the Priority Investment List, is issued under Presidential Regulation No. 10 of 2021 on Investment Business Activities.
The Priority Investment List is a crucial piece of the Omnibus Law puzzle that could increase foreign investment and boost economic growth in the country. Under the Priority Investment List the permitted and restricted sectors have been simplified.
OMNIBUS LAW 2020: A New Age in Employment: Part 1
As discussed in AHP’s October 2020 Client Update, the Omnibus Law (Law No. 11 of 2020) gave the employment sector a significant overhaul. But the large-scale change also created gaps. Now, the Indonesian Government seeks to fill in these gaps by enacting the following four regulations:
(i) Government Regulation No. 35 of 2021 on Fixed-Term Employment Agreement, Outsourcing, Working Hours and Time-off, and Termination of Employment ("Regulation 35");
(ii) Government Regulation No. 34 of 2021 on Manpower Utilisation;
(iii) Government Regulation No. 36 of 2021 on Wages; and
(iv) Government Regulation No. 37 of 2021 on the Administration of Loss of Employment Security Program.
This Update focuses on Regulation 35, which addresses areas of the Labour Law (Law No. 13 of 2003) that required further clarification after the Omnibus Law's issuance: fixed-term employment agreement, termination of employment, termination payment, and outsourcing.
OMNIBUS LAW 2020: Shift to Risk-Based Licensing Set to Transform Indonesia's Investment Climate
Following the enactment of the Omnibus Law, the government has introduced the necessary implementing regulations to the law. Of the proposed changes under the Omnibus Law, one, in particular, will affect all businesses, namely the shift from a commitment-based licensing regime to a risk-based licensing regime. The new regime is reflected under Government Regulation No. 5 of 2021 on the Implementation of Risk-Based Business Licenses (“Regulation”). The Regulation is aimed at administering a more streamlined and efficient business licensing process, and in some instances, even removing the licensing requirement for certain businesses.