The Indonesian government recently enacted Government Regulation No. 24 of 2022 on the Implementing Regulation of Law No. 24 of 2019 on Creative Economy ("Regulation"). The Regulation confirms and promotes intellectual property ("IP") assets as security objects that can be used to obtain financing from banks and non-bank financial institutions. The concept of taking security over IP itself is not new. It was first introduced in Law No. 24 of 2019, which stipulated that the government would facilitate an IP financing scheme for creative economy entrepreneurs and allow them to develop a marketing system for their IP-based products.
Regulatory-wise, Law No. 42 of 1999 on Fiducia Security ("Fiducia Law") stipulates that a fiducia can be encumbered on any movable intangible object that can be owned and transferred, whether registered or unregistered. In addition, Law No. 28 of 2014 on Copyright ("Copyright Law") and Law No. 13 of 2016 on Patent ("Patent Law") stipulate explicitly that copyrights and patents can be the object of a fiducia security. In practice, we have seen IP assets, mostly trademarks, being used as security objects to secure a loan or financing transaction. Although theoretically, IP assets can be encumbered with a pledge, as suggested above, we have only seen these IP assets encumbered by way of a fiducia security and registered at the Fiducia Office.
However, the authority responsible for recording and registering the ownership over IP assets is the Directorate General of Intellectual Property ("DGIP"). Unlike land and property assets, in which ownership and security are registered in one registry maintained by the same authority, namely the National Land Agency (Badan Pertanahan Nasional or BPN), the ownership of IP assets is registered with the DGIP, but the holder of a security interest over IP assets is registered with the Fiducia Office. As analysed in this Update, while the Regulation aims to promote IP (often the sole or primary asset in the creative economy industry) as a valuable and thus acceptable security for a financing/loan transaction, there is still a gap in the practical application.
After almost a two-decades-long wait, President Joko Widodo finally issued a government regulation on state-owned enterprises. Issued on 8 June 2022, Government Regulation No. 23 of 2022 on the Amendment of Government Regulation No. 45 of 2005 on the Establishment, Management, Supervision, and Dissolution of State-Owned Enterprises ("Regulation") regulates, among others, the appointment and discharge of directors and commissioners in a state-owned enterprise ("SOE"). In addition, the Regulation also introduces detailed provisions on the personal liability of the board of directors and board of commissioners of SOE.
Globally, nations and regulators are rallying their people and businesses to combat climate change. At the most recent 2021 United Nations Climate Conference of the Conference of the Parties ("COP26"), attaining net zero emissions by mid-century was underscored as a key outcome. To achieve this target, there is an urgent need to phase out the use of unabated coal and increase investment in renewable energy ("RE"). The Association of Southeast Asian Nations ("ASEAN") member states have also affirmed their commitment to accelerate decarbonisation and cut emissions at the COP26.
Investment and deployment of RE is a key solution to decarbonisation and achieving the net zero emissions goal. ASEAN countries have taken steps to varying extents and effectiveness for energy diversification, including efforts to deploy RE and develop RE technologies. Each ASEAN country faces its own particular set of challenges and constraints in achieving its net zero emissions goal due to a myriad of factors including its stage of economic development, resources (financial and non-financial) and geographical constraints.
In this Guide, we provide an overview of the RE landscape in the region and certain salient legal and regulatory issues affecting the development and deployment of RE in Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.