Legal Updates for September 2022

Five Burning Questions about the Indonesian Personal Data Protection Bill

After more than two years in the pipeline, the Indonesian Parliament finally passed the long-awaited personal data protection bill (“PDP Bill”) on 20 September 2022. Once the PDP Bill is enacted into law, it will be the basis for personal data protection matters in Indonesia, and this means that existing laws that contain personal data protection rules must be brought in line with the provisions of the proposed personal data protection law (“PDP Law”).

The PDP Law sets out normative provisions for personal data protection, as opposed to detailed or practical rules. Thus, the government will have to issue implementing regulations in the future to further regulate the provisions in the PDP Law.

Presidential Regulation 112: Indonesia's Commitment to Renewable Energy

As the fourth most populous country in the world and the largest economy in Southeast Asia, Indonesia’s energy demands are continuously growing. As of 2021, 87% of current energy are generated from fossil fuel, and only 13% are generated from renewable energy. This is still below the portion pledged by the government of 23% by the end of 2025 and 31% by end of 2050 under the 2007 Energy Law (Law No. 30 of 2007).

To fulfil the foregoing pledge, the government has issued, amended, and revoked several policies in the past 15 years to meet the renewable energy target. The latest of this measure is the issuance of Presidential Regulation No. 112 of 2022 on the Acceleration of Renewable Energy Development for Power Supply (“PR 112”), which the government hopes to be push that Indonesia requires to boost the development of renewable energy.


BPK Prepares a New Regulation to Recover State Losses

Since its establishment in 2006, the Audit Board of the Republic of Indonesia (Badan Pemeriksa Keuangan or "BPK") has been regularly auditing state-owned enterprises ("BUMN") and regional government-owned enterprises ("BUMD") for indications of corruption. As part of this auditing authority, Article 12 of Law No. 15 of 2006 on the Audit Board of the Republic of Indonesia ("BPK Law") also mandates the BPK to regulate further the exercise of its authority to evaluate and determine state losses that result from the actions of the following parties: (i) a treasurer; (ii) a member of the management of a BUMN and BUMD; and (iii) any other related company or institution that manages the state’s finance.

This ability to further regulate also encompasses the authority to recover state losses by requiring the abovementioned parties to compensate the state losses.

However, to date, BPK has yet to issue a regulation to address and accommodate the above mandate specifically relating to the persons listed in points (ii) and (iii), despite already enacting BPK Regulation No. 3 of 2007 on Settlement of State Losses against Treasurers. As a result, there is no clear mechanism on how recovery efforts can be carried out against a member of the management of a BUMN or BUMD and related companies or institutions. In fact, there are different practices on how the state (including via the relevant BUMN, BUMD, or related company and institution) can carry out settlement or recovery efforts.

From the information that we have gathered, BPK is currently drafting a regulation to accommodate the mandate under the BPK Law.