Legal Updates for January 2024

The Revamped Electronic Information and Transaction Law: A New Year's Transformation

The Electronic Information and Transaction Law, initially amended in 2016 ("EIT Law"), underwent a significant transformation on 2 January 2024 with the enactment of the government-initiated and second amendment of the EIT Law ("Second Amendment").

In this edition of our client update, we will explore the below key provisions introduced by the Second Amendment:

  1. Online child safety;
  2. Mandatory use of electronic certification for high-risk electronic transactions;
  3. Indonesian law as the choice of law for international electronic contracts; and
  4. Strengthening government supervision and clarification of prohibited content.
New KPPU Commissioners for the 2024-2029 Period Announced

On 18 January 2024, President Joko Widodo appointed the new commissioners of the KPPU (Komisi Pengawas Persaingan Usaha or the Indonesia Competition Commission) for the 2024-2029 period. This appointment had been anticipated by many, following a series of selection processes initiated by the selection committee formed by the President from around the end of 2022, as well as the fit and proper test by the House of Representatives.

Unlike in other jurisdictions where each commissioner may have different term of office, all members of the commissioners in the KPPU have the same office term, currently set from 2024 to 2029. Accordingly, the appointment of KPPU commissioners is made to replace the entire set of commissioners who were in office for the previous term. A commissioner of the previous term can still hold office for the next term following the same selection process.

The Resurgence of Artificial Intelligence

2023 was all about Artificial Intelligence or AI; this tech darling’s worldwide rise is poised to continue in 2024. AI’s benefit is well documented as its application continues to evolve. Naturally, issues and downsides are also anticipated, and many pundits predicted that AI-related dispute will increase in 2024. Hence, it was no surprise that 2023 closes with The New York Times suing OpenAI and Microsoft for alleged IP rights infringement. The New York Times alleges OpenAI of developing its AI by using The New York Times’ publication without due regard of intellectual property rights. 

The trend in Indonesia is no different when it comes to AI. In anticipation of negative impacts from its increasing use, the Indonesian government has taken steps to regulate it. Similar to positions undertaken in other jurisdictions, the Indonesian government also adopted a ‘soft law’ approach to AI governance, where ethical guidelines are the norm.

In this client update, we will take a closer look at the two most recent guidelines on AI governance framework, which were issued almost simultaneously by the Ministry of Communication and Informatics (“Ministry”) and the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”).

Regional Guide on Listings & Initial Public Offerings in Southeast Asia

Rajah & Tann Asia is pleased to present this guide on listings and initial public offerings in Southeast Asia to you, which we believe will be a useful aid to listing aspirants in the Asia region. As a summary, this guide gives a general overview of the key requirements and processes involved in listings and initial public offerings in the following jurisdictions: 

  • Singapore
  • Indonesia
  • Malaysia
  • Thailand
  • Cambodia
  • Vietnam 

In addition to the above, this guide also provides a general overview of the capital markets and/or stock exchanges in the region. 

Rajah & Tann Asia is here to assist you in every step of your way towards a successful listing. If you have any queries on any specific jurisdiction(s), please feel free to reach out to any one of our experts in our Rajah & Tann Asia and we will be happy to assist.

 This publication is up to date as of 3 January 2024.  As the report is cast in general terms and not exhaustive, detailed advice must be sought on specific situations or queries. 

OJK Encourages Productive Loan in New Peer-to-Peer Implementing Regulation: What is the Impact for Businesses?

In November 2023, Indonesia’s Financial Services Authority or OJK (Otoritas Jasa Keuangan) introduced a new implementing regulation on peer-to-peer or P2P lending (which itself is regulated by OJK Regulation No. 10/POJK.05/2022 on Information Technology-Based Collective Financing Services (“P2P Regulation”).

The new implementing regulation, Circular Letter No. 19/SEOJK.06/2023 on the Organisation of Information Technology-Based Collective Financing Services (“Circular Letter”) regulates the provisions in the P2P Regulation in more detail, most notably on maximum economic benefit, scoring criteria of borrowers, level of loan quality, and performance publication. Clients should note that the implementing circular letter for the previous regulation, namely OJK Circular Letter No. 18/SEOJK.02/2017, has not been revoked. As it is also in line with the new Circular Letter, it remains valid.