E-Court Registration is now Mandatory for Civil Cases

As part of the push to file civil cases electronically in Indonesia, the Indonesian Supreme Court recently issued a Circular Letter to further emphasize this requirement.

In essence, this Circular Letter requires all District Court of Special IA Class, IA Class, and all District Courts under the jurisdictions of the Banten High Court, Jakarta High Court, Bandung High Court, Semarang High Court, Yogyakarta High Court, and Surabaya High Court to implement electronic registration of civil cases.

In order to ensure that e-registration is implemented effectively, the Circular Letter obliges:

• all Chairman of the District Courts to implement and monitor the One Stop Service Centre ("PTSP") and the Legal Aid Office within their courts and direct the registration of any civil case through the e-court system;
• all PTSP to employ IT staff/specialist to assist with the e-registration system; and
• all Chairman of the High Court to monitor and evaluate the implementation of e-court on a monthly basis.

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Indonesian Competition Commission Issues a New Regulation on Case Handling Procedure

The Indonesian Competition Commission ("KPPU") issued a new regulation on case handling procedure which will apply to cases commenced after 4 February 2019.

The most notable feature under this new regulation is the introduction of behavioural remedy, which allows a defendant to plead guilty at the beginning of a hearing and for the defendant to agree to change its behaviour in order to terminate the case against it. Other new provisions include the recognition of indirect evidence and expansion of the measures that can be taken by KPPU against a defendant who fails to comply with a final and binding decision.

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New Capital Market Regulation Aims to Provide Greater Protection for Minority Shareholders

In April 2019, the Indonesian Financial Services Authority ("OJK") issued a new regulation on capital increase with pre-emptive rights. This new regulation aims to provide greater protection for minority shareholders, especially in relation to an increase of capital whether through pre-emptive rights or not.

The key changes under the new regulation are as follows:

• if a capital increase without rights issue is undertaken for purposes other than to improve the financial position of the company, then the general meeting of shareholders approving such capital increase must be attended and approved by more than ½ of the total shares with valid voting rights held by the independent shareholders and the shareholders that are not an affiliated party, member of the board of directors or board of commissioners, or a majority/controlling shareholder of the public company; and
• a capital increase for purposes other than to improve the financial position of a company is capped at 10%. This 10% cap is based on a calculation that results in a smaller dilution effect for the minority shareholders.

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