INDONESIA

Deadline for Electronic System Operators is Set: 20 July 2022

In its new circular letter, the Ministry of Communications and Information Technology ("Ministry") clarified the deadline for the mandatory registration requirement for electronic system operators, which was first introduced last year. The circular letter made it clear that all electronic system operators must register (or re-register, as applicable) themselves with the Ministry before 20 July 2022.

Besides the foregoing deadline, the circular letter also emphasised the administrative sanctions that may apply for failing to register, which include administrative sanctions and access blocking.

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Overview of the Procurement Guidelines for Indonesia's New Capital City

Officially kicking-off the procurement process for Indonesia's new capital city, the National Public Procurement Agency ("LKPP") issued a regulation containing a guideline for the provision of infrastructure and procurement of goods and services for the preparation, construction, and relocation of the nation's capital city.

In the regulation, LKPP requires any party wishing to participate in the procurement for the new capital city to collaborate with small local businesses, including on the use of local manpower and materials. Small local businesses in this case are those that are domiciled in Kalimantan or owned by an individual or community in Kalimantan, and satisfy the requirements set out in the regulation.

In addition, the regulation sets out guidelines for additional methods of provider selection, including e-purchasing of consultation services and beauty contests.

For more information, click here to read our Legal Update.

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IDX Enacts Regulation on Free Float for Companies with Multi-Voting Shares

To follow-up two regulations issued by the Financial Services Authority (OJK) and the Indonesia Stock Exchange ("IDX") on multiple voting rights shares, IDX issued a decree to complement the implementation of multiple voting rights shares.

Before the new decree was issued, lock-up shares, which are common shares or non-multiple voting rights shares that are subject to the eight-month lock-up period, in scrip form cannot be categorised as free float shares. Through the new decree, IDX allows scrip shares to be counted as part of the free float shares if the escrow account to deposit the scripless shares is not yet available and the scrip shares fulfil the criteria stated in the decree.  

However, once the eight-month lock-up period expires, the free float shares must fulfil the criteria under IDX's new listing regulation, including the condition for the shares to be kept in scripless form.

For more information, click here to read our Legal Update.

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Back to Business as Usual as KPPU Reverts to Original Notification Deadline and Reaffirms Competition Compliance Program

Signalling that it is back to business as usual, starting from 1 May 2022, the deadline for businesses to submit their mandatory post-closing notification returned to the original deadline of 30 business days from the effective date. Previously, the Indonesia Competition Commission ("KPPU") had extended this deadline to 60 business days at the height of the pandemic to alleviate businesses from the difficulties encountered in preparing their notification.

At the same time, KPPU also published a regulation on the Competition Compliance Program, which was first introduced under the Omnibus Law (Law No. 11 of 2020). In this Regulation, KPPU encourages businesses to prepare and implement a competition compliance program containing at least: (i) a code of ethics; (ii) a competition and antitrust handbook; and (iii) general or specific training. While businesses are free to decide whether to register their competition compliance program, if they do so, they may enjoy a reduced fine in the event of a violation.

For more information, click here to read our Legal Update.

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