INDONESIA

Five Burning Questions about the Indonesian Personal Data Protection Bill

On 20 September 2022, the Indonesian Parliament finally approved the personal data protection bill ("PDP Bill"). As the PDP Bill awaits signing by the President, we take a closer look at how personal data protection regime in Indonesia is set to change. At its essence, the PDP Bill is set to be the foundation for personal data protection in Indonesia, and existing laws regarding personal data protection will need to be aligned with the provisions in the proposed personal data protection law ("PDP Law").

In contrast to detailed or practical rules, the PDP Law currently only establishes normative provisions for personal data protection. Therefore, in order to further implement the provisions of the PDP Law, the Government will need to issue implementing regulations in the future.

As the PDP Bill currently stands, it comprises 76 articles, which are divided into 16 chapters.  Questions are to be expected, given its comprehensive nature. We disseminate some of these questions, including whether the PDP Law will be Indonesia's one comprehensive personal data protection law as well as which parties will be impacted by the PDP Law.

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

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Presidential Regulation 112: Indonesia’s Commitment to Renewable Energy

The 2007 Energy Law (Law No. 30 of 2007) established a target for Indonesia to generate 23% of its energy from renewable sources by the end of 2025, and 31% of its energy by the end of 2050. Currently, Indonesia only generates 13% of its energy from renewable sources, which falls far short of the target.

The Government has taken numerous measures over the last 15 years to meet the renewable energy target, the most recent of which is the issuance of Presidential Regulation No. 112 of 2022. This regulation introduces several measures in the hope of increasing renewable energy in Indonesia: (i) prohibiting new coal power plant development; (ii) reducing the number of coal power plants; (iii) replacing the basis of the renewable energy tariff and imposing ceiling prices based on the type and location of the renewable energy power plant; (iv) streamlining the renewable energy project procurement process; and (v) providing incentives for geothermal energy power plants.

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

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Government Regulation for IP-Based Financing Finally Enacted

The Indonesian Government recently enacted Government Regulation No. 24 of 2022 on the implementing regulation to the Creative Economy Law. The regulation promotes intellectual property ("IP") assets as security objects that can be used to obtain bank and non-bank financing. Previously, the Creative Economy Law (Law No. 24 of 2019) stipulated that the Government would facilitate an IP financing scheme for creative economy entrepreneurs and allow them to develop a marketing system for IP-based products.

The purpose of this regulation is to encourage the use of IP (which is frequently the only or primary asset in the creative economy industry) as a valuable, and hence acceptable, form of security for financial or loan transactions. However, there are still issues with its implementation. The Directorate General of Intellectual Property, which is responsible for recording and registering ownership over IP assets, has not begun accepting registration of IP assets as security, and the regulation itself does not detail the enforcement of encumbered IPs. Therefore, it is possible that the enforcement of encumbered IPs will continue to be a barrier for lenders.

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

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OJK Tightens Supervision in New Peer-to-Peer Lending Regulation

The Financial Services Authority of Indonesia or Otoritas Jasa Keuangan ("OJK"), has introduced a new regulation on peer-to-peer lending, commonly known as P2P lending. The purpose of this regulation is to promote the optimal and healthy growth of the P2P lending industry and meet OJK's requirements for effective and efficient supervision.

This new regulation introduced several new concepts in P2P lending by enhancing OJK's supervision through market conduct, and rescinded several provisions in the previous regulation on lending limits, paid-up capital and equity minimum requirements, and the licensing process. The regulation also tightens control over P2P lenders by making them go through a fit and proper test and requiring them to have and identify a controlling shareholder.

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

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New Regulation on Personal Liabilities of Directors and Commissioners in State-Owned Enterprises

On 8 June 2022, President Joko Widodo issued Government Regulation No. 23 of 2022 on state-owned enterprises ("SOEs"), specifically regulating, among others, the appointment and removal of directors and commissioners in SOEs. In addition, the regulation also states that directors and commissioners of SOEs will be personally liable for losses of the SOEs if they are proven to have been negligent when conducting their duties.

On the other hand, Articles 27(5) and 59(2) of the regulation allow directors or commissioners to be exempted from liability under the business judgment rule if they have performed their duties in good faith, have no conflicts of interest, and have taken steps to prevent the loss to the SOEs.

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

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