Ali Budiardjo, Nugroho, Reksodiputro updates

MEMR moves quickly to limit application of coal price caps to new contracts
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • April 02 2018

Following the recent issuance of the ​Ministry of Energy and Mineral Resources decree which imposed price caps on coal supplied for power generation in the public interest, the coal industry was expected to undertake significant lobbying in order to reduce or limit the decree's impact. This anticipated lobbying appears to have commenced already, as the decree was amended on March 12 2018 after having been on the statute books for just four days.

Government caps prices of coal for power generation
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • March 26 2018

The government recently imposed caps on the prices payable for coal to be used for power generation in the public interest. The maximum price payable under the new Ministry of Energy and Mineral Resources decree is 30% less than the Indonesian benchmark price for equivalent coal sold for export in February 2018, which means that the country's coal producers will suffer a substantial cut to their profitability by selling coal for domestic power generation.

MEMR delivers on promise to revoke regulations
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • March 19 2018

The Ministry of Energy and Mineral Resources recently announced the revocation of 32 regulations in furtherance of the government's efforts to reduce the regulatory burden on the energy and mineral resources sector. However, it was unclear which of these regulations had been revoked before the announcement and which would be revoked in the future. This situation has now been clarified with the issuance of four new revoking regulations, which form part of what some have called a 'big-bang' reform.

MEMR announces easing of regulatory burden for new and renewable energy sector
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • March 05 2018

The Ministry of Energy and Mineral Resources recently announced the revocation of 32 regulations in the energy and mineral resources sector, three of which are of particular importance to independent power producers in the new and renewable power sub-sector. However, a subsequent examination revealed that most if not all of the regulations have yet to be revoked, and the lack of clarity in this regard has called the ministry's commitment to transparency into question.

New OJK regulation on single presence policy
Ali Budiardjo, Nugroho, Reksodiputro
  • Banking
  • Indonesia
  • February 23 2018

The new Financial Services Authority Regulation on the Single Presence Policy in Indonesian Banking was issued in July 2017. The policy aims to ensure that a single entity does not simultaneously hold a controlling interest in more than one bank. Therefore, a controlling shareholder of more than one bank is required to merge or consolidate its controlled banks, establish a bank holding company or establish a holding function.

New rules on employment of expatriates in banking sector
Ali Budiardjo, Nugroho, Reksodiputro
  • Banking
  • Indonesia
  • February 09 2018

The Financial Services Authority (OJK) has introduced rules for the employment of expatriates and the transfer of knowledge in the banking sector, pursuant to which it has taken over the supervisory role previously performed by Bank Indonesia. Therefore, in order to employ an expatriate, a bank must now obtain OJK approval and submit reports on its expatriate staff. An expatriate's work permit will be processed by the Ministry of Manpower only after having been approved by the OJK.

Permit to establish foreign representative office in oil and gas sub-sector can now be obtained online
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • February 05 2018

The Indonesian Investment Coordinating Board recently issued the Regulation concerning Guidelines and Procedures for Investment Licensing and Facilities. As regards the oil and gas sub-sector, the regulation states that a permanent business entity may apply for a permit to establish a foreign representative office in the oil and gas sub-sector through the Electronic Investment Information and Licensing Services. Foreign representative office permits are valid for three years and are extendable.

New procedure for manpower reporting
Ali Budiardjo, Nugroho, Reksodiputro
  • Company & Commercial
  • Indonesia
  • January 22 2018

The Ministry of Manpower recently issued Regulation 18/2017, which introduces an online-only procedure for mandatory manpower reporting. The regulation specifies when companies must submit an online report and requires them to do so via the ministry website. It also regulates the usage and management of data from manpower reports.

New Bill on Palm Oil: incentive package for businesses
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • November 20 2017

The government and the House of Representatives recently agreed to prioritise the Bill on Palm Oil's enactment in 2017. This is despite the fact that the bill has been subject to criticism, particularly from environmental activists, who argue that there is no urgency for its enactment as most of the provisions are already contained in the Plantation Law. Regardless of the controversy surrounding its enactment, the bill contains a number of key provisions.

OJK tightens control over bankruptcy disclosure by issuers and public companies
Ali Budiardjo, Nugroho, Reksodiputro
  • Capital Markets
  • Indonesia
  • November 07 2017

A recent Financial Services Authority (OJK) regulation sets out new disclosure obligations that apply to issuers and public companies in Indonesia and creates a new penalty regime for non-compliance. The regulation is significant for investors with an interest in the Indonesian Stock Exchange and is consistent with other measures that the OJK has taken to improve transparency and align the reporting obligations of issuers and public companies with international standards.

Simplified application procedures for oil and gas licences
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • November 06 2017

To promote a more conducive investment climate, the Ministry of Energy and Natural Resources recently simplified and streamlined the procedures for the application of upstream and downstream oil and gas-related licences through the Regulation concerning Licences in the Field of Oil and Gas. The new regulation has introduced some welcome changes – namely, licence applications can now be made online and most licences can now be issued within 10 to 15 calendar days.

More relaxed supervision in energy and mineral resources sector
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • September 11 2017

The minister of energy and mineral resources recently enacted Regulation 48/2017 on the supervision of business activities in the energy and mineral resources sector, which revoked the short-lived Regulation 42/2017 on the same subject. In a press release, the minister explained that the regulation's aim is to accommodate the interests of investors and prevent any hindrance to investment.

New regulations to prevent financial crises and improve financial stability
Ali Budiardjo, Nugroho, Reksodiputro
  • Banking
  • Indonesia
  • September 08 2017

New regulations require the banking and finance industries to comply with heightened supervision by financial authorities and will be welcomed by foreign investors and customers concerned with Indonesia's financial stability. Key developments include intensifying reporting obligations for systemically important banks, introducing tiered supervision and raising safeguard measures.

New provisions support use of renewable energy in electricity generation
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • August 28 2017

Despite the primary role that coal and gas continue to play in meeting Indonesia's electricity needs, the government seems to be demonstrating a commitment to promoting renewable energies. New regulations have provided clarity for investors interested in solar, wind, hydro, geothermal and biogas projects by introducing incentives for undertaking such projects, detailing the procedures for renewable power purchase agreements and updating the tariff rates.

New mineral export rules and their implications for mining companies
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • August 21 2017

A recently promulgated regulation has triggered a major shift in Indonesia's mineral and coal mining industries. Mineral mining companies that depend heavily on mineral exports will be particularly affected by the new policies. Primary changes require all companies operating under a contract of work to transfer to a single licensing regime and introduce stringent mineral export processing standards.

OJK issues new regulation regarding public companies' shareholding reporting obligations
Ali Budiardjo, Nugroho, Reksodiputro
  • Capital Markets
  • Indonesia
  • May 30 2017

The Financial Services Authority (OJK) recently amended public companies' obligation to report on their shareholding by way of OJK Regulation 11/POJK.04/2017 regarding Reporting on Public Company Ownership or on Every Change in Share Ownership. The regulation aims to bring public companies' reporting obligations in line with international standards.

OJK's regulation on fintech-based lending services
Ali Budiardjo, Nugroho, Reksodiputro
  • Banking
  • Indonesia
  • May 19 2017

To support the development of a technology-based financial industry in Indonesia, the Financial Services Authority recently issued Regulation 77/POJK01/2016 regarding technology-based fund-lending services. The regulation is designed to protect consumer and national interests, while at the same time provide opportunities for local providers of financial technology to grow and contribute to the national economy.

Amendment to nuisance permit regulation
Ali Budiardjo, Nugroho, Reksodiputro
  • Company & Commercial
  • Indonesia
  • November 07 2016

The minister of home affairs recently enacted Regulation 22/2016, amending Regulation 27/2009 on the Guidelines for the Granting of Regional Nuisance Permits. The amendment is part of the president's policy to reduce the number of business permits and licences required to start a business. It introduces important changes to the criteria considered in nuisance permit applications and the types of business that are exempted from the requirement to obtain a permit.

New regulation on export sales of processed and purified minerals
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • June 06 2016

The minister of energy and mineral resources recently issued the Regulation on the Procedure for the Issuance of Recommendation for Export Sales of Processed and Purified Minerals. The regulation – which has simplified the mineral export procedure – covers mineral export sales, the recommendation procedure, domestic refining facility construction plans and the issuance of performance bonds.

Government issues presidential regulation to accelerate electricity infrastructure development
Ali Budiardjo, Nugroho, Reksodiputro
  • Energy & Natural Resources
  • Indonesia
  • May 23 2016

The government recently promulgated Presidential Regulation 4/2016 on Acceleration of Electricity Infrastructure Development as part of its commitment to ensuring the success of the 35,000 megawatt programme. The regulation shows the government's support for the prioritisation of new and renewable energy for the implementation of the development and provision of easy licence and permit processes.

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