Blog Category: Legal Updates

Fintech in Indonesia: Is Consumer Lending Regulated?

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Consumer lending is regulated in Indonesia, with a particular focus on IT-based money lending services (peer-to-peer lending), as regulated under Financial Services Authority (OJK) Regulation No. 10/POJK.05/2022 regarding Information Technology-Based Co-Financing Services (OJK Reg. 10/2022). This regulation requires providers of IT-based co-financing services to be a limited liability company and meet certain prerequisites. The OJK … Fintech in Indonesia: Is Consumer Lending Regulated?

Corporate Governance in Indonesia: Appointment and Removal of Directors/Officers

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As a general rule in Indonesia, the appointment of a member of the board of directors (BOD) is conducted through a general meeting of shareholders (GMS), in accordance with Article 94, paragraph 1 of the Company Law. Directors may be appointed for a specific term and may be reappointed. Each appointment is effective on the … Corporate Governance in Indonesia: Appointment and Removal of Directors/Officers

Legal Framework Governing Cryptoassets in Indonesia

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The crypto industry in Indonesia falls under the auspices of the Commodity Futures Trading Supervisory Body (Bappebti), under the Ministry of Trade (MOT) and in coordination with other institutions such as the Financial Services Authority (OJK), Bank Indonesia (BI) and the Ministry of Communication and Informatics (the MOCI). The MOT has acknowledged cryptoassets, including but … Legal Framework Governing Cryptoassets in Indonesia

Litigation in Indonesia: A Quick Look at the Settlement Process

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In the context of litigation in Indonesia, are there any rules governing the settlement process? Can parties keep settlement discussions confidential from the court? The presiding judge is mandated to oblige the parties involved in a case to undergo a settlement procedure (i.e., mediation) prior to the case examination. Should the attempt at settlement prove … Litigation in Indonesia: A Quick Look at the Settlement Process

Indonesia Legal Update: Termination of Employment During Probation Period

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As background, the probation period in Indonesia is recognized by Article 60 of Law 13/2003 on Manpower as amended. A probation period can only be required for employees with an Indefinite Term Employment Agreement (Perjanjian Kerja Waktu Tidak Tertentu or “PKWTT”), with a maximum period of three months. The elucidation of the article further states … Indonesia Legal Update: Termination of Employment During Probation Period

Terms of Employment in Indonesia

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Normal working hours in Indonesia are prescribed by Government Regulation No. 35/2021 of 2 February 2021 regarding fixed-term employment agreements, outsourcing, working hours and rest hours, and termination of employment (GR 35/2021) as not more than seven hours per day and 40 hours per week based on a six-day working week or eight hours per … Terms of Employment in Indonesia

Shifting Tides: The Third Amendment to the Shipping Law and Its Impact on Indonesian Shipping Joint Ventures

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The third amendment to Indonesia’s Shipping Law, through Law No. 66 of 2024 regarding the Third Amendment to Law No. 7 of 2008 on Shipping (“Third Amendment”), had a massive impact on Indonesian shipping joint ventures, i.e., shipping companies with a foreign entity as a shareholder (“Shipping JV”). The Third Amendment introduces, among other things, … Shifting Tides: The Third Amendment to the Shipping Law and Its Impact on Indonesian Shipping Joint Ventures