By Ira Eddymurthy and Aryasena S. Ajie Kolopaking Microfinance Institutions (MFIs) play an important role in Indonesia, dispensing financial support to people and small businesses that might not have qualified in the traditional banking system. Until recently MFIs largely operated without a comprehensive regulatory framework to guide their operations, and with little supervision.
By Lasmaroha Simbolon & Bezaliel B. Erlan
Indonesia's central bank, Bank Indonesia (BI), has issued a regulation designed to improve the competitiveness of the banking system by streamlining bank ownership through consolidation and enhancing supervision, particularly in the area of good corporate governance.
BI Regulation No. 14/24/PBI/2012 regarding Single Ownership in Indonesian Banks was issued on December 26, 2012. It addresses what is known as the Single Presence Policy (SPP) and is seen by the central bank as a tool to strengthen the foundation of Indonesiaâs banking industry.
By Maria Yudhitama Eka Dewi
Bank Indonesia has issued a regulation to improve the competitiveness of local banks in providing trust services, basically the management of assets. In particular, the new regulation is addressed to oil and gas companies operating in Indonesia, which keep much of their foreign exchange proceeds outside of the country, utilizing trust services provided by foreign banks.
By Douglas G. Smith
Foreign and foreign-owned enterprises represent some of the largest employers in Indonesia. Accordingly, some foreign companies expressed consternation when, on February 29, 2012, the country's Ministry of Manpower and Transmigration issued Decree No. 40 of 2012 on Certain Positions that Are Restricted for Foreign Workers (the Decree). The Decree, among other things, lists 19 positions that cannot be held by non-Indonesian nationals, all related to the field of human resources.
Actually, the Decree should not have come as a surprise. Article 46(1) of Law No. 13 of 2003 (March 25, 2003) on Manpower, as amended by Constitutional Court Decision No. 012/PUU-I/2003 of October 28, 2004 (the Manpower Law), already stipulated a prohibition on foreign workers holding a position managing personnel and/or certain positions. Article 46(2) of the Manpower Law goes on to provide that those positions are to be determined by and specified in a Ministerial Decision or Decree.
The affected positions are set out below: