AGM Reminder 2017

For those companies who have completed their tax reporting responsibilities for 2016 accounting year, it is time to turn the board’s attention to the Annual General Meeting (“AGM”). Corporate governance matters are becoming increasingly important in Indonesia and for many companies, the AGM is the most important embodiment of corporate governance for the year. It is also when final dividends, if any, are decided. For those Indonesian companies whose fiscal year follows the calendar year, the deadline of 30 June for holding this year’s AGM is fast approaching.

INDONESIA'S NEW CONSTRUCTION LAW

On Thursday 15 December 2016 the House of Representatives passed the new Law on Construction Services (“New Construction Law”) that replaces the previous law (“Law No. 18/1999”). The New Construction Law was enacted by the President of the Republic of Indonesia on 12 January 2017 as Law No. 2 of 2017 on Construction. Official copies of the New Construction Law have not been published yet. However, we have reviewed the draft New Construction Law which has been passed and expect only minor changes due to editing.

NEW REGULATION ON THE PROTECTION OF PERSONAL DATA: KEY PROVISIONS

At the end of 2016, the Minister of Communication and Informatics issued Regulation No. 20 of 2016 on Personal Data Protection within Electronic Systems (“Regulation 20/2016”) to implement Article 15 (3) of Government Regulation No. 82 of 2012 on the Organization of Electronic Systems and Transactions (“GR 82/2012”). The regulation was issued on 7 November 2016 and came into force on 1 December 2016. Existing electronic system providers must adjust to the regulation within 2 years of its issuance.

BANK INDONESIA REGULATES THE FINTECH BUSINESS

On 14 November 2016, Bank Indonesia officially launched its Financial Technology (or FinTech) Office. The event was followed by the issuance of Bank Indonesia Regulation No.18/40/PBI/2016 on the Organization of Payment Transaction Processing (“PBI 18/40”) that is available through Bank Indonesia’s official website (even though the regulation came into effect on 9 November 2016).

CONSTITUTIONAL COURT RULING ON PRENUPTIAL AGREEMENT

The Constitutional Court on 27 October 2016 ruled on a judicial review application of Articles 21 (1) and (3) and 36 (1) of Law No. 5 of 1960 on Basic Provisions on Agrarian Principles (“Agrarian Law”) and Articles 29 (1), (3) and (4) and 35 (1) of Law No. 1 of 1974 on Marriage (“Marriage Law”) through ruling No. 69/PUU-XIII/2015.