Knowledge Center

OJK Issues Long-Awaited Regulation on Alternative Credit Scoring

Indonesia’s Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has issued a regulation that aims to make it easier for low-income earners and small businesses to access loans, even if they lack traditional credit histories.

Understanding Indonesia’s New VAT Calculations

Indonesia’s valued added tax (“VAT”) rate was by law increased from 11% to 12% in January 2025, but the move did not quite go as planned. A last-minute announcement by President Prabowo Subianto on 31 December 2024 halted the hike for most goods and services. Instead, the 12% rate now applies only to the delivery and import of luxury goods such...

Redefining Legal Certainty: The Constitutional Court’s Rulings on Arbitration Law

The Constitutional Court of Indonesia (“Court”) has clarified the definition of international arbitration awards and upheld the procedural fairness of their enforcement, reinforcing the finality of arbitration.

Staying Secure: Key Updates on Indonesia’s Cybersecurity Law

Indonesia, Southeast Asia’s largest economy, has experienced rapid digital transformation across sectors such as finance, healthcare, e-commerce, and government services. However, this digital growth has opened new avenues for cybercrime, including data breaches, ransomware attacks, and phishing scams.

Update on Fines and Content Takedowns for Online Platforms in Indonesia

The Indonesian government has updated its approach to fines and content takedowns for user-generated content (“UGC”) violations. Initially, enforcement will focus on online content related to gambling, pornography, and terrorism, with plans to expand to other prohibited content, such as defamation.

Ready, Set, Win! An In-Depth Look at Indonesia's New Free Prize Draw Law

Indonesia is known for its strict prohibition of gambling. But does it mean, people of Indonesia cannot win exciting prizes – through a random draw? The answer is no. It is possible and this is exactly what “free prize draws” offers.

Constitutional Court's Landmark Decision Reshapes Indonesian Manpower Law

Indonesia’s Constitutional Court has issued a decision that significantly alters various aspects of the Manpower Law. Key changes include requiring court approval for disputed terminations, capping fixed-term contracts at five years, revising wage calculations, and prioritizing Indonesians over foreigners for job vacancies.

Recent Changes to Indonesia’s Franchise Regulation: Opportunities & Challenges Ahead

Indonesia’s updated franchise rules present a mixed bag for franchisors. The good news is that the requirement to demonstrate profitability has been shortened from five years to three, making it easier for new franchisors to enter the Indonesian market. However, these changes also come with new obligations for documentation and continuous...

Indonesia Strengthens Patent Law with New Amendments

Indonesia has amended its Patent Law to strengthen protections for intellectual property, streamline patent processes and better align with international standards. The third amendment to Law No. 13 of 2016 on Patents ("Patent Law”), promulgated on 28 October 2024, aims to address both domestic industrial and research needs.

National Leadership Succession and New Hopes for Indonesia's Progress

As Indonesia embarks on a new chapter following the 2024 general elections, the nation looks set for a relatively smooth and strong transition under fresh leadership.

Regulation Sets Fines of up to IDR3 Billion for Environmental Non-Compliance

Amid concerns over environmental protection and sustainability, Indonesia has issued a new regulation that strengthens oversight and administrative penalties in the environmental sector.

Maternal and Child Welfare Law: Empowering Working Mothers and Fathers

Amid efforts to reduce mortality rates and combat stunting, Indonesia has advanced family rights with the introduction of a new law on maternal and child welfare, which also extends rights to fathers.

Switching Off Local Content Requirements for Electricity Infrastructure

In response to rising demand for cleaner energy sources, Indonesia is easing local content requirements for electricity infrastructure projects, hoping the move will attract more foreign investment in renewable energy.

Indonesia Regulates Implementation of Carbon Capture & Storage Activities

Indonesia is now actively pursuing carbon capture and storage (“CCS”) as part of its strategy to address climate change and reduce carbon emissions. This advisory provides guidance on the framework for CCS activities under Presidential Regulation No. 14 of 2024 on the Implementation of Carbon Capture & Storage Activities (“PR 14/2024”), issued...

Sneak Preview: Unveiling Indonesia’s Upcoming Franchise Regulation

Indonesia’s franchise regulatory framework has undergone significant development since its inception in 1997. It now consists of two simplified regulations: Government Regulation No. 42 of 2007 on Franchising (“GR 42/2007”) and Minister of Trade Regulation No. 71 of 2019 on the Implementation of Franchising.

OJK Mandates Reporting of Share Pledge Activities by Shareholders in Public Companies

Shareholders in public companies in Indonesia will be required to disclose share pledge activities, following the issuance of a new regulation by the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”). This regulation aims to enhance transparency and regulatory oversight within the country’s publicly-listed companies.