Indonesia: Indonesia Quarterly Regulatory Update May – September 2022

Minister of Trade Regulation No. 25 of 2022 on Amendment to Minister of Trade Regulation No. 20 of 2021 on Policies and Regulations on Imports ("MoT Reg. 25/2022")

Enforcement Date:

24 May 2022

• Under MoT Reg. 25/2022, Importers shall apply through Indonesia's National Single Window System ("SINSW") to obtain a business license for import activities issued by the Ministry of Trade.
• MoT Reg. 25/2022 also stipulates that before any import activity take place, an Importer is required to submit a commitment statement for the issuance of the business license in the form of an import approval. Please note that any Importer who has secured the business license is still required to submit the commitment statement

Bank Indonesia Board of Governors Regulation No. 24/8/PADG/2022 on Implementing Regulations for the Fulfillment of Minimum Statutory Reserves in Rupiah and Foreign Exchange by Conventional Commercial Banks, Sharia Commercial Banks, and Sharia Business Units ("GBI Reg. 24/8/2022")

Enforcement date:

1 July 2022

• The minimum Statutory Reserve Requirement (Giro Wajib Minimum or "GWM") for Conventional Commercial Banks is 7.5% in effect starting from 1 July 2022 until August 2022, and 9% in effect starting from 1 September 2022
• The minimum GWM for Sharia Commercial Banks and Sharia Business Units is 6%, in effect starting from 1 July until 31 August 2022, and 7.5% in effect starting from 1 September 2022.

Financial Services Authority (Otoritas Jasa Keuangan or "OJK") Regulation No. 11/POJK.03/2022 on Implementation of Information Technology by Commercial Banks ("POJK 11/2022")

Enforcement date:

7 October 2022

• Based on POJK 11/2022, all banks shall implement good Information Technology ("IT") governance, which includes:
• 1. IT Management
  2. IT Infrastructure
  3. Risk Management
  4. Cyber Defense and Security
  5. Data Processing
  6. Personal Data Protection
• Under the reporting mechanism, any commercial bank must deliver reports to OJK in respect of their:
• 1. IT development plan
  2. Report of IT implementation
  3. Initial notifications and IT incident report
  4. Realization report of IT Banking implementation

OJK Regulation No. 8/POJK.04/2022 on Reporting for Securities Companies Conducting Business Activities as Securities Underwriters and Securities Brokers ("POJK 8/2022")

Enforcement date:

19 May 2022

• It is mandatory for Securities Underwriters (penjamin emisi efek or "PEE") and Securities Brokers (perantara pedagang efek or "PPE") have to submit regular (i.e., daily, monthly, quarterly, semi-annual, and annual) and incidental reports to OJK. PEEs and PPEs are exempted from the reporting obligation if they:
• 1. no longer have management and physical offices.
  2. in the stage of clearing their customers' assets or having their licenses revoked.

Government Regulation No. 31 of 2022 on Foreign Capital Ownership in Securities Companies ("GR 31/2022")

Enforcement date:

13 September 2022

• Based on GR 31/2022, a Securities Company can be classified as:
• 1. National Securities Company if it is owned by an Indonesian person and/or Indonesian legal entity; or
  2. Joint-venture Securities Company if it is owned by Indonesian and foreign entities ("JV Securities").
• A foreign entity not engaging in the securities sector may possess the maximum 85% of the paid-up capital in a JV Securities
• A foreign-licensed securities entity may possess the maximum 99% of the paid-up capital in a JV Securities