Mr Hamud Balfas

Hamud Balfas

Updates

Banking

Draft banking law proposes big changes
Indonesia | 13 February 2015

With the introduction of the new Banking Bill in Parliament, the Indonesian banking industry is set to enter a new phase. Unlike the existing law, the new bill is clearly underpinned by a spirit of nationalism, stressing reciprocal treatment of Indonesian banks operating in other countries and requiring the financial authorities to ensure this reciprocity at home.

New risk management regulations for financial services conglomerates
Indonesia | 16 January 2015

The newly established Financial Services Authority recently issued a set of regulations governing the financial services industry. The regulations are intended to promote sustainability, stability and competitiveness in light of the increasing complexity of transactions and interactions between financial institutions, as well as between companies within a financial conglomerate.

New bank regulations on minimum capital requirements and multiple licensing
Indonesia | 31 January 2014

The Indonesian central bank, Bank Indonesia, has issued two regulations that will change the way in which banks in the country do business. The regulations govern the business activities of banks on the basis of their capital. As a result, commercial banks which in the past had more freedom in their operations are now limited to undertaking business transactions that are in line with their capital strength.

Bank Indonesia updates regulation on single presence policy
Indonesia | 23 August 2013

Bank Indonesia has issued the updated Regulation on Single Ownership in Indonesian Banks in an attempt to improve the competitiveness of Indonesia's banking industry in light of economic development at regional and global levels by reducing the number of Indonesian banks through consolidation. This policy is commonly known as the 'single presence policy' and was first introduced by Bank Indonesia in 2006.

Regulation issued on bank ownership
Indonesia | 25 January 2013

After heated debate among regulators and politicians on what was seen as unhealthy concentrated ownership of banks by groups of companies – particularly foreign groups of companies – Bank Indonesia, the country's central bank and industry regulator, has issued the Regulation on Ownership of Shares in Commercial Banks, which restricts ownership of banks by individual shareholders.

Landmark legislation on new financial regulator
Indonesia | 20 January 2012

Parliament's long-awaited approval of the Bill on the Financial Services Authority is one of the most significant developments in the history of Indonesian law and will change the landscape of the country's financial industry. It not only establishes a new financial services authority, but also positions this new body as the main regulator and supervisor of Indonesia's financial sector.

New Bank Indonesia regulations on foreign exchange
Indonesia | 18 November 2011

In light of the current financial instability, Bank Indonesia has recently issued three regulations in an effort to make Indonesian exporters deposit their export revenues into banks in Indonesia. They include the requirement that stipulates that all foreign exchange export proceeds be received and deposited by the exporter in a foreign exchange bank.

Asset quality assessment of Sharia banks
Indonesia | 10 June 2011

Bank Indonesia has issued the Regulation on Asset Quality Assessment for Commercial Sharia Banks and Sharia Business Units. It requires Sharia-compliant banks and Sharia business units to assess and supervise their own asset activities and to be proactive in ensuring the liquidity of their productive and non-productive assets.

Submitting reports on suspicious financial transactions
Indonesia | 11 March 2011

The head of the Indonesian Financial Transactions Report and Analysis Centre has issued a new regulation on the procedure for the submission of reports on suspicious financial transactions. Among other things, the regulation is intended to prevent and eventually abolish money laundering, and to improve the reporting system used by financial providers.

Bank Indonesia issues Regulation on Monetary Operations
Indonesia | 17 September 2010

Bank Indonesia's Regulation on Monetary Operations is in effect. Among other things, the regulation stipulates the mechanics and instruments that the bank uses in its open market operations, including the purchase and sale of securities and foreign currencies. A key provision regulates the administration and trading of Bank Indonesia certificates.

New prudential principles for banks as agents for foreign financial products
Indonesia | 03 September 2010

Bank Indonesia recently issued a number of regulations as part of a new monetary policy package, including the Regulation on Commercial Banks' Obligation to Apply the Prudential Principles in their Activities as Agent for Overseas Financial Products. Among other things, the new regulation broadens the scope of what Bank Indonesia considers to be agency activities in foreign financial products.

Bank Indonesia imposes reporting requirement for new products and services
Indonesia | 01 April 2010

A new Bank Indonesia circular implements the Regulation on Risk Management Application for Commercial Banks, which seeks to address the ever-growing risks arising from the increased complexity of banking products and services. In essence, the circular states that all banks must obtain Bank Indonesia's confirmation before issuing a new product or engaging in a new activity.

Bank Indonesia Introduces Shariah-Based Intra-day Liquidity Facility
Indonesia | 02 October 2009

Bank Indonesia has introduced an intra-day liquidity facility to ensure smoother payments for banks that operate on the basis of Islamic and shariah principles. It is hoped that the facility will help to prevent payment gridlocks in money transfers or securities transfers that could cause wider instability in Indonesia's financial system.

Bank Indonesia Issues E-money Regulations
Indonesia | 19 June 2009

In order to address developments in the use of electronic money as a payment instrument, Bank Indonesia has issued two comprehensive regulations on the subject. They apply not only to banking institutions, which are traditionally under the watch of Bank Indonesia, but also to other institutions that act as principals, issuers, acquirers, clearing entities or settlement agencies for payment card business.

Capital Markets

New risk management regulations for financial services conglomerates
Indonesia | 13 January 2015

The newly established Financial Services Authority recently issued a set of regulations governing the financial services industry. The regulations are intended to promote sustainability, stability and competitiveness in light of the increasing complexity of transactions and interactions between financial institutions, as well as between companies within a financial conglomerate.

New regulation on material transactions
Indonesia | 24 January 2012

The chairman of the Indonesian securities regulator, Bapepam-LK, has issued a new regulation on material transactions. The regulation seeks not only to perfect the regulation of material transactions, but also to simplify the procedure for a public company to obtain funding through private offerings of debt securities.

Landmark legislation on new financial regulator
Indonesia | 17 January 2012

Parliament's long-awaited approval of the Bill on the Financial Services Authority is one of the most significant developments in the history of Indonesian law and will change the landscape of the country's financial industry. It not only establishes a new financial services authority, but also positions this new body as the main regulator and supervisor of Indonesia's financial sector.

Submitting reports on suspicious financial transactions
Indonesia | 08 March 2011

The head of the Indonesian Financial Transactions Report and Analysis Centre has issued a new regulation on the procedure for the submission of reports on suspicious financial transactions. Among other things, the regulation is intended to prevent and eventually abolish money laundering, and to improve the reporting system used by financial providers.

Public companies may issue shares with different nominal value
Indonesia | 30 November 2010

After allowing issuers and public companies to issue shares with nominal value during the last financial crisis in the late 1990s, Bapepam – the Capital Market and Financial Institutions Supervisory Agency – finally issued Regulation IX.D.6 on the issuance of shares with different nominal value, which provides formal regulatory framework for this type of share issuance.

New regulation on debt securities trusteeship
Indonesia | 02 November 2010

The Capital Markets and Financial Markets Supervisory Agency has issued a regulation that contains extensive provisions on trustee-related matters, enumerating trustees' tasks, obligations and prohibited actions. However, most of the regulation deals with trusteeship contracts, including the identity of the parties in a debt issuance agreement, buy-back mechanisms and the tasks and obligations of a paying agent.

New regulation on discretionary fund management
Indonesia | 27 July 2010

The Capital Market and Financial Institutions Supervisory Board has issued guidelines on the management of individual customers' securities portfolios. The guidelines were issued as Regulation VG6, which aims to regulate discretionary fund management for the funds of a securities company's individual customers, and requires fund managers to enter into a discretionary fund agreement with the investor concerned.

New regulations extend affiliated and material transaction rules
Indonesia | 09 February 2010

A revision to the Regulation on Affiliated Transactions and Conflict-of-Interest Transactions has clarified the term 'affiliated transaction' and - among other things - requires companies to present a comparative analysis if another transaction of the same nature is conducted simultaneously. Other regulatory changes redefine the term 'material transaction' and raise the qualifying threshold for such transactions.

New Regulations on Public Offerings
Indonesia | 01 September 2009

The Capital Market and Financial Institution Supervisory Agency is continuing its efforts to improve the efficiency and effectiveness of public offering procedures. Among other things, a new regulation allows the agency to issue a statement that allows an issuer to conduct book building. It also provides issuers with mechanisms for discontinuing and suspending an offering because of market conditions.

New Standards for Securities Rating Agencies
Indonesia | 04 August 2009

The Capital Market and Financial Institution Supervisory Agency has issued long-awaited rules and regulations on securities rating agencies. The new regulations require an agency's directors, commissioners and analysts to meet standards of integrity, competence and expertise.

New Regulation on Margin Trading and Short Selling
Indonesia | 28 April 2009

The Indonesian Stock Exchange's Regulation on Margin Transactions and Short Selling is aimed at providing greater clarification on the procedures for obtaining approval for margin and short-selling activities by members of the stock exchange. It clarifies the reporting requirements and periodical inspection regime to which members are subject.

Corporate Finance/M&A

New regulation on share buybacks unveiled
Indonesia | 23 June 2010

The Capital Market and Financial Institutions Supervisory Board has issued a regulation regarding the buyback of shares issued by issuers or public companies. This regulation repealed and replaced previous decisions on the same subject matter. Among the board's considerations for issuing the regulation was the need to implement policies that are in line with provisions on share buybacks of the new Company Law.

Energy & Natural Resources

Regulation eases restrictions on export of minerals
Indonesia | 24 September 2012

The minister of energy and mineral resources has issued Regulation 11/2012, which amends the obligation to refine minerals imposed under Regulation 7/2012 on Increasing Minerals' Added Value Through Mineral Processing and Refining Activities. This new regulation relaxes the previous ban on miners exporting raw materials, ore and rocks.

New export procedures for mining products introduced
Indonesia | 28 August 2012

In an effort to curb raw mineral exports, the minister of trade has issued the Regulation on Provisions of Mining Products Export. The mining products subject to the regulation comprise 65 metal minerals, non-metal minerals and rocks. Under the regulation, these regulated products may be sourced only from parties that hold a mining permit and their export may be conducted only by exporters that are licensed as a registered exporter.

CSR now mandatory for natural resources companies
Indonesia | 02 July 2012

The president has finally signed the long-awaited implementing regulation for Article 74(4) of Law on Limited Liability Companies. The regulation answers the controversial question of whether corporate social responsibility is voluntary or obligatory for companies, and has particular relevance for natural resources companies and those in related industries.

New cross-border power sale and purchase regime in place
Indonesia | 01 June 2012

Government Regulation 42/2012 on Cross-Border Power Sale and Purchase was recently signed by the president. The regulation stipulates that cross-border electricity sale and purchase are subject to the prevailing customs laws and regulations, and must adhere to certain requirements.

New regulations for electrical power supply businesses
Indonesia | 30 April 2012

The government has issued a new regulation to implement certain provisions of the Electricity Law. It covers a range of issues, including licensing and certification, land use for electrical power supply activities and the determination of sales prices, network leases and tariffs.

Perimeter establishment in forest utilisation permit areas
Indonesia | 25 July 2011

Under Article 71 of the Regulation on Forest Land Use and Development of Forest Management Planning and Forest Utilisation, forest utilisation permit holders must submit a perimeter establishment plan for their work area within one year of the permit issue date. The minister of forestry has issued a regulation on boundary arrangements of working areas for forest utilisation licences.

New guidelines for forest reclamation
Indonesia | 31 May 2011

The minister of forestry has issued new implementation regulations regarding forest land reclamation. Forest licence holders are required to prepare a five-year reclamation plan. Each plan must specify, among others things, schedule, budget, the reclamation activities and an annual reclamation plan map.

Tax incentive for geothermal exploration, oil and gas
Indonesia | 16 May 2011

The government has taken steps to address Indonesia's declining oil production by providing fiscal incentives to oil and gas operators. It will waive value-added tax on goods imported for the purposes of upstream oil and gas activities or geothermal exploration for the budgetary year 2011.

Decree on procedures for oil and gas supporting businesses
Indonesia | 21 February 2011

Indonesia's director general of oil and gas has issued a decree to implement the Regulation on Oil and Gas Supporting Business Activities. It regulates the procedure whereby the Directorate General issues registration certificates to entities or individuals in the oil and gas business, and the application procedure for additional business field classification.

Regulation clarifies supervision of mining licence holders
Indonesia | 04 October 2010

Together with the respective governors, regents and mayors, the minister of energy and mineral resources is tasked with fostering and supervising the activities of mining licensees. As a new regulation makes clear, the scope of the fostering and supervision obligation is broad, including technical and marketing aspects of mining operations, finance, environmental impact and operational safety.

Policy guidelines to boost oil and gas production
Indonesia | 06 April 2010

Indonesia's declining oil and gas production has resulted in the country becoming a net oil importer. The minister of energy and mineral resources recently issued a regulation that, among other things, requires contractors to expedite submission of proposals for the development of newly discovered reserve fields and to implement plans to develop or reactivate oil fields with good production potential.

Tech, Data, Telecoms & Media

IPTV regulation encourages growth of local technology providers
Indonesia | 14 January 2010

A regulation from the Ministry of Communications and Information has established a framework for the provision of Internet Protocol television services in response to greater media and communications convergence and the readiness of Indonesian technology providers to enter the sector. The regulation provides eligibility criteria for providers and sets out the licence application process.