Mr Theodoor Bakker

Theodoor Bakker

Updates

Banking

Regulation on mandatory use of rupiah and prohibition on dual price denomination
Indonesia | 09 October 2015

Bank Indonesia (the Indonesian central bank) has issued a regulation and accompanying circular letter governing the mandatory use of rupiah for all cash and non-cash transactions. In prescribing the mandatory use of rupiah – with certain exemptions and special considerations – the regulation and circular letter apply the territoriality principle that underlies many of Bank Indonesia's other regulations.

Currency Law uncertainty over foreign currency payments
Indonesia | 12 August 2011

The new Currency Law is likely to have a major impact on Indonesia's payment systems and in the fields of trade and finance due to its requirements regarding the use of rupiah for payments. Its controversial prohibition of foreign currency for domestic payments appears to catch Indonesian subsidiaries and branches of foreign companies, including foreign-owned companies and bank branches.

Capital Markets

OJK issues new regulation regarding public companies' shareholding reporting obligations
Indonesia | 30 May 2017

The Financial Services Authority (OJK) recently amended public companies' obligation to report on their shareholding by way of OJK Regulation 11/POJK.04/2017 regarding Reporting on Public Company Ownership or on Every Change in Share Ownership. The regulation aims to bring public companies' reporting obligations in line with international standards.

Competition & Antitrust

Court System Fails to Enforce Regulator's Decisions
Indonesia | 03 May 2007

The Business Competition Supervisory Commission has been increasingly active in rendering decisions in response to complaints under the Anti-monopoly Law. However, the enforcement of rulings against companies remains problematic, as demonstrated by the unsuccessful attempts to enforce convictions against retailer PT Carrefour Indonesia and state telecommunications firm PT Telekomunikasi Indonesia.

Commission Fines Yamaha for Discriminatory Practices
Indonesia | 15 February 2007

The Business Competition Supervisory Commission has found PT Suracojaya Abadi Motor, the main dealer in Yamaha motorcycles in South Sulawesi, to have conducted discriminatory practices which breached the Anti-monopoly and Unfair Business Competition Law.

Commission Split on Direct Appointment Case
Indonesia | 02 November 2006

The Business Competition Supervisory Commission recently found against both the distribution unit of the state electricity company and the company which it directly appointed to a project without following a tender process. However, the commission's majority and dissenting opinions are both open to criticism.

Commission Investigates Pipeline Tender Process
Indonesia | 17 August 2006

The Business Competition Supervisory Commission recently found that PT Perusahaan Gas Negara, the state-owned gas company, had discriminated against applicants in the tender process for the construction of a gas pipeline. The commission has been commended for looking beyond the formalities of the tender and observing the actual processes involved in it.

Competition Regulator Investigates Tender Rigging
Indonesia | 15 June 2006

The Business Competition Supervisory Commission recently cleared Berlian Jasa Terminal Indonesia of allegations of tender rigging in the procurement of services for operating harbour cranes and gantries in the port of Surabaya. The commission made clear the grounds for its findings, but certain aspects of its conclusions are surprising.

Competition Commission Initiates Price-Fixing Investigation
Indonesia | 20 April 2006

The Business Competition Supervisory Commission has found Indonesia's leading cement producer guilty of price fixing and distributor restriction practices which breach the Anti-monopoly and Unfair Business Competition Law. The case differed from most such investigations in that no complaint was filed by the company's business rivals; the commission conducted the investigation on its own initiative.

Corporate Tax

New rules combat double tax treaty abuse
Indonesia | 15 January 2010

The issue of double tax treaties continues to keep Indonesia in the international spotlight. Two recent circular letters from the Directorate General of Taxation amend the rules on the implementation of double tax treaty agreements and introduce provisions on anti-avoidance in order to combat treaty shopping.

Insolvency & Restructuring

Cross-border corporate rescue procedure for groups of companies
Indonesia | 04 June 2010

Indonesia is home to a significant number of local subsidiaries of foreign conglomerates. As the financial crisis has hit these conglomerates in their jurisdictions of establishment, companies should be aware of how a foreign insolvency could affect Indonesian companies and how Indonesian assets of the corporate group could be included in a global restructuring.

New Bankruptcy Law Comes into Force
Indonesia | 12 August 2005

Indonesia's new bankruptcy legislation came into force in October 2004. The previous bankruptcy regime was based in part on the Bankruptcy Ordinance 1906, which was drafted in Dutch and had no official Indonesian translation. The latest law is a new piece of legislation, written in Indonesian, that replaces the previous laws in their entirety.