Regulation of the Financial Services Authority No. 37 of 2024 on the Amendment to Regulation of the Financial Services Authority No. 17/POJK.05/2017 on Procedures for the Imposition of Administrative Sanctions Within the Insurance Sector and the Blocking of Insurance Company, Sharia Insurance Company, Reinsurance Company and Sharia Reinsurance Company Assets ("Amendment") introduces clear classifications of violations, specifically Administrative Violations and Substantive Violations, with corresponding administrative fines and the possibility of the simultaneous imposition of sanctions. The Amendment also allows for immediate restrictions on business activities in response to substantive violations, even without the issuance of any prior warnings, while licenses may be revoked in response to serious violations. The Amendment also introduces new sanctions, including the downgrading of company health ratings, the banning of specific insurance products and prohibitions on certain individuals occupying key positions within the insurance sector. The Amendment also sets out clearer procedures for the imposition of sanctions, including written warnings, fines and public announcements, with penalties set to be imposed within 30 days of any violations.

Legal and/or non-legal entities (collectively referred to as "Corporations") are now required to update their beneficial ownership information on an annual basis, as well as maintain relevant documents and complete related questionnaires as part of the newly updated Know-Your-Beneficial-Owner ("KYBO") measures. While compliance with the required beneficial ownership information must still be confirmed through the initial submission of questionaries, the Minister of Law may also summon relevant Corporations in order to provide clarifications prior to the issuance of recommendations on their KYBO compliance.

While maintaining the core obligations that apply to conventional and sharia commercial banks, as well as conventional and sharia rural banks (collectively referred to as "Banks") as regards ensuring the confidentiality of all information that relates to their depositors and their deposits, this new framework has now expanded the list of confidential information to include information relating to Bank customers who deposit funds ("Investments") in sharia-based Banks ("Investors"). Moreover, this framework also extends this confidentiality to parties that are affiliated with Banks ("Affiliated Parties").

From 1 March 2025, Regulation of the Minister of Finance ("Minister") No. 114 of 2024 on Customs Audits and Excise Audits ("Regulation 114/2024") will replace Regulation of the Minister No. 200/PMK.04/2011, as amended by Regulation of the Minister No. 200/PMK.04/2011 (collectively referred to as "Regulation 200/2011"). While maintaining the classification of audits into General, Special and Investigative categories, the new framework has now revised the General Audit period to a length of 21 months prior to the issuance of a task letter, with extensions of up to 10 years possible.

Within the context of Placements of Domestic Workers (Penempatan Tenaga Kerja Dalam Negeri/PTKDN), aside from Special Work Exchanges (Bursa Kerja Khusus/BKK) and the government, this new framework has further clarified the various types of entities that can be classified as Private Employment Placement Agencies (Lembaga Penempatan Tenaga Kerja Swasta/LPTKS), which now include the following: 1) Private Employment Placement Companies (Perusahaan Penempatan Tenaga Kerja Swasta/PPTKS); 2) Domestic Worker Placement Companies (Perusahaan Penempatan Pekerja Rumah Tangga/P3RT); and 3) Job portals.

Economic operators ("Operators") that wish to be recognized as Authorized Economic Operators ("AEO") must now meet certain general requirements, including a clean criminal record in terms of customs and taxation-related matters and audited financial reports that cover the previous two years. In order to secure this recognition, Operators should submit their applications through the online portal of the Directorate-General of Customs and Excise. Moreover, prior to said submission, Operators may participate in a coaching clinic in order to gain a proper understanding, overview and technical guidance concerning the AEO application process.

The Indonesian Government and House of Representatives (Dewan Perwakilan Rakyat/DPR) are currently preparing a new Draft Bill ("Draft Bill") that is set to introduce a Third Amendment to Law No. 19 of 2003 on State-Owned Enterprises (Badan Usaha Milik Negara "BUMN"). The 11 adjustments that will be made to the existing framework of Law 19/2003 include: 1) Redefinition of BUMN and BUMN subsidiaries ("Subsidiaries"); 2) Introduction of new entities (i.e. the Investment Management Agency of Daya Anagata Nusantara and BUMN Holdings; and 3) New conditions which may invoke the Business Judgement Rule (BJR) doctrine for members of the boards of directors or boards of commissioners of BUMN.

The Financial Services Authority (Otoritas Jasa Keuangan "OJK") has now officially assumed responsibility for the regulation and supervision of financial derivatives through the enactment of Regulation No. 1 of 2025 on Financial Derivatives with Underlying Assets in the Form of Securities ("Regulation 1/2025"). This move marks a significant shift away from the Commodity Futures Trading Supervisory Agency (Badan Pengawas Perdagangan Berjangka Komoditi "Bappebti"), which was previously responsible for this area. Ushering in a two-year transition period for relevant parties to bring their operations into line with the so-called same activity, same risk, same regulation principle, participants in the derivatives market must seek OJK approvals prior to May 2025 and may be subject to the imposition of penalties for any failure to meet relevant deadlines or if they engage in any unauthorized contracts.

Mutual funds are now permitted to provide and/or receive loans to/from other financial entities, as well as invest in the shares of other mutual funds (i.e. mutual funds that take the form of limited-liability companies and/or collective investment contracts). All such activities must comply with the applicable requirements and provisions, while any acts of non-compliance will be subject to the imposition of various administrative sanctions.

As Indonesia steps boldly into 2025, the marine sector is emerging as a critical battleground in the fight against climate change with the introduction of Regulation No. 1 of 2025 on Procedures for the Organization of Carbon Economic Value Within the Maritime Sector. This groundbreaking new framework charts a clear course for the implementation of Carbon Economic Value (Nilai Ekonomi Karbon/NEK) through various innovative mechanisms relating to carbon trading and performance-based payments.