OUR PRACTICE AREAS
The Financial Services Authority Regulation No. 1 of 2026 on the Utilization of Foreign Workers by Banks (“OJK Reg 1/2026”) introduces a more restrictive and structured framework for the employment of foreign workers (“TKA”) in the Indonesian banking sector, emphasizing tighter eligibility criteria, clearer role limitations, and stronger regulatory oversight. The regulation requires banks to integrate TKA utilization into their business plans, obtain prior OJK approval for key roles, and implement mandatory knowledge transfer programs to support domestic workforce development, while also imposing a maximum employment period of five years and enhanced reporting obligations to ensure ongoing supervision.
This update examines the contractual obligations embedded in international film festival grant agreements, including premiere obligations, rights encumbrances, and clawback provisions, and considers their impact on financing, distribution, and investor waterfalls. It highlights the importance of reviewing grant agreements carefully to anticipate potential commercial and legal implications.
While trusts are not formally recognized under Indonesian law, their core objectives can still be achieved through carefully structured domestic and offshore arrangements. This update outlines practical approaches for Indonesian HNWIs to manage wealth, ensure controlled distribution, and align succession planning with applicable inheritance laws.
Minister of Forestry Regulation No. 6 of 2026 operationalizes Indonesia’s carbon governance framework under Presidential Regulation No. 110 of 2025 by establishing detailed procedures for forestry carbon project development, certification, trading, and registry compliance. The regulation clarifies eligible participants and project areas, embeds mandatory environmental and social safeguards, and reinforces jurisdictional and nesting requirements, including controls over corresponding adjustments for international transfers. While it strengthens regulatory certainty, the Ministry’s discretionary authority and the rollout of key implementing systems will be critical to market confidence and execution.
As ESG and climate change continue to reshape the global business landscape, navigating Indonesia’s evolving regulatory framework—from sustainable investment guidelines to carbon capture storage and climate disclosure—has become a top priority for forward-thinking organizations. Our team provides a comprehensive analysis of the local legal requirements, liability risks, and best practices to help businesses successfully integrate ESG principles into their operations.