REGULATORY

COMPLIANCE
SYSTEM
PRODUCT BROCHURE
REGULATORY COMPLIANCE SYSTEM

Hukumonline
at a Glance

Hukumonline has two decades of experience in providing

Indonesian legal documents and is trusted by companies, law
firms, the government and various other types of business
entities. Our clients and partners are drawn from a wide range of
professional and industrial sectors and we thrive on providing
them with useful content, which includes bilingual legal analyses
and updated regulations.

HUKUMONLINE.COM
2000 - 2020

+20 +900 +300.000

Years of Clients Members
Experience
REGULATORY COMPLIANCE SYSTEM

Compliance:
Perspectives

As an emerging Southeast Asian nation which is enjoying a rapid pace of

development and business growth, the government is working hard to improve,
reform and simplify the country’s various regulations and legal frameworks. As
a result, new laws and regulations at both the national and regional levels are
being issued every month. The government is also regularly revoking and
amending many of the country’s regulations and addressing groups of related
regulations under single frameworks.

Unfortunately, Indonesia is currently facing a crisis of regulatory overlap

across its different levels of government, from national to sub-national
administration. This overlap makes the establishment and conducting of
business difficult for both foreign and Indonesian businesses alike.1 Between
2000 and 2015, Indonesia’s central government issued some 12,471 regulations,
consisting of:

Regulation of The Minister 8311

Instruction of President 247

Decree of President 1550

Regulation of President 2258

Regulation of The Governments 2446

Regulation of The Government

49
In Lieu of Law
Laws 916

During the same period, the regional level was dominated by the issuance
of 25,575 regional/municipal government regulations. These were followed by
some 3,177 provincial-level regulations.2

Regulatory Reform, as accessed through:

1

https://www.oecd.org/policy-briefs/indonesia-dismantling-barriers-to-competition-and-innovation.pdf.
2
Bappenas, Strategi Reformasi Regulasi Nasional, as accessed through:
https://www.bappenas.go.id/files/9814/4419/3082/Buku_Reformasi_Regulasi.pdf
REGULATORY COMPLIANCE SYSTEM

Challenges on
Managing Compliance

Laws and Regulations are

Regularly Revoked and Amended.

Take hours to manually update

documents to accommodate single
regulatory change

Monitor many regulations that have

potential to affect your business,
updated obligations and sanctions.

Minimize risks, such as operational,

legal, reputation, strategic and
compliance risk.
REGULATORY COMPLIANCE SYSTEM

Our Solutions
Find out how our features can help you
managing your compliance.

Intuitive Dashboard

We provide an intuitive dashboard that is divided up into

different levels for compliance teams. As the officer
responsible, you can assess and monitor your company’s
compliance. Moreover, at the top level, you can easily generate
compliance reports in a single click.

Notifications

No longer will you be burdened with outstanding pending tasks

or with obligations that you originally missed. Instead, you will
be able to remain alert via notifications which are sent directly
to your e-mail account. Your assigned tasks, user activities and
the validity period of documents are now under your direct
supervision, enabling you will keep abreast of updated
regulations that affect your business.

Obligation Checklist

We thrive on helping you to manage your compliance. Through

our Obligation Checklist, you can clearly view the relevant
sanctions and obligations. Moreover, you can also locate other
regulations that might be related to the regulations and laws
that you are currently interested in. This will empower you to
set-up your compliance priorities and evaluate them on a
regular basis.
REGULATORY COMPLIANCE SYSTEM

Compliance Monitor

You can easily monitor your obligations and compliance status

and track your compliance in a single click.

Document Management System

Easily save and manage documents that relate to your

obligations in one integrated location.

Advanced Search

Our platform features an Advanced Search function that will

allow you to filter all of the various properties and keywords
that relate to your legal obligations. Our Advanced Search
enables you to search for documents by category, tagging,
metadata and body text, meaning that documents are ready for
you to open at the click of a mouse.
REGULATORY COMPLIANCE SYSTEM

Case Studies
Compliance can be a complicated and inflexible area to manage. To
comply with the regulations, you must ensure that all of the regulations that you
refer to are both up to date and accurate. Moreover, you also have to ensure that
you are in compliance with all of the many laws and regulations that relate to
your core business.

If you’re working in a coal-mining company, then you will have to comply

with lot of provisions that stated on diagram. Based on our research, these
obligations encompass five distinct areas. Some of these obligations relate to
various documents, such as licenses, permits, approvals, etc. while others
concern obligations that are required to be completed within a certain period,
e.g. reports or prohibitions on various activities.

COAL-MINING
COMPANY

a. Regulations of the
Minister of Energy and
Mineral Resources. d. Regulations of the Minister
of Finance and Regulations
Reclamation and post-mining of Bank Indonesia
activities
Taxation and BMN
Share divestments
Foreign-exchange
The prices of various mining
export proceeds
commodities
deriving from exports
of natural resources.
Policies on preferential
treatments for domestic mineral
and/or coal needs
e. Regulations of the
Good mining practice principles Minister of
Transportation

b. Regulations related Goods terminals, ports

to the Environment facilities and so on.
and Forestry laws

c. Regulations of the
Minister of Trade

Exports

Imports

Moreover, in addition to the various types of laws and regulations on

diagram, you will also have to remain aware of various regulatory frameworks
that do not directly relate to your core business, such as financial reporting and
competition law.
REGULATORY COMPLIANCE SYSTEM

Financial Reporting

The drawing up of financial reports is one of the requirements

for the establishment of businesses within Indonesia. Moreover,
business entities encompass the following forms:

1. Limited liability companies that fulfill one of the following criteria:

a. Are publicly-traded companies;
b. Are operating within business sectors which relate
to the mobilization of the public funds;
c. Issue debt acknowledgment instruments;
d. Own assets or wealth amounting to a minimum of
IDR 25 billion; or
e. Are debtors whose annual financial reports are
required by banks to be audited.

2. Foreign companies that are domiciled and operate their businesses

within the territory of the Republic of Indonesia in accordance with
its laws and regulations, including branch offices, sub-branch
offices and subsidiaries, as well as agents and representatives of
companies that have the authority to enter into agreements; or

3. Limited liability companies (PERSERO), public corporations

(PERUM) and regional companies.

The following business entities are obliged to submit Audited

Annual Financial Statements (Laporan Keuangan Tahunan
Perusahaan – [“LKTP”] to the Minister of Trade via the
Director-General. This policy is based on Regulation of the Minister of
Trade No. 25 of 2020 on Annual Financial Reports of Companies and
has been in force since 19 March 2020. Any companies that fail to
submit LKTP will have administrative sanctions imposed upon them
that may take the form of reprimands, revocations of business
licenses and/or operational/commercial licenses.
REGULATORY COMPLIANCE SYSTEM

Competition Law:
Post-Merger Notification

Based on research conducted by the Commission for

the Supervision of Business Competition (Komisi Pengawas
Persaingan Usaha – “KPPU”), many companies operating
within Indonesia are contributing to a climate of unfair
business competition. Said companies are thus alleged to be
in violation of Law No.5 of 1999 on the Prohibition of
Monopolistic Practices and Unfair Business Competition,
primarily in relation to Article 22, which forbids conspiracies
and cartels, and Article 29 which addresses the system that
requires business entities to provide notifications in the wake
of mergers or acquisitions becoming legally effective
(post-merger notifications). Any violations of these articles
may be subject to both administrative and criminal sanctions
in the form of fines.

The case studies (post-merger notifications and

financial reporting) are likely to address regulations and
policies that lie outside your core business. However, you will
still be required to ensure that your company is in compliance
with said frameworks, otherwise, you may find sanctions
being imposed upon you that may ultimately affect your
business.

Through Regulatory Compliance System, you don’t

have to keep your eyes peeled in order to ensure you are in
compliance with these many new laws and regulations. We
will help you to manage your compliance matters.
REGULATORY COMPLIANCE SYSTEM

We thrive on taking you

beyond compliance
We know your business and we know the challenges. Let
us help you with our comprehensive approach.
To request a demo, please contact us at:
demo@hukumonline.com where our team will be on hand
in order to assist you.