28 Asian Legal Business | January-February 2025 Manufacturing and digital sectors are expected to see increased activity, particularly in e-commerce, fintech, and cloud computing. The mining and energy sectors, especially nickel production for EV batteries, are also poised for significant growth, while the textile industry may face headwinds from import competition. (ND) Japan In 2025, Japan’s legal market is bracing for new regulations reshaping corporate governance, technology adoption, and industry practices. Ryuichi Nozaki, partner at Atsumi & Sakai, highlights pivotal changes in disclosure rules for listed companies regarding changes in how corporations categorise their holdings of other companies’ shares from strategic purposes to pure investment purposes, as well as the identity of shareholders. “New regulations will require more transparency on identification of the ultimate investors (rather than investing behind the names of trust banks and nominee custodians) and investing through total return swaps, which is expected to improve shareholder dialogues for better corporate governance by requiring transparency on the investors’ side as well,” explains Nozaki. This shift aims to improve capital allocation and strengthen corporate governance, putting pressure on companies to dispose of non-profitable assets. In addition, “a bill of amendments to the Companies Acts is expected to be introduced to allow Japanese corporates to use their treasury shares as consideration for acquisition of foreign companies,” Nozaki adds, which could potentially revolutionise companies’ M&A strategies. Technology regulation is emerging as a crucial focus area. Masataka Ogasawara, representative attorney at ZeLo, emphasises the transformative impact of AI on legal services. “While the creation of guidelines for the use of generative AI and issues related to intellectual property rights have been challenged before, they are expected to become more prominent in 2025 due to recent penetration into daily life,” says Ogasawara. Nozaki, on the other hand, expects a measured approach to AI regulation, citing the amendments to the Patent Act to address patents for inventions made using AI. He notes that that the upcoming bill will grant government investigative powers over AI-related issues like deepfake fraud and biased content generation, though fall short of imposing strict sanctions. In the digital asset space, Ogasawara anticipates substantial changes. “Cryptocurrency tax framework reforms could transform Japan’s digital asset environ2025 Outlook Lastly, potential interest rate cuts, post-election government spending, and increased private sector investment are expected to boost economic momentum and corporate earnings. (ND) Indonesia Indonesia is poised for significant regulatory transformation in 2025, driven by its ambitious 2025-2029 National Medium-Term Development Plan (RPJMN) and a wave of new legislation across key sectors, particularly infrastructure, renewable energy and technology. “The government’s strategic focus is on optimising regional potential and driving economic growth through targeted legislative and regulatory initiatives,” says Ibrahim Sjarief Assegaf, managing partner at Indonesian law firm Assegaf Hamzah & Partners. A key item on the regulatory agenda is the long-anticipated Draft Bill on New and Renewable Energy (RUU EBET), introducing crucial provisions for domestic component requirements and power wheeling schemes. “These provisions aim to facilitate stakeholder participation and promote the development of a diverse renewable energy mix in Indonesia,” Assegaf notes. In the financial sector, derivative regulations from Law No. 4 of 2023 on Financial Sector Development and Strengthening (UU PPSK) are expected to reshape the regulatory framework. Parallel to this, the government is finalising critical data protection regulations, including the Government Regulation on Personal Data Protection (RPP PDP), which will introduce stringent compliance requirements for businesses handling personal data. “Once finalised, the RPP PDP will have significant implications for businesses handling personal data, requiring them to comply with stringent data protection standards,” Assegaf says. The government’s downstream processing (hilirisasi) initiative remains central to its economic strategy, Assegaf notes, adding that new regulations are expected to mandate and incentivise domestic processing across mining, agriculture, and forestry sectors. This push aligns with Indonesia’s broader goal of moving up the value chain in natural resource industries. The digital economy is set for continued regulatory attention, with new frameworks emerging for data protection, e-commerce, and digital infrastructure development. A notable development is the introduction of specific regulations for protecting children’s data in electronic systems, reflecting the government’s commitment to digital safety.
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