Asian Legal Review

Indonesia Urges ASEAN to Seal Digital Trade Deal Amid Rising Protectionism

By Asian Legal Review Staff | May 20, 2026

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has urged Southeast Asian nations to fast-track the completion of the ASEAN Digital Economy Framework Agreement (DEFA), calling the landmark regional pact critical to sustaining growth amid global economic uncertainty, geopolitical tensions and rising protectionism.

Speaking before business leaders during the Indonesia-Philippines business forum held in Lapu-Lapu City on May 7, 2026, Hartarto stressed that ASEAN must move quickly to finalize the agreement during the Philippines’ leadership of the regional bloc, warning that prolonged negotiations could delay opportunities in one of the fastest-growing sectors of the economy. “The whole world is looking at DEFA,” Hartarto said, noting that negotiations have already gone through around 20 rounds since discussions began under Indonesia’s ASEAN chairmanship in 2023. “We don’t need perfection, but we need to move on.”

The proposed agreement aims to establish a common framework for digital trade, electronic commerce, digital payments, data governance and other areas of the digital economy across the 10-member ASEAN bloc. Analysts say the deal could help harmonize digital regulations across Southeast Asia, lower business costs and accelerate cross-border investments, particularly in fintech, e-commerce, cloud computing and digital infrastructure. Hartarto described DEFA as the region’s response to growing economic risks including energy price volatility, food security concerns and global trade tensions. “This is the economy of the younger generation. This is the economy that is not prone to tariff war,” he said.

The Indonesian minister also revealed that Jakarta had already resolved its issues related to the agreement and called on other ASEAN members to compromise to complete negotiations. “We can always evaluate implementation for every country,” he said, adding that no single nation should dictate how others implement digital policies. Beyond digital cooperation, Hartarto pushed for stronger collaboration between Indonesia and the Philippines in nickel processing, special economic zones, agriculture and fertilizer supply as both nations seek to strengthen regional supply chains.

Source: SunStar Publishing Inc., “Indonesia urges ASEAN to seal digital trade deal” (May 19, 2026).

Indonesia Urges ASEAN to Seal Digital Trade Deal Amid Rising Protectionism

By Asian Legal Review Staff | May 20, 2026

Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto has urged Southeast Asian nations to fast-track the completion of the ASEAN Digital Economy Framework Agreement (DEFA), calling the landmark regional pact critical to sustaining growth amid global economic uncertainty, geopolitical tensions and rising protectionism.

Speaking before business leaders during the Indonesia-Philippines business forum held in Lapu-Lapu City on May 7, 2026, Hartarto stressed that ASEAN must move quickly to finalize the agreement during the Philippines’ leadership of the regional bloc, warning that prolonged negotiations could delay opportunities in one of the fastest-growing sectors of the economy. “The whole world is looking at DEFA,” Hartarto said, noting that negotiations have already gone through around 20 rounds since discussions began under Indonesia’s ASEAN chairmanship in 2023. “We don’t need perfection, but we need to move on.”

The proposed agreement aims to establish a common framework for digital trade, electronic commerce, digital payments, data governance and other areas of the digital economy across the 10-member ASEAN bloc. Analysts say the deal could help harmonize digital regulations across Southeast Asia, lower business costs and accelerate cross-border investments, particularly in fintech, e-commerce, cloud computing and digital infrastructure. Hartarto described DEFA as the region’s response to growing economic risks including energy price volatility, food security concerns and global trade tensions. “This is the economy of the younger generation. This is the economy that is not prone to tariff war,” he said.

The Indonesian minister also revealed that Jakarta had already resolved its issues related to the agreement and called on other ASEAN members to compromise to complete negotiations. “We can always evaluate implementation for every country,” he said, adding that no single nation should dictate how others implement digital policies. Beyond digital cooperation, Hartarto pushed for stronger collaboration between Indonesia and the Philippines in nickel processing, special economic zones, agriculture and fertilizer supply as both nations seek to strengthen regional supply chains. He also highlighted opportunities for closer bilateral cooperation in digital infrastructure, particularly in Mindanao, where Indonesia is developing a fiber optic landing station in Manado.

Source: SunStar Publishing Inc., “Indonesia urges ASEAN to seal digital trade deal” (May 19, 2026).

Singapore’s Monetary Authority of Singapore (MAS) has revoked the payment services licence of Bsquared Technology Private Limited, marking a significant enforcement action in the city-state’s fintech regulatory landscape.

According to Fintech News Singapore, which published the report on May 20, 2026, the regulator cited “serious breaches” in its decision to strip the payments firm of its operating licence. The Revocation Notice, issued under the Payment Services Act (PSA), indicates that Bsquared Technology failed to meet mandatory compliance and operational standards required of licensed payment institutions in Singapore.

By revoking the licence, MAS has effectively halted Bsquared Technology’s ability to conduct any regulated payment activities in Singapore, including domestic and cross-border money transmission, issuance of digital payment tokens, and other payment services under the PSA framework. Entities operating without a valid payment services licence may face legal action, and customers of the firm should be alerted that their funds need to be recovered through the regulator’s enforcement process.

Regulatory enforcement actions like this signal MAS’s increasing vigilance in overseeing Singapore’s payments sector, which is one of the most active fintech ecosystems in ASEAN. The regulator has in recent years taken a firm but progressive stance on licensing and supervision, granting numerous payment institutions licences while simultaneously holding them to strict compliance standards. The revocation of Bsquared Technology’s licence underscores the stakes of regulatory non-compliance in Singapore’s tightly regulated financial centre.

This development is particularly noteworthy given Singapore’s role as the regional headquarters for numerous fintech firms and payment service providers operating across Southeast Asia. Industry observers will be watching closely to understand the specific compliance failures that prompted the regulator’s action, as it may set a precedent for how MAS oversees the payments sector going forward.

Source: Fintech News Singapore, May 20, 2026.

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India’s Adani Group Agrees to $352 Million Settlement Over Alleged Iran Sanctions Violations

By Asian Legal Review Staff | May 19, 2026

The Adani Group, India’s largest business conglomerate, has agreed to pay a $352 million settlement to the United States over alleged violations of US sanctions on Iran, the Straits Times reported on May 19, 2026. The settlement represents one of the largest cross-border regulatory penalties to involve an Indian corporate entity and underscores the growing reach of US secondary sanctions in South and Southeast Asian markets.

The announcement came days after the billionaire industrialist and his family agreed to pay a separate US$18 million settlement in a US civil court case linked to corruption allegations. The dual settlements represent a significant escalation in US regulatory scrutiny of Indian business groups and highlight how compliance risks for Asia-Pacific multinationals continue to intensify despite geopolitical sensitivities between Washington and New Delhi.

The case highlights the complex compliance challenges facing large Asian conglomerates that conduct business across multiple jurisdictions. As US sanctions enforcement has become increasingly extraterritorial in scope, companies operating in regions with significant Iranian trade ties — including Southeast Asia — face mounting pressure to ensure their supply chains and financial transactions do not inadvertently trigger secondary sanctions exposure. The settlement also arrives amid ongoing tensions between the US and India over New Delhi’s continued energy purchases from Iran, making the case particularly sensitive diplomatically.

For financial institutions and businesses operating in SEA and South Asia, the decision serves as a stark reminder that US sanctions compliance is no longer optional for cross-border commerce. Regional banks and payment processors, particularly those in Singapore, Hong Kong, and Southeast Asia that facilitate trade finance with the Middle East, will likely face increased due diligence requirements and internal compliance overhauls in the coming months.

Source: The Straits Times, “India’s Adani to pay $352m settlement to US over alleged Iran sanctions violations” (May 19, 2026).

One of Thailand’s richest men dismissed his cousin from the Singha beer business empire on Tuesday, the company said, after days of controversy over allegations the man had sexually abused his own brother.
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