Indonesia Legal Alerts

 

Banking:

 

Bank Indonesia (“BI”) Regulation No. 17/6/PBI/2015, dated June 1, 2015, regarding the Amendment of Bank Indonesia Regulation No. 16/16/PBI/2014 regarding Foreign Currency Transactions against the Rupiah between Banks and Domestic Parties. This Regulation sets out that banks may carry out foreign currency transactions against Rupiah provided that the requirements in Article 2 of the Regulation are satisfied. It also regulates that the underlying transaction of goods and service trade and/or investment also covers income and expense estimates. This Regulation came into effect on the date of its enactment.

 

BI Regulation No. 17/10/PBI/2015, dated June 18, 2015, regarding Loan to Value Ratio and Financing to Value Ratio for the Credit or Financing of Motor Vehicles. This Regulation was issued to trigger the intermediary function of banks through the adjustment of macro-prudential policy by providing flexibility for the financing of property and motor vehicles. Pursuant to this Regulation, (i) Loan to Value Ratio (“LTV Ratio”) means the ratio between the credit value that may be given by banks for collateral value in the form of property during the provision of credit based on the final appraisal price, and (ii) Financing to Value Ratio (“FTV Ratio”) is the ratio between financing value that may be granted by banks for collateral value in the form of property when the financing is granted based on the final appraisal price. Banks must meet the LTV and FTV ratio limit as stipulated by BI. The provisions contemplated under this Regulation further elaborate the limits of conventional or sharia property credit based on the type of property (e.g., house, condominium, office building, shop-house) and credit/financing top-up by taking over credit/financing from another bank. This Regulation revokes BI Regulation No. 15/40/DKMP, dated September 24, 2013, regarding the Implementation of Risk Management for Banks that Provide Credit or Financing of Property and Motor Vehicles. This Regulation came into effect on the date of its stipulation.

 

BI Regulation No. 17/11/PBI/2015, dated June 26, 2015, as the amendment of BI Regulation No. 15/15/PBI/2013, dated December 24, 2013, regarding the Minimum Mandatory Clearing Account of Conventional Banks in Rupiah and Foreign Currencies. The stated aim of this Regulation is to support economic development through the adjustment of the Minimum Mandatory Clearing Account. It also clarifies provisions on the fulfillment of the Minimum Mandatory Clearing Account obligation for territories that have a non-mandatory holiday and provisions on the fulfillment of the Minimum Mandatory Clearing Account obligation for banks that conduct mergers and consolidations and for banks that are converted from a conventional bank to a sharia bank. Under this Regulation, the term Loan to Deposit Ratio (“LDR”) is amended to Loan to Funding Ratio (”LFR”). This Regulation also stipulates the amount and parameters for calculating the LFR Minimum Mandatory Clearing and that the LFR target limit for a bank may be increased to 94% if the bank fulfills the criteria as set out in this Regulation. Banks are also required to submit periodic reports to BI on issued commercial papers. This Regulation came into effect on the date of its stipulation, however, the amendment of the term LDR to LFR is effective as of August 3, 2015, and the calculation of clearing account services as stated in Article 17a of this Regulation shall be effective as of February 1, 2016.

 

BI Regulation No. 17/12/PBI/2015, dated June 25, 2015, as the amendment of BI Regulation No. 14/22/PBI/2012, dated December 21, 2012, regarding the Granting of Credit or Financing by Conventional Banks and Technical Assistance in the Framework of Micro-, Small- and Middle-Scale Business Development. This Regulation provides that conventional banks shall provide credit or financing facilities to micro-, small- and mid-size businesses in a minimum amount of 20% calculated from the ratio of credit or financing for micro-, small and mid-size businesses and the total credit or financing. This Regulation amends provisions on, among others: (i) the obligation to maintain the monthly credit ratio of micro-, small and mid-size businesses, and (ii) administrative sanctions for banks that fail to fulfill the required credit ratio. This Regulation also provides provisions on the (i) time limit for the submission of the Realization Report, (ii) the accomplishment of the credit ratio that may be deemed one of the factors to obtain flexibility for the target of the Loan to Funding Ratio or clearing account service reduction, (iii) the granting of incentives in the form of training for bank officials, and (iv) sanctions for any incompliance with the provisions under this Regulation. This Regulation came into effect on August 3, 2015.

 

BI Circular Letter No. 17/15/DPM, dated June 12, 2015, as the amendment of BI Circular Letter No. 16/14/DPM, dated September 17, 2014, regarding Foreign Currency Transactions against the Rupiah between Banks and Domestic Parties. The stated aim of this Circular Letter is to accelerate financial market improvement by increasing the liquidity and variety of instruments in the domestic foreign currency market. The provisions in this Circular Letter mainly concern the requirements to be met by banks for foreign currency transactions and the terms pertaining to the prohibition on the provision of credit for foreign currency derivative transactions against Rupiah. However, the provision of credit in trade and investment activities may be deemed as an underlying transaction for foreign currency derivative transactions against Rupiah in the framework of hedging. This Circular Letter came into effect on the date of its stipulation.

 

BI Circular Letter No. 17/16/DPM, dated June 12, 2015, as the amendment of BI Circular Letter No. 16/15/DPM, dated September 17, 2014, regarding Foreign Currency Transactions against the Rupiah between Banks and Foreign Parties. This Circular Letter provides similar amendments as those introduced in BI Circular Letter No. 17/15/DPM, dated June 12, 2015, as the amendment of BI Circular Letter No. 16/14/ DPM, dated September 17, 2014, regarding Foreign Currency Transactions against the Rupiah between Banks and Domestic Parties, as discussed above. This Circular Letter removes the provision that a derivative transaction must be completed within one week to provide equal treatment for the foreign parties during the sale and purchase of commercial papers in Indonesia. Further provisions on the documents for underlying transactions are also contemplated in this Circular Letter, which came into effect on the date of its stipulation.

 

BI Circular Letter No. 17/18/DKEM, dated June 30, 2015, as the amendment of BI Circular Letter No. 16/24/DKEM, dated September 30, 2014, regarding the Implementation of the Prudential Principle for the Management of Foreign Debt for Non- Bank Corporations. The stated aim of this Circular Letter is to harmonize the provisions of the previous circular letter to be in line with BI Regulation No. 17/3/PBI/2015, dated March 31, 2015, regarding the Obligation to Use Rupiah within the Territory of the Republic of Indonesia, and to accommodate the general business practices related to project financing and business ownership structure. Pursuant to this Circular Letter, the obligation to use Rupiah shall apply for any transaction that is conducted in the territory of the Republic of Indonesia. This Circular Letter came into effect on the date of its stipulation.

 

Head of Monetary Management Department of Bank Indonesia Circular Letter No. 17/7/DPM, dated April 14, 2015, regarding the Third Amendment of Bank Indonesia Circular Letter No. 10/16/DPM, dated March 31, 2008, regarding the Procedures for the Issuance of Bank Indonesia Sharia Certificates through Auction. This Circular Letter amends provisions under Section III regarding Bank Indonesia Sharia Certificate Benefits. It came into effect on the date of its issuance.

 
Energy and Natural Resources

 

Minister of Energy and Mineral Resources Regulation No. 15 of 2015, dated May 11, 2015, regarding the Management of Oil and Gas Working Areas for which the Cooperation Agreement will Terminate. This Regulation stipulates that the management of such oil and gas working areas as in the title of this Regulation shall be conducted through: (a) management by PT Pertamina (Persero), (b) the extension of the cooperation agreement by the contractor or (c) joint management between PT Pertamina (Persero) and the contractor. This Regulation provides details on the procedures for such management. It came into effect on the date of its enactment.

 

Minister of Energy and Mineral Resources Regulation No. 16 of 2015, dated May 25, 2015, regarding the Criteria and/or Requirements for Utilizing Income Tax Facilities for Investment in Certain Business Fields and/or Specific Areas of the Energy and Mineral Resources Sector. This Regulation sets forth that tax income facilities will be given to taxpayers in certain business fields and/or located in certain areas as provided in the attachments to this Regulation. In addition, certain criteria must be satisfied to obtain income tax facilities, namely: (i) having high investment value or for export; (ii) absorbing a large number of workers; or (iii) having high local content. This Regulation came into effect on the date of its enactment.

 

Minister of Energy and Mineral Resources Circular No. 01.E/30/DJB/2015, dated April 7, 2015, regarding the Amendment of the Status of Mining Business License (“IUP”) from Domestic Capital Investment to Foreign Capital Investment. This Circular concerns the delivery of IUP-related documents to the Minister of Energy and Mineral Resources by Governors and Regents/Mayors. It stipulates that Governors must deliver documents on IUP Exploration, IUP Operation Production, IUP Operation Production for transportation and trading, and IUP Operation Production for processing and/or refinery in respect to (i) capital foreign investment issued by Governors prior to the issuance of Government Regulation No. 77 of 2014 regarding the Third Amendment of Government Regulation No. 23 of 2010 regarding the Implementation of Mineral and Coal Mining Business Activity (“GR 77/2014”), and (ii) capital foreign investment issued by Regents/Mayors prior to the issuance of GR 77/2014, if the licensing documents have been delivered to the Governor pursuant to Article 404 of Law No. 23 of 2014 regarding Regional Governments, to the Minister of Energy and Mineral Resources through the Director General of Mineral and Coal to be renewed at the latest by October 14, 2015. And Regent/Mayors must deliver documents on IUP Exploration, IUP Operation Production, IUP Operation Production for transportation and trading or IUP Operation Production for processing and/or refinery with respect to foreign capital investment issued by Regents prior to the issuance of GR 77/2014, if such licensing documents have not been delivered to the Governor, to the Minister of Energy and Mineral Resources through the Director General of Mineral and Coal to be renewed at the latest by October 14, 2015.

 

Director General of Mineral and Coal Instruction No. 2.Ins/30/DJB/2015, dated April 29, 2015, regarding the Moratorium on the Granting of Operation Production Mining Business License Specifically for Cross-Province and/or Cross-Country Coal Transportation in the Framework of Foreign Investment. This Instruction extends the moratorium in the title for a period of 12 months. The moratorium shall also apply for new applications. This Instruction came into effect on May 16, 2015.

  
Finance

 

Coordinating Minister for Economic Affairs as Head of the Committee of Financing Policy for Small, Micro and Medium Business No. 4 of 2015, dated May 25, 2015, regarding Guidelines on the Enforcement of Loans for Micro Business. The guidelines as provided under this Regulation shall be the reference for ministries/ institutions, regional governments, banks and guarantor companies in the planning, enforcement, monitoring, evaluation and supervision of loans for micro-business programs. This Regulation revokes Coordinating Minister for Economic Affairs as Head of the Committee of Financing Policy for Small, Micro and Medium Business No. KEP- 14/D.I.M.EKON/02/2012 regarding Operational Standards and Procedures for the Implementation of Credit for People (Kredit Usaha Rakyat). This Regulation came into effect on the date of its enactment.

 

Minister of Finance Regulation No. 107/PMK.010/2015 dated, June 9, 2015, regarding the Fourth Amendment of Minister of Finance Regulation No. 154/ PMK.03/2010 regarding the Collection of Article 22 Income Tax in Connection with the Payment of the Delivery of Goods and Activities in the Import Sector or Business Activity in Other Sectors. This Regulation amends Minister of Finance Regulation No. 154/PMK.03/2010, namely: (i) Article 1 regarding tax collectors, (ii) Article 2 regarding tariffs and (iii) Article 3 regarding exemptions. This Regulation also provides that Article 22 Income Tax for the export of coal, metal mineral and non-metal mineral commodities shall be due and paid simultaneously when the export or customs declaration document is settled. This Regulation came into effect 60 days after its date of stipulation, i.e., August 8, 2015.

 

Minister of Finance Regulation No. 118/PMK.08/2015, dated June 25, 2015, regarding Sales of Government Bonds (Surat Utang Negara or “SUN”) in Rupiah and Foreign Currencies in the Domestic Primary Market through Private Placement. The matters governed under this Regulation include the terms and conditions for the purchase of SUN through private placement, the procedures to submit an offer to purchase SUN and the procedure to settle the sale of SUN through private placement. This Regulation repeals Minister of Finance Regulation No. 192/PMK.08/2013 regarding the Sales of SUN through Private Placement in the Domestic Primary Market. It came into effect on the date of its enactment.

 

Minister of Finance Regulation No. 121/PMK.03/2015, dated June 25, 2015, regarding the Third Amendment of Minister of Finance Regulation No. 75/PMK.02/2010 regarding Other Values as the Basis for Tax Imposition. This Regulation excludes the delivery of voice or image recording media from the definition of Other Value as the basis for tax imposition. This Regulation came into effect on July 1, 2015.

 

Minister of Finance Regulation No. 122/PMK.010/2015, dated June 29, 2015, regarding the Adjustment of the Amount of Non-Taxable Income (“PTKP”). The adjustment of PTKP is effective for the 2015 tax year. The PTKP amounts are: (a) Rp36,000,000 for individual taxpayers, (b) an additional Rp3,000,000 for married individual taxpayers and (c) an additional Rp3,000,000 for each family member and adopted child who becomes the full responsibility of the concerned individual taxpayer (maximum three persons per family). This Regulation came into effect on the date of its enactment.

 

Financial Services Authority (“OJK”) Regulation No. 8/POJK.04/2015, dated June 26, 2015, regarding the Website of Issuers or Public Companies. This Regulation provides that every issuer or public company shall own a website that contains its general information as contemplated under this Regulation. The information contained on the official website shall be publicly disclosed, actual and updated. The website of the issuer or public company shall include at least (i) general information on the issuer or public company, (ii) information for investors, (iii) information on the corporate administration and (iv) information on the corporate social responsibility conducted by the issuer or public company. This Regulation also elaborates on the details of said information. The content of the official website shall be in the Indonesian language and one foreign language (at least English). The issuer and public company shall comply with this Regulation within six months as of the effective date of this Regulation (i.e., December 26, 2015). This Regulation came into effect on the date of its enactment.

 

OJK Regulation No. 9/POJK.04/2015, dated June 26, 2015, regarding Guidelines on Repurchase Agreement Transactions for Financial Services Institutions. Pursuant to this Regulation, a Repurchase Agreement Transaction (“Repo Transaction”) is a sale or purchase agreement of stocks with a covenant to purchase or resell the stock within a stipulated time and for a stipulated price. Any Repo Transaction shall occur through a written agreement. The Repo Transaction agreement shall contain at least (i) the assignment of the ownership right over the stock, (ii) the obligation to adjust the stock value with the reasonable market value (mark-to-market), (iii) initial margin and/or haircut for the stock in the Repo Transaction, (iv) margin maintenance including the substitution of the stock margin, (v) rights and obligations of the parties regarding the ownership of the stock, (vi) event of default, (vii) event of default settlement, (viii) stipulation of Indonesian law as the governing law, (ix) the position of the financial services institution (either as the agent or the party), and (x) procedures for the confirmation of the Repo Transaction and/or any material amendment related to such Repo Transaction. Such Repo Transaction agreement shall implement the Indonesian Global Master Repurchase Agreement (“GMRA”) issued by the OJK or other parties recognized by the OJK. Any incompliance with the provisions of this Regulation may result in administrative sanctions as set out in this Regulation. This Regulation also provides that any ongoing and existing Repo Transaction agreement entered into prior to the issuance of this Regulation does not need to be adjusted to the Repo Transaction requirements in this Regulation. Repo Transactions conducted based on sharia principles also are not subject to this Regulation. This Regulation revokes Chairman of Capital Market and Financial Institution Supervisory Board (“Bapepam-LK”) Decision No. KEP-132/BL/2006, dated November 28, 2006 (including its attachment, namely, the Chairman of Bapepam-LK Regulation No. VIII.G.13). This Regulation comes into effect on January 1, 2016.

 

OJK Circular Letter No. 19/SEOJK.05/2015, dated June 30, 2015, regarding the Amount of Down Payment for Motor Vehicle Financing by Financing Institutions. This Circular Letter implements Article 17 paragraph (3) of OJK Regulation No. 29/ POJK.05/2014 dated November 19, 2014, regarding the Implementation of the Business of Finance Companies (“OJK Regulation No. 29”), specifically concerning the amendment of the amount of down payment for motor vehicles. The down payment amount varies based on the Non-Performing Financing Ratio (“NPF Ratio”) value of the Finance Company. If the NPF Ratio value of the financing company is equal to or less than 5%, the percentage of the down payment shall be at least (i) 15% of the vehicle selling price for any two- or three-wheeled vehicle, (ii) 15% of the vehicle selling price for any four-wheeled (or more) vehicles that are used for investment financing, and (iii) 20% of the vehicle selling price for any four-wheeled (or more) vehicle used for multi- purpose finance. If the NPF Ratio value of the financing company is higher than 5% the percentage of the down payment shall be at least (i) 20% of the selling price of the vehicle for any two- or three-wheeled vehicle, (ii) 20% of the vehicle selling price for any four-wheeled (or more) vehicles used for investment financing, and (iii) 25% of the vehicle selling price for four-wheeled (or more) vehicles used for multi-purpose financing. The calculation of the amount of down payment shall be made on the selling price of the vehicle after price discount and other reductions. Violation of the provisions in this Circular Letter regarding down payment amounts shall result in an initial notice of incompliance and administrative sanctions as contained in OJK Regulation No. 29. This Circular Letter came into effect on the date of its stipulation.

 
Immigration

 

OJK Circular Letter No. 20/SEOJK.05/2015, dated June 30, 2015, regarding the Amount of Down Payment for Motor Vehicle Financing by Sharia Financing. This Circular Letter implements Article 12 paragraph (3) of OJK Regulation No. 31/ POJK.05/2014 dated November 19, 2014, regarding the Implementation of the Sharia Financing Business (“OJK Regulation No. 31”). This Circular Letter elaborates on the percentage of the down payment based on the ratio of problematic productive assets and the receivable value of sale and purchase financing of the sharia financing company. Certain violations of the provisions of this Circular Letter shall result in an initial notice of incompliance and administrative sanctions as contained in OJK Regulation No. 31. This Circular Letter came into effect on the date of its stipulation.

 

OJK Circular Letter No. 21/SEOJK.05/2015, dated June 30, 2015, regarding the Stipulation of Premium Tariffs or Contributions for Asset Insurance and Motor Vehicle Insurance Business Activities. This Circular Letter implements Article 5 paragraph (5) of OJK Regulation No. 2/POJK.05/2015 dated March 31, 2015, regarding the Maintenance and Reporting of Insurance Risk Data and the Stipulation of Premium Tariffs and Contributions for Asset Insurance and Motor Vehicle Insurance Business Activities (“OJK Regulation No. 2”). Based on this Circular Letter, the premium tariff or contribution shall cover the real amount of premium or contribution, administration fees and other general fees, acquisition fees and profits. Details on the amount of premium tariff or contribution are included in the attachment of this Circular Letter, which came into effect on the date of its stipulation.

 

Presidential Regulation No. 69 of 2015, dated June 10, 2015, regarding Entry Visa Exemption. This Regulation exempts certain nationalities and nationals of certain administrative regions from the requirement to obtain an entry visa to stay in Indonesia for a certain period of time. The Regulation provides a list of countries and administrative regions whose citizens can enter Indonesia through (i) certain immigration checkpoints or (ii) all immigration checkpoints. This Regulation revokes Presidential Decree No. 18 of 2003 regarding Short-Term Visit Visa Exemptions and its amendment, and came into effect on the date of its enactment.

 

Minister of Law and Human Rights Regulation No. 12 of 2015, dated June 3, 2015, regarding the Seventh Amendment of Minister of Law and Human Rights Regulation No. M.HH-01.GR.01.06 of 2010 regarding On-Arrival Visit Visa. This Regulation adds the citizens of Seychelles as eligible for On-Arrival Visa. This Regulation came into effect on the date of its enactment.

 

Minister of National Development Planning/Head of National Planning Agency Decree No. KEP.82/M.PPM/HK/05/2015, dated May 27, 2015, regarding the Stipulation of the 2015 List of Planned Infrastructure Projects. This Decree stipulates the list of planned infrastructure projects that will be developed under the public-private partnership scheme. The projects ready to be offered include Cargo and Passenger Railways for Soekarno-Hatta International Airport – Halim, Light Rail Transit in Bandung, and Drinking Water Projects in West Semarang, Pondok Gede and Pekanbaru. This Decree came into effect on the date of its enactment.
 
Infrastructure
Land and Property

 

Minister of National Development Planning/Head of National Planning Agency Regulation No. 4 of 2015, dated June 4, 2015, regarding Procedures for the Implementation of Public and Private Partnership in the Procurement of Infrastructure. This Regulation is an implementing regulation for Presidential Regulation No. 39 of 2015 regarding Public and Private Partnership. Detailed procedures regarding the public and private partnership scheme are governed under this Regulation. This Regulation repeals Head of National Planning Agency Regulation No. 3 of 2012 and Head of National Planning Agency Regulation No. 6 of 2012 regarding Procedures for the Formulation of the List of Planned Infrastructure Projects. It came into effect on the date of its enactment.

 

Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency Regulation No. 5 of 2015, dated April 28, 2015, regarding Location Permit. The stated aim of this Regulation is to improve the existing regulatory framework on location permits. This Regulation provides guidelines for domestic and joint venture companies to obtain the location permit required to obtain certain land holdings for investment purposes. This Regulation sets out the object of the location permit, along with the limitations for each type of business stipulated therein and the licensing procedures. Under this Regulation, the location permit may only be regulated for investors whose investment plan has already been approved. This Regulation revokes Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency Regulation No. 2 of 1999 regarding the same. This Regulation came into effect on the date of its enactment.

 

Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency Regulation No. 6 of 2015, dated April 28, 2015, regarding the Amendment of the Head of National Land Agency Regulation No. 5 of 2012 regarding Technical Instructions for the Implementation of Land Procurement. This Regulation amends the provisions related to, among others, land procurement for institutions that receive specific assignment from the government and financing for the land procurement. This Regulation came into effect on the date of its enactment.

 

Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency Circular Letter No. 10/SE/VII/2015, dated July 7, 2015, regarding Licensing of High Conservation Value Forests. The stated aim of this Circular Letter is to protect high conservation value forest areas that constitute Other Utilization Areas (Areal Penggunaan Lain or “APL”) originated from forestry area relinquishments. Pursuant to this Regulation, a Governor or Regent/Mayor shall not grant a location permit for a high conservation value forest area that is not in a forestry area and constitutes APL. This Circular Letter came into effect on the date of its stipulation.

 

Government Regulation No. 44 of 2015, dated June 30, 2015, regarding the Implementation of Work Accident Security and Death Security Program. Work Accident Security and Death Security Program is part of the National Social Security Program under the auspices of the Manpower Social Security Organizing Body (Badan Penyelenggara Jaminan Sosial or “BPJS”). This Regulation governs the participation, registration, amount of premium, benefits and payment of benefits, and reporting obligations related to the Work Accident Security and Death Security Program. This Regulation came into effect on July 1, 2015.
 
Manpower  
Maritime Affairs and Fisheries

 

Government Regulation No. 45 of 2015, dated June 30, 2015, regarding the Implementation of Pension Security Program. Pension Security Program is part of the National Social Security Program under the auspices of the Manpower BPJS. This Regulation governs the participation, registration, amount of premium, benefits and payment of benefits, and reporting obligations related to the Pension Security Program. This Regulation came into effect on July 1, 2015.

 

Government Regulation No. 46 of 2015, dated June 30, 2015, regarding the Implementation of Old Age Security Program. Old Age Security Program is part of the National Social Security Program under the auspices of the Manpower BPJS. This Regulation governs the participation, registration, amount of premium, benefits and payment of benefits, and reporting obligations related to the Old Age Security Program. This Regulation came into effect on July 1, 2015.

 

Minister of Maritime Affairs and Fisheries Regulation No. 13/PERMEN-KP/2015, dated May 12, 2015, regarding Guidelines for the Issuance of Recommendation Letter for the Purchase of Specific Types of Fuel Oil for Wild Fisheries (Perikanan Tangkap). The stated aim of this Regulation is to ensure the accurate implementation of the distribution of specific types of fuel oil as governed under Presidential Regulation No. 191 of 2015 regarding the Provision, Distribution and Retail Price of Fuel Oil. Gas Oil, as specified in the Regulation as a specific type of fuel governed therein, shall be given to fishermen who use Indonesian fishery vessels with a size of 30 gross tonnage or less registered under the provincial/regency/municipal Local Apparatus Working Unit (Satuan Kerja Perangkat Daerah). The fisherman/vessel owner must first obtain a recommendation letter issued by the authorized authority. This Regulation sets out the administrative requirements and procedures to obtain the recommendation letter. It came into effect on the date of its enactment.

 

Minister of Maritime Affairs and Fisheries Regulation No. 21/PERMEN-KP/2015, dated June 26, 2015, regarding Partnership in the Management of Water Conservation Areas. Under this Regulation, the Ministry of Maritime Affairs and Fisheries or the provincial government may involve, among others, corporations in managing water conservation areas. This Regulation also sets out the guidelines to implement the partnership. It came into effect on the date of its enactment.

 

Minister of Maritime Affairs and Fisheries Decree No. 23/KEPMEN-KP/2015, dated April 15, 2015, regarding the Enforcement of Indonesian National Standards for 14 Non- Consumption Fishery Products. This Decree enforces Indonesian National Standards for 14 non-consumption fishery products as stipulated by the National Standardization Body. The enforcement of this Decree is for the purpose of the development of business actors in the fisheries industry. This Decree came into effect on the date of its stipulation.

 

Government Regulation No. 40 of 2015, dated June 23, 2015, regarding the Clean Water Provision Exempted from Value Added Tax. This Regulation exempts entrepreneurs who provide clean water from value added tax. Clean water under this Regulation includes non-drinkable clean water and drinkable clean water (excluding packaged or bottled waters). This Regulation came into effect on the date of its enactment.
 
Tax
Telecommunications

 

Joint Regulation of the Directorate General of Tax and Directorate General of Treasury No. PER-26/PJ/2015 and No. PER-15/PB/2015 TAHUN 2015, dated June 19, 2015, regarding Procedures for the Payment of Non-Oil and Gas Income Tax in US Dollar Currency. The matters governed under this Regulation include procedures for the payment of the relevant tax through the receiving bank/foreign currency receiving bank and payment through a State Clearing Account (Rekening Giro Kas Negara). This Regulation repeals the Joint Decree of the Directorate General of Budget and Directorate General of Tax No. KEP-60/A/1999 and KEP-306/PJ./1999 regarding the Procedure for the Payment of Income Tax in US Dollar Currency. It came into effect on the date of its enactment.

 

Directorate General of Tax Regulation No. PER-20/PJ/2015, dated May 20, 2015, regarding Procedures for the Imposition of Land and Building Tax in Other Sectors. The objects of Land and Building Tax in Other Sectors are (i) offshore waters that are utilized for fisheries, fish breeding, pipe networks, telecommunication cable networks, electricity cable networks and toll roads; and (ii) certain buildings in offshore waters. Offshore waters include Indonesia’s territorial seas, archipelagic waters, the Indonesian Exclusive Economic Zone and waters within Indonesia’s continental shelf. The calculation of the sale value of the Tax Object (“NJOP”) and the administrative procedures for the Land and Building Tax in Other Sectors are further elaborated in this Regulation. This Regulation repeals the provisions concerning the fisheries sector and tax objects for offshore waters under the Directorate General of Tax Decree No. KEP-16/PJ.6/1998 regarding the Imposition of Land and Building Tax. It came into effect on the date of its enactment.

 

Directorate General of Tax Regulation No. PER-23/PJ/2015, dated June 1, 2015, regarding Procedures for the Application, Notification, Granting, Cancellation and Re- Issuance of the License to Administer Bookkeeping in the English Language and US Dollar Currency. This Regulation sets forth the types of taxpayers permitted to do their bookkeeping in the English language and in US Dollars. Such taxpayers include those in the framework of foreign capital investment operating pursuant to the foreign capital investment laws and regulations and Permanent Business Entities pursuant to the Income Tax Law. This Regulation repeals Directorate General of Tax Regulation No. PER- 11/PJ/2010 regarding the same, as amended by Directorate General of Tax Regulation No. PER-10/PJ/2012. It came into effect on the date of its enactment.

 

Directorate General of Tax Regulation No. PER-24/PJ/2015, dated June 12, 2015, regarding the Amendment of Directorate General of Tax Regulation No. PER-19/PJ/2015 regarding the Procedures for the Collection of Article 22 Income Tax for Sales of Very Luxurious Goods. This Regulation amends Article 2 in which the sales price for certain very luxurious goods is the basic price (price in cash not subject to Value Added Tax and Sales Tax on Luxurious Goods). This Regulation came into effect on the date of its enactment.

 

Minister of Communications and Information Technology Regulation No. 24 of 2015, dated June 25, 2015, regarding the Implementation of National Standard of Work Competence in the Communication and Information Sector. The stated aim of this Regulation is to be a guideline for organizing the professional education and training, competency testing and occupational certification in the communication and information sector for Indonesian and expatriate workers. This Regulation comes into effect on January 1, 2016.

  
Trade

 

Minister of Communications and Information Technology Regulation No. 27 of 2015, dated July 8, 2015, regarding the Technical Requirements for Long-Term Evolution Standard Based Telecommunications Equipment and/or Devices. Under this Regulation, such equipment and/or devices made, assembled or imported to be traded and/or used in Indonesia shall comply with the technical requirements set out in this Regulation. Compliance with the technical requirements set out in this Regulation shall be assessed through testing. In addition to compliance with the technical requirements, such equipment and/or devices shall comply with the Domestic Component Level (Tingkat Komponen Dalam Negeri) requirement. This Regulation came into effect on the date of its enactment.

 

Minister of Trade Regulation No. 40/M-DAG/PER/6/2015, dated June 10, 2015, regarding the Second Amendment of Minister of Trade Regulation No. 16/M-DAG/ PER/4/2013 regarding Import Provisions on Horticultural Products. This Regulation amends provisions related to, among others, the types of import approval with regard to horticultural products, procedures to obtain import approval, and the suspension of the stipulation as a registered importer of horticultural products. This Regulation came into effect on the date of its enactment, except for Article 25a, which shall come into effect on July 1, 2015.

 

Minister of Trade Regulation No. 41/M-DAG/PER/6/2015, dated June 10, 2015, regarding the Third Amendment of Minister of Trade Regulation No. 46/M-DAG/ PER/8/2013 regarding the Import and Export of Animals and Animal Products. This Regulation amends provisions related to, among other matters, the definition and appointment of state-owned enterprises to import animals and animal products. This Regulation came into effect on the date of its enactment.

 

Minister of Trade Regulation No. 48/M-DAG/PER/7/2015, dated July 3, 2015, regarding General Provisions on Imports. The stated aim of this Regulation is to provide more transparent, effective, efficient and sustainable import regulations. Unlike the previous regulation, this Regulation does not include (i) a provision regarding control through a ministerial regulation for the importation of certain goods, and (ii) provisions that regulate that imported goods stored at bonded warehouses for distribution throughout various customs areas may be subject to import provisions. With respect to an import license, in addition to having an Importer Identification Number (“API”), importers must obtain import approval for goods that can be imported with limitation. This Regulation revokes Minister of Trade Regulation No. 54/M-DAG/PER/1/2009 regarding General Provisions on Imports and comes into effect on January 1, 2016.

 

Minister of Transportation Regulation No. PM 74 of 2015, dated April 16, 2015, regarding the Organization and Commercialization of Freight Forwarding Services. This Regulation governs the business of freight forwarding services by land, railway, sea and air. This Regulation also discusses the scope of activities of such freight forwarding services. The business license for freight forwarding services is issued by the governor of the province where the freight forwarding company is domiciled. With the issuance of this Regulation, Minister of Transportation Regulation No. KM 10 of 1988 regarding Freight Forwarding Services, as amended by Minister of Transportation Regulation No. 10 of 1989, is revoked. This Regulation came into effect on the date of its enactment.
 
Transportation

 

Minister of Transportation Regulation No. 96 of 2015, dated June 5, 2015, regarding Guidelines on the Implementation of Traffic Management and Engineering. This Regulation governs the planning, regulation, engineering, utilization and supervision of traffic. The methods of traffic management and engineering are set forth under this Regulation. This Regulation repeals Minister of Transportation Decree No. 14 of 2006 regarding Road Traffic Management and Engineering. It came into effect on the date of its enactment.

 

Minister of Transportation Regulation No. 97 of 2015, dated June 4, 2015, regarding Guidelines on the Implementation of Airplane Ownership and Possession. Holders of a commercial air transportation business license may own and possess a certain number of serviceable and airworthy airplanes. Scheduled commercial airlines shall own and possess, respectively, at least five airplanes supporting business sustainability according to their serviced routes. Non-scheduled airlines and cargo airlines shall own at least one airplane and possess at least two airplanes that support business sustainability according to their serviced operational areas. The methods for the procurement and possession of airplanes are further governed under this Regulation. Several provisions of airplane sale and purchase agreements shall also observe the relevant provisions of this Regulation. Air transportation business entities shall comply with the minimum number of owned and possessed airplanes at the latest on June 30, 2015. Failure to comply shall result in a one-month suspension of business license. If said business entity does not comply during this one-month suspension of its business license, the license will be declared to be no longer in effect. This Regulation came into effect on the date of its enactment.

 

Minister of Transportation Regulation No. 98 of 2015, dated June 18, 2015, regarding Civil Aviation Safety Regulations Part 21 regarding Certification Procedures for Products and Parts. This Regulation repeals Minister of Transportation Decree No. 13 of 2008 and essentially stipulates the application of Civil Aviation Safety Regulations Part 21 regarding Certification Procedures for Products and Parts. This Regulation came into effect on the date of its enactment.

 

Minister of Transportation Regulation No. 103 of 2015, dated June 23, 2015, regarding the Amendment of Minister of Transportation Regulation No. PM 17 of 2014 regarding the Formulation and Mechanism for the Stipulation of the Cost of Aviation Navigation Services. This Regulation amends Article 9 and Article 19 of PM 17 of 2014. The primary cost per service unit of the aviation navigation service is calculated based on the total projection of component costs added by 10% of the total cost projection divided by projected serviced airplanes. Service costs for domestic and international flights are stipulated in Rupiah while overflight is stipulated in US Dollars. This Regulation came into effect on the date of its enactment.

 

Minister of Transportation Regulation No. 105 of 2015, dated July 15, 2015, regarding Guidelines for the Implementation of the Types and Tariffs of Non-Tax State Revenue in the Directorate General of Railways. This Regulation repeals Minister of Transportation Regulation No. 72 of 2015 regarding the same. The matters governed under this Regulation include the types of Non-Tax State Revenue (“PNBP”) in the Directorate General of Railways, the implementation of PNBP, PNBP tariffs and the procedures for collecting, paying and reporting PNBP. This Regulation came into effect on June 30, 2015.