22 November, 2015
Agriculture
Minister of Agriculture Regulation No. 39/Permentan/SR.330/7/2015, dated July 14, 2015, regarding Pesticide Registration. The stated aim of this Regulation is to provide legal certainty in the administration of pesticide registration and licensing. The scope of this Regulation includes provisions related to the use, classification, permits, registration and labeling of pesticides, and the obligations of the parties involved in the process. This Regulation revokes Minister of Agriculture Regulation No. 24/Permentan/SR.140/4/2011 and comes into effect six months after the date of its enactment.
Banking
Bank Indonesia (“BI”) Regulation No. 17/13/PBI/2015, dated August 25, 2015, as the second amendment of BI Regulation No. 16/16/PBI/2014, dated September 17, 2014, regarding Foreign Exchange Transaction against Rupiah between Banks and Domestic Parties. This Regulation was issued in response to developments in the domestic foreign currency market and to help balance the supply and demand of foreign currency. The amendments under this Regulation mainly concern (i) the threshold tightening for spot transactions and (ii) new effective date for the imposition of certain sanctions. The threshold for spot transactions prior to the amendment was USD 100,000 and that is now USD 25,000 or its equivalent per month per customer. The threshold for derivative transactions remains the same. The new effective date for the imposition of certain sanctions is October 1, 2015. This Regulation came into effect on the date of its enactment.
BI Regulation No. 17/14/PBI/2015, dated August 25, 2015, as the second amendment of BI Regulation No. 16/17/PBI/2014, dated September 17, 2014, regarding Foreign Exchange Transaction against Rupiah between Banks and Foreign Parties. This Regulation contains provisions similar to those in the above BI Regulation No. 17/13/PBI/2015 for Domestic Parties. The threshold for spot transactions is also amended, from USD 100,000 to USD 25,000 or its equivalent per month per customer. There is no change to the threshold for derivative transactions. And the new effective date for the imposition of certain sanctions is October 1, 2015. This Regulation came into effect on the date of its enactment.
BI Circular Letter No. 17/20/DPM, dated August 28, 2015, as the second amendment of BI Circular Letter No. 16/14/DPM, dated September 17, 2014, regarding Foreign Exchange Transaction against Rupiah between Banks and Domestic Parties. This Circular Letter is an implementing regulation for BI Regulation No. 17/13/ PBI/2015, dated August 25, 2015, as the second amendment of BI Regulation No. 16/16/PBI/2014, dated September 17, 2014, regarding Foreign Exchange Transaction against Rupiah between Banks and Domestic Parties. This Circular Letter elaborates on the determination of foreign exchange transactions against rupiah with the new threshold and calculates the penalty for any violation of BI Regulation 16/16/PBI/2014 (as amended) as of the new effective date for the imposition of sanctions. This Circular Letter came into effect on the date it was stipulated.
BI Circular Letter No. 17/21/DPM, dated August 28, 2015, as the second amendment of BI Circular Letter No. 16/15/DPM, dated September 17, 2014, regarding Foreign Exchange Transaction against Rupiah between Banks and Foreign Parties. This Circular Letter elaborates on the provisions in BI Regulation No. 17/14/ PBI/2015, dated August 25, 2015, as the second amendment of BI Regulation No. 16/17/PBI/2014, dated September 17, 2014, regarding Foreign Exchange Transaction against Rupiah between Banks and Foreign Parties. It provides an explanation on the determination of a foreign exchange transaction against rupiah with the new threshold and calculates the penalty for any violation of BI Regulation No. 16/17/PBI/2014 (as amended) as of the new effective date for the imposition of sanctions. This Circular Letter came into effect on the date it was stipulated.
Finance
Minister of Finance Regulation No. 165/PMK.010/2015, dated September 1, 2015,
regarding the Imposition of Import Duty as a Safeguard Measure on the Importation of Coated Paper and Paperboard Products. As stipulated in the consideration of this Regulation, domestic industry has experienced severe losses due to increased imports of coated paper and paperboard products, hence the application of a safeguard measure is deemed necessary. The safeguard measure takes the form of an import duty on the import of coated paper and paperboard products (with details as prescribed in this Regulation) from all countries (except the countries listed in the attachment of this Regulation). This Regulation is applicable for three years after its enactment date and the imposed rate of import duty shall be decreased every year (i.e., 9% the first year, 7% the second year and 5% the third year). This Regulation came into effect seven days after its enactment, i.e. on September 8, 2015.
Minister of Finance Regulation No. 167/PMK.04/2015, dated September 4, 2015,
regarding the Suspension of Import Duty Payment for the Purpose of Releasing Imported Goods to Be Used with Guarantee. This is an implementing regulation for Article 10B paragraph (5) and Article 37 paragraph (3) of Law No. 10 of 1995 regarding Customs as amended by Law No. 17 of 2006. It repeals Minister of Finance Regulation No. 160/PMK.04/2007. This Regulation sets out, inter alia, the suspension of payment of (i) import duty, (ii) import duty and Import Framework Tax (”PDRI”) and (iii) import duty, excise and PDRI (hereinafter referred to as the “Suspension”) for imported goods that will be used in a Customs Area (Kawasan Pabean), Temporary Stockpiling Area (Tempat Penimbunan Sementara or “TPS”) or other locations that are similarly treated as TPS during the period in which the importer awaits the decision on the waiver or reduction of import duty. The procedure to obtain the Suspension is set out in this Regulation. Upon obtaining the Suspension, the importer is allowed to release the imported goods after submitting an Import Custom Notification (Pemberitahuan Pabean Impor) and providing a guarantee (in the amount of the import duty, excise and/or PDRI for which suspensions are being sought) to the custom office. This Regulation comes into effect 60 days after its enactment.
Minister of Finance Regulation No. 169/PMK.010/2015, dated September 9, 2015,
regarding the Determination of a Company’s Debt and Equity Ratio for the Purpose of Income Tax Calculation. This is an implementing regulation for Article 18(1) of Law No. 7 of 1983 regarding Income Tax as lastly amended by Law No. 36 of 2008. The prescribed ratio between debt (as defined under this Regulation) and equity (as also defined under this Regulation) is used for the calculation of corporate income tax. Article 2 paragraph (1) of this Regulation sets out a ratio of 4:1 as the maximum ratio between debt and equity. Certain corporate taxpayers that are exempted from the prescribed maximum ratio include banks, financing institutions, insurance and reinsurance institutions, and other institutions that are set out under Article 2 paragraph (2) of this Regulation. In addition to the prescribed debt to equity ratio, this Regulation requires taxpayers that have offshore loans to report the amount of their offshore loans to the Directorate General of Tax. This Regulation came into effect on the date of its enactment.
Financial Services Authority (“OJK”) Regulation No. 11/POJK.03/2015, dated August 24, 2015, regarding Prudential Principle Provisions for Commercial Banks to Stimulate the National Economy. This Regulation requires commercial banks to implement prudential principles with the stated goal of stimulating economic growth. Prudential principles addressed by this Regulation are carried out for (i) the calculation of risk-based assets for credit risks using standard approaches, (ii) asset quality assessment and stipulation, and (iii) capital participation for commercial banks. The above matters were previously regulated under several BI Regulations (i.e., BI Regulation No. 14/15/PBI/2012 regarding Quality Assessment for Commercial Bank Assets, BI Regulation No. 15/11/PBI/2013 regarding Prudential Principles for Capital Participation Activities and BI Circular Letter No. 13/6/DPNP regarding Guidelines for the Calculation of Risk-based Assets for Credit Risk Using Standard Approaches). Following the issuance of this Regulation, these BI Regulations remain valid provided that they do not contradict this OJK Regulation. This Regulation came into effect on the date of its promulgation and will be applicable for two years.
OJK Regulation No. 12/POJK.03/2015, dated August 24, 2015, regarding Prudential Principle Provisions for Sharia Banks and Sharia Business Units to Stimulate the National Economy. Similar to OJK Regulation No. 11/POJK.03/2015 for commercial banks, this Regulation stipulates provisions for the implementation of prudential principles for (i) the calculation of risk-based assets for credit risks using standard approaches, (ii) asset quality assessment and stipulation, and (iii) capital participation for sharia banks and sharia business units. This Regulation distinguishes between financing by sharia banks and sharia business units and that of commercial banks. This OJK Regulation came into effect on the date of its promulgation and will be applicable for two years.
General
Presidential Regulation No. 92 of 2015, dated August 18, 2015, regarding the Ratification of the Protocol to Amend the ASEAN Comprehensive Investment Agreement (the “Protocol”). The Protocol amends the reservation provisions of the ASEAN Comprehensive Investment Agreement (“ACIA”), providing that member states shall reduce the reservations specified in the schedule to the ACIA in accordance with the three phases of the Strategic Schedule of the ASEAN Economic Community Blueprint. The Protocol adds Annex 3 regarding procedures for the amendment or modification of reservations in the ACIA. The procedure involves submitting a notification to the Coordinating Committee on Investment in the event of amendment or modification of the reservations. This Regulation came into effect on the date of its enactment.
Industry
Minister of Industry Regulation No. 63/M-IND/PER/8/2015, dated August 24, 2015, regarding Road Map for Tobacco Industry Production for the Years 2015-2020. This Regulation establishes a road map to be used by the Government as a guideline for the planning, coordination, implementation and monitoring of the tobacco and cigarette industry. The stated aim of the road map is to ensure tobacco supply meets demand while controlling the growth of cigarette production. This Regulation revokes Minister of Industry Regulation No. 117/M-IND/Per/10/2009 and came into effect on the date of its enactment.
Minister of Industry Regulation No. 68/M-IND/PER/8/2015, dated August 24, 2015, regarding Provisions and Procedures for the Calculation of Domestic Component Level (Tingkat Komponen Dalam Negeri or “TKDN”) Value for Electronic and Telecommunication Products. TKDN values apply to products manufactured by industries with Indonesia Business Field Classification (Klasifikasi Baku Lapangan Usaha Indonesia or “KBLI”) numbers listed in the attachment of this Regulation. This Regulation contain provisions to calculate the TKDN values of, among others, (i) electronic goods and their components, (ii) information technology and/or communication devices, and (iii) software and content services. This Regulation revokes Minister of Industry Regulation No. 69/M-IND/Per/9/2014 and came into effect on the date of its enactment.
Maritime Affairs
Government Regulation No. 57 of 2015, dated August 4, 2015, regarding Quality and Safety Assurance System for Fishery Products and Increasing the Added Value of Fishery Products. This Regulation implements Article 22 and Article 24(3) of Law No. 31 of 2004 regarding Fisheries, as amended by Law No. 45 of 2009. Its main focus is the regulation of matters related to (i) the safety and quality of fishery products, which includes the establishment of standards, testing and certification of fishery products; (ii) increasing the added value of fishery products, with a focus on the handling of raw materials and the processing and distribution of fishery products; and (iii) the availability of raw materials for processing fish. This Regulation came into effect on the date of its enactment.
Tax
Government Regulation No. 56 of 2015, dated August 4, 2015, regarding the Amendment of Government Regulation No. 77 of 2013 regarding the Reduction of Income Tax Tariffs for Domestic Corporate Taxpayers in the Form of Public Companies. The stated aim of this Regulation is to increase the number of public companies and the public ownership of public companies, as well as to improve the role of capital markets as a source of business financing. Pursuant to this Regulation, domestic corporate taxpayers in the form of public companies may obtain a 5% reduction in their tax rate provided that (a) at least 40% of their total issued shares are registered and traded at the Indonesia Stock Exchange; (b) these shares are owned by at least 300 parties; (c) each of these parties owns less than 5% of the total issued and paid-up shares; and (d) the provisions in points (a) to (c) are satisfied for at least 183 calendar days in one tax year. This Regulation came into effect on the date of its enactment.
Director General of Tax Regulation No. PER-27/PJ/2015, dated July 14, 2015,
regarding the Revocation of Certain Director General of Tax Regulations and Circular Letters Related to the Issuance of Minister of Finance Regulations on General Tax Provisions and Procedures and on Land and Building Tax (Pajak Bumi dan Bangunan or “PBB”). This Regulation revokes (i) Director General of Tax Regulation No. PER- 29/PJ/2012 regarding Procedures for the Supervision of Book Transfers of Land and Building Tax at the Land and Building Tax Payment Location; (ii) Director General of Tax Regulation No. PER-38/PJ/2011 regarding Procedures for the Installment and Suspension of Payment of PBB; (iii) Director General of Tax Regulation No. PER- 70/PJ/2010 regarding Procedures for PBB Assessment; (iv) Director General of Tax Regulation No. PER-16/PJ/2010 regarding the Amendment of Director General of Tax Regulation No. PER-25/PJ/2009 regarding Procedures for the Submission and Settlement of PBB Objections; (v) Director General of Tax Regulation No. PER-25/ PJ/2009 regarding Procedures for the Submission and Settlement of PBB Objections; (vi) Director General of Tax Regulation PER-38/PJ/2008 regarding Procedures for the Granting of Installment and Suspension of Tax Payments; (vii) Director General of Tax Decree No. KEP-965/PJ.9/1991 regarding the Technical Implementation of Procedures for Tax Payment through Overbooking; and (viii) Director General of Tax Circular Letter No. SE-40/PJ.7/1988 regarding Procedures for the Issuance and Administration of Tax Stipulation Letter (Surat Ketetapan Pajak). This Regulation came into effect on the date of its enactment.
Trade
Minister of Trade Regulation No. 53/M-DAG/PER/7/2015, dated July 14, 2015,
regarding Import Provisions for Batik and Batik-Patterned Textiles and Textile Products. The stated aim of this Regulation is to protect Indonesian batik, following UNESCO’s acknowledgment of batik as a cultural heritage. This Regulation restricts the import of certain batik or batik-patterned textile products as provided in the attachment to this Regulation. Batik and batik-patterned textile products can only be imported by parties that have been stipulated as registered batik importers by the Ministry of Trade. This Regulation came into effect 90 days as of the date of its enactment.
Minister of Trade Regulation No. 62/M-DAG/PER/8/2015, dated August 12, 2015,
regarding Nitrocellulose Import Provisions. This Regulation provides that nitrocellulose may only be imported for industrial, defensive and security purposes, as set out in the attachment therein. Nitrocellulose can only be imported by parties that have been acknowledged as nitrocellulose producer importers or stipulated as registered importers of nitrocellulose. This Regulation sets out the requirements to obtain acknowledgement as a nitrocellulose producer importer or a nitrocellulose registered importer. It comes into effect on January 1, 2016.
Minister of Trade Regulation No. 66/M-DAG/PER/8/2015, dated August 27, 2015,
regarding the Amendment of Minister of Trade Regulation No. 97/M-DAG/PER/12/2014 regarding Export Provisions for Forestry Industry Products. This Regulation amends several provisions on export procedures for certain products, export declarations and verification of certain exported products. It came into effect on the date of its enactment.
Minister of Trade Regulation No. 63/M-DAG/PER/8/2015, dated August 18, 2015,
regarding the Second Amendment of Minister of Trade Regulation No. 78/M-DAG/ PER/10/2014 regarding Import Provisions on Forestry Products. This Regulation amends the effective date of the previous regulation, from February 1, 2015 to January 1, 2016. This Regulation came into effect on the date of its enactment.
Transportation
Government Regulation No. 64 of 2015, dated August 19, 2015, regarding the Amendment of Government Regulation No. 61 of 2009 regarding Ports. This Regulation adds a paragraph to Article 74 of the previous regulation. The addition provides that in the event a concession to a Port Business Entity is granted through a direct appointment, such Port Business Entity must: (a) own the land and (b) have the investment fully funded by such Port Business Entity, without using funds from the state or regional governments. This Regulation also clarifies that concession areas will be transferred to the port administrator pursuant to an agreement that will calculate the grant period of the concession. The Regulation came into effect on the date of its enactment.
Minister of Transportation Regulation No. 128 of 2015, dated September 1, 2015, regarding the Removal of Damaged Airplanes from Airports. This Regulation repeals Director General of Air Transportation Decree No. KP 116 of 2013 regarding the same matter. As stipulated under Civil Aviation Safety Regulation Part 139, which has been adopted under Minister of Transportation Regulation No. 55 of 2015, the removal of airplanes that suffer an incident/accident at an airport is necessary to maintain airport operations and aviation safety. Air Transportation Business Entities and Foreign Air Transportation Companies (as defined under the Regulation) are required, at their expense, to promptly remove any damaged airplanes from airports. If an Air Transportation Business Entity or Foreign Air Transportation Company is unable to do so, it can request the Airport Administrator to remove the airplane. The removal of damaged airplanes shall take into account several aspects that are set out under Article 5 of this Regulation. This Regulation came into effect on the date of its enactment.
Minister of Transportation Regulation No. 129 of 2015, dated August 28, 2015,
regarding Guidelines for the Formulation of Service Level Agreements for the Provision of Services to Airport Users. This Regulation implements Article 17 of Minister of Transportation Regulation No. 56 of 2015 regarding the Implementation of Business Activities at Airports. This Regulation governs, inter alia, the minimum contents of a Service Level Agreement including basic guidelines, signatories, forms of service, performance standards, terms, evaluation and reporting, compensation and force majeure. This Regulation came into effect on the date of its enactment.
Minister of Transportation Regulation No. 131 of 2015, dated August 28, 2015,
regarding the Improvement of Aviation Navigation Safety. Pursuant to this Regulation, aviation navigation safety service providers must take measures to improve their service, including the prioritized use of aviation navigation methods and the provision of meteorological information. This Regulation came into effect on the date of its enactment.
Minister of Transportation Regulation No. 136 of 2015, dated September 2, 2015,
regarding the Second Amendment of Minister of Transportation Regulation No. 52 of 2011 regarding Dredging and Reclamation. As indicated by its title, this Regulation amends several provisions of the previous regulation governing the same matter. Pursuant to this Regulation, it is now the Minister of Transportation (not the Director General of Sea Transportation) that will issue licenses for reclamation work at main ports, feeding ports and special terminals. This Regulation also adds a requirement to obtain a reclamation license, namely the fulfillment of the prescribed minimum paid-up capital (the prescribed amount is regulated under a separate Minister of Transportation regulation). This Regulation simplifies the procedure for reviewing the administrative documents, whereby the secretary general of the Ministry of Transportation will no longer review the documents. This Regulation came into effect on the date of its enactment.
For further information, please contact:
David Eyerly, Soewito Suhardiman Eddymurthy Kardono
