17 May, 2016
Minister of Finance Regulation (“MOF”) No. 17/PMK.07/2016, dated February 9, 2016, regarding the Revocation of MOF Regulation No. 11/PMK.07/2010 regarding Procedures for the Imposition of Sanctions for Violations of Regional Tax and Retribution Provisions. This Regulation was issued to revoke MOF Regulation No. 11/PMK.07/2010 because the underlying provision for the imposition of sanctions for incompliance with regional tax and retribution, as set forth in Law No. 28 of 2009 regarding Regional Tax and Retribution, was revoked by Law No. 23 of 2014 regarding Regional Governments. This Regulation came into force on the date of its promulgation.
MOF Regulation No. 27/PMK.06/2016, dated February 22, 2016, regarding Guidelines for the Implementation of Auctions. This Regulation replaces MOF Regulation No. 93/PMK.06/2010 as amended by MOF Regulation No. 106/PMK.06/2013 regarding the same. It stipulates detailed procedures and requirements for (i) Execution Auctions (including tax auctions, execution of land mortgage, execution of duciary security, and execution of seized property pursuant to Article 45 of the Indonesian Criminal Procedural Code), (ii) Mandatory Non-Execution Auctions (including auction of State/Regional Property and auction of Bank Indonesia assets), and (iii) Voluntary Non-Execution Auctions (including auction of bank-owned assets in liquidation, auction of the property of State-Owned Enterprises/Regional-Owned Enterprises in the form of Persero). This Regulation will enter into force three months after the date of its promulgation.
MOF Regulation No. 29/PMK.03/2016, dated February 23, 2016, regarding the Second Amendment of MOF Regulation No. 191/PMK.010/2015 regarding the Re- evaluation of Fixed Assets for the Purposes of Tax Submission for the Year 2015 and the Year 2016. Certain taxpayers that satisfy certain criteria set out under this Regulation may pay their Income Tax as referred to in Article 1(2) or Article 6(2) of the Regulation at the latest on December 31, 2016. This Regulation was issued to facilitate certain taxpayers in the re-evaluation of xed assets for tax purposes. This Regulation came into force on the date of its promulgation.
MOF Regulation No. 34/PMK.03/2016, dated March 4, 2016, regarding the Amendment of MOF Regulation No. 160/PMK.04/2010 regarding Customs Value for the Calculation of Import Duty. The amended provisions under this Regulation include a provision concerning cases where there exist Objective and Measurable Concrete Evidence or Data (as de ned in the Regulation) that causes a discrepancy in the import duty. In such cases, the customs of cial may conduct an investigation and stipulate the customs value. Pursuant to this Regulation, customs of cials may consult with an importer or its proxy if the noti ed transaction value’s accuracy and truth is questionable based on the evaluation of the Declaration of Customs Value (“DNP”) or information, documents and/or statements submitted by the Importer. This Regulation will come into force 60 days after its promulgation.
MOF Regulation No. 35/PMK.010/2016, dated March 4, 2016, regarding the Fourth Amendment of MOF Regulation No. 213/PMK.011/2011 regarding the Stipulation of Goods Classi cation System and Imposition of Import Duty Tariff on Imported Goods. This Regulation amends Appendix III of MOF Regulation No. 213/PMK.011/2011 as lastly amended by MOF Regulation No. 132/PMK.010/2015, which stipulates the import duty tariff for imported goods in the form of materials and goods for the repair and/or maintenance of airplanes. Stipulated tariffs under this Regulation can be evaluated based on economic developments and conditions. This Regulation will come into force 30 days after its promulgation.
Financial Services Authority (“OJK”) Regulation No. 4/POJK.03/2016 of 2016, dated January 27, 2016, regarding Assessment of Bank Health Levels. This OJK Regulation revokes BI Regulation No. 13/1/PBI/2011 dated January 5, 2011 regarding the same. It provides more detailed provisions on the procedures for self-assessment by banks. This OJK Regulation came into force on the date of its promulgation.
OJK Regulation No. 5/POJK.03/2016 of 2016, dated January 27, 2016, regarding Banks Business Plans. This OJK Regulation revokes BI Regulation No. 12/21/PBI/2010, dated October 19, 2010 regarding the same. It provides that a business plan is a written document describing the short-term (one year) and mid-term (three years) business activity plans of a bank. The business plan itself must be submitted to the OJK at the latest by the end of November prior to the commencement of the business plan year. All information that must be included in the business plan is stipulated in this OJK Regulation, which came into force on the date of its promulgation.
OJK Regulation No. 6/POJK.03/2016 of 2016, dated January 27, 2016, regarding Business Activities and Of ce Networks Based on the Core Capital of Banks. This OJK Regulation revokes BI Regulation No. 14/26/PBI/2012, dated December 27, 2012, regarding the same. It classi es banks into Commercial Banks Based on Business Activities (Bank Umum berdasarkan Kegiatan Usaha or “BUKU”), according to their core capital. The classi cations are (i) BUKU 1: banks with core capital less than Rp 1 trillion; (ii) BUKU 2: banks with core capital of at least Rp 1 trillion to less than Rp 5 trillion; (iii) BUKU 3: banks with core capital of at least Rp 5 trillion to less than Rp 30 trillion; and (iv) BUKU 4: banks with core capital of at least Rp 30 trillion. This OJK Regulation provides limitations on activities that can be conducted by banks according to their classi cation above. It came into force on the date of its promulgation.
OJK Regulation No. 7/POJK.03/2016 of 2016, dated January 27, 2016, regarding Prudential Principles for Structured Product Activities by Commercial Banks. This OJK Regulation revokes BI Regulation No. 11/26/PBI/2009 dated July 1, 2009 regarding the same. Pursuant to this OJK Regulation, a structured product is a bank product that combines two or more nancial instruments in the form of non-derivative and derivative nancial instruments, or derivative and derivative nancial instruments, with minimum characteristics as stipulated in this OJK Regulation. Commercials banks can only conduct structured product activities if such commercial banks have obtained (i) principle approval for conducting structured products activities and (ii) an effective statement for the issuance of any type of structured products from the OJK. Commercial banks shall also (i) conduct risk management, (ii) conduct customer classi cation, (iii) ensure the transparency of information on the products, (iv) provide a cooling-off period for customers to study an offer and documents regarding the structured product, and ensure that customers understand the information in the offer, and (v) make a structured product agreement. This OJK Regulation also obliges banks to report to OJK structured product transactions made by the banks. It came into force on the date of its promulgation.
OJK Regulation No. 8/POJK.03/2016 of 2016, dated January 27, 2016, regarding Prudential Principles in Implementing Foreign Financial Products Agency Activities by Commercial Banks. This OJK Regulation revokes BI Regulation No. 12/9/PBI/2010, dated June 29, 2010, regarding the same. It provides that commercials banks can only conduct foreign nancial products agency activities after obtaining principle approval from the OJK. Commercial banks are also prohibited to act as a sub-agent in conducting such activities. Banks are further required to implement effective risk management when carrying out foreign nancial products agency activities. Additionally, commercial banks are prohibited to conduct any activities that can directly or indirectly cause customers to deem (i) the foreign nancial products are the bank’s products; (ii) that the bank has provided a guarantee for the disbursement of the foreign nancial products; (iii) that the bank has assured the amount of return on the foreign nancial products; (iv) that the bank has provided a guarantee for the ful llment of the foreign nancial products transaction contract in the form of a non-securities foreign investment instrument, namely a structured product that is a combination of derivative products, for the bene t of customers or the issuers of the foreign nancial products; and/or (v) that the bank has provided a commitment to purchase the foreign nancial products at any time (stand-by buyer). This OJK Regulation came into force on the date of its promulgation.
OJK Regulation No. 9/POJK.03/2016 of 2016, dated January 27, 2016, regarding Prudential Principles for Commercial Banks that Delegate Portions of their Works to other Parties. This OJK Regulation administers the practice of delegating portions of work to other parties, in other words, outsourcing. The outsourcing activity described in this OJK Regulation is the outsourcing of particular work of a commercial bank to an outsourcing provider company. Work that can be outsourced to other parties is work that (i) is low-risk, (ii) does not require a high level of competence in the banking sector and (iii) is not directly related to the decision-making process in uencing the operational activities of the commercial bank. Such outsourcing arrangement must be initiated by an outsourcing agreement and/or a procurement of manpower services agreement. This OJK Regulation came into force on the date of its promulgation.
For further information, please contact:
Dyah Soewito, Partner, Soewito Suhardiman Eddymurthy Kardono
dyahsoewito@ssek.com
