3 October, 2015
Bank Indonesia (“BI”) Regulation No. 17/7/PBI/2015, dated June 1, 2015,
regarding the Amendment of BI Regulation No. 16/17/PBI/2014 regarding Foreign Exchange Transactions against Rupiah between Banks and Foreign Parties. Banks are obliged to meet requirements as set forth in Article 2 of this Regulation to conduct foreign exchange transactions against the Rupiah. These requirements include the obligation for banks (a) to have written internal guidelines pertaining to derivative transactions and the implementation of risk management, (b) to satisfy the banking authority’s provisions regarding categories of banks that may conduct foreign exchange transaction activities, and (c) to conduct mark-to-market for derivative transactions. Further, this Regulation amends Article 3 of the previous regulation to provide that foreign exchange transactions against the Rupiah that exceed a certain threshold must have an underlying transaction that is detailed therein. This Regulation came into effect on the date of its enactment.
BI Circular Letter No. 17/17/DKMP, dated June 26, 2015,
regarding Calculation of the Minimum Mandatory Clearing Account or Giro Wajib Minimum (“GWM”) in Rupiah or Foreign Currency for Conventional Commercial Banks. This Circular Letter further implements BI Regulation No. 17/11/PBI/2015, dated June 18, 2015, as the amendment of BI Regulation No. 15/15/PBI/2013, dated December 24, 2013, regarding the same. This Circular Letter provides further details on the calculation of the Primary GWM, Secondary GWM, GWM of Loan-to-Funding Ratio, and the fulfillment of GWM for banks that conduct a merger or consolidation, or convert to sharia banks, and banks that are licensed to carry out business activities in foreign currency. Under this Circular Letter, banks shall also submit their report on Issued Commercial Papers to BI each month to be further used as the basis for the calculation of GWM of Loan-to-Funding Ratio. This Circular Letter revokes BI Circular Letter No. 15/41/DKMP, dated October 1, 2013, regarding the Calculation of Secondary GWM and GWM based on the Loan-to-Deposit Ratio in Rupiah. This Circular Letter came into effect on the date of its issuance.
BI Circular Letter No. 17/19/DPUM, dated July 8, 2015,
as the amendment of BI Circular Letter No. 15/35/DPAU, dated August 29, 2013, regarding the Granting of Credits or Financing by Commercial Banks and Technical Assistance in the Framework of Micro-, Small- and Medium-Scale Business (“UMKM”) Development. This Circular Letter expands the procedures regulated in its general provisions and amends the provisions regarding the granting of credit or UMKM financing plans from 2015 to 2018. The procedures regulated in this Circular Letter are those for the calculation and monitoring of credit segment achievement or UMKM financing, implementation of cooperation structure, technical assistance, granting of incentives and the imposition of disincentives, publication of credit segment achievement or UMKM financing, awarding to commercial banks, monitoring of the training activities conducted by sharia banks, and reporting to BI on the granting of credit and UMKM financing. This Circular Letter also details procedures for the imposition of sanctions. This Circular Letter came into effect on August 3, 2015.
Minister of Finance Regulation No. 132/PMK.010/2015, dated July 9, 2015,
regarding the Third Amendment of Minister of Finance Regulation No. 213/PMK.011/2011 regarding the Stipulation of the Goods Classification System and the Imposition of Import Duty on Imported Goods. This Regulation was issued in consideration of, among other things, the Minister of Industry letters to the Ministry of Finance regarding the proposed adjustment to the import duty tariffs for consumer products in the industry sector and the maintenance of airplanes. This Regulation amends Attachment III of Minister of Finance Regulation No. 213/PMK.011/2011 containing the list of consumer products in the industry sector and airplane components. In addition, Article 2 of this Regulation stipulates that the import duty may be evaluated in accordance with economic developments and conditions. This Regulation came into effect 14 days after its enactment (i.e., 14 days after July 9, 2015).
Minister of Finance Regulation No. 133/PMK.05/2015, dated July 14, 2015,
regarding Service Tariffs of the Public Service Agency for Palm Oil Plantation Fund Management (Badan Pengelola Dana Perkebunan or “BPDP”) at the Ministry of Finance. This Regulation revokes the previous regulation on the same matter, Minister of Finance Regulation No. 114/PMK.05/2015. This Regulation governs compensation for services provided by the BPDP (i.e., levies on the export of crude palm oil and/or its derivative products and the dues of palm oil plantation companies). The tariffs for the levies are set out under the attachments of this Regulation, which came into effect on July 16, 2015.
Minister of Finance Regulation No. 136/PMK.010/2015, dated July 15, 2015,
regarding the Fourth Amendment of Minister of Finance Regulation No. 75/ PMK.011/2012 regarding the Stipulation of Export Goods that are Subject to Export Duties and the Rate of Export Duties. This Regulation was issued in consideration of, among other things, a proposal by the Minister of Industry to revise the provisions concerning the reference price to stipulate the export duties for palm oil, crude palm oil and their derivative products. This Regulation amends Attachment III of Minister of Finance Regulation No. 75/PMK.011/2012, which contains the export duties for palm oil, crude palm oil and their derivative products. This Regulation came into effect on July 16, 2015.
Minister of Finance Regulation No. 142/PMK.010/2015, dated July 27, 2015,
regarding the Fourth Amendment of Minister of Finance Decree No. 231/KMK.03/2001 regarding the Luxury Goods Value Added Tax and Sales Tax Treatment for the Import of Taxable Goods that Are Exempted from Import Duties. This stated aim of this Regulation is to support the development of the Indonesian geothermal sector and to harmonize the provisions on the granting of tax and customs facilities for certain goods. Under this Regulation, the following goods are no longer subject to import duty: (i) exported goods that will be re-imported with the same quality (provided that such goods are declared to be re-imported at the time of export); (ii) exported goods that are stated to be fixed, developed/processed and tested abroad and will be re-imported;
(iii) medicines that are imported using the state budget for the public interest; and (iv) human therapy substances, and blood classification and tissue identification substances that are imported using the state budget for the public interest. This Regulation came into effect on the date of its enactment.
Minister of Finance Regulation No. 146/PMK.05/2015, dated July 30, 2015,
regarding the Implementation of the Subsidy for Interest on People’s Business Credit (Kredit Usaha Rakyat). This is an implementing regulation for Presidential Decree No. 14 of 2015, as amended by Presidential Decree No. 19 of 2015 regarding the Committee on Financing Policy for Micro, Small and Medium Business. This Regulation governs the procedure for subsidizing the credit interest (including fund allocation, payment and reporting). This Regulation came into effect on the date of its enactment.
Minister of Finance Regulation No. 154/PMK.03/2015, dated August 10, 2015,
regarding Procedures for the Collection, Payment and Reporting of Value Added Tax on the Delivery of Fuel for Foreign Carriage Vessels. This is an implementing regulation for Article 6 of Government Regulation No. 15 of 2015 regarding the Value Added Tax Treatment for the Delivery of Fuel for International Carriage Vessels (“GR 15/2015”). This Regulation provides that the delivery of Marine Fuel Oil (“MFO”) 380 and Marine Gas Oil (“MGO”), according to ISO 8217 specifications and/or other specifications as stipulated by the Minister of Energy and Mineral Resources, to foreign carriage vessels is exempt from VAT. This applies for Indonesian and foreign carriage vessels that engage in international sea carriage (carriage to and from Indonesian ports or special terminals opened for foreign trade). To obtain this tax facility, the companies delivering MFO 380 and MGO must be taxable entrepreneurs having a fuel processing and storage facility in Indonesia and shall prepare a tax invoice in accordance with the prevailing laws and regulations. This Regulation came into effect on the date of its enactment.
Minister of Finance Regulation No. 155/PMK.010/2015, dated August 11, 2015,
regarding the Imposition of Import Duty as a Safeguard Measure for the Import of Steel Wire Rod Products. This Regulation was enacted in consideration of, among other things, the recommendation from the Indonesian Trade Safeguard Committee to take safeguard measures in response to severe losses by the domestic industry as a result of increased steel wire rod imports. Imported steel wire rod products that meet the specifications set out in this Regulation will be subject to import duty. Steel wire rod imports from countries as set out in the attachment of this Regulation are exempt from import duty. This Regulation came into effect seven days after its enactment (i.e., seven days after August 11, 2015). This Regulation expressly provides that it will only be applicable for three years from its entry into force.
Minister of Finance Regulation No. 157/PMK.010/2015, dated August 13, 2015,
regarding the Implementation of Income Tax Treatment that is based on the Provisions under International Agreements. This is an implementing regulation for Article 26 paragraph (3) of Government Regulation No. 94 of 2010 regarding the Calculation of Taxable Income and the Payment of Income Tax in the Ongoing Year (“GR 94/2010”). Pursuant to Article 2 of this Regulation, if the provisions on income tax under an international agreement (the qualifications of which are governed under this Regulation) are different from the provisions under the applicable Income Tax Law, the former shall prevail, provided Minister of Finance approval has been obtained. This Regulation came into effect on the date of its enactment.
Minister of Finance Regulation No. 158/PMK.010/2015, dated August 13, 2015,
regarding the Criteria for Art and Entertainment Services that Are Not Subject to Value Added Tax. This Regulation sets out the types of products and services provided by art and entertainment workers that are exempted from VAT. The exempted products and services include (i) movies; (ii) art, music, dance and/or fashion shows; (iii) beauty and bodybuilding contests and similar contest; (iv) exhibits; (v) karaoke clubs, nightclubs and the like; (vi) circus, acrobatic and magic shows; (vii) horse, motor racing and agility games; and (viii) sports games. This Regulation came into effect 30 days as of its enactment (i.e., 30 days after August 13, 2015).
Financial Services Authority (“OJK”) Regulation No. 10/POJK.03/2015, dated July 14, 2015,
regarding the Issuance of Certificates of Deposit by Banks. Pursuant to this Regulation, Certificates of Deposit may be issued in the form of a scripted Certificate of Deposit or a scriptless Certificate of Deposit. This Regulation specifically provides that the issuance of a scriptless Certificate of Deposit shall be approved by the OJK. Both Certificates of Deposit may be issued in Rupiah or foreign currencies, provided that the Certificate of Deposit in foreign currency is issued by a bank that is authorized to conduct foreign currency transactions. Banks are prohibited to issue a Certificate of Deposit that is purposed as a derivate product and related to other financial products. Under this Regulation, there are several obligations on banks issuing Certificates of Deposit, including: (i) to record the first ownership of the Certificate of Deposit, (ii) to implement risk management, (iii) to implement anti-money laundering and counterterrorism funding programs, and (iv) to implement consumer protection principles. Additionally, banks must periodically report to the OJK regarding the Certificates of Deposit they have issued. This Regulation came into effect on the date of its enactment.
OJK Circular Letter No. 17/SEOJK.05/2015, dated June 8, 2015,
regarding the Appointment of Public Accountants, Actuaries and/or Independent Appraisers as the Examiners of Non-Bank Financial Services Institutions. Pursuant to this Circular Letter, the OJK may appoint public accountants, actuaries and/or independent appraisers who meet the requirements stipulated in this Circular Letter to be examiners. This Circular Letter contains the requirements for the appointment of examiners to conduct direct examination of non-bank financial services institutions. This Circular Letter came into effect on the date of its stipulation.
OJK Circular Letter No. 18/SEOJK.03/2015, dated June 8, 2015,
regarding the Transparency and Publication of Sharia Bank and Sharia Business Unit Reports. This Circular Letter implements OJK Regulation No. 6/POJK.03/, dated April 1, 2015, regarding the Transparency and Publication of Bank Reports, and is intended to govern the transparency and publication of reports of sharia banks and sharia business units. Pursuant to this Circular Letter, published reports are intended to provide information concerning financial position, bank performance and other financial information including qualitative information regarding the business development of the bank. Published reports are divided into monthly reports, quarterly reports, annual reports and other reports. The reports must meet the minimum standard format as intended in this Circular Letter. This Circular Letter came into effect on the date of its stipulation.
Governor of DKI Jakarta Regulation No. 188 of 2015, dated June 15, 2015,
regarding Procedures for the Granting of Relief, Deductions and Exemptions from Regional Retribution. This Regulation sets out the process and requirements to obtain regional retribution relief, deductions and exemptions. Retribution relief may be granted with or without a request from the retribution payer. The Regulation sets out points to be considered and criteria for a retribution payer to obtain retribution relief, deduction or exemption. This Regulation came into effect on the date of its enactment.
For further information, please contact:
Dyah Soewito, Partner, Soewito Suhardiman Eddymurthy Kardono
dyahsoewito@ssek.com
