17 May, 2016
Minister of Transportation (“MOTR”) Regulation No. 12 of 2016, dated January 28, 2016, regarding the Third Amendment of MOTR Regulation No. 74 of 2015 regarding the Implementation and Administration of Transportation Arrangement Service. Under this Regulation, for a business entity with authorized capital of less than Rp 25 billion (and issued and paid-up capital of at least 25% of such authorized capital) to obtain a business license for transportation arrangement services, it shall submit a statement letter/approval letter from the transportation arrangement services association. Pursuant to this Regulation, the opening of certain branch of ces of a transportation arrangement services company must be reported to the Indonesian Investment Coordinating Board (“BKPM”) and be copied to the relevant Airport Authority/Port Authority/Kantor Kesyahbandaran dan Otoritas Pelabuhan (KSOP)/Unit Penyelenggara Pelabuhan (UPP)/ Other Transportation Authority (for provinces that have no port or logistics associations or forwarders). This Regulation came into force on the date of its promulgation.
MOTR Regulation No. 14 of 2016, dated January 28, 2016, regarding the Mechanism for the Calculation and Stipulation of Upper and Lower Tariff Thresholds for Economy- Class Passengers on Domestic Scheduled Commercial Airlines. This Regulation revokes MOTR Regulation No. 126 of 2015 regarding the same. Pursuant to this Regulation, the tariff for economy-class passengers on domestic scheduled commercial airlines shall be based on the following components: (i) distance tariff, (ii) tax, (iii) mandatory insurance contribution, and (iv) surcharge. This Regulation governs the mechanism and formula for the determination of tariffs for economy-class passengers on domestic scheduled airlines, including the calculation of tariffs for economy-class passengers on propeller- type airplanes having seating capacity of 30 and over 30. Pursuant to this Regulation, airline companies may set the price for economy-class tickets, so long as they do not exceed the distance-tariff upper thresholds set out in Appendices III through V of this Regulation. It also prohibits airlines from selling tickets at prices lower than 30% of the prescribed upper threshold. In certain circumstances, the tariffs stipulated pursuant to this Regulation will be evaluated. This Regulation came into force 30 days as of the date of its promulgation.
MOTR Regulation No. 15 of 2016, dated January 28, 2016, regarding Concession and Other Forms of Cooperation between the Government and Business Entities in the General Railway Sector. This Regulation implements Government Regulation No. 56 of 2009 regarding Railway Administration. It governs several activities in the railway sector, namely the administration of infrastructure and facilities for general and special railways (including the procurement, operation, maintenance and administration of general railways facilities). This Regulation contemplates that the construction, operation, maintenance and administration of railway infrastructure shall be conducted based on the railways masterplan (Rencana Induk Perkeretapaian) or through unsolicited schemes. Under this Regulation, the cooperation between the Government and business entities can be in the form of a concession or other forms (lease, borrow use, utilization cooperation, build operate transfer/build transfer operate), and cooperation for the procurement of infrastructure. The granting of a concession or other form of cooperation is through a tender or direct selection/appointment based on the applicable laws and regulations. This Regulation governs, inter alia, the detailed procedures for the granting of a concession or other form of cooperation between the Government and business entities in the general railway sector, the minimum contents of a concession agreement and an agreement for the other forms of cooperation. This 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
