General Corporate

1. Regulation of the Government No. 8 of 2023 on the Dissolution of PT Merpati Nusantara Airlines

Enforcement Date: 20 February 2023

Summary:

• PT Merpati Nusantara Airlines (“Merpati Airlines”) has now officially been declared bankrupt based on Decision of the Surabaya Commercial Court No. S/Pdt.SusPembatalan Perdamaian 2022/PN.Niaga Sby juncto No. 4/Pdt.Sus-PKPU/20l8/PN.Niaga Sby dated 2 June 2022. The bankruptcy assets of Merpati Airlines will now be subject to processes of insolvency.
• This liquidation, in terms of the dissolution process, will be implemented in line with various provisions set out under relevant laws and regulations that apply in relation to the following areas: 1) State-owned enterprises; 2) Suspension of Debt Payment Obligations (Penundaan Kewajiban Pembayaran Utang/PKPU); 3) Limited-liability companies; 4) Other relevant laws and regulations.

 

2. Regulation of the Government No. 9 of 2023 on the Dissolution of PT Kertas Leces

Enforcement Date: 20 February 2023

Summary:

• PT Kertas Leces has now officially been declared bankrupt based on Decision of the Surabaya Commercial Court No. 1/Pdt.Sus.Pembatalan Perdamaian/2018/PN Niaga Sby juncto No. 5/Pdt.Sus-PKPU/2014/PN Niaga Sby, dated 25 September 2021. The bankruptcy assets of PT Kercas Leces will now be subject to processes of insolvency.
• This liquidation, in terms of the dissolution process, will be implemented in line with various provisions set out under relevant laws and regulations that apply in relation to the following areas: 1) State-owned enterprises; 2) Suspension of Debt Payment Obligations (Penundaan Kewajiban Pembayaran Utang/PKPU); 3) Limited-liability companies; 4) Other relevant laws and regulations.

 

3. Regulation of the President No. 10 of 2023 on the Ratification of Agreement Concerning the International Classification of Goods and Services for the Purposes of the Registration of Marks

Enforcement Date: 20 January 2023

Summary:

• Indonesia has finally ratified the Nice Agreement concerning the International Classification of Goods and Services for the Purposes of Registering Trademarks (“Agreement”), which will result in the country adopting the various classifications and descriptions of goods and services for trademark registrations (collectively referred to as “Classifications”) that feature under the Agreement.
• Classifications must be formulated in both the English and French languages and should comprise the following elements: 1) List of classes, which should be accompanied by explanatory notes if required; and 2) Alphabetical list of goods and services (“Alphabetical List”), along with an indication of the classes into which various types of goods or services fall.
• The Agreement grants each member state of the Special Union, including Indonesia, the right to utilize the Classifications, whether as their main or an additional Classification system. The authorities of said member states must state the number of classes that their Classifications feature as part of any official documents and publications that relate to the registration of goods and services as trademarks.
• For more information, see ILB No. 4572.

 

4. Regulation of the Coordinating Ministry for Economic Affairs No. 1 of 2023 on the Amendment to Regulation of the Coordinating Minister for Economic Affairs No. 1 of 2022 on Implementing Guidelines for Community Business Credit

Enforcement Date: 27 January 2023

Summary:

• Community Business Credit (Kredit Usaha Rakyat- “KUR”) distributors, which comprise financial institutions or cooperatives, must fulfill the following requirements: 1) Must be in a sound financial condition and must have demonstrated performance; 2) Must cooperate with KUR guarantor companies during the distribution of KUR; and 3) Must possess electronic systems which have been integrated with KUR data, as held within the Credit Program Information System (Sistem Informasi Kredit Program/SIKP) (“Systems”).
• The above Systems must be able to engage in the following activities at the least: 1) Process covering (penutupan) guarantees; 2) Collect guarantee fees; 3) Process claim submissions; 4) Claim payments; and 5) Subrogation. In addition, said Systems must also be outlined in a cooperation agreement between the KUR distributor and KUR guarantor.
• During the distribution of KUR, the KUR distributor may use the linkage pattern in the form of channeling or execution. Said linkage pattern should be performed with linkage institutions, which encompass: 1) Cooperatives; 2) Rural banks/sharia rural banks; 3) Financing companies; 4) Venture-capital companies; 5) Microfinancing institutions (in either conventional or sharia form); and 6) Other non-bank financial institutions.

 

5. Regulation of the Coordinating Minister for Economic Affairs No. 2 of 2023 on the Special Treatment of Recipients of Community Business Credit Affected by Corona Virus Disease 2019

Enforcement Date: 27 January 2023

Summary:

• Certain recipients of Community Business Credit (Kredit Usaha Rakyat – “KUR”) (i.e. super-micro-KUR, micro-KUR and special-KUR) (collectively referred to as “Recipients”) will be classified as having been affected by Corona Virus Disease 2019 (“COVID-19”) if they experience any decrease in their business as a result of any of the following conditions: 1) Decrease in revenue due to COVID-19 related disruption; and/or 2) Disruption of their production processes due to COVID-19. Said Recipients must fulfill various requirements, including: 1) Must satisfy certain credit quality requirements that relate to credit/financing; and 2) Must act cooperatively or in a good faith.
• KUR Recipients for the placement of Indonesian migrant workers (Pekerja Migran Indonesia – “PMI”) that are classified as having been affected by COVID-19 include the following Recipients: 1) Recipients for which the relevant departure to a destination country has been postponed as a result of the suspension of the policy on the sending of PMI or other conditions, as determined by the government; or 2) Recipients who undergo processes of temporary repatriation after PMI arrive in their destination countries and who will return to work after the end of the COVID-19 pandemic.
• Special KUR provisions may apply to the above above-described Recipients and encompass the following: 1) The postponement of principal KUR installments for a given period in accordance with assessments of KUR distributors and relevant laws and regulations; and/or 2) Relaxation of provisions in the form of the granting of KUR restructuring as KUR period extensions.

 

6. Regulation of the Coordinating Minister for Economic Affairs No. 3 of 2023 on Implementing Guidelines for Agricultural Equipment and Machinery Business Credit

Enforcement Date: 27 January 2023

Summary:

• Agricultural Equipment and Machinery (Alat dan Mesin Pertanian – “Alsintan”) business credit (“Credit”) should be used in order to purchase Alsintan, which should then be subsequently utilized by business actors through Alsintan rental service systems or ownership, as supported through the utilization of information technology in order to strengthen the business of Alsintan management institutions (collectively referred to as “Taksi Alsintan”), during the following harvesting phases: 1) Pre-harvesting; 2) Harvesting; and 3) Post-harvesting. Recipients of the Credit outlined above must engage in cooperation between guided farmer partners and/or other farmers.
• Recipients of Credit encompass the following parties: 1) Micro-, small- and medium-scale enterprises (“MSMe”) operating within the agricultural sector; 2) MSMe that comprise the family members of fixed-income employees; 3) MSMe that are not part of the civil service, Indonesian National Army or Indonesian Police Force; or 4) Groups of MSMe that take the form of farmers’ groups.
• Prospective Credit recipients must satisfy various requirements, including the following: 1) Must not currently be receiving any Community Business Credit (Kredit Usaha Rakyat – “KUR”) or other government program credit for productive purposes; 2) May only receive Credit once; and/or 3) Must have not yet received any investment/commercial working capital with the exception of the following credits: a) Household consumption credit; 2) Ultra-micro scheme credit or any equivalent credit thereof; and/or 3) Loans through peer-to-peer lending services. 
• Credit distributors comprise financial institutions or cooperatives that have been designated as KUR distributors. As a result, Credit distributors are required to operate in line with the following conditions: 1) Must have a small KUR scheme distribution ceiling; and 2) Must not currently be under any temporary suspension.

 

7. Regulation of the Minister of Law and Human Rights No. 1 of 2023 on the Management of Investigations into Criminal Acts Within the Intellectual Property Sector

Enforcement Date: 6 January 2023

Summary:

• The following parties are eligible to submit complaints in relation to suspected intellectual property (“IP”) crimes (“Crimes”): 1) Holders of IP that have registered with the Directorate-General of Intellectual Property (“Directorate-General”); 2) Holders of copyrights, relevant rights owners and owners of trade secrets; 3) Holders of IP rights licenses that have registered with the Directorate-General; and 4) Endorsees (penerima kuasa) of certain eligible parties who have the role of legal counselors in accordance with relevant laws and regulations. Said reports must be submitted along with supporting documents (e.g. proof of IP ownership, type of Crime, related parties and so forth).
• In order for an investigation of an alleged Crime to commence, the following requirements must be fulfilled: 1) An investigation must be carried out based on the relevant investigation basis; and 2) There must be a minimum of two pieces of evidence. Broadly speaking, an investigation must be implemented in the following order: 1) Planning; 2) Organization; 3) Implementation; 4) Transferring of files, suspects and evidence; and 5) Termination of investigation.
• IP disputes are allowed to be settled through mediation, however, this will not terminate any legal proceedings relating to reported Crimes. Said mediation should be carried out by non-investigator mediators and is mandatory in certain cases, as well as having to be preceded by the submission of an application to the Minister of Laws and Human Rights.
• For more information, see ILB No. 4568.

 

8. Regulation of the Minister of Law and Human Rights No. 6 of 2023 on the Public Service Complaints Management System of the Ministry of Law and Human Rights

Enforcement Date: 2 February 2023

Summary:

• The management of public service complaints through the LAPOR application is to be implemented in the following stages: 1) National administration; 2) Agency administration; and 3) Liaison officers.
• The head of the work unit must provide adequate facilities and infrastructure in order to manage public service complaints. The facilities in question may take the following forms: 1) Website - www.lapor.go.id; 2) SMS - 1708 KUMHAM; 3) Twitter - @lapor1708; or 4) Mobile application - LAPOR. Meanwhile, management infrastructure capable of handling public complaints should take the following forms at the least: 1) Computers; 2) Laptops; 3) Internet access; 4) Printers; 5) Scanners; and 6) Smartphones.
• Data and applications can be utilized through the LAPOR app in relation to the following activities: 1) Data analysis and monthly presentation of infographics by main units, regional offices and technical implementing units (unit pelaksana teknis – “UPT”); 2) Monthly publication and dissemination of data to the public through the media by the main unit, regional offices and UPT; and 3) Formulation of public policies aimed at improving public services at the Ministry of Law and Human Rights.

 

9. Circular of the Director-General of Immigration No. IMI-0058.GR.01.01 of 2023 on Immigration Policy for the Electronic Visa on Arrival/E-VOA, Immigration Policy for the Electronic Visa on Arrival/E-VOA, Visa on Arrival and Free Visa on Arrival to Support Sustainable Tourism During the Corona Virus Disease 2019 Pandemic

Enforcement Date: 13 February 2023

Summary:

• Sets out a new immigration policy for the Visa on Arrival (“VoA”), Electronic VoA (“e-VoA”) and Free Visit Visa in an effort to support sustainable tourism during/in the wake of the COVID-19 pandemic.
• The new circular sets the following business process in relation to the implementation of the e-VoA: 1) Request for account access through: molina.imigrasi.go.id by filling out the relevant personal information and uploading the identity page of the applicant’s passport, as well as a passport photo; 2) Account activation; 3) Submission of e-VoA application through: molina.imigrasi.go.id; 4) Completion of payment for the e-VoA service through the payment getaway; 5) Document inspection (e.g. travel document, return or transit ticket); 6) Interview; 7) e-VoA inspection; 8) Scanning of travel document; 9) Checking against the deterrence list (daftar penangkalan); 10) Inputting of the relevant flight number, voucher number and visa number; 11) Printing out of an electronic stamp sticker; and 12) Handover of the relevant travel document.
• Other matters relating to VoA and free tourist visa services are summarized in the following edition of Daily Updates: “Provisions on the Issuance of Visas on Arrival and Free Visitor Visas for Sustainable Tourism Updated”, while provisions that address e-VOA services are summarized in the following edition of Daily Updates: “e-VOA App Now Accessible to Citizens of 46 Foreign Countries”.

 

10. Decree of the Head of the Central Jakarta District No. W10-U1/05/KP.00.3/I/2023 on The Enforcement of E-Court Registrations by the Special Civil Registrar (Commercial and PHI) at the Special Class IA Central Jakarta District Court

Enforcement Date: 18 January 2023

Summary:

• Determines and implements e-court registrations for special civil-case clerkships at the District Court level, specifically Commercial Court and Industrial Relations Court (Pengadilan Hubungan Industrial/PHI) cases. Said e-court registrations commenced on 24 January 2023.
• Decree 5/2023 has been issued as a follow-up to Regulation of the Supreme Court (Mahkamah Agung – “MA”)  No. 7 of 2022 (“Amendment”) on the Amendment to Regulation  No. 1 of 2019 on the Administration of Cases and Legal Proceedings in Courts via Electronic Means (“Regulation 1/2019”), which stated that administrative and legal proceedings that were implemented via electronic means were applicable in relation to various types of special civil-law cases.
• The Amendment was summarized in the following edition of Daily Updates: “Supreme Court Amends Provisions on Administration of Cases and Legal Proceedings in Courts via Electronic Means”.

 

11. Regulation of the Head of Business Competition Supervisory Commission No. 1 of 2023 on Guidelines for Commission Approvals of Leniency Requests for Payments of Fines in Stages or During Specific Timeframes

Enforcement Date: 4 January 2023

Summary:

• Under this new framework, Leniency Requests for Payments of Fines in Stages or During Specific Timeframes (“Leniency”) requests should be submitted in writing to the Head of the the Business Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha – “KPPU”)  within 14 days of the handing down of any legally binding decision, as counted from: 1) The date upon which the respondent receives a copy of the relevant KPPU decision; or 2) The date upon which the respondent receives a notification on the copy of a decision from the Commercial Court or the Supreme Court.
• Leniency requests should be submitted along with supporting data in a form of business entity financial reports that cover the past three years and which encompass: 1) The cash flow of the company during the relevant submission period, as well as a written statement affirming that the cashflow analysis of the company will be disrupted by any obligation to pay a fine; 2) A cashflow plan, which should include a proposal to pay the relevant fine in stages or during a certain timeframe; and 3) A written statement that sets out an analysis of an ideal proposed fine payment schedule that has been drawn up in accordance with the financial ability or business activities of the relevant company.

 

12. Draft Bill on Cooperatives

Enforcement Date: -

Summary:

• Cooperatives may be designated with legal entity status after their deeds of establishment have been authorized by the Minister of Cooperatives (“Minister”). Cooperatives may take the following forms: 1) Primary cooperatives; and 2) Secondary cooperatives. 
• Primary cooperatives must be established by at least nine people while secondary cooperatives must be established by at least three cooperatives. The establishment of these organizations should be completed through the holding of a meeting of establishment, which should be conducted in line with deeds of establishment drawn up by notaries in the Indonesian language that set out the new organization’s articles of association, as well as other relevant information.
• The above-mentioned deeds of establishment should be submitted by founders and/or their proxies through notaries to the Minister within 14 days of said deeds of establishment being signed. The Minister will then authorize a deed of establishment within three days of such an application being submitted.

 

13. Draft Bill on the Stipulation of Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation 

Enforcement Date: -

Summary:

• The deliberation process for the stipulation of Government Regulation in Lieu of Law No. 2 of 2022 on Job Creation (“Job Creation Perppu”) as a Law has been completed and has resulted in the decision to stipulate the Job Creation Perppu as a Law. In response to this decision, the Secretary General of the Ministry of Manpower, Anwar Sanusi, has expressed his appreciation for this decision.
• Mr. Sanusi has reaffirmed once again that the substance of the provisions set out under the Job Creation Perppu is substantially similar to the provisions set out under the Job Creation Law. However, several adjustments have been made in relation to certain provisions, for instance the use of the word “disability” instead of “cacat” in several provisions. It has been confirmed that these adjustments have been made in order to better protect workers who are facing the dynamic challenges within the workplace.
• Also expressing an opinion, Juanda Pangaribuan has stated that the most urgently needed adjustment following the issuance of the Job Creation Perppu concerns the provisions on outsourcing. In this regard, the promulgation of Job Creation Perppu as a Law will potentially result in the need to adjust Regulation of the Government No. 35 of 2021, as well as Regulation of the Government No. 36 of 2021.

 

Banking

14. Regulation of the Bank Indonesia Board of Governors No. 1 of 2023 on the Second Amendment to Regulation of the Bank Indonesia Board of Governors No. 24/4/PADG/2022 on the Implementing Regulation on Incentives for Banks Providing Funding for Certain and Inclusive Economic Activities

Enforcement Date: 1 March 2023

Summary:

• Bank Indonesia (“BI”) provides incentives for conventional commercial banks, sharia commercial banks and sharia business units (collectively referred to as “Banks”) that in turn provide funding for the following certain and inclusive economic activities: 1) Credit or financing for priority sectors; 2) Achievement of the Macroprudential Inclusive Financing Ratio (Rasio Pembiayaan Inklusif Makroprudensial – “RPIM”); and/or 3) Other economic activities, as determined by Bank Indonesia (“BI”) (including environmentally sound credit or financing).
• Said priority sectors encompass sectors that are: 1) Resilient to economic pressures; 2) Drivers of economic growth; and 3) Central to economic recovery. Meanwhile, the incentives take the form of leniency as regards the obligation to fulfill the minimum reserve requirement in rupiah, which must be fulfilled up to a maximum of 2.8%.
• BI will disseminate information on the provision of incentives to Banks for the March 2023 period by no later than early March 2023, and for the April 2023 to May 2023 period by no later than early April 2023.

 

15. Circular of the Deposit Insurance Corporation No. SE-1/KE/2023 on Guidelines for the Examination of the Reliability of Data Quality and Data Processing Systems for Single Customer Views for Internal Audits of Banks and Independent Parties Appointed by Banks

Enforcement Date: 18 January 2023

Summary:

• Commercial banks (“Banks”) are mandated to conduct annual inspections of the quality of their data and the reliability of any systems (“Inspections”) that they utilize during the processing and storage of Single Customer View (“SCV”) data (“SCV Data”). Said Inspections should be conducted through internal audits or by independent external parties that have been appointed by the relevant Banks.
• Inspections should be carried out through a sampling method that represents the spread of population as it relates to a Bank’s internal policies, while said Inspections should also be drafted into reports. Inspections cover the following objects: 1) SCV Data quality; and 2) Reliability of Banks’ systems. The results of the above Inspections should also be drafted into Inspection conclusions that should address the overall impact on Bank deposits and whether they should be guaranteed or not by the Deposit Insurance Corporation (Lembaga Penjamin Simpanan – “LPS”).
• The results of the above Inspections should be submitted to the LPS by no later than the month following the month in which Inspection results are completed, along with a cover letter that has been signed by an authorized board of directors’ member of the relevant Bank. Meanwhile, the above-described Inspection reports should be submitted to the LPS through the official e-Report website, while the cover letters for said reports should be addressed to the Director for the Handling of Claims at the LPS.
• For more information, see ILB No. 4574.

 

Capital Market

16. Decree of the Director of PT Kostudian Sentral Efek Indonesia No. KEP-0010/DIR/KSEI/0223 on Guidelines for Electronic Reporting by Securities Administration Divisions and Securities Issuers That Organize Independent Securities Administration Through the eBAE Next Generation Reporting System at the KSEI

Enforcement Date: 9 February 2023

Summary:

• This Decree specifically regulates the utilization of the eBAE Next Generation (“eBAE-NG”) reporting system in relation to the following types of reports: 1) Reports of the Securities Administration Division; 2) Reports of Securities Issuers that organize independent securities administration (“Issuers”); and/or 3) Other data reports, as required by the Financial Services Authority (Otoritas Jasa Keuangan/OJK) in accordance with the applicable laws and regulations.
• Any electronic reporting that is submitted through the PT Kostudian Sentral Efek Indonesia (KSEI) system should be completed in line with the instructions set out on the eBAE-NG page of the eBAE-NG Reporting User Guidelines.

 

17. Decree of the Board of Directors of PT Kliring Penjaminan Efek Indonesia No. KEP-016/DIR/KPEI/0223 on the Policy for the Reduction in Triparty Repo Facilities Utilization Fees

Enforcement Date: 1 January 2023

Summary:

• Reductions in triparty repo facilities utilization fees (“Reductions”) should be implemented by calculating the value of the ongoing monthly repo transactions (“Transactions”) in line with the following provisions: 1) If a Transaction is still ongoing until the next month: the Transaction value should refer to the purchased price; 2) If a Transaction is still ongoing until the next month and a trade adjustment has been made: the Transaction value should refer to the purchased price stipulated in the most recent contract; or 3) If a Transaction is concluded during the following month: the Transaction value should refer to the purchase price on the relevant repurchase date.
• The above Reduction has been set at 50% of the figures set out under Article XII.1 of Rule X-2 as the Appendix to Decree of the Board of Directors of KPEI No. Kep-032/DIR/KPEI/0219 on Third-Party Repo Facilities. However, aside from these new provisions, other already-existing provisions remain applicable and bind all triparty repo participants.

 

18. Draft Regulation of the Financial Services Authority on Repurchases of Shares Issued by Publicly-Traded Companies

Enforcement Date: -

Summary:

• The draft regulation on Buybacks of Shares Issued by Public Companies (“Draft Regulation”) states that the sources of any funds that will be used to implement share buybacks should be included in the relevant information disclosures. Said sources of funds are required to: 1) Not significantly affect a public company’s financial ability to meet its maturing obligations; and 2) Utilize internal public company funds.
• The Draft Regulation states that share buybacks can be transferred through the following schemes: 1) Sold either through the stock exchange or outside the stock exchange; 2) Withdrawn by means of capital reduction; 3) Implementation of share ownership programs by employees and/or directors and boards of commissioners; 4) Implementation of payment/settlement of a particular transaction; 5) Implementation of the conversion of convertible debt securities that have been issued; 6) Proportionate distribution of repurchased shares to shareholders; and/or 7) Other methods that have been granted OJK approvals.
• The Draft Regulation is currently undergoing a process of internal deliberation at the OJK and may thus be subject to further changes. Moreover, inputs from financial services business actors and the general public may be submitted until a deadline of 21 April 2023 to the following internal OJK parties: 1) [email protected]; and 2) [email protected].
• For more information, see ILB No. 4570.

 

19. Draft Regulation of PT Bursa Efek Indonesia No. I-K of 2023 on the Listing of Asset-Backed Securities in the Form of Collective Investment Contracts

Enforcement Date: -

Summary:

• Broadly speaking, the Draft Regulation contains eight chapters that address the following matters: 1) Definition; 2) General provisions; 3) Listing requirements; 4) Listing procedures; 5) Listing fee; 6) Reporting obligation; 7) Sanctions; and 8) Delisting.
• Applications for the listing of Asset-Backed Securities (Efek Beragun Aset – “EBA”) in the form of collective investment contracts (Kontrak Investasi Kolektif – “KIK”) (collectively referred to as “KIK-EBA”) should be submitted by the relevant investment managers. The Indonesian Stock Exchange (“Exchange”) has the authority to approve or reject applications for KIK-EBA listings after it has reviewed the relevant statements and documents, as submitted by investment managers themselves and also as obtained by the Exchange. Said reviews should not only assess formal aspects but should also take the substance of the requirements into account.
• Any KIK-EBA that will be listed on the Exchange must fulfill the following requirements: 1) The relevant registration statement, as submitted to the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”), must have become effective; 2) Initial KIK-EBA financial statements must have been audited by an accountant registered with the OJK and must also feature the relevant accountant’s opinion; and 3) Must have secured a KIK-EBA rating which is included in the criteria for the top four investment grades from a securities rating agency registered with the OJK.

 

20. Draft Regulation of PT Bursa Efek Indonesia on The Listing of Mutual Fund Participation Units in the Form of Collective Investment Contracts for Which Participation Units Are Traded Through the Exchange

Enforcement Date: -

Summary:

• The Draft Regulation will adjust the provisions that apply to listings of mutual funds that take the form of Collective Investment Contract (Kontrak Investasi Kolektif – “KIK”) participation units (“Units”) on the BEI (“Listings”), as currently addressed under Rule No. I-C, which can be found under the Appendix to Decree of the Board of Directors of PT Bursa Efek Jakarta No. KEP-310/BEJ/12-2006 (“Rule I-C”).
• At its core, the Units that are addressed under the Draft Regulation refer to Units that are traded through the BEI and which adhere to Regulation of the Financial Services Authority (Otoritas Jasa Keuangan - “OJK”) No. 49/POJK.04/2015. While the majority of the sections that feature under Rule I-C will not be altered, the Draft Regulation is set to introduce a number of new sections containing provisions that apply to Listings when it ultimately enters into force, including: 1) General provisions; 2) Suspensions; and 3) Profit distribution schedule.
• In terms of the applicable Listings procedures, the Draft Regulation is set to oblige investment managers (“Managers”) to first submit a preliminary Listings agreement application to the BEI, which should then be followed up by the settlement of a registration fee of Rp. 10 million. This fee will subsequently be deducted from the initial Listings fee once a Listings application has been approved. Moreover, as an additional document that is required during Listings applications, the Draft Regulation will also state that managers should submit KIK that have been drafted as notarial deeds by notaries that have been recognized by the OJK.

 

Energy

21. Regulation of the Government No. 4 of 2023 on the Collection of Certain Goods and Services Tax on Electricity

Enforcement Date: 10 January 2023

Summary:

• Certain Goods and Services Tax (Pajak Barang dan Jasa Tertentu – “PBJT”) on electricity are to be stipulated under local regulations, which should feature provisions that address the following matters at the least: 1) Types, objects, subjects and taxpayers; 2) Tax base; 3) Tax rates; 4) Payable tax period; and 5) Tax collection areas.
• PBJT objects for electrical power include the consumption of electrical power, specifically the use of electrical power by end users. However, the following types of electrical power consumption have been exempted from this classification: 1) Consumption of electrical power undertaken by government agencies, regional governments and other state administrators; 2) Consumption of electrical power in places used by embassies, consulates and foreign representatives based on the principle of reciprocity; 3) Consumption of electrical power by houses of worship, nursing homes, orphanages and other similar social institutions; 4) Consumption of self-generated electrical power with certain capacities that do not require permission from the relevant technical agency; and 5) Consumption of other types of electrical power, as regulated under relevant local regulations.
• The PBJT tariff for electrical power is set at a maximum of 10%. Moreover, PBJT electrical power tariffs for: 1) The consumption of electrical power from other sources by industry and by oil and natural gas mining operations has been set at a maximum of 3%; and 2) The consumption of self-generated electrical power has been set at a maximum of 1.5%.
• Regional governments should adjust their local regulations on the collection of street-lighting tax in accordance with Regulation 4/2023 through the preparation of local regulations on local taxes and levies by no later than 5 January 2024.
• For more information, see ILB No. 4566.

 

22. Regulation of the Government No. 11 of 2023 on Additional Concurrent Government Affairs for the Energy and Mineral Resources Sector Within the New Renewable Energy Subsector

Enforcement Date: 26 January 2023

Summary:

• Originally, Law No. 23 of 2014 on Regional Government, as amended several times, most recently through the issuance of Regulation of the Government in Lieu of Law No. 2 of 2022 on Job Creation (collectively referred to as “Law 23/2014”), stated that the renewable energy subsector, as a part of the energy and mineral resources sector (“Renewable Energy”), was the joint responsibility of both the central and regional governments (“Concurrent Authorities”).
• However, the government has now decided to introduce several new Concurrent Authorities that relate to Renewable Energy in addition to those originally set out under Law 23/2014 through the issuance of this Regulation, which has now added  seven new matters that relate to the central government’s portion of the overall authority over Renewable Energy.
•  The said matters including: 1) Provision of recommendations in relation to geothermal business activities for direct use that are implemented within certain areas; 2) Management of interprovincial biomass and/or biogas (collectively referred to as “Bio-Commodities”); 3) Management of the utilization of interprovincial Bio-Commodities as fuel; and 4) Management of various forms of Renewable Energy; 5) Management of energy conservation (“Conservation”) through business licenses issued by the central government. The above-described authorities will be included as part of the forthcoming National General Energy Plan (Rencana Umum Energi Nasional/RUEN).
• This Regulation has also now added six additional authorities of provincial governments that relate to their overall authorityy over Renewable Energy, which include the following: 1) Management of Bio-Commodities within the relevant provinces; 2) Management of the utilization of intraprovincial Bio-Commodities as fuel; 3) Management of various forms of Renewable Energy within the relevant provinces; 4) Management of Conservation through business licenses that are issued by provincial governments; and 5) Implementation of Conservation through facilities and infrastructure that are managed by regional apparatuses within the energy and mineral resources sector. The above-described authorities will be included as part of the forthcoming Provincial General Energy Plan (Rencana Umum Energi Daerah - Provinsi/RUED-P).

 

23. Regulation of the Minister of Energy and Mineral Resources No. 1 of 2023 on the Provision of Electrical Charging Infrastructure for Battery-Powered Electric Motorized Vehicles

Enforcement Date: 13 January 2023

Summary:

• Charging system technologies that are specifically available at Public Electric Vehicle Charging Stations (Stasiun Pengisian Kendaraan Kendaraan Listrik Umum – “SPKLU”) for vehicles with four or more wheels now include: 1) Slow charging (up to 7 kilowatts); 2) Medium-duration charging (7 kilowatts - 22 kilowatts); 3) Fast charging (22 kilowatts - 50 kilowatts); and 4) Ultrafast charging (over 50 kilowatts).
• SPKLU business entities are required to provide SPKLU at one or more of the following locations in accordance with the relevant charging: 1) Settlements; 2) Offices; 3) Malls and other shopping centers; 4) Arterial roads; 5) Highway rest areas; 6) Public refueling stations (gas stations); and 7) Parking lots or other open areas.
• SPKLU business entities and battery exchange facilities comprise Public Electric Vehicle Battery Exchange Stations (Stasiun Penukaran Baterai Kendaraan Listrik Umum – “SPBKLU”) business entities, which are required to organize online applications.
• For more information, see ILB No. 4565.

 

24. Decree of the Minister of Energy and Mineral Resources No. 14.K/TL.04/MEM/L/2023 on First Phase Technical Approvals of the Greenhouse Gas Emissions Threshold for Coal-Fired Power Plants Connected to PT Perusahaan Listrik Negara

Enforcement Date: 13 January 2023

Summary:

• The first phase of technical approvals of the greenhouse gas emissions threshold for coal-fired power plants that are connected to PT Perusahaan Listrik Negara (“PT PLN”) (collectively referred to as “Technical Approvals”) will run from 2023 - 2024 in line with details that are set out under the appendix to this decree.
• It should be noted that in an effort to achieve the nationally determined contribution target, the Minister of Energy and Mineral Resources may ultimately tighten the Technical Approval requirements for coal-fired power plants by adjusting the timeframe for the commencement of the said Technical Approvals. This adjustment may be made based on an evaluation of the organization of carbon economic value within the power plant subsector for coal-fired power plants.

 

25. Decree of the Minister of Energy and Mineral Resources No. 23.K/MB.01/MEM.B/2023 on Calculation Formula for Compensation for Data and Information for Mining Business License Areas and Special Mining Business Licenses

Enforcement Date: 27 January 2023

Summary:

• The Decree has made several adjustments to the coefficient and various aspects of the calculation formulas that apply in relation to compensation pricing for Mining Business License Areas (Wilayah Izin Usaha Pertambangan – “WIUP”) and Special WIUP (“WIUPK”) data and information (collectively referred to as “Formulas”), including the following: 1) The scope of data areas now encompasses new minerals (e.g. sedimentary and alluvial metal minerals, as well as asphalt), while the influence coefficient (C) now ranges from a 1.0 - 2.0 point coefficient; 2) Exploration areas (A) are now classified into three categories with prices (H) that range from Rp. 1.5 million to 12.5 million; and 3) The maturity area (M) and data valuation (V), along with their relevant coefficient values, have also now been adjusted.
• It should be noted that any WIUP and WIUP data and information compensation prices that were determined based on the Formulas featured under Decree of the Minister of Energy and Mineral Resources No. 224.K/MB.01/MEM.B/2022 will remain applicable, provided that the relevant determined compensation prices are not revised.

 

26. Decree of the Minister of Energy and Mineral Resources No. 27.K/MB.01/MEM.B/2023 of 2023 on Reference Prices for Metal Minerals and Coal for February 2023

Enforcement Date: 10 February 2023

Summary:

• The reference prices for metal minerals for February 2023 break down as follows: 1) Nickel: US$ 28,444.50/dmt; 2) Cobalt: US$ 49,932.50/dmt; 3) Lead: US$ 2,254.78/dmt; 4) Zinc: US$ 3,135.63/dmt; 5) Aluminum: US$ 2,402.53/dmt; 6) Copper: US$ 8,671.95/dmt; 7) Gold as the following mineral: US$ 1,862.54/troy ounce; 8) Silver as the following mineral: US$ 23.84/troy ounce; 9) Tin Ingots  - Pb 300, Pb 200, Pb 100, Pb050 and 4NINE: ICDX and JFX settlement prices on the relevant trading day; 10) Gold: LBMA Gold PM Fix on the relevant trading day; 11) Silver: LBMA Silver PM Fix on the relevant trading day; 12) Manganese: US$ 4.08/dmt; 13) Laterit/Hematit/Magnetic Iron Ore: US$ 1.73/dmt; 14) Chrome Ore: US$ 4.35/dmt; 15) Ilmenite Concentrate: US$ 8.25/dmt; and 16) US$ Titanium Concentrate: 14.74/dmt.
• Meanwhile, the reference price for coal for February 2023 has been set at US$ 277.05/ton.

 

27. Decree of the Minister of Energy and Mineral Resources No. 47.K/MG.03/DJM/2023 on Indonesian Raw Oil Prices for January 2023

Enforcement Date: 2 February 2023

Summary:

• Essentially, the Decree divides the prices for Main Raw Oil and Other Raw Oil. Details of the prices for Main Raw Oil for January 2023 has been summarized in the following Daily Updates: “Govt. Sets Raw Oil Prices for January 2023”.
• Meanwhile, prices for Other Raw Oil have been divided up into two categories, specifically: permanent pricing, which comprises 51 oil types, and temporary pricing, which comprises 40 oil types. Finally, the average Indonesian Raw Oil price has been set at US$ 78.54/barrel.

 

28. Letter of the Director-General of Oil and Gas No. B-675/MG.03/DMB/2023 on the Completion of Company Data and Product Data for Migas SKUP (Goods) Applications

Enforcement Date: 23 January 2023

Summary:

• The APDN Migas Version-1 application for oil-and-gas supporting industries, which was previously accessible through the following website: http://203.189.89.7/apdn/, will soon be deactivated and will be thus inaccessible to the general public from 1 March 2023 onwards. However, its replacement, Version 2.00 of the APDN Migas application, will be accessible through the following website: https://www.esdm.go.id/skup-migas.
• Moroeover, any companies that have not yet updated their data through the SKUP Migas application will not be listed on Version 2.00 of the APDN Migas application. In this regard, the appendix to this letter sets out the applicable guidelines for the filling out of SKUP (goods) Migas applications.

 

Environment

29. Regulation of the Minister of Health No. 2 of 2023 on Implementing Guidelines of Regulation of the Government No. 66 of 2014 on Environmental Health

Enforcement Date: 12 January 2023

Summary:

• Environmental Health Quality Standards (Standar Baku Mutu Kesehatan Lingkungan – “SBMKL facilities”) are determined for the media of water, air, soil, food, facilities and buildings, and vectors and disease-carrying animals that are located within the following environments: 1) Settlements; 2) Workplaces; 3) Recreation areas; and 4) Public places and facilities.
• All healthcare are required to process the waste that they produce, as well as to carry out waste management activities. Said waste encompasses: 1) Medical waste in the form of solid waste; 2) Non-medical or domestic waste; 3) Medical waste in the form of wastewater that is generated through the activities of healthcare facilities; 4) Medical waste in the form of gaseous waste that is generated through the activities of healthcare facilities; and 5) Non-Hazardous and Toxic Material (Bahan Berbahaya dan Beracun - “B3”) waste that is generated through the activities of healthcare facilities.
• All managers, organizers and persons in charge of residential areas, workplaces, recreational areas and public places and facilities are required to control vectors and disease-carrying animals in coordination with district/city health offices or health quarantine agencies operating at seaports, airports and land border crossing posts.
• For more information, see ILB No. 4581.

 

General Financial Services

30. Regulation of the Government No. 5 of 2023 on the Investigation of Criminal Acts Within the Financial Services Sector

Enforcement Date: 30 January 2023

Summary:

• One of the major changes introduced under Law No. 4 of 2023 on the Development and Strengthening of the Financial Sector and one of the reasons behind the issuance of this Regulation is that the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has now been determined as one of the investigators of criminal acts that occur within the financial services sector (“Investigators”). Investigators encompass: 1) Investigating officials working for the Indonesian National Police Force (Kepolisian Negara Republik Indonesia – “Polri”); and 2) OJK Investigators, who comprise: a) Official Polri Investigators assigned to the OJK; b) Certain civil servants officials; and c) Certain employees.
• OJK Investigators are authorized and responsible for various matters, including: 1) Receiving reports, notifications and complaints from individuals that address criminal acts that are alleged to have taken place within the financial services sector (tindak pidana di sektor jasa keuangan - “Criminal Acts Within the SJK”); 2) Summonses, examinations and requests for descriptions and evidence from any parties related to Criminal Acts Within the SJK; 3) Undertaking of investigations into criminal acts of money laundering.
• After coordinating with Polri, the OJK will determine whether or not an investigation will be carried out, as well as the suspension of investigations. Investigations encompass the following processes: 1) Preliminary investigation; and 2) Commencement of investigation.
• For more information, see ILB No. 4567.

 

31. Regulation of the Minister of Finance No. 8/PMK.06/2023 on the Implementation of the Know-Your-Service-Users Principle by Auction Organizers

Enforcement Date: 3 May 2023

Summary:

• The offices of Class II auction officials and auction houses must implement the Know-You-Service-Users Principle (Prinsip Mengenali Pengguna Jasa – “PMPJ”) in a consistent and sustainable manner, as well as formulate and establish policies, procedures and internal controls within the context of implementing the PMPJ.
• In terms of the consistent and sustainable implementation of the PMPJ, the offices of Class II auction officials and auction houses, as auction organizers, may request the assistance of third parties.
• Auction houses that fill the role of auction organizers and that comprise financial groups are required to implement the PMPJ across all office networks and their subsidiaries, both domestically and abroad, as determined by the relevant auction houses.
• For more information, see ILB No. 4579.

 

Infrastructure & Construction Services

32. Regulation of the Minister of Public Works and Public Housing No. 1 of 2023 on Guidelines for the Supervision of the Organization of Construction Services, as Implemented by Provincial, Regency and City-Level Governments

Enforcement Date: 13 January 2023

Summary:

• As provincial, regency and city-level governments (collectively referred to as “Regional Governments”) are authorized to supervise the organization of construction services, this regulation introduces a set of guidelines for use by Regional Governments during the implementation of any such matters within their jurisdictions (“Guidelines”). Broadly speaking, the Guidelines address the following matters: 1) Authorities; 2) Classification of supervision; 3) Supervisors; 4) Supervision procedures; 5) Reporting and follow-up measures to the issuance of recommendations; 6) Supervision of developments; 7) Funding; and 8) Administrative sanctions and their procedures.
• The supervision set out under this Regulation encompasses the following forms: 1) Routine supervision (i.e. carried out through the examination of submitted reports that address construction activities); and 2) Incidental supervision (i.e. carried out upon discoveries of certain conditions, based on received complaints and/or based on routine supervision recommendations).

 

Land and Property

33. Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 1 of 2023 on the Organization of Land and Space Thematic Geospatial Information

Enforcement Date: 20 January 2023

Summary:

• Thematic Geospatial Information (Informasi Geospasial Tematik – “IGT”) for land and space (“Land and Space IGT”) comprises two main themes, including: 1) Land (which has 11 available sub-themes); and 2) Space (which has three available sub-themes).
• The organization of Land and Space IGT comprises the following activities and phases: 1) IGT Production (i.e. collection and processing); 2) IGT Management (i.e. storage and security); and 3) IGT Distribution (i.e. distribution and utilization). Each of said phases should be implemented by their respective units.
• Land and Space IGT must be carried out in accordance with applicable standards that have been determined by the relevant unit and should adhere to the standards set by and the involvement of relevant government ministries and/or agencies.
• For more information, see ILB No. 4576.

 

Manufacturing and Industry

34. Regulation of the Minister of Industry No. 4 of 2023 on Procedures for the Granting of Domestic Product Utilization Awards

Enforcement Date: 6 February 2023

 Summary:

• The Domestic Product (“Products”) Utilization Awards (“Awards”) are organized annually by the Minister of Industry (“Minister”) and feature awards that are won by eligible parties that comprise users (e.g. government entities and certain business entities) and manufacturers (ranging from small-scale to large-scale industries) that provide Products during procurements of goods/services by the aforementioned users. Awards are determined through Product Utilization Assessments (“Assessments”) that cover periods of one fiscal year.
• Assessments are carried out in two phases: Initial Assessment and Final Assessment. Meanwhile, the following five factors are evaluated during Assessments: 1) Compliance with Product utilization obligations in accordance with relevant laws and regulations; 2) Procurement rates for products for which Domestic Component Level (Tingkat Komponen Dalam Negeri – “TKDN”) certificates (“Certificates”) have been secured and for Products; 3) Ownership of the TKDN values of products; 4) Utilization of products from the aforementioned manufacturers during procurements; and 5) Implementation of Product utilization campaigns. The results of Assessments will then serve as the basis upon which the Minister will determine the recipients of Awards.
• For more information, see ILB No. 4577.

 

Natural Resources

35. Regulation of the Minister of Marine Affairs and Fisheries No. 4 of 2023 on Fish Feed

Enforcement Date: 30 January 2023

Summary:

• Business actors that provide fish feed through domestic production activities are required to implement the principles of Good Manufacturing Methods for Fish Feed (Cara Pembuatan Pakan Ikan Yang Baik – “CPPIB”), which encompass the following aspects: 1) Location, buildings and layouts; 2) Sanitation and hygiene; 3) Procurement, preparation and storage of raw materials; 4) Production; 5) Packaging and labeling; 6) Quality control; 7) Storage and distribution; 8) Competence of personnel; 9) Monitoring; 10) Handling of complaints and the return of distributed fish feed; 11) Documentation; 12) Availability of facilities and infrastructure; and 13) Environmental management.
• Prior to distribution, business actors must secure Registration Certificates for Fish Feed (“Registration Certificates”), as issued by the Minister of Marine Affairs and Fisheries. Registration Certificates are issued for all purposes, types and brands of fish feed. It should be noted that the obligation to secure Registration Certificates exempts fish feed that meets the following criteria: 1) Provided by a government or private agency for research purposes; 2) Unprocessed or processed through the application of a simple method (i.e. a method that doesn’t involve the use of machinery or chemical substances, while the quality of the resulting product is inconsistent); and/or 3) Provided by business actors for their own personal fish maintenance without the intention to engage in any distribution.
• The Ministry of Marine Affairs and Fisheries (“Ministry”) provides a licensing service that encompasses the following areas: 1) Recommendations for imports of fish feed and/or raw materials for fish feed; 2) Issuance of CPPIB Certificates; and 3) Issuance of Registration Certificates.

 

36. Regulation of the Minister of Marine Affairs and Fisheries No. 5 of 2023 on Requirements and Procedures for the Issuance of Technical Recommendations for the Importation of Prospective Broodstock, Fish Seeds and/or Pearl Nuclei into the Territory of the Republic of Indonesia

Enforcement Date: 30 January 2023

Summary:

• Any parties that are planning to import prospective broodstock, fish seeds and/or pearl nuclei into Indonesian territory (“Imports”) are required to secure import permits, which are issued after relevant technical recommendations have first been issued by the Minister.
• Moreover, any such party must also apply for a technical recommendation for Imports of prospective broodstock and/or fish seeds through the national commodity balance system. Said application should be accompanied by a letter of risk analysis results and/or report on the surveillance and monitoring of fish disease control, in accordance with the relevant laws and regulations.
• In terms of Imports of pearl nuclei, any application for a technical recommendation should be accompanied by data on the quality of said imported pearl nuclei. The relevant technical recommendation will then be issued by the Minister after they have taken into account the production capacities of farming business units at the least.

 

37. Regulation of the Minister of Marine Affairs and Fisheries No. 6 of 2023 on the Preparation of the Fisheries Commodity Balance

Enforcement Date: 30 January 2023

Summary:

• The Fisheries Commodity Balance is prepared by the Minister of Marine Affairs and Fisheries (“Minister”) and encompasses the preparation and stipulation of both a supply plan and a demand plan for the following commodities (collectively referred to as “Commodities”): 1) Fisheries products; 2) Pearls; 3) Potential breeders; 4) Breeders; 5) Fish seeds; and 6) Cores of pearl (inti mutiara).
• The Fisheries Commodity Balance should incorporate accurate, detailed and complete information and data relating to the supply and demand of Commodities. In order to support the provision of said information, business actors should submit their demand plans for the next year to the Ministry through the National Commodity Balance System. The content of said demand plans, as submitted by business actors, may differ for different Commodities. For example, demand plans for fisheries products should contain information on the following areas at the least: 1) Special data on warehouse capacities, worker numbers and the capacities of vehicles; 2) Production; 3) Demand for Commodities; 4) Distribution; and 5) Required documents, which encompass Certificates of Good Manufacturing Practice and Licenses for Fish Capture.

 

38. Regulation of the Minister of Agriculture No. 8 of 2023 on Technical Guidelines for the Utilization of Non-Physical Special Allocation Funds in the Form of Food Security and Agricultural Funds for the 2023 Fiscal Year

Enforcement Date: 26 January 2023

Summary:

• Food security and agricultural funds should be used for the following purposes: 1) Social empowerment in the form of the fulfillment of food requirements through cultivated agricultural products that are produced on community land; 2) The updating of strategic agricultural commodity data at the subdistrict level (kecamatan); and 3) Facilities for the implementation of animal health services.
• The use of food security and agricultural funds involves the following stages: 1) Planning of activities; 2) Implementation of activities; 3) Distribution and management; 4) Reporting; and 5) Guidance.

 

39. Regulation of the Minister of Agriculture No. 17 of 2023  on Procedures for the Monitoring of the Trafficking of Animals, Animal Products and Other Animal Disease Carrying Media Within the Territory of Indonesia

Enforcement Date: 2 February 2023

Summary:

• Animals, animal products and other animal disease-carrying media (hewan, produk hewan dan media pembawa penyakit hewan lainnya – “HPM”) can be trafficked between regions or areas within single islands, within groups of islands and between islands that are located within the territory of Indonesia. Said trafficking should be carried out based on the animal disease statuses in the relevant areas (i.e. free areas, suspected areas, infected areas and outbreak areas) and after various technical requirements relating to animal health have first been fulfilled.
• Technical requirements for animal health comprise two matters: 1) The securing of veterinary certification from a provincial veterinary authority or a district/city veterinary authority from which animals are being sent; and 2) The fulfillment of animal health requirements determined by the destination area.
• In order to secure a veterinary certificate, relevant persons should submit an application through the Online Single Submission (OSS) system. This application will then be verified by provincial veterinary authority officials or district/city veterinary authority officials in the areas from which animals are being sent before being made available through the National Animal Health Information System (Sistem Informasi Kesehatan Hewan Nasional – “iSIKHNAS”).

 

40. Decree of the Minster of Trade No. 146 of 2023 on Reference Prices for Crude Palm Oil Subject to Export Duty and Service Tariffs at the General Services Agency of the Palm Oil Plantation Funds Management Agency

Enforcement Date: 16 February 2023

Summary:

• Stipulates a reference price for Crude Palm Oil Subject to Export Duty and Service Tariffs at the General Services Agency of the Palm Oil Plantation Funds Management Agency (collectively referred to as “CPO”) of US$ 880.03/MT.
• The reference price for CPO will be applicable from 16 February 2023 - 28 February 2023.

 

41. Decree of the Minister of Marine Affairs and Fisheries No. 16 of 2023 on Review Results for Sectoral Electronic Catalog Products at the Seed, Prospective Adult Fish and Adult Fish Products Showcase

Enforcement Date: 19 January 2023

Summary:

• Determines review results for sectoral electronic catalog products at the Seed, Prospective Adult Fish and Adult Fish Products Showcase, as detailed under the Appendix to this decree. Said review results are to be used to create an electronic goods/services product catalog showcase application.

 

42. Decree of the Minister of Marine Affairs and Fisheries No. 17 of 2023 on Review Results for Sectoral Electronic Catalog Products at the Floating Dock Products Showcase

Enforcement Date: 19 January 2023

Summary:

• Determines review results for sectoral electronic catalog products at the Floating Dock Products Showcase, as detailed under the Appendix to this decree. Said review results are to be used to create an electronic goods/services product catalog showcase application.

 

43. Decree of the Head of the National Food Agency No. 01/KS.02.02/K/I/2023 on 2023 Guidelines for the Stabilization of Rice Stocks and Prices at the Consumer Level

Enforcement Date: 4 January 2023

Summary:

• Determines a set of guidelines for the stabilization of rice stocks and prices (Stabilisasi Pasokan dan Harga Pangan – “SPHP”) at the consumer level during 2023 through the utilization of Government Rice Reserves and direct purchases that are completed at the Government Purchase Price, flexible pricing, commercial stock transfers and foreign procurements that are completed through government directives.
• The implementation of the rice SPHP at the consumer level during 2023, either in bulk form in minimum amounts of 50 kg or other sizes that are released from BULOG warehouses to areas across Indonesia must adhere to the following pricing structures: 1) Java, Lampung, South Sumatra, Bali, West Nusa Tenggara and Sulawesi: Rp. 8,300/kg; 2) Sumatra (except for Lampung and South Sumatra), East Nusa Tenggara and Borneo: Rp. 8,600/kg; and 3) Maluku and Papua: Rp. 8,900/kg.
• Furthermore, the implementation of the rice SPHP should take distribution costs and other costs into consideration, as well as the sales price at the end consumer level, which may be set at maximums that are in accordance with the relevant laws and regulations. 

 

Non-Banking Financial Services

44. Draft Regulation of the Financial Services Authority on Business Licensing and Institutional Aspects of Insurance Broker Companies, Reinsurance Broker Companies and Insurance Loss Appraisal Companies

Enforcement Date: -

Summary:

• The Draft Regulation on Business Licensing and Institutional Aspects of Insurance Broker Companies, Reinsurance Broker Companies and Insurance Loss Appraiser Companies (“Draft Regulation”) addresses various improvements to the current legal framework, including matters relating to foreign ownership, reporting and identification, as well as capital requirements.
• Insurance broker companies that provided digital insurance brokerage services prior to the promulgation of this Draft Regulation and that only possess equity in amounts that are below the required levels are obliged to make the requisite adjustments prior to 31 December 2025.
• The Draft Regulation is currently undergoing a process of internal deliberation at the OJK and may thus be subject to further changes. Moreover, any inputs from financial services business actors and the general public may be submitted to the following internal OJK parties until a deadline of 3 March 2023: 1) Vastunadia ([email protected]); and 2) Yuliana ([email protected]).
• For more information, see ILB No. 4575.

 

Pharmaceutical, Healthcare and Food and Drug Standards

45. Regulation of the Minister of Health No. 1 of 2023 on the Organization of Hospital Business Activities in Special Economic Areas

Enforcement Date: 11 January 2023

Summary:

• Hospitals may be established through foreign or domestic investments in Special Economic Areas (Kawasan Ekonomi Khusus – “KEK”). The types of hospitals that may be established within KEK encompass general hospitals and/or special hospitals. In order to organize hospital-related business activities within KEK, the following standards must be met: 1) General standards, which encompass hospital legal documentation, hospital profiles and documents outlining a commitment to secure accreditation; and 2) Special standards, which encompass feasibility studies, detailed engineering designs, master plans of hospitals, locations and land, buildings, facilities, tools, availability of hospital beds and human resources.
• The organization of healthcare services by hospitals established within KEK areas encompasses the following activities: 1) Medical and medical supporting services; 2) Nursing and midwifery services; 3) Pharmaceutical services; and 4) Other supporting services. It should be noted that any pharmaceuticals and medicines that are provided by hospitals that are located within KEK should be imported through the use of the special KEK mechanism and must satisfy the following criteria in accordance with the relevant applicable laws and regulations: 1) Analysis of supervision results; and 2) Import approvals.
• The licensing process for hospitals that are located within KEK involves the following procedure: 1) Submission of registration through the One Single Submission (“OSS”) System in order to secure a Business License Number (Nomor Induk Berusaha – “NIB”); 2) Upon securing an NIB, hospital organizers must then complete the relevant preparations in order to satisfy the above-mentioned standards within a maximum period of two years; 3) Upon compliance with these standards, a licensing request should be submitted to the KEK administrator through the OSS enclosing the required documents, as listed under the appendix to this regulation; 4) The KEK administrator will then complete a field verification within a maximum of 20 working days; 5) Issuance of license through the OSS system.

 

46. Regulation of the Minister of Health No. 5 of 2023 on Narcotics, Psychotropics and Pharmaceutical Precursors

Enforcement Date: 17 January 2023

Summary:

• The scope of this regulation encompasses the following matters that relate to psychotropics and pharmaceutical precursors: 1) Annual needs plans; 2) Imports; 3) Repackaging in transit; 4) Distribution, storage and disposal; 5) Labeling and publication; 6) Security and supervision of confiscated goods; 7) Standards for research and/or scientific and technological developments in relation to narcotics that are used for healthcare purposes; 8) Potential tools for the procurement and utilization of pharmaceutical precursors; 9) Recording and reporting; 10) Guidance and supervision; and 11) Procedures for the imposition of administrative sanctions.
• Psychotropics and pharmaceutical precursors that take the form of ready-to-consume medicines may only be distributed based on an Order Letter issued by a pharmacist in charge or by the head of a scientific agency stating the following information: 1) Name and/or position of the pharmacist/head of scientific agency; 2) Name, address and phone number of the relevant narcotics distributor; 3) Names, types and potentials of the relevant drugs and their amounts in numbers and letters; 4) Name and address of the relevant user facilities; and 5) Signature, stamp and SIPA/NIP number of the relevant pharmacist/head of scientific agency.
• All relevant healthcare and/or research facilities (e.g. pharmacies, hospitals, scientific agencies, drug stores) are required to record all activities that involve the entry, exit and prevention of the misuse of psychotropics and pharmaceutical precursors under their authority. Said records should include the following information: 1) Names, types and potentials of the relevant psychotropics and pharmaceutical precursors; 2) Stock number; 3) Date, document number and goods resource; 4) Received amounts; 5) Date, document number and purpose of the relevant distribution/handover; 6) Amount of goods being distributed/handed over; 7) Batch number and expiration date; and 8) Signature or identity of the relevant appointed officer.

 

47. Circular of the Minister of Health No. HK.02.01/D/0639/2023 on the Organization of Business Licensing for the Healthcare Services Sector

Enforcement Date: 1 February 2023

Summary:

• The Circular has been issued in terms of addressing the ongoing delays in the issuance of business licenses within the healthcare sector that are resulting from lengthy field verifications.
• In this regard, the Heads of Health Departments at the regional level must ensure that all business licenses that are to be issued pending the results of field verifications should be issued before 18 February 2023.
• Basic requirements in the form of the securing of building approvals and feasibility certification for healthcare service facilities must still be fulfilled, however, the processing of certain documents and field verifications may now be postponed until after the issuance of licenses. Furthermore, it should be noted that environmental permits for puskesmas and pratama clinics should take the form of Statement Letters on the Ability to Manage and Monitor the Environment.
• It should also be noted that all Heads of Health Departments at the regional level must ensure the advancement of the business licensing process within their respective regions.

 

48. Decree of the Minister of Health No. HK.01.07/MENKES/13/2023 on Standards for Professional Pharmacists

Enforcement Date: 6 January 2023

Summary:

• Standards should be implemented within the pharmaceutical profession and encompass competence standards and an ethical code that should be used for the guidance of pharmacists so that they can run measured, standardized and high-quality pharmaceutical practices that encompass pharmaceutical production, distribution and services facilities. 
• Pharmacists’ competency standards comprise six areas of competency, which are arranged based on the roles, duties and responsibilities of pharmacists and which refer to the four competency domains of the Global Competency Framework, which encompass the following: 1) Professionalism; 2) Introspection and self-development; 3) Effective communication; 4) Scientific foundations of pharmaceutical sciences, biomedical sciences, humanities sciences and public health sciences; 5) Pharmacists’ skills; and 6) The management of pharmaceutical practices.
• The appendix also sets out a list of the problems which might be faced by pharmacists during the conducting of their professional practice in the hope that they will learn to be able to handle said problems. Seven types of problems are listed, as follows: 1) Obtaining of drugs by recipients of pharmaceutical services; 2) Drug use by recipients of pharmaceutical services; 3) Drug storage by recipients of pharmaceutical services; 4) Drug disposal by recipients of pharmaceutical services; 5) Problems experienced by individual pharmacists; 6) Problems of pharmacist professionalism within the workplace; and 7) Relationship problems with working partners and other parties.

 

49. Decree of the Minister of Health No. HK.01.07/MENKES/15/2023 on the Administration of Antiviral Medication to Pregnant Women in Order to Prevent the Transmission of Hepatitis B Virus from Mother to Child

Enforcement Date: 6 January 2023

Summary:

• In order to prevent and reduce the risk of Hepatitis B infection being transmitted from mothers to children, pregnant women who have been diagnosed as HBsAg positive are to be given the antiviral medicine Tenofovir Disoproxil Fumarat, with virus content equal to or more than 200.000 IU/mL or Hepatitis B e-Antigen (HBeAg) positive, during the third trimester of pregnancy until one month after birth.
• The abovementioned program is to be implemented by: 1) General practitioners who are trained at first-level healthcare facilities; or 2) Internal medical specialists at advanced referral healthcare facilities; and should be carried out by working teams that are determined by the leaderships of the relevant healthcare facilities.
• However, the abovementioned program should only be implemented by selected hospitals and public healthcare centers (Puskesmas), as specified under the appendix to this regulation, during 2022 and 2023.
• Appointed hospitals and Puskesmas, as referred to above, are responsible for: 1) Implementing the provision of antiviral medication to pregnant women diagnosed with Hepatitis B; 2) Coordinate with authorized officials in relation to the provision of antiviral medication; and 3) Report the implementation of the provision of antiviral medication to pregnant women in order to prevent the transmission of Hepatitis B through the Information System for Hepatitis and Gastrointestinal Infections.

 

50. Circular of the Director-General for the Mitigation and Control of Disease No. SR.01.06/1/153/2023 on the Increase in Early Precautions for Extraordinary Potential Disease and Epidemic Cases

Enforcement Date: 11 January 2023

Summary:

• In order to adjust the monitoring of Extraordinary Cases (Kejadian Luar Biasa – “KLB”) to match the number of cases of serious diseases that are currently being reported across Indonesia, including polio, leptospirosis, measles, dengue fever and diphtheria, the strengthening of surveillance at all healthcare facilities (both government and privately operated) will be performed through: 1) The monitoring of illness data and the number of deaths believed to have been caused by disease KLB/epidemics; 2) Ensuring that all government/private healthcare facilities engage in the monitoring and reporting of illness data and the number of deaths believed to have been caused by disease KLB/epidemics; 3) Ensuring that health offices at the regency/city levels engage in routine weekly monitoring and evaluations.

 

51. Circular of the Director-General of Mitigation and Control of No. PV.04.02/C/412/2023 on the Granting of Disease Medication for Mass Deworming During 2023

Enforcement Date: 26 January 2023

Summary:

• In line with the government’s stated goal of decreasing stunting cases by 14% across the country by 2024 and also to achieve one of the country’s Sustainable Development Goal (SDGs) targets of reducing said cases to zero by 2030, various initiatives will be implemented across Indonesia’s various regencies/cities as follows: 1) Provision of mass deworming medication (pemberian obat pencegahan massal – “POPM”) to children of between 1 – 12 years of age twice a year; 2) Implementation of POPM through initial screenings and examinations of body temperatures; 3) Provision of worming medicine at least 14 days prior to or after the administration of COVID-19 vaccines or other types of vaccines; 4) Administration of deworming examinations for pregnant women; 5) Examination of deworming cases and provision of medication in a selective manner through healthcare facilities; and 6) Provision of deworming POPM through the use of Albendazole in the form of tablets, suspensions and powders (puyer) provided by the Ministry of Health.

 

52. Circular of the Director-General of Health Services No. KU.01.01/IV.4/124/2023 on the Submission of Clinical Indicator Letters for Vertical Hospitals

Enforcement Date: 12 January 2023

Summary:

• Determines various clinical indicators for public and special hospitals within the environment of the Directorate-General of Health Services, including stroke, cancer, heart attack and so forth. Details of these clinical indicators are comprehensively listed in the Appendix to the Circular.

 

53. Circular of the Director-General for Disease Prevention and Control No. SR.03.04/C/132/2023 on Supervision of Health Quarantine on Transportation and for Individuals and Goods from Infected Countries/Regions During the Corona Virus Disease 2019 (COVID-19) Pandemic to Endemic Shift at Ports, Airports and Border-Crossing Posts

Enforcement Date: 10 January 2023

Summary:

• Adjusts certain policies that relate to the implementation of the health quarantine supervision (“Supervision”) of vehicles, individuals and goods that derive from countries/regions that are experiencing Corona Virus Disease 2019 (“COVID-19”) cases at all Indonesian entry points through the issuance of Circular No. SR.03.04/C/132/2023 (“Circular 132/2023”). Previously, these matters were addressed under the now obsolete Circular of the Director-General No. SR.03.04/II/2050/2021.
• Vehicles, including cargo vessels, that specifically come from countries/regions with high levels or newly discovered variants of COVID-19 (“COVID-19 Regions”) may be subject to the imposition of restrictions on the number of persons that may enter or leave said vehicles based on various public health risk factors. In this regard, domestic vehicles will no longer be placed under quarantine status but will remain subject to Supervision.
• All international travelers (Pelaku Perjalanan Luar Negeri – “PPLN”) arriving in Indonesia will remain subject to the examination of their COVID-19 vaccination proof documents. Additionally, PPLN (including those arriving in Indonesia for crew changes) that are arriving from COVID-19 Regions that are still experiencing COVID-19 will be required to take Rapid Diagnostic Test Antigen (“RDT-ag”) tests. Moreover, any vessel crewmembers that wish to board vessels (sign on) that are bound for international destination must present proof of complete vaccination (for foreign citizens) or booster vaccinations (for Indonesian citizens).
• The list of countries that are classified with high levels of COVID-19 cases or newly discovered variants of COVID-19 can be found through the following portal: https://infeksiemerging.kemkes.go.id.

 

54. Circular of the Director-General of Disease Prevention and Control No. HK.02.02/C/380/2023 on Second Booster Doses of Covid-19 Vaccine for the General Public

Enforcement Date: 20 January 2023

Summary:

• Starting from 24 January 2023, second booster doses of Corona Virus Disease 2019 (“COVID-19”) vaccine, as approved by the National Agency of Drug and Food Control (Badan Pengawas Obat dan Makanan/BPOM), may be given to all members of the general public (aged 18 years and over), including healthcare workers and the elderly. The aforementioned second booster vaccinations should be administered at intervals of six months after first vaccination boosters. 
• Second booster doses of COVID-19 vaccine for the general public should be administered at healthcare facilities and/or at COVID-19 vaccination service posts.

 

55. Regulation of the National Agency of Drug and Food Control No. 1 of 2023 on Certification Guidelines for Releases of Vaccine Batches/Lots.

Enforcement Date: 10 January 2023

Summary:

• Every vaccine which is produced and distributed within Indonesian territory is required to secure a distribution license/Emergency Use Authorization (“EUA”) and also a Certificate of Release of Vaccine Batches/Lots (“Certificate”), as issued by the National Agency of Drug and Food Control (Badan Pengawas Obat dan Makanan - “BPOM”). It should be noted that Certificates must also be secured by vaccines that are specifically used during Phase-III Clinical Trials.
• In order to secure a Certificate for a given vaccine that is produced and distributed in Indonesia, an application must be submitted to the Head of BPOM along with the following documents: 1) Application letter for the issuance of a Certificate; 2) Approval letter for a distribution license/EUA; 3) Analysis certificate; 4) Summary batch/lot protocol; 5) Certificate issued by the authority in the location in which the vaccine was approved; 6) Import certificate; and 7) Sampling report. It should be noted that a different set of documents are required for the issuance of Certificates for Phase-III Clinical Trials. 
• Any license holders, clinical trial sponsors and/or contract research organizations that fail to secure Certificates will be subject to the imposition of administrative sanctions by the Head of BPOM in the following forms: 1) Recall of vaccine from distribution; 2) Suspension of clinical trial; and/or 3) Temporary prohibition on distribution.

 

56. Regulation of the National Agency of Drug and Food Control No. 2 of 2023 on Guidelines for Assessments of the Safety and/or Quality of Drug and Drug Ingredients in Relation to Nitrosamine Pollution

Enforcement Date: 10 January 2023

Summary:

• This new regulation has been issued in order to provide a set of guidelines for the evaluation of the safety and/or quality of drugs and drug materials in relation to nitrosamine contamination.
• The new framework states that pharmaceutical industries are required to carry out safety and/or quality evaluations in order to ensure that the nitrosamine contamination threshold complies with the applicable safety and/or quality standard and/or requirements. Said evaluations should be carried out in relation to drugs for which distribution licenses have been applied for and/or drugs for which distribution licenses have already been issued by the Head of National Agency of Drug and Food Control.
• The references provided in the guidelines for the evaluation of drugs address the following aspects: 1) Information regarding nitrosamine contamination and interim daily consumption limits; 2) Development of analysis methods and examples in order to calculate the nitrosamine contamination limit based on maximum daily dosage; and 3) Risk evaluation steps.
• It should also be mentioned that evaluations of drugs must also be carried out in compliance with laws and regulations which address the following matters: 1) Criteria for and the registration of drugs; 2) Good drug manufacturing practices; and/or 3) Withdrawal from circulation and destruction of any drugs that fail to meet the relevant standards and/or requirements relating to safety, benefits, quality and labeling.

 

57. Decree of the National Agency of Drug and Food Control No. 38 of 2023 on the Types of Microorganisms That Can Be Used in Processed Foods

Enforcement Date: 7 February 2023

Summary:

• The following types of microorganisms can be used as raw materials in processed foods: 1) Bacillus coagulans; 2) Bifidobacterium animalis; 3) Bifidobacterium breve; 4) Bifidobacterium lactis; 5) Bifidobacterium longum; 6) Lactobacillus acidophilus; 7) Lactobacillus casei; 8) Lactobacillus fermentum; 9) Lactobacillus lactis; 10) Lactobacillus paracasei; 11) Lactobacillus plantarum; 12) Lactobacillus reuteri; 13) Lactobacillus rhamnosus; 14) Leuconostoc citreum; 15) Lactobacillus delbrueckii subsp. bulgaricus; 16) Streptococcus salivarius subsp. thermophilus.
• Processed food products for which distribution permits were secured prior to the Decree coming into force must be brought into line with the Decree within 30 months of its stipulation. Meanwhile, any processed food products for which distribution permits are currently being applied will continue to be processed in accordance with the existing laws and regulations but must be brought into line with the provisions set under the Decree within 30 months of its stipulation.

 

58. Draft Bill on Health

Enforcement Date: -

Summary:

• The Draft Bill features a total of 478 articles spanning 20 chapters which, when it ultimately enters into force, will amend and repeal nine laws that already apply within the healthcare sector.
• While currently, Law No. 24 of 2011 on the Social Security Agency and its amendment (“Law 24/2011”) mandates that the Social Security Agency (Badan Penyelenggara Jaminan Sosial – “BPJS”) should provide benefits to all participants, the Draft Bill has now lifted several restrictions that relate to this area, as follows: 1) Inpatient treatments should not be restricted in line with any set treatment periods; and 2) Outpatient and/or inpatient care should not be restricted in line with any set BPJS hospital service quotas.
• While Law 24/2011 already addresses healthcare human resources that comprise medical professionals and healthcare workers, the Draft Bill now also encompasses traditional healthcare workers (“Traditional Practitioners”) among its classifications. Traditional Practitioners should at the least have secured diplomas or possess scientifically proven traditional healthcare skills and may work in the following professionals: 1) Traditional Practitioners who work with herbs or potions; 2) Regular Traditional Practitioners; and 3) Healers that use natural ingredients (pengobat).
• For more information, see ILB No. 4571.

 

59. Draft Regulation of the National Agency of Drug and Food Control on Safety and Quality Requirements for Traditional Drugs

Enforcement Date: -

Summary:

• Business actors must ensure the safety and quality of all traditional drugs that are produced, imported and/or distributed within Indonesian territory. As a result, business actors are required to fulfill various safety and quality requirements (“Requirements”) that relate to the following product areas: 1) Traditional drug materials (“Materials”); and 2) Final products.
• The Requirements that apply to Materials are set out under the Indonesian herbal pharmacopeia or on the labeling of Indonesian medical materials issued by the Minister of Health. However, if Requirements have yet to be included as a part of said herbal pharmacopeia or medical materials, then the relevant Requirements should be implemented in line with the following: 1) Standard Requirements for Materials, as set out within the Indonesian pharmacopeia or the pharmacopeias of other countries; 2) Standard Requirements relating to the safety and quality of Materials that apply internationally; 3) Recognized scientific references that address standard Requirements for Materials; and/or 4) Valid (sahih) scientific data that address standard Requirements for Materials.
• Final products encompass herbs (jamu), imported/licensed traditional drugs, standardized herbal drugs and phytopharmaceuticals. Said products may be categorized as internal drugs (e.g. powder-based products) and external drugs (e.g. creams). Business actors must complete examinations in accordance with the relevant testing parameters that apply to final products in order to fulfill the Requirements.

 

60. Draft Regulation of the National Agency of Drug and Food Control on the Fourth Amendment to Regulation of the Head of the National Agency of Drug and Food Control No. 24 of 2017 on Criteria and Procedures for Drug Registrations

Enforcement Date: -

Summary:

• The Draft Regulation represents the fourth amendment to Regulation of the Head of the National Agency of Drug and Food Control No. 24 of 2017 and focuses on updating provisions that address changes, requirements and documentation (i.e. cover letters, registration forms, certificates, proof of payment and other topics) in relation to variation registrations.
• Variation registrations are registrations of changes that are made in relation to various administrative aspects, efficacy, safety, quality and/or product information and drug labeling, for products for which Indonesian distribution licenses have already been secured.

 

Tax and Non-Tax Charges

61. Regulation of the Minister of Finance No. 1/PMK.05/2023 on Service Tariffs for the Public Services Agency of the Harapan Kita Heart and Blood Vessel Hospital at the Ministry of Health

Enforcement Date: 18 January 2023

Summary:

• Service tariffs for the Public Services Agency of the Harapan Kita Heart and Blood Vessel Hospital (“Agency”) at the Ministry of Health (“Tariffs”) should be set by the Agency at the Ministry of Health for the following types of service users: members of the general public and guarantors (e.g. central government/regional governments, other guarantor companies).
• Said Tariffs comprise: 1) Class-based/non-class-based service Tariffs; and 2) Pharmaceutical Tariffs. Class-based Tariffs (i.e. for inpatients and operative medical measures) have been divided into Class-I, Class-II and Class-III Tariffs, as well as VIP/VVIP Tariffs. Details of the Class-II Tariffs for patients who are members of the general public (“Patients”) are elaborated upon under Appendix I to the Regulation. Meanwhile, Class-III Tariffs should be imposed upon Patients at a maximum rate of 90% of the relevant Class-II Tariffs. Moreover, Class-I Tariffs should be imposed upon Patients at a maximum rate of 125% of the relevant Class-II Tariffs. Meanwhile, VIP/VVIP Class Tariffs should be imposed upon Patients at a minimum rate of 125% of the relevant Class-II Tariffs. Furthermore, operative medical measure Tariffs for Classes I - III should be calculated equally in line with the relevant measures taken.
• Meanwhile, non-class-based Tariffs encompass the following areas: administration, consultations, policlinics, organ transplants, the use of machinery and equipment, sanitation, catering and laundry services, sales and so forth. Finally, pharmaceutical Tariffs for Patients should be determined at the relevant highest retail prices through calculations of net pharmacy prices, value-added tax, etc.

 

62. Regulation of the Minister of Finance No. 4/PMK.02/2023 on Types and Tariffs for Urgent Non-Tax State Revenue for National Selection Services for New Student Admissions at State-Owned Higher Education Institutions at the Ministry of Education, Culture, Research and Technology

Enforcement Date: 20 January 2023

Summary:

• Tariffs for urgent Non-Tax State Revenue (Pendapatan Negara Bukan Pajak – “PNBP”) for National Selection Services for New Student Admissions at State-Owned Higher Education Institutions (“Tariffs”) at the Ministry of Education, Culture, Research, and Technology (“Ministry”) should be set in line with the following considerations: 1) Test-based national selections for diploma or bachelor’s degree, state-owned, higher education programs; and 2) The National Selection Service System for the admission of the new students of state-owned higher education institutions. While the latter Tariff category should be determined based on the relevant cooperation contract, the Tariff for test-based national selections has been set at Rp. 200,000 per prospective student per registration.
• Holders of the Indonesia Smart College Card (Kartu Indonesia Pintar Kuliah), as determined by the Ministry, who meet the following criteria will be charged a Tariff of Rp. 0: 1) Holders who are listed as a part of integrated social welfare data; and/or 2) Holders who are recipients of a social aid program.
• In line with certain considerations, the above-listed Tariffs may be set as low as Rp. 0 or at a rate of 0% in accordance with relevant laws and regulations, provided that approvals are first secured from the Minister of Finance.

 

63. Regulation of the Minister of Finance No. 6/PMK.02/2023 on the Types and Tariffs of Volatile Non-Tax State Revenue Applicable at the Ministry of Manpower

Enforcement Date: 1 March 2023

Summary:

• The applicable Non-Tax State Revenue (Penerimaan Negara Bukan Pajak – “PNBP”) types at the Ministry encompass incomes from: 1) Work health and safety evaluations and inspection services; 2) Work training services; 3) Work health-and-safety training services; 4) Technical training services for the manpower human resources of training services; and 5) The organization of competence evaluations for workers.
• In terms of PNBP for training services, the organization of said services may be carried out through e-learning or blended learning. In cases where training is being carried out through said means, the applicable PNBP break down in the following Daily Updates: “Govt. Sets Volatile PNBP Applicable at the Ministry of Manpower”.

 

64. Regulation of the Minister of Finance No. 7/PMK.02/2023 on the Mechanism for Payments of Non-Tax State Revenue for Immigration Services Applicable at the Ministry of Law and Human Rights Using International Payment Instruments Issued by Foreign Banks or Non-Banks Originating from Abroad

Enforcement Date: 31 January 2023

Summary:

• In order to implement immigration services for which payments of tariffs on types of non-tax state revenue are completed from abroad or within the country, the Minister of Law and Human Rights, as the head of the non-tax state revenue management agency, may appoint and assign managing agency partners.
• Said managing agency partners must meet the following minimum requirements: 1) Must be certified by Bank Indonesia as payment gateways; 2) Must operate servers in Indonesia; 3) Must possess documentation on the development of information technology systems; 4) Must be willing to collaborate with information technology systems owned by the Ministry of Law and Human Rights; 5) Must carry out the duties of managing agency partners in accordance with the relevant laws and regulations; and 6) Must meet various other requirements, as addressed under the relevant laws and regulations that apply within the field of non-tax state revenue.
• Managing agency partners may charge international banking/payment transaction fees to payers in accordance with applicable international practices. The transaction fees in question include fund transfer fees charged by payment system service providers, including credit/debit card providers and/or acquirer banks.
• Determinations of transaction fee amounts should take the following matters into account, among others: 1) Tariff amounts for types of non-tax state revenue; 2) Estimated transaction volumes; and 3) Additional costs borne by applicants.

 

65. Decree of the Minister of Finance No. 2/PMK.09/2023 on the Taxation Supervisory Committee

Enforcement Date: 17 January 2023

Summary:

• The Taxation Supervisory Committee (Komite Pengawas Pajak – “Komwasjak”) is an independent supervisory body and reports directly to the Minister of Finance (“Minister”). The Komwasjak is responsible for assisting the Minister during the supervision and provision of strategic recommendations relating to policy and the administration of taxation-related matters with several agencies, including: 1) The Fiscal Policy Agency; 2) The Directorate-General of Tax; and 3) The Directorate-General of Customs and Excise (collectively referred to as “Relevant Institutions”).
• In carrying out its duties and functions, the Komwasjak is authorized to take various actions, including: 1) Requesting any information from Relevant Institutions and the Inspectorate-General at the Ministry of Finance (“Ministry”) in accordance with their jurisdictions; 2) Gathering information, suggestions, inputs and/or aspirations from various parties aside from the parties listed in point (1) above; and 3) Receiving tax-related complaints from non-Ministry parties.
• The Komwasjak should arrange a periodic coordination meeting at least once every three months with Relevant Institutions and the Inspectorate-General at the Ministry which should discuss the following issues: 1) Communicating study results within the taxation sector; 2) Monitoring of the follow-up handling of complaints and recommendations; and 3) Harmonization of report materials with the Minister.

 

66. Circular of the Director General of Customs and Excise No. SE-2/BC/2023 on Provisions on Notifications for Excisable Goods That Have Been Completed for Cut Tobacco Products

Enforcement Date: 13 January 2023

Summary:

• Chopped Tobacco that has been mixed with other ingredients usually used in the creation of tobacco products (also known as “Cut Tobacco”) and that is packaged for both retailers and non-retailers is required to be covered by notifications for excisable goods that have been completed. Furthermore, producers of the aforementioned Cut Tobacco are required to secure the Excisable Goods Entrepreneur Identification Numbers (Nomor Pokok Pengusaha Barang Kena Cukai/NPPBKC) and to comply with the relevant laws and regulations that relate to excise.
• However, any Cut Tobacco that is used as raw or auxiliary materials during the production of any final products which are considered excisable goods by any different factories from those in which the Cut Tobacco is produced are not required to be covered by notifications for excisable goods that have been completed. 
• Tobacco product manufacturers are also required to provide notifications for excisable goods that have been completed for any Cut Tobacco which is destroyed/damaged: 1) Before being covered by notifications for excisable goods that have been completed through the use of excise documents in the form of LACK-10; and 2) After being covered by notifications for excisable goods that have been completed through the use of excise documents in the form of PBCK-8

 

Technology, Media, and Telecommunication

67. Regulation of the President No. 17 of 2023 on the Acceleration of the Digital Transformation of Procurements of Government Goods/Services

Enforcement Date: 20 February 2023

Summary:

• In order to accelerate this digital transformation of procurements, the government has appointed PT Telekomunikasi Indonesia Tbk to implement the relevant systems and supporting systems. In this regard, PT Telekomunikasi Indonesia will first draw up an acceleration plan which will comprise the following documents: 1) Technical plan; and 2) Business plan. This acceleration plan will be stipulated by the Head of the Policy Center for Procurements of Government Goods/Services.
• In carrying out this duty, PT Telekomunikasi Indonesia is bound by a cooperation agreement with the Policy Center for the Procurement of Government Goods/Services that addresses the organization of the Electronic Procurement System and its various supporting systems. Said cooperation agreement addresses the following specific matters, among others: 1) Forms of government support; 2) Returns of funds to PT Telekomunikasi Indonesia Tbk; 3) Confidentiality; etc.

 

68. Regulation of the Minister of Communication and Information Technology No. 16 of 2022 on General Policy for the Organization of Information and Communication Technology Audits

Enforcement Date: 30 December 2022

Summary:

• Audits of Information and Communication Technology (Teknologi Informasi dan Komunikasi – “TIK”) should be implemented in line with the following scope: 1) National; 2) Central institutions; and 3) Regional governments, and should be performed in relation to the following areas: 1) Electronic-based government systems’ (sistem pemerintahan berbasis elektronik “SPBE”) infrastructure; 2) SPBE applications; and 3) SPBE security.
• TIK audits should encompass examinations of primary technical matters relating to the following areas: 1) The application of governance and TIK management; 2) TIK functionality; 3) TIK performance; and 4) Other aspects relating to TIK.
• The Minister of Communication and Information Technology should monitor and evaluate the organization of TIK audits, as well as any follow-up measures that are taken in relation to the results of TIK audits.

 

69. Draft Regulation of the President on the Responsibilities of Digital Platform Companies in Support of Quality Journalism

Enforcement Date:

Summary:

• Indonesia’s Press Council (“Council”) is responsible for determining the procedures and mechanisms for the determination of digital platform companies (“Digital Companies”). Generally speaking, said determinations should be completed based on the following factors: 1) Percentage of utilized domestic traffic; and/or 2) Total number of active daily users in Indonesia over certain periods of time.
• Digital Companies are also required to meet a total of eight obligations that may result in the imposition of sanctions for any acts of non-compliance. However, only press companies that have been verified by the Council may submit requests that address the implementation of the above obligations to the Council.
• Any profit-sharing agreements that are drawn up between Digital Companies and Press Companies (“Agreements”) should be further determined by the Council. All Agreements must be drafted in writing, which may involve input from press company groups. However, implementors at the Council are authorized to cancel any profit-sharing rights that are encumbered by Press Companies in certain circumstances.
• For more information, see ILB No. 4578.

 

Trade

70. Decree of the Minister of Trade No. 112 of 2023 on Export Benchmark Prices for Mining Products Subject to Export Duty

Enforcement Date: 1 February 2023

Summary:

• Stipulate a new set of said export benchmark prices that will apply from 1 February 2023 until 28 February 2023.
• Broadly speaking, 360 products are listed under the Appendix to Decree 112/2023 and include details on their respective tariff posts, export benchmark prices and units (USD/WE).

 

71. Decree of the Minister of Trade No. 113 of 2023 on Export Benchmark Prices and Reference Prices for Agricultural and Forestry Products Subject to Export Duty

Enforcement Date: 1 February 2023

Summary:

• Determines a reference price for cacao seeds of US$ 2.613,53/MT. Furthermore, the decree also determines export benchmark prices for the following commodities: 1) Cacao seeds - US$ 2.323/MT; 2) Veneer - US$ 800/M³ (from natural forests) or US$ 600/M³ (from plantation forests); 3) Wooden sheeting for packaging boxes - US$ 850/M³; 4) Wood in chips or particles - US$ 80/ton; 5) Chip wood - US$ 90/ton; 6) Processed woods (from US$ 300 - US$ 3200/M³ based on the type of wood); 7) Hide and skins, including wet blue skin (kulit disamak), which vary based on the animals that hides and skins are retrieved from. 
• Said reference prices will remain valid from 1 February 2023 until 28 February 2023.

 

72. Decree of the Minister of Trade No. 114 of 2023 on the Reference Price for Crude Palm Oil Subject to Export Duty and Service Tariffs at the Public Service Agency of the Palm Oil Plantation Fund Management Agency

Enforcement Date: 1 February 2023

Summary:

• Determines a new Reference Price for Crude Palm Oil Subject to Export Duty and Service Tariffs at the Public Service Agency of the Palm Oil Plantation Fund Management Agency of US$ 879,31/MT.
• This reference price will apply from 1 February 2023 - 15 February 2023.

 

73. Decree of the Minister of Trade No. 115 of 2023 on the Trade List of Trademarks for Refined, Bleached and Deodorized Palm Olein in Branded Packaging and Packaged in Net Weights of Less Than or Equal to 25 Kg

Enforcement Date: 1 February 2023

Summary:

• Determines a trade list of 1603 products for Refined, Bleached and Deodorized Palm Olein in Branded Packaging and Packaged in Net Weights of Less Than or Equal to 25 Kg with post tariffs of ex 1511.90.36, as listed under Appendices I – II to this decree. The list will remain applicable from 1 February 2023 - 28 February 2023.

 

74. Decree of the Minister of Trade No. 126 of 2023 on the Determination of Multiple Packaging Factors and Multiple Regional Factors for the Fulfillment of the Domestic Market Obligation for Cooking Oil

Enforcement Date: 7 February 2023

Summary:

• Determines various multiple packaging factors and multiple regional factors for the fulfillment of the Domestic Market Obligation (“DMO”) for cooking oil for business actors that engage in the distribution of cooking oil under the MINYAKITA trademark, specifically: 1) Multiple factors for cooking oil for the general public that is packaged in pillow packs of 1.5 liters; and 2) Multiple factors for cooking oil for the general public that is packaged in non-pillow pack packages of 1.75 liters.
• The applicable multiple regional factors for the fulfillment of the above-mentioned DMO within provincial areas are comprehensively listed under the Appendix to this decree.

 

75. Decree of the Minister of Finance No. 3/KM.4/2023 on Determination of Export Prices for Export-Duty Calculations

Enforcement Date: 1 February 2023

Summary:

• In essence, the Decree features applicable export prices (“Prices”) that apply in relation to export-duty (“Duty”) calculations for certain goods, as outlined under the Appendix to the Decree. Said goods encompass: 1) Wooden products (e.g. veneer, wood chips and processed wooden products) and leather products (e.g. raw animal hides, tanned skins and so forth); 2) Cacao seeds; and 3) Processed metal minerals and certain metal mineral products.
• In terms of crude palm oil (CPO) and its derivative products, as well as cacao seeds, as featured under Regulation of the Minister  No. 123/PMK.010/2022 on the Second Amendment to Regulation of the Minister No. 39/PMK.010/2022 on the Stipulation of Exported Goods That Are Subject to Export Duty and Export-Duty Tariffs (collectively referred to as “Regulation 39/2022”), the applicable Duty tariffs for said products should be determined based on the relevant product reference prices determined by the Minister of Trade.

 

76. Regulation of the Director-General of Customs and Excise No. PER-3/BC/2023 on the Governance of Bonded Exhibition Areas

Enforcement Date: 30 January 2023

Summary:

• Bonded Exhibition Areas (Tempat Penyelenggaraan Pameran Berikat – “TPPB”) comprises Permanent TPPB and Temporary TPPB. Moreover, any business actors that are involved in the organization of Permanent TPPB are still required to secure licenses for the organization of exhibitions from the Head of the relevant Regional Customs and Excise Offices on an annual basis or prior to the organization of every exhibition.
• In order to secure said licenses, business actors that are involved in the organization of Permanent TPPB should submit electronic applications enclosing the following: 1) Contract of work between the business actor involved in the organization of Permanent TPPB and the relevant organizer; and 2) Business License Number (Nomor Induk Berusaha/NIB) letter for the exhibition organizer sector.
• Imports of exhibition goods into storage areas may be conducted from: 1) Outside of customs areas; and/or 2) Other TPPB. Exhibition goods generally comprise goods that are owned by: 1) Foreign taxpayers; 2) TPPB business actors; or 3) Domestic taxable business actors other than TPPB business actors.

 

77. Decree of the Minister of Marine Affairs and Fisheries No. 41 of 2023 on Review Results for Sectoral Electronic Catalog Products at the Diving Equipment Products Showcase

Enforcement Date: 15 February 2023

Summary:

• Determines a set of results for sectoral electronic catalog products at the diving equipment products (“Product”) showcase review, as comprehensively outlined under the Appendix to this Decree. At its core, the Product showcase encompassed the following products: 1) Diving equipment; 2) Snorkeling equipment; 3) Relevant components; 4) Diving training services; and 5) Diving equipment rental services.
• The results of the above review will be utilized as the basis for the establishment of a Product showcase through the electronic goods or services catalogue application.

 

78. Decree of the Minister of Marine Affairs and Fisheries No. 42 of 2023 on Review Results for Sectoral Electronic Catalog Products at the Maritime Tourism Facilities and Infrastructure Products Showcase

Enforcement Date: 15 February 2023

Summary:

• Determines a set of results for sectoral electronic catalog products at the maritime facilities and infrastructure products (“Product”) showcase review, as comprehensively outlined under the Appendix to this Decree. At its core, the Product showcase encompassed the following products: 1) Maritime tourism facilities (Prasarana) (i.e. tracking); and 2) Maritime tourism infrastructure (sarana) (e.g. information posts, gazebos, tourism pontoons, accommodation huts, viewing towers and toilets).
• The results of the above review will be utilized as the basis for the establishment of a Product showcase through the electronic goods or services catalogue application.

 

79. Circular of the Commodity Futures Trading Regulatory Agency No. 53/BAPPEBTI/SE/01/2023 of 2023 on The Technical Implementation of Annual Report Submissions for the Futures Exchange, Futures Clearing Houses, Futures Traders, Futures Advisors, Managers of Futures Fund Centers, Margin Storage Banks, Compensation Funds and/or Guarantee Funds, and Prospective Physical Traders of Crypto Assets

Enforcement Date: 31 January 2023

Summary:

• The holders of business licenses for various parties in relation to futures trading activities are required to submit annual reports to the Head of Commodity Futures Trading Regulatory Agency (Badan Pengawas Perdagangan Berjangka Komoditi – “Bappebti”). The actors that fall within this scope include the following: 1) Futures exchanges; 2) Futures clearing agencies; 3) Futures traders; 4) Futures advisors; 5) Futures fund center managers; 6) Depository banks for margins, compensation funds and/or guarantee funds; and 7) Potential traders of physical crypto assets.
• In order to fulfill the abovementioned obligations, business actors should submit their reports to Bappebti in softcopy format through the system provided at: [email protected]. It is important to note that all annual reports should be submitted with a Cover Letter (Surat Pengantar), which should be drawn up in line with the format set out under the Appendix to this Circular.
• For more information, see ILB No. 4569.

 

Transportation and Logistics Services

80. Regulation of the Minister of Transportation No. PM 3 of 2023 on the Amendment to Regulation of the Minister of Transportation No. PM 36 of 2016 on Basic Fares, Upper-Limit Fares and Lower-Limit Fares for Economy Class Intercity Interprovincial Passenger Transportation on Roads by Public Buses

Enforcement Date: 13 January 2023

Summary:

• According to the Amendment, tariffs for passenger transportation on economy-class intercity and interprovincial bus routes comprise: 1) Basic fares; 2) Upper-limit fares; and 3) Lower-limit fares. Said basic fares, upper-limit fares and lower-limit fares will be determined by the Minister through the Director-General of Land Transportation (“Director-General”) based on guidelines for the calculation of tariffs that are stipulated in accordance with relevant laws and regulations.
• Public transportation companies are required to comply with the basic fares, upper-limit fares and lower-limit fares that are determined by the Minister through the Director-Ge64neral.
• The following administrative sanctions may be imposed upon any public transportation companies that do not comply with said fares: 1) Written warnings; 2) Administrative fines; 3) Suspension of business licenses; and/or 4) Revocation of business licenses.

 

81. Regulation of the Minister of Transportation No. PM 40 of 2022 on the Organization of River and Lake Ports

Enforcement Date: 30 December 2023

Summary:

• River and lake ports are organized into the following hierarchy: 1) Type A, which serves river and lake transportation routes and/or interprovincial and/or international transportation routes; 2) Type B, which serves river and lake transportation routes and/or inter-regency/city transportation routes within the borders of single provinces; and 3) Type C, which serves river and lake transportation routes and/or transportation routes within the borders of single regencies/cities.
• In terms of the organization of said ports, three classes are available and range from Class I to Class III, which should be determined based on the capabilities of the relevant transportation services.
• Business activities can be performed at said ports and encompass service activities relating to the following: 1) Ships; 2) Passengers; 3) Goods; 4) Vehicles (kendaraan); and 5) Other relevant service activities. 
• The establishment, development and operations of river and lake ports should be implemented by the following parties: 1) Port business actors; and 2) Central/regional governments.

 

82. Regulation of the Minister of Finance No. PMK 5/PMK.05/2023 on Services Tariffs for Public Service Agencies of the Jakarta Sea Transportation Education and Training Center at the Ministry of Transportation

Enforcement Date: 2 February 2023

Summary:

• Services tariffs (“Tariffs”) for Public Service Agencies of the Jakarta Sea Transportation Education and Training Center (“Training Center”) are comprehensively outlined under the Appendix to this Regulation and have been categorized as follows: 1) Academic Tariffs (e.g. for the selection of prospective participants, advanced education and training services [“Services”], updating of Services and so forth); and 2) Supporting academic Tariffs (e.g. for utilized infrastructure and facilities, equipment, transportation and so forth).
• In addition to the above services, the Training Center may also organize several activities for which the relevant Tariffs should be determined based on cooperation contracts between the Head of the Training Center and the relevant parties. Said activities break down as follows: 1) Education, research and community development for service users; and/or 2) Asset utilization, management cooperation and/or other forms of cooperation aimed at improving the offered Services.
• Foreign participants in any education and training programs offered by the Training Center will be charged at a minimum rate of 150% of the relevant determined Tariffs. Moreover, certain education and training participants (e.g. participants who are unable to afford the relevant programs, who have been affected by force-majeure events, who come from remote or isolated places or as determined by the Minister of Transportation) may be charged as little as Rp. 0, in line with the financial condition of the Training Center.

 

83. Circular of Director General of Air Transportation No. SE.01 of 2023 on the Implementation of New Brake Burn-in Procedures for the Cessna C208 Series Aircraft

Enforcement Date: 9 January 2023

Summary:

• Require the holders of AOC 135 and OC 91 Flight Operation Certificates who operate the Cessna 208 Series aircraft to implement the latest replacement/installation manual, specifically the new brake burn-in procedure that is stipulated in the Model 208 Series Maintenance Manual Chapter 32-40-00. In this regard, during any process of new brake burn-in, the following procedure must be implemented: 1) Performance of six consecutive light braking applications at between 20 and 35 knots, while allowing the brake discs to cool substantially between runs; and 2) Performance of two consecutive full-stop braking applications at between 30 and 35 knots.
• The implementation of the new brake burn-in must be conducted by a qualified pilot assisted by a Licensed Aircraft Maintenance Engineer (LAME) in accordance with the prevailing procedure. Any such implementation must be recorded and signed off on by the pilot concerned in the aircraft logbook. (Points 5.b.3 and 4)
• Aircraft must be declared Return to Service (RTS) ready before returning to operational commercial flights. 

 

84. Circular of the Director-General of Air Transportation No. SE.02 of 2023 on Awareness of Lithium Batteries and Equipment Containing Lithium Batteries in Passenger and/or Flight Crew Luggage

Enforcement Date: 27 January 2023

Summary:

• The following parties are required to increase their levels of awareness and to remain alert in terms of all luggage that is carried by air flight passengers and/or crews (collectively referred to as “Onboard Parties”) and that takes the form of and/or that contains lithium batteries (“Batteries”) during flights: 1) All flight operation certificate (“Certificate”) holders that operate within Indonesian territory; and 2) All entities that act on behalf of the parties listed in point (1) above.
• Said Certificate holders are required to ensure that any of their personnel who engage in the examination, admission and/or handling of Onboard Parties’ luggage act as follows: 1) Remain cautious and careful while engaging in their duties; 2) Understand relevant provisions that relate to the Batteries and/or equipment containing Batteries of Onboard Parties (collectively referred to as “Items”); and 3) Implement all applicable procedures that relate to Items.
• Onboard Parties’ luggage may take the form of carry-on or checked-in baggage, while the seven Items that have now been restricted in terms of permission to be carried aboard flights include the following: 1) Baggage containing installed Batteries; 2) Spare or loose Batteries, including power banks; 3) Electronic cigarettes; 4) Electroshock weapons; and 5) Portable electronic devices. The restrictions that are applicable in relation to said Items break down as follows: 1) Permitted in or as checked-in baggage; 2) Permitted in or as carry-on baggage; 3) Persons in charge of flights must be informed of the locations of all such carried Items; and 4) Approvals must be secured from the relevant flight operators.
• For more information, see ILB No. 4573.

 

85. Circular of the Director General of Sea Transportation No. SE 2 of 2023 on Coordination During the Supervision of Oversized and/or Overloaded Vehicles in Relation to the Organization of Construction Services at the Directorate-General of Sea Transportation

Enforcement Date: 16 January 2023

Summary:

• The heads of harbormaster offices, main port authority offices and district navigation offices, as well as port business entities, special terminal managers and terminal managers for personal use (together referred to as “Port Authorities”) are required to implement supervisory coordination in relation to the utilization of freight vehicles traveling to and/or from port terminal facilities, navigation installations or other Directorate-General of Sea Transportation infrastructure that have committed over-dimension and/or overloading violations during the transportation of construction materials and/or tools that will be used for the organization of construction work.
• In coordinating this supervision, Port Authorities are required to facilitate access to the following locations: 1) Port entrances/exits; 2) Special terminal entrances/exits; 3) Entrances/exits of terminals for personal use; 4) Entrances/exits of navigation installations; and 5) Other entrances/exits of Directorate-General of Sea Transportation infrastructure.
• Furthermore, Port Authorities are also required to provide support to technical implementing units at the Directorate-General of Land Transportation and authorized institutions in relation to the conducting of inspections, as well as to enforce rules and legal action relating to over-dimension and/or overloaded vehicle violations that are committed during the organization of construction services.

 

86. Decree of the Minister of Transportation No. KM 8 of 2023 on the Determination of the Climate Change Mitigation Act for the Transportation Sector in Order to Achieve the Nationally Determined Target

Enforcement date: 10 January 2023

Summary:

• The Climate Change Mitigation Act for the Transportation Sector in Order to Achieve the Nationally Determined Target (“Mitigation Act”) applies to all modes of transportation, including land, water, air and rail. In order to implement the Mitigation Act, the relevant officials should implement the following duties: 1) Implement the various programs set out under the Mitigation Act within each respective subsector; and 2) Conduct planning, monitoring and data collections in relation to the Mitigation Act, conduct data collections for reductions in emissions and evaluations of the Mitigation Act for each respective subsector, and also submit reports through the Center for Sustainable Transportation Management.
• Lists of activities for each sector as regards the implementation of the Mitigation Act are set out under the appendix to this decree. Moreover, in terms of funding, any funds that are required in order to implement the Mitigation Act should be included on the List of Budget Executors (Daftar Isian Pelaksana Anggaran/DIPA) of the relevant working unit or may be sourced from legitimate sources of funding in accordance with the relevant applicable laws and regulations.

 

87. Decree of the Director-General of Sea Transportation No. KP-DJPL 92 of 2023 on Technical Specifications for Marine Health Documents

Enforcement Date: 3 February 2023

Summary:

• Details of the Specifications are comprehensively outlined under the Appendix to the Decree, while documents themselves should address the following matters: 1) Sailors’ medical certificates; 2) Sailors’ medical status sheets; and 3) Medical records books. The issuance of the aforementioned Documents should be carried out by the Shipping Manpower Medical Center (Balai Kesehatan Kerja Pelayaran/BKKP) as required and should address the available budgetary funds in accordance with relevant laws and regulations.
• In terms of forgery prevention, the Director-General may evaluate the Specifications at any time deemed necessary. Furthermore, the utilization of Specifications that adhere to Decree of the Director-General of Sea Transportation No. HK.205/3/9/DJPL/2019 remains applicable but must be adjusted to the provisions that feature under the Decree within one year of the Decree entering into force.

 

88. Decree of the Director-General of Air Transportation No. PR 1 of 2023 on Guidelines and Procedures for the Organization of Aviation Security Education and Training

Enforcement Date: 30 January 2023

Summary:

• The education and training of aviation security personnel must be completed in accordance with the Guidelines and Ordinance on the Implementation of National Aviation Security Education and Training (“Guidelines”) in order to ensure that Indonesia has competent aviation security personnel.
• The Guidelines themselves specifically address the following matters: 1) Procedures for the certification of education and training institutions (“Institutions”); 2) Organization of aviation security education and training; and 3) Supervision of Institutions’ business licensing.
• The organization of aviation security education and training should cover the following areas: 1) Education and training of aviation security personnel, aviation security instructors and aviation security inspectors; 2) Education and training of aviation security facility personnel and aviation security managers; 3) Individual training of personnel aside from aviation security personnel; and 4) Competence development training.

 

Miscellaneous

89. Regulation of the Government No. 7 of 2023 on the Control of Space Technologies

Enforcement Date: 16 February 2023

Summary:

• Control over space technologies (“Control”) may be implemented independently and/or through national and/or international cooperation in accordance with the applicable laws and regulations. The organizers of space affairs (“Organizers”) include the National Institute of Aeronautics and Space (Lembaga Penerbangan dan Antariksa Nasional – “LAPAN”) and other parties, which encompass research and development agencies, universities, Indonesian legal entities and/or individuals.
• Control encompasses the following four activities: 1) Control and development of rockets; 2) Control and development of satellites; 3) Aeronautical control and development; and 4) Deployment of technologies.
• All Organizers are responsible for matters relating to safety and security during Control and must comply with applicable standards and procedures, as set by LAPAN. The safety and security standards and procedures that apply in relation to Control encompass facilities and infrastructure, materials and components, the environment, personnel, activities and transportation.
• For more information, see ILB No. 4580.

 

90. Regulation of the Minister of Finance No. 9/PMK.06/2023 on Implementing Guidelines for Civil Actions and/or Public Service Actions for Arrangements of State Receivables by the State Receivables Affairs Committee

Enforcement Date: 2 February 2023

Summary:

• Civil actions are defined as limitations that are placed upon rights and services by financial services institutions in relation to debt guarantors/parties that have secured certain rights (collectively referred to as “Guarantors”). Meanwhile, public service actions are defined as rights and service limitations that are set by the government as the organizer of public services for Guarantors.
• Civil or public service actions (collectively referred to as “Actions”) may be performed against Guarantors under the following conditions: 1) If the remaining obligation amounts to at least Rp. 1 billion; 2) If the guarantor has not acted in good faith in terms of the settling of their debt (e.g. the guarantor has failed to settle at least 50% of the total debt and/or has postponed the agreed debt payment); and 3) If notification has previously been provided through the issuance of a Distress Warrant (Surat Paksa).
• Overall, the above Actions should be carried out by branch offices of the State Receivables Affairs Committee (Panitia Urusan Piutang Negara – “PUPN”) in line with the following phases: 1) Implementation of preliminary matters in line with the State Assets and Auction Service Office (Kantor Pelayanan Kekayaan Negara dan Lelang/KPKNL) (e.g. inventoried and classified state receivables files, coordination with relevant agencies and issuance of written notifications to Guarantors); 2) PUPN branch offices should then draft a list of the Guarantors that are being subject to the Actions (“List”); and 3) The PUPN branch office should then electronically submit the List to the relevant agencies authorized to execute the Actions.

 

91. Regulation of the Minister of Tourism and Creative Economy/Head of the Tourism and Creative Economy Agency No. 1 of 2023 on Technical Guidance on the Use of the Special Allocation Fund of the Non-Physical Tourism Services Fund

Enforcement Date: 13 January 2023

Summary:

• The Special Allocation Fund of the Non-Physical Tourism Services Fund (Dana Alokasi Khusus Nonfisik – “Non-Physical DAK”) should be determined through the formulation of a government working plan and should subsequently be directed towards the activities menu, which encompasses: 1) Increasing governance capacities and improving safety, security and healthcare services in tourism destinations; 2) Increasing the capacities of tourism communities and related business actors; and 3) Non-routine operational support for tourism facilities within the tourism information center.
• The above Non-Physical DAK should be implemented based on the relevant technical guidelines (“Guidelines”) that serve as a reference for use by regional governments during the management of any Non-Physical DAK. The Guidelines themselves are comprehensively outlined under the Appendix to this Regulation and address the following matters: 1) Introduction; 2) Criteria and allocation; 3) Planning; 4) Usage; 5) Implementation; 6) Funding; 7) Distribution; 8) Monitoring, evaluation and reporting; 9) Format and lists; and 10) Closing provisions.

 

92. Regulation of the Minister of Youth and Sports No. 1 of 2023 on Increasing the Competitiveness of Youth Entrepreneurship Across National Regions

Enforcement Date: 16 January 2023

Summary:

• The development of youth entrepreneurship across Indonesia’s regions should be implemented in various ways, specifically: 1) Training; 2) Internships; 3) Coaching; 4) Accompaniment; 5) Partnerships; 6) Promotions; and/or 6) Assistance relating to access to capital. 
• Meanwhile, the development of youth entrepreneurship across Indonesia's regional ecosystem should be implemented as follows: 1) Strengthening of policy frameworks; 2) Granting of funding, incentives and ease of access; 3) Internalization of entrepreneurship culture; 4) Provision of infrastructure; 5) Increasing of human-resource capacities; and 6) Development of marketing systems.
• Central/regional governments are responsible for the required funding, as well as for the implementation of monitoring and evaluation measures.

 

93. Regulation of the Minister of Youth and Sports No. 2 of 2023 on Long-Term Athlete Development Patterns 

Enforcement Date: 16 January 2023

Summary:

• Long-Term Athlete Development (“LTAD”) should be implemented among athletes at the national, provincial and regency levels through a consideration of their biological ages and maturity levels. LTAD itself encompasses athletic training, competition and recovery.
• Furthermore, the implementation of LTAD should be supported by knowledge and sports theory, which encompasses: 1) Physical literation; 2) Specialization; 3) Age; 4) Trainability; 5) Intellectual, emotional and moral development; 6) The excellence-takes-time principle; 7) Periodization; 8) Competition; 9) System alignment and integration; and 10) Continuous improvement.
• The funding required for the implementation of LTAD should be sourced from: 1) The state revenue and expenditure budget; 2) Regional revenue and expenditure budgets; and 3) Other legal and non-binding sources in accordance with the relevant laws and regulations.

 

94. Regulation of the Minister of Youth and Sports No. 3 of 2023 on Guidance for and the Development of the Sports Industry

Enforcement Date: 16 January 2023

Summary:

• The sports industry comprises the following: 1) Goods in the form of: a) Sporting equipment; b) Sporting apparel; c) Stadium or sports buildings; d) Sports science equipment; e) Fitness and recovery equipment; f) Sports medical equipment; g) Sports supplements; and h) Other types of facilities and infrastructure; and 2) Services, in the form of the sale of professional sporting activities, which include: national and international tournaments, exhibitions, sports festivals, education, training and so forth.
• The strengthening of the sports industry ecosystem should be implemented through the following measures: 1) Internalization of sports culture; 2) Strengthening of policy frameworks; 3) Provision of infrastructure; 4) Development of human resources; 5) Provision of funding; and 6) Development of marketing systems. 
• The government should facilitate funding for the strengthening of the sports industry ecosystem, which should be granted in the form of: 1) Government support; 2) Grants; 3) Low-interest loans; and 4) Machinery and/or equipment.
• The government should also facilitate profitable cooperation between all of the industry’s stakeholders, which include industry actors, universities, sports communities, mass media and other relevant stakeholders.

 

95. Regulation of the Minister of Defense No. 1 of 2023 on the One-Defense Data Initiative

Enforcement Date: 5 January 2023

Summary:

• The One-Defense Data Initiative (“One-Data”) deals with the arrangement and organization of the results of data governance and involves support for planning, implementation, evaluation and control over the development of the defense sector.
• The organization of One-Data should be implemented by the following parties: 1) Directors; 2) Data guardians (walidata) of defense; 3) Producers of defense data; 4) Processors of defense data; 5) Security systems for defense data; and 5) Fora for defense data. Said organization involves the following activities: 1) Planning; 2) Collection; 3) Examination; 4) Operation of security systems; and 5) Dissemination of relevant information
• Data should be classified as follows: 1) Open-access data (i.e. open to the general public); 2) Limited data (i.e. can only be accessed by ministerial/non-ministerial agencies); and 3) Secret data (i.e. can only be accessed by authorized officials at the Ministry of Defense, the Headquarters of the Indonesian National Armed Forces and various Forces Headquarters).

 

96. Regulation of the Minister of Laws and Human Rights No. 7 of 2023 on Correctional Intelligence

Enforcement Date: 2 February 2023

Summary:

• The scope of correctional intelligence (“Intelligence”) comprises the following areas: 1) Services for inmates and children; 2) Guidance for adult/child prisoners (narapidana dan anak binaan); 3) Mentoring of correctional intelligence; 4) Maintenance; 5) Security; 6) Observation; and 7) Management of confiscated objects.
• The Minister of Laws and Human Rights is authorized to organize Intelligence, specifically supporting activities that relate to security and observations that take place within correctional environments, as implemented by the Director-General of Corrections.
• Intelligence activities encompass the following: 1) Investigations; 2) Security-related activities; and 3) Fundraising. The results of these activities can then be used as data or information during the preparation of policies.

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