General Corporate

1. Draft Bill on the Third Amendment to Law No. 6 of 2011 on Immigration

Enforcement Date: -

Summary:

• Holders of Permanent-Stay Permits (Izin Tinggal Tetap – “ITAP”) are now entitled to secure re-entry permits with validity periods that are in line with those of the relevant ITAP. Currently, said holders are only entitled to secure re-entry permits that are granted for two-year validity periods and that do not exceed the original ITAP validity periods.
• In line with two judicial review petitions issued by the Constitutional Court (Mahkamah Konstitusi – “MK”), the Draft Bill has now adjusted the following aspects in relation to immigration prevention (pencegahan) and prohibition (penangkalan) measures: 1) In addition to not being in possession of valid travel documents and being listed on the immigration prevention list, immigration officers may only prevent individuals from exiting Indonesian territory for the purpose of investigations upon the request of authorized officials; and 2) Immigration prevention will be applicable for a maximum period of six months and may only be extended for a further six-month period.
• While currently, funding for the organization of immigration is borne through the State Expenditure Budget (Anggaran Pendapatan dan Belanja Negara/APBN), the Draft Bill has now allowed for such funds to be sourced from other legitimate sources of funding in accordance with relevant Laws and Regulations. Said sources include: 1) Utilization of state-owned goods and/or utilization of assets under control; 2) Utilization of cooperation schemes between the government and business entities; and/or 3) Participation of other parties (e.g. state-owned enterprises, state-owned legal entities and contributions from the private sector).
• For more information, see ILB No. 4883.

 

Banking

2. Regulation of the Board of Governors of Bank Indonesia No. 4 of 2024 on the Amendment to Regulation of the Board of Governors of Bank Indonesia No. 11 of 2023 on Implementing Regulation of the Macroprudential Liquidity Incentive Policy

Enforcement Date: 1 June 2024

Summary:

• This Amendment has expanded the scope of business sector in which the recipient banks of Macroprudential Liquidity Incentive Policy (Kebijakan Insentif Likuiditas Makroprudensial – “KLM”) may provide credit or financing. These sectors now are as follow: 1) Downstream sector; 2) Automotive sector, trade sector, electricity, gas and water, as well as social services sector; 3) Housing sector; and/or 4) Tourism and creative economy sector.
• Furthermore, this Amendment also reset the rate of the KLM received by the recipient bank, which is counted from the total credit/financing provided from certain sector. The aforementioned rate is as follow: 1) 0.6% or 0.8% for the downstream sector; 2) 0.4% or 0.5% for the automotive, trade, electricity, gas, water, and social service sector; 3) 0,3% or 0.4% for housing sector; and 4) 0.4% or 0.5% for tourism and creative economy sector).
• This Amendment also stipulates various adjustment to the criteria for banks to receive incentives by BI based on achievement of Macroprudential Inclusive Financing Ratio, Credit of Financing to ultra-micro enterprises, and environment Credit or Financing, and other financing as determined by BI, which aim to encourage bank lending or financing.

 

3. Regulation of the Deposit Insurance Corporation No. 1 of 2024 on Bank Restructuring Program Premiums

Enforcement Date: 16 May 2024

Summary:

• The Deposit Insurance Corporation (Lembaga Penjamin Simpanan – “LPS”) has now issued an implementing regulation that addresses the organization of premiums for the Bank Restructuring Program (“Premiums”). In essence, conventional and sharia commercial banks (collectively referred to as “Banks”) are required to calculate and pay Premiums for the Bank Restructuring Program twice a year in line with the following periods: 1) 1 January - 30 June (payment deadline of 31 January); and 2) 1 July - 31 December (payment deadline of 31 July). 
• Payments for each of these periods break down into two phases (i.e. initial Premium payments and subsequent Premium adjustments), with the initial Premium payments having to be completed for the 1 January 2025 - 30 June 2025 period.
• During implementation, the LPS has stated that they may require banks to adjust their Premium amounts when making Premium payments for the following period if any of the following conditions occur: 1) Lack of Premium payments; 2) Excess Premium payments; 3) Banks carry out mergers before the Premium payment deadline; and 4) Banks carry out spin-offs to establish sharia business units.
• For more information, see ILB No. 4884.

 

4. Draft Regulation of the Financial Services Authority of 2024 on the Amendment to Regulation of the Financial Services Authority No. 50/POJK.03/2017 on the Obligation of Commercial Banks to Fulfill the Net Stable Funding Ratio

Enforcement Date: -

Summary

• In an effort to create a healthy banking system capable of developing and competing at the national and international levels, the Financial Services Authority is currently drawing up a Draft Regulation that will ultimately amend Regulation No. 50/POJK.03/2017 on the Obligation to Fulfill the Net Stable Funding Ratio (“NSFR”) for Commercial Banks (“Regulation 50/2017”).
•  In essence, the Draft Regulation has now expanded the list of banks that are required to comply with the NSFR from banks included in the Commercial Banks with Business Activities (Bank Umum Kegiatan Usaha/BUKU) 3 and 4 categories and foreign banks, as originally featured under Regulation 50/ 2017, to all types of banks.
• Moreover, the Draft Regulation also addresses various obligations relating to NSFR calculations and reporting by banks that are included in the group of banks based on the Core Capital 1 category (other than foreign banks), including an implementation timeline, as well as procedures and formats for the submission and publishing of NSFR reports.

 

5. Draft Regulation of the Financial Services Authority of 2024 on the Amendment to Regulation of the Financial Services Authority Regulation No. 42/POJK.03/2015 on the Obligation of Commercial Banks to Fulfill the Liquidity Coverage Ratio

Enforcement Date: -

Summary

•  The Draft Regulation clarifies that all banks must implement Liquid Coverage Ratio (“LCR”) compliance. Moreover, in order to fulfill the LCR, each bank is also required to satisfy the High-Quality Liquid Assets (“HQLA’) component in accordance with their respective designated levels. In this regard, the Draft Regulation has now adjusted the criteria for securities issued and/or guaranteed by the central government and Bank Indonesia in HQLA component Level 1 and Level 2B.
• In addition, the Draft Regulation has also adjusted the criteria for individual customer deposits and funding originating from micro- and small-scale business customers which are taken into account during the setting of the LCR. These criteria are particularly relevant to deposits that are not being pledged as collateral within the following 30 days and that will be converted into deposits and pledged as collateral to the bank dealing with the relevant credit or loan facilities. However, this will not apply if a credit or loan facility is given a term of more than 30 days and there is a clear and binding agreement that deposits cannot be withdrawn before the relevant terms end.
• Through the Draft Regulation, the Financial Services Authority (Otoritas Jasa Keuangan/OJK) has now expanded the obligations that apply to banks included in the group of banks based on Core Capital 1, aside from foreign banks, whenever calculating and reporting LCR in accordance with the following timeline: 1) Daily LCR calculation on 1 October 2024; 2) Submission of monthly LCR reports by the end of October 2024; and 3) Publication of quarterly LCR calculations and values ​​at the end of December 2024.

 

6. Draft Circular of the Financial Services Authority on the Application of Sharia Governance by Sharia Commercial Banks  and Sharia Business Units

Enforcement Date: -

Summary:

• Membership candidates for the Sharia Supervisory Boards (Dewan Pengawas Syariah – “DPS”) of Sharia Commercial Banks (Bank Umum Syariah – “BUS”) and Sharia Business Units (Unit Usaha Syariah – “UUS”) (collectively referred to as “Banks”) must secure approvals from the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) through fit-and-proper tests that evaluate the following factors: 1) Integrity; 2) Competency; and 3) Good reputation. Once formally appointed, DPS members are required to fulfill several duties that have been broadly classified into the following categories: 1) Supervision; 2) Advisory Roles; 3) Reporting; 4) Opinions on Product Innovation; 5) Consultations; and 6) Additional Duties.
• The sharia governance functions of Banks have been divided into three main areas: 1) Sharia Compliance; 2) Sharia Risk Management; and 3) Sharia Internal Audits. Each function is associated with specific roles and responsibilities and may be established as separate units or as part of existing compliance, risk management or internal audit units under the relevant directors.
• Banks must complete external reviews of their sharia governance on an annual basis at least, which should be performed by accountants and/or public accounting firms that are registered with the OJK. Reviews should evaluate the effectiveness of the following aspects: 1) Sharia Governance Processes; 2) DPS Functions and Support Functions; 3) Sharia Compliance Function; and so forth. Reports should be drawn up from the results of said external reviews and should be submitted online through the OJK’s reporting system.
• For more information, see ILB No. 4896.

 

Capital Market

7. Rule No. VI-D – Decree of the Board of Directors of PT Kustodian Sentral Efek Indonesia No. KEP-0027/DIR/KSEI/0524 on Service Fees for the KSEI Electronic General Meeting System (eASY.KSEI)

Enforcement Date: 31 May 2024

Summary:

• In return for the use of the electronic general shareholders meeting (rapat umum pemegang saham elektronik – “e-RUPS”) system, as provided by PT Kustodian Sentral Efek Indonesia (“KSEI”) (collectively referred to as “eASY.KSEI”), issuers of securities and non-collective custodian public companies which are designated and registered as users of eASY.KSEI for equity securities (collectively referred to as “Users”) are now required to pay service fees by the due dates that are specified in monthly invoices.
• The service fees per e-RUPS execution range from Rp. 9,750,000 to Rp. 22 million, as determined based on the market value of Users as of the relevant recording dates. However, if an e-RUPS is canceled, then additional cancellation fees of either Rp. 500.000 or Rp. 1.5 million will apply based on the period of notice given.
•  In order to promote the service, KSEI is currently offering the following discounts that are applicable during specific periods: 1) A 25% discount for e-RUPS that are registered between 1 June 2024 and 31 May 2025; and 2) a 15% discount for e-RUPS that are registered between 1 June 2025 and 31 May 2026. (Dictum 4)

 

8. Rule I-X - Decree of the Indonesian Stock Exchange Board of Directors No. Kep-00076/BEI/06-2024 of 2024 on the Placement of Equity Securities Listings on the Special Board

Enforcement Date: 21 June 2024

Summary:

• The Indonesia Stock Exchange has amended Rule I-X on the Placement of Equity Securities Listings on the Special Monitoring Board. This new regulation focuses on updating the conditions and criteria for the listing of companies on the Special Monitoring Board and the requirements for their removal.
• Key adjustments include new criteria for the placement of listed companies on the Special Monitoring Board that emphasize share prices, liquidity and compliance with listing rules. Notably, listed companies with low levels of liquidity or consistently low share prices over three-month periods now face placement on the Special Monitoring Board. In addition, a number of exceptions have also been introduced for companies that distribute dividends during the previous year.
• The removal conditions have also been revised, allowing companies to be removed from the Special Monitoring Board once they meet specific liquidity and compliance thresholds or following the distribution of dividends. One of these significant changes has also now reduced the period for automatic removals due to trading suspensions from 30 days to seven trading days.
• For more information, see ILB No. 4892.

 

9. Decree of the Board of Directors of PT Kustodian Sentral Efek Indonesia No. KEP-0027/DIR/KSEI/0524 on Service Fees for KSEI Electronic General Meeting System Services

Enforcement Date: 31 May 2024

Summary:

• Issuers of securities and non-collective custodian public companies that are designated and registered as Users of the Electronic General Meeting of Shareholders (Rapat Umum Pemegang Saham Elektronik – “e-RUPS”) system provided by PT Kustodian Sentral Efek Indonesia (“KSEI”) (collectively referred to as “eASY.KSEI”) are required to pay service fees to KSEI whenever they utilize eASY.KSEI services. Said payments must be completed before the due dates that are specified in monthly invoices. In this regard, KSEI is offering discounts of up to 25% on e-RUPS execution service fees for e-RUPS that are registered with eASY.KSEI between 1 June 2024 and 31 May 2025.
• The aforementioned e-RUPS execution service fees are determined based on the market value of users as of the relevant recording dates and range from Rp. 9,750,000 (for users with market values of less than Rp. 500 billion) up to Rp. 22 million (for users with market values of more than Rp. 2 trillion).
• Moreover, any users who decide to cancel their e-RUPS execution will be subject to cancellation fees that range from Rp. 500,000 (for cancellation notifications that are sent at least one calendar day prior to the commencement of the relevant e-RUPS) to Rp. 1,500,000 (for cancellation notifications that are sent on the day of the relevant e-RUPS).
• Any users who fail to settle their service fees by the due date will be subject to the imposition of a late payment penalty. Said penalties are calculated at a rate of 0.5% of the relevant invoiced amount per calendar day after the due date, with the maximum penalty being capped at 100% of the total invoiced amount, excluding any applicable taxes.
• For more information, see ILB No. 4887.

 

10. Draft Regulation of the Financial Services Authority on the Development and Strengthening of Investment Management

Enforcement Date: -

Summary:

• The Draft Regulation features six chapters that cover 18 articles. If ultimately enforced, the Draft Regulation will repeal and replace various currently applicable prohibitions that apply to mutual fund investment managers, as featured under several existing OJK frameworks.
• Broadly speaking, the Draft Regulation states that any loans that are received through loan recipient mutual funds are required to meet the following requirements: 1) Must be for repurchase and repayment transactions; 2) All loans should take the form of funds; 3) Must be short-term loans with maximum loan periods of one month; 3) The maximum loan amount is set at 10% of the value of the relevant mutual fund portfolio. In this regard, the aforesaid mutual funds are prohibited from receiving any loans from parties that are affiliated with relevant investment managers.
• Meanwhile, the Draft Regulation states that any loans that are provided by mutual funds must take the form of securities through the Clearing and Guarantee Institution, while any such loaned securities must meet the following requirements: 1) The amount of any loaned securities must not exceed more than 30% of the relevant net assets at any given time; 2) Must be listed through a stock exchange in Indonesia; 3) May be reacquired by the relevant mutual funds at any given time; 4) The mutual funds should receive collateral in the form of funds or securities.
• In addition to the above requirements, the Draft Regulation also obliges all mutual funds that invest in foreign mutual fund securities to fulfill a minimum of 15% of the net asset values of the relevant mutual funds, while each foreign mutual fund must not exceed 10% of the net asset value. In this regard, the Draft Bill also mandates that investments in foreign mutual fund securities should be carried out in countries that have become members of the International Organization of Securities Commissions (IOSCO) and that have ratified the Multilateral Memorandum of Understanding Concerning Consultation and Cooperation and the Exchange of Information (IOSCO MMOU).

 

11. Draft Regulation of the Financial Services Authority on the  Issuance of the Indonesian Sharia Securities List and Overseas Sharia Securities List

Enforcement Date: -

Summary:

• Generally speaking, the Draft Regulation will feature seven chapters that cover 36 articles. The Draft Regulation states that the list of Indonesian sharia securities will include: 1) Sharia securities in the form of sharia shares, including preemptive rights and warrants issued by sharia issuers and sharia public companies (collectively referred to as “Sharia Shares Issued by Issuers and Public Companies”); 2) Sharia Shares Issued by Issuers and Public Companies that do not state any activities or business types, management methods and/or services and that are provided based on sharia principles through the capital market, provided that issuers or public companies fulfill certain conditions (i.e. the relevant main business activities must align with sharia principles within the capital market and transactions must align with sharia principles within the capital market. Meanwhile, the interest-based total debt compared to total assets must not exceed 33.33% and total interest and non-halal income compared to total business income must not exceed 5%); and 3) Other types of securities (e.g. non-share sharia securities that are issued through public offerings).
• Meanwhile, overseas sharia securities may comprise sharia securities that take the following forms: 1) Sharia shares that are traded through overseas stock exchanges; 2) Sukuk shares that are traded through overseas stock exchanges; 3) Sharia commercial bonds (surat berharga) with maturities (jatuh tempo) of a minimum of one year that are traded overseas; and 4) Other types of overseas sharia securities.

 

12. Draft Regulation of the Financial Services Authority of 2024 on the Development and Strengthening of Issuers, Public Companies and Capital Market Supporting Professionals

Enforcement Date: -

Summary

•  Broadly speaking, the Draft Regulation has now adjusted the implementation of the business activities of issuers and public companies, particularly in terms of provisions that specifically address public offerings and registration statements, buybacks of shares in public companies as a result of the cancellation of securities listings by the stock exchange due to significant conditions or events that have a negative impact on business continuity, changes in company status, disclosures of information or material facts, and the positions of public shareholders during liquidation.
• One adjustment that has been made is the obligation for issuers and public companies to submit information reports to the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”). Said reports, as originally featured under Regulation of the OJK No. 31/POJK.04/2015 on Disclosures of Material Information and Facts by Issuers and Public Companies, must now be submitted by the end of the working day following the day on which any material information or facts come to light.
• The Draft Regulation also requires all relevant professions to be included as supporting capital-market professionals including: 1) Public accountants; 2) Legal consultants; 3) Notaries; and so forth, while said parties should secure registration certificates from the OJK. In order to secure a registration certificate, said professionals must fulfill several requirements, which include: 1) Must have never been convicted and/or proven to have committed a criminal offense within the financial sector; 2) Must have good morals and moral standing; 3) Must have never been listed on the bad credit and/or financing list.

 

13. Draft Regulation of the Financial Services Authority of 2024 on the Development and Strengthening of Securities Transactions and Institutions

Enforcement Date: -

Summary

• When the Draft Regulation comes into force, the stock exchange, clearing and guarantee institutions, and deposit and settlement institutions will be allowed to provide other services that are approved by the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”), on condition that they do not conflict with applicable Laws and take risk management and the mitigation of any risks that may arise into consideration.
• Under the Draft Regulation, the OJK will have the right to determine conditions of difficulty that endanger the continuity of business activities for market organizers through capital markets, stock exchanges, clearing and guarantee institutions, depository and settlement institutions, and/or securities companies. Said determinations will be stipulated through considerations of the following elements: 1) Risk profile; 2) Governance; 3) Profitability; and 4) Capital.
•  In carrying out business activities, the OJK also mandates that market organizers operating within the capital market, stock exchange, clearing and guarantee institutions, deposit and settlement institutions and/or securities companies should conduct self-assessments of risk profiles using a risk-based approach at least once a year, as well as make updates at any time if this is deemed necessary.

 

14. Draft Regulation of the Financial Services Authority of 2024 on the Implementation of Risk Management and Assessments of the Health Levels of Investment Managers

Enforcement Date: -

Summary

• In an effort to adequately deal with the development of and complexities associated with investment managers’ business and risk profiles, the Financial Services Authority is currently preparing a Draft Regulation which addresses the obligation of investment managers to maintain and/or manage their soundness levels through the integrated implementation of the prudential principle and risk management. This should ensure the effective carrying out of business activities.
• In essence, every investment manager is required to have a risk management policy in place, as determined by their board of directors and approved by their board of commissioners. This policy should encompass several elements including: 1) Comprehensive risk management strategy; 2) Determining the use of risk identification, measurement, monitoring and control methods, as well as risk management information systems; 3) Procedures for determining risk limits and tolerances; and so forth.
• Moreover, investment managers are also required to assess their health levels through the application of a risk-based approach using the self-assessment method. Said self-assessments must be carried out at least once a year and updated if necessary, and must also be reported to the OJK.

 

15. Draft Regulation of the Financial Services Authority of 2024 on Mutual Fund Assessments and Investment Manager Assessments

Enforcement Date: -

Summary

• Under the Draft Regulation, the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) has now clarified that investment managers are allowed to use the results of mutual fund assessments and/or investment manager assessments when carrying out their activities, provided that they use the correct phrases, use valid fund fact sheets and use any such results in accordance with material facts.
• Mutual fund appraisers and investment managers must secure business licenses from the OJK. In order to secure said licenses, business actors should submit applications to the OJK.
• Broadly speaking, mutual fund assessments and/or investment manager assessments can only be submitted by investment managers based on written agreements between mutual fund appraisers and investment managers. Moreover, the overall assessment process must include certain stages at the least, including: 1) Presentation of the relevant assessment methodology; 2) Carrying out of surveys and the collection and researching of various information related to assessments; and 3) Processes of analysis and initial determination of assessment.

 

Employment

16. Decree of the Minister of Manpower No. 104 of 2024 on the Stipulation of Indonesian National Competency Standards for the Category of the Provision of Accommodation and Food and Beverages Main Groups of the Provision of Food and Beverages Within the Home/Food Stall Sector

Enforcement Date: 21 May 2024

Summary

• The Decree stipulates Indonesian National Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) for the category of provision of accommodation and food and beverages main category of provision of food and beverages within the home/food stall (rumah/warung makan) sector, which can be used by the following relevant parties for reference purposes: 1) Educational institutions (e.g. provision of information for program development); 2) Business actors (e.g. assisting in recruitment, working assessments and the development of training programs); and 3) Organizers of testing and certification institutions (e.g. preparation of packages for certification programs and the organization of training and certification). Details of the SKKNI are comprehensively elaborated upon in the Appendix to the Decree.
• A total of 13 competence units are listed under the Appendix to the Decree, including units that address the following areas: 1) Development of home/food stall business concept designs; 2) Management of house/food stall business permits; 3) Promotion of food products and services; 4) Serving of customers in line with principles of excellent service; and 5) Maintaining of customer service quality; and so forth.

 

17. Decree of the Minister of Manpower No. 106 of 2024 on the Stipulation of Indonesian National Competency Standards for the Category of Rental and Leasing Activities Without Option Rights, Employment, Travel Agents and Other Business Support Main Group of the Activities of Service Providers Within the Buildings and Landscaping (Cleaning Services) Sector

Enforcement Date: 21 May 2024

Summary

• The Decree stipulates Indonesian National Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) for the category of rental and leasing activities without option rights, employment, travel agents and other business support main group of activities of service providers within the buildings and landscaping (cleaning services) sector, which can be used by the following relevant parties for reference purposes: 1) Educational institutions (e.g. provision of information for program development); 2) Business actors (e.g. assistance with recruitment, working assessments and the development of training programs); and 3) Organizers of testing and certification institutions (e.g. preparation of packages for certification programs and the organization of training and certification). Details of the SKKNI are comprehensively elaborated upon in the Appendix to the Decree.
• A total of 38 competence units are listed under the Appendix to the Decree, including units that address the following areas: 1) The carrying out of work in different socio-cultural environments; 2) Handling of discovered items; 3) Design of a master cleaning program; 4) Polishing of the surfaces of dry floors (dry buffing); and 5) Handling of non-medical hazardous and toxic waste.

 

18. Decree of the Minister of Manpower No. 107 of 2024 on the Stipulation of Indonesian National Competency Standards for the Category of the Provision of Accommodation and Food and Beverages Main Groups of the Provision of Food and Beverages Within the Catering Services Sector

Enforcement Date: 21 May 2024

Summary:

• The Decree stipulates Indonesian National Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) for the category of the provision of accommodation and food and beverages main groups of the provision of food and beverages within the catering services sector, which can be used by the following relevant parties for reference purposes: 1) Educational institutions (e.g. provision of information for program development); 2) Business actors (e.g. assisting in recruitment, working assessments and the development of training programs); and 3) Organizers of testing and certification institutions (e.g. preparation of packages for certification programs and the organization of training and certification). Details of the SKKNI are comprehensively elaborated upon in the Appendix to the Decree.
• A total of 42 competence units are listed under the Appendix to the Decree, including units that address the following areas: 1) Determinations of food service business systems; 2) Designing of menus to match the market needs; 3) Preparations for food service business contract tenders; 4) Food preparation in accordance with specific dishes and traditional requirements; 5) Preparation of vegetable dishes, dishes made from flour and dishes containing eggs; and so forth.

 

19. Decree of the Minister of Manpower No. 108 of 2024 on the Stipulation of Indonesian National Competence Standards for the Category of Arts, Entertainment and Recreation Main Group of Sports and Other Recreational Activities Sector Within the Tour Guides Recreational Parks Sector

Enforcement Date: 21 May 2024

Summary

• The Decree stipulates Indonesian National Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) for the category of arts, entertainment and recreation main groups of sports and other recreational activities sector within the tour guides recreational parks sector, which can be used by the following relevant parties for reference purposes: 1) Educational institutions (e.g. provision of information for program development); 2) Business actors (e.g. assistance with recruitment, working assessments and the development of training programs); and 3) Organizers of testing and certification institutions (e.g. preparation of packages for certification programs and the organization of training and certification). Details of the SKKNI are comprehensively elaborated upon in the Appendix to the Decree.
• A total of 29 competence units are listed under the Appendix to the Decree, including units that address the following areas: 1) Collection of data and information on recreational parks; 2) Preparations for flows of tourists/visitors at recreational parks; 3) Handling of tourist complaints during tourist activities in recreational parks; 4) Provision of information services and assistance on recreational park tourism; and 5) Operation of basic digital media equipment by recreational park tour guides.

 

20. Decree of the Minister of Manpower No. 109 of 2024 on the Stipulation of Indonesian National Competence Standards for the Category of Rental and Leasing Activities Without Option Rights, Employment, Travel Agents and Other Business Support Main Categories of Office Administration Activities, Office Support Activities and Other Business Support Activities Within the Professional Administrative Sector

Enforcement Date: 21 May 2024

Summary

• The Decree stipulates Indonesian National Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) for the category of rental and leasing activities without option rights, employment, travel agents and other business support main categories of office administration activities, office support activities and other business support activities within the professional administrative sector, which can be used by the following relevant parties for reference purposes: 1) Educational institutions (e.g. provision of information for program development); 2) Business actors (e.g. assistance with recruitment, working assessments and the development of training programs); and 3) Organizers of testing and certification institutions (e.g. preparation of packages for certification programs and the organization of training and certification). Details of the SKKNI are comprehensively elaborated upon in the Appendix to the Decree.
• A total of 85 competence units are listed under the Appendix to the Decree, including units that address the following areas: 1) Organization of duplication and the collection of documents; 2) Creation of simple documents and worksheets; 3) Planning of an organization’s administrative management; 4) Processing of colleague and customer complaints; and 5) Operation of software applications.

 

21. Decree of the Minister of Manpower No. 117 of 2024 on the Stipulation of Indonesian National Work Competency Standards for the Categories of Professional, Scientific and Main Classes of Technical Activities of Architectural and Engineering Activities; Analysis and Technical Testing Within the Oil-and-Gas Testing Laboratories Sector

Enforcement Date: 14 June 2024

Summary:

• The Indonesian National Work Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) that apply within the oil-and-gas testing laboratories sector are set out under the Appendix to this Decree and will now serve as a reference during the drawing up of national qualification levels and the organization of education and training programs, as well as in relation to competence certification. It should be noted that the SKKNI will be subject to a review process every five years or whenever such a process is deemed necessary.
• A total of 12 relevant competence units are outlined under the Appendix to the Decree, including: 1) Application of safety, occupational health (K3) and environmental protection within oil-and-gas testing laboratories; 2) Operational planning of oil-and-gas testing laboratories; 3) Testing of natural gas samples in accordance with standards; 4) Performance of issues analysis in laboratories; 5) Supervision of the quality of testing results; 6) Testing of industrial water oil-and-gas in accordance with standards.

 

22. Decree of the Minister of Manpower No. 118 of 2024 on the Stipulation of Indonesian National Work Competency Standards for the Category of Mining and Quarrying Main Group of Support Activities for Mining Occupational Health and Safety Within the Oil-and-Gas Industrial Sector

Enforcement Date: 14 June 2024

Summary:

• The Indonesian National Work Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) that apply in relation to occupational health and safety within the oil-and-gas industrial sector are set out under the Appendix to this Decree and will now serve as a reference during the drawing up of national qualification levels and the organization of education and training programs, as well as in relation to competence certification. It should be noted that the SKKNI will be subject to a process of review every five years or whenever such a process is deemed necessary.
• A total of 31 relevant competence units are outlined under the Appendix to the Decree, including: 1) Application of safe working procedures within the workplace; 2) Implementation of work permits within the oil-and-gas industry; 3) Operation of self-contained breathing apparatus; 4) Management of incident reporting and recording; 5) Operation of gas testing equipment within the oil-and-gas industry; 6) Planning of water distribution systems for firefighting purposes within the oil-and-gas industry; 8) Handling of oil spills within the oil-and-gas industry; 9) Emergency response planning within the oil-and-gas industry; 10) Application of forcible entry activities.
•  It should also be noted that this Decree has now simultaneously repealed and replaced the previous frameworks on SKKNI for occupational health and safety within the oil-and-gas industrial sector, as set out under Decrees of the Minister of Manpower No. 106 of 2023 and No. 267 of 2015. All education, training programs and competence certification that relate to supporting business activities for occupational health and safety within the oil-and-gas industrial sector must be brought into line with the SKKNI outlined under this Decree within six months of its date of enforcement.

 

23. Decree of the Minister of Manpower No. 119 of 2024 on the Stipulation of Indonesian National Work Competency Standards for the Category of Rental and Leasing Activities Without Option Rights, Manpower, Travel Agencies and Other Supporting Business Activities Main Group of Other Private Employment Training Within the Experiential Learning Sector

Enforcement Date: 14 June 2024

Summary:

•  The Indonesian National Work Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) that apply in relation to the experiential learning sector are set out under the Appendix to this Decree and will now serve as as a reference during the drawing up of national qualification levels and the organization of education and training programs, as well as in relation to competence certification. It should be noted that the SKKNI will be subject to a process of review every five years or whenever such a process is deemed necessary.
• A total of 47 relevant competence units are outlined under the Appendix to the Decree, including: 1) Conducting of client needs analysis for experiential learning; 2) Determinations of experiential learning categories based on client needs; 3) Development of materials for experiential learning activities; 4) Establishment of cooperation with work partners; 5) Fostering of collaborations within different social environments; 6) Formulation of direction for experiential learning activities; 7) Preparation of resources for experiential learning activities; 8) Application of standards of ethics and etiquette within the workplace; 9) Anticipation of risk in relation to experiential learning activities; 10) Communicating in foreign languages.
•  It should also be noted that this Decree has now repealed and replaced the previous framework on SKKNI within the field of experiential learning facilitators, as set out under Decree of the Minister of Manpower and Transmigration No. 329 of 2011. All education and training programs, as well as competence certification that relate to supporting business activities within the experiential learning sector, must be brought into line with the SKKNI outlined under this Decree within six months of its enforcement.

 

24. Decree of the Minister of Manpower No. 120 of 2024 on the Stipulation of Indonesian National Work Competency Standards for the Category of Rental and Leasing Activities Without Option Rights, Manpower, Travel Agencies and Other Supporting Business Activities Main Group of Travel Agencies, Tour Operators and Other Reservation Services Within the Event Activities Sector

Enforcement Date: 14 June 2024

Summary:

• The Indonesian National Work Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) that apply within the event activities sector are set out under the Appendix to this Decree and will now serve as as a reference during the drawing up of national qualification levels and the organization of education and training programs, as well as in relation to competence certification. It should be noted that the SKKNI will be subject to a process of review every five years or whenever such a process is deemed necessary.
• A total of 54 relevant competence units are outlined under the Appendix to the Decree, including: 1) Trends and issues research within the context of planned events; 2) Development of event concepts; 3) Seeking information on tourism and creative economy industries; 4) Analysis and determinations of the feasibility of event concepts; 5) Development of creative design plans for events; 6) Development of concepts for event activities; 7) Coordination of event venues; 8) Design and determination of techniques for layouts, flows, stage setups, sound, lighting, visuals and decorations for events; 9) Integration of creative and technical production knowledge into event management processes; 10) Creation and development of promotions/marketing and communications strategies for events.
•    It should also be noted that this Decree has now repealed and replaced the previous framework on SKKNI that addressed reservation services within the event activities sector, as set out under Decree of the Minister of Manpower No. 208 of 2023. All education and training programs, as well as competence certification that relates to supporting business activities within the event activities sector, must be brought into line with the SKKNI outlined under this Decree within six months of its date of enforcement.

 

25. Decree of the Minister of Manpower No. 121 of 2024 on the Stipulation of Indonesian National Work Competency Standards for the Category of Agriculture, Forestry and Fisheries Main Group of Fisheries Within the Arowana Fish Farming Management (Scleropages spp.) Sector

Enforcement Date:

Summary:

• The Indonesian National Work Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) that apply within the arowana fish farming management sector are set out under the Appendix to this Decree and will now serve as as a reference during the drawing up of national qualification levels and the organization of education and training programs, as well as in relation to competence certification. It should be noted that the SKKNI will be subject to a process of review every five years or whenever such a process is deemed necessary.
• A total of 35 relevant competence units are outlined under the Appendix to the Decree, including: 1) Selections of arowana fish farming locations; 2) Assessments of arowana fish farming production capacities; 3) Preparation of infrastructure for arowana fish rearing; 4) Management of arowana fish breeder selections; 5) Preparation of containers and media for arowana fish rearing; 6) Marketing of arowana fish; 7) Handling of licensing in relation to fish utilization permits; 8) Implementation of restocking processes; 9) Handling of confiscated arowana fish; 10) Monitoring of the health of arowana fish.

 

26. Decree of the Minister of Manpower No. 122 of 2024 on the Stipulation of Indonesian National Work Competency Standards for the Category of Professional, Scientific and Technical Activities Main Group of Other Professional, Scientific and Technical Activities of Fisheries Management Through an Ecosystem Approach (P3E) Within the Inland Waters Sector

Enforcement Date: 19 April 2024

Summary:

• The Indonesian National Work Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) that apply to fisheries management through an ecosystem approach within the inland waters sector are set out under the Appendix to this Decree and will now serve as a reference during the drawing up of national qualification levels and the organization of education and training programs, as well as in relation to competence certification. It should be noted that the SKKNI will be subject to a process of review every five years or whenever such a process is deemed necessary.
•  A total of 31 relevant competence units are outlined under the Appendix to the Decree, including: 1) Preparation of scope identification materials within inland waters; 2) Determinations of boundary areas/units within inland waters; 3) Analysis of stakeholders and their connections within inland waters; 4) Identification of fishing resources and their environments; 5) Preparation of data in relation to emerging issues and determinations of problems based on domain; 6) Identification of priority issues and fish resource problems; 7) Identification of priority environmental issues and fish resource problems; 8) Identification of priority social and economic issues and problems; 9) Identification of priority governance issues and fisheries problems; 10) Verifications of data for objective formulation and management based on key indicators.

 

27. Decree of the Minister of Manpower No. 123 of 2024 on the Stipulation of Indonesian National Work Competency Standards for the Category of Rental and Leasing Activities Without Option Rights, Manpower, Travel Agencies and Other Supporting Business Activities Main Group of Office Administration, Office Support Activities and Other Supporting Business Activities Within the Meetings, Incentives, Conferences and Exhibitions (MICE) Sector

Enforcement Date: 24 April 2024

Summary:

•  The Indonesian National Work Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) that apply in relation to the meetings, incentives, conferences and exhibitions (“MICE”) sector are set out under the Appendix to this Decree and will now serve as as a reference during the drawing up of national qualification levels and the organization of education and training programs, as well as in relation to competence certification. It should be noted that the SKKNI will be subject to a process of review every five years or whenever such a process is deemed necessary. (Dictums 2 and 4)
•   A total of 114 relevant competence units are outlined under the Appendix to the Decree, including: 1) Planning of MICE event concepts; 2) Development of meeting and conference programs; 3) Development of bid proposals; 4) Designing of exhibition layouts; 5) Development of exhibition design and construction techniques; 6) Creation of promotional displays in booths; 7) Processing of financial transactions; 8) Management of business relationships; 9) Preparation and monitoring of budgets; 10) Integration of creative and technical production knowledge into the management process.
•  It should also be noted that this Decree has now repealed and replaced the previous framework on the SKKNI for supporting business activities within the MICE sector, as set out under Decree of the Minister of Manpower No. 58 of 2018. All education and training programs, as well as competence certification that relate to supporting business activities within the MICE sector, must be brought into line with the SKKNI outlined under this Decree within six months of its enforcement.

 

28. Decree of the Minister of Manpower No. 130 of 2024 on the Stipulation of Indonesian National Work Competency Standards for the Category of Processing Industry Main Group of Computer, Electronic and Optical Products Industries Within the Semiconductor Sector

Enforcement Date: 20 June 2024

Summary:

• The Indonesian National Work Competency Standards (Standar Kompetensi Kerja Nasional Indonesia – “SKKNI”) that apply in relation to the semiconductor sector are set out under the Appendix to this Decree and will now serve as as a reference during the drawing up of national qualification levels and the organization of education and training programs, as well as in relation to competence certification. It should be noted that the SKKNI will be subject to a process of review every five years or whenever such a process is deemed necessary.
•   A total of 48 relevant competence units are outlined under the Appendix to the Decree, including: 1) Operation of backgrind equipment; 2) Product packaging; 3) Setting up and adjustment of wafer mount equipment parameters; 4) Conducting of optical visual inspections in relation to Front of Line (FOL) products; 5) Performance of visual inspections of incoming wafers; 6) Operation of automated optical inspections; 7) Measurement of coating thicknesses resulting from solder plating process outputs; 8) Conducting of quality testing of plating resulting from solder plating process outputs; 9) Measurement of package shifts from molding process outputs; 10) Creation of assembly build sheets for semiconductors.

 

29. Bill on the Welfare of Mothers and Children During the First Thousand Days of Life Phase

Enforcement Date: -

Summary:

• Maternity leave will be available for a minimum of three months and a maximum of six months under certain conditions while working mothers who exercise their right to enjoy maternity leave will receive their salaries in the following amounts: 1) Full salary during the first three months; 2) Full salary during the fourth month; and 3) 75% of their full salary during the fifth and sixth months.
• Employers are required to provide healthcare facilities, lactation rooms and daycare facilities within their office environments, as well as provide support for working mothers in the form of adjusted work assignments, working hours and/or workplaces.
• For more information, see ILB No. 4881.

 

Energy

30. Regulation of the Government No. 25 of 2024 on the Amendment to Regulation of the Government No. 96 of 2021 on the Implementation of Mineral and Coal-Mining Business Activities

Enforcement Date: 30 May 2024

Summary:

• Newly featured under the Amendment, Religious Social Organization (Organisasi Kemasyarakatan Keagamaan) Businesses (“Organization-Owned Businesses”) are now included among the various types of parties that are entitled to secure prioritized Special Mining Business License Area (Wilayah Izin Usaha Pertambangan Khusus – “WIUPK”) offerings. Said prioritized offerings will remain valid for five years after the enforcement of this Amendment. In this regard, offered areas should be formerly utilized under Coal Contracts of Work (Perjanjian Karya Pengusahaan Pertambangan Batubara – “PKP2B”),  while issued special mining business licenses (Izin Usaha Pertambangan Khusus – “IUPK”) and/or ownerships of Organization-Owned Businesses are prohibited from being transferred to any other parties without the securing of prior approvals from the Minister of Energy and Mineral Resources (“Minister”).
• The Amendment now includes subsidiaries of State-Owned Enterprises (Badan Usaha Milik Negara – “BUMN”) along with BUMNs as parties that are entitled to be granted repeated 10-year extensions of their Mining Business Licenses (Izin Usaha Pertambangan/IUP) and/or IUPK (collectively referred to as “Mining Permits”). Moreover, an additional criterion has now been added for the securing of 10-year extensions for issued Mining Permits and applies to issued Mining Permits that involve integration into processing and/or refining facilities (for Mining Permits holders) or development and/or utilization activities (for IUPK holders).
• While Regulation 96/2021 currently states that previously issued production-operation IUPK will remain valid until their expiration dates, the Amendment has now clarified that said production-operation IUPK will act as a Continuation of the Operation of Contracts of Work (Kontrak Karya)/PKP2B (collectively referred to as “Operation Continuation”). In this regard, IUPK that qualify as Operation Continuation are now eligible to be granted permit extensions. Said extensions will be granted in line with the availability of reserves and will be evaluated every 10 years.
• For more information, see ILB No. 4879.

 

31. Regulation of the Minister of Energy and Mineral Resources No. 6 of 2024 on the Completion of the Construction of Facilities for Metal Minerals in Indonesia

Enforcement Date: 1 June 2024

Summary:

• The planned export ban on certain metal minerals that was previously set to come into force on 31 May 2024 has now been pushed back to 1 January 2025, enabling business actors who have reached the commissioning stage of their domestic refinery facilities to export certain products in accordance with their HS Codes until 31 December 2024.
• The business actors who are eligible to enjoy the export relaxation include: 1) Holders of Mining Business Licenses (Izin Usaha Pertambangan – “IUP”) or Special IUP (“IUPK”) for the operational production of copper, iron, lead and zinc metal commodities (collectively referred to as “License Holders”); 2) Holders of IUPK for the operational production of copper; and 3) Holders of business licenses for the processing and/or refining of copper, which produces anode mud.
• In order to prove that the above-described business actors have already entered the Commissioning Stage, verification reports drawn up by independent verifiers that address the physical development of refinery facilities must be submitted. Said reports should include: 1) A certificate of readiness for commissioning; and 2) A statement from an independent verifier confirming that the refinery facility in question has entered the Commissioning Stage. In addition, License Holders must also enclose a full set of required documents, which encompass: 1) A refinery facilities development plan, as adjusted to meet the 31 December 2024 completion target; 2) An approved annual work plan and budget (rencana kerja dan anggaran biaya/RKAB); and 3) An updated reserves estimation report.
• For more information, see ILB No. 4882.

 

32. Decree of the Minister of Energy and Mineral Resources No. 111.K/MB.01/MEM.B/2024 on Application, Evaluation and Approval Guidelines for the Re-Opening of Reclaimed Areas after Mineral and Coal Mining Business Activities

Enforcement Date: 21 May 2024

Summary:

• The enforcement of the Decree has consequently resulted in the repeal and replacement of various matters relating to the reopening of reclaimed lands, as featured under Appendix VI, Section D of Decree No. 1827 K/30/MEM/2018 (“Decree 1827/2018”). In this regard, as detailed under Appendix to the Decree, the following matters that relate to the reopening of reclaimed lands must now adhere to the latter framework: 1) Provision of replacement lands; 2) Plans for the reopening of activities on reclaimed land; and 3) Procedures for the submission of evaluations and approvals for land reopenings.
• Holders of the following types of mining permits are entitled to submit applications for the reopening of reclaimed lands: 1) Mining Business Licenses (Izin Usaha Pertambangan – “IUP”); 2) Special IUP (IUPK); 3) Contracts of Work (Kontrak Karya/KK); and 4) and Coal Contracts of Work (Perjanjian Karya Pengusahaan Pertambangan Batubara/PKP2B).
• The above-outlined mining permit holders may reopen reclaimed lands by preparing replacement lands with areas that meet the following conditions: 1) Planned reopened land areas of at least three times the size of the equivalent Mining Business Permit Area (Wilayah Izin Usaha Pertambangan – “WIUP”) or Special WIUP (“WIUPK”) for reclamation expansions and two times the area size of the WIUP or WIUPK for revegetation; and 2) Area sizes three times those of planned reopened lands (if the WIUP or WIUPK sized areas outlined in point [1] above are unavailable).

 

33. Decree of the Minister of Energy and Mineral Resources No. 113.K/MB.01/MEM.B/2024 on References Prices for Metal Minerals and References Prices for Coal for June 2024

Enforcement Date: 19 June 2024

Summary:

• As detailed under Appendix 1 to the Decree, the applicable References Prices for Metal Minerals (Harga Mineral Logam Acuan - “HMA”) should be utilized as a reference during calculations of applicable Metal Mineral Benchmark Prices (Harga Patokan Mineral Logam/HPM) for June 2024.  In this regard, the HMA apply to 20 types of metal mineral commodities, including: 1) Nickel (US$ 18,962.11/DMT); 2) Cobalt (US$ 27,718.68/DMT); 3) Lead (US$ 2,181.68/DMT); 4) Zinc (US$ 2,875.42/DMT); 5) Aluminium (US$ 2,539.08/DMT).
• Meanwhile, the applicable References Prices for Coal (Harga Batubara Acuan - “HBA”) are comprehensively detailed under Appendix II to the Decree and should be utilized as a reference during calculations of Coal Benchmark Prices (Harga Patokan Batubara/HPB). The new HBA include: 1) Coal (with 6,322 Gross as Received [“GAR”]): US$ 123.00/ton; 2) Coal I (with 5,300 GAR): US$ 88.65/ton; 3) Coal II (with 4,100 GAR): US$ 54.79/ton; and 4) Coal III (with 3,400 GAR): US$ 35.82/ton.

 

34. Decree of the Director-General of Electricity No. 279.K/TL.03/DJL.2/2024 on Quotas for the Development of Rooftop Solar-Power Plant Systems by PT Perusahaan Listrik Negara (Persero) from 2024 to 2028

Enforcement Date: 27 May 2024

Summary:

• The Decree mandates that PT Perusahaan Listrik Negara (“PLN”) should establish quotas for the development of Rooftop Solar-Power Plant Systems (Sistem Pembangkit Listrik Tenaga Surya Atap – “Rooftop PLTS Systems”) based on clustering, with reference to the Rooftop PLTS Systems quotas that have been set for each province, as comprehensively outlined in the Appendix to the Decree. (Dictum 2)
• With regards to said clustering-based quotas for Rooftop PLTS Systems, PT PLN is required to: 1) Submit a report to the Director-General of Electricity; and 2) Publish the information on PT PLN’s website, application and/or social media platforms within ten working days of this Decree coming into force. (Dictum 3)

 

Environment

35. Regulation of the Head of the Nusantara Capital City Authority No. 1 of 2024 on Environmental Approvals for Nusantara Capital City

Enforcement Date: 29 February

Summary

• This Regulation requires Environmental Approvals (“Approvals”) to be secured for all business plans relating to and/or activities that are carried out within the Nusantara Capital City (Ibu Kota Nusantara – “IKN”) authority area and that will have an impact on the environment. Said Approvals will become prerequisites for the issuance of Business Licenses or Government Approvals
•  Approvals themselves will be issued after the following documents have first been secured: 1) Environmental Impact Analysis (Analisis Dampak Lingkungan – “Amdal”); 2) Environmental Management Efforts and Environmental Monitoring Efforts (Upaya Pengelolaan Lingkungan Hidup dan Upaya Pemantauan Lingkungan Hidup – “UKL-UPL”); and 3) Statements of Environmental Management and Monitoring Capability (Surat Pernyataan Kesanggupan Pengelolaan dan Pemantauan Lingkungan Hidup – “SPPL”).
• Any failure to secure the appropriate Approvals will render the relevant businesses/activities liable to the imposition of administrative sanctions in accordance with relevant Laws and Regulations

 

General Financial Services

36. Circular of the Financial Services Authority No. 5/SEOJK.07/2024 of 2024 on the Sandbox Mechanism and the Development of Innovations

Enforcement Date: 3 June 2024

Summary:

• At its core, the objective of the sandbox provided by the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) is to ensure that financial innovations and technological developments are generated in line with principles of accountability and adequate risk management. The scope of the sandbox encompasses the provision of various facilities, including the following: 1) Facilities that are used to implement period-based trials of limited scope; 2) Facilities that are used to receive clarification regarding applicable OJK requirements (e.g. in consultation with the OJK); 3) Facilities that are used to develop innovative financial technologies in their initial states; and 4) Other forms of facilities, including the provision of activities that promote networking among the relevant stakeholders within the digital financial ecosystem, as well as the provision of required data and information.
• Prospective participants must first submit their participation applications to the OJK. Furthermore, prospective participants that are financial services institutions are required to secure recommendations from their relevant OJK supervisors. Innovations must meet the following criteria, among others, in order to be deemed eligible for participation in the sandbox: 1) Must be characterized by an aspect of novelty that distinguishes the innovation in question from existing technologies within the financial sector; 2) Must offer benefits, ease of service or added-value to users; 3) The innovation must be ready for trial and development.
• Processes of trial and development in relation to innovations may be carried out once prospective participants have received an official participation approval letter from the OJK. Throughout the sandbox process, participants will actively engage in the trial and development of their innovations, which must be implemented in accordance with the Trial Plan that they submitted to the OJK. During the process, participants are obliged to disclose all information and/or documents that relate to the organization of the sandbox to the OJK and are also obliged to participate in all activities that specifically relate to the organization of the sandbox. Additionally, for purposes of consumer protection, participants who are participating in the sandbox must publicly disclose that their innovations are undergoing processes of trial and development.

 

37. Circular of the Financial Services Authority No. 6/SEOJK.07/2024 on the Registration of Organizers of Technological Innovations Within the Financial Sector

Enforcement Date: 3 June 2024

Summary:

• Prospective organizers of Technological Innovations Within the Financial Sector (Inovasi Teknologi Sektor Keuangan – “ITSK”) are required to register themselves with the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) once they have shown that they are in compliance with the mechanism that is currently facilitating trials to assess the feasibility and reliability of the ITSK (“Sandbox”) phase or have been recommended by the OJK for such registrations. In addition to the organizers of ITSK (“Organizers”), parties that organize equivalent types of ITSK as either of these two parties are also required to register with the OJK.
• The registration of Organizers commences with the submission of registration forms, along with four classifications of required data and information that specifically relate to the following matters: 1) Institution and governance of the Organizer; 2) Business model; 3) Information technology; and 4) Partnership. The documents outlined in point (3) above include documents that relate to the application of Information-Security Management Systems (Sistem Manajemen Keamanan Informasi/SMKI). Said documents may take the form of certificates from the International Organization for Standardization/International Electrotechnical Commission Standard 27001 on Information Security, Cybersecurity and Privacy Protection — Information Security Management Systems — Requirements (“ISO/IEC 27001”).
• Submitted applications and documents are required to undergo OJK verifications and analysis, while the OJK will issue an approval or rejection for a submitted registration application within 20 business days of deeming a submitted application and set of documents complete and correct. In this regard, Organizers are subsequently required to submit applications as Electronic Systems Organizers (Penyelenggara Sistem Elektronik/PSE) to the Ministry of Communication and Informatics within 30 business days of the issuance of their registration marks.
• For more information, see ILB No. 4889

 

38. Draft Regulation of the Financial Services Authority on the Management of Professional Certification Agencies Within the Financial Services Sector

Enforcement Date: -

Summary:

• The Draft Regulation addresses a broad range of arrangements spanning nine chapters and 45 articles, including the chapters that address the following subjects: 1) Work competence standards within the financial services sector; 2) Professional certification agencies (lembaga sertifikasi profesi – “LSP”); 3) Granting of recommendations; 4) Registration of LSP; 5) LSP obligations and prohibitions; 6) LSP monitoring and evaluation; and 7) Administrative sanctions.
• The Draft Regulation has been created with the following purposes: 1) Strengthening of the sustainable professional certification ecosystem within the financial sector through the application of Indonesian National Work Competency Standards (Standar Kompetensi Kerja Nasional Indonesia /SKKNI) and Indonesian National Qualifications Framework (Kerangka Kualifikasi Nasional Indonesia/KKNI) during the organization of professional certification; 2) Strengthening of LSP governance; 3) Provision of references and guidelines for use by LSP during recommendation submissions and registrations; 4) Encouraging LSP to organize professional certification in accordance with the needs and development of the financial services industry; and 5) Provision of references and guidelines for use by the financial services industry during the development of human resources and through professional LSP certification.

 

Infrastructure and Construction Services

39. Decree of the Head of the National Public Procurement Agency No. 201 of 2024 on Guidelines for the Organization of Accreditation for Training Institutions for Procurements of Goods/Services

Enforcement Date: 28 May 2024

Summary:

• The Decree features a set of guidelines that specifically address the organization of accreditation and which should be utilized as a reference during the accreditation of training institutions for procurements of goods/services (lembaga penyelenggaraan pelatihan pengadaan barang/jasa – “LPPBJ”). Generally speaking, the guidelines cover various organizational matters that relate to LPPBJ, the organization of accreditation and reaccreditation, assessors and assessed parties, as well as monitoring and evaluation.
• Under the guidelines, LPPBJ accreditation categories have been divided up as follows: 1) Accredited A: for scores that range from 85 - 100; and 2) Accredited B: for scores that range from 70 - 85. Accredited LPPBJ will be entitled to enjoy a number of rights, which include various different types of training facilities (e.g. training curriculum, list of procurement facilitators, access rights to the Human Resources Development and Guidance Portal/PPSDM).
• Generally speaking, the accreditation process breaks down as follows: 1) LPPBJ submits an application for accreditation; 2) A response is provided by the National Public Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah – “LKPP”) within seven business days of the application being received; 3) The LPPBJ completes and submits the accreditation instrument within 5 - 10 calendar days; 4) An initial document review is completed; 5) A desk assessment by the assessor team is completed; 6) The assessor team makes a visit; 7) A pre-meeting of the final evaluator team is held; 8) A meeting of the final evaluator team is held; and 10) An accreditation decree and certificate are issued by the Head of the LKPP.

 

40. Decree of the Head of National Public Procurement Agency No. 205 of 2024 on Centralization and Management of Goods/Services Procurement Database in Electronic Procurement System

Enforcement Date: 12 June 2024

Summary:

• In an effort to improve overall security in relation to information, data accuracy and attempts to resolve database storage infrastructure limitations, the Head of the National Public Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa Pemerintah – “LKPP”) has decided to introduce a number of provisions that specifically address the centralization and management of the goods/services procurement database through the electronic procurement system (Sistem Pengadaan Secara Elektronik – “SPSE”) through the issuance of the Decree.
•  The Decree mandates that the database that contains results relating to the procurement of goods/services via the above-mentioned SPSE (“Procurement Database”) will now be centralized and managed by the Directorate of Digital Procurement Systems at the LKPP. In this regard, the process of centralizing the Procurement Database will commence with the migration of databases from the relevant goods/services procurement working units (Unit Kerja Pengadaan Barang/Jasa – “UKPBJ”) to the LKPP.
• While the Decree mandates that relevant UKPBJ should provide access to the LKPP in terms of the above-described database migration process, this new framework also states that said UKPBJ will continue to have access to the database.  Moreover, the migration process will commence within 60 calendar days of the enforcement date of the Decree (which falls on 12 August 2024).
• It should also be noted that any servers located in the relevant UKPBJ will also continue to be utilized for the following purposes: 1) SPSE app hosting; 2) Database storage backup; or 3) Other requirements of relevant central/regional governmental agencies.

 

Land and Property

41. Regulation of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 15 of 2024 on the Prevention of Land Cases

Enforcement Date: 24 April 2024

Summary

• This Regulation sets out the various steps that have to be followed in order to prevent the emergence of land cases, as follows: 1) Case identification (i.e. finding out the causes of any cases that originate as a result of internal and/or external factors, inventorying and compiling of case identification results); 2) Review of case identification results (i.e. assessment of the relevant status level based on urgency, significance, development, complexity and/or losses incurred, reporting of the results of the case identification review); and 3) Preparation of recommendations (i.e. preparation of recommendations as a set of minutes that are submitted to the relevant minister, director general, inspector general, heads of regional offices and heads of land offices).
• In order to minimize the occurrence of land cases, the Regulation also establishes a strategy for the prevention of land cases that incorporates several measures, including: 1) Increasing the quality of human resources; 2) Improving information systems; 3) Conducting regulatory reviews; 4) Socialization efforts; and/or 5) Coordination and cooperation efforts.

 

42. Technical Guidelines of the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency No. 5/JUKNIS-HK.02.01/VI/2024 on the Integration of Climate Change Adaptation into Spatial Planning

Enforcement Date: 6 June 2024

Summary:

• In an effort to achieve sustainable development in relation to spatial planning, the Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency (“Minister”) has introduced a set of guidelines that should be used in order to assist central and regional governments during the integration of climate change adaptation into the spatial planning process.
• At their core, these climate change adaptation guidelines encompass the following spatial planning stages: 1) Identification and integration of climate change information into the data collection stage; 2) Integration of climate change analysis into the data processing and analysis stage; and 3) Integration of climate change adaptation studies into the concept formulation stage.

 

Natural Resources

43. Regulation of the Government No. 22 of 2024 on  Treatment of Income Tax on Income From the Placement of Foreign Exchange Resulting from the Export of Natural Resources on Certain Monetary Instrument and/or Financial Instrument

Enforcement Date: 20 May 2024

Summary:

• In a bid to support the mandatory placement of foreign export proceeds (Devisa Hasil Ekspor – “DHE”) deriving from natural resources (Sumber Daya Alam – “SDA”), any incomes that are received or obtained by exporters (either individuals or business entities) from the placement of DHE SDA into certain monetary and/or financial instruments (collectively referred to as “Instruments”) in Indonesia will be subject to the imposition of final PPh. In this regard, said imposition will only apply to DHE SDA, while the eligible Instruments must fulfill the following criteria: 1) Must be classified as banking, financial and/or monetary instruments; 2) Relevant funds must derive from DHE SDA; 3) Must have a minimum placement period of one month; and 4) Must not have been traded through the secondary market (i.e. relevant exporters may not sell or transfer the ownerships of Instruments to other parties).
• The list of Instruments eligible for the imposition of final PPh breaks down as follows: 1) Deposits issued by banks for which the relevant sources of funds are derived from the special account of DHE SDA through the same bank; 2) Term deposits for conventional open-market operations in foreign currencies at Bank Indonesia (“BI”); 3) Promissory notes issued by the Indonesian Export Funding Agency (Lembaga Pembiayaan Ekspor Indonesia – “LPEI”) which fund resources deriving from the DHE SDA special account for LPEI; and 4) Other instruments, as stipulated by the Minister of Finance.
• The final PPh for DHE SDA is to be calculated by multiplying the final PPh rate by the tax base. Said final PPh should be settled through a tax withholding mechanism by certain parties and carried out during the payment of interest, discounts or other similar rewards. In this regard, the applicable PPh rates themselves range from 0% (for placements of six months or more) to 10% (for placements of between one and three months) and are classified into rates that are applicable to Instruments in foreign and Rupiah currencies.
• For more information, see ILB No. 4885.

 

44. Circular of the Minister of Marine Affairs and Fisheries No. B.933/MEN-KP/V/2024 of 2024 on the Issuance of Fishing Vessel Crew Certificates

Enforcement Date: 27 May 2024

Summary:

• In terms of the transfer of authority for the issuance of fishing vessel crew certificates from the Director-General of Capture Fisheries to the Head of Counseling and the Development of Human Resources at the Marine and Fisheries Agency, eight types of expert certificates fall into the fisheries vessels crew expertise certificate category, while there are ten kinds of fisheries vessel skills certificates.
• The requirements that have to be met by vessels in order to secure certificates can still be implemented in accordance with the provisions set out under Regulation of the Minister No. 33 of 2021, which features various provisions that specifically relate to fish capture logbooks, the onboard monitoring of fish capture vessels and fish transportation vessels, inspections, evaluations and the marking of fishing vessels, as well as the management of fishing-vessel crewmembers.
• The various types of and formats for fisheries vessel crew competence certification can be accessed through the following link: https://bit.ly/3WvkAML. 

 

45. Decree of the Minister of Maritime Affairs and Fisheries No. 40 of 2024 on the Second Amendment to Decree of the Minister of Maritime Affairs and Fisheries No. 85 of 2021 on Reference Prices for the Use and/or Restricted Use of Protected Fish Species for the Calculation of Tariffs for Types of Non-Tax State Revenue

Enforcement Date: 22 May 2024

Summary

• As detailed under the Appendix to the Decree, the applicable reference prices for the use of protected and/or restricted fish species when calculating tariffs for types of non-tax state revenue have been specified for 61 types of fish across an overall price range of Rp. 3,000 – Rp. 1 million. The reference prices have also been divided into the following three categories: 1) Levies on the use of natural habitats for trading activities; 2) Domestic trade; and 3) Foreign trade. Price details can be found in the Appendix to the Decree.

 

46. Regulation of the National Food Agency No. 4 of 2024 on the Amendment to Regulation of the National Food Agency No. 6 of 2023 on Government Purchase Prices and Price Deductions for Unhulled Rice and Rice

Enforcement Date: 5 June 2024

Summary:

• This Regulation adjusts the government purchase prices (harga pembelian pemerintah – “HPP”) and price deductions (rafaksi) for unhulled rice and rice in line with current developments in product cost structures and distribution. (Recitals)
• The current HPP per kilogram for unhulled rice and rice, as determined under the Regulation, break down as follows: 1) Unhulled rice: Rp. 6,000 - Rp. 7,400; and 2) Rice: Rp. 11,000.
• Meanwhile, the price deductions per kilogram for purchases of resources that do not meet the HPP quality standards break down as follows: 1) Unhulled rice: Rp. 300 - Rp. 750; and 2) Rice: Rp. 450 – Rp. 1,400. These prices and deductions are determined based on place of purchase and the quality content of unhulled rice and rice. (Appendices)

 

Non-Banking Financial Services

47. Draft Regulation of the Financial Services Authority on Development of the Quality of Human Resources of Financing Institutions, Venture Capital Companies, Micro-Finance Institutions, and Other Financial Services Institutions

Enforcement Date: -

Summary:

• Financing companies, venture-capital companies (Perusahaan Modal Ventura – “PMV”), micro-financing institutions and other types of financial services institutions (collectively referred to as “PVML”) are required to manage and develop their human resources sustainably based on the employment cycle by taking into account the prioritization and distribution of human resources competencies.
• Human resources development mandates for PMVL have been classified into four categories that break down as follows: 1) Organizational structure (e.g. dedicated functions for human resources development, fulfillment of sustainability requirements and outsourced human resources); 2) Funding of human resources development (i.e. mandatory allocation of 2.5% of total manpower funding over the previous year to PMVL that do not fall into the micro-financing institution and medium-scale, non-micro-financing PVML institution categories); 3) Implementation of human resources development (e.g. in relation to the PVML sector, non-PVML sectors [e.g. banking, capital market, information technology and so forth] and other work competency developments); and 4) Planning, policies and monitoring (e.g. establishment of systems and procedures for the sustainable development of PMVL human resources).
• Various elements of PMVL’s human resources (e.g. the memberships of boards of directors and boards of commissioners, as well as employees who are assigned to various critical functions) are required to be certified across a wide range of sectors in respect to their positions. Said certification applies within the following sectors: 1) Financing; 2) Risk management; 3) Collection; 4) Finance; 5) Appraisal; and 6) Financial technology. This mandatory certification must be secured from Professional Certification Agencies (Lembaga Sertifikasi Profesi/LSP) that have been registered with the OJK.
• For more information, see ILB No. 4891.

 

48. Draft Regulation of the Financial Services Authority on the Amendment to Regulation of the Financial Services Authority No. 17/POJK.05/2017 on Procedures for the Imposition of Administrative Sanctions Within the Insurance Sector and the Blocking of the Assets of Insurance Companies, Sharia Insurance Companies, Reinsurance Companies and Sharia Reinsurance Companies

Enforcement Date: -

Summary:

• The Draft Regulation retains the nine forms of administrative sanctions that may be imposed in relation to violations of Law No. 40 of 2014 on Insurance (e.g. written reprimands, restrictions on business activities, fines and so forth), as originally outlined under Regulation of the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) No. 17/POJK.05/2017 (“Regulation 17/2017”). However, the Draft Regulation also now includes a reduction in company soundness levels on the aforementioned list of available administrative sanctions.
• Furthermore, these administrative sanctions can be imposed upon various specific types of companies and business actors, including: 1) Insurance and reinsurance companies; 2) Insurance/reinsurance broker companies and insurance loss appraisal companies; 3) Actuarial consultants and appraisers; 4) Insurance broker consultants, reinsurance brokers and insurance agents; and 5) Shareholders, controlling parties and other executive positions in insurance companies.
• The Draft Regulation has also adjusted procedures for the imposition of sanctions on insurance companies, reinsurance companies, insurance broker companies, reinsurance broker companies and insurance loss appraisal companies.
• For more information, see ILB No. 4888.

 

49. Draft Regulation of the Financial Services Authority on Information Technology-Based Joint Funding Services

Enforcement Date: -

Summary:

• The Draft Regulation has updated the maximum funding limits as follows: 1) A maximum consumption funding limit of up to Rp. 2 billion and 2) A maximum productive funding limit of up to Rp. 5 billion. Organizers of Information Technology-Based Joint Funding Services (Layanan Pendanaan bersama Berbasis Teknologi Informasi – “LPBBTI”) who engage in productive funding of Rp. 2 billion - Rp. 5 billion will be required to choose a TWP90 of a maximum of 5% for the previous six months and will not have sanctions will not have sanctions that involve business activity restrictions imposed upon them by the Financial Services Authority.
• If the Draft Regulation ultimately comes into force, then the Organizers of LPBBTI will be required to fulfill certain requirements, which include: 1) Financial soundness level requirements (i.e. capital ratio, default level quality, management, profitability and liquidity); and 2) Requirement to prepare and apply an anti-fraud strategy, as well as anti-money laundering (Tindak Pidana Pencucian Uang/TPPU), prevention of terrorism funding (Tindak Pidana Pendanaan Terorisme/TPPT) and prevention of funding of the proliferation of weapons of mass destruction (Pendanaan Proliferasi Senjata Pemusnah Massal/PPSPM) programs.
• For more information, see ILB No. 4894.

 

Pharmaceutical, Healthcare and Food and Drugs Standards

50. Regulation of the Minister of Health No. 7 of 2024 on Amounts, Requirements, and Procedures for the Imposition of Tariffs of Up to Rp 0.00 (Zero Rupiah) or 0% (Zero Percent) for Types of Non-Tax State Revenues in the Form of Issuance Service of Registration Certificates Applicable at the Ministry of Health

Enforcement Date: 5 July 2024

Summary:

• In order to be deemed eligible to enjoy the above-mentioned Rp. 0.00 or 0% (Zero Percent) tariff, medical or health-related personnel must have already secured registration certificates. Furthermore, one of the following conditions must also apply: 1) Must be domestic medical or health-related personnel graduates with valid or expired registration certificates; 2) Must be doctors/dentists who have finished their internships; or 3) Must be foreign graduates medical or health-related personnel who have completed processes of assimilation. 
• It should be noted that the following parties are ineligible to enjoy the Rp. 0.00 or 0% (Zero Percent) tariff: 1) Medical or health-related personnel who are applying for the first-time issuance of registration certificates; 2) Medical or health-related personnel who are Indonesian citizens, who graduated overseas and who will undergo processes of assimilation; or 3) Medical or health-related personnel who are foreign nationals.
• It also should be noted that the issuance of registration certificates to medical and health-related personnel should be carried out based on applications that are submitted electronically by said personnel to specific council health workers.

 

51. Circular of the Director-General of Health Services No. HK.02.02/D/ 40065 /2024 on Increased Inpatient Beds Capacities for Medical Rehabilitation Services in Hospitals and Proposals for Health Service Facilities to Become Mandatory Reporting Recipient Institutions (IPWL) for Addicts of Narcotics, Psychotropics and Other Addictive Substances (NAPZA)

Enforcement Date: 21 May 2024

Summary:

• Against a backdrop of an increasing number of addicts of narcotics, psychotropics and other addictive substances (“NAPZA”), there is a growing need for appropriate facilities and accessible medical rehabilitation services in relation to inappropriate NAPZA use, including the misuse of NAPZA. (latar belakang)
• In relation to this issue, healthcare facilities are required to consider the following: 1) Hospitals which have been stipulated as Mandatory Reporting Recipient Institutions (Institusi Penerima Wajib Lapor – “IPWL”), guardian health-service facilities and methadone maintenance therapy program satellites are encouraged to increase their medical rehabilitation inpatient capacities and beds in order to handle inappropriate NAPZA usage in accordance with the needs of hospitals.
• Public health centers (puskesmas) and hospitals should be proposed and stipulated as IPWL and should have fulfilled the various requirements set out under Regulation of the Minister of Health No. 4 of 2020 on IPWL Organization and its Amendment. Furthermore, IPWL services must also be coordinated by the Directorate-General of Health Services and the Directorate-General of Public Health in relation to the following matters: 1) Identification and availability of inpatient capacities at hospitals through available applications; 2) Identification of public health centers which offer NAPZA-related medical rehabilitation services; 3) Availability of existing devices, facilities and infrastructure; and 4) Availability of experienced human resources for deployment in NAPZA medical rehabilitation services.

 

52. Regulation of the National Food Agency No. 2 of 2024 on the Supervision of the Fulfilment of Safety, Quality, Nutritional, Labeling and Advertising Requirements for Fresh Food

Enforcement Date: 31 May 2024

Summary:

• The Head of the National Food Agency has the authority to supervise the fulfillment of fresh food requirements, which encompass safety, quality, nutrition, labeling and advertising. Fresh foods are defined as taking the following forms: 1) Unprocessed fresh foods that can be consumed directly or indirectly; 2) Foods that have undergone minimum amounts of processing (e.g. washing, peeling, cooling, cutting, drying, mixing, grinding, coating); or 3) Foods that have not undergone any processing and/or undergone minimal amounts of processing involving the addition of food additives.
• Seven elements are addressed by the safety requirements, specifically: 1) Hygiene and sanitation; 2) Residues; 3) Genetically engineered food products; 4) Food irradiation; 5) Food packaging; 6) Food additives; and 7) Use of other materials. In addition, the quality requirements encompass: 1) Organoleptic criteria; 2) Physical conditions; and/or 3) Fresh food composition.
•  Meanwhile, the nutrition requirements encompass: 1) Nutritional content; and/or 2) The addition of nutritional substances. In terms of labeling and advertising requirements, all such materials must contain correct information.
• If the Head of the National Food Agency discovers any violations of the above-outlined requirements, then relevant parties may be subject to the imposition of certain types of sanctions, including written warnings and withdrawals of food products from distribution.

 

53. Decree of the Director-General for the Prevention and Control of Disease  No. HK.02.02/C/1401/2024 on Guidelines For The Implementation of Outbreak Preparedness at Entry Points As Well As Ports and Airports That Serve Domestic Traffic Through Technical Implementation Units Within The Health Quarantine Sector

Enforcement Date: 2 May 2024

Summary:

• The Director-General for the Prevention and Control of Disease at the Ministry of Health (“Director-General”) has introduced a set of guidelines that specifically address the implementation of outbreak preparedness at entry points, ports and airports that serve domestic travel through technical implementation units operating within the health quarantine sector (“Guidelines”).
• As detailed comprehensively under the Appendix to the Decree, the above Guidelines will now serve as a reference for health quarantine officials during the monitoring of transportation vehicles, individuals and cargo arriving at the country’s entry ports and border crossing posts, as well as seaports and airports that serve domestic travel. However, it should also be noted that the Heads of the relevant Health Quarantine Technical Implementation Units are authorized to adjust the outbreak monitoring measures that are outlined in the Guidelines, as required.
• The Guidelines cover a wide range of outbreak monitoring aspects that apply to each of the aforementioned entry ports and broadly address the following matters: 1) Preparation (e.g. human resources, as well as facilities and infrastructure); 2) Monitoring measures (e.g. risk-factor based criteria, self-risk assessments, vehicles arriving from areas with outbreak cases and departure prerequisites); and 3) Applicable algorithm for the monitoring of subjects upon arrival.
• In terms of the abovementioned risk-factor-based criteria, the Guidelines have classified risk into three levels that break down as follows: 1) Low risk (i.e. arrivals from regions/countries with no known outbreak cases); 2) Medium risk (i.e. arrivals from regions/countries with outbreak cases but for which serious information has not yet been disclosed in any self-risk assessments); and 3) High risk (i.e. similar to the Medium Risk criteria but with outbreak risk factors having been identified in the relevant vehicles).

 

54. Draft Regulation of the National Agency of Drug and Food Control  on Guidelines for the Verification of Analysis Methods for Drugs and Drug Materials

Enforcement Date: -

Summary:

• If ultimately enforced, the guidelines for the verification of analysis methods for drugs and drug materials (“Guidelines”) will serve as a reference during verifications of analysis methods for drugs and drug materials (collectively referred to as “Drugs”) (i.e. procedures for analysis of the identities, purities physical properties and potentials of certain Drugs) (“Analysis Methods”). In this regard, Analysis Methods have been classified into four categories that address various analysis procedures that can be implemented in order to determine the following: 1) Main component content (including preservatives) of Drug formulations; 2) Impurities in Drug materials or degraded compounds in drug formulations; 3) Performance characteristics of Drug formulations; and 4) Ensuring the identities of analytes in samples.
• During verifications of Analysis Methods, several aspects need to be taken into consideration, which broadly include the following key elements, among others: 1) Qualified personnel; 2) Suitability of standard analysis methods; 3) Matrix effects; 4) Chromatographic conditions; 5) Different manufacturers’ profiles; 6) Drug formulation additives; 7) Analytical performance characteristics; and 8) Data stability.
• Performance characteristics essential for the verification of Analysis Methods are set to be determined and include: 1) Specificity; 2) Accuracy; 3) Precision; and 4) Sensitivity. Each of these characteristics is further defined through the application of specific determination methods and acceptable criteria in order to ensure the reliability and validity of the Analysis Methods used during Drug testing.
• For more information, see ILB No. 4886.

 

55. Draft Regulation of the National Agency for Drug and Food Control on the Amendment to Regulation of BPOM No … of 2024 on Standards for Good Drug Manufacturing Practice

Enforcement Date: -

Summary:

• The implementation of Good Drug Manufacturing Practices (Cara Pembuatan Obat yang Baik – “CPOB”) is mandatory for: 1) Pharmaceutical industries that engage in the manufacturing of drugs and/or drug materials; 2) Agencies that manufacture drugs in accordance with applicable Laws and Regulations; and 3) Agencies that manufacture radiopharmaceutical preparations.
• In terms of its scope and substance, it should be noted that this Draft Regulation only covers Annex I on the Manufacture of Sterile Products, which generally encompasses a number of CPOB Standards, specifically: 1) Pharmaceutical industry quality systems; 2) Buildings and facilities; 3) Technological barriers; 4) Requirements for clean rooms and clean air equipment; 5) Tools; 6) Supporting facilities (e.g. sanitation, gas and vacuum systems, etc.); 7) Personnel; 8) Production and special technologies applicable to sterilization; 9) Monitoring of environments and processes; and 10) Quality control.
• It should also be noted that the general CPOB framework is currently provided under Regulation of the National Agency for Drug and Food Control (Badan Pengawas Obat dan Makanan/BPOM)  No. 7 of 2024 on CPOB Standards.

 

56. Draft Decree of the Head  of the National Agency of Drug and Food Control on Information Standards of Drugs

Enforcement Date: -

Summary:

• Standards of drug-related information (“Information Standards”) should be utilized as a reference during the evaluation of all registered drug products (“Products”). In this regard, Product information is required to be outlined in the following documents: 1) Information on efficacy, safety and consumption instructions that are required to be understood by patients in relation to the consumption of Products (“Product Information for Patients”); and 2) Summaries of complete information or brochures that outline descriptions, efficacies and safety properties of Products based on clinical and non-clinical trials that are utilized by healthcare workers upon the drafting the Product Information for Patients outlined in point (1) above (“Product Characteristics Summaries”).
• The following principles should be applied during the drafting of Product Characteristics Summaries: 1) Outlined information must be written in clear and concise language; 2) Every section must include issues that relate to the main population for which the relevant Product is indicated; and 3) Utilized medical terms must be consistent. Meanwhile, the applicable principles for the drafting of Product Information for Patients include: 1) Must be consistent with those outlined in the relevant Product Characteristics Summaries; 2) Must refrain from utilizing complicated medical terms and language that may result in comprehension difficulties among patients; and 3) Information on the side effects of the Product must be classified based on the frequency and risk of such side effects.
• A total of 33 types of information are now required to be included in Product Characteristic Summaries, including: 1) The composition of drugs (name and properties of active substances); 2) Posology and method of administration; and 3) Physical and chemical incompatibilities of the Product. Meanwhile, a total of 21 types of information are now required to be included in Product Information for Patients, including: 1) Drug interactions that must be avoided when taking the drug; 2) Pregnancy and breastfeeding-related information; 3) Effects during driving and the operation of machinery; 4) Overdose and treatment options; and 5) Stability/limits of use after reconstitution or after a container has been opened.
• For more information, see ILB No. 4893.

 

Profession

57. Regulation of the Minister of Education, Culture, Research and Technology No. 19 of 2024 on Professional Teacher Training

Enforcement Date: 3 June 2024

Summary

• In order to fulfill the various pedagogical, personal, social and professional competencies that have to be achieved by teachers, the Ministry of Education, Culture, Research and Technology has now stipulated Professional Teacher Training (Pendidikan Profesi Guru – “PPG”). PPG will be conducted by the Educational Personnel Educational Institution (Lembaga Pendidikan Tenaga Kependidikan – “LPTK”) through the PPG study program in accordance with applied educational sciences set by the Minister.
• In essence, PPG will be implemented in the following three stages: 1) Acceptance of prospective participants; 2) PPG Learning; and 3) Testing of the competencies of participants. Acceptance of prospective participants will be carried out through processes of national selection that will consider mastery of substance within the field of science and the underlying motivation to become teachers. PPG learning will be conducted through a curriculum that has been prepared by LPTK based on graduate learning outcomes.
•   Meanwhile, the participant competency testing stage will be conducted through both written and performance testing. In this regard, participants who are declared to have passed the competency test will be issued an Education Certificate by LPTK. It should also be noted that any prospective teachers or teachers who have already secured international educator certification do not have to participate in the PPG.

 

Tax and Non-Tax Charges

58. Regulation of the Minister of Finance No. 37 of 2024 on Services Tariffs for the Public Service Agency of the Educational Testing Management Centre at the Ministry of Education, Culture, Research and Technology

Enforcement Date: 21 June 2024

Summary:

• The new Services Tariffs for the Public Service Agency of the Educational Testing Management Centre at the Ministry of Education, Culture, Research and Technology (collectively referred to as “Service Tariffs”) encompass: 1) Main Service Tariffs (i.e. objective academic test tariff, non-objective academic test tariff and objective non-academic tariff); and 2) supporting Service Tariffs (e.g. tariffs for land, buildings, facilities and rooms, use of tools and machinery, laboratory and language development, examinations, education, training, broadcasting and intellectual property).
• The main Service Tariffs are comprehensively elaborated upon in the Appendix to the Regulation.

 

59. Regulation of the the Governor of DKI Jakarta No. 16 of 2024 on Granting of Relaxations, Deductions, Exemptions and Ease of Payment for Land and Building Tax for Rural and Urban Areas for 2024

Enforcement Date: 4 June 2024

Summary:

• Three forms of exemptions to the payable Rural and Urban Land and Building Tax (Pajak Bumi dan Bangunan Pedesaan dan Perkotaan – “PBB-P2”) for the 2024 tax period are now available for taxpayers in relation to PBB-P2 objects that meet certain criteria, and encompass 100% and 50% exemption rates, as well as exemptions in certain amounts that will aim to prevent increases in the PBB-P2 rate that exceed 25%. However, such PBB-P2 exemptions do not apply to PBB-P2 objects that have been expanded and/or if recordings of data derived from individual assessments for the 2024 tax period stipulation have been carried out.
• Taxpayers are entitled to submit applications to pay off their PBB-P2 in installments before 31 July 2024. Said installment payments are only available for PBB-P2 which must be settled during the 2024 tax year and arrears that date from the 2013 to 2023 tax years. In this regard, the following provisions are applicable: 1) The taxpayer in question is not permitted to submit any applications for any other Taxation Facilities upon receiving a Notification of Due Tax (Surat Pemberitahuan Pajak Terutang – “SPPT”) that is set to be paid in installments; 2) The payable PBB-P2 must amount to a minimum of Rp. 100 million; and 3) A maximum of 10 consecutive installments will be granted prior to the end of 2024.
• Four types of taxpayers will be 100% exempted from the imposition of administrative sanctions in relation to PBB-P2. Said sanctions encompass two types of administrative sanctions (i.e. installments and due payments of interest). Moreover, between 5% and 10% of tax leniency may be granted in relation to the payable PBB-P2 tariffs of taxpayers who have paid their taxes during the 2013 to 2024 period. However, any granted leniency does not eliminate the responsibility of such taxpayers to pay their PBB-P2.
• For more information, see ILB No. 4890.

 

60. Regulation of the the Governor of DKI Jakarta No. 17 of 2024 on Percentages of Tax Object Sales Values Used to Calculate Land and Building Tax in Rural and Urban Areas

Enforcement Date: 30 May 2024

Summary:

• Following the mandate introduced under Regional Regulation of the Province of Special Capital Region of Jakarta (Daerah Khusus Ibukota Jakarta – “DKI Jakarta”) No. 1 of 2024 on Regional Taxes and Regional Retribution (“Regulation 1/2024”), the Governor of DKI Jakarta (“Governor”) has decided to set applicable percentages for the sales values of tax objects (Nilai Jual Objek Pajak – “NJOP”), which can be used to calculate rural and urban land and building tax (Pajak Bumi dan Bangunan Pedesaan dan Perkotaan – “PBB-P2”), through the issuance of the Regulation.
• The following rates have now been set for the aforementioned NJOP for PBB-P2 calculations (after Non-Taxable NJOP [NJOPTKP] deductions have been completed): 1) For residential properties: 40%; and 2) For non-residential properties: 50%.
• In addition to the above rates, the Regulation has also clarified that the NJOP rate for PBB-P2 objects that comprise multiple buildings will be determined based on the areas of buildings that are dominantly utilized. Moreover, PBB-P2 objects that take the form of vacant land will be classified as non-residential PBB-P2 objects.
• It should also be noted that NJOP that are used to calculate PBB-P2 during the tax year prior to the enforcement of the Regulation will remain in line with the provisions that were previously applicable prior to the enforcement of the Regulation.

 

Technology, Media and Telecommunications

61. Regulation of the National Cyber ​​and Crypto Agency No. 4 of 2024 on the Implementation of Information Security Self-Assessments by Micro-, Small- and Medium-Scale Enterprises

Enforcement Date: 30 May 2024

Summary

• In an effort to prevent the emergence of cyber threats to and attacks on electronic systems, the National Cyber ​​and Crypto Agency (Badan Siber dan Sandi Negara – “BSSN”) has now introduced an information security self-assessment (“Self-Assessments”) requirement that should be completed through the use of the Paman Kami instrument by all micro-, small- and medium-scale enterprises as users of electronic systems (“Users”). Self-Assessments can be carried out in collaboration with central agencies, local governments and other stakeholders.
• Said Self-Assessments should encompass the following steps: 1) Socialization and instrument assistance; 2) Filling out of security implementation information; 3) Requesting verifications for Self-Assessment results; 4) Submission of Self-Assessment results; and 5) Monitoring and evaluation of Self-Assessments.
• Any Users who pass the Self-Assessment process will be issued Information Security Self-Assessment Certificates that will remain valid for two-year periods from their dates of issuance.

 

62. Draft Bill on the Organization of Special Telecommunications for Own Needs

Enforcement Date: -

Summary:

• The Draft Bill has been drawn up to implement provisions originally set out under Article 44 of Regulation of Government No. 46 of 2021 on Post, Telecommunications and Broadcasting and to accommodate technical arrangements that have been deemed in line with current requirements.
• At its core, the Draft Bill addresses the organization of special telecommunications systems that are capable of meeting the needs of the following parties: 1) Individuals; 2) Government agencies; 3) Special services; and 4) Legal entities.
• The Draft Bill addresses the securing of licenses for the organization of special telecommunications systems for use by government agencies and special services that utilize systems other than radiofrequency spectrum systems, as follows: 1) Principle permits; 2) Operational feasibility testing and operating permits; 3) Permit amendments; 4) Permit returns; and 5) Permit revocations.

 

Trade

63. Regulation of the Minister of Trade No. 11 of 2024 on the Amendment to Regulation of the Minister of Trade No. 23 of 2023 on Export Policies and Regulations

Enforcement Date: 1 June 2024

Summary

•  The Regulation has now adjusted the timeframe for the exporting of certain processed and/or refined mining products, which can now only be exported until 31 December 2024. Said processed and/or refined mining products breakdown as follows: 1) Copper concentrate with a content of 15% Cu or more; 2) Lead concentrate with a content of 56% Pb or more; 3) Zinc concentrate with a content of 51% Zn or more; and so forth. Details of the products are broken down in the Appendix to the Decree.
•  Moreover, the Regulation has now also adjusted the timeframe for the exporting of certain mining goods, which can only be exported starting 1 January 2025 for research and mining purposes, re-export purposes and/or export purposes for industrial products included in the category of mining products whose main raw materials originate from imports and/or scrap in the form of metal including: 1) Copper concentrate with a content of 15% Cu or more; 2) Lead concentrate with a content of 56% Pb or more; 3) Zinc concentrate with a content of 51% Zn or more; and so forth. Details of the goods addressed are broken down in the Appendix to the Decree.

 

64. Regulation of the Minister of Finance No. 38 of 2024 on the Stipulation of Exported Goods Subject to Export Duties and Export Duty Tariffs

Enforcement Date: 3 June 2024

Summary:

• The exported goods subject to export duty break down as follows: 1) Cocoa beans; 2) Palm oil, crude palm oil (“CPO”), and its derivatives; 3) Metal mineral processing products; and 4) Metal mineral products that meet certain criteria.
• The Regulation stipulates applicable export duty tariffs for the above-listed exported goods for each tariff post, as comprehensively listed under the Appendix to the Regulation. It should also be noted that calculations of export-duty tariffs are specifically determined by this regulation based on price references for exported goods.

 

65. Decree of the Minister of Trade No. 661 of 2024 on Export Benchmark Prices and Reference Prices for Agricultural and Forestry Products Subject to Export Duty

Enforcement Date: 1 June - 30 June 2024

Summary:

• The Decree stipulates Export Benchmark Prices (Harga Patokan Ekspor – “HPE”) for three categories of products, specifically: 1) Cacao Beans: 2) Timber; and 3) Leather. Meanwhile, a reference price for cacao beans of US$ 8,256.50/MT has now been set. Other products, along with their HPE and reference prices, are comprehensively listed under the Appendix to the Decree.

 

66. Decree of the Minister of Trade No. 662 of 2024  on the Reference Price for Crude Palm Oil Subject to Export Duty and Service Tariffs at the General Service Agency of the Palm-Oil Plantation Fund Management Agency

Enforcement Date: 1 June - 40 June 2024

Summary:

• The Decree stipulates a Crude Palm Oil (CPO) Reference Price of US$ 778,82/MT. This reference price will apply from 1 June until 30 June 2024.

 

67. Decree of the Minister of Trade No. 663 of 2024 on List of Brands of Refined, Bleached and Deodorized Palm Olein in Branded Packaging and Packaged in Net Weights of Less Than or Equal to 25kg

Enforcement Date: 1 June 2024

Summary:

• The list of domestic and foreign list of brands of packaged refined, bleached and deodorized palm olein products that are packaged in net weights of ≤ 25 kg (“Palm Olein Brands”) is comprehensively set out under Appendices I - II to the Decree and broadly includes the following data: 1) Domestic Palm Olein Brands: 794 brands; and 2) Foreign Palm Olein Brands: 2041 brands.
• It should be noted that the above-described list of Palm Olein Brands with the ex 1511.90.36 tariff post will be applicable between 1 June 2024 and 30 June 2024.

 

68. Decree of the Minister of Trade No. 781 of 2024 on Export Benchmark Prices for Mining Products Subject to Export Duty

Enforcement Date: 14 June - 30 June 2024

Summary:

• The Decree outlines the applicable Export Benchmark Prices (Harga Patokan Ekspor/HPE)  for a total of 269 mining products, as comprehensively listed under the Appendix to Decree 781/2024, including the following products with prices that range from US$/WE 20.39 to US$/WE 6,190.21: 1) Copper concentrate; 2) Laterite iron concentrate; 3) Lead concentrate; and 4) Zinc concentrate.

 

69. Decree of the Minister of Finance No. 19/KM.4/2024 on List of Export Prohibited Goods Based on Regulation of the Minister of Trade Number 10 of 2024 on the Amendment to Regulation of the Minister of Trade Number 22 of 2023 on Export Prohibited Goods

Enforcement Date: 1 June 2024

Summary:

• Through the issuance of Regulation of the Minister of Trade No. 10 of 2024 (“Regulation 10/2024”) on the Amendment to Regulation of the Minister No. 22 of 2023 on Goods Prohibited from Being Exported (“Regulation 22/2023”), the Minister of Trade has now postponed the export ban on five mining commodities (i.e. laterite iron concentrate, copper concentrate, zinc concentrate, lead concentrate and anode slime) from its originally planned introduction date of 1 June 2024 until 1 January 2025.
• In line with the enforcement of Regulation 10/2024, the Minister of Finance (“Minister”) has issued an updated list of goods that are prohibited from being exported based on the newly introduced framework of Regulation 10/2024 through the issuance of the Decree. As a consequence, the enforcement of Decree 19/2024 has resulted in the repeal and replacement of the previous list of goods prohibited from being exported, as set out under Decree of the Minister  No. 20/KM.4/2023 (“Decree 20/2023”).
• The list of goods that are prohibited from being exported is outlined comprehensively under the Appendix to the Decree, while this new framework affirms that any subsequently introduced Regulation that removes any items from the list of prohibited goods set out under the Decree will consequently result in the repeal and replacement of said framework.
• In comparison with Decree 20/2023, the more recent framework of the Decree continues to feature a total of 478 goods that are prohibited from being exported, as originally outlined under Decree 20/2023, while Decree 19/2024 primarily updates the dates for the commencement of the previously described export ban on five mining commodities.

 

70. Decree of the Minister of Finance No. 20/KM.4/2024  on List of Export Restricted Goods Based on Regulation of the Minister of Trade Number 11 of 2024 on the Amendment to Regulation of the Minister of Trade Number 23 of 2023 on Export Policies and Arrangements

Enforcement Date: 1 June 2024

Summary:

• Through the issuance of Regulation of the Minister of Trade No. 11 of 2024 (“Regulation 11/2024”) on the Amendment to Regulation of the Minister of Trade No. 23 of 2023 on Export Policies and Arrangements (“Regulation 23/2023”), the Minister of Trade has declared that mining products that derive from the processing and/or refining of five mining commodities (i.e. laterite iron concentrate, copper concentrate, zinc concentrate, lead concentrate and anode slime) are only permitted to be exported until 31 December 2024. These five mining commodities may only subsequently be exported for certain purposes (e.g. research and development and re-exportation) commencing 1 January 2025.
• In line with the enforcement of Regulation 11/2024, the Minister of Finance (“Minister”) has issued an updated list of goods that are export-restricted based on the newly introduced framework of Regulation 11/2024 through the issuance of the Decree. The enforcement of the Decree has resulted in the repeal and replacement of the previous list of export-restricted goods set out under Decree of the Minister No. 21/KM.4/2023 (“Decree 21/2023”).
• The new list of export-restricted goods is comprehensively outlined under the Appendix to the Decree, while this new framework affirms that any subsequently introduced Regulation that removes any items from the list of restricted goods set out under Decree 20/2024 will consequently result in the repeal and replacement of said framework.
•  In comparison with Decree 21/2023, the more recent framework of the Decree continues to feature a total of 1720 goods that are restricted from being exported, as originally outlined under Decree 21/2023. The Decree primarily updates the dates upon which the previously described export restrictions on five mining commodities will come into force.

 

71. Decree of the Minister of Trade No. 21/KM.4/2024 on Stipulation of Export Prices for Export Duty Calculations

Enforcement Date: 1 June - 30 June 2024

Summary:

• The Minister of Finance (“Minister”) has set the applicable export prices which should be used to calculate export duty on certain commodities through the issuance of Decree No. 21/KM.4/2024 (“Decree 21/2024”), which will remain in force between 1 June 2024 and 30 June 2024. However, the various export prices outlined under Decree 21/2024 will extend beyond this timeframe if new export prices have yet to be determined.
• Outlined comprehensively under Appendix A to Decree 21/2024, the applicable export prices for calculations of export duty on wood now break down as follows: 1) Veneer (ranging from US$ 550/M³ - US$ 800/M³); 2) Wood in chip or particle form (US$ 80/ton); 3) Chipwood (US$ 95/ton); and 4) Processed woods (US$ 500/M³ - US$ 4500/M³). Meanwhile, the export prices for leather commodities break down as follows: 1) Raw animal hides and skins (US$ 2.98 - US$ 5.81, as measured by the kilogram or piece); 2) Preserved animal hides and skins (US$ 1.10 - US$ 1.80 per square foot); and 3) Wet blue (US$ 1.20 - US$ 1.90 per square foot).
• In addition, Appendix B to Decree 21/2024 also sets an applicable export price of US$ 7,825 for calculations of export duty on cacao beans.However, the applicable export-duty tariffs for palm oil, cacao beans and crude palm oil (CPO) and its derivatives should be determined based on reference prices stipulated by the Minister of Trade.

 

72. Regulation of the National Food Agency No. 5 of 2024 on the Amendment to Regulation of the National Food Agency No. 7 of 2023 on Highest Retail Prices for Rice

Enforcement Date: 5 June 2024

Summary

• The Regulation has now clarified that the highest retail prices (Harga Eceran Tertinggi - “HET”) for rice will be determined based on the results of coordination meetings that are held at the ministerial or institutional levels and can be evaluated at any time by the National Food Agency (Badan Pangan Nasional – “BPN”). If a given set of evaluation results confirms a change in the HET for rice, as previously discussed during a coordination meeting, then this change will be further determined through the issuance of an official Decree of the Head of BPN.
• Currently, the HET for the Medium Rice category range from Rp. 12,500 - Rp. 13,500. Meanwhile, the HET for the Premium Rice category range from Rp. 14,900 - Rp. 15,800 and apply based on eight regional divisions.

 

Transportation and Logistics Services

73. Circular of the Director-General of Sea Transportation No. SE-DJPL 17 of 2024 on the Organization of Ship Manning Agency Business Licensing

Enforcement Date: 30 May 2024

Summary

• Broadly speaking, the Circular stipulates that the organization of ship manning agency business licensing will commence on 4 June 2024 in line with the provision of services relating to ship manning agency business activities through the SIMKAPEL application or public service application operated by the Directorate-General of Sea Transportation at the Ministry of Transportation.
• Moreover, ship manning agency business activity services may be provided to business actors that are planning to set up ship manning agency businesses and/or business actors who have secured business permits for recruitments and placements of ships’ crews on condition that they bring their operations into line with this Circular within three months of its enforcement date.
•  Through the Circular, heads of harbormaster offices and main port authorities, heads of harbormaster offices and Batam special port authorities, heads of harbormaster offices and port authorities, and heads of port management unit offices are now required to implement certification (sign on-off) in seafarers’ books and endorsements. The above-listed parties are also required to facilitate disputes relating to maritime work agreements outside of court between relevant disputing parties.

 

74. Circular of the Director-General of Sea Transportation No. SE-DJPL 18 of 2024 on the Obligation to Activate Automatic Identification Systems (AIS) and Other Activities Within Indonesian Waters

Enforcement Date: 5 June 2024

Summary:

•  In order to increase the safety and security of sailing and to protect the maritime environment, specifically during monitoring of the mandatory installation and activation of automatic identification systems (“AIS”), the optimization and supervision of the implementation of Regulation of the Minister of Transportation No. PM 18 of 2022 on the AIS for Vessels Sailing in Indonesian Water Areas has now been deemed necessary.
• The supervision of the obligation to activate and implement AIS for Indonesian-flagged vessels and foreign vessels that perform activities in Indonesian waters is the responsibility of the harbourmaster, who should meet this responsibility through sailing telecommunications facilities and infrastructure within navigation districts.
• In terms of these matters, different parties are required to carry out various tasks, including vessel owners, sailing company agents and vessel captains, who are required to implement the following measures: 1) Ensure the installation and activation of AIS as an obligation of Indonesian-flagged vessels and foreign vessels that perform activities within Indonesian waters for criteria class A and class B AIS; 2) Vessel captains must activate and provide correct information through AIS; 3) If AIS are not functioning, then vessel captains must record this in their log books and immediately inform the relevant coast stations (stasiun radio pantai – “SROP”) and/or vessel traffic services (“VTS”); 4) Vessel captains must report vessel activities through SROP and/or VTS; and 5) The performance of drifting and ship-to-ship transfer activities is prohibited without the securing of approvals from relevant harbourmaster.

 

75. Circular of the Director-General of Sea Transportation No. SE-DJPL 20 of 2024 on the Examination and Supervision of Sea Working Agreements on the Main Wages of Vessel Crews Working on Indonesian-Flagged Vessels Sailing in Indonesian Waters

Enforcement Date: 19 June 2024

Summary:

• As mandated under Regulation of the Minister of Transportation No. PM 58 of 2021 on the Certification of Maritime Labour Conventions, main wages should be paid by ships’ owners/operators to vessel crews on a regular basis and in full every month in accordance with the content of signed Sea Working Agreements (Perjanjian Kerja Laut – “PKL”) in rupiah using the Bank Indonesia medium exchange rate in accordance with relevant Laws and Regulations.
•  The examination and supervision of PKL on the main wages of vessel crews working for Indonesian-flagged vessels sailing in Indonesian waters should be undertaken.
• Various parties are entailed with various tasks in relation to the above-described matters, including owners/operators of vessels, who must provide main wages through a consideration of the relevant provincial minimum wages (UMP) that prevail in the locations of the signing of PKL, based on the lowest positions and excluding various allowances (e.g. overtime and leave pay). Owners/operators of any vessels that fail to comply with said provisions may be subject to the imposition of administrative sanctions in accordance with relevant Laws and Regulations.

 

76. Decree of the Director-General of Sea Transportation No. KP-DJPL 320 of 2024 on Guidelines for the Inspection of Indonesian-Flagged Ships Sailing Abroad under the Framework for the Enhanced Supervision of Ship Seaworthiness Compliance

Enforcement Date: 27 May 2024

Summary:

• In order to maintain Indonesia’s position in the whitelist category under the Tokyo Memorandum of Understanding, this Decree mandates that marine inspectors and/or state port-control officers, as well as vessel captains, should conduct inspections of Indonesian-flagged ships that will sail overseas prior to the securing of sailing approval letters (surat persetujuan berlayar). Said inspections must conducted in line with the official guidelines, which feature administrative and physical inspection checklists (“Checklists”) and the self-inspection form, as comprehensively set out under the Appendices to the Decree.
• The Checklists cover various compliance-related aspects, which are broadly divided into three categories: 1) Pre-boarding; 2) Onboard administrative inspection; and 3) Onboard physical inspection. Meanwhile, the self-inspection form comprises elements that address several different aspects, including: 1) Documentation and records; 2) Lifesaving equipment; 3) Fire-fighting appliances; 4) Navigation safety and communications; 5) Machinery and electrical; and so forth.

 

77. Decree of the Director-General of Sea Transportation No. KP-DJPL 327 of 2024 on the Implementation of the International Code of Safety for Ships Carrying Industrial Personnel (IP Code)

Enforcement Date: 30 May 2024

Summary:

• The Decree stipulates that Indonesian-flagged ships that comply with the International Code of Safety for Ships Carrying Industrial Personnel (“IP Code”) of IMO Resolution MSC.527 (106) will be issued industrial personnel safety certification. The aforementioned IP Code and the template for industrial personnel safety certificates are both comprehensively set out under the Appendices to the Decree.
• The IP Code takes effect on 1 July 2024, however, any ships that have been certified under the Code of Safety for Special Purpose Ship (SPS Code) may continue to operate until their respective certificates expire.

 

78. Decree of the Director-General of Air Transportation No. PR 20 DJPU of 2024 on Technical Guidelines for the Issuance of Aviation Security Personnel Licenses

Enforcement Date: 20 June 2024

Summary:

• Aviation security personnel (“Security Personnel”) are required to secure valid and legitimate licenses (“Personnel Licenses”) before they engage in their duties and exercise their authority. In this regard, Personnel Licenses are available for the following three professional levels: 1) Aviation Security Guard/Basic Avsec License (“Basic License”); 2) Aviation Security Screener/Junior Avsec License (“Junior License”); and 3) Aviation Security Supervisor/Senior Avsec License (“Senior License”).
• Personnel Licenses should be issued via the Personnel License Services and Registration Application System (Sistem Aplikasi Pelayanan Lisensi Avsec Personel dan Registrasi – “SIAP LAPOR”), which can be accessed via the following website: https://avsec-ng.kemenhub.go.id. The SIAP LAPOR can be accessed by administrators who are appointed by Airport Operators or education and training organizer institutions (“Training Institutions”). Moreover, said accessing must be preceded by the securing of an account and followed by the submission of a Personnel License application.
• Proficiency Tests comprise one of the phases that are required to be completed by Security Personnel candidates in order to ultimately secure their Personnel Licenses. Airport Operators or Training Institutions that organize said Proficiency Tests are now also required to provide computers in amounts that are equivalent to the number of Proficiency Test participants in addition to the originally mandated test facilities (e.g. testing rooms, high-speed interest access, videoconferencing devices and so forth). In addition, any candidates who wish to secure Junior Licenses or Senior Licenses are no longer required to complete individual examination practical tests as a part of their Proficiency Tests.
• For more information, see ILB No. 4895.

 

79. Decree of the Director-General of Air  Transportation No. PR 21 of 2024 on Limit Values for the Effective Implementation of Aviation Safety Measures

Enforcement Date: 20 June 2024

Summary;

• The Decree states that limit values for the effective implementation (“EI”) of aviation safety measures should be stated in the form of a percentage value. In this regard, limit values for said EI have now been stipulated as follows: 1) Airports with security systems A - F, air transport business entities, foreign air transport companies, flight navigation service providers: at least 85%; 2) Airports with security systems G - H: at least 80%.

 

80. Decree of the Director-General of Air Transportation No. PR 23 DJPU of 2024 on Guidelines for the Preparation of and Procedures for the Authorization of Flight Safety Programs

Enforcement Date: 20 June 2024

Summary:

•  The Decree stipulates a set of guidelines for the preparation of and procedures for the authorization of flight safety programs (collectively referred to as “Guidelines and Procedures”), as comprehensively set out under Appendices I – III to the Decree. The Guidelines and Procedures will be used as implementing guidelines by flight safety inspectors and by relevant stakeholders during the preparation and authorization of flight safety programs.

 

81. Decree of the Secretary General of the Ministry of Transportation No. KP-SKJ 24 of 2024 on the Amendment to Decree of the Secretary General No. KP591 of 2023 on Excluded Information

Enforcement Date: 29 May 2024

Summary

•  The Decree has now expanded the list of excluded information to include the following elements, as comprehensively set out in the Appendix to the Decree: 1) Information system access rights for applications within the Human Resources Development Agency (Badan Pengembangan Sumber Daya Manusia – “BPSDM”); 2) CCTV access rights at monitoring points for vehicle movements via arterial routes within the Jakarta Bogor Depok Tangerang Bekasi (“Jabodetabek”) area; 3) Design-related information; 4) Initial land acquisition plans for the construction of railway infrastructure; and 5) Information related to ongoing procurement processes for goods and services.

 

82. Decree of the Secretary General of the Ministry of Transportation No. KP-SKJ 25 of 2024 on the List of Public Information for 2024

Enforcement Date: 29 May 2024

Summary

• The Decree stipulates a list of public information for 2024, which has been grouped by information subject in accordance with the relevant duties, functions and activities of work units at the Ministry of Transportation, including: 1) Periodic information (e.g. ministry profile, the organizational structure of the ministry and profiles of ministry officials); 2) Immediate information (e.g. closure of transportation facilities and infrastructure, termination of public services within the transportation sector and announcements of strategic policies for the transportation sector); and 3) Information for use at any time (e.g. office administration systems, archive classification codes and archive retention schedules).

 

Miscellaneous

83. Decree of the President No. 21 of 2024 on the Task Force for the Eradication of Online Gambling

Enforcement Date: 14 June 2024

Summary:

• This Decree establishes the Task Force for the Eradication of Online Gambling (“Task Force”), the primary duties of which include the following: 1) Effective, efficient and optimized efforts relating to the prevention of online gambling and law enforcement; 2) Enhanced coordination between ministries/agencies and through international cooperation; and 3) Alignment and implementation of strategic policies and the formulation of recommendations in relation to these efforts.
•  The Decree specifies that the duties of the Task Force will be evaluated by the Coordinating Minister of Political, Legal and Security Affairs every three months. In addition, the Head of the Task Force is also required to report the development of their duties to the president every three months.
• The operational period of the Task Force will commence from the enforcement date of this Decree and run until 31 December 2024.

 

84. Regulation of the Minister of Finance No. 31 of 2024 on Inflation Targets for 2025, 2026 and 2027

Enforcement Date: 3 Juni 2024

Summary:

• The Regulation sets an inflation target of 2.5% with a deviation of 1.0% for the years 2025, 2026 and 2027. Said inflation target has been based on the annual Consumer Price Index (Indeks Harga Konsumen/IHK) inflation, as measured on a year-on-year basis, and utilizes a point of deviation.

 

85. Regulation of the Governor of DKI Jakarta No. 15 of 2024 on the Enrollment of New Students

Enforcement Date: 7 May 2024

Summary:

• Enrollments of new students (penerimaan peserta didik baru – “PPDB”) at educational units should be carried out based on the following groups: 1) Early childhood education; 2) Elementary-level education; 3) Secondary-level education; 4) Special education; and 5) Non-formal educational activities.
•  PPDB should be implemented through four enrollment methods, which break down as follows: 1) Achievements: applicable to junior high schools (sekolah menengah pertama – “SMP”), senior high schools (sekolah menengah atas – “SMA”) and vocational high schools (sekolah menengah kejuruan – “SMK”); 2) Affirmations: applicable to elementary schools (sekolah dasar – “SD”), SMP, SMA and SMK; 3) Zoning: applicable to SD, SMP and SMA; and 4) Based on the job assignments of parents and/or the children of teachers/educational staff: applicable to SD, SMP, SMA, and SMK.
• At their core, PPDB should be implemented in two stages. The first stage encompasses announcement, pre-registration, registration, selection and self-reporting. If an enrollment quota has not been filled after the completion of the first stage, then a second stage will subsequently be implemented in order to fill up the remaining educational unit quota. The second PPDB stage encompasses announcement, registration, selection and self-reporting.

 

86. Regulation of the Public Prosecutor’s Office No. 2 of 2024 on the Work Plan for the Public Prosecutor’s Office of the Republic of Indonesia for 2024

Enforcement Date: 5 June 2024

Summary:

• The Public Prosecutor’s Office Work Plan for 2024 (“2024 Work Plan”) is a development planning document that sets out the public prosecutor’s office policy direction for the 1 January 2024 - 31 December 2024 period. The 2024 Work Plan encompasses the following: 1) The 2024 Work Plan book; and 2) The public prosecutor’s office annual work plan matrix for 2024. These documents are comprehensively set out under Appendices I – II to the Regulation.

 

87. Circular of the Director-General of the Religious Court Agency No. 1 of 2024 on Technical Guidelines for the Implementation of Supreme Court Regulation No. 1 of 2014 on Guidelines for Court Legal Services for the Economically Disadvantaged

Enforcement Date: 6 June 2024

Summary:

• This Circular features a set of guidelines for use by religious courts regarding the provision of legal aid services to economically disadvantaged citizens living within their jurisdiction. In essence, the Circular enables economically disadvantaged individuals to apply for court fee waivers by following the procedures outlined in the Appendix to the Circular. However, said economic disadvantage must be proven by: 1) A certificate of indigency (surat keterangan tidak mampu – “SKTM”) or copy of a similar legalized document; or 2) Being listed as a poor resident in the government’s integrated database, which is connected to the Court Information System (Sistem Informasi Pengadilan/SIP).
• In an effort to further reduce the barriers that may be faced by economically disadvantaged individuals, religious courts may hold sessions outside of court buildings, particularly during simple cases. Funding for these sessions may be sourced from the Supreme Court’s budget, the budgets of other agencies/institutions or local government funds, but not from private sources.
• Economically disadvantaged individuals and/or individuals without access to legal information and consultation can also secure services from legal aid posts (pos bantuan hukum/posbakum), which are available at all religious courts, by presenting proof documents such as: 1) STKM; 2) A certificate of relevant social insurance; 3) Other relevant documents sourced from the government’s integrated database of economically disadvantaged residents; and 4) A statement of inability to pay for an advocate’s services.

 

88. Draft Bill on the Amendment to Law No. 34 of 2004 on the Indonesian National Armed Forces

Enforcement Date: -

Summary:

• This Draft Bill allows for active military personnel to be assigned to other ministries and/or agencies that require their skills and expertise, as per the president’s policies. It should be noted that under the existing Law, active military personnel are only allowed to hold positions in offices that are specifically designated for areas such as national political and security coordination, national defense, national intelligence and so forth.
• Revised provisions on military service tenure are also set to be introduced, and break down as follows: 1) Officers: 60 years; 2) Non-commissioned officers (Bintara) and enlisted personnel (tamtama): 58 years; and 3) Military personnel with functional positions: 65 years. The service tenures of four-star generals specifically can be extended up to two times, with each extension lasting a maximum of two years, and can be further extended in line with presidential approvals.

 

89. Draft Regulation of the Government on the Administration of Higher Education

Enforcement Date: -

Summary:

• At its core, the Draft Regulation addresses the following aspects in relation to the administration of higher education institutions: 1) Responsibilities, duties and authorities of higher education institutions; 2) University statutes; 3) State universities under the guidance of the ministry; 4) State universities with legal entity status; 5) Private universities under the guidance of the ministry; 6) Religious higher education institutions; 7) Higher education institutions under the control of other ministries and non-ministerial government agencies; 8) Professional education; 9) Degrees, diplomas and professional certificates; and 10) Academic and administrative staff. If ultimately enacted, this framework will simultaneously repeal and replace a total of 20 Regulations.
• It should be noted the establishment, designations and/or statutes of state universities must be brought into line with the new provisions set out under the Draft Regulation within two years of its date of enactment.

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