Recent data has revealed that a large number of Indonesians still do not have access to affordable electricity. In a bid to solve this stubbornly persistent problem, the government has set an electrification target of up to 70,000 MW by 2019 and is also aiming for the equal distribution of electricity at reasonable prices. With these two goals in mind, the Ministry of Energy and Mineral Resources has finally issued three new electricity-related ministerial regulations. These three regulations encompass Ministerial Regulation No. 10/2017 on Main Provisions for Power-Purchase Agreements, Ministerial Regulation No. 11/2017 the Utilization of Natural Gas for Power Plants and Ministerial Regulation No. 12/2017 on the Utilization of New and Renewable Energy. Regulation No. 10/2017 will now be the legal basis for the implementation of power-purchase agreements. Regulation 11/2017 has been issued in order to govern natural gas utilization by power plants, so as to secure gas and energy supplies at reasonable prices. Meanwhile, Regulation 12/2017 will act as a mandate through which PLN can purchase electrical power from any independent power producers that utilize renewable sources, in order to bolster national energy security.

When legal disputes arise, Ministry of Agrarian Affairs and Spatial Planning/National Land Agency Regulations may offer insights regarding their potential resolution.

In order to implement Law No. 1 of 2016 on Guarantees, the Financial Services Authority (Otoritas Jasa Keuangan- OJK) has finally issued three regulations, namely OJK Regulation No. 1/POJK.05/2017 on Business Licensing and the Organizational Structures of Guarantee Institutions; OJK Regulation No. 2/POJK.05/2017 on the Organization of Guarantee Institutions; and OJK Regulation No. 3/POJK.05/2017 on Good Corporate Governance for Guarantee Institutions. This weeks edition of Indonesian Law Digest (ILD) will analyze and discuss various matters which relate to these new OJK Regulations, such as the general concept underlying guarantee institutions, their licensing, financial ratios and so forth.

As the volume of international trade continues to rise year after year, naturally the number of trade disputes arising is also simultaneously increasing. Indonesia engages in significant amounts of international trade and thus when the countrys businesses import and export various goods to other WTO members, caution is required with respect to international trade principles and the WTOs various legal instruments . This edition of ILD will offer a concise review of three of the most recent disputes which involved Indonesias status as a WTO member. These disputes were related specifically to clove cigarettes and fatty alcohols, as well as various horticultural and animal products.

In a bid to promote strong and stable financial environments, the OJK has issued three implementing regulations in order to enhance the management of insurance companies, as well as the various financial requirements that they are required to meet. The first two of these regulations concern the financial soundness of insurance companies and address solvency threshold levels, as well as a requirement to establish guarantee funds. Meanwhile, the last of the recently issued regulations relates to the implementation of good corporate governance within insurance companies and offers guidelines on the prudent operation of insurance businesses.

New tax facilities to include exemptions relating to import customs, income tax for importation, domestic value-added tax and income tax for the reduction of cost-sharing expenses

Two weeks ago, Indonesia introduced new rules that will allow exports of nickel ore and bauxite, as well as concentrates of other minerals, under certain conditions in a sweeping policy shift from the key global supplier. These new rules are set out in Government Regulation No. 1 of 2017 on the Fourth Amendment to Government Regulation No. 23 of 2010 on the Implementation of Mineral and Coal-Mining Activities, Ministerial Regulation No. 5 of 2017 on the Enhancement of the Added Value of Minerals Through Domestic Mineral Processing and Refinement Activities, Ministerial Regulation No. 6 of 2017 on Procedures and Requirements for the Granting of Recommendations for the Sale of Processed and Purified Minerals Overseas, and Ministerial Regulation No. 7 of 2017 on Procedures for the Designation of Sales Benchmark Prices for Metal Minerals and Coal. With these changes in mind, this weeks edition of ILD will address matters which relate to Indonesias latest mining policy, including its new divestment scheme, export procedures for metals and coal, requirements for the securing of export recommendations and benchmark pricing.

Both the KPK and the Public Prosecutor?s Offices have attempted to extend at least six corruption cases involving individual perpetrators into the realms of corporate crime

Two years after the enactment of Law No. 40 0f 2014 on Insurance, the Financial Services Authority (OJK) has finally introduced two regulations relating to the insurance sector, specifically OJK Regulation No. 69/POJK.05/2016 on Business Licenses and the Organizational Structure of Insurance, Sharia-Insurance, Reinsurance and Sharia-Reinsurance Companies; and OJK Regulation No. 67/POJK.05/2016 on the Organization of Insurance, Sharia-Insurance, Reinsurance and Sharia-Reinsurance Companies. Against this background, this weeks edition of ILD trains its precision spotlight upon the establishment and organization of businesses operating within Indonesias insurance sector.

Critics mainly highlight provisions which enable the privatization of state-owned enterprises without approval being granted by the House