The Regulation overhauls the excise settlement framework by imposing stricter historical baselines and significantly reducing default quota allocations for unprofiled and high-risk business actors. By enforcing mandatory digitalization and introducing hard upper limits on ethyl alcohol content for excise stamp affixation, the regime requires regulated entities to immediately audit their production histories and ensure full integration with the customs service system to prevent severe supply chain bottlenecks

The Draft Bill on Procedures for the Implementation of the Death Penalty (?Draft Bill?) is currently being prepared by Indonesia?s House of Representatives and will ultimately replace Presidential Decree No. 2 of 1964 on Procedures for the Implementation of the Death Penalty as Imposed by Courts Through the General and Military Judiciary in order to bring this legal area into line with Law No. 1 of 2023 on the Criminal Code. The Draft Bill strengthens the rights of death row inmates by ensuring access to family communications, legal counsel and health checkups, while also expanding the grounds upon which executions can be postponed to include pregnancy, breastfeeding, terminal illness and mental disorders. The Draft Bill maintains the three-day execution notice but broadens the applicable recipients and information requirements. The new framework also introduces an execution deadline of 30 days after an order, which will allow inmates to choose the place of their execution.

Under this newly updated regulatory framework, the obligation to comply with written orders issued by the Financial Services Authority (Otoritas Jasa Keuangan ? ?OJK?) applies to Financial Service Institutions (Lembaga Jasa Keuangan ? ?LJK?) and/or certain parties. The scope of said certain parties has now been expanded to include primary parties, parties who are affiliated with LJK, non-LJK financial business actors, issuers and public companies. The OJK is also authorized to order LJK to undertake or accept corporate actions, which may include mergers, consolidations, acquisitions, integrations and/or conversions, as a part of efforts aimed at resolving various types of institutional issues. Any non-compliance with such written orders may result in the imposition of sanctions, which vary between individuals and corporations.

Following the transitioning of Indonesia?s tax governance to the Core Tax Administration System (CTAS), this Decree now grants corporate taxpayers a one-month waiver to the imposition of administrative sanctions for the late filing and payment of 2025 Annual Income Tax (Pajak Penghasilan ? ?PPh) Returns (Surat Pemberitahuan ? ?SPT?), including Article-29 PPh SPT. The waiver applies automatically, covers eligible full-year and partial-year SPT and mandates the ex officio annulment of Tax Collection Letters. Furthermore, this waiver will not affect eligibility for ?specific criteria taxpayer? status.

This Regulation requires Indonesian Migrant Worker Placement Companies (Perusahaan Penempatan Pekerja Migran Indonesia/P3MI) to formalize worker placements through bilingual agreements with business partners, employers or principals that clearly set out the various rights and obligations of workers. Said placements may have a maximum validity of five years. The new framework also mandates that all worker deployments must be supported by verified request letters that are valid for up to 15 months in order to ensure compliance with quota limits and safety standards. In addition, a continuous monitoring system has been introduced, allowing authorities to blacklist non-compliant entities.

This new Regulation ensures the strict separation of Sharia banking investment products (?Investment Products?) from standard deposit products. In this regard, Investment Products are defined as restricted-risk products that are linked directly to underlying assets. In order to comply with the new categories, all Sharia Banks should immediately overhaul their fund management, risk calculation and internal accounting systems, while existing Investment Products will now face a mandatory two-year transition period.

The Financial Services Authority (Otoritas Jasa Keuangan ? ?OJK?) is currently completing work on a new Draft Regulation that will set out various technical procedures for the implementation of electronic public offerings of Debt Securities and/or Sukuk (Efek Bersifat Utang dan/atau Sukuk ? ?EBUS?) through the Electronic Public Offering System. In addition to defining the various types of offerings that will be covered and key system participants, the Draft Regulation also addresses investor funding requirements, which include a 5% minimum allocation for offerings and a Retail-to-Non-Retail ratio of 1:2 for Centralized Allotments.

Governor Instruction 5/2026 overhauls Jakarta?s waste management by shifting from government-focused sorting to a mandatory source-based regime for the private sector and residential households. This framework imposes strict operational requirements on tourism and commercial managers, including mandatory food labeling and on-site processing to ensure only residual waste is exported.

In addition to transfers, the settlement of customs obligations now also includes two other methods: re-export and destruction. Before executing these obligations, business entities must first secure approvals from the Head of the Customs Office responsible for the settlement of the relevant customs obligations (?Head?). Said approvals will remain valid for 60 days from their dates of issuance. Entities are also newly required to submit annual reports to the Head on the utilization of equipment and materials that are used to prevent or control environmental pollution (collectively referred to as ?Goods?). These reports must be submitted for the first five years following the date of the relevant import declaration, while any failure to comply with this reporting obligation will result in the suspension of the following import-duty exemption service.

This Regulation expands the regulatory scope of the oversight of drug advertising to now include broader promotional activities and also introduces various promotional requirements, including product eligibility, audience restrictions and mandatory risk management systems. This oversight applies not only to pharmaceutical industries but also to pharmaceutical wholesalers, pharmaceutical service facilities and organizers of electronic pharmaceutical systems.