This Circular operationalizes Indonesia?s current electric vehicle policy by requiring regional governments to roll out tax incentives for electric vehicles in compliance with existing fiscal frameworks. The new framework also introduces a short-term compliance obligation that requires the formal adoption and reporting of incentive schemes across the country in line with a fixed national timeline.

If enforced, then this Draft Bill will ultimately restructure the current oil-and-gas regime business regime by establishing the Special Oil-and-Gas Business Entity (Badan Usaha Khusus Minyak dan Gas Bumi ? ?BUK Migas?), which will have authority over Indonesia?s oil-and-gas mining sector, particularly upstream business activities. BUK Migas will engage in upstream business through cooperation contracts (Kontrak Kerjasama/KKS) and may offer mining work areas to business entities or permanent establishments (Bentuk Usaha Tetap/BUT) if it lacks the capacity to handle them itself.

This new Bill clarifies employment relationships between employers and domestic workers (Pekerja Rumah Tangga ? ?PRT?) by expanding the mandatory terms of employment agreements and also requiring involvement from PRT Placement Agencies (Perusahaan Penempatan PRT ? ?P3RT?) in the drafting of said agreements. The Bill also further strengthens worker protections by enhancing PRT rights, including rest, social assistance, accommodation and safe working conditions, as well as prohibiting P3RT from charging any fees or engaging in wage deductions.

The list of objects that have been exempted from Motor-Vehicle Tax (Pajak Kendaraan Bermotor ? ?PKB?) and Motor-Vehicle Title Transfer Duty (Bea Balik Nama Kendaraan Bermotor ? ?BBNKB?) has been simplified and now includes the removal of the separate classification for vehicles that are converted from fossil fuels. Meanwhile, it has now been clarified that Heavy Equipment Tax (Pajak Alat Berat ? ?PAB?) will be collected externally to the One-Stop Integrated Administration System for Motor Vehicles, thereby initiating a more streamlined regulatory approach. The incentive scheme has also been revised from tax reductions that apply to certain types of functional vehicles to exemptions and reductions that specifically apply to battery-based electric motor vehicles, including vehicles that were manufactured before 2026, as well as vehicles that are converted from fossil fuels. Said incentives will be determined by the relevant regional governments.

If it is ultimately enforced, then this Draft Regulation will expand the scope of underlying financial assets for asset-backed securities in the form of participation certificates (Efek Beragun Aset Berbentuk Surat Partisipasi - ?EBA-SP?) for secondary housing financing to include rights-to-receivables (hak penerimaan manfaat). Moreover, originating creditors (Originators) and issuers of EBA-SP will also be subject to a 10% cap on their EBA-SP purchases.

The Draft Bill establishes an integrated climate-change management framework spanning planning, control, monitoring and enforcement. The new framework also introduces various Carbon Economic Value (Nilai Ekonomi Karbon/NEK) instruments, which include carbon trading, results-based payments and carbon levies, all of which will fall under the central coordination and regulatory authority of the Climate Change Management Agency (Badan Pengelolaan Perubahan Iklim/BPPI). The Draft Bill also reinforces compliance through various supervision, sanctions and dispute resolution mechanisms.

If it is ultimately enforced, then this new Draft Regulation will require the administrators of pension programs that are linked to state finances (?Administrators?) to meet several mandatory investment planning and implementation requirements relating to the management of assets and liabilities. Said requirements include the establishment of the following: 1) Investment Policy Statement (IPS); 2) Strategic Asset Allocation (SAA); and 3) Annual investment plans. The Draft Regulation also further clarifies the conditions under which Boards of Directors (?BoD?) of Administrators will be permitted to undertake cut-loss actions, as well as the conditions under which said BoD will not be held liable for any unrealized losses that result from any decrease in the values of managed assets.

This Decree officially mandates the affixation of nutritional labels and health warnings in line with the new Nutri-Level classifications to ready-to-eat processed food products, particularly beverages (?Beverage Products?). This new mandate will be implemented gradually and will initially target large-scale businesses that are involved in the manufacture and/or distribution of Beverage Products. In this regard, the new Decree affirms that the affixation of Nutri-Level information remains voluntary in nature but will become mandatory within two years of the government introducing official sugar, salt and fat (Gula, Garam dan Lemak/GGL) thresholds for processed food products.

The designation criteria and mechanism for Supply Centers have been revised and now require legal entity status, thereby bringing small- and medium-scale industries (Industri Kecil dan Industri Menengah ? ?IKM?) that are being served into line with commodity groups, as well as updating various data and document requirements. A new import mechanism external to the commodity balance has also been introduced and involves verifications of IKM capabilities (Verifikasi Kemampuan IKM/VIKM) that will be completed based on requirements and submitted documents. This framework will also now serve as the basis for import realizations, with distribution being carried out based on contractual arrangements.

The smelter construction program that features on the list of Indonesia?s National Strategic Projects (Proyek Strategis Nasional/PSN) has been retained, however, the integrated alumina processing and refining facilities project has now been expanded from separate bauxite processing into an entire integrated aluminium ecosystem that encompasses supporting facilities, an aluminium smelter, a power plant and upstream supply chain activities. All of these elements will be concentrated in a single industrial location in West Kalimantan.