This Fourth Amendment revises the tax treatment that applies in relation to the use of book value for asset transfers and acquisitions that are undertaken by State-Owned Enterprise (Badan Usaha Milik Negara ? ?BUMN?) taxpayers within the context of mergers, consolidations, acquisitions and spin-offs (collectively referred to as ?Corporate Actions?) for BUMN restructuring purposes. This new framework also reflects an institutional shift from the Ministry of BUMN to the BUMN Regulatory Agency (Badan Pengaturan/BP BUMN). Although the general requirements for applying the book value method remain unchanged, the Fourth Amendment has now amended the business purpose test by requiring the recipients of any transferred assets to continue carrying out the relevant business activities for at least four years after the effective date of the relevant Corporate Actions. In addition, the Fourth Amendment has also introduced limited exemptions to mandatory market value recalculations for certain post-approval non-compliance.

This new Decree reaffirms the existing regulatory framework that governs the listing of structured warrants on the Indonesian Stock Exchange. Although no substantive changes have been introduced under this new framework, the Decree specifically addresses new listing fee incentives that can be secured through the fulfillment of mandatory educational and socialization activities. Specifically, issuers will be required to conduct at least 12 such activities between January and November 2026. Issuers must also punctually submit monthly reports, with any non-compliance resulting in a loss of eligibility to enjoy these incentives, therefore reimposing the obligation to pay full standard listing fees.

Registration requirements for Subscriber Identity Module Cards (?SIM Cards?) have now been revised in favor of the mandatory use of biometric data in the form of facial recognition, as opposed to said data being optional, as was previously the case. Moreover, this requirement includes customers under 17 years of age who must register using the facial recognition data of the relevant family heads. In addition, a new restriction has now been introduced that prohibits the registration of more than three SIM Cards under a single identity, subject to limited exceptions. Any non-compliance with these requirements may result in the imposition of administrative sanctions on telecommunications service providers in the form of written reprimands and/or temporary suspensions of business activities.

In comparison with last year, the 2026 Provincial Sectoral Minimum Wages (Upah Minimum Sektoral Provinsi ? ?UMSP?) for the Special Capital City Region of Jakarta have been increased through a streamlined sectoral scope that now also covers construction, transportation and warehousing, and human health and social activities. Under the 2026 framework, a highest monthly UMSP of Rp. 5,943,938 and a lowest monthly UMSP of Rp. 5,741,201 have been set.

This new Amendment strengthens trade governance through enhanced import and export supervision, revised rules on goods distribution and direct selling, as well as an expanded set of administrative sanctions that now include government-enforced measures and suspensions/revocations of Business Licenses That Support Business Activities (Perizinan Berusaha untuk Menunjang Kegiatan Usaha/PB UMKU). This new framework also improves warehouse reporting obligations in order to better support compliance, legal certainty, product availability and efficient trade operations.

Commercial banks are required to draw up and submit several types of publication reports (e.g. financial statements, risk exposure and capital reports, as well as sustainability reports) in line with a quarterly and semesterly reporting timeline. Meanwhile, insurance companies are required to ensure that all of their health insurance products satisfy various eligibility and design criteria, and also feature adequate prudence and effective risk-management initiatives.

This new Draft Regulation revises the mandatory licensing framework for producers of processed food products by strengthening the food safety compliance requirements that apply to both domestic and overseas production facilities. The compliance of overseas facilities must be evidenced through recognized certification, while domestic facilities are required to secure both Good Manufacturing Practices for Processed Foods (Cara Produksi Pangan Olahan yang Baik/CPPOB) Implementation Licenses, as well as Risk Management Program (Program Manajemen Risiko ? ?PMR?) Implementation Licenses, with the PMR obligation now being expanded to cover large-scale producers of non-high-risk foods and users of food additives. At the same time, the Draft Regulation will also introduce simplified documentation and accelerated licensing timelines for Micro- and Small-Scale Enterprises (Usaha Mikro dan Kecil/UMK), which involve post-licensing audits. Finally, the range of available administrative sanctions for non-compliance has also been broadened.

Customary criminal offenses may be recognized even if they are not explicitly covered by the Criminal Code (Kitab Undang-Undang Hukum Pidana ? ?KUHP?), provided that they align with the national ideology of Pancasila, as well as Indonesia?s 1945 Constitution, common notions of human rights and universal legal principles, and are also recognized by relevant customary law communities (masyarakat adat) (?Communities?). Said offenses are determined through structured processes that involve Communities and regional authorities and may be formalized in regional regulations. Cases are primarily resolved through processes of deliberation (musyawarah), which may involve the imposition of sanctions in the form of customary obligations.

In Decision No. 60/PUU-XXIII/2025, the Constitutional Court (Mahkamah Konstitusi ? ?MK?) has now declared Article 55 (5) of Law No. 12 of 2012 to be conditionally constitutional. In this regard, study programs that are accredited through Independent Accreditation Bodies (Lembaga Akreditasi Mandiri ? ?LAM?) are considered valid only if LAM are established based on the needs and readiness of the relevant disciplines and secure joint approvals from the Association of Deans (Badan Kerja Sama Dekan/BKS). The MK has emphasized that all accreditation must be objective, efficient and professional, and must involve credible assessors, strict oversight, standardized instruments and proportional fees. Furthermore, a prohibition on commercialization is also now in place.

The Second Amendment has now strengthened the regulatory framework that governs the recording of transactions and financial reporting by banks undergoing processes of liquidation. In this regard, the new framework introduces a deposit-based audit requirement for Reports on Changes in Net Assets During a Period of Liquidation. This requirement now means that banks with total deposits amounting to at least Rp. 200 billion will continue to be subject to mandatory annual audits that should be undertaken by public accounting firms (Kantor Akuntan Publik/KAP). Meanwhile, any banks with lower levels of deposits will only be required to submit reports to LPS for approval without having to complete any mandatory audits. In addition, the Second Amendment has now revised several reporting timelines and procedural requirements for Reports on Net Assets at the Start of a Period of Liquidation and Reports on Net Assets at the End of a Period of Liquidation.