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The previous regulatory framework for the withdrawal of damaged currency from circulation was considered to be no longer suitable for the current conditions and has been amended to allow for improved services in relation to the exchange of damaged currency for currency that is still suitable for circulation.

The basic premise of the Minister of Finance Regulation is to ensure legal certainty and to facilitate compliance by businesses and corporations that are bookkeeping in foreign languages and utilizing currencies other than the Rupiah in their financial transactions. Bookkeeping in foreign languages and currency is permissible under Article 28(8) of Law No. 6 of 1983 as amended by Law No. 16 of 2000. However, with a view to ensuring a high degree of compliance and legal certainty there remained a need to clarify the obligation to also provide the required income tax notification letters, which this Regulation, No. 49/PMK.03/2007, is intended to do.

Bank Indonesia (BI) issued Circular No. 9/9/DSM of 2007 to amend an earlier Circular No. 5/24/DSM of 3 October 2003 on the reporting requirements for all companies, but not financial institutions, with foreign exchange activity. The two main reasons for the amendments are the significant expansion of technology and its availability throughout the business sector, as well as BI's needs for better quality data from companies.

The Government has been in the drafting phase of a new bill on legal tender for some time. The often tortuous route has seen a bill make the House of Representatives (DPR) in 2003 (see e-Alert 5/12/2003) where it was expected that expedited discussion and debate would occur. Simply, this did not happen as the bill was quickly overtaken by other more pressing legislation matters. The bill has resurfaced in a slightly modified format and is currently with the DPR's Legislation Board (Badan Legislasi) and it is expected that it will soon be forwarded to Commission XI for the discussion and debate that was expected to occur almost three years ago.

The President has finally forwarded the Bill on Electricity to the House of Representatives (DPR) for further debate and eventual enactment. The Minister for Energy and Mineral Resources has been appointed as the Minister responsible for all liaison with the DPR in the debate and enactment process.

Bank Indonesia (BI) has issued a Circular that is designed to encourage and support greater amounts of credit being made available to small scale enterprises, home mortgage owners, and employees and retirees. The Circular will increase the role that banks play in driving the economy through credit approvals to the above noted individuals and groups.

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