On 26 March 2014, the Minister of Law and Human Rights (“Minister”) issued Regulation No. 5 of 2014 on Validation of Foundations (“Regulation”). Briefly, the Regulation redefines the procedures and requirements for securing approval for the name of a foundation and its validation by the Minister ...
The Supreme Court of the Republic of Indonesia has issued Circular Letter No.2 of 2014 regarding Case Settlement in the Court of First Instance and Appeals in 4 (four) Justice Fields. The Supreme Court considers that since an electronically based management case system now exists in the courts of first instance and high courts, cases should be examined and ruled on quickly ...
On 19 March 2014, the government issued Regulation No.22 of 2014 on Amendments to Government Regulation No.41 of 2014 on Tax on Motor Vehicles which are subject to Luxury Tax. The new regulation came into force 30 days after the date of its issuance. The amendments affect luxury goods sales tax (Pajak Penjualan Barang Mewah or PPnBM) for vehicles with certain specifications. Before the issuance of Regulation No. 22, the tariffs ranged from 10% to 75%. Under Regulation No ...
In 2014, the Governor of Jakarta issued updates on the Jakarta Minimum Wage through the following regulations: Regulation No.54 of 2014 on the Minimum Sectoral Wage in the Province for 2014. Adjustments were made for the following industries under Regulation 54, namely Cosmetics, Automotive, Canned foods, Pharmaceuticals, Hospital Services, Radio and television, audio and visual recording devices; and Electronic household goods ...
On 26 March 2014, the Minister of Manpower and Transmigration (“Minister”) issued Circular Letter No. SE.3/MEN/III/2014 on The Implementation of Mandatory Manpower Reports by Companies (“Circular Letter”). The Circular Letter instructs all Governors and Regents/Mayors that all regional manpower offices within their jurisdiction, are to simplify the process of receiving and processing companies’ mandatory ‘manpower reports’ ...
The Financial Services Authority (“OJK”) recently issued Circular Letter No. 2/SEOJK.07/2014 on Services and the Settlement of Complaints from Consumers of Financial Service Businesses (“Circular Letter”) to implement OJK Regulation No. 1/POJK.07/2013 on Consumer Protection in the Financial Services Sector (“Regulation”) ...
The Financial Services Authority (“OJK”) issued Regulation No.3/POJK.02/2014 on the Procedure for Collecting Fees charged by the Financial Service Authority (“OJK Regulation”) on 1 April 2014. The OJK Regulation provides guidelines for the OJK’s collection of fees from financial services institutions and financial services industry support professionals and their firms (Public Accounts, Public Assessors, Legal Consultants, Notaries, Actuaries) ...
Presidential Regulation No. 39 of 2014 on The List of Business Fields that are Closed or Conditionally Open for Investment (the Negative Investment List/daftar Negatif Investasi (DNI)/“Negative List”) was issued recently and became effective on 24 April 2014. This new negative investment list revises and replaces the 2010 regulation. The new Negative List revises the components of the 2010 list classified as: a) closed for investment; and b) conditionally open for investment ...
To strengthen the competitiveness of retail trading businesses carried out by modern stores and shopping centers, the Minister of Trade issued Regulation Number 70/M-DAG/PER/12/2013 on 12 December 2013 concerning Guidelines on Administrating and Fostering Traditional Markets, Shopping Centers, and Modern Shops (Reg. 70). Reg ...
Foreign manpower recruitment procedures as set out under Minister of Manpower and Transmigration Regulation No. PER.02/MEN/III/2008 were considered no longer applicable given the development of manpower nowadays, and therefore the Minister of Manpower and Transmigration promulgated Regulation No. 12 of 2013 on Procedures for Recruiting Foreign Manpower which came into effect as of 30 December 2013 ...
Minister of Energy and Mineral Resources Regulation No. 38 of 2013 on Compensations for Land, Buildings, and Plants Located under High Voltage Air Channels (SUTT) and Extra High Voltage Air Channels and Free Spaces (SUTET) has been enforced as of 24 December 2013. The Regulation provides the procedures as well as formula for compensation for the owners of impacted land, buildings, and plant due the establishment of electricity infrastructure ...
On 29 July 2013, the Indonesian Minister of Trade (MOT) issued Regulation No. 35/M-DAG/PER/7/2013 on Affixing Retail Prices and Tariffs to Goods and Services (Reg. 35). The Regulation came into effect 6 months as of its enactment, i.e. on 29 January 2014. It is an implementing regulation of Law Number 8 of 1999 on Consumer Protection. Two of its provisions will have a significant impact on businesses in Indonesia ...
In 16 January 2014, the Constitutional Court (“MK”) granted the request for a judicial review of Article 335 of the Criminal Code (“KUHP”) and removed the phrase, “offensive act” from Article 335 of the KUHP. The reason for removing the phrase, “offensive act” is that it allows investigators and public prosecutors to act arbitrarily against certain people ...
An amendment to Law No. 30 of 2004 pertaining to Notary was issued on 15 January 2014 (Law No. 2 of 2014). The amendment came into force on its issuance date and various amended provisions were introduced, such us provisions on requirements for the appointment of a notary, confirmation of the Indonesian language as the formal language of a notarial deed or obligations of a notary and restriction on double positions. A number of interesting points were also addressed ...
The Minister of Trade has promulgated Regulation No 04/M-DAG/PER/1/2014 on 11 January 2014 which lists: 1 - 186 refined and processed mining products which are restricted to be exported (Attachment I of the regulation), such as metallic minerals, non-metallic minerals and rocks (including silver, gold and copper which contain certain levels of certain mineral elements) ...
In an attempt to improve the quality of Listed Companies and the liquidity of Public Company shares, the Director of the Indonesian Stock Exchange amended Regulation Number I-A on the Listing of Shares and Equity Securities other than Shares Issued by Listed Companies (No. KEP-00001/BEI/01-2014). The main issues regulated under this amended Regulation relate to the term of office of the independent commissioner and independent director in a listed company and free float shares ...
In an attempt to increase a bank’s ability to absorb risks, the improvement of a bank’s capital quality and quantity to be in accordance with international standards is deemed necessary. In order to increase a bank’s capital quality, it is also considered necessary for the bank to have additional capital which will have the function as a buffer in the event of a financial and economic crisis which may negatively affect the stability of the financial system ...
Currently, provisions on fit and proper tests for non-banking financial services are provided separately in several regulations and they apply different standards of fit and proper test procedures and materials. In an attempt to unify the fit and proper test requirements for non-banking financial services, the Financial Services Authority (“OJK”) issued Regulation No. 4/POJK ...
As a newly established authority pursuant to Law No. 21 of 2011 on the OJK (“OJK Law”), the OJK requires proper financing to support its operations so that it can carry on its duties and functions independently and professionally, and in accordance with good corporate governance principles. One of the OJK’s financing sources is from charges obtained from financial services institutions and/or individuals or entities engaging in financial services ...
After 80 years using a very old Dutch trade law (Bedfrijfsreglementerings Ordonnantie 1934, Staatsblad 1938 Number 86), Indonesia has finally introduced its own Bill on Trade. The Bill on Trade was passed by the House of Representatives on 11 February 2014 and will come into effect on 13 March 2014 at the latest ...
Welcoming the ASEAN Economic Community in 2015, the Indonesian Government is planning to revise the current Negative List (Presidential Regulation No. 36 of 2010) to create more business opportunities for foreign investors and to improve the nation’s competitiveness. The Investment Coordinating Board (“BKPM”) is currently drafting the New Negative List in coordination with several other relevant government authorities ...
The Minister of Finance has issued Regulation No. 37/PMK.04/2013 on Duty-Free Shops on 27 February 2013, which implements Article 48 of Government Regulation No. 32 of 2009 on Bonded Storehouses (Tempat Penimbunan Berikat). The Regulation will effectively be applied 90 days since the issuance date ...
Minister of Health Regulation No. 30 of 2013 on The Inclusion of Information on Sugar, Salt, and Fat Content, and Health Impact Messages for Processed and Fast Foods is aimed at lowering the exposure of the public to the risk of non-contagious disease such as hypertension, stroke, diabetes and heart attacks, which can be caused by the excessive consumption of processed or fast foods ...
Through Government Regulation No. 33 of 2013 on The Expansion of Employment Opportunities, the Government intends to push the central and regional governments to create more employment opportunities. Employment expansion policies may apply in or out of the employment relationship ...
Regulation No. 4 of 2013 on Guidelines for the Resolution of Environmental Disputes Provides an Additional Step in Dealing with an Environmental Complaint before Going to Court for Settlement or an Out of Court Settlement was issued on 15 March 2013 as further guidelines for the central and regional Governments as well as parties in dispute on settling environmental disputes ...
