LEGAL ALERT AUGUST 2020 1
SSEK Legal Alert is a monthly survey designed to keep our clients up to date with the latest legal developments in
Indonesia. To subscribe, visit our website at www.ssek.com.
AGRARIAN AFFAIRS Minister of Agrarian Affairs and Spatial Layout/Head of National Land
Agency Regulation No. 30 Year 2019 dated December 19, 2019,
regarding Land Registration for Dam, Lake, Retention Basin and
Reservoir. This Regulation provides guidelines and procedures for such
land registration, including the processing for submitting an application to
the land agency. This Regulation came into force on December 31, 2019.
Minister of Agrarian Affairs and Spatial Layout/Head of National Land
Agency Regulation No. 4 Year 2020 dated March 16, 2020, regarding
Land Appraisers. This Regulation stipulates the licensing requirements for
land appraisers, encompassing the application process, verification and
the granting of a license. It also provides the list of documents required for
a license application and the required documents for a license renewal.
This Regulation came into force on March 23, 2020.
Minister of Agrarian Affairs and Spatial Layout/Head of National Land
Agency Circular Letter No. 6/SE-100.PL.02/IV/2020 dated April 3, 2020,
regarding Procurement of Goods/Service in the Framework of Preventing
Corona Virus Disease 2019 (COVID-19) and the Implementation of
Contracts at the Ministry of Agrarian Affairs and National Land Agency
during the COVID-19 Emergency Situation. This Circular Letter provides
detailed guidelines and procedures for the government procurement of
goods/services in relation to the prevention of the spread of COVID-19 and
the implementation of contracts during the outbreak. This Circular Letter
came into force on the date of its issuance.
BANK INDONESIA Bank Indonesia (“BI”) Board of Governors Regulation No.
22/2/PADG/2020 dated March 10, 2020, regarding the Fourth
Amendment of BI Board of Governors Regulation No. 20/10/PADG/2018
regarding Minimum Giro in Rupiah and Foreign Currency for Conventional
Commercial Banks, Sharia Commercial Banks and Sharia Business Units.
This Regulation reduces the minimum foreign currency giro for
conventional commercial banks from 8% to 4%. It came into force on March
16, 2020.
BI Regulation No. 22/2/PNI/2020 dated March 19, 2020, regarding the
Second Amendment of BI Regulation No. 20/10/PBI/2018 regarding
Domestic Non-Deliverable Forward. This Regulation adds to the types of
Domestic Non-Deliverable Forward transactions to include (i) trade of
goods and services locally or overseas, (ii) investments, (iii) granting of
credit or bank payment in foreign currencies for trade and investment
activities, and (iv) ownership of rupiah bank account by a foreigner. This
Regulation came into force on the date of its enactment.
BI Regulation No. 22/3/PBI/2020 dated March 24, 2020, regarding the
Amendment of BI Regulation No. 20/3/PBI/2018 regarding Minimum Giro
LEGAL ALERT AUGUST 2020 2
in Rupiah and Foreign Currency for Conventional Commercial Banks,
Sharia Commercial Banks and Sharia Business Units. This Regulation
adds provisions relaxing the minimum giro requirement for macroprudential
policies and the minimum giro requirement for conventional commercial
banks, sharia commercial banks and sharia business units. This
Regulation came into force on March 26, 2020.
BI Regulation No. 22/4/2020 dated April 15, 2020, regarding Incentives
for Banks Providing Funding for Certain Economic Activities to Support the
Mitigation of the Economic Impact of the Corona Virus. This Regulation
provides technical details on incentives available to banks as indicated in
the title of the Regulation, including for how long the incentives are
available, and the scope and source of funding for certain economic
activities. This Regulation came into force on the date of its enactment.
ECONOMIC AFFAIRS Coordinating Minister for Economic Affairs Regulation No. 3 of 2020
dated March 20, 2020, regarding the Implementation of Presidential
Regulation No. 36 of 2020 regarding the Development of Work
Competence though the Pre-Employment Card Program. This Regulation
concerns mechanisms for the distribution of pre-employment cards,
benefits, training programs and the institutions that will implement the
program. It came into force on March 27, 2020.
ENERGY AND MINERAL
RESOURCES
Minister of Energy and Mineral Resources (“MEMR”) Decision No.
62.K/12/MEM/2020 dated February 28, 2020, regarding Base Price
Formula in Calculating Retail Sales Price for Types of Common Oil Fuel
Materials for Types of Solar Oil and Fuel Funneled Through Public Fuel
Filling Stations and/or Fuel Filling Stations for Fisherpersons. This Decision
determines the formula for the base price for common fuel oil types of
funneled through public fuel filling stations and fuel filling stations for
fisherpersons. Authority is granted to business entities holding an oil and
natural gas commercial business license to determine the base price
formula. Such entities shall be required to submit a report on the
determination of the retail price to the MEMR. This Decision came into
effect on the date of its enactment.
MEMR Regulation No. 10 of 2020 dated April 6, 2020, regarding the
Amendment of MEMR Regulation No. 45 of 2017 regarding Utilization of
Natural Gas for Power Plants. This Regulation introduces several new
provisions to adjust the pricing of natural gas for power plants and the
mechanisms for electricity power purchases. This Regulation came into
force on the date of its issuance.
MEMR Regulation No. 11 of 2020 dated April 14, 2020, regarding the
Third Amendment of MEMR Regulation No. 7 of 2017 regarding
Procedures for Determining Benchmark Sales of Metal and Coal Minerals.
This Regulation is intended to increase the effectiveness of benchmark
LEGAL ALERT AUGUST 2020 3
prices for mineral and coal mining commodities. This Regulation came into
force 30 days from its date of issuance.
MEMR Decision No. 89K/10/MEM/2020 dated April 13, 2020, regarding
Users and Prices of Certain Natural Gas in the Industrial Sector. This
Decision sets forth the users and prices for certain natural gas in the
industrial sector. It came into effect on the date of its issuance.
FINANCE
Ministry of Finance Regulation No. 11/PMK.010/2020 regarding the
Implementation of Government Regulation No. 78 Year 2019 dated
February 11, 2020, regarding Income Tax Facility for Investments in
Certain Business Fields and/or in Certain Regions (“GR 78/2019”). This
Regulation contains provisions on income tax facilities available to local
corporate taxpayers that make either new investments or expand their
business in certain business fields as regulated by GR 78/2019. This
Regulation came into force on the date of its enactment.
Director General of Taxation Circular Letter No. SE-4/PJ/2020 dated
February 3, 2020, regarding Value Added Tax Treatment for the Delivery
of Certain Port Services to Sea Transportation Companies Conducting
International Sea Transportation Activities. This Regulation provides
guidelines for and an explanation of the provisions of Government
Regulation No. 74 Year 2015 regarding Value Added Tax Treatment for
the Delivery of Certain Port Services to Sea Transportation Companies
Conducting International Sea Transportation Activities, including the
requirement to not carry any passengers and/or goods from one port to
another in the territory of Indonesia. This Regulation came into force on the
date of its enactment.
Minister of Finance Regulation No. 17/PMK.010/2020 dated March 10,
2020, regarding the Third Amendment of Minister of Finance Regulation
No. 6/PMK.010/2017 regarding the Stipulation of Goods Classification
System and Imposition of Import Duty Rates on Imported Goods. This
Regulation amends the goods classification system and import duty rates
on imported goods. It also amends a provision on import duty rates on
imported goods in the form of petroleum coke that is not calcined. This
Regulation came into force on March 23, 2020.
Minister of Finance Regulation No. 22/PMK.03/2020 dated March 18,
2020, regarding Procedures for the Implementation of Transfer Pricing
Agreement (Advance Pricing Agreement). This Regulation provides the
procedures for the submission of Advance Pricing Agreement applications
to the Director General of Taxation by taxpayers, as well as the revocation
of Advance Pricing Agreement applications. It provides a detailed
explanation of the necessary steps for an Advance Pricing Agreement. This
Regulation came into force on the date of its enactment.
LEGAL ALERT AUGUST 2020 4
Minister of Finance Regulation No. 23/PMK.03/2020 dated March 21,
2020, regarding Tax Incentives for Taxpayers Affected by the Coronavirus
Outbreak. This Regulation is aimed at maintaining economic stability and
protecting purchasing power and the productivity of certain economic
sectors in the wake of the COVID-19 outbreak. It came into force on March
23, 2020.
Director General of Taxation Decision No. KEP-156/PJ/2020 dated
March 20, 2020, regarding Taxation Policy in Relation to the Spread of
COVID-19. This Regulation is aimed at providing relief to taxpayers in the
wake of COVID-19. It waives sanctions for individual taxpayers late in
submitting annual tax returns for the 2019 tax year or late in making
payment for tax underpayments. This Regulation came into force on the
date of its enactment.
Minister of Finance Regulation No. 28/PMK.03/2020 dated April 6,
2020, regarding the Granting of Tax Facilities for Goods and Services
Necessary in the Framework of Handling the Corona Virus 2019 Pandemic.
This Regulation is aimed at helping to ensure the availability of drugs,
health equipment and supporting equipment for the handling of the COVID-
19 pandemic. It provides VAT incentives for certain parties for the import
of taxable goods and/or services and/or the utilization of taxable services
from outside the customs area in responding to the COVID-19 outbreak
during the tax period of April 2020 until September 2020. This Regulation
came into force on the date of its promulgation.
Minister of Finance Regulation No. 30/PMK.04/2020 dated April 8,
2020, regarding the Amendment of Minister of Finance Regulation No.
57/PMK.04/2017 regarding the Postponement of Excise Payments for
Manufacturers or Importers of Excisable Goods Making Payments by Way
of Affixing Excise Bands. This Regulation is aimed at maintaining the
productivity and cash flow of manufacturers of excisable goods in relation
to COVID-19. This Regulation came into force on April 9, 2020.
Minister of Finance Regulation No. 31/PMK.04/2020 dated April 13,
2020, regarding Additional Incentives for Companies that Receive Bonded
Zone Facilities and/or Ease of Import of Goods for Export Purposes for
Handling the Impact of the Corona Virus Disease. This Regulation is aimed
at anticipating the impact of COVID-19 on the industrial sector and the
availability of local goods. This Regulation came into force on the date of
its enactment.
Director General of Taxation Circular Letter No. SE-22/PJ/2020 dated
April 9, 2020, regarding Guidelines for the Extension of the Time Period
for the Implementation of the Rights and Fulfillment of Tax Obligations
Under Government Regulation in Lieu of Law Number 1 Year 2020
regarding State Financial Policy and Financial System Stability for
Handling the Corona Virus Disease 2019 (COVID-19) Pandemic and/or in
LEGAL ALERT AUGUST 2020 5
the Framework of Dealing with Threats that May Harm the National
Economy and/or Financial System Stability. This Circular Letter contains
guidelines and procedures for calculating the period of time for the
implementation of rights and the fulfilment of obligations for matters as
specified in this Circular Letter. This Circular Letter came into force on the
date of its enactment.
Director General of Taxation Circular Letter No. SE-19/PJ/2020 dated
March 31, 2020, regarding Guidelines for the Implementation of Minister
of Finance Regulation No. 23/PMK.03/2020 regarding Tax Incentives for
Taxpayers Affected by the Corona Virus Outbreak. This Circular Letter
provides guidelines for the implementation of Minister of Finance
Regulation No. 23/PMK.03/2020. It also provides guidelines for the
submission of application letters for tax incentives for taxpayers and the
submission of notification letters regarding the right to use the tax
incentives. This Regulation came into force on the date of its enactment.
Minister of Finance Regulation No. 33/PMK.010/2020 dated April 15,
2020, regarding Guidelines for the Granting of Loans from the Government
to the Head of the Deposit Insurance Agency. This Regulation stipulates
the requirements for deposit insurance agencies in acquiring loans from
the Government. It also provides guidelines for obtaining such loans. This
Regulation came into force on April 16, 2020.
Minister of Finance Regulation No. 34/PMK.04/2020 dated April 16,
2020, regarding the Granting of Customs and/or Excise and Taxation
Facilities on the Import of Goods for Handling the Corona Virus 2019
(COVID-19) Pandemic. This Regulation is aimed at accelerating the
granting of customs and/or excise and taxation facilities on the import of
goods and/or services for containing the spread of COVID-19. The facilities
granted are stipulated in this Regulation, as are the guidelines and
procedures for applying for such facilities. This Regulation came into force
on April 17, 2020.
Director General of Taxation Regulation No. PER-07/PJ/2020 dated
April 16, 2020, regarding Taxpayer Registration Locations and/or
Reporting Locations for Taxable Entrepreneurs at the Tax Service Offices
in the Regional Office of the Directorate General of Taxation for Large
Taxpayers, Tax Service Offices in the Regional Office of the Directorate
General of Taxation, Jakarta, and the Intermediate Tax Service Office. This
Regulation is aimed at providing relief and enhancing the supervision of
the fulfilment of the tax rights and obligations of business actors conducting
business activities through electronic systems. This Regulation came into
force on April 17, 2020.
Director General of Taxation Announcement No. PENG-43/PJ/2020
dated March 24, 2020, regarding Adjustment of the Submission and
Settlement of Value Added Tax Returns for Personal Carried Goods by
LEGAL ALERT AUGUST 2020 6
Foreign Passport Holders (VAT Refund for Tourists). This Announcement
states that the Value Added Tax Restitution Implementation Unit will not
provide face-to-face services for foreign tourists who wish to submit a VAT
return for personal carried goods. It states that the submission may be
done electronically, as provided by the Directorate General of Taxation.
This Announcement is effective as of the date of its issuance.
FINANCIAL SERVICES
AUTHORITY (“OJK”) /
Indonesia Stock Exchange
(“IDX”)
OJK Regulation No. 3/POJK.04/2020 dated February 19, 2020,
regarding the Behavior of Securities Companies in Conducting Business
Activities as a Securities Broker. This Regulation stipulates obligations for
securities companies conducting business activities as a securities broker,
and administrative sanctions for violations of these obligations. This
Regulation came into force on the date of its enactment.
OJK Regulation No. 8/POJK.04/2020 dated February 19, 2020,
regarding the Issuance of Foreign Depositary Receipts. This Regulation
requires that the OJK be notified of the issuance of Foreign Depositary
Receipts, along with the applicable administrative sanctions for failure to
make such notification. This Regulation came into force on the date of its
enactment.
Circular Letter of PT Indonesia Stock Exchange No. SE-00002/BEI/03-
2020 dated March 2, 2020, regarding Procedures for the Implementation
of Share Ownership Program. This Circular Letter provides the scheme
and timeline for implementing a Share Ownership Program to provide
options that may be converted to shares. It came into effect on the date of
its enactment.
OJK Regulation No. 7/POJK.04/2020 dated February 19, 2020,
regarding Public Offering of Loan Security and/or Sukuk in Currencies
other than Rupiah. This Regulation stipulates (i) additional information that
must be provided in the prospectus in relation to the public offering of debt-
based securities and/or sukuk bonds in currencies other than rupiah, (ii)
reporting obligations and (iii) the relevant administrative sanctions. This
Regulation came into force on the date of its enactment.
OJK Regulation No. 10/POJK.04/2020 dated February 19, 2020,
regarding Security Administration Bureau Reports for Issuers and Public
Companies Establishing their Own Security Administrations. This
Regulation provides reporting obligations for Security Administration
Bureaus including (i) the types of reports to be submitted, (ii) the deadlines
for report submissions, (iii) information to be included in the reports, and
(iv) applicable administrative sanctions. This Regulation came into effect
on the date of its enactment.
OJK Regulation No. 12/POJK.03/2020 dated March 17, 2020, regarding
Consolidation of Conventional Banks. This Regulation provides new
provisions for (i) conventional bank consolidation schemes, (ii) bank
LEGAL ALERT AUGUST 2020 7
business groups and (iii) minimum core capital and capital equivalency-
maintained asset requirements. This Regulation came into effect on the
date of its enactment.
Director of PT Indonesia Stock Exchange Decision Letter No. KEP-
00028/BEI/03-2020 dated March 23, 2020, regarding the Reporting of
Security Transactions through the Receiving System for Security
Transaction Reports (PLTE System). This Decision Letter provides specific
provisions for the correction of Security Transaction Reports submitted to
the PLTE System, in particular related to market information such as (i)
repo transactions data, (ii) the timing of security transactions and (iii) the
timing of reports or instructions to participants. This Decision Letter came
into force on March 24, 2020.
Director of PT Indonesia Stock Exchange Decision Letter No. KEP-
00031/BEI/03-2020 dated March 30, 2020, regarding the Amendment of
Trading Session Hours for Stock Exchange Transactions. In response to
the COVID-19 outbreak, the Indonesia Stock Exchange has shortened the
trading session hours for share transactions on the cash, regular and
negotiated markets. This Decision Letter came into effect on the date of its
release.
Director of PT Indonesia Stock Exchange Decision Letter No. KEP-
00032/BEI/03-2020 dated March 26, 2020, regarding the Amendment of
Trading Hours for State Bonds through the Electronic Trading System
Platform. This Decision Letter temporarily revokes the trading hours
stipulated in Director of PT Indonesia Stock Exchange Decision Letter No.
0037/BEI/03-2017 dated March 21, 2017, regarding Regulations on the
Trading of State Bonds through the Electronic Trading System Platform.
This Decision Letter came into force on March 30, 2020.
OJK Regulation No. 13 /POJK.03/2020 dated March 24, 2020, regarding
the Amendment of OJK Regulation No. 38/POJK.03/2016 regarding the
Implementation of Risk Management in the Use of Information Technology
by Conventional Banks. This Regulation revokes provisions regarding the
use of data in electronic systems that are placed outside the territory of
Indonesia, particularly in Article 21 (3) (a)-(c). It also adds criteria for
electronic systems that may be placed outside the territory of Indonesia, in
that such systems shall be for the purpose of providing services to global
customers. This Regulation came into force on March 31, 2020.
OJK Letter No. S-4/D.03/2020 dated March 16, 2020, regarding
Preventive Measures to Mitigate the Impact of COVID-19 on the Banking
Industry. This Letter calls on business actors in the banking sector to
implement work from home policies in accordance with their internal
procedures and business continuity plans. It came into effect on the date
of its issuance.
LEGAL ALERT AUGUST 2020 8
OJK Letter No. S-6/D.05/2020 dated March 19, 2020, regarding Efforts
to Prevent the Spread of COVID-19 within the Non-Bank Financial Industry.
This Letter calls on actors in the non-bank financial industry to take
concrete steps to prevent the spread of COVID-19 and report these steps
to the OJK. It came into force on the date of its issuance.
OJK Letter No. S-7/D.05/2020 dated March 23, 2020, regarding
Relaxation of the Reporting Deadlines of Non-Bank Financial Services
Institutions to the OJK. This Letter extends the reporting deadlines for the
above institutions in response to the spread of COVID-19 and calls on
these institutions to implement work from home policies. This Letter came
into effect on the date of its issuance.
OJK Letter No. S-9/D.05/2020 dated March 30, 2020, regarding
Countercyclical Policy Over COVID-19 Pandemic Impact on Financing
Companies. This Letter provides several measures with regard to the
application of prudential principles, risk management and good corporate
principles. It also provides that the OJK may request financing companies
to implement policies that are more stringent than the countercyclical
policies in this Letter. This Letter came into force on the date of its issuance.
OJK Letter No. S-88/D.04/2020 dated March 30, 2020, regarding the
Mitigation and Handling of the Spread of COVID-19 in the Capital Markets
Sector. This Letter provides several measures to mitigate the spread of
COVID-19 in the capital markets sector with regard to the application of
prudential principles, risk management and good corporate principles. It
also provides that the OJK may request financing companies to implement
policies that are more stringent that those in this Letter. This Letter came
into force on the date of its issuance.
OJK Letter No. S-89/D.04/2020 dated March 16, 2020, regarding
Explanation of the Implementation of Share Buy-Backs by Issuers or Public
Companies. This Letter contains a number of provisions including those on
the timing for announcing a share buy-back and the disclosure of the
identities of the parties’ receiving shares. This Letter came into force on the
date of its issuance.
OJK Regulation No. 14/POJK.05/2020 dated April 17, 2020, regarding
Countercyclical Policy Over COVID-19 Pandemic Impact on Non-Bank
Financial Services Institutions. This Regulation stipulates the deadlines for
the submission of periodical reports and contains provisions on, among
other matters, the implementation of asset quality funding and restructuring
funding. This Regulation came into effect on the date of its enactment.
OJK Regulation No. 15/POJK.04/2020 dated April 21, 2020, regarding
the Planning and Holding of General Meeting of Shareholders by Public
Companies. This Regulation contains various provisions on General
Meeting of Shareholders (“GMS”) for public companies including
LEGAL ALERT AUGUST 2020 9
procedures for planning and holding such meetings and electronic
authorization for GMS. This Regulation came into effect on the date of its
enactment.
OJK Regulation No. 16/POJK.04/2020 dated April 21, 2020, regarding
the Electronic Implementation of General Meeting of Shareholders of
Public Companies. This Regulation contains provisions on the
implementation of an electronic General Meeting of Shareholders and
relevant sanctions. It came into force on the date of its enactment.
OJK Regulation No. 17/POJK.04/2020 dated April 21, 2020, regarding
Material Transactions and the Amendment of Business Activities. This
Regulation provides the scope of material transactions, the obligations for
public companies in amending their business activities, the scope of the
required media announcement and relevant sanctions. It came into force
on the date of its enactment.
FOREIGN AFFAIRS Minister of Foreign Affairs Circular Letter No. D/00765/04/2020/64 of
2020 dated April 1, 2020, regarding Protocols for Evaluating Sick or
Deceased Foreigners in Indonesia. This Circular Letter provides evaluation
protocols for foreign nationals who are or are suspected of being COVID-
19 positive or who are hospitalized in Indonesia with an illness other than
COVID-19. It also contains protocols for repatriating the bodies of foreign
nationals who die in Indonesia from COVID-19. This Circular Letter came
into force on the date of its enactment.
HEALTH Head of the National Agency of Food and Drug Control (“BPOM”)
Regulation No. 1 of 2020 dated January 27, 2020, regarding the
Revocation of BPOM Decision No. HK.00.05.4.1745 of 2003 regarding
Cosmetics. With the issuance of this Regulation, BPOM revokes and
declares null and void BPOM Decision No. HK.00.05.4.1745 of 2003
regarding Cosmetics. This revocation was made based on the
consideration that the provisions in the earlier Decision were regulated in
several other laws and regulations in accordance with legal requirements
as well as developments in science and technology. This Regulation came
into force on the date of its enactment.
BPOM Regulation No. 2 of 2020 dated February 5, 2020, regarding
Supervision of Cosmetics Production and Distribution. This Regulation
contains provisions on the supervision of the production and distribution of
cosmetics. It also stipulates that overseas cosmetics production facilities
can be supervised by Indonesian authorities if such facilities receive
production contracts from Indonesia and/or produce products that will be
distributed in Indonesia. Administrative sanctions for violations of the
provisions of this Regulation include written warnings, temporary
prohibition on the distribution of cosmetics, withdrawal of cosmetics from
circulation, destruction of cosmetics, suspension of the production and/or
importation of cosmetics for a maximum period of one year and revocation
LEGAL ALERT AUGUST 2020 10
of notification number. This Regulation came into force on the date of its
enactment and revokes BPOM Regulation No. HK.03.1.23.12.11.10052 of
2011.
Minister of Health (“MOH”) Regulation No. 9 of 2020 dated April 3,
2020, regarding Guidelines for Large-Scale Social Distancing in the
Context of Accelerating the Handling of Corona Virus Disease 2019
(COVID-19). This Regulation provides that large-scale social distancing in
response to COVID-19 can only be introduced in a province/regency/city if
the number of cases and/or deaths due to the disease significantly and
rapidly increases and spreads to several regions, and there is an
epidemiological connection with similar events in other regions or
countries. This Regulation came into force on the date of its enactment.
MOH Decision No. HK.01.07/MENKES/239/2020 of 2020 dated April 7,
2020, regarding the Stipulation of Large-Scale Social Distancing in DKI
Jakarta Province in the Context of Accelerating the Handling of
Coronavirus Disease 2019 (COVID-19). This Decision stipulates the
obligation for large-scale social distancing in Jakarta. The regional
government of DKI Jakarta province is obligated to conduct large-scale
social distancing in accordance with the provisions of laws and regulations,
and to encourage and promote a clean and healthy lifestyle among the
community. This Decision came into force on the date of its enactment.
BPOM Regulation No. 4 of 2020 dated February 28, 2020, regarding
Working Unit for Goods/Services Procurement in BPOM. This Regulation
concerns the establishment of a Working Unit for the Procurement of
Goods/Services in BPOM (Unit Kerja Pengadaan Barang/Jasa), which is
authorized to organize and manage procedures for the procurement of
goods/services in BPOM. This Regulation came into force on the date of
its enactment and revokes BPOM Regulation No. 2 of 2018.
BPOM Regulation No. 5 of 2020 dated March 6, 2020, regarding the
Integration of Electronic Business Licensing Services for the Drug and
Food Sector. This Regulation moves licensing authority for the food and
drug sector to the Online Single Submission (“OSS") system. The business
permits to be issued through the OSS system are drug and food distribution
permit, good manufacturing practice certificate, good distribution of
medicine practice certificate, export certificate, import of drug and food
certificate, and analysis of the results of narcotics, psychotropic and
pharmaceutical precursors. This Regulation came into force on the date of
its enactment.
INDUSTRY Minister of Industry (“MOI”) Circular Letter No. 4 of 2020 dated April
7, 2020, regarding Implementation of Manufacturing Operations during the
Corona Virus Disease 2019 Public Health Emergency. This Circular Letter
addresses factory operations during the implementation of social
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distancing measures in response to COVID-19. This Circular Letter came
into effect on the date of its issuance.
MOI Letter No. B/312/M-IND/IND/IV/2020 of 2020 dated April 2, 2020,
regarding Implementation of Industrial Activities during the Emergency
Situation of the COVID-19 Pandemic. This Letter is addressed to regional
governments. The MOI expects regional governments to (i) support the
implementation of industrial activities in their respective regions during the
emergency situation; (ii) to not limit industrial activities including but not
limited to the movement of employees or the distribution of goods prior to
the stipulation of large-scale social distancing by the Ministry of Health; (iii)
in the event the Ministry of Health approves large-scale social distancing
in a particular region, the closure of industrial activities must be done
selectively, and in particular, leeway shall be given to companies that
produce products for handling COVID-19 and companies involved in
producing basic needs of society; and (iv) encourage agencies responsible
for overseeing the industrial sector to empower companies to implement
COVID-19 prevention protocols in the workplace. This Letter came into
force on the date of its issuance.
MOI Circular Letter No. 7 of 2020 dated April 9, 2020, regarding
Guidelines on Licensing Applications for Implementing Industrial Activities
during the Corona Virus Disease Public Health Emergency 2019. This
Circular Letter was issued to ensure the continuance of industrial activities
considered vital to the economy and society during the COVID-19
response. It also provides guidance for industrial companies and/or
industrial areas in operating during the COVID-19 situation. Industrial
companies and/or companies in industrial areas may continue to operate
by obtaining an operational license via siinas.kemenperin.go.id. This
Circular Letter came into force on the date of its issuance.
INVESTMENT
Chairman of the Investment Coordinating Board Decision No. 86 Year
2020 dated April 1, 2020, regarding Ease of Business Licensing for
Certain Business Sectors related to the Management of the COVID-19
Outbreak. This Decision is aimed at easing and accelerating the business
licensing process in the health equipment and pharmaceutical business
sectors. This Decision came into force on the date of its enactment.
Chairman of the Investment Coordinating Board Regulation No. 1
Year 2020 dated April 1, 2020, regarding Guidelines for the
Implementation of Electronic Integrated Business Licensing Services. This
Regulation provides detailed and comprehensive guidelines, procedures
and requirements for business licensing activities in various economic
sectors. Business licenses, investment registrations and commercial and
operational licenses issued prior to the issuance of this Regulation shall
remain valid insofar as they do not conflict with the provisions of this
Regulation. This Regulation came into force on the date of its promulgation.
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Chairman of the Investment Coordinating Board Decision No. 98 Year
2020 dated April 16, 2020, regarding License Issuance Standards. This
Decision stipulates standards for the issuance of business licenses in every
business sector as set out in the attachment to this Decision. Completion
of business permits and operational/commercial permits in the framework
of the implementation of investment is integrated with the Online Single
Submission system or done through ministerial or agency officials placed
in the Investment Coordinating Board. This Decision came into force on the
date of its issuance.
LAW AND HUMAN RIGHTS Minister of Law and Human Rights (“MOLHR”) Regulation No. 7 of
2020 dated February 28, 2020, regarding Granting Visas and Stay
Permits in Order to Prevent the Entry of Corona Virus. This Regulation
aims to strengthen measures to prevent the spread of COVID-19 in
Indonesia by limiting the granting of visas and stay permits for people from
China. This Regulation came into force on the date of its promulgation.
MOLHR Regulation No. 8 of 2020 dated March 19, 2020, regarding
Temporary Termination of Visitor Visas and Visitor Visas on Arrival and the
Granting of Emergency Stay Permits. This Regulation temporarily halts the
granting of visitor visas and visitor visas on arrival. It also addresses the
granting of emergency stay permits to foreign nationals impacted by
lockdown policies in other countries. This Regulation came into force one
day after its issuance.
Directorate General of Immigration Circular Letter No. IMI-
1873.GR.01.01 of 2020 dated March 6, 2020, regarding the
Implementation of Granting Visas and Stay Permits in Order to Prevent the
Entry of Corona Virus. This Circular Letter follows up on MOLHR
Regulation No. 7 of 2020 regarding Granting Visas and Stay Permits in
Order to Prevent the Entry of Corona Virus and provides guidance on the
implementation of that Regulation. This Circular Letter came into force on
the date of its stipulation.
MOLHR Regulation No. 11 of 2020 dated March 31, 2020, regarding
Temporary Restriction on Foreigners Entering the Republic of Indonesia.
This Regulation provides restrictions on the entry/transit of foreigners in
Indonesian territory. This Regulation came into force on April 2, 2020.
Mutual Agreement between the Supreme Court, Attorney General’s
Office and Ministry of Law and Human Rights No.
402/DJU/HM.01.1/4/2020, KEP-17/E/Ejp/04/2020 and PAS-08.HH.05.05
of 2020 dated April 13, 2020, regarding the Implementation of Court
Hearings by Teleconference. This Agreement sets forth the process for
holding court hearings by teleconference. It came into force on the date of
its issuance.
LEGAL ALERT AUGUST 2020 13
MANPOWER Minister of Manpower Circular Letter No. M/l/HK.04/11/2020 dated
February 21, 2020, regarding the Utilization of Foreign Manpower
Originating from the People’s Republic of China in the Framework of
Preventing the Outbreak of the Disease Caused by the Corona Virus. This
Circular Letter prohibits the utilization of foreign workers from China. It also
stipulates that Chinese workers with temporary jobs and still residing in
Indonesia may have their contracts extended a maximum of six months.
This Regulation came into force on the date of its enactment.
Director General of Manpower Inspection Supervision and
Occupational Safety and Health Circular Letter No.
5/193/AS.02.02/III/2020 dated March 12, 2020, regarding Preparedness
in Facing the Spread of Corona Virus in the Workplace. This Circular Letter
sets out the steps to be taken to contain the spread of COVID-19 in
workplaces, including reporting any potential infections, conducting
inspections and ensuring the implementation of occupational health and
safety measures. It came into force on the date of its issuance.
Minister of Manpower Circular Letter No. M/4/HK.04/IV/2020 dated
April 8, 2020, regarding Utilization of Foreign Manpower in the Framework
of Preventing the Outbreak of the Disease Caused by the Corona Virus
(COVID-19). This Circular Letter regulates the temporary suspension of
licensing services for the use of foreign workers. It provides an exemption
for certain workers, including those who will work on national strategic
projects in accordance with the provisions of laws and regulations. This
Circular Letter came into force on the date of its issuance and will be valid
until the authorized authority declares the COVID-19 pandemic over.
MARITIME AFFAIRS AND
FISHERIES
Minister of Maritime Affairs and Fisheries Regulation No. 9/PERMEN-
KP/2020 dated March 27, 2020, regarding Republic of Indonesia Fisheries
Management Area in Inland Water Bodies. This Regulation governs the
management of fisheries and divides the management areas into 14 types.
This Regulation came into force on the date of its enactment.
PRESIDENTIAL
RGULATION
Presidential Regulation No. 36 of 2020 dated February 28, 2020,
regarding Development of Work Competence through the Pre-Employment
Card Program. This Regulation was issued to implement the pre-
employment card program. This program is intended to develop the
competency of employees and increase employee productivity and
competitiveness. This Regulation sets forth the procedures to register for
the program, incentives, training, funding and the government’s role of the
program. It came into force on the date of its issuance.
Government Regulation No. 18 of 2020 regarding Revocation of
Government Regulation No. 34 of 1991 regarding Procedures for
Patent Request and Government Regulation No. 11 of 1993 regarding
Form and Content of Patent Letter dated February 28, 2020. This
Regulation was issued to revoke Government Regulation No. 34 of 1991
LEGAL ALERT AUGUST 2020 14
and Government Regulation No. 11 of 1993 because of inconsistencies
between those two regulations and Law No. 13 of 201i6 regarding Patents.
The Regulation came into force on the date of its issuance.
Presidential Regulation No. 38 of 2020 dated February 28, 2020,
regarding Types of Positions that Can Be Filled by Government Officers
under an Employment Agreement. This Regulation sets out the positions
that can be filled by government officers under an employment agreement.
There are two types of positions that can be filled, those being functional
positions and high leadership positions. This Regulation further governs
the criteria for the positions. It came into effect on the date of its issuance.
Presidential Regulation No. 44 of 2020 dated March 16, 2020, regarding
Certification System for Indonesian Sustainable Palm Oil Plantations. This
Regulation was issued with the stated intention of improving the
certification system for sustainable palm oil plantations. This Regulation
covers, among other topics, (i) Indonesian sustainability certification for
palm oil plantations; (ii) market competitiveness and participation; (iii)
guidance and monitoring; and (iv) sanctions. It came into effect on the date
of its issuance.
PUBLIC WORKS AND
PUBLIC HOUSING
Minister of Public Works and Public Housing (“MPWPH”) Regulation
No. 6 of 2020 dated February 18, 2020, regarding the Amendment of
MPWPH Regulation No. 27/PRT/M/2015 regarding Dams. This Regulation
aims to support the development of solar power plants by amending
provisions on space utilization for dams. It came into effect on the date of
its issuance.
MPWPH Regulation No. 4 of 2020 dated February 13, 2020, regarding
Standard Operating Procedures for the Implementation of Drinking Water
Supply System. This Regulation provides standard operating procedures
to manage and develop drinking water supply systems. These procedures
are to be used by state-owned enterprises, regional-owned enterprises,
technical administrative units and the administrators of technical agencies.
This Regulation came into effect on the date of its issuance.
REGIONAL REGULATION Governor of DKI Jakarta Regulation No. 12 Year 2020 dated January
30, 2020, regarding Guidelines for the Fulfillment of Spatial Utilization
Obligations by License Holders and/or Non-License Holders. This
Regulation stipulates the types of spatial utilization licenses/non-licenses
and their respective obligations. It came into force on February 5, 2020.
Governor of DKI Jakarta Regulation No. 33 Year 2020 dated April 9,
2020, regarding the Implementation of Large-Scale Social Distancing in
Handling Corona Virus Disease 2019 (COVID-19) in the Province of DKI
Jakarta. This Regulation provides restrictions on activities outside the
home in order to prevent the spread of COVID-19. It also provides certain
LEGAL ALERT AUGUST 2020 15
requirements, such as the obligation to wear a mask when outside the
home. This Regulation came into force on the date of its enactment.
Governor of DKI Jakarta Decision No. 380 Year 2020 dated April 9,
2020, regarding the Enforcement of Large-Scale Social Distancing in
Handling Corona Virus Disease 2019 (COVID-19) in the Province of DKI
Jakarta. This Decision regulates the enforcement of large-scale social
distancing for a period of 14 days, from April 10, 2020 to April 23, 2020. It
may be extended on the recommendation of the Task Force for the
Acceleration of the Handling of COVID-19. This Decision came into force
on April 10, 2020.
TAXATION Director General of Customs and Excise Circular Letter Number SE-
02/BC/2020 dated February 18, 2020, regarding Research Guidelines on
the Importation of Goods Originating from China Using the ACFTA
Preferential Tariff Scheme (SKA Form E) as an Impact of the Corona Virus
Epidemic. This Circular Letter grants flexibility in the submission of the
original SKA Form E. It also stipulates the requirements for the granting of
preferential tariffs. This Circular Letter came into force on the date of its
issuance.
Collective Decision of the National Management Authority and the
Director General of Customs and Excise Decision No. 01/BNPB/2020
and KEP-113/BC/2020 dated March 20, 2020, regarding the Acceleration
of the Importation of Goods and/or Services for the Handling of Corona
Virus Disease 2019 (COVID-19). This Decision is aimed at providing
leniency in implementing the entry of goods. It also provides leniency in the
submission of applications for import duty, excise and/or import tax
exemptions for imported goods for the purpose of handling the spread of
COVID-19. This standard operational procedure shall be effective until
otherwise determined by the Government. This Decision came into force
on the date of its enactment.
Director General of Customs and Excise Circular Letter No. SE-
07/BC/2020 dated March 30, 2020, regarding Research Guidelines for the
Importation of Goods Using Import Duty Tariff Scheme Based on
International Agreement (Preferential Tariff) as an Impact of the Corona
Virus Disease (COVID-19) Pandemic. This Circular Letter regulates,
among other things, in the submission of an original Information of Origin
Letter (Surat Keterangan Asal or “SKA”). It came into force on the date of
its issuance.
TOURISM
Minister of Tourism and Creative Economy (“MTCE”) Regulation No.
6 of 2020 dated March 6, 2020, regarding Organization of Tourism
Business Certification. This Regulation provides the process for business
tourism certification by the Tourism Business Certification Institution
(Lembaga Sertifikasi Usaha or “LSU”). The certificate will be valid for three
years. This Regulation came into force on the date of its promulgation.
LEGAL ALERT AUGUST 2020 16
MTCE Circular Letter No. 2 of 2020 dated March 31, 2020, regarding
Follow-Up on Recommendations to Prevent the Spread of Corona Virus
Disease 2019 (COVID-19). This Circular Letter follows up on the
presidential instruction on handling COVID-19. It orders tourism and
creative economy agencies to, among other things, (i) report developments
related to the spread of COVID-19 in their respective regions to the COVI-
D-19 Response Acceleration Task Force; (ii) monitor and report on the
impact of COVID-19 on tourism and the creative economy; (iii)
communicate the Ministry of Health’s standard operating procedures for
handling COVID-19 through social media, print media, radio and other
messaging apps; (iv) coordinate with manpower agencies in putting in
place measures to prevent companies from terminating employees; (v)
ensure employees are paid their salaries in accordance with Minister of
Manpower Circular Letter No. M/3/HK.04/III/2020; (vi) provide support in
the form of staple foods to informal workers at tourism destinations closed
by COVID-19; and (vii) implement measures to protect remuneration for
employees in the tourism and creative economy sector. This Circular Letter
came into force on the date of its issuance.
TRADE Minister of Trade (“MOTr”) Regulation No. 8 of 2020 dated February
10, 2020, regarding Online Single Submission in the Trade Sector. This
Regulation amends provisions of MOTr Regulation No. 77 of 2018
regarding the same matter. It sets out the framework for the application for
and issuance of Business Permits in the trade sector. It provides that there
are two types of Business Permit that may be applicable for a company
engaging in the trade sector, which are (i) Business License (Izin Usaha)
and (ii) Commercial/Operational License (Izin Komersial/Operasional). A
Business License is required for every business actor conducting business
and/or activities in the trade sector. A Commercial/Operational Permit is
required to carry out commercial or operational activities, if required. Annex
I of the Regulation further prescribes the applicable Business Permit,
based on the Indonesian Standard Business Field Classification (KBLI).
This Regulation came into force on the date of its enactment and revokes
MOTr Regulation No. 77 of 2018.
MOTr Regulation No. 15 of 2020 dated February 27, 2020, regarding
Provisions on the Export of Forestry Products. This Regulation provides
several requirements to be met by exporters of forestry products, which
includes (i) licensing, (ii) technical criteria for forestry products to be
exported, (iii) verification or technical tracking of the forestry products to be
exported and (iv) an export realization report. This Regulation came into
force on May 27, 2020, and revokes MOTr Regulation No. 84/M-
DAG/PER/12/2016, as amended several times, lastly by MOTr Regulation
No. 38/M-DAG/PER/6/2017.
MOTr Regulation No. 27 of 2020 dated March 18, 2020, regarding the
Amendment of MOTr Regulation No. 44 of 2019 regarding Provisions on
the Import of Horticulture Products. Under this Regulation, horticulture
LEGAL ALERT AUGUST 2020 17
products in the form of onions with tariff line/HS 0703.10.19 and garlic with
tariff line/HS 0703.20.90 shipped from the loading port by no later than May
31, 2020, are exempt from import approvals and surveyor reports as
stipulated in MOTr Regulation No. 44 of 2019. The shipment of horticulture
products shall be evidenced by a bill of lading. The provisions of the Annex
to this Regulation are valid until May 31, 2020. This Regulation came into
force on the date of its enactment.
MOTr Regulation No. 28 of 2020 dated March 23, 2020, regarding the
Eighth Amendment of MOTr No. 87/M-Dag/PER/10/2015 regarding
Provisions on the Import of Certain Products. In response to the COVID-
19 pandemic, the government issued this Regulation to exclude several
tariff lines/HS numbers related to, among other goods, antiseptic, raw
materials for face masks, personal protective equipment and masks from
the requirement to have a surveyor report in the country of origin or the port
of loading and restrictions on the port of entry. Therefore, the import of
products as stipulated in this Regulation does not require any licensing and
the shipment of certain products will only need to be proven by a bill of lading.
This exclusion is effective until June 30, 2020. This Regulation came into
force on the date of its enactment.
MOTr Regulation No. 33 of 2020 dated March 26, 2020, regarding Goods
that May Be Stored in a Warehouse Receipt System. This Regulation sets
forth the requirements for goods that may be stored in a Warehouse
Receipt System, including that they are able to be stored for at least three
months, meet a certain standard quality and fulfill the technical
requirements set forth by the Head of the Trading Regulatory Agency for
Perpetual Commodities. Article 4 of this Regulation further sets forth the
types of goods that may be stored in a Warehouse Receipt System. This
Regulation came into force on the date of its enactment and revokes MOTr
Regulation No. 37/M-DAG/PER/11/2011.
MOTr Regulation No. 37 of 2020 dated March 31, 2020, regarding the
Second Amendment of MOTr No. 118 of 2018 regarding Provisions on the
Import of Second-Hand Capital Goods. In response to the COVID-19
pandemic, the government issued this Regulation to ease the process of
importing certain second-hand capital goods. The products included in the
Annex to this Regulation are exempted from the requirements applicable
for the import of second-hand capital goods as stipulated in MOTr
Regulation No. 118 of 2018. Annex VI of this Regulation lists several
second-hand capital goods relevant to industries producing items for
COVID-19 countermeasures. As opposed to the requirements applicable
under MOTr No. 118 of 2018, such imported goods must simply obtain a
recommendation from the Task Force for the Acceleration of the Handling
of COVID-19 or an appointed official. Further, this Regulation provides that
these second-hand goods which are shipped from the port of loading no
later than June 30, 2020, will be exempted from the requirement to provide
an Import Approval and Surveyor Report. The above provisions are
LEGAL ALERT AUGUST 2020 18
effective until June 30, 2020. This Regulation came into force on April 2,
2020.
MOTr Regulation No. 40 of 2020 dated April 8, 2020, regarding
Provisions on the Use of National Sea Transportation and National
Insurance for the Export and Import of Certain Goods. This Regulation
provides that exporters of coal and crude palm oil, and importers of rice
and goods for the procurement of government goods, are required to use
national sea transportation and national insurance. However, specifically
for the use of national sea transportation, the obligation only applies to the
use of sea transportation with the capacity of up to 15,000 deadweight
tonnage. This Regulation came into force on May 1, 2020, and revokes
MOTr Regulation No. 82 of 2017, as amended by MOTr Regulation No. 80
of 2018.
TRANSPORTATION
Minister of Transportation (“MOT”) Decision No. KM 4 of 2020 dated
January 15, 2020, regarding Sea Freight Transportation Rates for the
Implementation of the Public Service Obligation in 2020. This Decision sets
forth the rates for sea freight transportation, which is not inclusive of
additional insurance costs for the goods transported. This Decision applies
retroactively from January 1, 2020. It revokes MOT Regulation No. KM. 89
of 2019, as amended by MOT Regulation No. KM 224 of 2019.
MOT Regulation No. PM 10 of 2020 dated February 24, 2020, regarding
Guidelines for the Organization of Public Service Obligations for the
Transportation of Goods on Roads from and to Underdeveloped, Remote,
Outer and Border Areas. This Regulation provides that the transportation
of goods on roads from and to underdeveloped, remote, outer and border
areas shall be carried out by Pioneering Freight Transportation (Angkutan
Barang Perintis) companies. This Regulation came into force on the date
of its enactment.
MOT Decision No. KM 30 of 2020 dated February 5, 2020, regarding the
Amendment of MOT Decision No. KP 432 of 2017 regarding the National
Port Master Plan. This Decision amends MOT Decision No. KP 432 of 2017
by (i) adding 1 Public Terminal in East Nusa Tenggara province and (ii)
changing the total recapitulation of Public Terminals for the years 2017,
2022, 2027 and 2037 to 56 terminals respectively. This Decision came into
force on the date of its enactment.
MOT Regulation No. PM 18 of 2020 dated April 9, 2020, regarding
Transportation Control in the Context of the Prevention of the Spread of
Corona Virus Disease (COVID-19). In response to the COVID-19
pandemic, the government issued this Regulation to regulate sanitary and
social distancing requirements during the pandemic. This Regulation also
addresses transportation controls in areas implementing social distancing
restrictions. It came into force on the date of its enactment.
LEGAL ALERT AUGUST 2020 19
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