regulatory updates due to the impact of covid-19 · this regulatory update is a growing article and...

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REGULATORY UPDATES DUE TO THE IMPACT OF COVID-19

Contents:

A. Overview ......................................................................................................................... 2

B. Fiscal Incentives .............................................................................................................. 2

C. Manpower ....................................................................................................................... 3

D. Province of DKI Jakarta ................................................................................................... 6

E. Immigration..................................................................................................................... 8

F. Export ............................................................................................................................ 11

G. Import ........................................................................................................................... 12

H. Financial Services .......................................................................................................... 14

I. Public Companies .......................................................................................................... 15

J. Investment .................................................................................................................... 16

K. Tax Holiday .................................................................................................................... 16

L. Court Trial ..................................................................................................................... 17

M. Excise ............................................................................................................................. 18

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A. Overview

The World Health Organization (WHO) declared Covid-19 a global pandemic as the Covid-19 rapidly spread from Asia to the Middle East, Europe and the United States. In amidst the Covid-19 outbreak to the territory of the Republic of Indonesia, the Indonesian Government has issued several policies to handle the impact of Covid-19.

B. Fiscal Incentives In order to boost the Indonesian economy due to the impact of the ongoing coronavirus outbreak within Indonesia, Indonesia's Minister of Finance, Mrs. Sri Mulyani, recently issued a fiscal stimulus as follows:

Relaxation of Article 21 Income Tax (PPh Pasal 21)

Relaxation is provided through the Article 21 Government Borne (DTP) Income Tax scheme of 100% of workers' income of up to Rp. 200 Million in the manufacturing sector (including Import Ease of Export Purpose / KITE and Ease of Import of Export Purposes - Small and Medium Industries / IKM KITE). PPh DTP is given for 6 months, starting from April to September 2020. The amount of value borne by the government is Rp. 8.60 Trillion. It is expected that workers in the manufacturing sector will receive additional income to maintain purchasing power.

Relaxation of Article 22 Income Tax on Import (PPh 22 Impor)

Relaxation is given through the exemption of Article 22 Import PPh exemption scheme for 19 specific sectors, KITE Taxpayers, and IKM KITE Taxpayers. Exemption from Income Tax Article 22 Imports are given for 6 months starting from April to September 2020 with a total estimated exemption of Rp. 8.15 Trillion. This policy was adopted as an effort to provide cash flow space for the industry as compensation for switching costs (costs related to changes in the country of origin of imports).

Relaxation of Article 25 Income Tax (PPh Pasal 25)

Relaxation is provided through an Article 25 tax reduction scheme of 30% to 19 specific sectors, KITE Taxpayers, and KITE-IKM Taxpayers for 6 (six) months from April to September 2020 with a total estimated reduction of Rp. 4.2 Trillion. As is the case with Article 22 Import Tax relaxation, through this policy it is expected that the industry will obtain cash flow space as compensation for switching costs (costs related to changes in the country of origin of imports and export destinations). In addition, by changing the export destination countries, it is hoped that exports will increase.

Disclaimer: This Regulatory Update is a growing article and we will attempt to provide the latest updates available on the COVID-19 related regulations issued by the Government of Indonesia.

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Relaxation of Restitutions of Value Added Tax (PPN)

Relaxation is provided through the restitutions of accelerated PPN (preliminary returns) for 19 specific sectors, WP KITE, and WP KITE-IKM. PPN restitutions are accelerated for 6 months, starting from April to September 2020 with a total estimated restitution of Rp. 1.97 Trillion. There is no limit on the value of special PPN restitutions for exporters, while for non-exporters the amount of VAT restitutions is set at a maximum of Rp. 5 Billion. With the acceleration of restitution, taxpayers can be more optimal in maintaining liquidity.

These are 19 industries referred above in the provisions on relaxation of PPh 22 Impor, PPh Pasal 25 and PPN stated by the Indonesia’s Minister of Industry:

1. Chemical and goods from chemical industry 2. Electrical equipment industry 3. Manufacture of motor vehicles, trailers and semi-trailers 4. Pharmaceutical industry, chemical drug products and traditional medicines 5. Basic metal industry 6. Other transportation equipment industry 7. Paper and goods from paper industry 8. Food industry 9. Computers, electronics and optical goods industry 10. Machinery and equipment industry 11. Textile industry 12. Rubber, goods from rubber and plastic industry 13. Furniture industry 14. Printing and reproduction of recording media industry 15. Non-metal mining industry 16. Non-machinery metal industry and its equipment 17. Finished materials industry 18. Beverage industry 19. Leather, leather goods and footwear industry

*It should be noted that this fiscal stimulus is still in the form of notification issued by the Indonesia’s Minister of Finance, so far there has been no form of regulation issued.

Manpower In the wake of an increasing number of positive Covid-19 cases in Indonesia, the Indonesia’s Minister of Manpower, Mrs. Ida Fauzia, has issued several employment policies in relation with the impact of COVID-19.

Circular of the Minister of Manpower No. M/1/HK.04/II/2020 on the Utilization of Foreign Workers from The People’s Republic of China:

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In connection with situations and emergencies issued by the World Health Organization (WHO) because of a disease outbreak caused by the corona virus in the People's Republic of China (PRC) and efforts in providing protection, the government takes the following steps:

1. Prohibit and suspend the use of foreign workers from China. 2. For foreign workers who are employed in temporary jobs and still living in Indonesia

can still be extended for a maximum of 6 (six) months. 3. This Circular Letter shall come into force as from the date of stipulation up to

February 29, 2020 and will re-evaluated.

Circular of the Minister of Manpower No. M/3/HK.04/III/2020 on Protection of Workers and Business Continuity in Precaution and Prevention of COVID-19:

This circular asked the Governors in Indonesia to implement 2 (two) employment issues in their respective provinces of Indonesia, namely:

1. Prevent and handle cases related to the Covid-19 in the work environment The steps include guidance and supervision of the implementation of regulations in the field of Occupational Safety and Health (Kesehatan dan Keselamatan Kerja-K3) and also disseminating information to all levels of the organization and related parties in the area of guidance and supervision. Further, register and report to the relevant agencies every case or the alleged COVID-19 case at work and instruct to the all companies to anticipate the spread of COVID-19 to workers / laborers by taking preventative measures. Preventive measures include clean and healthy living behaviors by integrating into the K3 program, empowering the Committee for Guidance for Occupational Safety and Health (Panitia Pembina Keselamatan dan Kesehatan Kerja-P2K3) and optimizing the function of occupational health services. This circular also encourage every companies to immediately prepare a preparedness plan and deal with COVID-19 with the aim of minimizing the risk of transmission at work and maintaining business continuity. In the event that there are workers / laborers or employers who are at risk, suspected or experiencing illness due to COVID-19, steps are taken according to health standards issued by the Ministry of Health.

2. Protection of wage for workers / laborers related to the COVID-19 outbreak

For workers / laborers who are categorized as Monitoring in Persons (Orang dalam Pengawasan-ODP) related to COVID-19 based on the doctor's statement so that they do not come to work for a maximum of 14 days or according to the Ministry of Health standards, then the wages are paid in full.

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Moreover, for workers / laborers who are categorized as suspect cases of COVID-19 and are quarantined / isolated according to doctor's statement, then the wages are paid in full during the quarantine / isolation period. For workers / laborers who do not come to work due to illness of COVID-19 and evidenced by a doctor's statement, the salary is paid according to the statutory regulations. Whereas for companies that limit business activities due to government policies in their respective regions for the precaution and prevention of COVID-19, causing some or all of their workers to not come to work, with regards to business continuity, then changes in the amount and method of payment for workers / laborers' wages are carried out in accordance with the agreement between employers and workers / laborers.

Circular of the Director General of Manpower Inspection and Occupational Health and Safety No. 5/193/AS.02.02/III/2020 on Preparedness in Facing the Spread of COVID-19 in the Workplace

To anticipate and minimize the impact of the spread of COVID-19 in the workplace, it needs to take immediate steps systematically and effectively as an act of preparedness to the occurrence of a pandemic, for that reason appealed to the head of agency in charge of employment province to take the following steps:

1. To provide guidance and supervision of the implementation of laws and regulations

in the field Occupational Safety and Health (K3), especially in the prevention of COVID-19 cases in the workplace.

2. Disseminating information to all levels of the organization and related parties within your area of guidance and supervision regarding the COVID-19 case at work and its impact on the employment sector.

3. Record and report to relevant agencies each case / which is reasonably suspected of the COVID-19 case in the workplace.

4. Oblige each Company Leader to anticipate the COVID-19 cases at work by taking precautionary measures such as hygiene behavior and healthy by integrating in the Occupational Safety and Health (K3) program, K3 Empowerment Committee and optimizing the function of occupational health services.

5. Register companies that have taken the actions as referred to in number 4 and 5. To every company management to: 1. Implement the provisions in Manpower Regulation Number PER.02 / MEN / 1980

concerning Examination Health of Workers in the Implementation of Work Safety and Manpower Regulation Number PER.03 / MEN / 1982 concerning Occupational Health Services as part of the application of the conditions occupational Health and Safety.

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2. Encourage every company management to immediately make a preparedness plan in dealing with the COVID -19 pandemic with the aim of minimizing risks to workers and business continuity by taking actions including: a. Increased manager-level awareness in order to apply preparedness to

possibilities the onset of the COVID -19 pandemic; b. Anticipating an attendance rate of 30% for a minimum period of 3 (three)

months 1 / 2 by completing the attendance percentage matrix to determine the vulnerable points;

c. Determine the most important parties and business activities that are vital or essential in the framework maintaining business continuity in the condition of the COVID -19 pandemic;

d. Prepare for a simple delegation process in granting approval at company; 3. Guiding workers / laborers to implement preventive measures:

a. Worker education about COVID-19 (causes, symptoms, transmission and prevention);

b. Maintain cleanliness of the work environment; c. Providing access to hand washing facilities in the form of running water and

liquid soap or hand sanitizers in public areas, such as, entrances, elevators, toilets, etc.;

d. Maintain cleanliness of the hands, especially before holding the mouth, nose and eyes, as well after holding a public installation:

e. Wash your hands with water and liquid soap and rinse for at least 20 seconds; f. Covering the mouth with a tissue when sneezing or coughing and throwing the

tissue in the trash; g. If there are workers who have fever symptoms (38°C) or there is a history of

fever accompanied with one of the symptoms of respiratory disorders such as cough, runny nose, sore throat, tightness breathing and has a risk factor for COVID-19 to immediately go to the nearest health facility;

h. Inform workers who are on duty in the outbreak country / region and experiencing health problems, they should use masks and seek local health services;

i. Workers returning from outbreak areas should report to the nearest health facility as well provide travel history and bring a certificate of health when entering back to work.

4. Prepare a Company’s preparedness plan in dealing with the disease. 5. Coordinate with related parties in efforts to prevent the spread of COVID-19 cases in

workplace.

C. Province of DKI Jakarta In order to anticipate the spread of Coronavirus Disease (COVID-19) in the Province of DKI Jakarta, the Government of Province of DKI Jakarta has therefore issued provincial policies, as follows sequentially:

Circular of the Head of Manpower, Transmigration and Energy Agency of the Province of DKI Jakarta No. 14/SE/2020 concerning Appeals to Work From Home

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Following up on Instruction of Governor of the Province of DKI Jakarta Number 16 of 2020 concerning Increased Awareness against the Risk of Corona Virus Disease Transmission (COVID-19) infection and based on development considerations of the current conditions in the Province of DKI Jakarta are hereby convey the following matters:

1. It is hoped that the company management can take preventative measures related to the risk of transmission of a Corona Virus Disease (COVID-19) infection can do the work at home.

2. These preventive measures can be grouped into 3 categories as follows: a. The company can temporarily stop all of its business activities. b. The company can temporarily reduce some of its business activities (in part

employees, time and operational facilities). c. Companies that cannot stop their business activities, given their interests

directly related to the Health Services, Supplies of Basic Materials and BBM. 3. In taking the above policy steps, to involve Workers/ Laborers and/ or trade unions/

labor unions in the company. 4. Report the policy steps taken to the Agency of Manpower, Transmigration, and

Energy and the Sub-Agency of Manpower, Transmigration and Energy in the 5 (five) Municipalities Administration of DKI Jakarta and the Thousand Islands Administrative District.

Appeals of Governor of the Province of DKI Jakarta Number 6 of 2020 concerning Temporary Suspension of Office Activities in order to Prevent the Spread of Coronavirus Disease (COVID-19) Outbreak Governor of DKI Jakarta, Mr. Anies Baswedan appeals all companies located in the Province of DKI Jakarta to seriously and immediately take the following actions:

1. Stop all office activities for a temporary, close operational facilities, and carry out business activities from home.

2. For companies that can not to stop their total office activities, are asked to reduce their office activities to a minimum (number of workers, working time, and operational facilities). Encourage as many workers as possible to work from home.

3. Paying attention to Circular of the Minister of Manpower No. M/3/HK.04/III/2020 on Protection of Workers and Business Continuity in Precaution and Prevention of COVID-19

4. This appeal is valid for 14 days from March 20, 2020 to April 2, 2020. 5. Related information:

a. the spread of COVID-19 can be seen through the site: https://corona.jakarta.go.id.

b. guidelines related to prevention measures of COVID-19 (posters, standing banners, etc.) can be downloaded via the link: https://bit.ly/PublikasiCoronaDKI.

Governor of DKI Jakarta, Mr. Anies Baswedan stated that the prevention of the spread of COVID-19 can only be done if all components of public including the business, simultaneously and in a disciplined manner implement strict restrictions on direct contact.

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Circular of the Head of Manpower, Transmigration and Energy Agency of the Province of DKI Jakarta No. 3590/SE/2020 concerning Following up on Appeals of Governor of the Province of DKI Jakarta Number 6 of 2020

1. All companies should implement the Governor’s policy to organize their workers to be able to work from home.

2. For company sectors involving the basic needs of public, as follows:

health

food

energy

financial services and payment system can still manage their workers to carry out work activities in the office while implement all prevention protocols of the spread of COVID-19 in a very strict and disciplined manner.

3. For companies that include in point number 2 above, shall report the prevention measure of the spread of COVID-19 that implemented in their companies. The report must be send via e-mail to Agency of Manpower, Transmigration, and Energy (DISNAKERTRANS) and the Sub-Agency of Manpower, Transmigration and Energy (SUDIN-NAKERTRANS) in the 5 (five) Municipalities Administration of DKI Jakarta and the Thousand Islands Administrative District, as follows:

[email protected] (DISNAKERTRANS of DKI Jakarta)

[email protected] (SUDIN-NAKERTRANS of South Jakarta)

[email protected] (SUDIN-NAKERTRANS of Central Jakarta)

[email protected] (SUDIN-NAKERTRANS of West Jakarta)

[email protected] (SUDIN-NAKERTRANS of North Jakarta)

[email protected] (SUDIN-NAKERTRANS of East Jakarta)

[email protected] (SUDIN-NAKERTRANS of Thousand Islands)

4. The report must be submitted not later than 22nd April 2020.

E. Immigration On 20 March 2020, the Regulation of the Minister of Law and Human Rights (“MOLHR”) Number 8 of 2020 on Temporary Suspension of Visa Exemption and Visa on Arrival as well as Granting of Emergency Stay Permit (“Regulation 8/2020”), as the additional regulation to MOLHR Regulation No. 7/2020 on Visa and Stay Permit Granting in Efforts to Prevent Coronavirus Outbreak (“Regulation 7/2020”). Given the increasing number of countries affected by the COVID-19 and that the provisions in Regulation 7/2020 only applies to Chinese citizens and other foreign citizens from China, the Ministry of Law and Human Rights has therefore issued such regulation.

The Regulation 8/2020 stipulates that the granting provisions are applied ‘mutatis mutandis’ (meaning that it makes all the necessary relevant changes, i.e. replacing ‘China’ with 'any affected countries') to Regulation 7/2020.

mailto:[email protected]







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Under the Regulation 8/2020, the additional provisions in the restrictions on granting Visas and Stay Permits are enforced as follows:

• Visa Exemption and Visa on Arrival

With the issuance of this regulation, the Visa Exemption program and Visa on Arrival program are now temporarily suspended for any foreign citizens from any countries.

• Visit Visa and Limited-Stay Visa

The arrangement to obtain a Visit Visa and Limited-Stay Visa also now applies to any foreign citizens who submit visa applications at an Indonesian Representative in any country by providing required documents as mentioned below in point No. 2.

• Emergency Permit

For any foreign citizens who are currently in Indonesia and affected by a Lockdown policy from a country so they are unable to fulfill immigration procedures, then may be granted an/a:

• Emergency Stay Permit

• KITAS

• KITAP

• Re-Entry Permit

• Entry Permit

For foreigners who are subject to Visit Visa on Arrival may still be granted for applying their visa at the Indonesian Representative in any country and shall meet the following requirements:

• A certificate of health stating that the applicant is free from the coronavirus, issued by the local state health authority in the English language;

• A statement that the applicant has stayed for 14 (fourteen) days in the territory of China that are declared free from coronavirus;

• A statement of willingness to be quarantined for 14 (fourteen) days to be carried out by the Indonesian Government; or

Meanwhile, the Regulation 7/2020 specifically addresses restrictions on granting Visas and Stay Permits for Chinese citizens and other foreign citizens who have stayed in China with the following provisions:

1. Visa Exemption and Visa on Arrival

The granting of Visa Exemption and Visa on Arrival are temporarily suspended for foreigners who have stayed in and/or visited China within 14 (fourteen) days prior to entering the territory of the Republic of Indonesia.

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2. Visit Visa and Limited-Stay Visa

Visit Visa and Limited-Stay Visa may still be granted to any foreign citizens applying for a visa to Foreign Officials at the Indonesian Representative in China as long as the applicant is able to provide these required documents: • A certificate of health stating that the applicant is free from the coronavirus, issued by

the local state health authority in the English language;

• A statement that the applicant has stayed for 14 (fourteen) days in the territory of China that are declared free from coronavirus;

• A statement of willingness to be quarantined for 14 (fourteen) days to be carried out by the Indonesian Government; or

• A statement of willingness to stop by/transit for 14 (fourteen) days in another country that is free from the coronavirus before entering the territory of the Republic of Indonesia.

3. Emergency Stay Permit

In the event of a coronavirus outbreaks as declared by the World Health Organization (WHO) and in the absence of any transportation available for travel from Indonesia to China, an Emergency Stay Permit may be granted. The guarantors or foreigners must submit an application along with the required documents provided by the Immigration Office.

4. KITAS and KITAP

Chinese citizens holding Indonesian Limited Stay Permits (KITAS) may be granted a KITAS extension after obtaining a recommendation letter or a notice statement from the authorized government institution, as long as the validity of their current KITAS has not exceeded 6 (six) years. Meanwhile, for an Indonesian Permanent Stay Permit (KITAP) holder may be granted a Re-Entry Permit in emergency situations by submitting an application to Immigration Officials at the Indonesian Representative abroad. The guarantor(s) may submit a Stay Permit extension for any foreign citizens who hold a KITAS or KITAP who are in China to the Head of the Immigration Office without the presence of the applicant(s) by providing a recommendation letter or a notice statement from the authorized government institution.

5. Granting an Entry Stamp

It is important to note that all applicants under this regulation will first undergo a health examination once they have arrived in Indonesia prior to being granted an Immigration Entry Stamp. If the health examination has proven that the applicant(s) are infected with COVID-19, the Immigration Officer at the Immigration Checkpoint or other places will deny entry to the applicants.

In conclusion, this limitation to the granting of Visa and Stay Permit for any foreign citizens from any countries aims to prevent a coronavirus outbreak in the territory of the Republic of Indonesia.

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F. Export The Ministry of Trade issued Regulation of Minister of Trade Number 31 of 2020 on Amendment to Regulation of Minister of Trade Number 23 of 2020 on Temporary Export Ban for Antiseptic, Mask Raw Material, Personal Protective Equipment, and Masks (Regulation 31/2020), which came into force on March 27, 2020. With the issuance of Regulation 31/2020, Exporters are temporary banned for exporting:

Tariff Post Description of Goods

A 22.07

Non-denatured ethyl alcohol with an alcohol content of 80% or more by volume; ethyl alcohol and other alcohols, denatured at any level.

2207.10.00

Non-denatured ethyl alcohol with an alcohol content of 80% or more by volume

2207.20 Ethyl alcohol and other alcohols, denatured at any level

2207.20.11 Ethyl alcohol with an alcohol content exceeds 99% by volume

2207.20.19 Etc.

2207.20.90 Etc.

B

30.04

Medicine (not including goods of tariff post 30.02, 30.05 or 30.06) consist of mixed products or not for therapeutic or prophylactic purposes, prepared in certain doses (including in the form of a transdermal distribution system) or in the form or package for retail sale.

3004.90 Etc.

Ex.3004.90.30 Antiseptic hand rub, hand sanitizer and the like which are alcohol based

C

38.08

Insecticides, rodenticides, fungicides, herbicides, anti-sprouting products and plant growth regulators, disinfectants and similar products, prepared in the form or package for retail sale or as preparations or goods (for example ribbons, wicks and candles processed with sulfur, and fly paper ).

3808.94 Disinfectant

Ex.3808.94.10

Hand rub, hand sanitizer and the like contain a mixture of coal tar and alkali acids

Ex.3808.94.20 Hand rub, hand sanitizer and the like in aerosol packaging

Ex.3808.94.90

Hand rub, hand sanitizer and the like other than those containing a mixture of coal tar and alkali acids, and not in aerosol packaging

D 56.03

Nonwovens, whether or not impregnated, coated, covered, laminated or not.

Ex.56.03.11.00

Non-woven meltblown nonwoven fabric is made from artificial filaments weighing not more than 25 g / m2

Ex.56.03.91.00

Non-woven meltblown nonwoven fabric made from materials other than artificial filaments weighing not more than 25 g / m2

E 62.10

Garments, made from fabrics of tariff post 56.02, 56.03, 59.03, 59.06, or 59.07.

6210.10 Made from fabrics of tariff post 56.02, 56.03

Ex.6210.10.19 Medical protective clothing

F 62.11 Track suits, ski suits and swimwear; other garment

6211.43 From man-made fibers:

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6211.43.10 Surgical Wear.

G 63.07 Other finished goods, including clothing patterns.

6307.90 Etc:

6307.90.40 Surgical mask.

Ex.6307.90.90 Other masks of nonwoven material, besides surgical masks.

This temporary export ban is valid until June 30, 2020. Further, Exporters who violate the provisions will be subject to sanctions in accordance with the prevailing regulations.

G. Import

Joint Standards Operational Procedures of the Directorate General of Customs and Excise and National Disaster Management Agency The Directorate General of Customs and Excise (DJBC) of Ministry of Finance, together with the National Disaster Management Agency (BNPB), have set joint Standards Operational Procedures to accelerate the import of goods for COVID-19 pandemic. This is regulated in Decree of BNPB Number 01/ BNPB/2020 and Decree of DJBC Number 113/BC/2020 which came into force on March 20, 2020 until the end of certain emergency situations determined by the government.

The ease of import of goods related to COVID-19 countermeasures in the form of exemption from import customs and excise, Value Added Tax (PPN) and/or Sales Tax on Luxury Goods (PPnBM), 22 Import Income Tax (PPh 22), and also import procedure (Tata Niaga Impor) for individuals/private companies that import for commercial activities.

Goods related to COVID-19 countermeasures are all items recommended by BNPB including as mentioned by Minister of Finance, Mrs. Sri Mulyani Indrawati in a press conference about APBN on March 18, 2020, namely medical devices, Personal Protective Equipment, masks, and hand sanitizer.

This import facility can be used by the State Government, Local Government (Pemda), Public Service Agency (BLU) in scheme A, foundations or non-profit institutions in scheme B, and individuals/private parties in scheme C. Moreover, for individuals/private parties that import for commercial activities in scheme D.

The provisions for each scheme as follows: Scheme A First, the Central Government, Local Government and BLU submit an application for an exception recommendation to the National Disaster Management Agency (BNPB) for imported goods subject to the provisions of the import trading system. Secondly, BNPB issues a letter of recommendation for the exclusion of import trading systems. Third, the Ministry/Institution (K/L) submits an application to the Regional Office of the DJBC of the

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Entry point in accordance with the Regulation of the Minister of Finance (PMK) 171 / PMK.04 / 2019. Fourth, the issuance of the Exemption SKMK. The fourth step is carried out before the goods arrive. After the goods arrive, or the fifth step, submit the Goods Import Notification document (PIB) by filling in the number and date of the SKMK, the number and the date of the recommendation of the BNPB in the case of being subjected to the provisions of the import trading system. Sixth, goods are removed from the port of entry.

Scheme B first, the foundation or non-profit organization submits a request for recommendation of exemption from import duty and / or excise as well as an exemption to BNPB for imported goods subject to the provisions of the import trading system. Second, BNPB issues a letter of recommendation for exemption from import duty and / or excise as well as an exception to the provisions of the import trade system. Third, the foundation or non-profit organization submits an application to the Director of Customs Facilities in accordance with PMK 70 / PMK.04 / 2012. The fourth to sixth steps, the same as scheme A. Scheme C It applies to individuals / private entities that import non-commercial purposes. How to get the import facilities by proving the gift certificate that the goods are grants to government agencies through BNPB or non-profit foundations / institutions. If goods are donated to BNPB as the government, BNPB will submit an application according to scheme A. If goods are donated to a non-profit foundation / institution, the non-profit foundation / institution submits an application in accordance with scheme B. Then released SKMK exemption. That is a process that must be fulfilled before the goods arrive. After the goods arrive, submit the Goods Import Notification document (PIB) by filling in the number and date of SKMK, number and date of recommendation of BNPB in the case of being subjected to the provisions of the import trading system with BNPB or non-profit foundation / institution as the name of the owner of the goods. Then, the goods can be removed from the port of entry. Another step that needs to be taken is to submit reports on the realization of imports and distribution to BNPB in the case of donations to BNPB. Scheme D For an individual / private parties that imports goods for commercial purposes, then the individual / private party cannot obtain fiscal facilities and must pay import customs, excise and / or import tax (PDRI). However, the provisions on the import procedure (Tata Niaga Impor) can be through BNPB.

Regulation of the Minister of Trade Number 28 of 2020

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The Ministry of Trade cooperates with the National Disaster Management Agency (BNPB) in maintaining the availability of medical devices and personal protective equipment in the midst of the outbreak of the Corona Virus (COVID-19). One of the steps taken by the Ministry of Trade is to accelerate the importation of medical devices and personal protection by issuing Regulation of the Minister of Trade Number 28 of 2020 concerning Eighth Amendment to Regulation of the Minister of Trade Number 87 M-DAG/PER/10/2015 regarding Provisions on Importation of Certain Products. With the issuance of this regulation, the Ministry of Trade provide relaxation of the importation of medical equipment and personal protective products. The relaxation of imports provided is an exception to the provisions of the Surveyor Report (LS) in the country of origin or the port of loading, and restrictions on the port of entry so that the import of these products does not require any licensing. This relaxation will be given until 30 June 2020. The shipment of certain products only needs to be proven by the Bill of Loading (B/L). The types of goods that are excluded from the LS provisions are:

1. Room air freshener preparations containing disinfectants or not; 2. Paper and tissue, impregnated or coated with deodorizers or cosmetics; 3. Antiseptic products containing soap or not; 4. Stocking for varicose sufferers, from synthetic fibers; 5. Medical protective clothing; 6. Clothing used for protection from chemicals or radiation); 7. Surgical clothing; 8. Examination gowns made from man-made fibers; 9. Surgical masks; 10. Other masks made of nonwoven material, other than surgical masks; 11. Infrared thermometer; and 12. Sanitary towels, sanitary tampons, baby diapers and similar articles of material other

than textile, paper or pulp for disposables. This regulation as a follow up to the issuance of Presidential Decree No. 9 of 2020. Through the Presidential Decree, Indonesian President Joko Widodo stipulates that the import of goods used for handling COVID-19 get special treatment in import regulations.

H. Financial Services On March 16, 2020, The Indonesian Financial Services Authority (OJK) issued Regulation of OJK Number 11/POJK.03/2020 concerning The National Economic Stimulus as a Countercyclical Policy Impact of The Spread of Coronavirus Disease 2019 (POJK Stimulus Impact COVID-19). This regulation stated that the development of the spread of coronavirus disease 2019 (COVID-19) has a direct or indirect impact on the performance and capacity of debtors including micro, small and medium business (MSME) debtors, thus potentially disrupting banking performance and financial system stability which can affect economic growth. Therefore, to encourage the optimization of the banking intermediary function, maintain financial system stability, and support

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economic growth, an economic stimulus policy is needed as a countercyclical impact of the spread of COVID-19. The main points in POJK Stimulus Impact COVID-19 include:

a. This POJK applies to BUK, BUS, UUS, BPR and BPRS. b. Banks can implement policies that support economic growth stimulus for debtors affected by

the spread of COVID-19, including MSME debtors, while still observing the precautionary principle.

c. Debtors affected by the spread of COVID-19, including MSME debtors, are debtors who have difficulty fulfilling obligations to the Bank because debtors or business debtors are directly or indirectly affected by the spread of COVID-19 in the economic sectors including tourism, transportation, hospitality, trade , processing, agriculture and mining.

d. The intended stimulus policy consists of:

Assessment of credit quality / financing / provision of other funds only based on the accuracy of payment of principal and / or interest for credit / financing / other fund provision with a ceiling of up to Rp. 10 billion; and

Improving the quality of credit / financing becomes smooth after being restructured during the validity period of POJK. The terms of this restructuring can be applied by the Bank regardless of the credit / financing ceiling limit or type of debtor.

e. The method of credit / financing restructuring is carried out as stipulated in OJK regulations regarding asset quality assessment, among others by:

decrease in interest rates;

extension of the term;

reduction of principal arrears;

reduction of interest arrears;

addition of credit / financing facilities; and / or

conversion of credit / financing to Temporary Equity Participation. f. Banks can provide credit / financing / provision of other new funds to debtors who have

received special treatment in accordance with this POJK by determining the quality of credit / financing / provision of other funds carried out separately from the quality of credit / financing / provision of other previous funds.

g. The Bank submits periodic reports on the application of this POJK for Supervisor monitoring since the position data at the end of April 2020.

h. POJK Stimulus Impact COVID-19 came into force since the enactment until March 31, 2021.

I. Public Companies The Indonesian Financial Services Authority (OJK) declared that the stock trading conditions in the Indonesia Stock Exchange (IDX) since the beginning of 2020 until today, March 9, 2020, continue to experience significant pressure, which is indicated from the decrease of IHSG by 18.46%. This happened in line with the slowdown and pressure of the global, regional and national economy as a result of the COVID-19 outbreak. Therefore, on March 9, 2020, the OJK issued Circular of OJK Number 3/SEOJK.04/2020 concerning Other Conditions as Significantly Fluctuating Market Conditions in the Implementation of Shares Buyback Issued by Public Companies.

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With the issuance of this circular, OJK allows all public companies to buy back shares in an effort to provide economic stimulus and reduce the impact of the market that fluctuates significantly by providing relaxation Share Buybacks procedures, as follows:

This circular stipulates that share buybacks can be performed by public companies without first holding a General Meeting Shareholders (GMS). This will significantly reduce the time required to conduct a buyback.

Further, this circular allows public companies to buy back shares that represent up to 20 percent of their paid-up capital, provided that there must be at least 7.5% of free float.

J. Investment

On March 23, 2020, in the midst of efforts to prevent the spread of Covid-19, the Head of the Investment Coordinating Board (BKPM), Mr. Bahlil Lahadalia launched the Investment Command & Guard Center (Pusat Kopi). The Pusat Kopi is intended as a command or monitoring center for decision making in support of the response of important events. Information that can be displayed in the Pusat Kopi, including social media & digital media sentiment, daily statistics on licensing requests through the Online Single Submission (OSS), Regiona Investment Potential (PIR), tracking a company's licensing status (end-to-end), licensing monitoring through OSS that is being processed by other ministries or agencies, as well as investment realization. The types of licenses monitored by BKPM include company registration, Business Registration Number (NIB), Business License (IU), and Commercial Operational License (IOK). Another interesting function of the Pusat Kopi is that it can display potential investment data by region on the BKPM Regional Investment Potential (PIR) website www.regionalinvestment.bkpm.go.id. This potential can be aligned with investment realization data in Indonesia on a regular basis that also exists in the Pusat Kopi. The data of the value of this investment realization can be monitored both nationally and provincial / district / city. Then, the data can also be processed up to investment data by sector, country of origin, and business location. In addition, the Pusat Kopi has several other facilities such as presentation rooms, millennial meeting rooms, and Network Operations Center (NOC) rooms. The Pusat Kopi can also be used to conduct video conferences with BKPM representatives abroad as well as the provincial investment agency (DPMPTSP) to coordinate without face to face.

K. Tax Holiday To support the achievement of development targets while remaining adaptive in facing economic risks after the dynamics of economic and political uncertainty in 2019, on February 17, 2020, the Indonesia’s Minister of Finance, Mrs. Sri Mulyani announced 18 (eighteen) sectors that could submit tax holidays directly to the Indonesia Investment Coordinating Board (BKPM). For information, the 18 (eighteen) sectors, namely the pioneering industry which includes:

1. the upstream base metal industry;

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2. oil and gas refining or refining industry; 3. petrochemical industry based on oil and gas and coal; 4. organic basic chemical industry sourced from agricultural, plantation or forestry products; 5. basic inorganic chemical industry; 6. the main pharmaceutical raw material industry; 7. industrial manufacturing of irradiated, electromedical or electrotherapy equipment; 8. machine manufacturing industry and main engine components; 9. the industry makes major components of electronic / telematics equipment such as

semoconductor wafers, backlights for Liquid Crystal Display (LCD), electrical drivers or displays;

10. industrial robotics manufacturing components supporting manufacturing machinery manufacturing;

11. industrial manufacturing of main components of electric power generation machines; 12. motor vehicle manufacturing industry and major components of motor vehicles; 13. ship's main component manufacturing industry; 14. the main components of the railroad manufacturing industry; 15. the industry of making the main components of an aircraft, and aerospace support activities; 16. processing industries based on agricultural, plantation or forestry producing pulp; 17. economic infrastructure; and 18. digital economy includes data processing, hosting, and activities related to it.

*It should be noted that this is still in the form of announcement issued by the Indonesia’s Minister of Finance, so far there has been no form of regulation issued.

L. Court Trial On March 23, 2020, the Indonesian Supreme Court (MA) issued Circular of MA Number 1 of 2020 on Guidelines for Implementation of Duties During the Prevention of Coronavirus Disease 2019 (COVID-19) in the Supreme Court and the Lower Courts. This circular letter addresses the court trial in the Supreme Court and the Lower Courts, as follows:

Trials of criminal, military and jinayat cases continue to be carried out specifically against cases where the accused are being detained and their detention cannot be extended further during the period of preventing the spread of COVID-19 within the Supreme Court and the lower Courts.

The trial of criminal, military and jinayat cases against the Defendant who legally detained them still has a reasonable reason to be extended, postponed until the end of the period of preventing the spread of COVID-19 within the Supreme Court and the lower Courts. Postponement of the trial can be carried out with a Sole Judge.

In cases which are limited to the period of examination by statutory provisions, the Judge may postpone the examination even though the time limit for examination is limited by statutory provisions by order to the Substitute Registrar to record in the Minutes of the Session that there are exceptional circumstances based on this circular letter.

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In the event that there are cases which must still be heard, then: a. Delays in court proceedings and limitations on visitors to a hearing are the authority of

the panel of judges to determine. b. Judges can limit the number and safe distance between the visitors of hearing (social

distancing). c. The Panel of Judges may order the detection of body temperature and prohibit physical

contact such as shaking hands for parties who will be present or presented at the hearing.

d. The Panel of Judges and parties in the hearing may use protective equipment in the form of masks and medical gloves in accordance with the conditions and situation of the trial.

The justice seekers are encouraged to use an e-litigation application for trial cases of civil law, Islamic civil law and state administrative law.

M. Excise

To provide facilities for social purposes and the manufacture of hand sanitizers, surface sanitizers and antiseptics, on March 17, 20202, the Indonesian Government through the Directorate General of Customs and Excise issued Circular of Director General of Customs and Excise Number SE-04/BC/2020 on Exemption of Ethyl Alcohol Excise in order to Follow-Up Prevention of Coronavirus Disease 2019 (COVID-19).

The main provisions as follows:

The object of this circular letter is Ethyl Alcohol

The subject of this circular letter:

a. Ethyl Alcohol Manufacturing companies b. Ethyl Alcohol Storage companies

The companies mention above may be given an excise exemption for social purposes in the context of the precaution and prevention of COVID-19. They can submit an excise exemption request for social purposes in the context of precaution and prevention of COVID-19 based on orders from government agencies and non-governmental organizations related to COVID-19 countermeasures.

Requirements and procedures:

a. Application letter and Statement Letter by the Government Officials of government agencies stating that ethyl alcohol is only used for the precaution and prevention of COVID-19 in the event that orders are made by the government agencies; and

b. Application Letter and Recommendation Letter from government agencies that dealing with disaster management in the case of orders are made by non-governmental organizations.

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Application letter is submitted to the Minister of Finance c.q. Director General of Customs and Excise through the Head of Customs and Excise Office using PMCK-3 documents.

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