SSEK legal alert © 1 October 2016
Minister of Agriculture (“MOA”) Regulation No. 34/Permentan/PK.210/7/2016
dated July 15, 2016 regarding Import of Carcasses, Meat, Edible Offal, and/or Dairy
Products into the Territory of the Republic of Indonesia. This Regulation covers the
requirements and procedures for the importation and monitoring of the above animal
products. The stated aim of this Regulation is to protect the public, animals and
environmental health by ensuring products are free of infectious diseases, chemical
hazards and the like, so the above products are safe for human consumption and halal.
This Regulation came into force on July 19, 2016.
MOA Regulation No. 36/Permentan/LB.070/8/2016 dated August 4, 2016 regarding
Safety Assessment of Genetically Engineered Food Products. This Regulation requires
that Genetically Engineered Food Products (“GEFP”) (i.e., plants, microorganisms, fish
and other animals, and dairy products) obtain a GEPF safety certificate in order to be
distributed. To obtain a certificate, applicants must submit an application to the MOA,
with the requirements and procedures set out in this Regulation. This Regulation came
into force on August 10, 2016.
MOA Regulation No. 37/Permentan/HK.140/8/2016 dated August 11, 2016
regarding Horticulture Materials Not Produced in the Country. This Regulation stipulates
the types of horticulture materials that may receive a facility and/or incentive including
simplified licensing procedures, easier access to financing and tax relief. To receive a
facility and/or incentive, a business player must submit an application to the MOA. This
Regulation came into force on the date of its enactment.
Financial Services Authority (“OJK”) Circular Letter No. 40/SEOJK.03/2016 dated
September 26, 2016 regarding Governance in Providing Remuneration at Commercial
Banks. With the issuance of this Regulation, Chapter IX on Transparency in the
Implementation of Good Corporate Governance – points D, E and F of Bank Indonesia
(“BI”) Circular Letter No. 15/15/DPNP dated April 29, 2013 regarding Good Corporate
Governance for Commercial Banks no longer applies to foreign banks and commercial
banks classified as BUKU 3 and BUKU 4 based on their business activities. BUKU 1
and BUKU 2 banks will no longer be subject to the same beginning January 1, 2017.
Pursuant to this Circular Letter, banks must have a written policy on remuneration for
members of the Board of Directors and Board of Commissioners and for bank officers,
whether for permanent or variable remuneration. This Circular Letter came into force on
the date of its enactment.
OJK Circular Letter No. 41/SEOJK.03/2016 dated September 27, 2016 regarding
Procedures for the Issuance of Certificate of Deposit. As the title suggests, this
Circular Letter governs the procedures and requirements for conventional commercial
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SSEK legal alert © 2 October 2016
banks to issue Certificates of Deposit, scripless or not. It also governs, inter alia, the
implementation of anti-money laundering and terrorism funding prevention programs,
risk management, consumer protection and the reporting of certificate of deposit
transactions. This Circular Letter came into force on the date of its enactment.
OJK Circular Letter No. 42/SEOJK.03/2016 dated September 28, 2016 regarding
Transparency and Publications of Conventional Commercial Banks. The Publication
Reports covered under this Circular Letter are monthly, quarterly and annual Publication
Reports and other reports including the Credit Basic Interest Rate Report (“SBDK
Report”) and Material Information and/or Facts Report. This Circular Letter provides
guidelines on the preparation of each report. It revokes OJK Circular Letter No.11/
SEOJK.03/2015 regarding the same and came into force on the date of its enactment.
Decision of Constitutional Court No. 114/PUU-XIII/2015 dated October 20, 2016
regarding the Judicial Review of Law No. 13 of 2003 on Employment (“Employment
Law”) and Law No. 2 of 2004 on Industrial Relations Dispute Resolution (“Industrial
Relations Dispute Law”). The Constitutional Court rendered a decision that the section
of Article 82 of the Industrial Relations Dispute Law that refers to Article 159 of the
Employment Law is unconstitutional and is not legally binding. Article 82 stipulates
that an employee may only submit a claim against his or her termination for gross fault
(articulated in Article 158(1) of the Employment Law) within one year as of the termination.
The Constitutional Court essentially effectuated Decision of the Supreme Court No. 012/
PUU-I/2003 dated October 29, 2004, which affirmed that Article 159 of the Employment
Law is not legally binding.
Decision of Constitutional Court No. 72/PUU-XIII/2015 dated September 29, 2016
regarding Judicial Review of the Employment Law. The Constitutional Court found that
the phrase “but not mandated to pay the minimum wage during the suspension” in the
elucidation of Article 90(2) of the Employment Law to be unconstitutional and to not be
legally binding. Article 90(2) of the Employment Law stipulates that an employer who
is unable to pay employees the minimum wage may suspend the employment of the
employees. With this decision, employers must now pay suspended employees the
minimum wage applicable during the suspension after the period of suspension is over.
Minister of Energy and Mineral Resources (“MEMR”) Regulation No. 30 of 2016
dated October 25, 2016 regarding Amendment of MEMR Regulation No. 15 of 2015
regarding Management of Oil and Gas Working Areas for which the Production Sharing
Contract (“PSC”) Will Expire. This amendment clarifies that in the event PT Pertamina
(Persero) or a new contractor is appointed to take over an oil and gas working area upon
the expiration of the relevant PSC, it may enter into an agreement with the current PSC
contractor to fund the necessary operational activities carried out by the current PSC
contractor prior to the effective date of the succeeding PSC. The expenses so incurred,
as well as any expenses related to preparations for the transfer of operations, will be
subject to cost recovery pursuant to the new PSC. This Regulation came into force on
the date of its promulgation.
SSEK legal alert © 3 October 2016
Minister of Finance (“MOF”) Regulation No. 135/PMK.05/2016 dated September
13, 2016 regarding Procedures for the Provision of Funds and Refunds to Foreign
Lenders and/or Grantors. This Regulation stipulates (i) the procedures for the refund of
ineligible expenditures for projects financed by Foreign Loans and/or Grants, in which the
implementation is not in accordance with the Foreign Loans and/or Grants agreement;
and (ii) the procedures for the administrative settlement of Foreign Loans and/or Grants
that have been withdrawn, sanctions for project completion delays, and the handling of
any remaining funds in a special account after the closing of the account. This Regulation
came into force on September 14, 2016.
MOF Regulation No. 136/PMK.05/2016 dated September 13, 2016 regarding
the Management of Assets by Public Service Agencies. A Public Service Agency is a
Government institution that administers assets related to the procurement of goods and/
or services that are sold without prioritizing profit for the public good. The management
of assets can be done through an Operational Cooperation or Human Resources/
Management Cooperation with a regional government, state/regional-owned enterprise,
Public Service Agency, private company, foundation, cooperative and/or individual. This
Regulation came into force on September 14, 2016.
MOF Regulation No. 141/PMK.03/2016 dated September 23, 2016 regarding the
Amendment of MOF Regulation No. 118/PMK.03/2016 regarding the Implementation
of Law No. 11 of 2016 regarding Tax Amnesty. The amendments introduced by this
Regulation include (i) removing digital submission for certain taxpayers, (ii) adding a
requirement for taxpayers in the form of permanent establishment, (iii) allowing taxpayers
to revoke their asset declaration letter under certain conditions, (iv) amending the
requirements for obtaining tax facilities, and (v) the procedure for submitting a declaration
letter in the event of force majeure. This Regulation came into force on the date of its
MOF Regulation No. 142/PMK.010/2016 dated September 23, 2016 regarding the
Amendment of MOF Regulation No. 127/PMK.010/2016 regarding Tax Amnesty Pursuant
to Law No. 11 of 2016 regarding Tax Amnesty for Taxpayers Owning Indirect Assets
through a Special Purpose Vehicle. This amendment provides the option of whether an
offshore company in the category of a special purpose vehicle shall be dissolved after
the tax amnesty implementation. It also amends the administrative requirements for the
income tax exemption on the transfer of offshore companies in the category of special
purpose vehicle. This Regulation came into force on the date of its enactment.
Bank Indonesia (“BI”) Regulation No. 18/20/PBI/2016 dated October 3, 2016
regarding Non-Banking Foreign Currency Exchange Business Activity. This Regulation
repeals BI Regulation No. 16/15/PBI/2014 governing the same matter (“BI Reg 16/15”),
though the implementing regulations of BI Reg 16/15 remain valid insofar as they do
not contravene the provisions under this new regulation. This Regulation applies to the
business activities of money changers (Non-Banking Foreign Currency Exchange) and
governs, inter alia, permitted and prohibited activities for money changers, the required
license for money changers and the procedure to obtain the same, the requirements for
shareholders, directors and commissioners of money changer companies, the opening
of branch offices and outlets of money changer companies, the change of name and
capitalization of money changer companies, and the relevant sanctions for violations of
the provisions under this Regulation. Interestingly, under this Regulation, BI may conduct
interviews to confirm shareholder, director and commissioner candidates at money
changer companies. Money changer licenses issued before the entry into force of this
Regulation shall remain valid for a maximum of five years or until October 7, 2021. Several
provisions under this Regulation such as on the procedure to obtain a money changer
license and the requirements for directors, commissioners and shareholders of money
changer companies will enter into force six months from October 7, 2016. The remaining
provisions entered into force on October 7, 2016.
SSEK legal alert © 4 October 2016
BI Circular Letter No. 18/22/DKSP Year 2016 dated September 27, 2016
regarding Digital Finance Service Administration. This Circular Letter was issued as an
implementing regulation for BI Regulation No. 11/12/PBI/2009 regarding Electronic
Money as lastly amended by BI Regulation No. 18/17/PBI/2016. It governs, inter alia,
the requirements for a Digital Financial Services Administrator (Penyelenggara Layanan
Keuangan Digital or “DFSA”), the process to obtain BI approval to be a DFSA, Digital
Financial Services or “DFS” products, limitations on DFS, cooperation between DFSA
and DFS Agents, required periodical reports to be submitted by DFSA and administrative
sanctions for the violation of the provisions under this Circular Letter. This Circular Letter
came into force on the date of its enactment.
BI Circular Letter No. 18/21/DKSP Year 2016 dated September 27, 2016 regarding
the Amendment of BI Circular Letter No. 16/11/DKSP dated July 22, 2014 regarding
Electronic Money. This Circular Letter includes amendments to provisions on the
processing of e-money license applications, user testing by e-money administrators
and periodical reporting to BI. The e-money limit is also changed to IDR 1 million for
unregistered e-money and IDR 10 million for registered e-money. This Circular Letter
came into force on the date of its enactment.
Minister of Law and Human Rights (“MOLHR”) Regulation No. 24 dated July 19,
2016 regarding Technical Procedures for the Submission of Applications for and the
Granting of Visit and Limited-Stay Visas. This Regulation implements Article 108 of the
Implementing Regulation of Law No. 6 of 2011 regarding Immigration. It applies to every
foreigner who wishes to enter Indonesia, as well as their sponsors. This Regulation came
into force 90 days as of the date of its enactment.
MOLHR Regulation No. 26 dated July 19, 2016 regarding the Asia-Pacific Economic-
Cooperation Business Travel Card. This Regulation revokes MOLHR Regulation No.
M.03.IZ.03.10 Tahun 2003. It introduces several changes, including a reduction in the
stay period for the holder of such cards and narrowing those eligible to obtain a card.
This Regulation came into force on the date of its enactment.
Ministry of Industry (“MOI”) Regulation No. 68/M-IND/PER/9/2016 dated
September 1, 2016 regarding Provisions for the Granting of Recommendations for
the Appointment of Registered Importers of Cellular Phones, Handheld Computers
and Tablet Computers. Under this Regulation, applicants to the Director General of
Metal, Machinery, Transportation and Electronics Industries for a recommendation
to be appointed a registered importer of the aforementioned products are divided into
three categories. Producers are Category A, importers or producers that cooperate
with domestic producers are Category B, and importers of products with specific
specifications and for specific purposes or importers of products for after-sales services
are Category C. The required documents for each category vary. The application as
well as the issuance of a recommendation is done online through the National Industrial
Information System (Sistem Informasi Industri Nasional or “SIINas”) website at http://siinas.
kemenperin.go.id/. A recommendation is only valid for one application. This Regulation
came into force on the date of its promulgation.
SSEK legal alert © 5 October 2016
MOI Regulation No. 70/M-IND/PER/9/2016 dated September 22, 2016 regarding
the Revocation of MOI Regulation No. 34/M-IND/PER/3/2015 regarding the Four-Wheel
or More Motor Vehicle Industry and Motorcycle Industry as amended several times,
lastly by MOI Regulation No. 22/M-IND/PER/3/2016 (“MOI Reg. 34/2015, as amended”).
In addition to revoking MOI Reg. 34/2015, as amended, this Regulation reinstates MOI
Regulation No. 59/M-IND/PER/5/2010 regarding the Motor Vehicle Industry, which had
been revoked by MOI Reg. 34/2015. This Regulation came into force on the date of its
MOLHR Regulation No. 29 dated August 16, 2016 regarding Requirements and
Procedures for the Appointment and Termination of Sworn Translators. The stated aim
of this Regulation is to improve the administration and legal certainty of Indonesian sworn
translators outside the territory of the Republic of Indonesia. This Regulation revokes any
prior decrees concerning the terms and registration of sworn translators. It came into
force on the date of its enactment.
Minister of Land and Spatial Planning/Head of National Land Agency Regulation
No. 29 of 2016 dated September 26, 2016 regarding Procedures for the Granting,
Relinquishment or Transfer of the Right of Ownership over Houses or Residences by
Foreigners Domiciled in Indonesia. This Regulation contains specific provisions related
to the ownership of land by foreigners. A foreigner may only own a house or residence
with Right to Use (Hak Pakai) title. It further states that a foreigner and his or her family
may only own one plot of land, with a maximum area if 2,000 square meters. In certain
conditions that have a “extremely positive consequence for the economy,” a foreigner
may be allowed to own more than 2,000 square meters of land, but only after obtaining
approval from the Minister of Land and Spatial Planning/Head of National Land Agency.
This Regulation revokes Minister of Land and Spatial Planning Regulation No. 13 of 2016
regarding the same. It came into effect on the date of its stipulation.
tax, customs & excise
MOF Regulation No. 134/PMK.010/2016 dated September 14, 2016 regarding the
Fifth Amendment of MOF Regulation No. 213/PMK.011/2011 regarding Stipulation of the
Classification System of Goods and the Imposition of Import Duty for Imported Goods.
This Regulation amends the import duty for imported goods included in the APEC List of
Environmental Goods, capping it at a maximum of 5%. The imposition of such duty only
applies to imported goods that have already obtained a number and registration date
from the customs office for their import duty notification. This Regulation came into force
on September 24, 2016.
MOF Regulation No. 138/PMK.06/2016 dated September 19, 2016 regarding the
Amendment of MOF Regulation No. 71/PMK.06/2015 regarding Management by the
Minister of Finance of Assets Formerly Managed by PT Perusahaan Pengelola Aset
(Persero). This Regulation amends several provisions, including those on credit asset
management, the restructuring of credit assets, sales of credit assets, and property
asset management. It came into force on September 20, 2016.
SSEK legal alert © 6 October 2016
MOF Regulation No. 140/PMK.010/2016 dated September 20, 2016 regarding the
Stipulation of Export Goods Subject to Export Duty and the Export Duty Tariff. Goods
subject to export duty are (i) leather and woods; (ii) cacao beans; (iii) palm oil, crude palm
oil and its derivative products; and (iv) processed mineral products. The export duty
tariffs for the different goods are stipulated in detail in this Regulation, which came into
force on September 30, 2016.
MOF Regulation No. 145/PMK.010/2016 dated September 27, 2016 regarding
the Amendment of MOF Regulation No. 243/PMK.04/2011 regarding the Granting
of Premiums. This Regulation amends the conditions for the granting of premiums –
rewards to parties for uncovering and reporting customs and/or excise violations – from
administrative sanctions and non-auctioned goods. It also amends the procedures and
requirements to obtain a premium, as well as attachment I-IV (i.e., premium request
form, statement letter form, minute of premium request investigation form) as previously
contained in MOF Regulation No. 243/PMK.04/2011. This Regulation came into force on
October 28, 2016
MOF Regulation No. 147/PMK.010/2016 dated September 30, 2016 regarding the
Third Amendment of MOF Regulation No. 179/PMK.011/2012 regarding Tobacco Excise
Tariff. This Regulation amends provisions regarding (i) the classification of tobacco
industry businesses and (ii) retail price limits and the excise tariff per stick or gram for
tobacco produced domestically. This Regulation came into force on October 4, 2016.
MOF Regulation No. 148/PMK.010/2016 dated September 30, 2016 regarding
Service Fees for the Batam Public Service Agency in the Batam Free Port and Free Trade
Zone. The fees stipulated herein are for services provided by the Batam Public Service
Agency (“BP Batam”) in the Batam Free Port and Free Trade Zone. The fees are imposed
for services related to (i) the allocation and administration of area; (ii) seaport; (iii) hospital;
(iv) water and waste management; (v) data and system information management; (vi)
airport; (vii) building plans, asset usage and facilities and infrastructure; and (viii) freight
traffic. These eight services are further subdivided into more specific services and fees.
Agreements made between BP Batam and service users before the issuance of this
Regulation shall remain applicable until the end of their terms. This Regulation came into
force on October 18, 2016.
Director General of Customs and Excise (“DGCE”) Regulation No. PER-20/
BC/2016 dated June 13, 2016 regarding the Third Amendment of DGCE Regulation
No. P-22/BC/2009 regarding Import Duty Notification. This Regulation amends several
attachments contained in DGCE Regulation No. P-22/BC/2009, namely Attachments I,
IV, VI, VII, VIII and IX. However, the use of such attachments will still be valid to the extent
that an import duty notification obtained a number and was registered prior to July 31,
2016. This Regulation came into force 30 days as of its enactment.
Minister of Trade Regulation No. 64/M-DAG/PER/9/2016 dated September 15,
2016 regarding the Entry and Exit of Goods to and from Joint Logistics Center. This
Regulation serves as the legal framework for the entry and exit of goods to and from the
Government’s newly developed Joint Logistics Center (Pusat Logistik Berikat or “PLB”).
PLB serves as a place to stockpile all forms of goods outside the customs area. While
in the PLB, the goods are deemed to still be located in their State of origin. A surveyor
will verify and perform a technical review of those goods in the PLB that will enter the
Indonesian customs area. This Regulation applies retroactively and came into effect on
September 16, 2016.
SSEK legal alert © 7 October 2016
Minister of Transportation Regulation No. PM 123 of 2016 dated October 13, 2016
regarding the Amendment of Minister of Transportation Regulation No. 171 of 2015
regarding Service Procedure for Foreign Yachts in Indonesian Waters. This Regulation
amends the list of ports where foreign yachts can receive ease of services provided by
port operators. This Regulation came into effect on the date of its promulgation.