SSEK legal alert © 1 September 2016
agrarian, land & spatial layout
Minister of Agrarian Affairs and Spatial Planning/Head of National Land Affairs Agency Regulation No. 28 of 2016 dated August 30, 2016 regarding Acceleration of National Agrarian Program through the Systematic Registration of Land. The stated aim
of this Regulation, as the title suggests, is to accelerate the National Agrarian Program
(abbreviated as “PRONA” in the regulation and essentially a state program to register
and record all land within the territory of Indonesia) through systematic land registration.
This Regulation envisions the land office actively collecting land data for certification
purposes. It came into force on the date of its issuance.
Minister of Agrarian Affairs and Spatial Planning/Head of National Land Affairs
Agency Regulation No. 25 of 2016 dated August 9, 2016 regarding Requirements
and Procedures for the Imposition of Non-Tax State Income on Certain Parties. Under
this Regulation, certain classes of people can receive special treatment in terms of
non-tax state income (“PNBP”) applicable in the Ministry of Agrarian Affairs and Spatial
Planning. For example, military veterans, active-duty soldiers and retired state officials
may receive an IDR 0.00 tariff for certain services such as measurement of land parcels,
examination of land and first-time registration of land. This Regulation came into force 30
days after the date of its issuance.
Bank Indonesia (“BI”) Regulation No. 18/14/PBI/2016 dated August 18, 2016
regarding Fourth Amendment of BI Regulation No. 15/15/PBI/2013 regarding Statutory
Minimum Reserve of Conventional Banks in Rupiah and Foreign Currencies. This
Regulation amends how the statutory minimum reserve is calculated, including a revised
minimum loan-to-funding ratio (“LFR”) of 80%, an LFR ceiling cap of 92% and an Incentive
Capital Adequacy Ratio of 14%. This Regulation came into force on August 24, 2016.
BI Regulation No. 18/16/PBI/2016 dated August 26, 2016 regarding Loan-to-Value
Ratio for Property Loans, Financing-to-Value Ratio for Property Financing and Advanced
Payment for Motorized Vehicle Credit or Financing. This Regulation repeals BI Regulation
No. 17/10/PBI/2015 regarding the same. As the title suggests, this Regulation stipulates
the ratios Indonesian banks must comply with when extending property credit/financing
and motorized vehicle financing/credit. BI has loosened the Financing-to-Value Ratio and
Loan-to-Value Ratio in response to increased domestic demand. This Regulation came
into force on August 29, 2016.
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SSEK legal alert © 2 September 2016
Financial Services Authority (“OJK”) Circular Letter No. 35/SEOJK.04/2016 of
2016 dated September 2, 2016 regarding Mandatory Tender Offer as a Result of the
Acquisition of a Public Company for the Purpose of Supporting the Tax Amnesty Law.
Under this Circular Letter, the mandatory tender offer and disclosure of information
requirements as set forth in OJK Regulation IX.H.1 are waived for taxpayers who are
disclosed as majority shareholders in public companies by the disclosure of their assets
under the tax amnesty program. To take advantage of these exemptions, taxpayers must
submit the following to the OJK: (i) a copy of their Tax Amnesty Statement Letter and
information on their shareholding in any public companies (using the form provided in
this Circular Letter) at the latest 10 business days from the issuance of the Tax Amnesty
Statement Letter, and (ii) a statement regarding the transfer of assets related to the
acquisition to a securities account at the custodian bank (in the name of the taxpayer).
Similarly, public companies that discover a new majority shareholder as a result of the
disclosure of assets under the tax amnesty program are exempted from the mandatory
disclosure of information requirements under OJK Regulation No. 31/POJK.04/2015
regarding Disclosure of Material Information or Facts by Issuers or Public Companies.
This Regulation came into force on the date of its promulgation and will be effective until
20 business days after March 31, 2017.
Governor of DKI Jakarta Regulation No. 164 Year 2016 dated August 24, 2016
regarding Traffic Control through an Even-and–Odd Registration Number System.
This Regulation stipulates that only cars with a license plate number ending in an even
number can enter certain roads in Jakarta on even dates, and cars with a license plate
number ending in an odd number on odd dates. The even-odd system applies during
weekdays between the hours of 7 a.m. and 10 a.m. and from 4 p.m. to 8 p. m. This
Regulation came into force on the date of its enactment.
Governor of DKI Jakarta Regulation No. 160 Year 2016 dated August 19, 2016
regarding Free TransJakarta and Bus Service for Residents of DKI Jakarta. This
Regulation provides that several categories of residents including civil servants, people
with disabilities and the elderly can use the TransJakarta service for free. The Regulation
also stipulates that DKI Jakarta will provide a free bus service for all DKI Jakarta
residents. This Regulation came into force on the date of its enactment.
Minister of Finance (“MOF”) Regulation No. 130/PMK.08/2016 dated August 24,
2016 regarding Procedures for Granting Government Security for the Acceleration of
Electricity Infrastructure Development. This Regulation sets out the procedures by which
the government grants Loan Security and Business Feasibility Security. Loan Security
is granted to creditors through a self-management scheme that refers to the loan
agreement between PT PLN and the creditors. Business Feasibility Security is granted to
Business Entity Electricity Providers (“BUPTL”) through a cooperation scheme that refers
to the financial obligation of PT PLN to the BUPTL as contained in the Electricity Sale and
Purchase Agreement between the two parties. This Regulation came into force on the
date of its enactment.
SSEK legal alert © 3 September 2016
MOF Regulation No. 129/PMK.08/2016 dated August 23, 2016 regarding the
Amendment of MOF Regulation No. 265/PMK.08/2015 regarding Facilities for the
Preparation and Implementation of Public-Private Partnership Transactions for the
Construction of Infrastructure. With the stated aim of improving the efficiency of project
funding and speeding up infrastructure construction through public-private partnership
schemes, this Regulation revises provisions related to the work of the Ministry’s Director
General of Financing and Risk Administration and cooperation with international
institutions in the provision of such facilities. This Regulation came into force on August
Ministry of Industry (“MOI”) Regulation No. 64/M-IND/PER/7/2016 Tahun 2016
dated July 27, 2016 regarding the Number of Employees and Investment Value for
Business Classifications. This Regulation categorizes businesses as small-scale,
medium-scale or large-scale based on the number of employees and investment value.
Businesses that employ a maximum of 19 people are categorized as small scale if they
have less than IDR 1 billion of investment; they are classified as medium scale if the
investment value is IDR 1 billion or more. Businesses that employ 20 people or more are
categorized as medium scale if they have up to IDR 15 billion of investment, and as large
scale if they have more than IDR 15 billion of investment. This Regulation came into force
on the date of its promulgation.
MOI Regulation No. 65/M-IND/PER/7/2016 Tahun 2016 dated July 27, 2016
regarding Provisions and Procedures for Calculating Domestic Component Levels in
Cellular Phones, Handheld Computers and Tablet Computers. The assessment of these
products for domestic component levels covers three main areas: manufacturing (70%
of the assessment), development (20%) and application (10%). In manufacturing, the
assessment of domestic component levels takes into account materials, manpower and
production machinery. In development, the assessment considers licensing, firmware,
industrial design and integrated circuit design. And for application it considers, inter alia,
specification requirements, programming, application testing and packaging, intellectual
property, manpower and certificate of competence. This Regulation stipulates in detail
the method for assessing domestic component levels. It came into force on the date of
Law No. 13 of 2016 dated August 26, 2016 regarding Patents. This Law revokes the
previous Patent Law (Law No. 14 of 2001). The new Patent Law introduces an electronic
patent application system. Other changes include the introduction of fiduciary security on
patent rights and the transfer of patents through wakaf, a form of grant under Islamic law
This Law came into force on the date of its enactment.
SSEK legal alert © 4 September 2016
tax, customs & excise
MOF Regulation No. 127/PMK.010/2016 dated August 23, 2016 regarding Tax
Amnesty Pursuant to Law No. 11 of 2016 regarding Tax Amnesty for Taxpayers that
Indirectly Own Property through a Special Purpose Vehicle. This Regulation requires
taxpayers that own property through a special purpose vehicle to disclose such property
in their Statement Letter in the framework of the tax amnesty program. This Regulation
came into force on the date of its enactment.
MOF Regulation No. 133/PMK.04/2016 dated September 2, 2016 regarding the
Amendment of MOF Regulation No. 23/PMK.04/2015 regarding Customs Zones and
Temporary Warehouses. This Regulation adds a provision that states border zone
locations with a border crossing post or checkpoint shall be stipulated as customs
zones. This Regulation came into force on the date of its enactment.
Directorate General of Customs and Excise (“DGCE”) Regulation No. PER-28/
BC/2016 dated July 1, 2016 regarding the Amendment of DGCE Regulation No. P-23/
BC/2009 regarding Customs Notification for the Entry of Goods from Other Place in
Customs Area into a Place Under the Supervision of the Director General of Customs
and Excise. This Regulation amends the type of customs notifications, which consist of
(i) customs notification of entry of goods from other place in customs area into Bonded
Storage Area, and (ii) customs notification of release of goods from other place in
customs area from Bonded Storage Area to other place in customs area. It also amends
the customs notification form as attached in this Regulation, which came into force on
August 1, 2016.
DGCE Regulation No. PER-34/BC/2016 dated August 5, 2016 regarding the Third
Amendment of DGCE Regulation No. P-41/BC/2008 regarding Export Customs
Notification. The notification of Export of Goods may be delivered manually or
electronically. This Regulation sets out the provisions and format for manual notification.
There will be a trial period for the electronic notification of Export of Goods between
October 1 and October 28, 2016. During this trial period, anyone submitting a notification
may use the Export of Goods Notification form as stipulated in the previous regulation,
namely DCGE PER-18/BC/2012, or the form as contained in this new Regulation. This
Regulation comes into force on October 29, 2016.
Minister of Trade Regulation No. 53/M-DAG/PER/7/2016 dated August 12, 2016
regarding Licensing of Domestically Produced Measurement or Weighing Tools and
Equipment. As specified in this Regulation, a domestic producer of weighing tools and
equipment (abbreviated as “UTTP” in the Regulation) must obtain a license from the
Ministry of Trade. This license, an Izin Tanda Pabrik, is issued for each type of weighing
tool and equipment that the producer makes. This Regulation further sets out the
administrative requirements and procedure to obtain an Izin Tanda Pabrik. It comes into
force on October 2, 2016.
Minister of Trade Regulation No. 59/M-DAG/PER/8/2016 dated August 16, 2016
regarding Provisions on the Export and Import of Livestock Products. This Regulation
contains conditions, limitations, mechanisms and procedures for the export or import
of livestock products. For example, certain types of livestock products may only be
exported or imported after obtaining an Export Approval or Import Approval from
the Ministry of Trade. This Regulation further sets out the requirements to obtain such
approvals. It came into force on the date of its issuance.
SSEK legal alert © 5 September 2016
Ministry of Transportation Regulation No. PM 99 of 2016 dated August 26, 2016
regarding Internet-Based Licensing in the Field of Air Navigation and the Publication of
Aeronautical Information in Indonesia. This Regulation introduces online licensing for
various services and information in the air navigation and aeronautical fields as detailed
in the Regulation. The Directorate General of Civil Aviation is expected to further regulate
licensing and publication in the air navigation and aeronautical fields. This Regulation
came into force the on the date of its promulgation.
Ministry of Transportation Regulation No. PM 100 of 2016 dated August 31, 2016
regarding the Procedures and Requirements for Granting a Foreign Vessel Utilization
Permit for Activities Other than Carrying Passengers and/or Cargo for Domestic Sea
Transportation. This Regulation applies to the utilization of foreign vessels for oil and
gas surveys, drilling, offshore construction, offshore operational support, dredging
and salvage, and underwater works. This Regulation governs the procedures and
requirements for the utilization of foreign vessels in the above activities. It repeals Minister
of Transportation Regulation No. PM 10 of 2014 as amended from time to time regarding
the same and came into force on September 6, 2016.