No

Regulation

Summary

1

Draft Bill on Job Creation

Enforcement date: N/A

• The Draft Bill will be amending 28 regulations in various sectors, including: 1) Law No. 13 of 2003 on Employment; 2) Law No. 40 of 2004 on Limited Liability Companies; 3) Law No. 3 of 2014 on Industry; 4) Law No. 7of 2014 on Trade; 5) Law No. 6 of 2011 Immigration; and so forth.
• The Draft Bill consists of 553 articles which are divided into the following eight main categories: 1) Simplification of business licensing; 2) Investment opportunities; 3) Employment; 4) Ease of doing business; 5) Development and protection of Micro- and Small -Scale Enterprises; 6) Economic zones; 7) Support for research and innovation; and 8) Land acquisition.
• The regulation draft is currently being discussed at the Indonesia House of Representatives/Dewan Perwakilan Rakyat (“DPR”). 

2

Minister of Health Regulation No. 3 of 2020 on the Classification and Licensing of Hospitals

Enforcement date:

16 January 2020

• Hospitals are required to provide at least the following services: (a) Medical services and medical supporting services; (b) Nursery and midwifery services; and (c) Non-medical services (including pharmaceutical services, laundry, etc.)
• The regulation maintains the classification of general hospitals to be based on the total number of beds provided by the hospital.
• The regulation allows any accredited hospitals which have secured operational licenses to upgrade its respective class to any class above the existing class (example: from Class C to Class A) by complying with the bed number requirement and amending its operational license.
• Privately owned hospitals are allowed to be established through foreign investment with the maximum foreign shareholding of 67% (up to 70% if the foreign investor is from ASEAN countries). However, any such hospitals must provide at least 200 beds.

3

Financial Services Authority /Otoritas Jasa Keuangan (“OJK”) Circular Letter No. S-92/D.04/2020 on the Relaxation upon the Submission of Report and the Implementation of General Meeting of Shareholders Obligations

Enforcement date:

18 March 2020

The regulation extends the various deadlines in light of the national emergency status on Covid-19 outbreak until 29 May 2020 which are the following:

1. 1. Annual reports of issuers and public companies extended to 30 June 2020 (instead of 30 April 2020);
   2. Report on evaluation result of audit committee for the implementation of audit services upon annual historical financial information of issuers and public companies (as required under Regulation of the OJK No. 13/POJK.03/2017 on Utilization of the Services of Public Accountant and Public Accounting Firm in Financial Services Activities) extended to 31 August 2020 (instead of 31 June 2020);
   3. Annual financial statement of 15 capital markets players (such as issuers and public companies, stock exchange, clearing and guarantee institution, and so forth) extended to 31 May 2020 (instead of 31 March 2020);  and
   4. Annual General Meeting of Shareholders (AGMS) for the issuers and public companies extended to 31 August 2020 (instead of 30 June 2020). Further to avoid the physical meeting during the Covid-19, OJK also enables electronic proxy mechanism for the AGMS.

4

Presidential Regulation No. 36 of 2020 on the Development of Work Competencies through the Pre-Working Card Program

Enforcement date:

28 February 2020

• The pre-working card is Indonesia Government program as an effort to develop work competencies among jobseekers, employees who have been laid off and/or seeking to develop their competencies.
• The criteria of participants of the program are the following: (1) Indonesian citizens; (2) minimum 18 year-old; and (3) is not enrolled in any other formal education programs at that time being.
• The application to the program can be done online through the official website. All eligible applicant will obtain its digital Pre-Working Card.
• The benefit of the program consist of training and incentives. The given training consist of: (1) Briefing for work competencies; (2) Improvement of work competencies; (3) Transfer of work competencies. Meanwhile, the incentives provided to whom complete training program are as follows: (1) Reimbursement of jobseeker expenses; and (2) Evaluations of the efficiency of program.

5

OJK Regulation No. 11/POJK.03/2020 on National Economic Stimulus as Countercyclical Policy in Relation to the Impact of the Outbreak of the Coronavirus Disease 2019

Enforcement date:

16 March 2020

• All commercial banks and rural banks are allowed to implement asset quality determination policies and credit or financing restructuring policies in order to assist any debtors, including debtors which are classified as micro-, small- and medium-scale enterprises / Usaha Mikro Kecil Menengah (“UMKM”), that may be experiencing difficulties due to the impacts of the ongoing Covid-19 Pandemic. The abovementioned debtors include debtors operating within the following sectors: tourism, hospitality, trade, processing, agriculture and mining sectors.
• Credit or financing restructuring may be undertaken in relation to credit or financing which were obtained before and after the relevant debtors, including UMKM debtors, started to feel the impact of the Covid-19 pandemic. However, any process of restructuring itself may only take place after the relevant debtors have begun to be impacted by the pandemic.
• The above policies may be implemented until 31 March 2021.