No

Regulation

Summary

1

Chief of Justice of the Supreme Court Decree No. 109/KMA/ SK/IV/2020 of 2020 on the Enforcement of the Handbook for the Settlement of Bankruptcy and Suspension of Debt Payment Obligation Cases.

Enforcement date:

29 April 2020

• The regulation provides complete guidelines on the settlement of bankruptcy and suspension of debt payment obligation.
• We note that the enactment of the regulation has repealed and replaced the previously enacted regulation, Chief of Justice of the Supreme Court Decree No. 3/KMA/SK/I/2020 of 2020.
• For our complete commentary on the regulation, please see here.

2

Indonesia Investment Coordinating Board/Badan Koordinasi Penanaman Modal (“BKPM”) Regulation No. 1 of 2020 on the Guidelines for the Implementation of Electronically Integrated Business Licensing Service.

Enforcement date:

1 April 2020

• The regulation provides comprehensive guidelines for the utilization of Online Single Submission (OSS) system as managed by the BKPM in order to obtain (1) Business Identification Number/Nomor Induk Berusaha (NIB); (2) business licenses; and (3) commercial/operational licenses.
• Foreign investors are required to fulfill the following capital and investment value requirements: (1) Total investment value of IDR10Billion excluding land and building per business activity based on Indonesia Standard Industrial Classification (“KBLI”) and per project location; and (2) The amount of issued and paid-up capital at the minimum of IDR2.5Billion. However, such requirements shall not apply to foreign investor that have secured valid investment licenses prior to the enactment of Government Regulation No. 24 of 2018.
• Business licenses and commercial/operational licenses are classified into 4 categories, which are: (1) Licenses without commitment fulfillment; (2) Licenses with technical requirements; (3) Licenses with fee commitment; and (4) Licenses with both technical requirements and fee commitment.
• For our complete commentary on the regulation, please see here.

3

Head of BKPM Decree No. 86 of 2020 on Ease of Licensing for Certain Business Sectors in relation to COVID-19 Pandemic.

Enforcement date:

1 April 2020

• BKPM has provided some reliefs in the licensing of medical appliance and pharmaceutical industries in relation to the wake of COVID-19 pandemic in Indonesia, which are as follows: (1) Reduction and/or relaxation of business licensing requirements; (2) Acceleration of business licensing process; and (3) Other special assistance services.
• Such reliefs are applicable from 1 April 2020 until the issuance of a formal decree by the Head of Indonesian National Board for Disaster Mitigation/Badan Nasional Penanggulan Bencana regarding the end of COVID-19 emergency period.

4

Minister of Health Regulation No. 11 of 2020 on the Issuance of Electronically Integrated Business Licenses for the Health Sector.

Enforcement date:

18 May 2020

• The business licensing within the health sector is now electronically integrated through the OSS system. As such, the OSS System, on behalf of the Minister of Health, will issue 43 licenses within the health sector after the fulfillment of the relevant commitments by the business actors.
• Business licenses that have been obtained prior to the enactment of the regulation will remain valid until its expiration date.

5

Minister of Transportation Regulation No. PM 24 of 2020 on the Integration of Electronic Business Licensing within the Transportation Sector.

Enforcement date:

11 May 2020

• Business licensing services within the transportation sector are now to be processed electronically through the OSS system.  
• The Minister of Transportation will issue relevant business licenses after the relevant applicants have fulfilled their required commitments. Furthermore, BKPM, on behalf of the Minister of Transportation, will issue the commercial license or operational license via the OSS system upon the fulfillment of relevant commitments.

6

Minister of Religious Affairs Regulation No. 15 of 2020 on Business Licensing Standards at the Ministry of Religious Affairs.

Enforcement date:

5 May 2020

• Business actors who provide umrah and hajj pilgrimage services must obtain electronically integrated business licenses through OSS System.  
• The following are operational licenses to be issued in relation to the umrah and hajj services: (1) Operational Umrah Travel Organizer/Penyelenggara Perjalanan Ibadah Umrah (PPIU); and (2) Special Operational Hajj Pilgrimage Organizer/Penyelenggara Ibadah Haji Khusus (PIHK) license.

7

Minister of Manpower Regulation No. 6 of 2020 on Organization of Domestic Internship.

Enforcement date:

9 April 2020

• The number of interns is limited to a maximum of 20% of the total number of employees of the relevant company.
• Every intern must at least fulfill the following criteria: (1) aged of 17 years old at the minimum; (2) physically and mentally healthy; and (3) have passed the relevant recruitment process.
• Internship programs must adhere to certain competency standards (i.e. Indonesia/international work competency standards and/or special work competency standards) and must involve both theoretical and practical training in the form of simulations or in the production units of the relevant companies.

8

Decree of the Head of the Office of Manpower, Transmigration and Energy of the Special Capital Region of Jakarta No. 1477 of 2020 on the Amendment to Decree of the Head of the Office of Manpower, Transmigration and Energy of the Special Capital Region of Jakarta No. 1363 of 2020 on Protocols for the Prevention and Mitigation of COVID-19 in Offices/Workplaces during the Transition Period to a Healthy, Safe and Productive Community.

Enforcement date:

15 June 2020

• Companies are required to implement the Mitigation and Control of COVID-19 Protocol within their office spaces/workplaces during the ongoing transition period.
• The mitigation protocol to be implemented includes the following: (1) Establishment of an internal COVID-19 task force; (2) Limitation on the number of employees of up to 50% of total area capacity; (3) Implementation of shift-based work policies; (4) Keeping the workplace hygiene through disinfecting the workplace regularly; (5) Perform mandatory body temperature screening prior to entering the workplace; (6) Providing sufficient personal-hygiene equipment such as hand sanitizer; etc.
• Implement a minimum interval of three hours between each shift. For example: First Shift starts at 07.00 ends at 16.00, with break time from 11.00 – 12.00; and Second Shift starts at 10.00 ends at 19.00, with break time from 14.00 – 15.00.

9

BKPM Announcement No. 8//PENGUMUMAN/A.5/2020 on the Procedures to Request Support for the Visit of Representative(s) of Foreign Investment Company and/or Expert Expatriates during the COVID-19 Pandemic Period.

Enforcement date:

11 June 2020

• The announcement was issued in response to the joint covenant of BKPM, Ministry of Manpower, and the Ministry of Law and Human Rights regarding the procedures for bringing in foreign workers to Indonesia within the COVID-19 pandemic period.
• The announcement introduces BKPM Support Letter as a mandatory document to be submitted to obtain foreign worker working permit, namely Foreign Manpower Utilization Plan/Rencana Penggunaan Tenaga Kerja Asing (RPTKA).
• An application letter which contains the following detail should be submitted to BKPM: (a) Mobile phone number of PIC; (b) The purpose of hiring the relevant expatriate amidst COVID-19 pandemic; (c) details of the relevant company’s total investment and project locations in Indonesia; (d) Hiring plan for Indonesian workers; (e) identity of relevant expatriate which are: name, passport number, citizenship, job title; and; (f) Statement of willingness to comply with COVID-19 health protocols.
• The hardcopy of such application letter should be signed by the applicant company’s highest executive, such as President Director or Chief Executive Officer and be delivered to BKPM Administration Office/Tata Usaha BKPM.
• For our complete commentary on the regulation, please see here.

10

Bank Indonesia (“BI”) Regulation No. 22/8/PBI/2020 of 2020 on Bank Indonesia Integrated Licensing via the Licensing Front Office.

Enforcement date:

1 May 2020

• Licenses, approvals and services relating to monetary and macroprudential activities, payment systems and rupiah currency management are now can be completed through l the Licensing Front Office.
• The procedures of Licensing Front Office are the following: (1) An applicant must first secure access rights from Bank Indonesia; (2) Submission of paperless application through a BI licensing/services application; (3) Assessment of the completeness of the application, as well as of its administrative and substantive validity, as undertaken by BI; and (4) Issuance of approval for the relevant licensing.  

11

Financial Services Authority/Otoritas Jasa Keuangan (“OJK”) Regulation No. 40/POJK.05/2020 on Written Orders for the Mitigation of Problems Experienced by Non-Bank Financial Services Institutions.

Enforcement date:

18 June 2020

• OJK is authorized to give written orders to financial services institutions, including Non-Bank Financial Services Institutions/Lembaga Jasa Keuangan Non-Bank (“LJKNB”), to demand them to initiate or accept mergers, consolidations, acquisitions, integrations and/or conversions.
• The written orders can only be issued to LJKNB which meet certain criteria regarding their soundness levels or solvency/capital ratios, while said LJKNB should also undergo OJK assessments relating to their ability to deal with current or future pressures.
• Administrative sanctions in form of: (1) written warnings; (2) business restrictions; and/or (3) revocations of business licenses may be imposed to LJKNB that fails to comply with the written order.
• For our complete commentary on the regulation, please see here.

12

OJK Regulation No. 14/POJK.05/2020 on the Countercyclical Policy to Mitigate the Impact of the Coronavirus Disease 2019 Pandemic upon the Non-Bank Financial Service Institutions.

Enforcement date:

17 April 2020

• The regulation specifically address LJKNB that consists of: (1) insurance and reinsurance companies, including insurance and reinsurance broker company and insurance loss appraisal company; (2) Pension fund; (3) Financing institutions, including financing company, venture capital company, and infrastructure financing company; and (4) Other financial services institutions.
• OJK has extended the deadline of LJKNB mandatory periodic reporting during the COVID-19 pandemic period.
• OJK further provide provisions regarding LJKNB financing assets determination, financing restructuring, and granting of new financing for the Debtor impacted by the COVID-19 that will prevail for 1 (one) year period. 
• For our complete commentary on the regulation, please see here.

13

Minister of Finance Regulation No. 65/PMK.05/2020 of 2020 on Procedures for the Granting of Interest Subsidies/Margin Subsidies for Credit/Financing for Micro-, Small- and Medium-Scale Businesses under the Framework of the National Economic Recovery Program.

Enforcement date:

5 June 2020

• Government provides interest/margin subsidy to micro-, small, or medium-scale enterprise whose financing plafond is not exceeding to IDR10billion. Such subsidy may be granted for 2 (two) financing agreements with the cumulative plafond is less than IDR500million.
• In general, to receive the subsidy, a debtor should fulfill the following criteria: (1) has had financing debit balance as of 29 February 2020; (2) should not be listed in National Blacklist; (3) must be includes as performing-loan category (collectability 1 or 2) as of 29 February 2020; (4) have Taxpayer Identification Number/Nomor Pokok Wajib Pajak (NPWP).
• Procedures to be undertaken by the debtor to receive the said subsidy can be summarized to be: (1) submission of a Letter of Intent to obtain such subsidy; (2) submission of debtor’s data via credit program information; (3) registration of debtors; (4) submission of invoices for the subsidy; and (5) settlement of the invoice.  

14

Minister of Trade Circular Letter No. 12 of 2020 on the Resumption of Trading Activities during the Corona Virus Disease 2019 (COVID-19) Pandemic and the New Normal.

Enforcement date:

28 May 2020

• The following trade locations are allowed to operate during the transitional phase: (1) Traditional markets; (2) Convenience stores; (3) Restaurants and/or diners, including those located in rest areas; (4) Pharmacies, drugstores and medical appliance stores; 5) Malls and shopping centers; (5) salon/spa; (6) certain recreational sites e.g. zoo, museum, art galleries (“Trade Location”).
• Trade Location must strictly implement the stipulated health protocols, implementing physical distancing, carrying out initial screenings of its visitors, and maintaining the visitor quota maximum of 50%, and so forth.
• Organizers of Trading Locations must submit periodic reports which address the implementation of health protocols to the Head of the COVID-19 Task Force within the relevant jurisdictions.
• For our complete commentary on the regulation, see here.

15

Minister of Trade Regulation No. 57 of 2020 on Export Provisions for Raw Materials of Masks, Masks, and Personal Protective Equipment.

Enforcement date:

19 June 2020

• Having previously been the subject of a pandemic-related export ban, raw materials used to produce masks, masks, and personal protective equipment/Alat Pelindung Diri (“APD”) can now be exported once again, provided that the relevant exporters have secured Export Approvals/Persetujuan Ekspor (“PE”) for each of the relevant exported goods.
• Exporters shall submit the PE application to the Director-General of Foreign Trade through the Indonesia National Single Window system which integrated with the INATRADE. Provided that the application has completed, the PE will be issued by the Director-General along with the relevant QR Code at the latest within three days after the application duly received.
• We note that the issued PE will remain valid for six months. However, the Minister of Trade has the authority to suspend any issued PE and/or to refuse to process any PE applications if domestic demand for raw materials for masks, masks and APD increases to critical levels.

16

Law No. 3 of 2020 on the Amendment of Law No. 4 of 2009 on Minerals and Coal Mining.

Enforcement date:

10 June 2020

• The regulation requires mining business to be carried out based on business licensing in the form of business identification numbers, standard certificates and/or licenses which are to be granted by central government.
• The regulation stipulates new types of mining license which are: (1) Special Mining Business License for the Continuation of Operations for Contracts of Work/Kontrak Karya (KK) and Coal Mining Concession Working Agreements/Perjanjian Karya Pengusahaan Pertambangan Batubara (PKP2B); and (2) Letter for Rock Mining/Surat Izin Penambangan Batuan (SIPB).
• The regulation guarantees the extension of the validity periods for Mining Business Licenses for Production Operations, as well as KK and PKP2B, while it also allows holders of Mining Business Licenses and Special Mining Business Licenses to transfer their licenses to other parties upon approval being granted by the Minister of Energy and Mineral Resources.

17

Government Regulation No. 26 of 2020 on Forest Rehabilitation and Reclamation.

Enforcement date:

20 May 2020

• The regulation stipulates that the implementation of Forestry and Area Rehabilitation/Rehabilitasi Hutan dan Lahan (“RHL”) is required to maintain environmental sustainability.
• The RHL can be done through the following activities: (1) Forest rehabilitation within permanent forest areas which have been determined by the central government as permanent forest (except the nature reserves and the core zones of national parks); and (2) Rehabilitation areas within Forest Areas and certain areas of land located outside of Forest Areas.
• Overall, forest rehabilitation requires the implementation of the following states: 1) Reforestation; and/or 2) Implementation of soil conservation techniques.

18

Government Regulation No. 29 of 2020 on Income Tax Facilities in Relation to the Handling of Coronavirus Disease 2019. (COVID-19)

Enforcement date:

10 June 2020

• Income tax facilities will be given to the following eligible recipients: (1) Any domestic taxpayers who produce medical devices (and/or household health supplies); (2) Any taxpayers who make donations in the form of money, goods, services and/or asset utilization without receiving any compensation; (3) Any individual taxpayers who work within the health sector; (4) Taxpayers who lend their land, buildings or other assets to the government; and (5) Publicly-traded companies, etc.
• Such tax facilities will remain valid until 30 September 2020 and may be subject to extensions if required.
• For our complete commentary on the regulation, please see here.

19

BPN Decree No. 88.1/SK-HR.01/IV/2020 on Extension of the Validity of Land Titles and the Registration for Granting, Extension, or Renewal Decrees of Land Titles that Have Expired or Will Expire during the Coronavirus Disease 2019 (COVID-19) Emergency Status Period.

Enforcement date:

16 April 2020

• BPN provides an automatic extension for the holder of (a) Cultivation Rights Title/Hak Guna Usaha; (b) Building Rights Title/Hak Guna Bangunan; and (c) Right to Use/Hak Pakai (“Land Titles”) that have expired or will expire on 31 March 2020, are automatically extended up to 31 December 2020.
• BPN also extends the registration period for granting, extension, or renewal of Land Title Rights (“Land Title Rights Decree”) of land titles that have expired or will expire on 31 March 2020 up to 31 December 2020.
• The failure to perform extension of the above land rights prior to 31 December will result in (1) the expiration of the Land Titles; and/or (2) the Land Title Rights Decree being declared null and void.
• For our complete commentary on the regulation, please see here.

20

Indonesian Medical Council/Konsil Kedokteran Indonesia Regulation No. 74 of 2020 on Clinical Authority and Medical Practice via the Use of Telemedicine during the Period of the Corona Virus Disease 2019 (COVID-19) Pandemic in Indonesia.

Enforcement date:

30 April 2020

• Doctors and dentists who have obtained: (a) Registration Letter/Surat Tanda Registrasi and (b) Practice Permit/Surat Izin Praktik from the relevant healthcare facility may provide teleconsultation service through electronic application or system during the COVID-19 pandemic period.
• Doctors and dentist are restricted to conduct, among others: (a) provide teleconsultation without involving any authorized healthcare facilities; (b) demand its patients to conduct irrelevant medical assessment; (c) perform invasive actions; (d) Impose additional fee, other than the rates set by the relevant healthcare facility; (e) provide a Health Certificate/Surat Keterangan Sehat based on teleconsultation assessment, and so forth.
• For our complete commentary on the regulation, please see here.