AGRARIAN AFFAIRS Minister of Agrarian Affairs and Spatial ...57/PMK.04/2017 regarding the...

LEGAL ALERT AUGUST 2020 1

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AGRARIAN AFFAIRS Minister of Agrarian Affairs and Spatial Layout/Head of National Land

Agency Regulation No. 30 Year 2019 dated December 19, 2019,

regarding Land Registration for Dam, Lake, Retention Basin and

Reservoir. This Regulation provides guidelines and procedures for such

land registration, including the processing for submitting an application to

the land agency. This Regulation came into force on December 31, 2019.

Minister of Agrarian Affairs and Spatial Layout/Head of National Land

Agency Regulation No. 4 Year 2020 dated March 16, 2020, regarding

Land Appraisers. This Regulation stipulates the licensing requirements for

land appraisers, encompassing the application process, verification and

the granting of a license. It also provides the list of documents required for

a license application and the required documents for a license renewal.

This Regulation came into force on March 23, 2020.

Minister of Agrarian Affairs and Spatial Layout/Head of National Land

Agency Circular Letter No. 6/SE-100.PL.02/IV/2020 dated April 3, 2020,

regarding Procurement of Goods/Service in the Framework of Preventing

Corona Virus Disease 2019 (COVID-19) and the Implementation of

Contracts at the Ministry of Agrarian Affairs and National Land Agency

during the COVID-19 Emergency Situation. This Circular Letter provides

detailed guidelines and procedures for the government procurement of

goods/services in relation to the prevention of the spread of COVID-19 and

the implementation of contracts during the outbreak. This Circular Letter

came into force on the date of its issuance.

BANK INDONESIA Bank Indonesia (“BI”) Board of Governors Regulation No.

22/2/PADG/2020 dated March 10, 2020, regarding the Fourth

Amendment of BI Board of Governors Regulation No. 20/10/PADG/2018

regarding Minimum Giro in Rupiah and Foreign Currency for Conventional

Commercial Banks, Sharia Commercial Banks and Sharia Business Units.

This Regulation reduces the minimum foreign currency giro for

conventional commercial banks from 8% to 4%. It came into force on March

16, 2020.

BI Regulation No. 22/2/PNI/2020 dated March 19, 2020, regarding the

Second Amendment of BI Regulation No. 20/10/PBI/2018 regarding

Domestic Non-Deliverable Forward. This Regulation adds to the types of

Domestic Non-Deliverable Forward transactions to include (i) trade of

goods and services locally or overseas, (ii) investments, (iii) granting of

credit or bank payment in foreign currencies for trade and investment

activities, and (iv) ownership of rupiah bank account by a foreigner. This

Regulation came into force on the date of its enactment.

BI Regulation No. 22/3/PBI/2020 dated March 24, 2020, regarding the

Amendment of BI Regulation No. 20/3/PBI/2018 regarding Minimum Giro


in Rupiah and Foreign Currency for Conventional Commercial Banks,

Sharia Commercial Banks and Sharia Business Units. This Regulation

adds provisions relaxing the minimum giro requirement for macroprudential

policies and the minimum giro requirement for conventional commercial

banks, sharia commercial banks and sharia business units. This

Regulation came into force on March 26, 2020.

BI Regulation No. 22/4/2020 dated April 15, 2020, regarding Incentives

for Banks Providing Funding for Certain Economic Activities to Support the

Mitigation of the Economic Impact of the Corona Virus. This Regulation

provides technical details on incentives available to banks as indicated in

the title of the Regulation, including for how long the incentives are

available, and the scope and source of funding for certain economic

activities. This Regulation came into force on the date of its enactment.

ECONOMIC AFFAIRS Coordinating Minister for Economic Affairs Regulation No. 3 of 2020

dated March 20, 2020, regarding the Implementation of Presidential

Regulation No. 36 of 2020 regarding the Development of Work

Competence though the Pre-Employment Card Program. This Regulation

concerns mechanisms for the distribution of pre-employment cards,

benefits, training programs and the institutions that will implement the

program. It came into force on March 27, 2020.

ENERGY AND MINERAL

RESOURCES

Minister of Energy and Mineral Resources (“MEMR”) Decision No.

62.K/12/MEM/2020 dated February 28, 2020, regarding Base Price

Formula in Calculating Retail Sales Price for Types of Common Oil Fuel

Materials for Types of Solar Oil and Fuel Funneled Through Public Fuel

Filling Stations and/or Fuel Filling Stations for Fisherpersons. This Decision

determines the formula for the base price for common fuel oil types of

funneled through public fuel filling stations and fuel filling stations for

fisherpersons. Authority is granted to business entities holding an oil and

natural gas commercial business license to determine the base price

formula. Such entities shall be required to submit a report on the

determination of the retail price to the MEMR. This Decision came into

effect on the date of its enactment.

MEMR Regulation No. 10 of 2020 dated April 6, 2020, regarding the

Amendment of MEMR Regulation No. 45 of 2017 regarding Utilization of

Natural Gas for Power Plants. This Regulation introduces several new

provisions to adjust the pricing of natural gas for power plants and the

mechanisms for electricity power purchases. This Regulation came into

force on the date of its issuance.

MEMR Regulation No. 11 of 2020 dated April 14, 2020, regarding the

Third Amendment of MEMR Regulation No. 7 of 2017 regarding

Procedures for Determining Benchmark Sales of Metal and Coal Minerals.

This Regulation is intended to increase the effectiveness of benchmark


prices for mineral and coal mining commodities. This Regulation came into

force 30 days from its date of issuance.

MEMR Decision No. 89K/10/MEM/2020 dated April 13, 2020, regarding

Users and Prices of Certain Natural Gas in the Industrial Sector. This

Decision sets forth the users and prices for certain natural gas in the

industrial sector. It came into effect on the date of its issuance.

FINANCE

Ministry of Finance Regulation No. 11/PMK.010/2020 regarding the

Implementation of Government Regulation No. 78 Year 2019 dated

February 11, 2020, regarding Income Tax Facility for Investments in

Certain Business Fields and/or in Certain Regions (“GR 78/2019”). This

Regulation contains provisions on income tax facilities available to local

corporate taxpayers that make either new investments or expand their

business in certain business fields as regulated by GR 78/2019. This


Director General of Taxation Circular Letter No. SE-4/PJ/2020 dated

February 3, 2020, regarding Value Added Tax Treatment for the Delivery

of Certain Port Services to Sea Transportation Companies Conducting

International Sea Transportation Activities. This Regulation provides

guidelines for and an explanation of the provisions of Government

Regulation No. 74 Year 2015 regarding Value Added Tax Treatment for

the Delivery of Certain Port Services to Sea Transportation Companies

Conducting International Sea Transportation Activities, including the

requirement to not carry any passengers and/or goods from one port to

another in the territory of Indonesia. This Regulation came into force on the

date of its enactment.

Minister of Finance Regulation No. 17/PMK.010/2020 dated March 10,

2020, regarding the Third Amendment of Minister of Finance Regulation

No. 6/PMK.010/2017 regarding the Stipulation of Goods Classification

System and Imposition of Import Duty Rates on Imported Goods. This

Regulation amends the goods classification system and import duty rates

on imported goods. It also amends a provision on import duty rates on

imported goods in the form of petroleum coke that is not calcined. This

Regulation came into force on March 23, 2020.


2020, regarding Procedures for the Implementation of Transfer Pricing

Agreement (Advance Pricing Agreement). This Regulation provides the

procedures for the submission of Advance Pricing Agreement applications

to the Director General of Taxation by taxpayers, as well as the revocation

of Advance Pricing Agreement applications. It provides a detailed

explanation of the necessary steps for an Advance Pricing Agreement. This




2020, regarding Tax Incentives for Taxpayers Affected by the Coronavirus

Outbreak. This Regulation is aimed at maintaining economic stability and

protecting purchasing power and the productivity of certain economic

sectors in the wake of the COVID-19 outbreak. It came into force on March

23, 2020.

Director General of Taxation Decision No. KEP-156/PJ/2020 dated

March 20, 2020, regarding Taxation Policy in Relation to the Spread of

COVID-19. This Regulation is aimed at providing relief to taxpayers in the

wake of COVID-19. It waives sanctions for individual taxpayers late in

submitting annual tax returns for the 2019 tax year or late in making

payment for tax underpayments. This Regulation came into force on the


Minister of Finance Regulation No. 28/PMK.03/2020 dated April 6,

2020, regarding the Granting of Tax Facilities for Goods and Services

Necessary in the Framework of Handling the Corona Virus 2019 Pandemic.

This Regulation is aimed at helping to ensure the availability of drugs,

health equipment and supporting equipment for the handling of the COVID-

19 pandemic. It provides VAT incentives for certain parties for the import

of taxable goods and/or services and/or the utilization of taxable services

from outside the customs area in responding to the COVID-19 outbreak

during the tax period of April 2020 until September 2020. This Regulation

came into force on the date of its promulgation.


2020, regarding the Amendment of Minister of Finance Regulation No.

57/PMK.04/2017 regarding the Postponement of Excise Payments for

Manufacturers or Importers of Excisable Goods Making Payments by Way

of Affixing Excise Bands. This Regulation is aimed at maintaining the

productivity and cash flow of manufacturers of excisable goods in relation

to COVID-19. This Regulation came into force on April 9, 2020.


2020, regarding Additional Incentives for Companies that Receive Bonded

Zone Facilities and/or Ease of Import of Goods for Export Purposes for

Handling the Impact of the Corona Virus Disease. This Regulation is aimed

at anticipating the impact of COVID-19 on the industrial sector and the

availability of local goods. This Regulation came into force on the date of

its enactment.


April 9, 2020, regarding Guidelines for the Extension of the Time Period

for the Implementation of the Rights and Fulfillment of Tax Obligations

Under Government Regulation in Lieu of Law Number 1 Year 2020

regarding State Financial Policy and Financial System Stability for

Handling the Corona Virus Disease 2019 (COVID-19) Pandemic and/or in


the Framework of Dealing with Threats that May Harm the National

Economy and/or Financial System Stability. This Circular Letter contains

guidelines and procedures for calculating the period of time for the

implementation of rights and the fulfilment of obligations for matters as

specified in this Circular Letter. This Circular Letter came into force on the



March 31, 2020, regarding Guidelines for the Implementation of Minister

of Finance Regulation No. 23/PMK.03/2020 regarding Tax Incentives for

Taxpayers Affected by the Corona Virus Outbreak. This Circular Letter

provides guidelines for the implementation of Minister of Finance

Regulation No. 23/PMK.03/2020. It also provides guidelines for the

submission of application letters for tax incentives for taxpayers and the

submission of notification letters regarding the right to use the tax

incentives. This Regulation came into force on the date of its enactment.


2020, regarding Guidelines for the Granting of Loans from the Government

to the Head of the Deposit Insurance Agency. This Regulation stipulates

the requirements for deposit insurance agencies in acquiring loans from

the Government. It also provides guidelines for obtaining such loans. This

Regulation came into force on April 16, 2020.


2020, regarding the Granting of Customs and/or Excise and Taxation

Facilities on the Import of Goods for Handling the Corona Virus 2019

(COVID-19) Pandemic. This Regulation is aimed at accelerating the

granting of customs and/or excise and taxation facilities on the import of

goods and/or services for containing the spread of COVID-19. The facilities

granted are stipulated in this Regulation, as are the guidelines and

procedures for applying for such facilities. This Regulation came into force

on April 17, 2020.

Director General of Taxation Regulation No. PER-07/PJ/2020 dated

April 16, 2020, regarding Taxpayer Registration Locations and/or

Reporting Locations for Taxable Entrepreneurs at the Tax Service Offices

in the Regional Office of the Directorate General of Taxation for Large

Taxpayers, Tax Service Offices in the Regional Office of the Directorate

General of Taxation, Jakarta, and the Intermediate Tax Service Office. This

Regulation is aimed at providing relief and enhancing the supervision of

the fulfilment of the tax rights and obligations of business actors conducting

business activities through electronic systems. This Regulation came into

force on April 17, 2020.

Director General of Taxation Announcement No. PENG-43/PJ/2020

dated March 24, 2020, regarding Adjustment of the Submission and

Settlement of Value Added Tax Returns for Personal Carried Goods by


Foreign Passport Holders (VAT Refund for Tourists). This Announcement

states that the Value Added Tax Restitution Implementation Unit will not

provide face-to-face services for foreign tourists who wish to submit a VAT

return for personal carried goods. It states that the submission may be

done electronically, as provided by the Directorate General of Taxation.

This Announcement is effective as of the date of its issuance.

FINANCIAL SERVICES

AUTHORITY (“OJK”) /

Indonesia Stock Exchange

(“IDX”)

OJK Regulation No. 3/POJK.04/2020 dated February 19, 2020,

regarding the Behavior of Securities Companies in Conducting Business

Activities as a Securities Broker. This Regulation stipulates obligations for

securities companies conducting business activities as a securities broker,

and administrative sanctions for violations of these obligations. This



regarding the Issuance of Foreign Depositary Receipts. This Regulation

requires that the OJK be notified of the issuance of Foreign Depositary

Receipts, along with the applicable administrative sanctions for failure to

make such notification. This Regulation came into force on the date of its

enactment.

Circular Letter of PT Indonesia Stock Exchange No. SE-00002/BEI/03-

2020 dated March 2, 2020, regarding Procedures for the Implementation

of Share Ownership Program. This Circular Letter provides the scheme

and timeline for implementing a Share Ownership Program to provide

options that may be converted to shares. It came into effect on the date of

its enactment.


regarding Public Offering of Loan Security and/or Sukuk in Currencies

other than Rupiah. This Regulation stipulates (i) additional information that

must be provided in the prospectus in relation to the public offering of debt-

based securities and/or sukuk bonds in currencies other than rupiah, (ii)

reporting obligations and (iii) the relevant administrative sanctions. This



regarding Security Administration Bureau Reports for Issuers and Public

Companies Establishing their Own Security Administrations. This

Regulation provides reporting obligations for Security Administration

Bureaus including (i) the types of reports to be submitted, (ii) the deadlines

for report submissions, (iii) information to be included in the reports, and

(iv) applicable administrative sanctions. This Regulation came into effect

on the date of its enactment.

OJK Regulation No. 12/POJK.03/2020 dated March 17, 2020, regarding

Consolidation of Conventional Banks. This Regulation provides new

provisions for (i) conventional bank consolidation schemes, (ii) bank


business groups and (iii) minimum core capital and capital equivalency-

maintained asset requirements. This Regulation came into effect on the


Director of PT Indonesia Stock Exchange Decision Letter No. KEP-

00028/BEI/03-2020 dated March 23, 2020, regarding the Reporting of

Security Transactions through the Receiving System for Security

Transaction Reports (PLTE System). This Decision Letter provides specific

provisions for the correction of Security Transaction Reports submitted to

the PLTE System, in particular related to market information such as (i)

repo transactions data, (ii) the timing of security transactions and (iii) the

timing of reports or instructions to participants. This Decision Letter came

into force on March 24, 2020.


00031/BEI/03-2020 dated March 30, 2020, regarding the Amendment of

Trading Session Hours for Stock Exchange Transactions. In response to

the COVID-19 outbreak, the Indonesia Stock Exchange has shortened the

trading session hours for share transactions on the cash, regular and

negotiated markets. This Decision Letter came into effect on the date of its

release.


00032/BEI/03-2020 dated March 26, 2020, regarding the Amendment of

Trading Hours for State Bonds through the Electronic Trading System

Platform. This Decision Letter temporarily revokes the trading hours

stipulated in Director of PT Indonesia Stock Exchange Decision Letter No.

0037/BEI/03-2017 dated March 21, 2017, regarding Regulations on the

Trading of State Bonds through the Electronic Trading System Platform.

This Decision Letter came into force on March 30, 2020.

OJK Regulation No. 13 /POJK.03/2020 dated March 24, 2020, regarding

the Amendment of OJK Regulation No. 38/POJK.03/2016 regarding the

Implementation of Risk Management in the Use of Information Technology

by Conventional Banks. This Regulation revokes provisions regarding the

use of data in electronic systems that are placed outside the territory of

Indonesia, particularly in Article 21 (3) (a)-(c). It also adds criteria for

electronic systems that may be placed outside the territory of Indonesia, in

that such systems shall be for the purpose of providing services to global

customers. This Regulation came into force on March 31, 2020.

OJK Letter No. S-4/D.03/2020 dated March 16, 2020, regarding

Preventive Measures to Mitigate the Impact of COVID-19 on the Banking

Industry. This Letter calls on business actors in the banking sector to

implement work from home policies in accordance with their internal

procedures and business continuity plans. It came into effect on the date

of its issuance.


OJK Letter No. S-6/D.05/2020 dated March 19, 2020, regarding Efforts

to Prevent the Spread of COVID-19 within the Non-Bank Financial Industry.

This Letter calls on actors in the non-bank financial industry to take

concrete steps to prevent the spread of COVID-19 and report these steps

to the OJK. It came into force on the date of its issuance.


Relaxation of the Reporting Deadlines of Non-Bank Financial Services

Institutions to the OJK. This Letter extends the reporting deadlines for the

above institutions in response to the spread of COVID-19 and calls on

these institutions to implement work from home policies. This Letter came

into effect on the date of its issuance.


Countercyclical Policy Over COVID-19 Pandemic Impact on Financing

Companies. This Letter provides several measures with regard to the

application of prudential principles, risk management and good corporate

principles. It also provides that the OJK may request financing companies

to implement policies that are more stringent than the countercyclical

policies in this Letter. This Letter came into force on the date of its issuance.

OJK Letter No. S-88/D.04/2020 dated March 30, 2020, regarding the

Mitigation and Handling of the Spread of COVID-19 in the Capital Markets

Sector. This Letter provides several measures to mitigate the spread of

COVID-19 in the capital markets sector with regard to the application of

prudential principles, risk management and good corporate principles. It

also provides that the OJK may request financing companies to implement

policies that are more stringent that those in this Letter. This Letter came

into force on the date of its issuance.


Explanation of the Implementation of Share Buy-Backs by Issuers or Public

Companies. This Letter contains a number of provisions including those on

the timing for announcing a share buy-back and the disclosure of the

identities of the parties’ receiving shares. This Letter came into force on the

date of its issuance.

OJK Regulation No. 14/POJK.05/2020 dated April 17, 2020, regarding

Countercyclical Policy Over COVID-19 Pandemic Impact on Non-Bank

Financial Services Institutions. This Regulation stipulates the deadlines for

the submission of periodical reports and contains provisions on, among

other matters, the implementation of asset quality funding and restructuring

funding. This Regulation came into effect on the date of its enactment.


the Planning and Holding of General Meeting of Shareholders by Public

Companies. This Regulation contains various provisions on General

Meeting of Shareholders (“GMS”) for public companies including


procedures for planning and holding such meetings and electronic

authorization for GMS. This Regulation came into effect on the date of its

enactment.


the Electronic Implementation of General Meeting of Shareholders of

Public Companies. This Regulation contains provisions on the

implementation of an electronic General Meeting of Shareholders and

relevant sanctions. It came into force on the date of its enactment.


Material Transactions and the Amendment of Business Activities. This

Regulation provides the scope of material transactions, the obligations for

public companies in amending their business activities, the scope of the

required media announcement and relevant sanctions. It came into force


FOREIGN AFFAIRS Minister of Foreign Affairs Circular Letter No. D/00765/04/2020/64 of

2020 dated April 1, 2020, regarding Protocols for Evaluating Sick or

Deceased Foreigners in Indonesia. This Circular Letter provides evaluation

protocols for foreign nationals who are or are suspected of being COVID-

19 positive or who are hospitalized in Indonesia with an illness other than

COVID-19. It also contains protocols for repatriating the bodies of foreign

nationals who die in Indonesia from COVID-19. This Circular Letter came

into force on the date of its enactment.

HEALTH Head of the National Agency of Food and Drug Control (“BPOM”)

Regulation No. 1 of 2020 dated January 27, 2020, regarding the

Revocation of BPOM Decision No. HK.00.05.4.1745 of 2003 regarding

Cosmetics. With the issuance of this Regulation, BPOM revokes and

declares null and void BPOM Decision No. HK.00.05.4.1745 of 2003

regarding Cosmetics. This revocation was made based on the

consideration that the provisions in the earlier Decision were regulated in

several other laws and regulations in accordance with legal requirements

as well as developments in science and technology. This Regulation came

into force on the date of its enactment.

BPOM Regulation No. 2 of 2020 dated February 5, 2020, regarding

Supervision of Cosmetics Production and Distribution. This Regulation

contains provisions on the supervision of the production and distribution of

cosmetics. It also stipulates that overseas cosmetics production facilities

can be supervised by Indonesian authorities if such facilities receive

production contracts from Indonesia and/or produce products that will be

distributed in Indonesia. Administrative sanctions for violations of the

provisions of this Regulation include written warnings, temporary

prohibition on the distribution of cosmetics, withdrawal of cosmetics from

circulation, destruction of cosmetics, suspension of the production and/or

importation of cosmetics for a maximum period of one year and revocation


of notification number. This Regulation came into force on the date of its

enactment and revokes BPOM Regulation No. HK.03.1.23.12.11.10052 of

2011.

Minister of Health (“MOH”) Regulation No. 9 of 2020 dated April 3,

2020, regarding Guidelines for Large-Scale Social Distancing in the

Context of Accelerating the Handling of Corona Virus Disease 2019

(COVID-19). This Regulation provides that large-scale social distancing in

response to COVID-19 can only be introduced in a province/regency/city if

the number of cases and/or deaths due to the disease significantly and

rapidly increases and spreads to several regions, and there is an

epidemiological connection with similar events in other regions or

countries. This Regulation came into force on the date of its enactment.

MOH Decision No. HK.01.07/MENKES/239/2020 of 2020 dated April 7,

2020, regarding the Stipulation of Large-Scale Social Distancing in DKI

Jakarta Province in the Context of Accelerating the Handling of

Coronavirus Disease 2019 (COVID-19). This Decision stipulates the

obligation for large-scale social distancing in Jakarta. The regional

government of DKI Jakarta province is obligated to conduct large-scale

social distancing in accordance with the provisions of laws and regulations,

and to encourage and promote a clean and healthy lifestyle among the

community. This Decision came into force on the date of its enactment.

BPOM Regulation No. 4 of 2020 dated February 28, 2020, regarding

Working Unit for Goods/Services Procurement in BPOM. This Regulation

concerns the establishment of a Working Unit for the Procurement of

Goods/Services in BPOM (Unit Kerja Pengadaan Barang/Jasa), which is

authorized to organize and manage procedures for the procurement of

goods/services in BPOM. This Regulation came into force on the date of

its enactment and revokes BPOM Regulation No. 2 of 2018.

BPOM Regulation No. 5 of 2020 dated March 6, 2020, regarding the

Integration of Electronic Business Licensing Services for the Drug and

Food Sector. This Regulation moves licensing authority for the food and

drug sector to the Online Single Submission (“OSS") system. The business

permits to be issued through the OSS system are drug and food distribution

permit, good manufacturing practice certificate, good distribution of

medicine practice certificate, export certificate, import of drug and food

certificate, and analysis of the results of narcotics, psychotropic and

pharmaceutical precursors. This Regulation came into force on the date of

its enactment.

INDUSTRY Minister of Industry (“MOI”) Circular Letter No. 4 of 2020 dated April

7, 2020, regarding Implementation of Manufacturing Operations during the

Corona Virus Disease 2019 Public Health Emergency. This Circular Letter

addresses factory operations during the implementation of social


distancing measures in response to COVID-19. This Circular Letter came

into effect on the date of its issuance.

MOI Letter No. B/312/M-IND/IND/IV/2020 of 2020 dated April 2, 2020,

regarding Implementation of Industrial Activities during the Emergency

Situation of the COVID-19 Pandemic. This Letter is addressed to regional

governments. The MOI expects regional governments to (i) support the

implementation of industrial activities in their respective regions during the

emergency situation; (ii) to not limit industrial activities including but not

limited to the movement of employees or the distribution of goods prior to

the stipulation of large-scale social distancing by the Ministry of Health; (iii)

in the event the Ministry of Health approves large-scale social distancing

in a particular region, the closure of industrial activities must be done

selectively, and in particular, leeway shall be given to companies that

produce products for handling COVID-19 and companies involved in

producing basic needs of society; and (iv) encourage agencies responsible

for overseeing the industrial sector to empower companies to implement

COVID-19 prevention protocols in the workplace. This Letter came into

force on the date of its issuance.

MOI Circular Letter No. 7 of 2020 dated April 9, 2020, regarding

Guidelines on Licensing Applications for Implementing Industrial Activities

during the Corona Virus Disease Public Health Emergency 2019. This

Circular Letter was issued to ensure the continuance of industrial activities

considered vital to the economy and society during the COVID-19

response. It also provides guidance for industrial companies and/or

industrial areas in operating during the COVID-19 situation. Industrial

companies and/or companies in industrial areas may continue to operate

by obtaining an operational license via siinas.kemenperin.go.id. This

Circular Letter came into force on the date of its issuance.

INVESTMENT

Chairman of the Investment Coordinating Board Decision No. 86 Year

2020 dated April 1, 2020, regarding Ease of Business Licensing for

Certain Business Sectors related to the Management of the COVID-19

Outbreak. This Decision is aimed at easing and accelerating the business

licensing process in the health equipment and pharmaceutical business

sectors. This Decision came into force on the date of its enactment.

Chairman of the Investment Coordinating Board Regulation No. 1

Year 2020 dated April 1, 2020, regarding Guidelines for the

Implementation of Electronic Integrated Business Licensing Services. This

Regulation provides detailed and comprehensive guidelines, procedures

and requirements for business licensing activities in various economic

sectors. Business licenses, investment registrations and commercial and

operational licenses issued prior to the issuance of this Regulation shall

remain valid insofar as they do not conflict with the provisions of this

Regulation. This Regulation came into force on the date of its promulgation.


Chairman of the Investment Coordinating Board Decision No. 98 Year

2020 dated April 16, 2020, regarding License Issuance Standards. This

Decision stipulates standards for the issuance of business licenses in every

business sector as set out in the attachment to this Decision. Completion

of business permits and operational/commercial permits in the framework

of the implementation of investment is integrated with the Online Single

Submission system or done through ministerial or agency officials placed

in the Investment Coordinating Board. This Decision came into force on the

date of its issuance.

LAW AND HUMAN RIGHTS Minister of Law and Human Rights (“MOLHR”) Regulation No. 7 of

2020 dated February 28, 2020, regarding Granting Visas and Stay

Permits in Order to Prevent the Entry of Corona Virus. This Regulation

aims to strengthen measures to prevent the spread of COVID-19 in

Indonesia by limiting the granting of visas and stay permits for people from

China. This Regulation came into force on the date of its promulgation.

MOLHR Regulation No. 8 of 2020 dated March 19, 2020, regarding

Temporary Termination of Visitor Visas and Visitor Visas on Arrival and the

Granting of Emergency Stay Permits. This Regulation temporarily halts the

granting of visitor visas and visitor visas on arrival. It also addresses the

granting of emergency stay permits to foreign nationals impacted by

lockdown policies in other countries. This Regulation came into force one

day after its issuance.

Directorate General of Immigration Circular Letter No. IMI-

1873.GR.01.01 of 2020 dated March 6, 2020, regarding the

Implementation of Granting Visas and Stay Permits in Order to Prevent the

Entry of Corona Virus. This Circular Letter follows up on MOLHR

Regulation No. 7 of 2020 regarding Granting Visas and Stay Permits in

Order to Prevent the Entry of Corona Virus and provides guidance on the

implementation of that Regulation. This Circular Letter came into force on

the date of its stipulation.

MOLHR Regulation No. 11 of 2020 dated March 31, 2020, regarding

Temporary Restriction on Foreigners Entering the Republic of Indonesia.

This Regulation provides restrictions on the entry/transit of foreigners in

Indonesian territory. This Regulation came into force on April 2, 2020.

Mutual Agreement between the Supreme Court, Attorney General’s

Office and Ministry of Law and Human Rights No.

402/DJU/HM.01.1/4/2020, KEP-17/E/Ejp/04/2020 and PAS-08.HH.05.05

of 2020 dated April 13, 2020, regarding the Implementation of Court

Hearings by Teleconference. This Agreement sets forth the process for

holding court hearings by teleconference. It came into force on the date of

its issuance.


MANPOWER Minister of Manpower Circular Letter No. M/l/HK.04/11/2020 dated

February 21, 2020, regarding the Utilization of Foreign Manpower

Originating from the People’s Republic of China in the Framework of

Preventing the Outbreak of the Disease Caused by the Corona Virus. This

Circular Letter prohibits the utilization of foreign workers from China. It also

stipulates that Chinese workers with temporary jobs and still residing in

Indonesia may have their contracts extended a maximum of six months.

This Regulation came into force on the date of its enactment.

Director General of Manpower Inspection Supervision and

Occupational Safety and Health Circular Letter No.

5/193/AS.02.02/III/2020 dated March 12, 2020, regarding Preparedness

in Facing the Spread of Corona Virus in the Workplace. This Circular Letter

sets out the steps to be taken to contain the spread of COVID-19 in

workplaces, including reporting any potential infections, conducting

inspections and ensuring the implementation of occupational health and

safety measures. It came into force on the date of its issuance.

Minister of Manpower Circular Letter No. M/4/HK.04/IV/2020 dated

April 8, 2020, regarding Utilization of Foreign Manpower in the Framework

of Preventing the Outbreak of the Disease Caused by the Corona Virus

(COVID-19). This Circular Letter regulates the temporary suspension of

licensing services for the use of foreign workers. It provides an exemption

for certain workers, including those who will work on national strategic

projects in accordance with the provisions of laws and regulations. This

Circular Letter came into force on the date of its issuance and will be valid

until the authorized authority declares the COVID-19 pandemic over.

MARITIME AFFAIRS AND

FISHERIES

Minister of Maritime Affairs and Fisheries Regulation No. 9/PERMEN-

KP/2020 dated March 27, 2020, regarding Republic of Indonesia Fisheries

Management Area in Inland Water Bodies. This Regulation governs the

management of fisheries and divides the management areas into 14 types.

This Regulation came into force on the date of its enactment.

PRESIDENTIAL

RGULATION

Presidential Regulation No. 36 of 2020 dated February 28, 2020,

regarding Development of Work Competence through the Pre-Employment

Card Program. This Regulation was issued to implement the pre-

employment card program. This program is intended to develop the

competency of employees and increase employee productivity and

competitiveness. This Regulation sets forth the procedures to register for

the program, incentives, training, funding and the government’s role of the

program. It came into force on the date of its issuance.

Government Regulation No. 18 of 2020 regarding Revocation of

Government Regulation No. 34 of 1991 regarding Procedures for

Patent Request and Government Regulation No. 11 of 1993 regarding

Form and Content of Patent Letter dated February 28, 2020. This

Regulation was issued to revoke Government Regulation No. 34 of 1991


and Government Regulation No. 11 of 1993 because of inconsistencies

between those two regulations and Law No. 13 of 201i6 regarding Patents.

The Regulation came into force on the date of its issuance.

Presidential Regulation No. 38 of 2020 dated February 28, 2020,

regarding Types of Positions that Can Be Filled by Government Officers

under an Employment Agreement. This Regulation sets out the positions

that can be filled by government officers under an employment agreement.

There are two types of positions that can be filled, those being functional

positions and high leadership positions. This Regulation further governs

the criteria for the positions. It came into effect on the date of its issuance.

Presidential Regulation No. 44 of 2020 dated March 16, 2020, regarding

Certification System for Indonesian Sustainable Palm Oil Plantations. This

Regulation was issued with the stated intention of improving the

certification system for sustainable palm oil plantations. This Regulation

covers, among other topics, (i) Indonesian sustainability certification for

palm oil plantations; (ii) market competitiveness and participation; (iii)

guidance and monitoring; and (iv) sanctions. It came into effect on the date

of its issuance.

PUBLIC WORKS AND

PUBLIC HOUSING

Minister of Public Works and Public Housing (“MPWPH”) Regulation

No. 6 of 2020 dated February 18, 2020, regarding the Amendment of

MPWPH Regulation No. 27/PRT/M/2015 regarding Dams. This Regulation

aims to support the development of solar power plants by amending

provisions on space utilization for dams. It came into effect on the date of

its issuance.

MPWPH Regulation No. 4 of 2020 dated February 13, 2020, regarding

Standard Operating Procedures for the Implementation of Drinking Water

Supply System. This Regulation provides standard operating procedures

to manage and develop drinking water supply systems. These procedures

are to be used by state-owned enterprises, regional-owned enterprises,

technical administrative units and the administrators of technical agencies.

This Regulation came into effect on the date of its issuance.

REGIONAL REGULATION Governor of DKI Jakarta Regulation No. 12 Year 2020 dated January

30, 2020, regarding Guidelines for the Fulfillment of Spatial Utilization

Obligations by License Holders and/or Non-License Holders. This

Regulation stipulates the types of spatial utilization licenses/non-licenses

and their respective obligations. It came into force on February 5, 2020.

Governor of DKI Jakarta Regulation No. 33 Year 2020 dated April 9,

2020, regarding the Implementation of Large-Scale Social Distancing in

Handling Corona Virus Disease 2019 (COVID-19) in the Province of DKI

Jakarta. This Regulation provides restrictions on activities outside the

home in order to prevent the spread of COVID-19. It also provides certain


requirements, such as the obligation to wear a mask when outside the

home. This Regulation came into force on the date of its enactment.

Governor of DKI Jakarta Decision No. 380 Year 2020 dated April 9,

2020, regarding the Enforcement of Large-Scale Social Distancing in

Handling Corona Virus Disease 2019 (COVID-19) in the Province of DKI

Jakarta. This Decision regulates the enforcement of large-scale social

distancing for a period of 14 days, from April 10, 2020 to April 23, 2020. It

may be extended on the recommendation of the Task Force for the

Acceleration of the Handling of COVID-19. This Decision came into force

on April 10, 2020.

TAXATION Director General of Customs and Excise Circular Letter Number SE-

02/BC/2020 dated February 18, 2020, regarding Research Guidelines on

the Importation of Goods Originating from China Using the ACFTA

Preferential Tariff Scheme (SKA Form E) as an Impact of the Corona Virus

Epidemic. This Circular Letter grants flexibility in the submission of the

original SKA Form E. It also stipulates the requirements for the granting of

preferential tariffs. This Circular Letter came into force on the date of its

issuance.

Collective Decision of the National Management Authority and the

Director General of Customs and Excise Decision No. 01/BNPB/2020

and KEP-113/BC/2020 dated March 20, 2020, regarding the Acceleration

of the Importation of Goods and/or Services for the Handling of Corona

Virus Disease 2019 (COVID-19). This Decision is aimed at providing

leniency in implementing the entry of goods. It also provides leniency in the

submission of applications for import duty, excise and/or import tax

exemptions for imported goods for the purpose of handling the spread of

COVID-19. This standard operational procedure shall be effective until

otherwise determined by the Government. This Decision came into force


Director General of Customs and Excise Circular Letter No. SE-

07/BC/2020 dated March 30, 2020, regarding Research Guidelines for the

Importation of Goods Using Import Duty Tariff Scheme Based on

International Agreement (Preferential Tariff) as an Impact of the Corona

Virus Disease (COVID-19) Pandemic. This Circular Letter regulates,

among other things, in the submission of an original Information of Origin

Letter (Surat Keterangan Asal or “SKA”). It came into force on the date of

its issuance.

TOURISM

Minister of Tourism and Creative Economy (“MTCE”) Regulation No.

6 of 2020 dated March 6, 2020, regarding Organization of Tourism

Business Certification. This Regulation provides the process for business

tourism certification by the Tourism Business Certification Institution

(Lembaga Sertifikasi Usaha or “LSU”). The certificate will be valid for three

years. This Regulation came into force on the date of its promulgation.


MTCE Circular Letter No. 2 of 2020 dated March 31, 2020, regarding

Follow-Up on Recommendations to Prevent the Spread of Corona Virus

Disease 2019 (COVID-19). This Circular Letter follows up on the

presidential instruction on handling COVID-19. It orders tourism and

creative economy agencies to, among other things, (i) report developments

related to the spread of COVID-19 in their respective regions to the COVI-

D-19 Response Acceleration Task Force; (ii) monitor and report on the

impact of COVID-19 on tourism and the creative economy; (iii)

communicate the Ministry of Health’s standard operating procedures for

handling COVID-19 through social media, print media, radio and other

messaging apps; (iv) coordinate with manpower agencies in putting in

place measures to prevent companies from terminating employees; (v)

ensure employees are paid their salaries in accordance with Minister of

Manpower Circular Letter No. M/3/HK.04/III/2020; (vi) provide support in

the form of staple foods to informal workers at tourism destinations closed

by COVID-19; and (vii) implement measures to protect remuneration for

employees in the tourism and creative economy sector. This Circular Letter

came into force on the date of its issuance.

TRADE Minister of Trade (“MOTr”) Regulation No. 8 of 2020 dated February

10, 2020, regarding Online Single Submission in the Trade Sector. This

Regulation amends provisions of MOTr Regulation No. 77 of 2018

regarding the same matter. It sets out the framework for the application for

and issuance of Business Permits in the trade sector. It provides that there

are two types of Business Permit that may be applicable for a company

engaging in the trade sector, which are (i) Business License (Izin Usaha)

and (ii) Commercial/Operational License (Izin Komersial/Operasional). A

Business License is required for every business actor conducting business

and/or activities in the trade sector. A Commercial/Operational Permit is

required to carry out commercial or operational activities, if required. Annex

I of the Regulation further prescribes the applicable Business Permit,

based on the Indonesian Standard Business Field Classification (KBLI).

This Regulation came into force on the date of its enactment and revokes

MOTr Regulation No. 77 of 2018.

MOTr Regulation No. 15 of 2020 dated February 27, 2020, regarding

Provisions on the Export of Forestry Products. This Regulation provides

several requirements to be met by exporters of forestry products, which

includes (i) licensing, (ii) technical criteria for forestry products to be

exported, (iii) verification or technical tracking of the forestry products to be

exported and (iv) an export realization report. This Regulation came into

force on May 27, 2020, and revokes MOTr Regulation No. 84/M-

DAG/PER/12/2016, as amended several times, lastly by MOTr Regulation

No. 38/M-DAG/PER/6/2017.

MOTr Regulation No. 27 of 2020 dated March 18, 2020, regarding the

Amendment of MOTr Regulation No. 44 of 2019 regarding Provisions on

the Import of Horticulture Products. Under this Regulation, horticulture


products in the form of onions with tariff line/HS 0703.10.19 and garlic with

tariff line/HS 0703.20.90 shipped from the loading port by no later than May

31, 2020, are exempt from import approvals and surveyor reports as

stipulated in MOTr Regulation No. 44 of 2019. The shipment of horticulture

products shall be evidenced by a bill of lading. The provisions of the Annex

to this Regulation are valid until May 31, 2020. This Regulation came into

force on the date of its enactment.


Eighth Amendment of MOTr No. 87/M-Dag/PER/10/2015 regarding

Provisions on the Import of Certain Products. In response to the COVID-

19 pandemic, the government issued this Regulation to exclude several

tariff lines/HS numbers related to, among other goods, antiseptic, raw

materials for face masks, personal protective equipment and masks from

the requirement to have a surveyor report in the country of origin or the port

of loading and restrictions on the port of entry. Therefore, the import of

products as stipulated in this Regulation does not require any licensing and

the shipment of certain products will only need to be proven by a bill of lading.

This exclusion is effective until June 30, 2020. This Regulation came into


MOTr Regulation No. 33 of 2020 dated March 26, 2020, regarding Goods

that May Be Stored in a Warehouse Receipt System. This Regulation sets

forth the requirements for goods that may be stored in a Warehouse

Receipt System, including that they are able to be stored for at least three

months, meet a certain standard quality and fulfill the technical

requirements set forth by the Head of the Trading Regulatory Agency for

Perpetual Commodities. Article 4 of this Regulation further sets forth the

types of goods that may be stored in a Warehouse Receipt System. This

Regulation came into force on the date of its enactment and revokes MOTr

Regulation No. 37/M-DAG/PER/11/2011.


Second Amendment of MOTr No. 118 of 2018 regarding Provisions on the

Import of Second-Hand Capital Goods. In response to the COVID-19

pandemic, the government issued this Regulation to ease the process of

importing certain second-hand capital goods. The products included in the

Annex to this Regulation are exempted from the requirements applicable

for the import of second-hand capital goods as stipulated in MOTr

Regulation No. 118 of 2018. Annex VI of this Regulation lists several

second-hand capital goods relevant to industries producing items for

COVID-19 countermeasures. As opposed to the requirements applicable

under MOTr No. 118 of 2018, such imported goods must simply obtain a

recommendation from the Task Force for the Acceleration of the Handling

of COVID-19 or an appointed official. Further, this Regulation provides that

these second-hand goods which are shipped from the port of loading no

later than June 30, 2020, will be exempted from the requirement to provide

an Import Approval and Surveyor Report. The above provisions are


effective until June 30, 2020. This Regulation came into force on April 2,

2020.

MOTr Regulation No. 40 of 2020 dated April 8, 2020, regarding

Provisions on the Use of National Sea Transportation and National

Insurance for the Export and Import of Certain Goods. This Regulation

provides that exporters of coal and crude palm oil, and importers of rice

and goods for the procurement of government goods, are required to use

national sea transportation and national insurance. However, specifically

for the use of national sea transportation, the obligation only applies to the

use of sea transportation with the capacity of up to 15,000 deadweight

tonnage. This Regulation came into force on May 1, 2020, and revokes

MOTr Regulation No. 82 of 2017, as amended by MOTr Regulation No. 80

of 2018.

TRANSPORTATION

Minister of Transportation (“MOT”) Decision No. KM 4 of 2020 dated

January 15, 2020, regarding Sea Freight Transportation Rates for the

Implementation of the Public Service Obligation in 2020. This Decision sets

forth the rates for sea freight transportation, which is not inclusive of

additional insurance costs for the goods transported. This Decision applies

retroactively from January 1, 2020. It revokes MOT Regulation No. KM. 89

of 2019, as amended by MOT Regulation No. KM 224 of 2019.

MOT Regulation No. PM 10 of 2020 dated February 24, 2020, regarding

Guidelines for the Organization of Public Service Obligations for the

Transportation of Goods on Roads from and to Underdeveloped, Remote,

Outer and Border Areas. This Regulation provides that the transportation

of goods on roads from and to underdeveloped, remote, outer and border

areas shall be carried out by Pioneering Freight Transportation (Angkutan

Barang Perintis) companies. This Regulation came into force on the date

of its enactment.

MOT Decision No. KM 30 of 2020 dated February 5, 2020, regarding the

Amendment of MOT Decision No. KP 432 of 2017 regarding the National

Port Master Plan. This Decision amends MOT Decision No. KP 432 of 2017

by (i) adding 1 Public Terminal in East Nusa Tenggara province and (ii)

changing the total recapitulation of Public Terminals for the years 2017,

2022, 2027 and 2037 to 56 terminals respectively. This Decision came into


MOT Regulation No. PM 18 of 2020 dated April 9, 2020, regarding

Transportation Control in the Context of the Prevention of the Spread of

Corona Virus Disease (COVID-19). In response to the COVID-19

pandemic, the government issued this Regulation to regulate sanitary and

social distancing requirements during the pandemic. This Regulation also

addresses transportation controls in areas implementing social distancing

restrictions. It came into force on the date of its enactment.


This publication is intended for informational purposes only and does not constitute legal advice. Any reliance

on the material contained herein is at the user’s own risk. All SSEK publications are copyrighted and may not

be reproduced without the express written consent of SSEK.

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