LEGAL ALERT APRIL 2015 SSEK Legal Alert is a monthly publication of SSEK, Indonesian Legal Consultants. SSEK’s lawyers, advisors and associates provide a wide range of legal services to Indonesian and multinational corporations, banks, joint ventures and other organisations. SSEK Legal Alert is a monthly survey designed to keep our clients up to date with the latest legal developments in Indonesia. To subscribe, visit our website: www.ssek.com. *** general Presidential Regulation No. 4 of 2015, dated January 16, 2015, regarding the Fourth Amendment of Presidential Regulation No. 54 of 2010 regarding the Procurement of Government Goods/Services. One of the highlighted amendments in this regulation is the provision that the procurement of government goods/services must be done electronically through an e-tendering and e-purchasing system developed by the Government Goods/Services Procurement Assessment Institution (“LKPP”). Other amendments generally hasten and clarify the rules around the procurement of government goods/services. This Regulation came into force on the date of its issuance. banking Bank Indonesia (“BI”) Regulation No. 17/1/PBI/2015, dated January 30, 2015, regarding the Nominal Amount and Value of Rupiah Removed from Circulation. This Regulation stipulates the criteria and procedures for the removal of rupiah from circulation as part of the implementation of clean money policy. It also states that the amount of rupiah removed from circulation shall be published in the State Gazette of the Republic of Indonesia annually. This Regulation came into force on the date of its issuance. Bank Indonesia (“BI”) Circular Letter No. 17/1/DSta, dated January 26, 2015, regarding the Amendment of BI Circular Letter No. 14/31/DPNP dated October 31, 2012 regarding the Reports of Commercial Bank Headquarters. This Circular Letter stipulates that the headquarters of commercial banks in Indonesia shall provide (i) a monthly report on digital financial services development, (ii) a monthly report on digital financial services transactions, (iii) a monthly report on digital financial services agents and (iv) a monthly report on digital financial services issues. They shall also provide information to BI on the profile of payment card organizers. Electronic money issuers must also submit a monthly report on their infrastructure to BI. All reports shall be submitted online at the latest on the 15th day of the following month of each monthly report. This Regulation came into force in January 2015, with the first monthly reports to be submitted in February 2015. Bank Indonesia (“BI”) Circular Letter No. 17/2/DSta, dated January 27, 2015, regarding the Fourth Amendment of BI Circular Letter No. 8/15/DPNP regarding Periodic Reports for Commercial Banks. This Circular Letter provides that if a commercial bank fails to submit a periodic report on time, it shall be required to submit the report to BI on a compact disc or other electronic data-saving instrument, along with a hard copy of the report. This Circular Letter also changes the format of (i) Form 9.i – Calculation of Minimum Capital Provision Obligation Ratio and (ii) Form 9.j – Calculation of Minimum Capital Provision Obligation in Consolidation Ratio. These changes will be applied for reports for the first quarter of 2015, which will be submitted in April 2015. This Circular Letter came into force on the date of its issuance. SSEK legal alert © 1 April 2015 customs and excise Directorate General of Customs and Excise Regulation No. PER-2/BC/2015, dated February 15, 2015, regarding Procedures for the Stockpiling, Entry, Clearance and Transportation of Goods that Are Subject to Duty. Goods that are subject to duty may be stockpiled in the factory if the duty has not been fully paid and the goods are to be used as raw materials or supporting materials for the production of end-products. Factory entrepreneurs, whether non-taxable or taxable entrepreneurs, who stockpile such goods shall comply with the obligations stipulated in this Regulation. This Regulation and its attachment also provide detailed procedures on the entry and clearance of goods that are subject to duty. energy and mineral resources Minister of Energy and Mineral Resources (“MEMR”) Regulation No. 35 of 2014, dated December 24, 2014, regarding the Delegation of Authority to Issue Electricity Business Licenses under the Framework of One-Stop Integrated Services to the Head of the Investment Coordinating Board (“BKPM”). This Regulation provides the legal basis for the Head of the BKPM to issue electricity business licenses on behalf of the Minister of Energy and Mineral Resources. Under the previous regulation, the authority delegated to the Head of the BKPM was only for the issuance of the Principal License regarding facility license, customs approval for importing machinery/equipment, and operational license to use inter-provincial plants for personal use. This Regulation revokes MEMR Regulation No. 5 of 2010. It came into effect on the date of its issuance. Minister of Energy and Mineral Resources (“MEMR”) Regulation No. 1 of 2015, dated January 6, 2015, regarding Cooperation on Electric Power Supply and the Joint Utilization of Electricity Distribution Networks. This Regulation sets guidelines for any entity involved in the electric power supply business regarding: (i) cooperation on electric power supply; (ii) joint utilization and interconnection of the electricity network; and (iii) the purchase of excess power. This Regulation revokes the provision regarding excess power in MEMR Regulation No. 4 of 2012 and came into effect on the date of its issuance. Minister of Energy and Mineral Resources (“MEMR”) Regulation No. 5 of 2015, dated January 20, 2015, regarding the Implementation of National Standards of Occupational Competence in Oil and Gas Business Activities. This Regulation implements 35 standard occupational competences as regulated under several Minister of Manpower and Transmigration regulations. Business entities and permanent establishments involved in oil and gas business activities are required to employ workers who satisfy the applicable standard competences. This Regulation came into effect on the date of its issuance. Presidential Regulation No. 191 of 2014, dated December 31, 2014, regarding the Supply, Distribution and Retail Sale Price of Fuel Oil. This Regulation stipulates that kerosene and diesel are the only types of fuel that shall be subsidized by the government. It also sets out the rules to calculate the base price and retail price of all types of fuel oil. This Regulation revokes Presidential Regulation No. 71 of 2005 and Presidential Regulation No. 15 of 2012 and came into effect on the date of its issuance. Minister of Energy and Mineral Resources (“MEMR”) Regulation No. 39 of 2014, dated December 31, 2014, regarding the Calculation of the Retail Sale Price of Fuel Oil. This Regulation is an implementing regulation of Presidential Regulation No. 191 of 2014. It sets out the calculation of the retail price for certain fuel oils. Through this Regulation, the government limits the subsidy for certain fuel oils at Rp 1,000 per liter at a maximum, SSEK legal alert © 2 April 2015 and stipulates the retail sale price of certain fuel oils and specially assigned fuel oils. This Regulation revokes MEMR Regulation No. 1 of 2013 and MEMR Regulation No. 34 of 2014 and came into force on the date of its issuance. Minister of Energy and Mineral Resources (“MEMR”) Regulation No. 4 of 2015, dated January 16, 2015, regarding the Amendment of MEMR Regulation No. 39 of 2014. This Regulation provides further details for the calculation of the retail price of fuel oils. It also provides the formula to calculate the subsidy per liter of certain fuel oils. This Regulation came into effect on the date of its issuance. environment Minister of the Environment and Forestry Regulation No. P.97/MENHUT-II/2014 of 2014, dated December 24, 2014, regarding the Delegation of Licensing and Non-Licensing Authority in the Environment and Forestry Sectors to the Head of the Indonesian Investment Coordinating Board (“BKPM”) in the Framework of Implementing One-Stop Integrated Service. This Regulation delegates authority related to licensing and non-licensing matters in the environment and forestry sectors from the Minister of the Environment and Forestry to the Head of the BKPM. The concerned licensing and nonlicensing matters are listed in the attachment to this Regulation. This Regulation came into force on the date of its issuance. Minister of the Environment and Forestry Regulation No. P.1/MENHUT-II/2015 of 2015, dated January 30, 2015, regarding the Amendment of Minister of Forestry Regulation No. P.97/MENHUT-II/2014 regarding the Delegation of Licensing and Non-Licensing Authority in the Environment and Forestry Sectors to the Head of the Indonesian Investment Coordinating Board (“BKPM”) in the Framework of Implementing One-Stop Integrated Service. This Regulation, among other changes, amends the list of licensing and non-licensing matters delegated to the Head of the BKPM, as detailed in the attachment to this Regulation. This Regulation came into force on the date of its issuance. finance Minister of Finance Regulation No. 18/PMK.010/2015, dated February 2, 2015, regarding the Types of Catering Services that Are not Subject to Value Added Tax. This Regulation stipulates that catering services that provide food and beverages at a location chosen by the customer (and is equipped with the necessary tools and equipment for such service) are exempt from Value Added Tax. The sale of foods and/or beverages at any other location is not exempt from Value Added Tax. Minister of Finance Regulation No. 19/PMK.08/2015, dated February 3, 2015, regarding the Issuance and Sale of Sharia Sovereign Savings Bonds. This Regulation governs the issuance and sale of Sharia Sovereign Savings Bonds, or Surat Berharga Syariah Negara (“SBSN”) Tabungan, including the mechanisms and required documents for the issuance and sale of the bonds, the appointment of sales agents and legal consultants, the stipulation of sales proceeds, and the allocation, settlement and early redemption of the bonds. SSEK legal alert © 3 April 2015 Minister of Finance Regulation No. 20/PMK.004/2015, dated February 3, 2015, regarding the Third Amendment of Minister of Finance Regulation No. 69/PMK.04/2009 regarding the Suspension of the Payment of Excise for Factory Entrepreneurs or Importers Subject to Excise Who Make Payment Using the Cigarette Revenue Stamp Attachment. This Regulation provides that payment of excise may be suspended for two months for factory entrepreneurs and one month for importers from the date of the cigarette revenue stamp order document. The granting of the suspension of payment of excise may be frozen for a set period of time based on the conditions set out in this Regulation. Minister of Finance Regulation No. 23/PMK.04/2015, dated February 6, 2015, regarding Customs Areas and Temporary Stockpiling Areas. This Regulation revokes Minister of Finance Regulation No. 70/PMK.04/2007 and will come into force 60 days after its promulgation date. This Regulation stipulates that areas in seaports, airports or other places that are used for freight traffic may be stipulated as customs areas and areas for temporary stockpiling. The stipulation of an area as a customs area shall be done by the Head of the Regional Office/Head of the Main Service Office on behalf of the Minister of Finance. The procedures and requirements to apply for the stipulation as a customs area and temporary stockpiling area, as well as the rights and obligations of the temporary stockpiling area entrepreneurs and customs area managers, are stipulated in this Regulation. Minister of Finance Regulation No. 26/PMK.04/2015, dated February 10, 2015, regarding the Amendment of Minister of Finance Regulation No. 76/PMK.03/2013 regarding the Administration of Land and Building Tax for the Oil, Natural Gas and Geothermal Sectors. A Land and Building taxpayer that proposes the termination of a Production Sharing Contract, Authorization and Business License, Geothermal Resources Management Contract, and/or Purchase Agreement for Steam or Electricity shall submit written notification to the Tax Service Office at the latest by the end of the tax year when the termination is proposed. This Regulation mainly provides amendments to the provisions under Minister of Finance Regulation No. 76/PMK.03/2013 on the administration of land and building tax in the oil and gas and geothermal sectors. Minister of Finance Regulation No. 29/PMK.03/2015, dated February 13, 2015, regarding the Elimination of Interest Administrative Sanctions Under Article 19 Paragraph (1) of Law No. 6 of 1983 regarding General Tax Provisions and Procedures, as amended several times, lastly by Law No. 16 of 2009. Taxpayers who have tax payable incurred before January 1, 2015, who pay such tax payable before January 1, 206, who submit an application letter to the Directorate General of Tax (“DGT”) and who satisfy the conditions set out in this Regulation will be granted a waiver for the unpaid sanction. The annulment of administrative sanctions can also be done on the authority of the DGT, subject to the conditions provided in this Regulation. SSEK legal alert © 4 April 2015 financial services authority Financial Services Authority (“OJK”) Regulation No. 32/POJK.04/2014, dated December 8, 2014, regarding the Planning and Implementation of General Meeting of Shareholders of Public Companies. This Regulation revokes Capital Market Supervisory Board (Badan Pengawas Pasar Modal dan Lembaga Keuangan or “BAPEPAM-LK”) Regulation No. IX.I.1 regarding the Planning and Implementation of General Meeting of Shareholders. This Regulation provides the procedures for a General Meeting of Shareholders (“GMS”), including provisions on: (i) shareholders who can propose and attend the GMS, (ii) the disclosure of the GMS agenda, (iii) announcement and notice of GMS, (iv) quorum to approve a GMS resolution, (v) location of GMS, and (vi) disclosure of the minutes of GMS. Within one year of the issuance of this Regulation, issuers or public companies must amend their Articles of Association to comply with this Regulation (i.e., December 8, 2015). This Regulation came into force on the date of its issuance. Financial Services Authority (“OJK”) Regulation No. 33/POJK.04/2014, dated December 8, 2014, regarding Directors and Commissioners of Issuers or Public Companies. This Regulation revokes Capital Market Supervisory Board (Badan Pengawas Pasar Modal dan Lembaga Keuangan or “BAPEPAM-LK”) Regulation No. IX.I.6 regarding Directors and Commissioners of Issuers or Public Companies. This Regulation sets out the requirements of the Board of Directors (“BOD”) and Board of Commissioners (“BOC”) of public companies, as well as procedures to nominate members of the BOD and BOC. Issuers and public companies have one year from the enactment of this Regulation to comply with its provisions (i.e., December 8, 2015). This Regulation came into force on the date of its issuance. Financial Services Authority (“OJK”) Regulation No. 34/POJK.04/2014, dated December 8, 2014, regarding Nomination and Remuneration Committee of Issuers and Public Companies. This Regulation provides that the Board of Commissioners (“BOC”) of issuers or public companies can form a Nomination and Remuneration Committee to help the BOC in proposing candidates for the Board of Directors (“BOD”) and BOC and determining the remuneration for BOD and BOC members. The committee shall consist of a minimum three members with one independent commissioner as the chairman of the committee. Issuers and public companies have one year from the enactment of this Regulation to comply with its provisions (i.e., December 8, 2015). This Regulation came into force on the date of its issuance. Financial Services Authority (“OJK”) Regulation No. 35/POJK.04/2014, dated December 8, 2014, regarding Corporate Secretary of Issuers and Public Companies. This Regulation revokes Capital Market Supervisory Board (Badan Pengawas Pasar Modal dan Lembaga Keuangan or “BAPEPAM-LK”) Regulation No. IX.I.4 regarding Corporate Secretary. This Regulation provides that a company shall appoint a corporate secretary, either an individual or business unit, that shall be responsible to the Board of Directors. The appointment and termination of a corporate secretary shall be conveyed to the OJK no longer than two days after the appointment or termination. Issuers and public companies have six months from the issuance of this Regulation to comply with its provisions (i.e., June 8, 2015). This Regulation came into force on the date of its issuance. Financial Services Authority (“OJK”) Regulation No. 36/POJK.04/2014, dated December 8, 2014, regarding Shelf Registration of Bonds and Sukuk. This Regulation revokes Capital Market Supervisory Board (Badan Pengawas Pasar Modal dan Lembaga Keuangan “BAPEPAM-LK”) Regulation No. IX.A.15. Under this Regulation, an issuer may cancel a shelf public offering before the end of the shelf offering period, i.e. two years from the date of the effective registration statement. This Regulation came into force on the date of its issuance. SSEK legal alert © 5 April 2015 Financial Services Authority (“OJK”) Regulation No. 37/POJK.04/2014, dated December 8, 2014, regarding Collective Investment Contract in Limited Participation Investment Fund. This Regulation provides that participation units for limited participation investment funds may be offered to and purchased by professional investors only and may not be offered through a public offering. This Regulation also stipulates the requirement for any investment manager who executes the management of a limited participation investment fund. This Regulation came into force on the date of its issuance. Financial Services Authority (“OJK”) Regulation No. 38/POJK.04/2014, dated December 30, 2014, regarding Increase of Capital in Issuers Without Pre-emptive Rights. This Regulation revokes Capital Market Supervisory Board (Badan Pengawas Pasar Modal dan Lembaga Keuangan or “BAPEPAM-LK”) Regulation No.IX.D.4 regarding Increase of Capital in Issuers Without Pre-emptive Rights. This Regulation sets out the procedure to increase a public company’s capital without pre-emptive rights through the approval of a General Meeting of Shareholders and disclosure to the public. It came into force on the date of its issuance. Financial Services Authority (“OJK”) Regulation No. 39/POJK.04/2014, dated December 30, 2014, regarding Investment Fund Sales Agents. This Regulation provides the requirements and duties for investment fund sales agents, including the requirement that agents enter into a cooperation contract with the investment manager as the manager of the investment fund. Any investment fund sales agent who violates the provisions in this Regulation may be subject to sanctions in the form of written reprimands, penalties, restrictions on business activities, license revocation, approval cancellation and registration cancellation. This Regulation came into force on the date of its issuance. Financial Services Authority (“OJK”) Circular Letter No. 2/SEOJK.05/2015, dated January 29, 2015, regarding Pension Fund Risk Assessment. This Circular Letter provides the format and procedures for the submission of risk assessment reports and follow-up plans. The OJK provides an online system to ease the submission of such reports and follow-up plans. This Circular Letter came into force on the date of its issuance. forestry Minister of Environment and Forestry Regulation No. P.103/MENHUT-III/2014, dated December 31, 2014, regarding the Work Plan for the Utilization of Non-Timber Forest Products in Natural Forests or Plant Forests. This Regulation provides that the holder of a business license for the Utilization of Non-Timber Forest Products in Natural Forests or Plant Forests (Izin Usaha Pemanfaatan Hasil Hutan Bukan Kayu dalam Hutan Alam atau Hutan Taman or “IUPHHBK-HA/HT”) is obliged to arrange a long-term Work Plan for the Utilization of Non-Timber Forest Products in Natural Forests or Plant Forests (Rencana Kerja Usaha Pemanfaatan Hasil Hutan Bukan Kayu dalam Hutan Alam atau Hutan Taman or “RKUPHHBK-HA/HT”) no later than one year after the IUPHHBK-HA/HT is granted. The draft RKPUHHBK-HA/HT shall be submitted to the authorized official to be assessed. Failure to comply will result in sanctions in accordance with the statutory provision. This Regulation came into effect on the date of its issuance. SSEK legal alert © 6 April 2015 industry Minister of Industry Regulation No. 122/M-IND/PER/12/2014, dated December 15, 2014, regarding the Delegation of Licensing Authority in the Industrial Sector in the Framework of Integrated One-Door Service to the Head of the Indonesian Investment Coordinating Board (“BKPM”). This Regulation lists those business licenses that the Head of the BKPM may issue on behalf of the Minister of Industry. This Regulation revokes and replaces Minister of Industry Regulation No. 147/M-IND/PER/10/2009 as amended by Minister of Industry Regulation No. 16/M-IND/PER/2/2010, and came into force on the date of its issuance. land Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency (“MOA”) Regulation No. 15 of 2014, dated December 30, 2014, regarding Technical Guidance for the Implementation of One-Stop Integrated Service in the field of Agrarian Affairs and Spatial Planning for Investment Activities. This Regulation provides for onestop integrated service for the administration of agrarian affairs and spatial planning for the purpose of investment, which shall be overseen by the assigned representative of the MOA. It also provides the duties of the MOA representative in managing the onestop integrated investment services. This Regulation came into effect on the date of its issuance. Minister of Agrarian Affairs and Spatial Planning/Head of National Land Agency (“MOA”) Regulation No. 2 of 2015, dated February 4, 2015, regarding Service and Management Standards for Agrarian, Spatial, Planning and Land Affairs for Investment Purposes. This regulates the implementation of service and management standards for agrarian, spatial, planning and land affairs within the framework of one-stop integrated investment services at the Indonesian Investment Coordinating Board. This Regulation sets standards for public services provided in relation to investment activities. It came into effect on the date of its issuance. manpower Governor of DKI Jakarta Regulation No. 20 of 2015, dated February 2, 2015, regarding Industrial Sector Minimum Wages for the Year 2015. This Regulation sets the minimum wages applicable for occupations in certain sectors (e.g., construction and public works, automotive, retail, telecommunications, etc.) in DKI Jakarta Province. Employers whose business is categorized as one of the sectors under this Regulation are prohibited to pay employees less than the sectoral minimum wage stipulated in the attachment to this Regulation. This Regulation entered into force on January 1, 2015. Governor of DKI Jakarta Decree No. 133 of 2015, dated January 30, 2015, regarding Foreigners, Foreign Public Organizations and Foreign Worker Observation Team (“Observation Team”). This Decree implements Article 5(2) of Governor of DKI Jakarta Regulation No. 135 of 2012 regarding the Procedures to Observe Foreigners, Foreign Public Organizations and Foreign Workers in DKI Jakarta. The Observation Team is granted the authority to verify the activities of any foreigner/foreign worker in DKI Jakarta, through either research or on-site reviews. It is also authorized to issue a written recommendation to the relevant authorities (e.g., immigration authorities) to take certain measures if any violations are found. This Decree came into force on the date of its stipulation. SSEK legal alert © 7 April 2015 maritime affairs and fisheries Minister of Maritime Affairs and Fisheries Regulation No. 1/PERMEN-KP/2015, dated January 7, 2015, regarding the Capture of Lobsters (Panulirus), Crabs (Scylla) and Small Crabs (Porturus pelagicus). The Regulation establishes size limits for the lobsters and crabs that can be captured by individuals and corporations. An attachment to this Regulation contains the standard method to measure lobster and crabs. This Regulation came into effect on the date of its issuance. Minister of Maritime Affairs and Fisheries Regulation No. 2/PERMEN-KP/2015, dated January 9, 2015, regarding the Prohibition of the Use of Trawls and Seine Nets in the Republic of Indonesia. This Regulation prohibits the use of trawls and seine nets in fishing activities conducted by individuals or corporations. This Regulation lists the fishing equipment that is classified as trawls and seine nets. It came into effect on the date of its issuance. Minister of Maritime Affairs and Fisheries Regulation No. 3/PERMEN-KP/2015, dated January 15, 2015, regarding the Delegation of the Authority to Issue Fish Cultivation Business License in the Framework of the Implementation of Integrated OneDoor Service to the Head of the Indonesian Investment Coordinating Board (“BKPM”). This Regulation delegates the authority to issue the Fish Cultivation Business License (Surat Izin Usaha Perikanan pembudidayaan ikan or “SIUP”) to the Head of the BKPM. It stipulates that the Head of the BKPM still requires a technical recommendation from the Minister of Maritime Affairs and Fisheries for the issuance of the license. This Regulation revokes Minister of Maritime Affairs and Fisheries Regulation No. 49/PERMEN-KP/2014 and Minister of Maritime Affairs and Fisheries Regulation No. PER.30/MEN/2009. It came into effect on the date of its issuance. Minister of Maritime Affairs and Fisheries Regulation No. 4/PERMEN-KP/2015, dated January 15, 2015, regarding Prohibition on Fishing in Fishery Cultivation Area 714 of the Republic of Indonesia. This Regulation was issued to protect fish breeding and spawning grounds by prohibiting fishing activity in Area 714, the coordinates of which are attached to this Regulation. This Regulation revokes Articles 23 and 24 of Minister of Maritime Affairs and Fisheries Regulation No. PER. 02/MEN/2011 as amended by Minister of Maritime Affairs and Fisheries Regulation No. 42/PERMEN-KP/2014. It came into effect on the date of its issuance. public works Minister of Public Works and Housing Regulation No. 22/PRT/M2014, dated December 31, 2014, regarding the Delegation of Authority to Issue Business Licenses in the Field of Public Works and Housing in the Framework of One-Stop Service Implementation to the Indonesian Investment Coordinating Board (Badan Koordinasi Penanaman Modal or “BKPM”). This Regulation delegates the authority of the Minister of Public Works and Housing to grant business licenses for foreign capital investment companies engaging in production and commercial operations to the BKPM. This Regulation revokes Minister of Public Works Regulation No. 24/PRT/M/2009 regarding the Delegation of Authority to Grant Business Licenses in the Field of Public Works and Housing in the Framework of One-Stop Service Implementation to the BKPM, and Minister of Public Housing No. 06/PERMEN/M/2009 regarding the Delegation of Authority to Grant Business Licenses in the Field of Public Works and Housing in the Framework of One-Stop Service Implementation to the BKPM. This Regulation came into force on the date of its stipulation. SSEK legal alert © 8 April 2015 state-owned enterprises Minister of State-Owned Enterprises Regulation No. PER-02/MBU/02/2015, dated February 18, 2015, regarding the Requirements and Procedures for the Appointment and Dismissal of Members of the Board of Commissioners and Supervisory Board of State-Owned Enterprises. This Regulation seeks to apply the principles of professionalism and good corporate governance in the appointment and dismissal of members of the Board of Commissioners and Supervisory Board of state-owned enterprises, with the requirements and procedures set out in the attachment to this Regulation. It revokes and replaces Minister of State-Owned Enterprises Regulation No. PER-19/MBU/10/2014 as amended by Minister of Stated-Owned Enterprises Regulation No. PER-21/MBU/11/2014, and came into force on the date of its issuance. Minister of State-Owned Enterprises Regulation No. PER-03/MBU/02/2015, dated February 18, 2015, regarding the Requirements and Procedures for the Appointment and Dismissal of Members of the Board of Directors of State-Owned Enterprises. The attachment to this Regulation sets forth the requirements and procedures to appoint and dismiss a member of the Board of Directors of a state-owned enterprise. This Regulation came into force on the date of its issuance. tax Governor of DKI Jakarta Regulation No. 263 of 2014, dated December 30, 2014, regarding the Classification and Stipulation of Tax Object Sale Value (“NJOP”) as a Basis for the Imposition of Village and Municipality Land and Building Tax (“PBB-P2”). For the purpose of determining the PBB-P2 payable to a person or entity owning, controlling and/or utilizing land and/or a building, this Regulation classifies and sets out the amount of NJOP for land and buildings within DKI Jakarta Province. This Regulation revokes and replaces DKI Jakarta Governor Regulation No. 200 of 2012 and came into force on the date of its issuance. Governor of DKI Jakarta Regulation No. 204 of 2014, dated December 19, 2014, regarding Electronic Receipt in the Regional Tax System. This Regulation establishes a framework where the payment of regional taxes will be received by the DKI Jakarta Regional Government through an electronic system. The Governor shall appoint banks who will receive regional taxes, subject to the requirements and procedures for appointment provided in this Regulation. This Regulation came into force on the date of its issuance. telecommunications Minister of Communications and Information Technology No. 8 of 2015, dated February 12, 2015, regarding the Fourth Amendment of Minister of Transportation Decree No. 21 of 2001 regarding the Implementation of Telecommunication Services. This Regulation delegates the authority to issue principle licenses and telecommunication service licenses to the Directorate General of Post and Telecommunications. It sets out the procedures for telecommunication service providers to obtain licenses. This Regulation came into effect on the date of its issuance. SSEK legal alert © 9 April 2015 tourism Minister of Tourism Regulation No. 4 of 2015, dated December 30, 2014, regarding the Sixth Amendment of Minister of Culture and Tourism Regulation No. PM. 55/PW.204/ MKP/2008 regarding the Utilization of Domestic Film Technical Services in National Film Production and Duplication Activities and for the Duplication of Imported Film. This Regulation changes the effective date of the 2008 Regulation, which previously was on January 1, 2015, to January 1, 2016. This Regulation came into effect on the date of its issuance. Minister of Tourism Regulation No. 1 of 2015, dated January 23, 2015, regarding the Amendment of Minister of Tourism Regulation No. 2 of 2014 regarding the Implementation of One-Stop Integrated Service in the Field of Tourism and Creative Economy to the Investment Coordinating Board (“BKPM”). This Regulation amends the attachment of the previous regulation, which contains the business fields whose business licensing authority has been delegated to the Head of the BKPM. This Regulation came into effect on the date of its issuance. trade Minister of Trade Regulation No. 90/M-DAG/PER/12/2014, dated December 18, 2014, regarding the Arrangement and Management of Warehouses. This Regulation aims to ensure business certainty and encourage the expeditious distribution of goods for the purpose of export and import activities. This Regulation provides a detailed classification of warehouses and the requirements for warehouse owners to obtain a Warehouse Registration Certificate (Tanda Daftar Gudang or “TDG”). This Regulation also obliges warehouse administrators to report warehouse administration records to the Director General of Trade. Another important provision is that warehouses located in bonded zones and warehouses used for the temporary storage of retail traded goods are exempted from this Regulation. This Regulation revokes Minister of Trade Regulation No. 16/M-DAG/PER/3/2006 and came into effect on the date of its issuance. Minister of Trade Regulation No. 96/M-DAG/PER/12/2014, dated December 24, 2014, regarding the Delegation of Authority to Issue Trade Business Licenses under the Framework of One-Stop Integrated Services to the Head of the Capital Investment Coordinating Board (“BKPM”). This Regulation sets out the delegation of authority from the Minister of Trade to the Head of the BKPM for issuing trade-related licenses specifically for foreign investors and/or businesses whose activities are inter-provincial in nature. The types of licenses delegated under this Regulation are: Business License for Foreign Representative Trading Companies; Approval to Organize an International Trade Exhibition, Convention and/or Seminar; Business License for Direct Selling; and General Importer Identification Number and Producer Importer Identification for investment companies that are issued by the Minister. This Regulation revokes Minister of Trade Regulation No. 55/M-DAG/PER/10/2009 and Minister of Trade Regulation No. 01/M-DAG/PER/1/2012 and came into force on the date of its issuance. Minister of Trade Regulation No. 01/M-DAG/PER/1/2015, dated January 2, 2015, regarding the Stipulation of the Purchase Price of Farmers’ Soybeans in the Framework of Securing the Price of Soybeans at the Level of Farmers. This Regulation sets the purchase price of soybeans at Rp 7,700/kilogram. This price shall be applicable for the harvest period as of January 5 until Mach 31 of 2015. This Regulation came into effect on January 5, 2015. SSEK legal alert © 10 April 2015 Minister of Trade Regulation No. 02/M-DAG/PER/1/2015, dated January 2, 2015, regarding the Third Amendment of Minister of Trade Regulation No. 29/M-DAG/ PER/6/2013 regarding the Verification or Technical Inquiry of Exports of Crude Palm Oil and Its Derivative Products. This Regulation amends the effective date of the 2013 Regulation. It stipulates that the effective date will be January 5, 2016. This Regulation came into effect on January 2, 2015. Minister of Trade Regulation No. 04/M-DAG/PER/1/2015, dated January 5, 2015, regarding Provisions on the Use of Letter of Credit for Exporting Certain Commodities. The purpose of this Regulation is to optimize foreign-exchange gains from export activities by ensuring payment certainty for exported natural resources. This Regulation affirms that a letter of credit is the mandatory payment instrument for exporting the following natural resources as provided in the attachment of this Regulation: mineral products, coal products, oil and gas products, and crude palm oil products. This Regulation came into effect on April 1, 2015. Minister of Trade Regulation No. 06/M-DAG/PER/1/2015, dated January 16, 2015, regarding the Second Amendment of Minister of Trade Regulation No. 20/M-DAG/ PER/4/2014 regarding the Control and Supervision of the Supply, Distribution and Sale of Alcoholic Beverages. The aim of this Regulation is to limit the circulation of alcoholic beverages by restricting the types of shops that can sell Class A alcoholic beverages. This Regulation came into effect on the date of its issuance. Minister of Trade Regulation No. 07/M-DAG/PER/1/2015, dated January 16, 2015, regarding the Amendment of Minister of Trade Regulation No. 78/M-DAG/PER/10/2014 regarding Provisions on the Import of Forestry Products. This Regulation amends the effective date of the 2014 Regulation, stipulating that the effective date will be September 1, 2015. This Regulation came into force on the date of its issuance. Minister of Trade Regulation No. 18/M-DAG/PER/2/2015, dated February 26, 2015, regarding the Stipulation of the Benchmark Export Price for Agricultural and Forestry Products Subject to Export Duty. This Regulation stipulates several matters, including: (i) the benchmark export price for crude palm oil, timber and cocoa; (ii) export duty for crude palm oil; and (iii) the list of RBD palm olein brands. The list of benchmark export prices for each commodity is provided in the attachment of this Regulation. This Regulation revokes Minister of Trade Regulation No. 08/M-DAG/PER/1/2015 and came into effect on March 1, 2015. Minister of Trade Regulation No. 19/M-DAG/PER/2/2015, dated February 26, 2015, regarding the Stipulation of the Benchmark Price for Processed Mining Products Subject to Export Duty. This Regulation stipulates that the export benchmark price shall be based on the highest average price of international exchange, free on board, domestic market or the importing country of the processed mining product. The benchmark price shall be used as the basis for stipulating the export price for export duty by the Minister of Finance. This Regulation stipulates the detailed benchmark price for each product included in the attachment. This Regulation revokes Minister of Trade Regulation No. 09/M-DAG/PER/1/2015 and came into effect on March 1, 2015. transportation Minister of Transportation Regulation No. 10 of 2015, dated January 21, 2015, regarding the Second Amendment of Minister of Transportation Regulation No. 10 of 2014 regarding the Procedures and Requirements for the Issuance of the License to Use Foreign-Flagged Vessels for Activities Other than Domestic Transportation of Persons and/or Goods. This Regulation governs the types of activities in Indonesian waters that are exempted from the cabotage principle, allowing for the use of foreign- flagged vessels SSEK legal alert © 11 April 2015 after obtaining an IPKA (Izin Penggunaan Kapal Asing). The highlights of this Regulation include a new validity period for the IPKA (from six months, extendable, to a maximum of one year). Further, certain activities other than drilling that could only be conducted using foreign-flagged vessels until the end of 2014 under Minister of Transportation Regulation No. 10 of 2014 are now eligible to obtain an IPKA for a maximum period of one year. Minister of Transportation Regulation No. 18 of 2015, dated February 6, 2015, regarding the Obligation of Commercial Aviation Business Entities to Submit Financial Reports. Business entities that already hold a commercial air transportation business license and have carried out activities shall submit an annual financial report to the Minister of Transportation and attach an operational performance report and relevant supporting data. The minimum contents of the financial report are set forth under this Regulation. Failure to comply with this obligation will result in administrative sanctions. Minister of Transportation Regulation No. 37 of 2015, dated February 13, 2015, regarding Service Standards for Sea Transportation Passengers. This Regulation governs service standards in terminals and on board vessels. Service providers have six months from February 17, 2015 to comply with the standards set out in this Regulation. Minister of Transportation Regulation No. 43 of 2015, dated February 18, 2015, regarding Concessions and Other Forms of Cooperation between the Government and Airport Business Entities for the Provision of Airport Services. This Regulation governs the types of services that can be provided in cooperation with the government, including the management and construction of new airports and the management of existing facilities for the landing, takeoff, parking and storage of planes. Cooperation with the government for the construction of new airports can be based on solicited or unsolicited projects. Minister of Transportation Regulation No. 45 of 2015, dated February 24, 2015, regarding Requirements for Shares Ownership in a Business Entity that Engages in the Transportation Sector. This Regulation sets out the minimum authorized capital and/or issued capital for business entities that engage in the shipping, aviation and railway sectors. Business entities shall meet the minimum capital requirement under this Regulation to obtain the necessary licenses to operate. Violation of the minimum capital requirements will be subject to administrative sanction. This Regulation applies for applications for new licenses filed after the promulgation date of this Regulation and for ongoing applications. Business entities that already obtained licenses set forth under this Regulation shall adjust to the minimum capital requirement within three years of the promulgation date of this Regulation. Minister of Transportation Regulation No. 51 of 2015, dated February 24, 2015, regarding the Administration of Sea Transportation. This Regulation revokes Minister of Transportation Decree No. 54 of 2002 regarding the Administration of Sea Transportation. The matters governed under this Regulation include government port activities, the duties and responsibilities of port authorities and harbormasters, Port Administration Unit, the provision of ship, cargo and passenger services, the provision of services related to ports, Port Business Entities, port locations, the work environment at ports, the construction of new ports, the development and operation of ports, the stipulation of the location, construction and operation of areas on land and in waters that serve as ports, and the stipulation of ports that are open for foreign trade. The attachments of this Regulation provide the forms to be used to obtain the necessary licenses regarding the aforesaid matters. SSEK legal alert © 12 April 2015
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