■ BANK INDONESIA

Updated guidelines on implementation of BI-RTGS System

Bank Indonesia (“BI”) Members of the Board of Governors Regulation No. 24/5/PADG/2022 regarding the Fifth Amendment of BI Members of the Board of Governors Regulation No. 20/15/PADG/2018 regarding the Implementation of Instant Fund Settlement Through the Bank Indonesia-Real Time Gross Settlement (“BI-RTGS”) System

Enacted and came into force on May 13, 2022

This Regulation amends the guidelines for the implementation of the BI-RTGS System. Specifically, it amends Appendixes VII, VIII, and IX, which address the operational hours of the BI-RTGS System, the list of transaction type codes, and transaction types, codes, and procedures for the completion of Treasury Single Account transactions.

With the issuance of this Regulation, the provisions regarding:

1. the deadline for Bank Indonesia-Fast Payment (“BI-FAST”) top-up transactions through the BI-RTGS system; and
2. the transaction code for BI-Fast top-up transactions through the BI-RTGS system,

are applicable beginning June 20, 2022. Otherwise, the provisions of this Regulation apply beginning May 13, 2022.

Transactions through the foreign exchange market

BI Regulation No. 24/7/PBI/2022 regarding Transactions Through the Foreign Exchange Market

Enacted on June 30, 2022, and came into force on July 4, 2022

This Regulation stipulates the types of transactions that are recognized as transactions through the foreign exchange market, the parties permitted to carry out transactions through the foreign exchange market, and various prohibitions on banks during transactions through the foreign exchange market.

This Regulation revokes the following BI Regulations:

1. BI Regulation No. 10/38/PBI/2008 regarding the Amendment of BI Regulation No.

7/31/PBI/2005 regarding Derivative Transactions; ii.           BI Regulation No. 15/8/PBI/2013 regarding Bank Hedging Transactions;

iii.             BI Regulation No. 18/2/PBI/2016 regarding Hedging Transactions Based on Sharia

Principles; iv. BI Regulation No. 18/18/PBI/2016 regarding Foreign Exchange Transactions Against Rupiah between Banks and Domestic Parties;

1. BI Regulation No. 18/19/PBI/2016 regarding Foreign Exchange Transactions Against

Rupiah between Banks and Foreign Parties; and vi. BI Regulation No. 20/10/PBI/2018 regarding Domestic Non-Deliverable Forward Transactions.

Guidelines on the implementation of payment systems

BI Members of the Board of Governors Regulation No. 24/7/PADG/2022 regarding the Implementation of Payment Systems by Payment System Service Providers (Penyedia Jasa

Pembayaran or “PJP”) and Payment System Infrastructure Organizers (Penyedia Infrastruktur Sistem Pembayaran or “PIP”)

Enacted on June 30, 2022, and came into force on July 1, 2022

This Regulation sets the guidelines for the implementation of payment systems by PJPs and PIPs, including the licensing of PJPs and the appointment of PIPs, technological innovation in payment systems, supervision of payment systems, and self-regulatory organizations.

This Regulation revokes the following BI regulations and circular letters relating to the implementation of payment systems:

1. BI Circular Letter No. 11/10/DASP of 2009 regarding the Organization of Payment

System Activities Through the Utilization of Cards, as amended several times; ii. BI Circular Letter No. 13/7/DASP of 2011 regarding Self-Regulatory Organizations

Within the Payment System Sector; iii. BI Circular Letter No. 14/27/DASP of 2012 regarding Mechanisms for Credit Card

Ownership Adjustments; iv. Provisions on fund transfer licensing, as addressed by BI Circular Letter No.

15/23/DASP of 2013 regarding the Organization of Fund Transfers;

1. BI Circular Letter No. 16/11/DKSP of 2014 regarding the Organization of Electronic

Money, as amended; vi.        BI Circular Letter No. 18/22/DKSP of 2016 regarding Digital Financial Services;

vii.             BI Circular Letter No. 18/41/DKSP of 2016 regarding the Organization of Payment

Transaction Processing; viii. BI Members of the Board of Governors Regulation No. 19/14/PADG/2017 regarding the Regulatory Sandbox for Financial Technologies; and

1. BI Members of the Board of Governors Regulation No. 19/15/PADG/2017 regarding Procedures for Registrations, Information Submissions and the Observation of Financial Technology Organizers.

Implementation of transactions through the foreign exchange market

BI Members of the Board of Governors Regulation No. 24/10/PADG/2022 of 2022 regarding the Implementation of Transactions Undertaken Through the Foreign Exchange Market

Enacted and came into force on July 4, 2022

This is an implementing regulation for BI Regulation No. 24/7/PBI/2022 regarding Transactions Through the Foreign Exchange Market. It, among other things, further stipulates the obligations and prohibitions for banks engaging in any transaction through the foreign exchange market.

This Regulation revokes the following BI regulations and circular letter:

1. BI Circular Letter No. 7/45/DPD of 2005 regarding Derivative Transactions, as amended;
2. BI Members of the Board of Governors Regulation No. 20/16/PADG/2018 regarding

Foreign Exchange Transactions Against Rupiah Between Banks and Domestic

Parties; and iii. BI Members of the Board of Governors Regulation No. 20/17/PADG/2018 regarding Foreign Exchange Transactions Against Rupiah Between Banks and Foreign Parties.

Implementation of Domestic Non-Deliverable Forward transactions

BI Members of the Board of Governors Regulation No. 24/11/PADG/2022 of 2022 regarding Domestic Non-Deliverable Forward (“DNDF”) Transactions

Enacted and came into force on July 4, 2022

This is another implementing regulation for BI Regulation No. 24/7/PBI/2022 regarding Transactions Through the Foreign Exchange Market. It regulates the implementation of DNDF transactions, an alternative hedging transaction in the foreign exchange market. This is one of the types of transactions that may be carried out in the domestic foreign exchange market under BI Regulation No. 24/7/PBI/2022 regarding Transactions Through the Foreign Exchange Market.

Updated provisions on the implementation of incentives for banks providing funding for certain inclusive economic activities

BI Members of the Board of Governors Regulation No. 24/12/PADG/2022 regarding the Amendment of BI Members of the Board of Governors Regulation No. 24/4/PADG/2022 regarding the Implementation of Incentives for Banks Providing Funding for Certain Inclusive Economic Activities

Enacted on July 20, 2022, and came into force on September 1, 2022

This Regulation amends Articles 2, 4, 6, 10, and 11, and the Appendixes of BI Members of the Board of Governors Regulation No. 24/4/PADG/2022. Among other things, it extends the list of priority sectors for the provision of incentives, adjusts the criteria for banks to secure incentives, and increases the maximum amount of incentives.

These changes shall apply for the incentive period beginning in September 2022.

■ CENTRAL GOVERNMENT

New regulation on the creative economy

Government Regulation No. 24 of 2022 regarding Implementation of Law No. 24 of 2019 regarding the Creative Economy

Enacted on July 2, 2022, and comes into force one year from the date of promulgation

This is an implementing regulation for Law No. 24 of 2019 dated October 24, 2019, regarding the Creative Economy. It aims to support the creative economy, which is defined as the embodiment of added value from intellectual property sourced from human creativity based on cultural, scientific, and/or technological heritage.

This regulation introduces various initiatives aimed at helping creative economy actors, including (a) IP financing; (b) the development of marketing systems for IP-based, creative economy products; and (c) incentives for creative economy actors.

Creative economy actors can apply to bank or non-bank financial institutions for IP financing if, among other things, they have a creative economy business or engagements related to IP products, and a registration letter or intellectual property certificate.

Bank and non-bank institutions can use intellectual property as an object of debt guarantee. The government will provide access to data on IP which is used as an object of debt guarantee to bank financial institutions or non-bank financial institutions and the public. Other forms of incentive may also be provided by the government (e.g., licensing, franchising, joint branding, and fiscal incentives). 

■ COMMUNICATIONS AND INFORMATION TECHNOLOGY

Deadline for registration of ESPs

Minister of Communication and Informatics (“MOCI”) Circular Letter No. 3 of 2022 regarding the Effective Date of Registration for Private Electronic System Providers

Enacted and came into force on June 14, 2022

This Circular Letter sets a new deadline of July 20, 2022 for private Electronic System

Providers (“ESPs”) to register, which was unclear under Regulation No. 5 of 2020 regarding Private Scope Electronic System Providers, as amended by MOCI Regulation No. 10 of 2021

(“MOCI Reg. 5/2020”). This means that:

1. both foreign and domestic private ESPs that are subject to registration in accordance with MOCI Reg. 5/2020 must comply with the registration requirement; and
2. domestic ESPs that registered before the issuance of MOCI Reg. 5/2020 must reregister in the OSS system.

The MOCI is monitoring, evaluating and supervising private ESPs for compliance with the registration requirement.

■ ENERGY AND MINERAL RESOURCES

Business licensing in the mineral and coal mining sector

Minister of Energy and Mineral Resources Circular Letter No. 1.E/HK.03/MEM.B/2022 regarding Guidelines for Implementing Presidential Regulation No. 55 of 2022 regarding the Delegation of the Issuance of Business Licensing in the Mineral and Coal Mining Secto

Enacted and came into force on June 29, 2022

This Circular contains guidelines for the delegation of licensing authority in the mineral and coal mining sector from the central government to provincial governments. To be issued a Mineral and Coal Mining Business License the following conditions must be met:

• The legal entity must have a Business Identification Number (“NIB”) in accordance with the Indonesian Standard Classification of Business Fields (“KBLI”) applicable in the related business field;
• The business license must be granted electronically through the integrated Online

Single Submission (“OSS”) licensing system; and

• If the OSS system is not available, then the license must be issued through an available electronic system operated by the relevant local government.

Until the process of delegating licensing authority to local governments is completed, the following matters will still be processed by the central government: 

• Change of Mining Business Permit (Izin Usaha Pertambangan or “IUP”) from the exploration stage to the production operation stage;
• Extension of IUP for the production operation stage; and
• Approval of certain matters (e.g., feasibility studies, annual work and expenditure plans).
  

Guidelines for mining business permits 

Director General of Mineral and Coal Decree No. 176.K/MB.01/DJB/2022 regarding

Guidelines for the Preparation, Evaluation, and Approval of Feasibility Study Report  Documents for Mining Business Permits for Rock Commodities with a Maximum Area of 50 Hectares and Mining Plan Documents for Rock Mining Permit

Enacted and came into force on June 17, 2022

Under MEMR Regulation No. 7 of 2020, dated March 6, 2020, regarding Procedures for Granting Area, Licensing, and Reporting for Mineral and Coal Mining Business Activities, an IUP holder is required to prepare an exploration report and a feasibility study for rock commodities.

This Decree contains guidelines for the preparation, evaluation, and approval of the feasibility study for a rock commodity mining business permit (IUP) with a maximum area of 50 hectares and a mining plan document for a rock mining permit.

The formats and procedures for the feasibility report are further provided in the Appendices of the Decree.

■ FORESTRY 

Plans for the rehabilitation of forest and watershed

Minister of Forestry and Environment Regulation No. 10 of 2022 regarding Preparation of General Plans for the Rehabilitation of Forest and Watershed and Annual Plans for Forest and Land Rehabilitation

Enacted and came into force on July 22, 2022

This Regulation includes provisions on the preparation of General Plans for Forest and Land Rehabilitation (Rehabilitasi Hutan dan Lahan) in Watershed Areas (Rencana Umum RHL Daerah Aliran Sungai) as well as Annual RHL Plans.

Parties that have Right to Manage (Hak Pengelolaan) land titles, business licenses for the utilization of forest areas, approvals for the use of forest areas, or approvals for the release of forest areas are required to draft and determine Annual Forest Rehabilitation Plans one year before the implementation of forest and land rehabilitation activities.

Standards for forest management technical personnel

Minister of Environment and Forestry Regulation No. 11 of 2022 regarding the Profession and Competency of Forest Management Technical Personnel.  

Enacted on July 20, 2022, and came into force July 28, 2022

This Regulation provides Work Competency Standards for forest management technical personnel (tenaga teknis pengelolaan hutan). These personnel include individuals in the fields of (i) forest planning, (ii) utilization of forest products, (iii) use of forest areas, (iv) forest development, and (v) processing of forest products.

The implementation of these Work Competency Standards will be used as the basis for the implementation of Work Competency Certification, the preparation of curriculums and training programs, the preparation of Work Competency Certification schemes, and as a reference in the implementation of the duties and functions of forest management technical personnel.

■ GOVERNOR OF DKI JAKARTA 

Rural and urban land and building taxes in Jakarta

DKI Jakarta Governor Regulation No. 23 of 2022 regarding Policy on Determination and Payment of Rural and Urban Land and Building Taxes as an Effort for Economic Recovery in 2022

Enacted on June 8, 2022, and came into force on June 10, 2022

Under this regulation:

• Rural and urban land and building tax (“PBB-P2”) for fiscal year 2022 is exempted at 100% for landed houses owned, controlled and/or utilized by individual taxpayers if the sale value of the tax object (nilai jual objek pajak or “NJOP”) is less than IDR 2 billion.

• If the landed house is owned by an individual taxpayer and the relevant NJOP is IDR

2 billion or more, then the following provisions apply: (a) the partial exemption of PBBP2 for fiscal year 2022 will be granted for a plot of land with an area of 60m2 and a building covering an area of 36m2; and (b) the remaining land and building area will be given a 10% reduction on the remaining PBB-P2 that is payable.

• A 15% reduction in outstanding PBB-P2 will be given for land and/or buildings that do not meet any of the above criteria. The PBB-P2 exemption will not be granted for toll roads.

• Incentives to be given for the repayment of PBB-P2 arrears for the period 2013 – 2021 are as follows: (a) 10% tax discount for arrears settled between June and October 2022 and 5% for arrears settled between November and December 2022; and (b) cancellation of administrative sanctions.

The following tax deductions will be provided for the settlement of PBB-P2 payable for fiscal year 2022: (a) 15% discount for arrears settled between June and August 2022; (b) 10%  discount for arrears settled between September and October 2022; and (c) 5% for arrears settled by November 2022.

■ HEALTH 

Rules on metal contamination in processed food 

National Agency of Drug and Food Control (Badan Pengawas Obat dan Makanan or “BPOM”) Regulation No. 9 of 2022 regarding Metal Contamination in Processed Food

Enacted and came into force on April 22, 2022

This Regulations sets new standards for metal contamination in processed foods for parties involved in producing, storing, transporting, and/or distributing such foods. It stipulates the types and levels of metal contamination that are allowed in processed foods. Under the previous regulatory regime, quantitative measurement certificates were required for the food to be distributed. This new Regulation requires that metal contamination levels be proven through laboratory tests performed by accredited laboratories.

Guidelines for in vivo preclinical toxicity testing 

BPOM Regulation No. 10 of 2022 regarding Guidelines for In Vivo Preclinical Toxicity Testing  

Enacted and came into force on May 19, 2022

Business actors and research institutions must undertake in vivo preclinical toxicity testing for (1) drugs; (2) traditional drugs; (3) quasi-drugs; (4) health supplements; (5) cosmetics; and (6) processed foods. Prior to such testing, business actors and research institutions must obtain ethical clearance (persetujuan komisi etik) and approval from BPOM for the preclinical trial. The latter approval is only for traditional drugs, quasi-drugs, health supplements, cosmetics, and processed foods.

The Appendix of the Regulation sets out guidelines for BPOM evaluators and businesses in the food and drug sector.

New bioequivalence testing procedures 

BPOM Regulation No. 11 of 2022 regarding Procedures for Bioequivalence Testing  

Enacted and came into force on May 30, 2022

This Regulation sets out that generic drugs and comparator drugs produced by pharmaceutical companies or contract research organizations shall be subject to

bioequivalence testing prior to drug registration. This will be carried out in a testing center, will  require the approval of BPOM, and must fulfill the official Good Clinical Testing Practice (Cara Uji Klinik yang Baik or “CUKB”) and standard laboratory practices under the prevailing laws.

Companies can apply for testing approval through the BPOM website by submitting the application form, evaluation, and fee payment. The approval will be issued through the same website and will be valid for two years from its issuance date. 

Based on this new Regulation, testing shall be performed by referring to the following guidelines and protocols:

1. CUKB guidelines;
2. Testing guidelines based on Appendix I of BPOM Regulation No. 11 of 2022 regarding Procedures for Bioequivalence Testing;
3. Latest testing protocols that have been approved by BPOM for any testing conducted in Indonesia.
   

Generic drugs subject to bioequivalence testing 

BPOM Decree No. 65 of 2022 regarding List of Generic Drugs that Require Bioequivalence Testing (“BPOM Decree 65/2022”)  

Enacted and came into force on June 2, 2022

This Decree contains a list of generic drugs subject to the bioequivalence testing requirement. Certain generic drugs still in the registration process, listed as newly registered and/or listed as re-registered in the appendix of this decree may undergo compared dissolution testing with the bioequivalence commitment testing no later than two years since the date of this Decree. However, if the foregoing drugs have undergone bioequivalence testing, the bioequivalence test report must be submitted to BPOM no later than three years from the enactment of this Decree.

Drug manufacturing practices for hospitals 

BPOM Regulation No. 12 of 2022 regarding Guidelines for Good Drug Manufacturing Practices in Hospitals (“BPOM 12/2022“)  

Enacted and came into force on June 23, 2022

This Regulation sets guidelines for good drug manufacturing practices (Cara Pembuatan Obat yang Baik or “CPOB”) for hospitals manufacturing finished drugs, provided that such drugs do not include the use of biological products.

The Appendix of BPOM 12/2022 determines the specific matters that shall be taken into account by hospitals, which are quality assurance systems, human resources, buildings and facilities, documentation, production, product quality control, contract-based manufacturing complaints and product recalls, self-inspections and internal audits, guidelines on standard  requirements for the manufacture of sterile drugs, guidelines on standard requirements for the manufacture of liquids, creams and non-sterile ointment drugs, and good manufacturing practices for radiopharmaceutical substances in hospitals. 

This Regulation sets out that BPOM officers shall supervise the implementation of CPOB guidelines by introducing follow-up measures including technical guidance and administrative sanctions.

Product recalls for drugs 

BPOM Regulation No. 14 of 2022 regarding the Withdrawal and Destruction of Drugs Failing to Meet Safety, Efficacy, Quality or Labelling Standards and/or Requirements

Enacted and came into force on July 4, 2022

This Regulation addresses obligatory drug withdrawals ordered by the Head of BPOM and voluntary withdrawals by license holders. License holders shall report the withdrawal of drugs to the Head of BPOM and publicly announce the withdrawal based on the evaluation of BPOM. Drugs that do not meet safety, efficacy, quality, or labelling standards must also be destroyed, as documented in a minutes of drug destruction which will be reported to the Head of BPOM.

This Regulation revokes BPOM Regulation Number 14 of 2019 regarding the Withdrawal and Destruction of Drugs that Fail to Meet Safety, Efficacy, Quality or Labeling Standards and/or Requirements.

Drug safety rules for pharmaceutical companies

BPOM Regulation No. 15 of 2022 regarding the Implementation of Pharmacovigilance  

Enacted and came into force on July 7, 2022

This regulation sets out pharmacovigilance procedures for the pharmaceutical industry for distributed drugs. It requires pharmaceutical companies to prepare risk management plans from product development to distribution of the finished product. Further, pharmaceutical companies must submit reports to the Pharmacovigilant Center/National Monitoring of Drug Side Effects. The pharmacovigilant reporting consists of spontaneous reporting (pelaporan spontan) for serious side effects such as death and permanent disability, periodical postdistribution reports, scientific publications/literature reports, follow-up reporting for the owners of distribution permits abroad, risk management planning implementation reports and/or security signal reporting.

Companies in the pharmaceutical industry must document all data and reports on pharmacovigilant activity. The overall process for pharmacovigilance shall be evaluated by BPOM.

Makeover for cosmetics requirements

National Agency of Drug and Food Control Regulation No. 17 of 2022 on the Amendment of National Agency of Drug and Food Control Regulation No. 23 of 2019 on Technical Requirements for Cosmetics Ingredients.

Enacted and came into force on July 28, 2022

This Regulation amends the technical requirements for cosmetics materials to be in line with current scientific and technological developments. The list of permitted materials is amended as follows:

1. Cosmetics, in relation to which materials are permitted for use in line with certain restrictions and usage requirements (listed in Appendix I);
2. Coloring used in cosmetics products, except hair coloring (listed in Appendix II); Preservatives used in cosmetics products (listed in Appendix III); and
3. Sunscreens used in cosmetics products (listed in Appendix IV).

Cosmetics companies are prohibited from distributing any cosmetics products that do not conform with the restrictions, requirements and/or intended uses that are listed in Appendices I – IV of this new Regulation. Further, any distribution licenses in the form of notifications obtained prior to July 28, 2022, must conform with the provisions of these changes within two years of the enactment of this new Regulation.

■ INDUSTRY

Domestic component levels for medical devices

Minister of Industry (“MOI”) Regulation No. 31 of 2022 regarding Provisions and Procedures for the Calculation of the Value of Domestic Component Levels for Medical Devices and In Vitro Diagnostic Medical Devices

Enacted on July 13, 2022, and came into force in July 20, 2022

The calculation of domestic component level (Tingkat Komponen Dalam Negeri or “TKDN”) values for medical devices and in vitro diagnostic medical devices should be carried out in line with the various procedures set out in this Regulation. This is intended to enhance the level of public health protection.

Calculations of TKDN values should be carried out based on the accumulation of domestic components (Komponen Dalam Negeri or “KDN”), which represent the relevant production costs that are incurred during the production of one single product unit. Industrial companies should complete self-calculations of their TKDN values. If an industrial company is engaging in any form of cooperation, the activities under the cooperation must be included in the selfcalculations.

With the promulgation of this Regulation:

1. TKDN certificates for medical devices and in vitro diagnostic medical devices issued before July 20, 2022, remain valid until their validity period ends; and
2. Applications for TKDN verification which are in the process of being processed shall continue by referring to the provisions stipulated in this Regulation.

■ MANPOWER

Manpower certification enforcement requirement

Minister of Manpower Decree No. 115 of 2022 regarding the Mandatory Enforcement of Work Competency Certification for Manpower in the Field of Human Resource Management

Enacted and came into force on August 18, 2022

This Decree requires work competency certification for workers in the field of human resource management. This requirement is imposed to ensure the availability of a competent workforce, increase productivity and competitiveness, and to help realize harmonious industrial relations. It also provides that the mandatory enforcement of work competency certification is required for the fields of (i) training and development; (ii) work management; (iii) worker productivity; (iv) industrial relations; (v) remuneration system; and (vi) talent management. This certification requirement shall apply to workers who occupy positions equivalent to qualification level 4 in the Indonesian National Qualification Framework.

■ MINISTRY OF FINANCE

New regulation on export duty tariffs

Minister of Finance (“MOF”) Regulation No. 98/PMK.010/2022 regarding the Amendment of MOF Regulation No. 39/PMK.010/2022 regarding the Determination of Export Goods Subject of Export Duty and Export Duty Tariffs

Enacted and came into force on June 9, 2022

This new Regulation stipulates the export duty tariffs for palm oil, crude palm oil, and derivative products. Its appendix provides export duty tariffs for specific products including leather goods, wood products, cocoa beans, palm oil, crude palm oil, and its derivative products.

New regulation lists products subject to export limitations

MOF Regulation No. 17/KM.4/2022 regarding List of Products Restricted for Export based on Minister of Trade Regulation No. 30 of 2022 regarding Provisions for the Export of Crude Palm Oil, Bleached and Deodorized Palm Oil, Refined, Bleached, Deodorized (“RBD”) Olein, and Used Cooking Oil

Enacted and came into force on May 23, 2022

This Regulation contains a list of products with export restrictions. In total, there are 12 products, based on their HS codes, that are restricted. These products include used cooking oil, crude palm oil, and RBD palm oil.

Amendment to excise tariffs for tobacco products

Minister of Finance Regulation No. 109/PMK.010/2022 regarding the Amendment of Minister of Finance Regulation No. 192/PMK.010/2021 regarding Excise Tariffs for Tobacco Products in the Form of Cigarettes, Cigars, Klobot Cigarettes and Sliced Tobacco

Enacted and came into force on July 4, 2022

This Regulation amends the production limits for tobacco product producers, and revises the tariffs, retail sale price and excise label services for Incense-Clove Cigarettes (Sigaret

Kelembak Kemenyan or “KLM”). This Regulation amends Appendix I, Appendix II, and Appendix III of MOF Reg. 192/2021, and re-determines excise tariffs for tobacco products in the form of KLM and production quality limits.  

Restrictions on imported and exported fisheries goods and commodities

Minister of Finance Decree No. 26/KM.4/2022 regarding List of Goods Which Are Restricted for Export and Import Based on Minister of Maritime Affairs and Fisheries Regulation No. 8 of 2022 regarding Types of Commodities Requiring Fish Quarantine, Quality and Safety of Fisheries Products Examination.

Enacted on July 27, 2022, and came into force on July 29, 2022

This Decree contains a list of goods that are restricted for export and import, specifically being related to commodities that require fish quarantine, quality, and safety of fisheries products examination. It also includes commodities that require quarantine documents such as Health Certificates and Approval Letters.

Amendment to goods subject to export duties and tariffs

Minister of Finance Regulation No. 123/PMK.010/2022 regarding Second Amendment to Minister of Finance Regulation No. 39/PMK.010/2022 regarding the Stipulation of Exported Goods That Are Subject to Export Duty and Export-Duty Tariffs

Enacted on August 8, 2022, and came into force on August 9, 2022

Amended export duty tariffs and provisions for exported goods in the form of palm oil, crude palm oil (CPO) and its derivative products are stated in Appendix C of this Regulation. This Regulation also amends provisions on the determination of the reference price for cocoa beans and CPO.

Difference between Electronic System Providers and Trade Through Electronic Systems

Directorate General of Tax Press Release No. SP-47/2022, “PSE and PMSE, What’s the Difference?”

Issued on August 3, 2022

This Press Release addresses the differences and similarities of an Electronic System Provider (“ESP”) and Trade Through Electronic Systems (Perdagangan Melalui Sistem

Elektronik or “PMSE”). The Directorate General of Tax (“DGT”) says that not all ESPs are PMSE actors, and thus not all ESPs will be required to collect VAT.

The DGT also says that VAT imposed on PMSEs is only related to the use of intangible taxable goods or taxable services from abroad with a certain minimum limit. According to DGT data, as of the end of July 2022, there were 121 companies that are ESPs and have been appointed as PMSE VAT collectors, with the value of VAT paid in 2022 at IDR 3.02 trillion.

■ MINISTRY OF FOREIGN AFFAIRS

New information technology security application

Cooperation Agreement between the Information and Communication Technology Center of the Ministry of Foreign Affairs (“MOFA”) and the Assessment and Development Center of the State Cyber Security and Crypto Agency (BSSN) regarding the Trial of the Information Technology Security Digital Application (ADIPATI) at the MOFA and Indonesian Missions Abroad No. PRJ/KM/00160/07/ 2022/19 and No. PERJ.141/BSSN/P1/ HK.07.02/07/2022

Dated July 11, 2022

The BSSN and MOFA have agreed to develop a cybersecurity application, called ADIPATI, developed by the BSSN to secure digital files.

■ OJK / BAPEPAM

Share ownership prohibition for financing companies

Indonesian Financial Services Authority (“OJK”) Regulation No. 7/POJK.05/2022 regarding the Amendment of OJK Regulation No. 35/POJK.05/2018 regarding Financing Company Business Operations

Enacted on May 17, 2022, and came into force on May 18, 2022

This Regulation amends provisions under OJK Regulation No. 35/POJK.05/2018 regarding the Implementation of Financing Company Business Operations. Specifically, it adds Article 82A and amends Article 115. With these changes, financing companies are now prohibited from owning shares and/or securities with underlying shares or that are guaranteed by shares for the purpose of:  

1. short-term investments;
2. sales and purchase;

• cash flow management; and/or

1. equity participation other than within the context of developing the business activities of the financing company, excluding share ownership through direct participation.

Financing companies that already owned shares and/or securities with underlying shares or guaranteed by shares prior to May 18, 2022, must transfer their ownership of such shares and/or securities by no later than May 18, 2023.

OJK reporting requirement for securities underwriters and securities brokers

OJK Regulation No. 8/POJK.04/2022 regarding Reporting for Securities Companies

Conducting Business Activities as Securities Underwriters and Securities Brokers

Enacted on May 18, 2022, and came into force on May 19, 2022

This Regulation requires securities companies conducting business activities as securities underwriters and securities brokers to submit periodical reports (i.e., daily, monthly, quarterly, semi-annual and annual reports) and incidental reports to the OJK. It also regulates the reporting parties, reporting procedures, delays and exceptions to reporting, as well as the deadline for submitting each report.

This Regulation revokes the reporting provisions for securities underwriters and securities brokers under Regulation No. X.E.1, Appendix to the Head of the Capital Market and Financial Institution Supervisory Agency Decree No. KEP-460/BL/2008 regarding Mandatory Periodic Report Submission by Securities Companies, and Head of the Capital Market and Financial Institution Supervisory Agency Circular Letter No. SE-02/BL/2009 regarding the Reporting of Data on Debt/Obligation of Companies in Foreign Exchange.

Bappenas-OJK synergy for economic recovery

Press Release No. SP 29/OJK/DHSM/VI/2022 on Signing by Bappenas-OJK of a

Memorandum of Understanding on the Synergy of Economic Recovery and Transformation Policies

Issued on June 15, 2022

The OJK reported through this press release that the Ministry of National Development Planning/Bappenas and the OJK had signed a Memorandum of Understanding (MoU) on the synergy of national development planning policy with financial services sector policies to support national economic recovery and transformation. Aside from pursuing synergy between financial sector policies and national development planning policies, the MoU is also seen as a step toward realizing the 2045 Indonesian Vision, which is to become a high-income country and join the top five biggest economies in the world.

New regulations for financing and securities companies

Press Release No. SP 30/DHMS/VI/2022 on the Issuance by the OJK of Regulations for Financing Companies and Securities Companies to Strengthen Supervision

Issued on June 17, 2022

Through this press release, the OJK reported the issuance of two Regulations, which are OJK Regulation No. 7/POJK.05/2022 regarding the Amendment of OJK Regulation No. 35/POJK.05/2018 regarding the Implementation of Financing Company Business Operations, and OJK Regulation No. 8/POJK.04/2022 regarding Reporting for Securities Companies Conducting Business Activities as Securities Underwriters and Securities Brokers.

Supervision of the Indonesian Export Financing Agency

OJK Regulation No. 9/POJK.05/2022 regarding Supervision of the Indonesian Export

Financing Agency (Lembaga Pembiayaan Ekspor Indonesia or “LPEI”)

Enacted on June 14, 2022, and came into force on June 23, 2022

This Regulation stipulates the scope of the OJK’s supervision of the LPEI, which encompasses the supervision of the LPEI’s soundness level and the LPEI’s compliance with the applicable laws and regulations. It also stipulates the LPEI’s obligations in relation to maintaining its soundness level, which include the obligation to conduct soundness level evaluations and submit reports to the OJK.

The provisions under Article 4 paragraph (1), (3), (4), (5), Article 112 paragraph (1), Article 118 (1), (3), (4), (5), (6), and Article 123 paragraph (1), (2), and (5) of this Regulation shall be applicable beginning June 23, 2023. Otherwise, the provisions of this Regulation apply  beginning June 23, 2022. This Regulation revokes OJK Regulation No. 40/POJK.05/2015 regarding the Financing and Supervision of the Indonesian Export Financing Agency.

Regulation of rural bank products

OJK Circular Letter No. 8/SEOJK.03/2022 regarding the Implementation of Rural Bank Products

Enacted and came into force on June 29, 2022

This Circular Letter tackles the regulation of rural bank products by the OJK. It groups rural bank products into several types (basic product, continuing product), and adds that products may gain instant approval or piloting review, depending on the type of product. This Circular Letter also asserts that rural banks must adhere to consumer protection regulations and provide regular reports to the OJK on the implementation of products.

Regulation on P2P lending

OJK Regulation No. 10/POJK.05/22 regarding Information Technology-Based Financing Services

Enacted and came into force on July 4, 2022

This Regulation was promulgated to address the growing fintech sector in Indonesia. Among other things, it requires fintech entities to have minimum capital of IDR 25 billion, have at least one controlling shareholder, and to obtain a business license from the OJK. It also provides that candidate stakeholders (controlling shareholders, directors, commissioners) must obtain approval from the OJK prior to commencing their duties. In addition, fintech entities must have a minimum equity of IDR 12.5 billion.

OJK circular letter addresses security fund contribution

OJK Circular Letter No. 10/SEOJK.04/2022 regarding Amendment of OJK Circular Letter No. 8/SEOJK.04/2020 regarding Security Fund Contribution based on Transaction Value

Enacted and came into force on June 29, 2022

This Circular Letter amends several terms on security fund contributions. These amendments, inter alia, redefine structured warranties as effects issued by the issuer which give holders the right to sell or buy the underlying warranties at a fixed price and time. It also provides that exchange transactions, upon the maturity of structured warrants, shall amount to 0.0003% of the value of the issuance of structured warrants.

Strengthening consumer protection

OJK Press Release No. SP 35/DMHS/VII/2022 regarding Strengthening Consumer Protection through Oversight of Market Conduct

Issued on July 7, 2022

The OJK issued this press release to request that business actors strengthen consumer protection. The head of the OJK Board of Commissioners, Wimboh Santoso, said this shall be done by the issuance of OJK Regulation No. 6 of 2022 regarding Consumer and Public Protection in the Financial Services Sector. He stressed the importance of business actors having a sense of responsibility for the investment and financial instruments they offer, so that the public will have an understanding of the risks that may appear in the future.

Marketing of offshore securities

OJK Press Release No. SP 36/DMHS/OJK/VII/2022

Issued on July 9, 2022

This OJK press release says that financial service providers are prohibited to market, promote or advertise offshore securities that have not obtained OJK approval. This prohibition aims to protect consumers and prevent misinformation. The OJK also addressed the presence of super-apps which offer a number of investment products including securities issued abroad. In this regard, the OJK encouraged business actors to cease the offering of financial services without OJK approval.

Placement of bank guarantee collateral

Indonesian Clearing and Guarantee Corporation (Kliring Penjaminan Efek Indonesia or “KPEI”) Circular Letter No. SE-005/DIR/KPEI/0622 regarding the Placement of Bank Guarantee Collateral

This Circular Letter concerns the placement of several types of collateral, including Bank Guarantee from Clearing Members (CMs). Pursuant to the Principle for Financial Market Infrastructure (PFMI), the KPEI, as the central counterparty, must consider the concentration risk and liquidity risk to collateral placed by CMs. The Circular Letter further provides that bank guarantees placed by CMs as collateral must fulfil certain criteria  including (i) certain core capital requirements; (ii) the bank issuing the bank guarantee must not have any affiliate relationship with any other CM placing a bank guarantee as collateral; (iii) the bank guarantee must include provisions that it can be disbursed no later than five exchange days since the receipt of the claim for reimbursement from the KPEI; and (iv) the total value of the bank guarantee that can be accepted as collateral is a maximum of IDR 100 billion for every CM.

Regulation of IT technology at conventional banks

OJK Regulation No. 11/POJK.03/2022 regarding the Implementation of Information Technology by Conventional Banks

Enacted on July 7, 2022, and to come into force three months after its enactment

Under this OJK Regulation, conventional banks must adhere to a series of new obligations concerning information technology. The Regulation divides these obligations into several groups, including IT management, architecture, processing, and protection of personal data. Banks which do not fulfil these obligations will be subject to administrative sanctions. Banks are also required to submit reports to the OJK on their IT-based activities, including realization reports and latest condition reports.

Secondary housing financing companies

OJK Regulation No. 12/POJK.05/2022 regarding the Amendment of OJK Regulation No. 4/POJK.05/2018 regarding Secondary Housing Financing Companies (Perusahaan

Pembiayaan Sekunder Perumahan or “PPSP”).

Enacted and came into force on July 7, 2022

This Regulation amends the definitions of secondary housing finance, financial assets, assetbacked securities, and others. It also amends provisions related to PPSP business activities, including the addition of new provisions on credit and financing, direct participation, implementation of PPSP business activities based on sharia principles, and reporting the implementation of good corporate governance.

■ PUBLIC WORKS AND PUBLIC HOUSING

New regulation on ease of business licensing in the construction sector

Minister of Public Works and Public Housing Regulation No. 8 of 2022 regarding Procedures to Implement the Fulfillment of Construction Services Standard Certificates to Support the Ease of Business Licensing for Construction Service Business Actors.

Enacted and came into force on August 1, 2022

This Regulation sets out the process to obtain the standard certificate for construction services, including the application, fee payment, verification and validation process, and the approval or rejection of the application for a Construction Business Entity Certificate (Sertifikasi Badan Usaha Jasa Konstruksi). The same process shall apply for licenses issued by the Construction Business Entity Agency.

Rules on construction supervision consultancy services

Minister of Public Works and Public Housing Circular Letter No.  16/SE/M/2022 regarding the

Structure of Experts for Construction Supervision Consultancy Services in the Ministry of Public Works and Public Housing

Enacted and came into force on August 4, 2022

This Circular stipulates, inter alia, the responsibilities, duties, and authorities of consulting service providers; the scope of construction work that shall involve supervision consultants; the duties of construction supervision experts; and the educational, work experience, and expertise requirements for supervising consultants.

■ STATE-OWNED ENTERPRISES

New system for complaints about government-procured goods and services

National Public Procurement Agency Regulation No. 6 of 2022 regarding Complaint System for Government Procurements of Goods/Services

Enacted and came into force on July 28, 2022

Complaints about government procurement of goods and services shall be submitted through the Procurement of Goods/Services Complaints System (“System”) developed by the National Public Procurement Agency (Lembaga Kebijakan Pengadaan Barang/Jasa

Pemerintah or “LKPP”). Complaints may consist of administrative violations, unfair business competition, and criminal actions such as fraud, counterfeiting, and/or corruption. Business actors, agencies, entities or the public may submit their complaints through https://pengaduan.lkpp.go.id/, while whistleblowers will submit through the Whistleblowing System. All matters related to the complaints shall be verified by the Internal Government Supervision Apparatus (Aparat Pengawasan Internal Pemerintah or “APIP”).

■ SUPREME COURT

Electronic Mediation

Supreme Court Regulation No. 3 of 2022 regarding Mediation in Courts Electronically

Enacted on May 17, 2022, and came into force on May 30, 2022

Previously, the Supreme Court, with the issuance of Regulation No. 1 of 2016, dated February 4, 2016, regarding Mediation Procedures in Courts, required the implementation of mediation processes to resolve civil disputes. Now, to integrate technological developments into this mediation process, the Supreme Court has issued this new Regulation to allow mediation to be done electronically as an alternative to the regular mediation process.

This Regulation consists of procedures regarding the administration of electronic mediation; electronic mediation meetings; and the delivery of results and the signing of mediation agreements. Pursuant to this Regulation, electronic meetings must be carried out within the virtual rooms of the application that has been agreed upon by the parties involved.

­■ TOURISM

Data management for the tourism and creative economy sectors

Minister of Tourism and Creative Economy Regulation No. 8 of 2022 regarding One-Stop Data for the Tourism and Creative Economy Sectors

Enacted and came into force on July 20, 2022

This Regulation provides guidelines for the Ministry of Tourism and Creative Economy to manage data relating to the planning, implementation, evaluation, and control of tourism and creative economy development. It stipulates the type of data that will be gathered and how it will be stored and used.

■ TRADE

Business licensing services in the trade sector

Minister of Trade Regulation No. 36 of 2022 regarding the Revocation of Minister of Trade Regulation No. 8 of 2020 regarding Electronically Integrated Business Licensing Services in the Trade Sector, as Amended by Minister of Trade Regulation No. 64 of 2020 regarding the Amendment of Minister of Trade Regulation No. 8 of 2020 regarding Electronically Integrated Business Licensing Services in the Trade Sector and Minister of Trade Regulation No. 22 of 2020 regarding the Integration of Business Licensing Services in the Trade Sector

Enacted on May 30, 2022, and came into force on June 3, 2022

This Regulation revokes several Minister of Trade regulations regarding Electronically Integrated Business Licensing Services in the Trade Sector, due to the implementation of Indonesia’s Risk-Based Licensing through the Online Single Submission System.

Previous requirements on licensing in the trade sector are no longer applicable, including requirements on state revenue, licensing documentation, and the time periods for the issuance of licenses.

Update on goods prohibited from being imported and exported

Minister of Trade Regulation No. 40 of 2022 regarding the Amendment of Minister of Trade Regulation No. 18 of 2021 regarding Goods Prohibited from Being Imported and Exported

Enacted on June 13, 2022, and came into force on June 21, 2022

This Regulation amends Appendix II of Minister of Trade Regulation No. 18 of 2021 regarding Goods Prohibited from Being Imported and Exported. Appendix II includes the following goods:  (i) sugar; (ii) rice; (iii) ozone destroying materials; (iv) used bags, sacks and clothes; (v) empty or filled cooling system-related goods that use chlorofluorocarbon and hydrochlorofluorocarbon 22; (vi) certain food and drug materials; (vii) hazardous and toxic materials (bahan berbahaya dan beracun – “B3”); (viii) B3 and non-B3 waste; (ix) hand tools (perkakas tangan); and (x) health equipment containing mercury.

This Regulation also includes the Post Tariff/HS Code for each of the above goods, along with a description and details of the goods.

Updated requirements for Futures Broker Representative License

Commodity Futures Trading Regulatory Agency (Badan Pengawas Perdagangan Berjangka Komoditi or “Bappebti”) Regulation No. 9 of 2022 regarding Futures Broker Representative License

 Enacted and came into force on June 30, 2022

 This Regulation includes requirements including licensing for Futures Broker Representatives (Wakil Pialang Berjangka or “WPB”). The WPB License will only be issued to individuals who are Indonesian citizens and have passed the WPB professional examination given by Bappebti.

 It also prohibits certain individuals from acting as a WPB, including individuals who are incapable of carrying out legal actions and/or have been convicted of a criminal offense in the economic or financial sector, and the Director of Compliance at the Futures Broker. The WPB may be a shareholder who is also a member of the Board of Directors of the Futures Broker.

The certificate from the professional examination for a WPB is now only valid for one year from the date of issuance. Once this period has elapsed, the WPB will be required to retake the professional examination. Once an individual has obtained the WPB License, they must take the Futures Broker Representatives Professional Enhancement Training Program

(Program Pelatihan Peningkatan Profesi Wakil Pialang Berjangka or “P4WPB”) every two  years, as organized by Bappebti, the Futures Trading Industry Association and/or the Futures Exchange.

 Cryptocurrency  

Updated list of tradable crypto assets

Commodity Futures Trading Regulatory Agency (Badan Pengawas Perdagangan Berjangka Komoditi or “Bappebti”) Regulation No. 11 of 2022 regarding the List of Crypto Assets Traded in the Crypto Asset Physical Market

Enacted and came into force on August 8, 2022

This Regulation amends the list of tradable crypto assets in Indonesia, which now includes 383 tradable crypto assets (i.e., tokens and coins) that may be traded by Crypto Asset Physical Traders (Pedagang Fisik Aset Kripto). Crypto Asset Physical Traders or Candidates may submit a proposal to add or remove crypto assets from this list to Bappebti through the Crypto Asset Futures Exchange. Proposals will be reviewed by the Crypto Asset Futures Exchange and the Crypto Asset Committee. If the Crypto Asset Futures Exchange and/or Crypto Asset Committee have not yet been formed, the Crypto Asset List Valuation Team (Tim Penilaian Daftar Aset Kripto), formed by Bappebti, may review the proposal to add or remove crypto assets, based on the guidelines as stated in this Regulation.

Crypto Asset Physical Traders are prohibited from trading crypto assets at the risk of administrative sanctions.

Previously, under Bappebti Regulation No. 7 of 2020 regarding Determination of the List of Tradable Crypto Assets on the Crypto Asset Physical Market, there were only 229 crypto assets which could be traded by Crypto Asset Physical Traders.