Legal Alert – January 2021 – Corporate/Commercial Law


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BANK INDONESIA (“BI”)

Members of the BI Board of Governors Regulation No.
22/33/PADG/2020 dated December 1, 2020
, regarding the
Third Amendment of Members of the BI Board of Governors Regulation
No. 20/15/PADG/2018 regarding the Organization of Immediate Fund
Settlement Through BI’s System – Real Time Gross
Settlement (“RTGS”). This Regulation amends policies on
fee determination and the evaluation of the arrangement of priority
numbers for the settlement of automatic funds through BI-RTGS. It
came into effect on the date of its enactment.

COMMUNICATION AND INFORMATICS

Minister of Communication and Informatics Regulation No.
5 of 2020 dated November 24, 2020
, regarding Organization
of Private Electronic Systems. This was issued as an implementing
regulation for several articles in Government Regulation No. 71 of
2019 regarding Organization of Systems and Electronic Transactions.
It is meant to simplify provisions as previously stipulated in
Minister of Communication and Informatics Regulation No. 19 of 2014
regarding Handling Negative Internet Websites and Minister of
Communication and Informatics Regulation No. 36 of 2014 regarding
Guidelines for the Registration of Electronic Systems. The main
thrust of this Regulation is the stipulation of the obligation for
organizers of private electronic systems to register their
services. It also requires private electronic system organizers to
moderate electronic documents and information on their systems.
This Regulation came into force on the date of its
promulgation.

ENERGY AND MINERAL RESOURCES

Minister of Energy and Mineral Resources Regulation No.
17 of 2020 dated November 23, 2020
, regarding the Third
Amendment of Minister of Energy and Mineral Resources Regulation
No. 25 of 2018 regarding Mineral and Coal Mining. This Regulation
amends several articles including those on the due date for the
sale of processed mineral/coal, bauxite, etc. This Regulation came
into force on the date of its promulgation.

ENVIRONMENT AND FORESTRY

Minister of Environment and Forestry Regulation No.
P.22/MENLHK/SETJEN/KUM.1/10/ dated November 3, 2020
,
regarding Amendment of Minister of Environment and Forestry
Regulation No. P.4/MENLHK/SETJEN/ PHPL.3/1/2016 regarding
Limitation of Business License for the Utilization of Timber Forest
Products (Pembatasan Luasan Izin Usaha Pemanfaatan Hasil Hutan Kayu
or “IUPHHK”) in Natural Forests or IUPHHK for Industrial
Plantation Forests in Production Forests. This Regulation
stipulates that area limitations are waived for IUPHHK applications
that were already in the minutes of meeting of technical proposal
assessment process before the enactment of Minister of Environment
and Forestry No. P.4/MENLHK/SETJEN/ PHPL.3/1/2016. This Regulation
came into force on the date of its promulgation.

Minister of Environment and Forestry Regulation No.
P.23/MENLHK/SETJEN/KUM.1/10/2020 dated November 3, 2020
,
regarding Environmental Laboratory. This Regulation acts as a
guideline for improving the quality and accountability of testing
conducted by environmental laboratories. It came into force on the
date of its promulgation.

FINANCE

Minister of Finance (“MOF”) Regulation No.
187/PMK.05/2020 dated November 26, 2020
, regarding
Guidelines for the Issuance of Government Bonds in the Framework of
Handling the Impact of the Corona Virus Disease 2019 (COVID-19)
Pandemic and National Economic Recovery in 2020, and the
Utilization of Remaining Funds from the Issuance of Government
Bonds in 2020 in the Framework of Financing the Further
Implementation of Handling the Impact of the COVID-19 Pandemic and
National Economic Recovery in 2021. The Regulation stipulates the
basis for issuing government bonds by private placement or by
auction for the purpose of financing non-public goods. It came into
force on the date of its promulgation.

FINANCIAL SERVICES AUTHORITY (“OJK”)

OJK Regulation No. 47/POJK.05/2020 dated November 26,
2020
, regarding Business Licensing and Institutional
Financing Companies and Shariah Financing Companies. This
Regulation governs business licensing for institutional and shariah
financing companies established in the form of a limited liability
company. It governs, among other things, the direct/indirect
maximum foreign ownership of 85% of a company’s paid-up capital
and the obligation for companies to conduct business activities
after obtaining a business license from the OJK. This Regulation
came into force on the date of its promulgation.

OJK Regulation No. 46/POJK.05/2020 dated November 10,
2020
, regarding Infrastructure Funding Companies
(“PPI”). This Regulation governs, among other things, (i)
types of business activities in which PPI may engage, (ii) parties
eligible to establish a PPI, (iii) minimum paid-up capital for the
establishment of a PPI, (iii) organizational structure, (iv) branch
office requirements, and (v) source of funds for a PPI. This
Regulation came into force on the date of its promulgation.

INDONESIA STOCK EXCHANGE (“IDX”)

Director of IDX Circular Letter No. SE-00009/BEI/12-2020
dated December 2, 2020
, regarding Guidelines for the
Implementation of Registration of Additional Shares through
Pre-emptive Rights and Without Pre-emptive Rights. This Circular
Letter provides that an application for the registration of
additional shares through pre-emptive rights and without
pre-emptive rights, as regulated under Director of IDX Circular
Letter No. 00183/BEI/12- 2018, must be accompanied by a (i)
schedule for the implementation of capital increase through
pre-emptive rights and (ii) prospectus for a public offering to
increase capital by providing pre-emptive rights. This Circular
Letter came into force on the date of its issuance.

Director of IDX Letter of Decree No. Kep-00108/BEI/
12-2020 dated December 7, 2020
, regarding Amendment of
Regulation No. II-A regarding Trade of Securities in the form of
Equity. This Letter of Decree stipulates that parties conducting a
sale and purchase of securities in the form of equity registered at
the stock exchange must implement such transaction through the
Jakarta Automated Trading System. It came into force on the date of
its issuance.

INDONESIAN INVESTMENT COORDINATING BOARD
(“BKPM”)

BKPM Regulation No. 5 of 2020 dated November 10,
2020
, regarding Guidelines for the Submission of Legal
Entity Income Tax Facility Application for Investment in Certain
Business Fields and/or Certain Regions Outside of the Network. This
Regulation stipulates guidelines to apply for an income tax
facility in the event such application is not available in the
Online Single Submission (“OSS”) system. This Regulation
came into force on the date of its promulgation.

BKPM Regulation No .6 of 2020 dated November 13,
2020
, regarding Procedures and Guidelines for the
Supervision of Investment. This Regulation amends the previous
regime on investment as stipulated in BKPM Regulation No.7 of 2018.
Most of the amendments relate to new procedures under the Online
Single Submission (“OSS”) system, as stipulated in BKPM
Regulation No. 1 of 2020 regarding Guidelines for the
Implementation of Electronic Business Licensing Services. This
Regulation came into force on the date of its promulgation.

INDUSTRY

Minister of Industry (“MOI”) Regulation No. 44
of 2020 dated November 3, 2020
, regarding Implementation
of the Indonesian National Qualifications Framework (Kerangka
Kualifikasi Nasional Indonesia or “KKNI”) in the Field of
Salt Processing. This Regulation provides the KKNI, which is a
framework for judging the competencies of workers, for the salt
processing sector. This Regulation came into force on the date of
its promulgation.

MOI Regulation No. 43 of 2020 dated November 3,
2020
, regarding Implementation of KKNI in the Footwear
Industry. This Regulation provides the KKNI for workers in the
footwear industry. It came into force on the date of its
promulgation.

MOI Regulation No. 42 of 2020 dated November 3,
2020
, regarding Implementation of KKNI in the Field of
Electronic Prototypes and Programming. This Regulation provides the
KKNI for workers in the field of electronic prototypes and
programming. It came into force on the date of its
promulgation.

MOI Regulation No. 41 of 2020 dated November 3,
2020
, regarding Implementation of KKNI in the Field of
Fashion Technology and Fashion Design. This Regulation provides the
KKNI for workers in the field of fashion technology and fashion
design. It came into force on the date of its promulgation.

MOI Regulation No. 40 of 2020 dated November 3,
2020
, regarding Implementation of KKNI in the Heavy
Equipment Industry. This Regulation provides the KKNI for workers
in the heavy equipment industry. It came into force on the date of
its promulgation.

MOI Regulation No. 39 of 2020 dated November 3,
2020
, regarding Implementation of KKNI in the Field of
Carrosserie. This Regulation provides the KKNI for workers in the
field of carrosserie. It came into force on the date of its
promulgation.

MOI Regulation No. 37 of 2020 dated November 3,
2020
, regarding Implementation of KKNI in the Automotive
Component Sub-Sector. This Regulation provides the KKNI for workers
in the automotive component sub-sector. It came into force on the
date of its promulgation.

MOI Regulation No. 36 of 2020 dated November 3,
2020
, regarding Implementation of KKNI in the Motorcycle
Engineering Sector. This Regulation provides the KKNI for workers
in the motorcycle engineering sector. It came into force on the
date of its promulgation.

MOI Regulation No. 35 of 2020 dated November 3,
2020
, regarding Implementation of KKNI in the Garment
Industry. This Regulation provides KKNI for workers in the garment
industry sector. It came into force on the date of its
promulgation.

MOI Regulation No. 34 of 2020 dated November 3,
2020
, regarding Implementation of KKNI in the Automotive
Maintenance and Repair Sub-Sector. This Regulation provides the
KKNI for workers in the automotive maintenance and repair
sub-sector. It came into force on the date of its promulgation.

MOI Regulation No. 52 of 2020 dated November 10,
2020
, regarding Green Industry Standards for Laminated
Safety Glass Industry. This Regulation provides technical and
management requirements for companies in the laminated safety glass
industry to obtain green industry certification. It came into force
on the date of its promulgation.

MOI Regulation No. 51 of 2020 dated November 10,
2020
, regarding Green Industry Standards for the Organic
Solvent-Based Paint Industry. This Regulation provides technical
and management requirements for companies in the organic
solvent-based paint industry to obtain green industry
certification. It came into force on the date of its
promulgation.

MOI Regulation No. 50 of 2020 dated November 10,
2020
, regarding Green Industry Standards for Solid
Nitrogen, Phosphorus and Potassium Fertilizer Industry. This
Regulation provides the technical and management requirements for
solid nitrogen, phosphorus and potassium fertilizer manufacturers
to obtain green industry certification. It came into force on the
date of its promulgation.

MOI Regulation No. 49 of 2020 dated November 10,
2020
, regarding Green Industry Standards for Paper and
Corrugated Paper Board Industry. This Regulation provides technical
and management requirements for paper and corrugated paper board
manufacturers to obtain green industry certification. It came into
force on the date of its promulgation.

MOI Regulation No. 48 of 2020 dated November 10,
2020
, regarding Green Industry Standards for Glass-made
Packaging Industry. This Regulation provides technical and
management requirements for glass-made packaging industry
manufacturers to obtain green industry certification. It came into
force on the date of its promulgation.

MOI Regulation No. 47 of 2020 dated November 10,
2020
, regarding Green Industry Standards for Mineral Water
Industry. This Regulation provides technical and management
requirements for mineral water manufacturers to obtain green
industry certification. It came into force on the date of its
promulgation.

MOI Regulation No. 46 of 2020 dated November 10,
2020
, regarding Green Industry Standards for Ceramic
Household Appliances Industry. This Regulation provides technical
and management requirements for ceramic household appliance
manufacturers to obtain green industry certification. It came into
force on the date of its promulgation.

MANPOWER

Minister of Manpower (“MOM”) Decision No. 319
of 2020 dated October 26, 2020
, regarding Stipulation of
Indonesian National Work Competency Standards in the Mining and
Excavation of Metal Ore in the Field of Mineral Processing and/or
Refining. This Decision stipulates national work competency
standards in mining and excavation specifically for metal ore. It
came into force on the date of its enactment and is valid for five
years.

MOM Decision No. 320 of 2020 dated October 26,
2020
, regarding Stipulation of Indonesian National Work
Competency Standards in the Mining and Excavation of Coal and
Lignite for Coal Processing. This Decision stipulates the national
work competency standards for coal and lignite mining and
excavation. It came into force on the date of its enactment and is
valid for five years.

MOM Decision No. 331 of 2020 dated November 16,
2020
, regarding the Stipulation of Indonesian National
Work Competency Standards in the Manufacturing of Motor Vehicles,
Trailers and Semi-Trailers for Managers, Engineers and Maintainers
of Industrial Transformation 4.0. This Decision stipulates the
national work competency standards for the stipulated positions in
the indicated manufacturing sector. It came into force on the date
of its enactment and is valid for five years.

MOM Decision No. 332 of 2020 dated November 16,
2020
, regarding Stipulation of Indonesian National Work
Competency Standards in the Wholesale Trade Category and Retail,
Repair and Maintenance of Automobiles and Motorcycles as Primary
Classification of Wholesale Trade, Not Automobiles and Motorcycles
in the Field of Exports of Cooperatives and Micro, Small and Medium
Enterprises. This Decision stipulates national work competency
standards in the automobile and motorcycle wholesale, retail,
repair and maintenance industry, as well as the export to
cooperatives and MSMEs. It came into force on the date of its
enactment and is valid for five years.

MARITIME AFFAIRS AND FISHERIES

Minister of Maritime Affairs and Fisheries
(“MOMAF”) Regulation No. 59/PERMENKP/2020 dated November
30, 2020
, regarding Fishing Routes and Fishing Equipment
in the Fisheries Management Area of the Republic of Indonesia. This
Regulation revokes MOMAF Regulation No.71/PERMEN-KP/2016 and
regulates fishing routes, equipment that can be used to fish in
Indonesian waters, and the supervision and evaluation of fishing
routes and equipment. This Regulation came into force on the date
of its promulgation.

MOMAF Regulation No.58/PERMEN-KP/2020 dated November 30,
2020
, regarding Capture Fisheries. This Regulation amends
the previous regime, mainly on licensing and the procedures to
obtain a business licensing through the Online Single Submission
(“OSS”) system. It also regulates, among other matters,
the procurement of ships and the registration of fishing vessels.
This Regulation came into force on the date of its
promulgation.

NATIONAL LAND AGENCY

Minister of Agrarian and Spatial Layout/National Land
Agency Regulation No. 21 of 2020 dated November 23, 2020
,
regarding Handling and Settlement of Land Cases. This Regulation
stipulates new provisions for the settlement of land cases, as
previously regulated under Minister of Agrarian and Spatial
Layout/Head of National Land Agency Regulation No. 11 of 2016
regarding the Settlement of Land Cases. This Regulation extends the
scope of settlement to include, among other things, processing
complaints, cancellation of legal products, mediation, distribution
of teams to handle and settle cases, monitoring, evaluation and
reporting, and sanctions for officials found to have mishandled
cases. This Regulation came into force on the date of its
promulgation.

The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.

Janelle B. Smith

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