|Presidential Regulation Number 38 of 2015 regarding Government Cooperation with Business Entities in Infrastructure Provision ("PR 38/2015")||• PR 38/2015 is a regulation that regulates regarding Government Cooperation with Business Entities (which is known as KPBU) in regard to infrastructure provision.|
• The type of infrastructure that can be cooperated (KPBU) on based on this regulation are economic infrastructure and social infrastructure, which are:
o Transportation infrastructure.
o Road infrastructure.
o Water resources and Irrigation infrastructure.
o Drinking water infrastructure.
o Centralized wastewater management system infrastructure.
o Local wastewater management system infrastructure.
o Waste management system infrastructure.
o Telecommunications and informatics infrastructure.
o Electricity infrastructure.
o Oil and gas infrastructure and renewable energy.
o Energy conservation infrastructure.
o Urban facilities infrastructure.
o Educational facilities infrastructure.
o Sports and arts facilities infrastructure.
o Regional infrastructure.
o Tourism infrastructure.
o Health infrastructure.
o Prison infrastructure.
o Public housing infrastructure.
• KPBU can be a mix of two or more infrastructure that were mentioned above, and to improve the feasibility of a KPBU and/or provide greater benefits to the community, a KPBU may involve commercial facilities.
• In the implementation of KPBU, the Minister/Head of Institution/Head of Region acts as PJPK. State-Owned Enterprises and/or Region-Owned Enterprises can act as PJPKs, as long as it is as per the regulation.
• In this regulation it is also regulated in regards to land acquisition, Government Support and Guarantee, and Particular KPBU financing by the Government.
|Presidential Regulation No. 9/2021 on Housing Administration Acceleration Body (“PR 9/2021”)||• PR 9/2021 establishes Housing Administration Acceleration Agency (“BP3”) and regulates the main duties and functions of BP3 in serving the acceleration of construction and provision of public housing for low income society.|
• Specifically, its main duties are as follows:
1. Carry out the management of conversion fund;
2. Coordinate the process of licensing and assurance of occupancy
3. Implement the provisions of land for housing
4. Carry out the management of public and special house, including facilitating the residential
5. Carry out the transfer of ownership of public house
|Presidential Regulation No. 10/2021 on Business Sectors for Capital Investment (“PR 10/2021”)||• PR 10/2021 regulates the type of open business fields including its criteria and requirements to be categorized by each following business fields.|
• The category of business fields consists of:
a. Priority Business Fields;
b. Allocated business areas or partnership with cooperatives and MSMEs;
c. Business Field with Certain Requirements; and
d. other Business Fields besides point a-c which is open for all investors.
• The list of Business Fields according to the category aforementioned is provided in the Annex attached.
|Presidential Regulation No. 11/2021 on Cooperation between Central Government and State-Owned Enterprises on Administration of Basic Geospatial Information (“PR 11/2021”)||• PR 11/2021 is aimed to provide funding for administration of basic geospatial information, access to such information, and creating investment climate in geospatial information sector to stimulate geospatial industry growth.|
• PR 11/2021 regulates:
1. The activities regarding the implementation of Basic Geospatial Information (“IGD”) that can be done in the form of the implementation of geodesy network control and basic map.
2. The election of Implementing State-Owned Enterprises (“BUMN”) regarding the Cooperation between Central Government with BUMN (“KPBUMN”) which consists of various activities, i.e.,:
a. the planning and preparation of KPBUMN;
b. criteria and election of KPBUMN; and
c. the signing of KPBUMN Agreement;
3. Financial aspects in KPBUMN, which is Government Supports in fiscal and non-fiscal form, financing, and Return on Investment
|Presidential Regulation No. 12/2021 on Amending Presidential Regulation No. 16/2018 on Procurement of Government Goods/Services (“PR 12/2021”)||• PR 12/2021 amends/repeals articles concerning: |
1. Elimination and all regulations concerning Inspection Officer for Goods Provision Works Result/Inspection Committee Service for Goods Provision Works, and Middle-Sized Enterprises;
2. Addition and Amendment of tasks and authorities of actors in provision of goods and services;
3. Amendment and addition of regulations concerning Self-Predicted Price (“HPS”) value, contract, guarantee of implementation, methods of selection, pre-qualification, small-sized enterprises, etc.
|Government Regulation No. 5/2021 on Risk-Based Business Licensing (“GR 5/2021”)||• GR 5/2021 aims to implement Risk-Based Business Licensing through simplified licensing mechanism and supervision of business activities.|
• Business risk for the purpose of licensing is graded according to risk analysis, which defines what kind of Business License a business shall obtain.
• Points for risk analysis done by the central government, namely:
1. Identification of business activity;
2. Assessment on the level of dangerousness;
3. Assessment on possibilities for danger;
4. Identification of risk level and business scale level; and
5. Identification of Business License types.
• Duties of governor/regent/mayor to provide Business Licensing service in accordance with applicable legislations concerning administration of Risk-Based Business Licensing
• Implementing Stages on conducting business activity consist of:
1. Preparatory; and
2. Operational and/or commercial stages
|Government Regulation No. 6/2021 on Regional Business Licensing Administration (“GR 6/2021”)||• GR 6/2021 regulates regional government’s role in administering Business Licenses along with the central government.|
• Governors and mayors/regents delegate regional government’s authority in Business Licensing through their respective regional head of (provincial/municipal) Single-Window Integrated Service.
• Regional government’s administration of business licensing shall refer to regulation on risk-based business licensing.
• Further, GR 6/2021 regulates Administration of Regional Business Licensing which covers:
1. Authorities of Administration of Regional Business Licensing;
2. Implementation of Regional Business Licensing;
3. Regional Regulation and Head of Regional Government Regulation on Business Licensing;
4. Reporting of Regional Business Licensing;
5. Development and supervision;
6. Funding; and
7. Administrative sanctions.
|Government Regulation No. 7/2021 on Relaxation, Protection, and Empowerment of Cooperatives and Micro, Small and Medium-Sized Enterprises (“GR 7/2021”)||• GR 7/2021 regulates: |
1. Facilitation, Protection and Empowerment of Cooperatives, which covers:
a. Facilitation in Operating Cooperatives
b. Cooperatives Business
c. Protection of Cooperatives
d. Policy regarding Cooperative Development in Certain Sectors.
2. Facilitation, Protection, and Empowerment of Small-Sized Enterprises, which covers:
a. Facilitation in Operating Micro and Small-Sized Enterprises (“MSE”) including the criteria for MSMEs, Risk-Based Business Licensing, Single Licensing and Facilitation for Standard Certificate and/or Permit
b. Protection of MSEs in the Provision of Legal Assistance Service for MSEs and Revitalization of MSEs
c. Empowerment of MSMEs
d. Business Development
e. Coordination and Controlling of Facilitation, Protection, and Empowerment of MSMEs.
3. Partnership, which covers:
a. Incentives for Partnership
b. Partnership Patterns
c. Partnership Agreement
d. Role of Central and Regional Governments in Partnership
e. Partnership Supervision, Procedures for Imposing Administrative Sanctions.
|Government Regulation No. 8/2021 on Authorized Capital of Companies and Registration of Establishing, Amending, and Dissolving Companies Fulfilling Requirements for Micro and Small-Sized Enterprises (“GR 8/2021”)||• GR 8/2021 regulates: |
1. The Criteria of limited liability for micro and small-sized enterprises, which consists of:
a. A company established by 2 (two) or more persons; and
b. Single-member limited liability company established by 1 (one) person. The amount of authorized capital is set by the company’s decision.
2. The establishment of Single-member limited liability company and its provisions, such as requirements for establishment, amendment on single-member limited liability company establishment, financial report, and its dissolution.
|Government Regulation No. 9/2021 on Taxation Treatments to Support Ease of Doing Business (“GR 9/2021”)||• GR 9/2021 regulates: |
1. Taxation affairs in supporting Ease of Doing Business in the scopes of Income Tax.
2. Adjustment of regulations to support Ease of Doing Business in the following fields:
a. Income tax concerning calculation of taxable income tax and payment of income tax in a running year;
b. Value-added tax; and
c. General regulations and methods on taxation.
|Government Regulation No. 10/2021 on Regional Taxes and Retributions in Supporting Ease of Doing Business and Regional Services (“GR 10/2021”)||• GR 10/2021 regulates: |
1. Adjustment of tax and retribution tariffs concerning:
a. National strategic projects that have been granted with tariff adjustment facility;
b. Types of adjusted tax and/or retribution;
c. Amount of tariff adjustment;
d. Implementation of tariff adjustment;
e. Time period;
f. Regions conducting tariff adjustment.
2. Evaluation of draft Regional Regulations, Provincial and Regency/Municipal Regulations concerning taxes and retributions, supervision of Regional Regulations concerning taxes and retributions, incentive support for implementing Ease of Doing Business.
|Government Regulation No. 11/2021 on Village-Owned Enterprises (“GR 11/2021”)||• GR 11/2021 regulates:|
1. The type of Village-Owned Enterprise (Badan Usaha Milik Desa) (“VOE”) and Joint Village-Owned Enterprise (Badan Usaha Milik Desa Bersama).
2. The provisions of VOE and Joint Village-Owned Enterprises regarding its establishment, articles of association and by-laws, organization and employees, ownership, capital, asset and loans, loss, responsibility, and cessation of business activity.
3. Data gathering, ranking, nurturing and developing VOEs/Joint Village-Owned Enterprises.
|Government Regulation No. 12/2021 on Amending Government Regulation No. 14/2016 on Administration of Housings and Housing Complex (“GR 12/2021”)||• GR 12/2021 obligates legal corporations handling housing and residential construction to realize Proportional Housing Complex. Proportional Housing Complex includes:|
1. Large-scale housing (at least containing 3,000 (three thousand) houses; and
2. Other-scale housing (containing between 100 (one hundred) and 3,000 (three thousand) houses.
• GR 12/2021 amends:
2. Standards and general provisions regarding house planning and designing result;
3. Supervision of standard on infrastructures, facilities, and public utilities according to their respective authority;
4. Classifications of house, namely luxury house, middle-class house, and basic house; and
5. Funds from conversion result, construction of single housing, apartments, and flats, and responsibilities for house construction.
|Government Regulation No. 13/2021 on Administration of Flats (“GR 13/2021”)||• GR 13/2021 obligates Commercial Flat Developers to provide Public Flat with the size of at least 20% of total space used for Commercial Flat.|
• GR 13/2021 regulates:
1. Types, utilization, and provision of Flat;
2. Functional plan license and utilization of flats and its amendment;
3. Construction standard for flats and Separation of Flat
4. Utilization of wakaf land for Public Flat;
5. Minimal service standard for public infrastructure;
6. Ownership of Flat Unit (Satuan Rumah Susun, Sarusun) in Special Flat;
7. Form and methods on issuing Ownership Certificate for Flat Unit (Sertifikat Hak Milik Satuan Rumah Susun, SHM Sarusun);
8. Form and methods on issuing Ownership Certificate for Flat Unit; form and methods on issuing Building Ownership Certificate for Flat Unit (Surat Kepemilikan Bangunan Gedung Satuan Rumah Susun, SKBG Sarusun);
9. Renting of Flat Unit on State Flat;
10. Diversion, criteria, and methods on granting ease of ownership for Public Flat Unit ownership;
11. Administration of Flat, transitional period, and methods on first-time handover;
12. Legal Entity Business Licensing for management of Flat;
13. Association of Flat Unit Owners and Residents (“PPPSRS”);
14. Quality improvement of Flats, Controlling of Flat Management;
15. Forms and methods on incentive granting for Public and Special Flat Developers, including support and easiness for Low-Income Society; and
16. Administrative sanctions, including its methods and amounts.
|Government Regulation No. 14/2021 on Amending Government Regulation No. 22/2020 on Implementing Regulation of Act No. 2/2017 on Construction Services (“GR 14/2021”)||• GR 14/2021 regulate types of businesses for Construction Services, namely:|
1. Construction consulting service;
2. Construction work; and
3. Integrated construction work.
• GR 14/2021 mainly regulates:
1. Definitions under Article 1;
2. Partial administration of Central Government authority in collaborating with construction services society under Article 6;
3. Organizational structure of Construction Service Providing Body (“LPJK”), consisting of:
a. Board; and
4. Membership, financial right, LPJK facilities, structure, and construction service;
5. Competency requirement for Construction Workers, development of construction service.
|Government Regulation No. 15/2021 on Implementing Regulation of Act No. 6/2017 on Architect (“GR 15/2021”)||• GR 15/2021 regulates: |
1. Architect performance standards on the following scope of services:
a. General services and provisions;
b. Architectural early study drafting service;
c. Building and surrounding environment’s designing;
d. Building and surrounding environment’s conservation;
e. Planning on building and environment development;
f. Drafting of technical planning document;
g. Architectural aspect supervision on implementing building and surrounding environment’s construction.
2. Methods on issuance and repealing of Architect Registration Letter
3. Rights and Obligations of the License owner
4. Issuance and Extension of License
5. Methods on transfer of specialization and knowledge of foreign architects
6. Administration of administrative sanctions
|Government Regulation No. 16/2021 on Implementing Regulation of Act No. 28/2002 on Buildings (“GR 16/2021”)||• GR 16/2021 regulates:|
1. Building functions and classifications;
Building functions include:
a. Residential function;
b. Religious function;
c. Business function;
d. Social and cultural function; and
e. Special function.
2. Technical Standards consisting of:
a. Building Planning and Designing Standards;
b. Standards on Implementation and Supervision of Building Constructions;
c. Building Utilization and Demolition Standards;
d. Provisions on Implementation of Preserved Cultural Site Buildings;
e. Provisions on Special-Function Building (“BGFK”), Green Building (“BGH”), and State Buildings (“BGN”) Administration;
f. Provisions on Administration of State Buildings (“BGN”);
g. Provisions on Documents; and
h. Provisions on Actors of Building Implementation.
3. Building Administration process
4. Role of Society
5. Nurturing by Central Government, Provincial Regional Government and by Regency/Municipal Regional Government
• This GR amends the Building Permit (“IMB”) to Building Approval (“PBG”) in the construction of new buildings or related infrastructure, as well as to change, extend, reduce, and/or preserve buildings or its infrastructure.
|Government Regulation No. 17/2021 on Fourth Amendment to Government Regulation No. 15/2005 on Toll Roads (“GR 17/2021”)||• GR 17/2021 regulates:|
1. Availability of communication facilities, detection, and safeguarding steps against violation, accident, and other safety hindrances;
2. Availability of rest areas and service for toll road users’ interests;
3. Prohibitions and exceptions regarding rest and service areas to be connected with any access outside of toll roads; and
4. Rest and service areas that can be developed.
• Addition of Article 7A concerning:
1. Administration of rest and services areas to be conducted with accommodating micro, small and medium-sized enterprises through cooperation pattern;
2. Such administration shall provide ease of doing business and related relief;
3. Regulation on allocating spaces for Business Entities; and
4. Certificate of Micro, Small and Medium-Sized Enterprises.
• In using rest areas, MSMEs are accommodated through partnership with toll road operating businesses, where 30% (thirty percent) of total rest area space shall be allotted to MSMEs.
|Government Regulation No. 18/2021 on Management Rights, Land Rights, Flat Unit and Land Registration (“GR 18/2021”)||• GR 18/2021 regulates:|
1. Utilization Rights which covers:
a. Lands Eligible to be Granted Utilization Rights;
b. Subjects of Utilization Rights;
c. Utilization of Lands under Utilization Rights, Existence of Utilization Rights, Encumbrance, Transfer and Release of Utilization Rights and Land Rights above Utilization Rights, Loss of Utilization Rights;
d. Supervision and Control; and
e. Lands from Reclamation
2. Cultivation Rights, Building Rights, and Land Use Rights which covers:
a. Subjects of Cultivation Rights, Building Rights, and Land Use Rights;
b. Lands Eligible to be Granted Cultivation Rights, Building Rights, and Land Use Rights;;
c. Duration of Cultivation Rights, Building Rights, and Land Use Rights;
d. Existence of Cultivation Rights, Building Rights, and Land Use Rights;
e. Duties, Prohibitions, and Rights of Cultivation Rights, Building Rights, and Land Use Rights Possessor;
f. Encumbrance, Transfer, Release, and Amendment of Building Use Rights, Building Rights, and Land Use Rights; and
g. Loss of Cultivation Rights, Building Rights, and Land Use Rights.
3. Flat Unit, including Subjects of Flat Unit Ownership; Fragmentation and Combination of Flat Unit Ownership Rights and Housing for Foreigners
4. Land Rights or Utilization Rights for Above and Under-Ground Space
• Management rights are divided according to ownership (State and Tribal/ulayat), and are given to only tribal societies in terms of management rights of ulayat-owned land.
• Only Indonesian individuals and Indonesian-incorporated businesses can acquire business use and building rights.
• Foreigners and foreign corporations having representatives in Indonesia may be granted utilization rights
• Foreigners, foreign corporations and representatives of foreign States and international organization having representatives in Indonesia can also obtain Ownership Right of a Flat Unit.
|Government Regulation No. 19/2021 on Administration of Land Procurement for Development for Public Interest (“GR 19/2021”)||• GR 19/2021 outlines purposes of land development in Land for Public Interest |
• GR 19/2021 regulates:
1. Land Procurement for Public Interests, consists of:
a. General provisions;
b. Land Procurement Planning;
c. Land Procurement Preparation;
d. Implementation of Land Procurement;
e. Handing Over of Land Allocation Result;
f. Monitoring and Evaluation;
g. Source of Land Acquisition Funds;
h. Small Scale Land Acquisition; and
i. Tax Incentives.
2. Land Procurement for Easing of National Strategic Project
3. Electronic Land Procurement System.
|Government Regulation No. 20/2021 on Abandoned Land and Zone Regulation (“GR 20/2021”)||• Repeals Government Regulation No. 11/2010 on Regulation and Utilization of Abandoned Land.|
• GR 20/2021 regulates:
1. Duties of Holders of Permit/Concession/Business Permit and Holders of Rights, Land Use Rights, and Holders of Basis for Land Possession
2. Objects of Abandoned Zones and Land Control
3. Inventory of Zones and Lands Indicated to be Abandoned
4. Controlling of Abandoned Zones and Lands which covers:
5. Evaluation of Abandoned Zones and Lands
6. Notice on Abandoned Zones and Lands
7. Designing of Abandoned Zones and Lands
8. Utilization of Abandoned Zones and State General Reserve Land (“TCUN”) which covers Utilization of Abandoned Zones and Utilization of TCUN
• Land with Management Rights by tribal societies or are assets of Land Bank are exempt from abandoned land regulation.
|Government Regulation No. 21/2021 on Administration of Spatial Development (“GR 21/2021”)||• GR 21/2021 regulates administration of regulation on spatial development to include drafting and fixating of guide containing standards, procedures, and criteria on spatial development.|
• General spatial development plan as regulated in the GR includes:
1. National Spatial Development Plan;
2. Provincial spatial development plan;
3. Regency-level spatial development plan; and
4. Municipal spatial development plan.
• Further, GR 21/2021 regulates:
1. Spatial Planning which consist of:
a. Preparation of The General Spatial Plan;
b. Preparation of Detailed Spatial Plan;
c. Determination of General Spatial Plan;
d. Spatial Detailed Plan Assignment; and
e. Review and Revision of Spatial Plan
2. Space Utilization which consist of:
a. Implementation of Suitability for Space Utilization Activities
b. Implementation of space utilization programs
c. Space Utilization Control
d. Assessment of the implementation of the suitability of spatial use activities,
3. Assessment of Spatial Plan Embodiment
4. Incentives and Disincentives
5. Imposition of Sanctions, Spatial Disputes
6. Supervision and Construction of Spatial Planning;
7. Forms and Procedures for Spatial Planning
8. Spatial Planner Professional Development
9. Institutional Spatial Planning.
|Government Regulation No. 22/2021 on Administration of Environmental Protection and Management (“GR 22/2021”)||• GR 22/2021 regulates: |
1. Environmental Approval;
2. Protection and Management of Water Quality;
3. Air Quality Protection and Management;
4. Protection and Management of Marine Quality;
5. Control of Environmental Problems;
6. Hazardous waste management and non-hazardous waste management;
7. Guarantee fund for restoration of environmental functions:
8. Environmental Information System;
9. Guidance and supervision; and
10. Imposition of Administrative Sanctions.
|Government Regulation No. 23/2021 on Forestry Administration (“GR 23/2021”)||• GR 23/2021 regulates:|
1. Forestry Planning which includes:
a. Forest Inventory;
b. Inaugural Forest Area;
c. Forest Area Management;
d. Establishment of Forest Management Area;
e. Procedure for Establishing Conservation Forest Management Unit, Protected Forest Management Unit, and Production Forest Management Unit;
f. Adequacy of Forest Area; and
g. Forestry Plan Preparation.
2. Changes in The Allocation of Forest Areas and Changes in The Function of Forest Areas;
3. Use of Forest Areas;
4. Procedures for The Use of Forest Areas with Specific Purposes
5. Forest Governance and Forest Management Plan Preparation and Forest Utilization;
6. Social Forestry Management which includes:
a. Village Forest;
b. Community Forest;
c. People's Plant Forest;
d. Customary forest;
e. Forestry Partnership;
f. Acceleration of Social Forestry Management;
g. Social Forestry Management Financing;
h. Forest Protection; and
|Government Regulation No. 24/2021 on Methods regarding Administrative Sanction Implementation and Non-Tax State Income derived from Administrative Fines in Forestry (“GR 24/2021”)||• GR 24/2021 regulates:|
1. Inventory of data and information on business activities that have been built within forest areas that do not have a license in the field of forestry;
2. Procedures for settlement of palm oil plantation business activities that have been built in forest areas that have a location permit and / or business license in the field of plantations that do not have a license in the field of forestry;
3. Procedures for the imposition of Administrative Sanctions on business activities in Forest Areas that do not have permits in the field of forestry;
4. Procedures for calculating Administrative Fines; and
5. Administrative sanctions for business activities without business licensing for operation in Forestry Zone and related administrative fines, including in relation to its calculation and Non-Tax Government Income.
|Government Regulation No. 25/2021 on Administration of Energy and Mineral Resources Sector (“GR 25/2021”)||• GR 25/2021 regulates licensing and related technicalities, as well as administrative sanctions in relation to undertaking of business activity in these sub-sectors:|
a. Mineral and coal;
b. Geothermal; and
|Government Regulation No. 26/2021 on Administration of Agriculture Sector (“GR 26/2021”)||• GR 26/2021 regulates: |
1. Subsector of plantations, including plantation businesses; seeding; technical development and plantation business assessment
2. Plant variety protection rights application, which includes:
a. application procedure;
b. announcement of application for protection of plant varieties; and
c. substantive examination of application for protection of plant varieties.
3. Horticultural subsector which includes:
a. horticultural facilities;
b. quality standards and food safety horticultural business;
c. partnership pattern;
d. horticulture plant seeding business; and
e. horticulture product class system.
4. Subsector of animal husbandry and health
|Government Regulation No. 27/2021 on Administration of Maritime and Fisheries Sector (“GR 27/2021”)||• GR 27/2021 covers the following scopes for regulation:|
a. Changing of status of Core Zone (a part of Conservation Zone in protected shores and islets for habitation purposes and only can be utilized for scientific purposes);
b. Management of fisheries resources;
c. Fisheries Quality Standard;
d. Catchment and/or Cultivation of Fisheries within Fisheries Management Zone of the Republic of Indonesia not for commercial purposes;
e. Fisheries Vessel;
f. Fisheries Harbor affairs;
g. Operability Worthiness Certificate for Fisheries Vessel; and
h. Control of Fisheries import and Salt Commodities Import.
|Government Regulation No. 28/2021 on Administration of Industries (“GR 28/2021”)||• GR 28/2021 regulates:|
1. Raw materials and/or auxiliary materials, which includes:
a. Use of Raw Materials and/or Auxiliary Materials by Industrial Companies;
b. Ease to Obtain Raw Materials and/or Auxiliary Materials;
c. Administrative Sanctions;
d. Guarantee of Distribution of Raw Materials and/or Auxiliary Materials in the Country; and
2. Community participation in industrial development which includes:
a. Forms of Community Participation;
b. Community Participation in Planning; and
c. Implementation, and Supervision of Industrial Development.
3. Procedures for supervision and control of industrial business activities and business activities of industrial estates which includes:
a. Industrial Human Resources;
b. Utilization of Natural Resources;
c. Energy Management;
d. Water Management;
e. SNI, Technical Specifications, and/or Guidelines;
f. Industrial Data and Industrial Estate Data;
g. Green Industry Standards;
h. Industrial Estate Standards;
i. Business Licensing for Industrial Business Activities and Business Licensing for Industrial Estate Business Activities;
j. Safety and Security of Tools, Processes, Production Results, and Storage and Transportation;
k. Financing; and
l. Administrative Sanctions.
|Government Regulation No. 29/2021 on Administration of Trade (“GR 29/2021”)||• GR 29/2021 regulates the following issues relating to trade and its administration:|
1. Export and Import policy and control;
2. Utilization or equipment of labels in Bahasa Indonesia;
3. Distribution of Goods;
4. Trade facilities;
6. Export development;
7. Legal metrology; and
8. Supervision of Trade and Goods designated as Goods under Supervision.
• For trade purposes, Exporting and Importing entities shall possess relevant Business Registration Number.
|Government Regulation No. 30/2021 on Administration of Road Traffic and Transportation (“GR 30/2021”)||• GR 30/2021 regulates:|
1. The obligation for the construction plan of an activity center shall be subject to a Traffic impact analysis in accordance with the impact scale category of the resulting Traffic generation;
2. The implementation of testing for Motor Vehicles can be cooperated with state-owned enterprises, regional-owned enterprises, village-owned enterprises, and the private sector;
3. Cooperation between Central Government and Local Government with State-Owned Enterprises, Regional Owned Enterprises, Village-Owned Enterprises, Cooperatives, and Private Sector in the implementation of the Terminal
4. Business Licensing in the field of Traffic and Road Transportation
5. The provision of subsidies provided for public passenger transportation with motorized vehicles for economy class tariffs and goods transportation on certain routes.
|Government Regulation No. 31/2021 on Administration of Shipping (“GR 31/2021”)||• GR 31/2021 regulates: |
1. Arrangements regarding Transportation in the Waters, Port, Shipping, Navigation, procedures for notification of ship arrival, inspection, delivery, storage of letters, documents, and ship news;
2. Ship safety management which are some elements that plays an important and strategic role in the implementation of shipping and the national economy.
|Government Regulation No. 32/2021 on Administration of Aviation (“GR 32/2021”)||• GR 32/2021 regulates:|
1. Development and environmental preservation of the airport;
2. Airworthiness and operation of aircraft and air transport;
4. Flight navigation;
5. Safety management of airline service provider; and
6. Administrative sanctions.
|Government Regulation No. 33/2021 on Administration of Railways (“GR 33/2021”)||• GR 33/2021 regulates:|
1. Implementation of railways that include:
a. Licensing related to railway infrastructure;
b. Licensing related to railway facilities; and
c. Forms of business entities that can organize railways.
2. Procedures for Procurement of Business Entities of infrastructure providers, namely through tenders, direct appointments, and assignments
3. Requirements for the fulfillment of permits.
4. Administrative sanctions.
|Government Regulation No. 34/2021 on Utilization of Foreign Workforce (“GR 34/2021”)||• GR 34/2021 regulates: |
1. Obligations and prohibitions for foreign labor employers;
2. Ratification of the plan for the use of foreign workers which includes
a. Procedures for the application for ratification of the plan for the use of foreign workers;
b. Extension and amendment of ratification of the plan for the use of foreign workers, compensation funds for the use of foreign workers;
3. Foreign labor permits;
4. Education and job training for accompanying workers and foreign workers;
5. Reporting, coaching, and supervision; and
6. Administrative sanctions.
|Government Regulation No. 35/2021 on Periodical Work Agreement, Outsourcing, Working and Recess Hours, and Severance of Working Relations (“GR 35/2021”)||• GR 35/2021 regulates:|
1. Periodical Work Agreement for certain duration and for uncertain duration and the awarding of compensation money;
2. Outsourcing company (perusahaan alih daya);
3. Working time and rest time which includes working time in a particular business or employment sector; overtime time; overtime wages; long break;
4. Termination of employment which includes the procedure of termination of employment and the right due to termination of employment;
5. Employment supervision; and
6. Administrative sanctions.
|Government Regulation No. 36/2021 on Salary (“GR 36/2021”)||• GR 36/2021 regulates:|
1. Wage policy;
2. Wages based on units of time and/or results;
3. Wage structure and scale;
4. Minimum wage including the minimum wage of provinces and districts/cities;
5. Lowest wages in micro and small businesses;
6. Wage protection;
7. Form and method of wage payment;
8. Things that can be taken into account by wages i.e. fines and wage cuts;
9. Wages as the basis of calculation or payment of rights and other obligations; and
10. Wage board.
|Government Regulation No. 37/2021 on Administration of Job Loss Guarantee (“GR 37/2021”)||• GR 37/2021 obliges entrepreneurs to register their workers as members of Job Loss Guarantee program.|
• GR 37/2021 authorizes the Manpower Social Guarantee Organizing Body (“BPJS Ketenagakerjaan”) and the central government in conducting and administering the Job Loss Guarantee program.
• The benefits of Job Loss Guarantee program include:
1. Cash money;
2. Access to information on job market; and
3. Job training.
• Further, GR 37/2021 regulates:
1. Membership and registration procedures;
2. Dues and procedures for payment of dues;
3. Benefits of Job Loss Guarantee program;
4. Source of funding;
5. Employment supervision; and
6. Dispute resolution.
|Government Regulation No. 38/2021 on Deposit Account for Umra Pilgrimage (“GR 38/2021”)||• GR 38/2021 regulates:|
1. The obligation of Umrah Travel Operator (PPIU) to open a shelter account at sharia commercial banks and/or sharia business units that have cooperation with PPIU to receive a deposit of Umrah Travel Fee;
2. Deposit of fees relating to umra pilgrimage, where umra pilgrimage organizing agency (“PPIU”) shall maintain a deposit account for such pilgrimage.
|Government Regulation No. 39/2021 on Administration of Halal Product Warranty (“GR 39/2021”)||• GR 39/2021 obliges all products that are present, circulated, and marketed in Indonesia, to possess halal certificate (excepting products with haram materials).|
• GR 39/2021 regulates:
1. Halal product assurance operators;
2. Location, place, and process tools of halal products slaughter, processing, storage, packaging, distribution, sales presentation and distribution, sale and presentation of products derived from animals and non-animals
3. Halal inspection agencies and halal auditors including the Establishment, Accreditation, Scope of Activities, and Changes in data of Halal inspection agencies
• This regulation authorizes the creation of:
1. Administering Body for Halal Product Warranty (“BPJPH”);
2. Halal Supervisory Body (“LPH”).
|Government Regulation No. 40/2021 on Administration of Special Economic Zone (“GR 40/2021”)||• GR 40/2021 allows for creation of Special Economic Zone (“SEZ”) in the following locations, namely:|
1. New area;
2. Extension of existing SEZ; or
3. Entire or partial Free Trade and Free Port Zone (“KPBPB”).
• GR 40/2021 provides:
1. Establishment of SEZ in all or parts of KPBPB Batam, Bintan, and Karimun, taking their respective Zone Council’s recommendation into account.
2. MSMEs and cooperatives as both businesses and supporting entities for businesses situated in the SEZ.
• Central and regional governments (both at provincial and regency/municipal level) shall support designated and approved SEZs through provision of incentives and related infrastructures.
|Government Regulation No. 41/2021 on Administration of Free Trade Zone and Free Port (“GR 41/2021”)||• GR 41/2021 authorizes a KPKPB Managing Body to issue business permits for businesses within such zone, and to issue entry permit for Goods for Consumption relative to its designated types and total amount.|
• GR 41/2021 list the following fields for incentives regarding business activity in KPBPB:
1. Entry and exit of goods;
6. Prohibitions and limitations; and
7. Other facilities and relaxations.
• GR 41/2021 provides for creation of main plan for development of Batam, Bintan, and Karimun KPBPB.
|Government Regulation No. 42/2021 on Relaxation for National Strategic Project (“GR 42/2021”)||• GR 42/2021 allows for the following to obtain Relaxation Facilities regarding National Strategic Project (“NSP”):|
1. Central government;
2. Regional government, and/or;
3. Business Entities.
• In implementing relaxations for NSP, GR 42/2021 provides for Minister responsible for coordinating economic affairs to:
1. Coordinate planning and funding between ministries, bodies, regional governments, Business Entities, and/or other parties regarding tasks and functions for accelerating provision of NSP;’
2. Designate strategy and plan for acceleration of NSP;
3. Organize NSP priorities;
4. Facilitate for preparation of NSP;
5. Supervise and control implementing strategies and policies for accelerating provisions for NSP;
6. Facilitate for increasing capacity of apparatuses and organization regarding provision for NSP;
7. Facilitate for mitigation of problems relating to business permits and land allotment for NSP;
8. Coordinate optimization for utilization of NSP;
9. Coordinate designation of strategy relating to policies and approval for controlling social issues as proposed by minister/head of a body, governor, and regent/mayor;
10. Evaluate and nurture implementation of Consultant and Business Entities Panels formed by ministry/body;
11. Coordinate planning, development, and alternative funding scheme designation for NSP; and/or
12. Report development of NSP implementation to the President.
|Government Regulation No. 43/2021 on Mitigation of Incompatibility on Spatial Development, Forestry Zone, Permit, and/or Land Rights (“GR 43/2021”)||• GR 43/2021 regulates mitigation of incompatibility issues relating to Spatial Planning, Forestry Zone, Permit, Concession, Land, and/or Managing Right, occurring in relation with or within:|
a. Regional Limit;
b. Forestry Zone;
c. Zonal Spatial Development Plan (“RTRW”);
f. Land and/or Management Right;
h. Marine Spatial Development Plan (“RTRL”), Zonation Plan for Certain National Strategic Zone (“RZ KSNT”), Zonation Plan for Inter-regional Zone (“RZ KAW”), and/or Zonation Plan for Shore Areas and Islets (“RZWP-3-K”); and/or
i. Permit relating to Activities utilizing Marine Space.
|Government Regulation No. 44/2021 on Implementation of Ban on Monopoly and Unhealthy Business Competition (“GR 44/2021”)||• GR 44/2021 regulates:|
a. Authorities of Supervisory Commission on Business Competition (“Commission”);
b. Sanctions, including their criteria, types, and amounts; and
c. Investigation of objection and cassation against the Commission’s decision.
• In imposing sanctions, they are administrative in nature and:
a. Are equivalent to the level or effect from violations done by the related business;
b. Takes the business’ activity continuity into account;
c. Are based with clear grounds and reasoning.
|Government Regulation No. 45/2021 on Administration of Geospatial Information (“GR 45/2021”)||• GR 45/2021 covers the following scope of regulations:|
1. Types of geospatial information;
2. Administrator of geospatial information;
3. Administration of geospatial information;
4. Implementing entities on geospatial information sector;
5. Administration and updating of Basic Geospatial Information;
6. Nurturing of geospatial information; and
7. Administrative sanctions relating to geospatial information.
|Government Regulation No. 46/2021 on Post, Telecommunications, and Broadcasting (“GR 46/2021”)||• GR 46/2021 regulates:|
1. Administration of Post;
2. Administration of Telecommunications;
3. Utilization of Radio Frequency Spectrum; and
4. Administration of Broadcasting.
• Further, GR 46/2021 provides foreign postal administration to conduct postal activities in Indonesia under the following conditions:
1. Mandatory cooperation with domestic postal administrator through joint venture; and
2. Cooperation between foreign and domestic postal administrators are limited to operation within provincial capitals.
• Foreign postal administrators cooperating with domestic postal administrator through joint venture cannot conduct intercity deliveries.
• In regulating digital television, government to assist in providing set top boxes for low-income households to receive terrestrial digital television services
|Government Regulation No. 47/2021 on Administration of Hospitals (“GR 47/2021”)||• GR 47/2021 regulates:|
1. Hospital classification including:
b. Service Ability
c. Health Facilities and Supporting Facilities
d. Human Resources
e. Class Change
2. Hospital obligations
3. Hospital accreditation
4. Administrative sanction imposition procedures.
|Government Regulation No. 48/2021 on Third Amendment to Government Regulation No. 31/2013 on Implementing Regulation of Act No.6/2011 on Immigrations (“GR 48/2021”)||• GR 48/2021 amends multiple provisions to facilitate investor with ease of immigration, including by allowing investor to apply multiple visit visa for pre-investment purpose and allows immigration guarantee deposit as a substitute to letter of guarantee|
• The maximum duration for single and multiple visit permit is increased to 180 days.
• Single visit permit cannot be extended while multiple visit can be extended as long as the stay does not exceed 12 months
|Government Regulation No. 49/2021 on Tax Treatment for Transactions Involving Indonesian Investment Authority and/or Its Entities (“GR 49/2021”)||• GR 49/2021 regulates the treatment of Income Tax and Value Added Tax and/or Value Added Tax and Luxury Goods Tax treatment towards LPI and / or the entities it owns, including third parties involved in transactions with INA and/or its entities.|
• GR 49/2021 regulates that Indonesian Investment Authority (“INA”) is a domestic corporate tax subject while its entities may be either domestic or foreign tax subjects.
• INA and its entities shall register as taxable subjects.
|Government Regulation No. 73 of 2020 on Starting Capital of the Indonesian Investment Authority (“GR 73/2020”)||• GR 73/2020 is issued as the implementing regulation of Act No. 11/2020 on Job Creation.|
• GR 73/2020 outlines INA's starting capital to be at IDR 15,000,000.00 (fifteen trillion, Indonesian rupiah).
|Government Regulation No. 74 of 2020 on Indonesian Investment Authority (“GR 74/2020”)||• GR 74/2020 is issued as the implementing regulation of Act No. 11/2020 on Job Creation.|
• GR 74/2020 establishes INA and outlines its functions, authorities, and organization.
|Minister of Manpower Regulation No. 2/2021 on Implementing Salary Payment for Certain Labour-Intensive Industries during Corona Virus Disease 2019 (COVID-19) Pandemic (“MOMR 2/2021”)||• MOMR 2/2021 regulates salary payment mechanism for certain labour-intensive industries during COVID-19 pandemic.|
• Article 2 (1): The criteria for ‘certain labour-intensive industries’ are as follows:
a. Possess at least 200 workers.
b. Percentage of employee fee within production fee is at least 15%.
• ‘Labour-intensive industries’ as mentioned in Article 2 (1) are further specified to include:
a. Food, beverage and tobacco industry;
b. Textile and clothing industry;
c, Leather and leather goods industry;
d. Footwear industry;
e. Children toy industry; and
f. Furniture industry.
• Industries covered by the regulation may adjust the amount and method of salary payment for employees, based on an agreement between the Entrepreneur and the employees.
• Article 7 (2): the agreement must contain at least:
a. Amount of salary;
b. Method of salary payment; and
c. Duration of applicability, lasting until at the latest on 31 December 2021.
• In force until 31 December 2021.
|Presidential Regulation No. 2/2021 of 2021 on Ratification of the Convention Abolishing the Requirement of Legalisation for Foreign Public Documents (“PR 2/2021”)||• PR 2/2021 ratifies the Convention Abolishing the Requirement of Legalisation for Foreign Public Documents (“the Convention”).|
• PR 2/2021 include two annexes covering Indonesian translation of the Convention and the combined French-English version of the Convention.
• PR 2/2021 binds Indonesia as a party to the Convention, where Indonesia shall exempt certain other party’s public documents from legalisation in Indonesia.
• Documents of other State parties to the Convention that shall be exempted from legalisation in Indonesia include:
a. documents emanating from a State’s court/tribunal (including from public prosecutor, clerk, process-server/huissier de justice);
b. administrative documents;
c. notarial acts; and
d. official certificates on documents signed by persons in private capacity.
• In force.
Download (Indonesian translation of the Convention)
Download (Original version of the Convention)
|Minister of Communications and Information Regulation No. 1/2021 of 2021 on Second Amendment of Minister of Communications and Information No. 13/2019 on Provision of Telecommunication Services ("MCITR 01/2021")||• MCITR 01/2021 now regulate types of telecommunication services that might exist in the future (including Other Value-Added Telephony Services and Other Multimedia Services).|
• Other forms of telecommunications services can be regulated in the future, depending on technological advances and healthiness of telecommunications industry.
• Telecommunication services provider (TSP) shall begin commercial operation 120 days after obtaining Business License (as opposed to Minister of Communications and Information Regulation No 13/2019, where such operation shall commence after the license is effectively applicable).
• TSPs have to comply with Business License requirements according to Indonesian regulations (as opposed to complying with Provider License requirements provided by the Minister of Communications and Information in the previous regulation).
• In force.
|Minister of Finance Regulation No. 3/PMK.08/2021 of 2021 on Amending Minister of Finance Regulation No. 149/PMK.08/2018 on Buyback of Government Bonds (“MoFR 03/PMK.08/2021”)||• MoFR 03/PMK.08/2021 allows for buyback of government bonds through debt switching in creating ‘new issuance’ series of government bonds and/or ‘reopening’ of bonds as replacement government bond series.|
• The Bank of Indonesia (“BI”) is now included as parties to which the government can exercise buyback of government bonds. BI’s sale of government bonds can only be offered directly to the government without going through the Main Dealer.
• New addition Article 21A regarding adjusting/setting of price for buyback of government bonds; to be regulated through a Decision of the Directorate-General of Funding and Risk Management.
• In force.
|Minister of Agrarian and Spatial Affairs/Head of the National Land Agency Regulation No. 1/2021 of 2021 on Electronic Land Certificate ("MoASA/HNLAR 01/2021")||• MoASA/HNLAR 01/2021 regulates the issuance of electronic land certificate for both first-time spatial/land registration and transition from original (printed) land certificate.|
• In force.
|Decision of the Minister of Energy and Mineral Resources No. 22.K/MG.03/MEM.M/2021 on Indonesian Crude Oil Price Promulgation for January 2021 (“MoED 22.K/MG.03/MEM.M/2021”)||• MoED 22.K/MG.03/MEM.M/2021 serves to set prices for Indonesian primary and secondary crude oil produces.|
• The rate of Indonesian crude oil price under this regulation is set at US$ 53.17/barrel.
• In force.
|Minister of Finance Regulation No. 09/PMK.03/2021 of 2021 on Tax Incentive for Taxpayers Affected by Coronavirus Disease 2019 (“MoFR 09/PMK.03/2021”)||• MoFR 09/PMK.03/2021 regulates that taxpayers are subjected to a final income tax of 0.5% from gross total circulation, and is borne by the government.|
• Incentives are given for the duration of January 2021 until June 2021, which also includes exemption from income tax for imported goods.
• In force.
|Minister of Finance Regulation No. 06/PMK.03/2021 of 2021 on the Calculation and Collection of Value-Added Tax and Income Tax on Submission/Income for Sales on Mobile Phone Balance, SIM Card, Token and Voucher (“MoFR 06/PMK.03/2021”)||• MoFR 06/PMK.03/2021 is issued as an implementation regulation of several Acts (namely, Act No. 8/1983 on Income Tax (as amended by Act No. 36/2008), Act No. 8/1983 on Value-Added Tax for Goods and Services and Luxury Goods Sales Tax (as amended by Act No. 42/2009), Act No. 39/2008 on State Ministries, and Act No. 11/2020 on Job Creation), as well as two regulations (Presidential Regulation No. 57/2020 on Ministry of Finance, and Minister of Finance Regulation No. 217/PMK.01/2018 on Organization and Working Outline of the Ministry of Finance (as amended by Minister of Finance Regulation No. 229/PMK.01/2019).|
• Mobile phone balances and SIM cards, as well as electricity tokens, are subjected to value-added tax under this regulation.
• Additionally, rewards such as voucher, points, or cash money are subjected to income tax, which also apply to sales of mobile phone balances and SIM cards.
• In force.
|Minister of Finance Regulation No. 04/PMK.03/2021 of 2021 on Payment of Stamp Duty, General and Specific Characteristics of Adhesive Stamp Duty, Stamp Duty in Other Forms, and Determination of Validity of Stamp Duty, and Post-Dated Stamp Duty (“MoFR 04/PMK.03/2021”)||• MoFR 04/PMK.03/2021 regulates that stamp duty is set at a fixed rate of IDR 10,000.00 (ten thousand rupiah).|
• Stamps made pursuant to Minister of Finance Regulation No. 65/PMK.03/2014 are still valid until 31 December 2021, where such stamps (of adhesive nature) are attached to documents valued at least IDR 9,000.00 (nine thousand rupiah).
• In force.
|Government Regulation No. 01 of 2021 on Assessment Method for Non-Tax-Derived Government Incomes (“GR 01/2021”)||• GR 01/2021 is issued as the implementing regulation of Act No 9 of 2018 on Non-Tax-Derived Government Incomes (“Act 09/2018”).|
• This Government Regulation deals with issues pertaining to explanation of methods in assessing Non-Tax-Derived Government Incomes (“PNBP”).
• In force.
|Act No. 11 of 2020 on Job Creation (“Act 11/2020”)||• Act No. 11/2020 serves the main purpose of job creation, as well as easing investments and business conducts in Indonesia.|
• Divided into several chapters and sectors, which amend multiple acts in one regulation.
• Act No. 11/2020 also establishes INA.
• In force.