MLR-E11-V4

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Edition 11 Vol. 4, 30/11/2016
ISSN: 2442-5990
Letter from Editor
This month, the nation’s focus has mainly been upon the allegation of blasphemy which has been leveled
at Jakarta Governor, Basuki Tjahaja Purnama (who is popularly known as Ahok). An estimated 100,000
people showed up for the huge anti-Ahok rally which took place on 4 November 2016, and those at the
demonstration were demanding that Ahok, who is currently running as a candidate for governor of the
capital, be put on trial. Moreover, in the wake of Ahok being officially named as a suspect on 16
November 2016, the situation has not improved. Indeed, if anything, the situation has escalated and,
according to the Indonesian Police Force, accusations of treason are now being leveled at the incumbent
governor, while there have also been calls for mass withdrawals of money from local banks by the
general public. Such a run on the nation’s banks may ultimately harm Indonesia’s economic stability.
Ahok may have stolen the spotlight this month, however November 2016 was also marked by a number of
other important events. To begin with, the second phase of the tax-amnesty program got underway, and
this second phase will draw to a close at the end of December 2016. After targeting many of the biggest
players in the business, the second phase of the tax amnesty is now focusing upon any small- and
medium-scale enterprises which enjoy substantial amounts of business turnover. During the October to
November 2016 period, at least 55,000 taxpayers participated in the tax-amnesty program, and 70% of
these participants consisted of small- and medium-scale enterprises.
Moving on, in the energy sector this month, the Ministry of Energy and Mineral Resources redefined a
provision relating to electrical tariffs for both households and businesses, and also addressed the issue of
subsidized tariffs for low-income citizens. Also in the energy sector, oil-and-gas contractors now have
greater certainty to rely on as regards reimbursements of value added tax and luxury-goods sales tax by
the government, an issue which was previously considered unclear.
Within the financial sector, the marketplace can now look forward to an increasingly vibrant future
thanks to FinTech (the government’s new finance-and-technology initiative). Several of the country’s
non-bank players are already actively involved in offering various payment services, as well as loan
facilities, to the general public. Against this background, Bank Indonesia has now issued a regulation in
order to standardize the various technology-based services offered by payment-system organizers. It is
now the Financial Services Authority’s (OJK) turn to start regulating this sector and to attempt to create
greater certainty for both businesses and consumers.
As part of our commitment to providing a comprehensive but easily digestible survey of any recent
updates which are made to Indonesia’s overall regulatory framework, this edition of Monthly Law Review
highlights the key aspects covered by 60 regulations. For ease of access, we have classified these various
regulations into a number of groups, specifically: Trade, Manufacturing and Industry, Energy and Mineral
Resources, Financial Services, Taxation, Telecommunications and Media, General Corporate and
Miscellaneous.

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Trade
1. Head of the Indonesian Commodities Futures Trading Supervisory Agency Regulation (BAPPEBTI) No.
7 of 2016 on the Mandatory Submission of Transaction Records and Financial Reports by Organizers
of Alternative Trading Systems
Enforcement date: 2 November 2016
Summary:
• Organizers of Alternative Trading Systems are required to submit transaction records (log files
and customer-transaction histories) as well as financial statements to the Head of BAPPEBTI via
email (in the case of transaction records) or through e-reporting (in the case of financial
statements) on a monthly, quarterly and annual basis.
• Transaction records and financial-statement reports must be submitted within seven days (for
monthly reports), 45 days (for quarterly reports) and 90 days (for annual reports) of the end of
any reporting period.
Financial Services
2. Bank Indonesia Regulation No. 18/40/PBI/2016 on the Organization of Payment-Transaction
Processing
Summary:
• Sets out guidelines for businesses working with financial technology (Fintech) as regards the
provision of payment-system services. These guidelines specifically address: 1) Service
providers; 2) Licensing and approval from Bank Indonesia; 3) Obligations; 4) Mandatory
reporting; 5) License transfers; 6) Supervision, prohibition and sanctions.
• Foreign businesses may only invest in Limited-Liability Companies (Perseroan Terbatas) to an
amount of up to 20% of the total share ownership (either direct or indirect ownership). Such
foreign businesses should be working as principal, switching providers, clearing providers and/or
final settlement providers.
• Any banks or non-banks which are looking to become organizers of electronic wallets (e.g. so as
to deal with card payments and/or electronic money) must: 1) First secure a license from BI; 2)
Possess at least 300,000 existing or prospective active users and customers; and satisfy various
feasibility requirements.
• For further information, see ILB No. 3010.
3. Bank Indonesia (BI) Circular Letter No. 18/25/DPU on the Organization of Rupiah Currency
Processing Services

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Summary:
• Sets out detailed provisions for organizers of rupiah-currency processing services, specifically:
1) Establishment requirements; 2) Licensing procedures; 3) Submission of business reports; 4)
Establishment of branch offices; 5) Corporate actions; and 6) Termination of business activities.
• In order to secure an official PJPUR license from BI, applicants must satisfy the following
requirements: 1) General requirements (i.e. must be in the form of a limited-liability company,
must be in a healthy financial condition and so forth) along with the relevant required
documents; and 2) Must submit a written application in Bahasa Indonesia which has been signed
by the Board of Directors (BOD).
• Organizers of rupiah-currency processing service companies must adhere to various facility and
infrastructure (machinery) standards, packaging standards, as well as risk-management
measures.
4. Bank Indonesia (BI) Circular Letter No. 18/24/DPM on Open-Market Operations
Enforcement date: 31 October 2016
Summary:
• Set out guidelines for transactions which relate to Open-Market Transactions, comprising of: 1)
The issuance of Bank Indonesia Certificates (SBI); 2) The issuance of Bank Indonesia Deposit
Certificates (SDBI); 3) Repurchase-agreement (REPO) transactions involving commercial papers;
4) Reverse-REPO transactions involving state commercial papers (SBN); 5) The sale and purchase
of SBN through secondary-market outright transactions; 6) Foreign-exchange transactions
involving SBN; 7) Rupiah deposit terms; 8) Foreign-exchange deposit terms; 9) Spot
transactions; 10) Swap transactions; 11) Forward transactions; 12) The implementation of
abnormal conditions during open-market operations.
• SBI and SDBI will be auctioned through the Bank Indonesia Electronic Trading Platform System
(BI-ETP) through the use of fixed-rated tenders or variable-rate tenders. Interested parties
should submit their offers for the purchase of SBI or SDBI either directly or through an
intermediary agency. The minimum offer price is set at IDR 1 billion, which then rises in
increments of IDR 100 million.
• The characteristics of any REPO that can be auctioned by BI are: 1) The transfer of ownership
should be undertaken through the sell-and-buy-back principle; 2) the tenor should be set at
between one day and 12 months; 3) A simple interest-rating system should be used; and 4) The
collection rights for any coupon securities should remain with the party participating in the
money-market operations.
5. Financial Service Authority (OJK) Regulation No. 35/POJK.05/2016 on Procedures for Issuing Written
Orders for the Insurance Sector
Summary:

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• The Head of the Non-Bank Financial Institution Supervisory at the OJK may issue written orders
to insurance companies, including to their controllers, statutory organizers and/or certain
parties involved in the insurance in question. Such written orders can be dismissed if the
receiver of any written order has already complied with the order.
• Non-compliance with any written orders will become subject to administrative sanctions in the
form of: 1) Written warnings; 2) Limitation of business activities; 3) Restrictions on the
marketing of any insurance products to certain business fields; so forth.
6. Ministry of Finance Regulation No. 161/PMK.01/2016 of 2016 on the Amendment to Ministry
Regulation No. 61/PMK.01/2016 (“Regulation 61/2016”) on Procedures for the Procurement of
Legal Consultation Services in Response to International Arbitration Lawsuits Filed by Indian Metals
& Ferro Alloys Limited
Summary:
• Legal-consultant candidates for the handling of any lawsuits filed by Indian Metals & Ferro Alloys
Limited against the government are now required to sign statement letters stating their
compliance with the code of conduct which applies to the limited-assessment process.
• Any technical and general proposals made by any candidates will be subject to an assessment
process during the examination period (previously the assessment process only applied to
technical and financial proposals).
• The presentation phase, which is a part of the examination process, will be assessed by the
Handling Team. In cases where Handling Team members are unable to attend, the Amendment
allows for the Handling Team to appoint Echelon II Officials (minimum) to act on behalf of the
relevant Handling Team members.
7. Bank Indonesia Regulation No. 18/21/PBI/2016 on the Amendment to Bank Indonesia Regulation No.
9/14/PBI/2007 on the Debtor Information System
Summary:
• Debtor information now encompasses: debtor data, the owners and managers of debtors,
financing facilities utilized by any debtors, collateral, guarantors and collectability. This
information may now be requested by Credit Information Management Institutions, in addition
to informers, debtors or other specific parties.
• Commercial banks and other financial institutions (collectively referred to as “Informers”) are
obliged to submit reports containing information relating to any debtors (“Debtors’ Reports”)
and/or their corrections to Bank Indonesia.
• Informers are now obliged to implement information-disclosure measures by notifying debtors
regarding the inclusion of funding provisions within the debtors’ information system (“System”).

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Furthermore, they are also required to accommodate debtors’ complaints as regards any
information which is stored within the System, and all such complaints should be settled within
20 business days of them being received.
• Late submissions of reports will be subject to fines of up to a maximum of IDR 3.6 million for
commercial banks and IDR 900,000 for other types of Informers.
8. Bank Indonesia Regulation No. 18/20/PBI/2016 on Non-Bank Foreign-Exchange Currency Activity
Enforcement date: 7 October 2016 (with the exception of Arts. 12, 13, 19 and 21, which come into
force on 7 April 2017
Summary:
• Non-bank, foreign-exchange currency organizers (“Money Changers”) are now authorized to
engage in the following activities: 1) The trading of foreign banknotes; 2) The purchase of
traveler’s checks; and 3) Other activities which relate to the exchange of foreign currency, as
permitted by Bank Indonesia.
• In specific regard to the exchange of foreign banknotes amounting to above USD 25,000, Money
Changers are only allowed to trade foreign banknotes amounting to above USD 25,000 with
other Money Changers or with banks, provided that they are supported by underlying
transactions. Such underlying transactions can be either domestic or international and include
the sale of goods and services, as well as investments.
• In certain limited areas, Money Changers are now allowed to cooperate with parties who are
non-Money-Changers in order to purchase foreign banknotes, as long as said parties are
currently operating a hotel or other similar business, and provided that they have also secured a
license from BI.
• For more information, see ILB No. 3007.
9. Bank Indonesia Circular Letter No. 18/23/DSta on the Oversight of Foreign-Exchange and Customer
Traffic
Summary:
• Obliges banks to submit three types of reports relating to their foreign-exchange traffic (lalu
lintas devisa), including: 1) Transaction reports (all transactions which are made by banks
and/or their customers which affect the banks’ foreign financial assets (AFLN) and/or the
banks’ foreign financial obligations (KFLN); 2) Financial position reports; and 3) Supporting
reports (covering any export transactions). These reports and/or their amendments must be
submitted on a monthly basis to Bank Indonesia (“BI”).
• Banks must respond promptly to any requests for further clarification which are made by BI as
regards any of the information contained within the abovementioned reports within 12 business
days of receiving any such request.

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• Requires banks to only accept outgoing transfer requests of USD 100,000 or above which are
made by their clients if they are accompanied by relevant supporting documents, unless: 1) The
transaction in question is in the bank’s own interest; or 2) The transaction involves the transfer
of a customer’s funds to his/her own account in a domestic bank.
10. Financial Services Authority Circular Letter No. 44/SEOJK.05/2016 on Criteria for the Appointment
and Determination of Statutory Management and for the Termination or Substitution of Statutory
Management for Insurance, Sharia Insurance, Re-insurance and Sharia Re-insurance Companies
Summary:
• The OJK may take over the management of any financial-service company (“Company”) through
a process of statutory management in cases where: 1) The Company has put its stakeholders in a
hazardous financial position; 2) The Company has not been in compliance with the prevailing
laws and regulations; 3) The Company’s business operations have been restricted; etc.
• Any such process of statutory management must be undertaken by either individuals or legal
entities (“Managers”) which have been appointed by the OJK’s Board of Commissioners, after
certain considerations have first been taken into account. Any duties being undertaken by said
Managers will be discontinued if: 1) The OJK decides that they are no longer necessary; or 2) A
Company’s business license is revoked.
Miscellaneous
11. Governor of the Special Region of Jakarta Regulation No. 225 of 2016 on Levy Tariff Adjustments for
Maritime and Agricultural Services
Summary:
• Sets out a comprehensive list of new levy tariffs for businesses working in the Special Region of
Jakarta which are undertaking various maritime and agricultural activities, as described under
the Appendix to this regulation, including: 1) Tariffs for medical check-ups for animals in
slaughterhouses (IDR 75 - 10,000/animal); 2) Tariffs for the usage of any facilities (IDR 15,000-
24,000/m2/month); 3) Tariffs for veterinary clinics; 4) Tariffs for fishery facilities; and so forth.
12. Governor of Special Region of Jakarta Regulation No. 223 of 2016 on Levy Tariff Adjustments for
Cooperatives, and Micro- and Medium-Scale Business and Trading Services
Summary:
• Sets out a list of new levy tariffs for cooperatives, micro- and medium-scale business and
trading services in the Special Region of Jakarta, as detailed under the Appendix to this
regulation, such as: 1) Tariffs for measurement services; 2) Tariffs for the use of temporary

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business areas of less than 4m2
; 3) Tariffs for the use of the meeting room in the SME’s C
Jakarta building; 4) Tariffs for the use of production facilities or workshops; 5) Tariffs for
licensed premises selling alcoholic beverages; and so forth.
13. Supreme Court Regulation No. 11 of 2016 on Procedures for the Settlement of Disputes Relating to
State-Administration and Election-Administration Violations
Summary:
• Any head-of-regional-government candidates may file a lawsuit at their local High State
Administration Court (“PT-TUN”) in order to challenge any election results which are published
by regional election organizers (i.e. the election commission/KPU or the independent election
commission/KIP). Any such lawsuit must be lodged within three days of any decision made by a
regional election organizer being announced.
• PT-TUN must render a decision no later than 15 days after taking receipt of a complete lawsuit.
The losing party may submit a cassation application to the Supreme Court in order to challenge
the PT-TUN’s decision, and this must be done within five days of the decision being rendered.
The Supreme Court then has 20 days in which to settle the cassation application.
• Any party whose head-of-regional-government candidacy has been annulled by the relevant
regional-election organizer due to alleged administrative violations may submit a lawsuit to the
Supreme Court. This lawsuit must be lodged within three days of the annulment being
announced by the relevant regional-election organizers.
• The Supreme Court then has 14 days in which to settle the alleged violation-of-administration-
rules case and no further legal action can be taken in order to challenge any such cassation
decision.
14. Supreme Court Regulation No. 10 of 2016 on the Amendment to Supreme Court Regulation No. 3 of
2013 on the Settlement of State Losses at the Supreme Court and its Subsidiaries
Summary:
• The team which is established under this regulation will assist the Head of the Supreme Court
during the examination and handling of any cases involving State losses which are based on
reports which are made by the Supreme Audit Agency (BPK) and the Supreme Court Supervisory
Body; in Absolute Liability Letters (Surat Keterangan Tanggung Jawab Mutlak); in promissory
notes; and in Loss Compensation Decisions (Surat Keputusan Pembebanan).
• Any suspect who has allegedly caused losses to the State may be released if an investigation is
being undertaken by an ad-hoc team and if the State-Loss Counsel finds that no other unlawful
acts or omissions have been committed by the suspect.

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15. Governor of Special Region of Jakarta Regulation No. 211 of 2016 on the Acceleration of
Infrastructure Development and the Management of Light-Rail Transit Systems
Summary:
• Instructs PT Jakarta Propertindo to manage and develop infrastructure for the light-rail transit
system which will run along the Pekan Raya Jakarta – Kelapa Gading route, as well as the Kelapa
Gading – Velodrome Rawamangun route. Said infrastructure is to comprise of: 1) Railway lines;
2) Railway stations; 3) Operational facilities; and so forth.
• PT Jakarta Propertindo is allowed to cooperate with third parties, as long as said parties have
sound reputations and credibility within the sphere of light-rail transit, and are able to meet
world-class standards, as well as obey the prevailing laws and regulations.
16. Governor of the Special Region of Jakarta Regulation No. 207 of 2016 on the Control of
Unauthorized Land Use
Summary:
• Any requests to terminate the unauthorized use of any land which is owned by the government,
state-owned companies, individuals, legal entities and so forth, must be submitted by the
legitimate land user to the governor. The request must be supported by adequate land
certificates, information on the history of the land or other documents.
• After approval has been granted by the governor, the control over the land in question will be
enforced by the relevant mayor/regent with the support of the Civil Service Police Unit (Satpol
PP). Such control is to be enforced and processed in three stages: 1) Dissemination of relevant
information among the illegal occupants; 2) Issuance of notifications and warnings; and 3)
Control over the area being enforced (evictions).
• The cost for this control is to be borne : 1) Through the regional budget (for any land which is
owned by the regional government); or 2) By the applicant (for any land which is owned by
central government, state-owned companies, regional-government owned companies,
individuals and legal entities).
17. Governor of Special Region of Jakarta Regulation No. 210 of 2016 on Compensation for Excesses in
Floor-Area Ratios
Summary:
• Certain buildings (i.e. primary-activity centers, secondary-activity centers, central business
areas and so forth) which have excesses in their floor-area ratios (FAR) are required to provide
compensation in the form of public facilities, comprising of: 1) Urban open space; 2) Multi-
dwelling units; 3) Dams; and so forth.

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• In order to proceed with such compensation, the applicant is required to submit a proposal to
the governor via the One-Stop Service of the Special Region of Jakarta (BPTSP) and must also
meet various administrative and technical requirements. Any such proposal must be supported
by a number of administrative documents (i.e. copy of an identity card, tax-identification
number, deed of establishment, etc.), and must also meet a number of technical requirements
(AMDAL, development plan and traffic-impact analysis).
• Sets the formula which is to be used when calculating the value of any compensation proposed
by the applicant. This formula encompasses: index value (dependant on the applicant’s
location), size of the exceeded area, the floor-area ratio limitation, as well as the taxable-sale
object value (NJPOP) of the land on which the public facility is to be developed.
18. Governor of the Special Region of Jakarta Regulation No. 216 of 2016 on the Organization of Land
Procurement in the Public Interest
Summary:
• The Government of the Special Region of Jakarta may procure 5 hectares or more of land for
the construction of public facilities, based on: 1) A request being made by the priority program
of the regional task-unit (SKPD); or 2) An offer which is made by the public.
• The procurement of 5 hectares or more of land is to be implemented through planning stages
(drafting of a plan by the SKPD followed by submission to the governor) and preparation stages
(formation of a preparation team, site visit and public consultation).
• The procurement of land amounting to less than 5 hectares in area can be initiated by the SKPD
pursuant to the regional spatial layout plan or by the public.
• Land procurement amounting to less than 5 hectares in area and undertaken through an SKPD
program is to be implemented through the following phases: 1) The drafting of documents
relating to land-procurement planning; 2) The drafting of an application relating to the city-
plan information map; and 3) The submission of the application to the Regional Asset
Management Board (BPKAD).
19. Ministry of Environmental Affairs and Forestry Regulation No. P.70/Menlhk/Setjen/Kum.1/8/2016
on Quality Standards for Business Emissions and/or the Processing of Waste Using the Thermal
Method
Summary:
• Businesses who process waste using the thermal method must comply with the following
requirements: 1) Must not process any hazardous waste, including glass, polyvinyl chloride (PVC)
or aluminum foil; 2) Must satisfy emissions standards, as regulated under Appendix I to this
regulation; 3) Must undertake emissions monitoring; 4) Must manage data and information

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relating to emissions monitoring; 5) Must manage any fugitive emissions; 6) Must prepare
countermeasures in case of air-pollution emergencies.
• Any emissions-monitoring regime should encompass: 1) The drafting of a plan outlining the
monitoring of any emissions; 2) The monitoring of any emissions; 3) Calculations of emissions
and combustion performance; and 4) The drafting of reports relating to the monitoring of
emissions.
20. Government Regulation No. 47 of 2016 on Health-Service Facilities
Summary:
• Classifies health-service facilities into three categories, namely: 1) First-tier service/primary
healthcare (providing basic healthcare services); 2) Second-tier/advanced healthcare (providing
specialist healthcare services); and 3) Third-tier healthcare (providing subspecialist healthcare
services).
• Sets out 10 types of health-service facilities, namely: 1) Independent clinics; 2) Rural clinics; 3)
Clinics; 4) Hospitals; 5) Drug stores; 6) Blood-transfusion units; 7) Health labs; and so forth.
• Regional governments should determine the number of healthcare-service facilities in their
respective regions by taking the following factors into consideration: 1) Size of the region; 2)
Healthcare needs; 3) Distribution of population; 4) Social functions; and so forth (these
considerations do not apply to quarantine, research or mental hospitals).
• Requires organizers of healthcare-service facilities to secure licenses prior to the rendering of
any services to the general public. Such licenses should be secured from: 1)
Governor/regent/mayor (for general healthcare facilities); or 2) The Ministry of Health for
certain healthcare facilities (e.g. facilities which are built through foreign-investment activity,
class A hospitals, hospitals offering complex services, etc.).
21. Government Regulation No. 46 of 2016 on Guidelines for the Implementation of Strategic
Environmental Assessments
Summary:
• Mandates that central and regional governments should implement Strategic Environmental
Assessments (Kajian Lingkungan Hidup Strategis – “KLHS”) during the drafting or evaluation of:
1) Regional spatial-layout plans; 2) Any policies which could potentially harm the environment
(i.e. land-, sea- or air-utilization programs which could lead to climate change, reductions in
biodiversity, species extinctions etc.); 3) Coastal-area and small-island zoning plans; and so
forth.
• Sets out a number of implementation stages for KLHS, specifically: 1) Drafting and
implementation stage (i.e. assessments of the consequences that a given policy may have upon

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the environment, revisions to the policy, etc.); 2) Quality-assurance and documentation stages;
and 3) Validation stage, to be undertaken by the Ministry of Environment and Forestry (for
national/provincial-level policy) or by the relevant Governor (for regency/city-level policy).
22. Ministry of Health Regulation No. 52 of 2016 on Health-Service Tariff Standards for the
Implementation of the Social-Security Program for Health
Summary:
• Sets out different tariff types for First Level/Primary Healthcare Facilities (Fasilitas Kesehatan
Tingkat Pertama – “FKTP”), specifically: 1) Capitation tariff (i.e. tariffs covering service
administration, examinations and medical consultations, non-specialist medical treatments,
etc.); and 2) Non-capitation tariffs (i.e. tariffs for ambulance services, first-class inpatient
services, family-planning programs, etc.).
• Sets the applicable range of tariffs for FKTP, namely: 1) IDR 3000 – 6000/person/month for rural
clinics; 2) IDR 8000 – 10,000/person/month for D Class hospitals, primary clinics, family-doctor
clinics or equivalent facilities; and 3) IDR 2000/person/month for individual dentists.
• Sets the applicable range of tariffs for Advanced Healthcare Facilities (Fasilitas Kesehatan
Rujukan Tingkat Lanjutan– “FKRTL”), including: 1) Indonesian Case-Based Group (“INA-CBG”)
tariffs (inpatient and outpatient tariffs across five different regions; and 2) Non-INA-CBG tariffs
(i.e. supporting healthcare equipment, drugs for the treatment of chronic diseases, etc.).
• FKRTL tariffs will be charged for the following services: 1) Blood services; 2) Forensic-clinic
services; 3) Family-planning services; 4) Intensive/non-intensive inpatient services; 5) Service
administration; and so forth.
23. Ministry of Health Regulation No. 48 of 2016 on Health and Safety Standards for Office Workers
Summary:
• Requires office heads and/or building managers to implement Health and Safety Standards
(Keselamatan dan Kesehatan Kerja – “K3”) for office workers, including: 1) Establishment and
development of K3 management systems (i.e. K3 planning, supervision and evaluation, etc.);
and 2) Implementation of K3 standards for office workers (i.e. work health and safety, working-
environment health and safety, as well as office ergonomics).
• Mandates that the management of office buildings should submit quarterly reports on the
implementation of K3 for office workers (including reports on any cases which relate to K3, such
as work accidents) to the building owner, with copies also being sent to the Ministry of Health,
the relevant provincial health department, as well as the relevant health department at the
regency/city level.

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24. Ministry of Health Regulation No. 40 of 2016 on Technical Guidelines for the Utilization of Cigarette
Taxes in Order to Fund Public-Health Services
Summary:
• At least 75% of any allocated funding for public-healthcare services which derives from cigarette
taxes must be used for the following activities: 1) Health promotion; 2) Risk-reduction efforts
relating to communicable and non-communicable diseases; 3) Nutrition; 4) Family health; 5)
Environmental health; 6) Control of cigarette consumption and the consumption of other
tobacco products; 7) Improvements to primary-healthcare services, and so forth.
• Sets out details of five methods which can be utilized in order to realize the abovementioned
goals, specifically: 1) Social empowerment; 2) Advocacy; 3) Partnerships; 4) Medical and non-
medical human-resource development; and 5) Facility and infrastructure planning for social
health.
25. Ministry of Agrarian Affairs and Spatial Planning/Head of National Land Agency Regulation No.33 of
2016 on Licensed-Cadaster Surveyors
Summary:
• Any individuals who wish to be appointed by the Ministry of Agrarian Affairs and Spatial Planning
(“Ministry”) as licensed cadaster surveyors or as assistants of licensed cadaster surveyors must:
1) Be Indonesian citizens; 2) Be in possession of a bachelor’s degree in mapping (for cadaster
surveyors) or a diploma in mapping surveys (for licensed-cadaster assistants); 3) Have undergone
cadaster-surveyor training; 4) have passed a cadaster-surveyor examination; and so forth.
• Licensed-cadaster surveyors may set up licensed cadaster-surveyor service offices (Kantor Jasa
Surveyor Kadaster Berlisensi – “KJSKB”) in the form of: 1) Individual offices; or 2) Commercial
partnerships (firma).
• KJSKBs are authorized by the Ministry to undertake the following duties: 1) Planning and
management of land surveys and mapping (for the purpose of land registration, land-data
maintenance, land procurement in the public interest, etc.); and 2) Management of the results
of any surveys or mapping activities within a Protocol Book.
• Cadaster-surveyor licenses are valid for two years and can be extended for a further five years.
26. Law No. 16 of 2016 on the Ratification of the Paris Agreement to the United Nations Convention on
Climate Change Framework
Summary:

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• Indonesia is bound to a commitment to: 1) Ensure that the increase in the average global
temperature remains below 2o
C above pre-industrial levels and pursue efforts to limit the
temperature increase to 1.5o
C above pre-industrial levels; 2) Initiate green developments; 3)
Channel sustainable funding to green developments; and 4) Set a national contribution target in
order to realize the convention framework.
27. Law No. 15 of 2016 on the Ratification of the Maritime Labor Convention 2006
Summary:
• Indonesia is bound to comply with the provision on international employment standards for the
shipping industry, covering: 1) Minimum provisions for sailors who work on ships; 2) Working
conditions; 3) Accommodation, recreation facilities, food and catering; 4) Protections relating to
health, medical treatment, welfare and social security; and 5) Compliance and enforcement.
28. Presidential Regulation No. 88 of 2016 on the Ratification of the Agreement Between the
Government of the Republic of Indonesia and the European Union on Certain Aspects of Air Service
Summary:
• This Agreement sets out authorities, permissions, refusals, revocations and limitations of
authorizations and permissions for the Indonesian Government as regards EU member-state air
carriers.
• Indonesia must grant aviation-authority access in appointed EU member states as regards the
supervision and issuance of official Aviation Operation Certificates to the Indonesian aviation
industry. Consequently, Indonesia is also bound to adhere to the various safety requirements
which have been set by EU member states.
• EU member states are prohibited from imposing discriminatory tax policies, levies, duties, fees
or charges on any fuel which is supplied within their territory for use by aircraft currently
owned by designated Indonesian air carriers which are operating within EU states.
29. Presidential Regulation No. 87 of 2016 on the Illegal-Levies Eradication Task Force
Summary:
• Establishes a task force for the optimization of the work of officers who are employed by
ministries, as well as by regional governments, with regard to the eradication of illegal-levies.
This task force will be directly supervised by the President.
• The task force has several authorities, specifically: 1) The creation of prevention and
eradication systems as regards illegal levies; 2) The collection of data and information from
government institutions and other parties through the use of information technology; 3) The

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coordination, preparation and execution of operations relating to the eradication of illegal
levies; 4) The imposition of restraining measures upon any employees who are caught
demanding illegal-levies during the course of their work; and so forth.
• The general public can also participate in this attempt to eradicate illegal levies by supplying
information and reports to the relevant authorities through the use of electronic or non-
electronic media
30. Ministry of Agrarian Affairs and Spatial Planning/Head of National Land Agency Regulation No. 32 of
2016 on Quality-Control Systems for Land, Agrarian and Spatial Programs
Summary:
• Introduces Quality-Control Systems for Land, Agrarian and Spatial Programs (Sistem Kendali
Mutu Program Pertanahan, Agraria dan Tata Ruang – “SKMPP”), specifically an electronic
mechanism for the monitoring and evaluation of the Ministry’s program.
• The persons in charge (PIC) of the SKMPP are the Secretary General of the Agrarian and Spatial
Programs, the Head of the National Land Agency’s regional office and the Head of the Land
Office). The SKMPP is managed by the Head of the Planning and Cooperation Bureau, the Head
of Administration at the National Land Agency’s regional office and the Head of the
Administration Sub-Division at the Land Office.
• Sets out several activities which are to be undertaken by the SKMPP, covering: 1) The filing and
realization of physical and budgetary targets; 2) The updating of relevant data; 3) Supervision;
4) Data input relating to office profiles; 5) The management of SKMPP applications; and 6) The
utilization of any SKMPP results.
31. Ministry of Transportation Regulation No. PM 123 of 2016 on the Amendment to Ministry Regulation
No. PM 171 of 2015 on Procedures for the Servicing of Foreign Yachts in Indonesian Waters
(“Amendment”)
Summary:
• Adds one new seaport which can officially offer facilities (relating to customs, immigration,
quarantine and seaports) to the owners of foreign yachts, namely Tarempa Port (Anambas, Riau
Islands). This new port adds to the already existing list of 18 officially designated seaports
(which includes Sabang Seaport, Belawan Seaport, Nongsa Point Marina, Benoa Seaport and so
forth).
32. Ministry of Transportation Regulation No. 23/PERMEN-KP/2016 on Management Planning for Coastal
Areas and Small Islands
Enforcement date: 4 August 2016
Summary:

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• Management planning for coastal areas and small islands (“Management Plan”) encompasses
the following matters: 1) Strategic Planning for Coastal Areas and Small Islands (RSWP-3-K); 2)
Zoning Planning for Coastal Areas and Small Islands (RZWP-3-K); 3) Management Planning for
Coastal Areas and Small Islands (RPWP-3-K); 4) Action Planning for Coastal Areas and Small
Islands (RAPWP-3-K).
• RSWP-3-K is the benchmark which is to be used during the formulation of RZWP-3-K, RPWP-3-K
and RAPWP-3-K. RSWP-3-K are to be drafted by provincial governments in several phases,
including: 1) Establishment of a working groups; 2) Data collection and processing; 3) Creation
of initial documents; 4) Public consultations; 5) Creation of final documents; and so forth.
• RZWP-3-K are to be drafted with reference to: 1) The National Marine Spatial Plan; 2) Marine
area-zoning plans; and 3) RSWP-3-K or Long-term Regional Development Plans (Rencana
Pembangunan Jangka Panjang Daerah – “RPJPD”) which relate to coastal areas or small islands.
33. Ministry of Transportation Regulation No. 24/PERMEN-KP/2016 on Procedures for the Rehabilitation
of Coastal Areas and Small Islands
Enforcement date: 5 August 2016
Summary:
• Sets out the various measures which must be undertaken by both central/regional governments,
as well as by the various parties who utilize coastal areas and small islands, as regards the
rehabilitation of the following ecosystems: 1) Coral reefs; 2) Mangroves; 3) Estuaries; 4)
Lagoons; 5) Gulfs; 6) Sand dunes; 7) Beaches; and/or 8) Fish populations.
• The rehabilitation of coastal areas and small islands is to be implemented in three stages: 1)
Planning (i.e. identification of the causes of any damage, identification of the level of any
damage and the creation of a rehabilitation plan); 2) Implementation (i.e. enrichment of
biological resources, habitat improvement, protection of marine species and environmentally
friendly stewardship); and 3) Maintenance (i.e. maintaining the biotic component of ecosystems
and populations, preserving the balance of the physical environment, etc.).
Telecommunications and Media
34. Ministry of Communication and Informatics Regulation No. 18 of 2016 on Requirements and
Procedures for the Procurement of Broadcasting Licenses
Enforcement date: 5 February 2016
Summary:
• Stipulates various types of broadcasting institution, specifically: 1) Public Broadcasting
Institutions (Lembaga Penyiaran Publik – “LPP”); 2) Private Broadcasting Institutions (Lembaga
Penyiaran Swasta – “LPS”); 3) Community Broadcasting Institutions (Lembaga Penyiaran
Komunitas – “LPK”); and 4) Subscription-based Broadcasting Institutions (Lembaga Penyiaran
Berlangganan – “LPB”).

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• Sets out the various types of Broadcasting License (Izin Penyelenggaraan Penyiaran – “IPP”) that
must be secured by broadcasting institutions prior to engaging in any broadcasting activities,
including: 1) IPP for Radio of the Republic of Indonesia ; 2) IPP for Television of the Republic of
Indonesia; 3) IPP for private radio/TV broadcasters; 4) IPP for community radio/TV
broadcasters; etc.
• Sets out various requirements which have to be met when establishing LPP, LPS, LPK and LPB,
for example: 1) Must be established by Indonesian citizen(s) (for LPS, LPK and LPB); 2) Must be
in the form of a limited-liability company (for LPS); 3) Must only engage in the types of radio/TV
broadcasting activity which are stipulated in its Deed of Establishment (for LPS); and 4) All of
the initial capital involved must be owned by an Indonesian individual/legal entity (for LPS).
• Sets out the various documents which are required in order to secure the relevant license for
LPP, LPS, LPK and LPB, including: 1) Application letter; and 2) Administrative documents (e.g.
copies of the managers’ residency ID cards, copies of their taxpayer identification numbers, and
so forth).
General Corporate
35. Governor of the Special Region of Jakarta Regulation No. 227 of 2016 on the 2017 Provincial
Minimum Wage
Summary:
• Sets a minimum-wage threshold which is applicable in Jakarta of IDR 3,355,750 per month,
which comes into force on 1 January 2017.
• The minimum-wage threshold is not applicable to certain industrial sectors, which are to be
further determined.
• Businesses can postpone their mandated minimum-wage threshold payments by submitting an
application to the head of the employment office for the Special Region of Jakarta, along with
various supporting documents, at least 10 days prior to 22 December 2016.
36. Government Regulation No. 45 of 2016 on the Second Amendment to Government Regulation No. 45
of 2014 on Types and Tariffs of Non-Tax State Revenue Applicable to the Ministry of Law and Human
Rights
Summary:
• Annual patent-service fees for micro-, small- and medium-scale enterprises (Usaha Mikro, Kecil,
Menengah – “UMKM”), educational institutions and governmental research-and-development
agencies have been set at 10% of the relevant Non-Tax State Revenue (Penerimaan Negara
Bukan Pajak – “PNBP”) tariff, as stipulated in the Appendix to the Amendment.

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• Amends three provisions which relate to service fees, specifically: 1) Reduces the PNBP tariff
for the approval of company names to IDR 100,000 from the previous fee of IDR 200,000; 2)
Divides the PNPB tariff for the validation of limited-liability companies into three categories,
based upon the relevant authorized capital amount (up to IDR 25 million, IDR 25 million – IDR 1
billion, and more than IDR 1 billion); and 3) Describes a new service package which encompasses
simultaneous application submissions for the approval of company names and the validation of
limited-liability companies.
• Amends two provisions relating to the services which apply during bankruptcy cases, including:
1) Changes to the PNBP tariffs for bankruptcy settlements, which are divided into four
categories (debt of less than IDR 50 billion, IDR 50 billion - IDR 250 billion, IDR 250 billion - IDR
500 billion, and debt of more than IDR 500 billion); and 2) Sets a new PNBP tariff for bankruptcy
cases which are to be settled by a receiver.
37. Presidential Regulation No. 90 of 2016 on the Agency for the Improvement of the Management of
Drinking-Water Systems
Summary:
• Establishes an official Agency for the Improvement of the Management of Drinking-Water
Systems (Badan Peningkatan Penyelenggaraan Sistem Penyediaan Air Minum – “BPPSPAM”),
which will support central and regional government during any attempts which are made by
state/regional-owned drinking-water businesses to improve the management of drinking-water
systems.
• Sets out the main duties of BPPSPAM, including: 1) Assessing the performance of
state/regionally owned enterprises working in the drinking-water business; 2) Providing
recommendations to central and regional government as regards improving the management of
drinking-water systems and ensuring balance between drinking-water businesses and their
customers; and so forth.
• BPPSPAM members must satisfy the following requirements: 1) Be Indonesian citizens; 2) Be
domiciled within Indonesia; 3) Possess competency and knowledge of drinking-water systems
and/or relevant sanitation systems; 4) Be under 60 years of age; etc.
Tax
38. Director General of Tax Regulation No. PER-21/PJ/2016 on Procedures for the Revocation of Tax-
Declaration Letters
Summary:
• Taxpayers who have submitted tax-declaration letters (“Declarations”) and/or secured tax-
amnesty approval letters (“Approvals”) may request revocations of their Declarations in cases

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where: 1) Their incomes fall below a certain threshold; or 2) They are only in possession of
additional assets as a result of an inheritance and/or grant.
• Revocations require taxpayers to submit revocation letters, alongside copies of their most
recent annual tax returns, to the relevant tax-service office where they are registered, within
the following timeframe: 1) Before 30 October 2016, if an Approval was issued before 22
September 2016; 2) Within 30 days of any Approval being issued, in cases where Approvals were
issued after 22 September 2016; or 3) Within 30 days of a taxpayer receiving the Approval in
question, if they are currently still waiting for an Approval to be issued.
• In cases where a revocation is granted, the Head of the Directorate General of Tax’s regional
office will issue a notification letter within 10 business days of any such revocation letter being
received. Consequently, Approvals and/or their receipts will no longer be considered valid.
39. Director General of Tax Regulation No. PER-20/PJ/2016 on Procedures for the Issuance and Delivery
of Tax-Amnesty Approval Letters
Summary:
• The Head of the Directorate General of Tax’s regional office (“Head”) will issue tax-amnesty
approval letters (“Approvals”) within 10 business days of receiving receipts or temporary
receipts for tax-declaration letters (“Declarations”). However, if official Approvals have still
not been issued after this period, then the Declarations will be automatically approved and the
Head must issue the relevant Approvals within the following three business days.
• Approvals are to be delivered via postal/expedition/courier services. If taxpayers have not
received the relevant Approval within 30 working days of them being sent, then taxpayers are
entitled to pick up the relevant Approvals directly from the tax-service offices at which said
taxpayers are registered, after first submitting a request to the office head.
40. Governor of the Special Region of Jakarta Regulation No. 193 of 2016 on 100% Transfer-Duty
Exemptions for the Acquisition of Rights over Land and Buildings Through Sales-and-Purchase
Transactions or Through the Granting of Land Rights for the First Time and/or the Imposition of 0%
Transfer Duty for the Acquisition of Rights over Land and Buildings Through Inheritance or Wills for
Taxable Objects Valued up to IDR 2 Billion
Summary:
• Sets out two new tax facilities which relate to the obligation for individual taxpayers to pay
duty on the acquisition of any land-and-building rights (bea perolehan hak atas tanah dan
bangunan – “BPHTB”) for any land and/or buildings for which the maximum tax-object sale
value (nilai jual objek pajak – “NJOP”) is IDR 2 billion, including: 1) 100% BPHTB exemptions for
any land and/or buildings which are acquired through a sales-and-purchase mechanism or as a
result of a first-time entitlement; and 2) 0% imposition of BPHTB for any land and/or buildings

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which are acquired through inheritance or through a grant-with-testament (hibah wasiat)
mechanism.
• Individual taxpayers who intend to acquire such tax facilities must submit their requests to the
Head of the Provincial Tax-Services Office for the Special Region of Jakarta (“Head of Tax
Office”) and they will be processed within three days. If no confirmation is given within this
timeframe, then applications will be automatically accepted.
• For more information see ILB No. 2997.
41. Government Regulation No. 41 of 2016 on Article 21 Income-Tax Treatment for Income Generated
by Employees Working for Employers Who Meet Certain Criteria
Summary:
• Employees who meet the following criteria are required to pay an income-tax tariff of 2.5%: 1)
Earn an annual taxable income of a maximum of IDR 50 million based on income-tax reports
covering the period from July 2016 until January 2017; 2) Work for employers who meet certain
criteria, including: are involved in the production of footwear and/or textile and textile
products, employ at least 2,000 employees, cover their employee’s income tax, have exported
at least 50% of their annual sales value over the course of the last year, and so forth.
• If the employer’s annual taxable income reaches more than IDR 50 million, then the excess of
income will be subject to a 15% level of final income tax.
42. Government Regulation No. 40 of 2016 on Taxes Levied upon Income Derived from the Transfer of
Real Estate Through Certain Types of Collective Investment-Contract Schemes
Summary:
• Taxpayers who receive earnings relating to the transfer of real estate to either a special-
purpose company (SPC) or collective-investment contract (KIK) through the imposition of certain
schemes (i.e. real-estate investment funds) are required to pay 0.5% of any final income tax
which is levied upon the gross value of the transfer of any real estate.
• An SPC is a limited-liability company (PT) for which 99.9% of the paid-up capital is owned by a
real-estate investment fund in the form of a collective-investment contract and which is
established in the interests of the real-estate investment fund.
• Taxpayers are required to pay the income-tax in question before the deed or agreement on the
transfer of any real estate is approved by the relevant authorities, and also to undertake the
following activities: 1) Submit a notification letter to the head of the tax office regarding the
transfer of real estate along with its required documents; and 2) Secure a fiscal letter from the
tax office.

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43. Ministry of Finance Regulation No. 158/PMK.02/2016 (“Amendment”) on the Amendment to
Regulation No. 218/PMK.02/2014 on Procedures for the Reimbursement of Value-Added Tax or
Value-Added Tax and Luxury-Goods Sales Tax for Taxable Goods and/or Services to Upstream Oil-
and-Gas Contractors
Summary:
• Any reimbursement can only be undertaken if the oil-and-gas contractors in question have
already settled the state’s portion of any product-sharing contract (PSC) in the form of either
First Tranche Petroleum (FTP) and/or Split Equity (Equity). If the state’s portion does not
include FTP, then the amount of the reimbursement must not be greater than the amount of
equity, as stated in the PSC.
• Any PPn and/or PPnBM which applies to the operation of Liquefied Petroleum Gas refineries can
be reimbursed, provided that this is stated in a cooperation contract and/or under the relevant
laws and regulations.
Manufacturing and Industry
44. Ministry of Industry Regulation No. 72/M-IND/PER/10/2016 on the Second Amendment to Ministry
Regulation No. 12/M-IND/PER/2/2013 on the Appointment of the Product Certification Agency and
Testing Laboratories for the Implementation and Oversight of the Mandatory Indonesian National
Standard for Refined Sugar
Summary:
• Adds three new accredited Product Certification Agencies (Lembaga Sertifikasi Produk – LSPro),
as stipulated in Appendix A to the amendment, namely: 1) PT. TUV Rheinland Indonesia; 2) PT.
SGS Indonesia; and 3) PT. Penilai Standar Indonesia.
• Adds one new accredited testing laboratory, as stipulated in Appendix B to the amendment,
namely PT. SGS Indonesia.
45. Ministry of Industry Regulation No. 71/M-IND/PER/10/2016 on the Third Amendment to Ministry
Regulation No. 11/M-IND/PER/2/2013 on the Appointment of the Product Certification Agency and
Testing Laboratories for the Implementation and Oversight of the Mandatory Indonesian National
Standard for Cocoa Powder
Summary:

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• Adds four new accredited Product Certification Agencies (Lembaga Sertifikasi Produk –
“LSPro”), as stipulated in Appendix A to the amendment, namely: 1) PT. TUV Rheinland
Indonesia; 2) PT. SGS Indonesia; 3) PT. Agri Mandiri Lestari; and 4) PT. Penilai Standar
Indonesia.
• Adds three new accredited testing laboratories, as stipulated in Appendix B to the amendment,
namely: 1) Technical Execution Unit at the South Sulawesi Department of Supervision and
Quality Control for Goods; 2) PT. SGS Indonesia; and 3) PT Angler BioChemLab.
• Adds a timeframe for the submission of reports by LSPro and testing laboratories, specifically:
1) Reports on the issuance, supervision and revocation of the mandatory Indonesian National
Standard for cocoa powder must be submitted within seven days of the issuance date; 2)
Reports on any Testing Certificates (Sertifikat Hasil Uji – “SHU”) which are implemented during
a given month must be submitted by no later than the fifth day of the following month; and so
forth.
46. Head of the Indonesian Commodities Futures Trading Supervisory Agency Regulation No. 6 of 2016
on Approvals from Clearing-House and Auction-Market Guarantors Using the Forward Method
Summary:
• All clearing-house and auction-market guarantors which are using the forward method
(“Institutions”) should be in form of limited-liability companies (perseroan terbatas) and must
meet the following minimum criteria: 1) Must be in possession of paid-up capital amounting to
at least IDR 100 billion; 2) Must have established institutional regulations and codes of conduct
which have first been approved by the Indonesian Commodities Futures Trading Supervisory
Agency (“BAPPEBTI”); 3) Must be equipped with proper facilities and infrastructure; and 4)
Must be working in cooperation with auction organizers as regards the use of the forward
method.
• Institutions are required to: 1) Collect funds from their members and deposit them in separate
accounts; 2) Guarantee the privacy of any information relating to the account balances and
business operations of their members; 3) Maintain data records covering all of the activities and
transactions undertaken by the relevant auction markets; and 4) Monitor members’ financial
activities and statuses.
• Existing Institutions which have already been approved by BAPPEBTI must adjust their levels of
paid-up capital in two phases: 1) Increase said capital levels to IDR 50 billion by 14 October
2017; and 2) Increase said capital levels to IDR 100 billion by 14 October 2018.
on the Organization of the Commodity Auction Market Through the Integrated-Market System
Summary:

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• The commodity auction market is to be organized through the use of an electronic integrated-
market system run by the Indonesian Commodities Futures Trading Supervisory Agency
(“BAPPEBTI”). This system may only be utilized by specific parties who have already secured
utilization approvals.
• The following requirements have to be met in order to secure utilization approvals: 1) Must be
equipped with sufficient means and infrastructure; 2) Must employ two or more information and
technology specialists; 3) Must submit various documents, as stipulated in Article 2 (3),
including applications to utilize the electronic integrated-market system, the CVs of the
applicant’s workers, etc.; and 4) Must have an official organizer’s license for the auction market
through the forward method (if any). BAPPEBTI will either approve or reject any such request
within 20 business days of the above requirements being met.
• After securing approval, approved parties are required to periodically submit information
and/or reports regarding the organization of the commodity auction market to BAPPEBTI.
on General and Technical Requirements for Closed Warehouses under the Warehouse Receipt
System
Summary:
• Divides closed-warehouses into the following four categories, based on commodity type: 1)
Agriculture; 2) Silos for agricultural commodities; 3) Fisheries; and 4) Special commodities.
• Sets standards that must be adhered to by all closed-warehouse organizers, specifically: 1)
Indonesian National Standard (SNI) for closed-warehouses, numbers (1) and (2); 2) SNI standard
number (3), as set out in the Appendix to the regulation for closed warehouses; and 3) SNI
standard number (4), as set out in the appendix to the regulation for closed warehouses.
• Closed warehouses will be ranked into A, B and C categories, based on the relevant
infrastructure criteria.
49. Ministry of Maritime and Fisheries Regulation No. 35/PERMEN-KP/2016 on Best Practices for Fish
Hatcheries
Summary:
• Requires all fish farmers who produce fish seeds to implement the Best Practices for Fish
Hatcheries (Cara Pembenihan Ikan yang Baik – “CPIB”) and to also secure official CPIB
certification from the Director General of Fish Cultivation.
• Sets out the various requirements which have to be met, as well as the documents which have
to be obtained in order to secure CPIB certification, including: 1) Copy of a Fish Hatcheries
Control Manager (Manager Pengendali Mutu Perbenihan – MPM) certificate; 2) Copy of a fish-

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farming business license; 3) Quality documents, as stipulated in Appendix I to this regulation
(i.e. general information relating to the applicant’s business, organizational structure,
production chain, facilities and infrastructure, human resources and document control).
• Official CPIB certification remains valid for one of three different periods, based on its passing
grade, as follows: 1) Excellent CPIBs will remain valid for four years; 2) Good CPIBs will remain
valid for three years; and 3) Standard CPIBs will remain valid for two years.
50. Ministry of Maritime and Fisheries Regulation No. 32/PERMEN-KP/2016 on the Amendment to
Ministry Regulation No. 15/PERMEN-KP/2016 on Live Fish Shipping Carriers
Enforcement date: 1 September 2016
Summary:
• Ships weighing 500 GT are now allowed to transport live fish from fish-cultivation centers.
Previously, the maximum ship weight for the transportation of live fish was set at 300 GT.
• No longer incorporates any provisions outlining the securing of Licenses for Fish Transportation
Vessels (Surat Izin Kapal Pengangkut Ikan – “SIKPI”) by foreign-fish transport vessels
(“Foreign Vessels”), as regards the transportation of live fish produced through fishing
activities (SIKPI-A-PT).
• Allows Foreign Vessels to enter Indonesian fishing territory a maximum of 12 times in a single
year. All Foreign Vessels which are intending to export live fish from Indonesian waters are
allowed to transit through four Loading Ports (Pelabuhan Muat Singgah). However, Foreign
Vessels which are intending to enter Indonesian territory are only allowed to transit through one
Loading Port.
Energy and Natural Resources
51. Ministry of Energy and Mineral Resources Regulation No. 33 of 2016 on Technical Settlements for
Land, Buildings and/or Plants Owned by Communities Living in Forestry Areas for the Purpose of
Accelerating Electrical Infrastructure Development
Summary:
• Authorizes the State Electricity Company (PT. Perusahaan Listrik Negara – “PLN”) and its
subsidiaries to undertake technical settlements for the procurement of land in forestry areas or
forestry areas owned by indigenous communities for the purpose of developing Electrical
Infrastructure (Pembangunan Infrastruktur Ketenagalistrikan – “PIK”) and through a
consideration of social needs and impacts.
• Sets out the various preparatory actions that must be carried out prior to the undertaking of any
technical settlement, including: 1) Requests for information on the relevant forestry areas from
the Ministry of Agrarian Affairs and Spatial Planning/National Land Agency; and 2) Dissemination
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• Allows PLN to use the services of the Appraisal Agency (“Agency”) in order to assess the land,
buildings and/or plants owned by the relevant communities. The Agency must first secure a
license from both the Ministry for Finance and the Ministry of Agrarian Affairs and Spatial
Planning.
52. Ministry of Energy and Mineral Resource Regulation No. 32 of 2016 on Guidelines for the Designation
of Geological Reserves
Summary:
• Sets out various types of and criteria for geological reserves, including: 1) Areas of rocks and
fossils (i.e. can be used as natural laboratories, contain rare/important fossil materials, etc.);
2) Landscape areas (i.e. barcan-type sand dunes, volcanic caves, etc.); 3) Geological-process
areas (i.e. areas containing natural flames, geysers, etc.).
• Sets out various stages for the designation of geological reserves: 1) Investigation phase, to be
undertaken by the Geological Institution in cooperation with regional research institutions,
university research institutions or international institutions (this phase encompasses data
collection and the mapping of the relevant geological-reserve objects); and 2) Determination of
geological reserves based on focus-group discussions involving stakeholders.
53. Ministry of Environmental Affairs and Forestry Regulation No.
P.81/MENLHK/SETJEN/KUM.1/10/2016 on Cooperation for the Utilization of Forestry Areas in Order
to Support Food Security
Summary:
• Sets out procedures for the utilization of forestry areas for food crops and livestock,
specifically: 1) Altering the designation of forestry areas, either through an exchange of
designation that takes place between forestry areas, or a complete annulment of the forestry-
area status; 2) Use of forestry areas through the borrow-to-use mechanism; 3) Forest
utilization; and 4) Cooperation.
• The development of any food crops or livestock is to be undertaken through agricultural
activities which take place within an area of production forest, and encompasses following types
crops: 1) Cane; 2) Rice; 3) Corn; and 4) Cattle.
• Food crops and livestock can be developed in forestry areas which possess Timber-Product
Utilization Permits for Natural Forest or Industrial Forest Areas (IUPHHK-HA or IUPHHK-HTI)
through a cooperation scheme which is engaged in by both the IUPHHK holder and its partner
(e.g. state/regionally owned enterprises, private businesses or cooperatives).
• The development of any forestry area through the cooperation mechanism covers the following
types of forest: 1) Forestry areas which possess utilization permits; 2) The working areas of
Public Service Forestry Companies (Perum Perhutani); 3) Certain areas under the supervision of

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the relevant Forestry Management Unit (Kesatuan Pengelolaan Hutan - KPH) and which are
located in the area of production forest in question.
54. Ministry of Energy and Mineral Resource Regulation No. 28 of 2016 on Electrical-Power Tariffs Set by
the Indonesian State Power Company (PT Perusahaan Listrik Negara Persero)
Enforcement date: 1 January 2017
Summary:
• Sets electrical-power tariffs (for both pre- and post-paid users) which are dependent on the
utilization purpose, including: 1) Tariffs for social services, as stipulated in Appendix I (i.e. ≤
220 VA - ≥ 200 kVA); 2) Tariffs for households, as stipulated in Appendix II (i.e. ≤ 450 VA - ≥
6,600 VA); 3) Tariffs for business purposes, as stipulated in Appendix III (i.e. ≤ 450 VA - ≥ 200
kVA); 4) Tariffs for industrial purposes, as stipulated in Appendix IV (i.e. ≤ 450 VA - ≥ 30,000
kVA); and so forth.
• There are several categories of tariff (e.g. tariff for small households utilizing low voltages,
tariff for medium-sized households utilizing low voltages, tariffs for medium-sized businesses
utilizing low voltages, etc.) which may be adjusted on a monthly basis after taking into account
the USD currency rate, the price of Indonesian crude and inflation.
• Tariff adjustments for small households in the low-voltage category (900 VA-RTM) come into
force on 1 July 2017. While other categories (e.g. medium-sized households utilizing low
voltages, medium-sized businesses utilizing low voltages, etc.) come into force on 1 January
2017.
55. Ministry of Energy and Mineral Resources Regulation No. 27 of 2016 on the Third Amendment to
Ministry Regulation No. 39 of 2014 on Calculations of Oil-Fuel Retail Prices
Enforcement date: 1 July 2016
Summary:
• Sets new subsidies for calculations of the gas-oil retail price (per liter): Basic price + Value
added Tax (PPN) and Motor Vehicle Fuel Tax/PBBKB (up to a maximum of 5%) – subsidy of IDR
500. The previous subsidy amount was set at IDR 1,000 (maximum).
• The retail price for kerosene must be set on a fixed basis. The kerosene subsidy will cover the
difference between the retail price and the basic price (including VAT) of kerosene.
• The retail price of gas oil and kerosene are to be determined by the Ministry on a regular basis
(every three months) or on an ad-hoc basis, if this is deemed necessary.
56. Ministry of Energy and Mineral Resources Decree No. 7436 K/12/MEM/2016 on the Retail Price for 3
kg Canisters of Liquefied Petroleum Gas for Small Fishermen
Summary:

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• Sets a retail price for 3 kg canisters of liquefied petroleum gas intended for use by small
fishermen of IDR 27,750 (including Value Added Tax).
57. Ministry of Energy and Mineral Resources Decree No. 7424 K/30/MEM/2016 on Benchmark
Production-Cost Components for Calculations of Basic Coal Prices for Mine-Mouth Power Plants
Summary:
• Sets out benchmarks for each production-cost component for the calculation of the basic price
of coal, including: 1) Direct production costs, covering overburden (USD 1.61 – 3.20/bcm), coal
excavation (USD 0.90 – 1.70/ton), coal transportation (USD o.20– 0.28/ton/km), etc.; 2) Indirect
production costs, covering coal processing (USD 1.19 – 1.98/ton), depreciation, amortization and
land acquisition (USD 1.00 – 6.88 /ton); and 3) General and administrative costs, covering
overheads (USD 1.66 – 2.07/ton), environmental supervision and management (USD 0.50 –
11.87/ton), fixed fees, total production costs, etc.).
58. Ministry of Finance Regulation No. 157/PMK.02/2016 (“Amendment”) on the Amendment to
Ministry Regulation No. 130/PMK.02/2015 on Procedures for Budget Allocations, Calculations,
Payments and Accountability for the Use of Subsidized Funding for Certain Types of Oil Fuel
Summary:
• The amount of any gas-oil subsidies are to be determined under the prevailing laws and
regulations and have been in force since 1 July 2016 (the subsidy currently stands at IDR 500
according to the 2016 Amendment to the State Budget and Expenditure/RAPBN). Previously, the
gas-oil subsidy was set at IDR 1,000.
59. Ministry of Energy and Mineral Resource Regulation No. 30 of 2016 (“Amendment”) on the
Amendment to Ministry Regulation No. 15 of 2015 on the Management of Oil-and-Gas Working Areas
During Final Cooperation Contract Periods
Summary:
• Allows for PT Pertamina or any relevant tender winner which is acting as the new operator of a
given working area to engage in necessary financing activity prior to the commencement of any
new operations, provided that: 1) The company complies with the relevant guidelines relating
to the financing and operational activities in question, as regulated by SKK Migas 2) Any such
cooperation contract has been signed; and 3) The company has secured an agreement between
itself and PT Pertamina or between itself and the former contractor. Any such agreement must
have been officially approved by SKK Migas.

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ISSN: 2442-5990
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• The operation of any activity financed by the new PT Pertamina or any relevant tender winner
must have been undertaken by the former oil-and-gas contractor prior the commencement of
the new contract.
• All of the relevant costs which are incurred either by PT Pertamina or by the new contractor
during the preparation of any operations and financing activities can be reimbursed based upon
a new cooperation contract.
60. Ministry of Energy and Mineral Resources Regulation No. 29 of 2016 on Procedures for the
Subsidizing of Electrical-Power Tariffs for Households
Summary:
• The State Power Company (PT Perusahaan Listrik Negara Persero – “PT PLN”) may grant
subsidies for electrical-power tariffs to the following groups: 1) Households using 450 VA of
electricity and 2) Low-income households using 900 VA of electricity who are listed on PLN’s
integrated consumer database.
• Households which currently utilize electrical power amounting to 1300 VA or more may request
that their capacity be reduced to 450 VA or 900 VA, provided that they are listed on PLN’s
integrated consumer database.
• Low-income households which do not currently have access to electrical power may submit
applications to secure 450 VA or 900 VA of electrical power directly to PT PLN.
• Consumers who currently utilize 900 VA of electrical power but who are not listed on PLN’s
integrated consumer database will be converted to 900 VA-RTM and may not be entitled to
enjoy any subsidized tariffs.
• Low-income households which do not yet enjoy any subsidized-electricity tariffs may submit
their complaints to their villages, districts, cities/regencies and central offices, as detailed in
the Appendix to the regulation.

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