New Regulation on Contributions Made by Companies Operating Universal Postal Services
Postal-service management companies are required to pay contributions when providing any universal postal-services. With this in mind, the Ministry of Communication and Informatics has now issued Regulation No. 4 of 2017, which sets out a number of further provisions relating to the mechanism which is to be used when calculating and collecting such contributions. The new regulation also addresses the verification and examination of paid contributions, as well as the various companies responsible for such payments. In addition, the regulation also sets out sanctions for non-compliance with the various provisions contained therein.
New Guidelines for the Utilization of Renewable Energy to Meet National Energy-Security Targets
In order to offer updated guidelines on the utilization of renewable energy for the generation of electrical power and therefore meet the national energy security target of lower levels of carbon dioxide in the environment, the Ministry of Energy and Mineral Resources (“Ministry”) has issued No. 12 of 2017 on the Utilization of Renewable Energy for the Procurement of Electrical Power. The new regulation addresses a number of important matters relating to the utilization of renewable energy, including maximum purchase prices, the due-diligence processes which are to be undertaken prior to purchase, domestic component levels and standards for power plants, the transparency of PLN, standards for power purchasing agreement, and sanctions for the delayed development of renewable-energy based power plants.
New Guidelines on Operational Feasibility Certificates for Fishing Vessels
With the goal of redefining the requirements for operational feasibility certification for fishing vessels in mind, the Ministry of Marine Affairs and Fisheries has issued Regulation No. 1/PERMEN-KP/2017 on Operational Feasibility Certification for Fishing Vessels. This regulation eliminates the obligation for small fishermen and fish farmers to obtain SLOs, while simultaneously stipulating stricter requirements for other types of fishing vessels, particularly fish transportation vessels.
Government Regulates Natural Gas Utilization by Power Plants
The Ministry of Natural Resources has issued Regulation No. 11 of 2017 on Natural Gas Utilization by Power Plants in order to ensure a higher level of natural-gas utilization by power plants owned by PT PLN, as well as private businesses involved in the running of power plants and which are bound by power-purchasing agreements with PT PLN. The regulation will also ensure that all such natural gas is obtained at competitive yet fair prices. With these aims in mind, the regulation in general sets out a number of provisions relating to supplies of natural gas, sale-and-purchase agreements, prices and distribution tariffs.
Ministry of Transportation Relaxes Age Limitations for Commercial Aircraft
With the ultimate objective of creating a more favorable investment climate within Indonesia’s aviation sector, the Ministry of Transportation has issued Regulation No. PM 155 of 2016 on Aircraft Age Limitations for Commercial Flights, which sets new age limits for commercially operated aircraft. This area was previously regulated under Ministerial Regulation No. PM 160 of 2015 on the Rejuvenation of Aircraft for Commercial Aviation, as well as under Ministerial Regulation No. PM 7 of 2016 as its amendment. The new regulation applies to transportation planes, freighters, normal planes and commuter planes, as well as helicopters, utility planes and aerobatic planes, which were not regulated under the previous regulations.
Ministry of Finance Tightens up Provisions Relating to Primary Dealers
Following the revocation of JP Morgan Chase’s status as a primary dealer of Indonesian government bonds, the Ministry of Finance has issued Regulation No. 234/PMK.08/2016 as a second amendment to Ministerial Regulation No. 134/PMK.08/2013 on Primary Dealers. This second amendment mainly aims to tighten up the provisions which relate to the organization of primary dealers. This has been achieved by adding a number of new factors to be taken into account during the appointment of any dealers, as well as a new obligation to notify the government as regards any restructuring activities and also the obligation to maintain a good relationship with the Indonesian government. Furthermore, this second amendment also adds more grounds for the revocation of any primary-dealer appointments
OJK Redefines Regulation on the Business Activities of Guarantee Institutions
Following the issuance of Law No. 1 of 2016 on Guarantees, the Financial Services Authority has issued Regulation No. 2/POJK.05/2017 on the Business Organization of Guarantee Institutions. In essence, this new regulation sets out further provisions which address the various business activities which are engaged in by guarantee institutions. The regulation also addresses the mechanisms underlying the provision of such guarantees, as well as a number of other relevant topics, including: service fees, claim reserves, submissions and payments, transfers of claim rights, equity, investment activities, financial soundness, the utilization of information technology, supporting institutions, mandatory reporting and administrative sanctions.
E-Commerce Undertaken Through User-Generated Content Platforms Regulated
The endless rise of commercial activities involving user-generated-content platforms has spurred the Ministry of Communication and Informatics to issue Circular Letter No. 5 of 2016 on the Limitations and Responsibilities of Platform Providers and Merchants Who Engage in Electronic Commerce While Utilizing User-Generated-Content Platforms. This circular basically outlines the various types of products which are prohibited from being traded through user-generated-content (UGC) platforms, along with the various obligations and responsibilities of UGC platform providers and the merchants who trade through such platforms.
New Divestment Procedures for Foreign Mining Companies
The Ministry of Energy and Mineral Resources recently issued Regulation No. 9 of 2017 which sets out further guidelines for foreign mining companies regarding their compliance with the obligation to gradually divest 51% of their total shares within five years of their fifth production year. These guidelines set out the procedures involved in the offering of shares to Indonesian parties, as well as the procedures to be followed when determining share prices and when paying for any divested shares.
OJK Regulates Bank Ownership Caps
In a bid to strengthen Indonesia’s banking sector, the Financial Services Authority has formulated a number of provisions which address ownership caps for commercial banks within Indonesia. With this goal in mind, the OJK has issued Regulation No. 56/POJK.03/2016 on the Ownership of Bank Shares, which repeals and replaces Bank Indonesia Regulation No. 14/8/PBI/2012 on the same matter.