New Procedures and Pricing Guidelines for the Utilization of Coal for Power Plants and for the Purchase of Excess Power
The government’s efforts to optimize Indonesia's electrification ratio continues. This time through the issuance of Ministry of Energy and Mineral Resources Regulation No. 19 of 2017 on the Utilization of Coal for Power Plants and the Purchase of Excess Power. The regulation sets out a more efficient procedure and pricing mechanism for PT PLN and operators of mine-mouth and non-mine-mouth power plants. The regulation also redefines basic provisions on the procedure for the purchase of excess power from holders of operational licenses who generate power for their own use
New Procedure for the Registration of Trademarks
Following the newly enacted Law No. 20 of 2016 on Trademarks and Geographical Indications, the Ministry of Law and Human Rights has expeditiously issued Regulation No. 67 of 2016 on Trademark Registrations in order to create greater certainty regarding the various requirements and procedures involved in the registration of trademarks and collective trademarks, the extension of their protection periods, the amendment to holders’ names and addresses, their transfer, as well as other relevant aspects, including the classification of goods and/or services, the basis for rejection, and official quotations for trademark certificates.
New Provisions on Financial Soundness for Conventional Insurance and Reinsurance Companies
Recognizing the importance of enhancing the financial-soundness of conventional insurance and reinsurance companies in order that they be able to provide adequate protection to their customers, the Financial Services Authority has issued Regulation No. 71/POJK.05/2016 on Financial Soundness for Insurance and Reinsurance Companies. In an attempt to realize this objective, the new regulation outlines a number of financial soundness parameters which should be satisfied by both insurance and reinsurance companies, along with provisions relating to the allocation of guarantee funds, the separation of assets and liabilities of said companies, and the obligation to submit various financial statements to the OJK for compliance-monitoring purposes.
2017 Minimum Wage for the Industrial Sector in Jakarta
Through the issuance of Regulation No. 20 of 2017, the Governor of the Jakarta Special Capital City Region has determined the 2017 minimum wages for certain industrial sectors in Jakarta, specifically: (1) Chemicals, energy, and mining; (2) Metal work, electronics and machinery; (3) Pharmaceuticals and health services. In spite of the higher statutory minimum wages set under the new regulation, fewer industrial sectors (from a previous total of 11 down to only three sectors) and subsectors are covered in comparison with the 2016 minimum-wage framework.
New Regulation on Ultra-Micro Financing
In a bid to boost the number and economic ability of entrepreneurs across Indonesia, the government has established the ultra-micro financing program, which is specifically targeted at productive businesses owned by individuals and/or micro-scale enterprises. In order to provide guidelines for the implementation of such financing, the Ministry of Finance has finally issued Regulation No. 22/PMK.05/2017, which covers various aspects relating to ultra-micro financing, including: (1) Financing targets, coordinators and distributors; (2) Sources of funding; (3) Distribution of financing funds; (4) Reporting obligations; and (5) Sanctions for non-compliance.
PNBP Tariffs for Indonesian Domain-Name Management Rights
The Indonesian Domain Name Registry is required to pay contributions from the revenues that it generates for the provision of domain-name registration services. With this requirement in mind, the Ministry of Communication and Informatics has just issued Regulation No. 10 of 2017, which sets out a number of new provisions relating to this obligation, including the mechanism for the calculation and collection of such contributions, as well as verification and examination procedures relating to paid contributions, and administrative sanctions for non-compliance with the various obligations contained within the regulation.
Guidelines for the Assessment of Domestic Component Levels Within Solar Power Plants
The Ministry of Industry has established a new set of guidelines for the assessment of domestic component levels (TKDN) used within solar power plants (PLTS) through the issuance of Ministerial Regulation No. 04/M-IND/PER/2/2017 on Provisions and Procedures for the Assessment of Domestic Component Levels Used Within Solar Power Plants. Consisting of 32 articles, the new regulation covers three major areas, namely: the composition of teams used for assessments of TKDN values in PLTS and solar modules, requirements and procedures for the securing of TKDN certificates, and verification and supervision measures.
Government Amends Regulation on the Organization of Railways
With the goal of accelerating investment in railway infrastructure, the government has issued Government Regulation No. 6 of 2017 on the Amendment to Government Regulation No. 56 of 2009 on the Organization of Railways. The Amendment alters a wide range of provisions relating to the organization of railways in Indonesia, including the organization of public-railway infrastructure by businesses, the requirements which have to be met and the procedures which have to be undertaken by organizers of public-railway infrastructure, the transfer of railway infrastructure to the state, and so forth.
New Regulation on the Organization of Internet-Protocol Television Services
In a bid to simplify provisions relating to internet-protocol television services, the Ministry of Communication and Informatics has issued Regulation No. 6 of 2017 on the Organization of Internet-Protocol Television Services. This new regulation repeals and replaces Ministerial Regulation No. 11/PER/M.KOMINFO/07/2010, which addressed the same matters, as well as its amendment, Ministerial Regulation No. 15 of 2014. The new regulation comprises of a total of 36 articles, which encompass provisions relating to the scope of internet-protocol television (IPTV) services, IPTV service providers, networks and device systems, service areas and quality, content, and procedures and requirements for the securing of approval for the organization of IPTV services.
Provisions on Donations for Victims of Road Accidents Adjusted
Regulation No. 16/PMK.010/2017 on Donations and Mandatory Contributions to Road-Accident Funds has been issued by the Ministry of Finance. This new regulation increases the amounts of any payments which can be made to the victims of road accidents by 100%. Moreover, Regulation 16/2017 sets out new ambulance services and first-aid measures for victims and also implements progressive tariffs for the imposition of fines.