Provisions on PBB Deductions Simplified
Indonesia’s Ministry of Finance recently made a breakthrough in terms of simplifying the country’s land-and-building tax framework. With the goal of simplifying procedures for the securing of land-and-building tax deductions, the Ministry of Finance has issued Regulation No. 82/PMK.03/2017 on the Granting of Land-and-Building Tax Deductions. This new regulation essentially redefines matters pertaining to the requirements which have to be met, as well as to the submission of applications for the securing of the PBB deduction facility.
New Procedures for the Utilization of Services Offered by Public Accountants and Public Accountants’ Offices by Financial Institutions
Following the issuance of Financial Service Authority (“OJK”) Regulation No. 13/POJK.03/2017 on the Utilization of Services Offered by Public Accountants and Public Accountants’ Offices During Financial Service Activities, the OJK has now finally issued Financial Services Authority Circular Letter No. 36/SEOJK.03/2017 on Procedures for the Utilization of Services Offered by Public Accountants and Public Accountants’ Offices During Financial-Service Activities. In essence, this circular sets out a number of technical guidelines to be observed by financial institutions during the utilization of annual-financial-auditing services offered by accountants and/or public accounting firms.
Govt. to Revise the Implementation of Nationally Strategic Projects
The government has issued Presidential Regulation No. 58 of 2017 on the Amendment to Presidential Regulation No. 3 of 2016 on the Acceleration of the Implementation of Nationally Strategic Projects with the ultimate goal in mind of improving the implementation of said projects. In a nutshell, this regulation amends several provisions which address the following matters: 1) Project funding; 2) Land procurement; 3) Utilization of domestic resources; 4) Monitoring and evaluation; and 5) List of Projects.
Registration and Notification of Hazardous and Toxic Substances
The Ministry of Environment and Forestry (“Ministry”) has issued Regulation No. P.36/MENLHK/SETJEN/KUM.1/6/2017 on Registration and Notification Procedures for Hazardous and Toxic Substances. In essence, this Regulation sets out a number of provisions relating to registration and notification for hazardous and toxic substances, an area which was previously regulated under Ministry Regulation No. 2 of 2010 on the Utilization of Electronic Registration Systems for Hazardous and Toxic Substances under the Framework of the Indonesian National Single Window at the Ministry of the Environment.
House Passes Bill on Architects
The House of Representatives has finally passed the Bill on Architects, with the objective of extending legal protection not only to architects but also to their clients. The Bill consists of 45 articles which cover the following matters: scope of architect’s services, registrations and licenses, foreign architects, the rights and obligations of architects, the rights and obligations of architects’ service users, professional architects’ organizations, architects’ development and administrative sanctions.
Provisions on Flight Routes Redefined
In a bid to improve the investment climate within Indonesia's air-transportation sector, the Ministry of Transportation has issued Regulation No. PM 45 of 2017, which amends Ministry Regulation No. KM 25 of 2008 on the Organization of Air Transportation. In essence, the Tenth Amendment redefines several provisions which address the following matters: 1) Flight-route permits; and 2) Flight routes operated by scheduled commercial-airline companies.
Working Areas for the Indirect Utilization of Geothermal Energy Further Regulated
With the aim of setting out further provisions on working areas for the indirect utilization of geothermal energy, the government has issued Regulation No. 37 of 2017, which encompasses the following matters: 1) Planning, preparation and establishment of working areas; (2) Additions of data to working areas; (3) Changes, cancellations and unifications in relation to working areas; and (4) Reinstatement of working areas.
BI Regulates National Payment Gateway
In a bid to create a more efficient, reliable and secure domestic payment system, as well as to facilitate the public need for non-cash transactions, Bank Indonesia has finally issued Regulation No. 19/8/PBI/2017 on the National Payment Gateway. This regulation basically sets out several important provisions regarding the organization of the National Payment Gateway (NPG), including: 1) Scope of the NPG; 2) Parties within the NPG; 3) Implementation of the NPG; 4) Mandatory Reporting; 5) The role of Bank Indonesia; and 6) Sanctions.
Sustainable Education Programs for BoDs and BoCs of Securities Companies Further Regulated
The OJK has decided to address technical provisions for sustainable education programs for the BoDs and BoCs of securities companies through the issuance of Circular No. 20/SEOJK.04/2017 of 2017 on the Organization of Sustainable Education Programs for Members of Boards of Directors and Boards of Commissioners of Securities Companies Which Are Undertaking Business Activities as Securities Underwriters and/or Broker-Dealers. In essence, the Circular requires BoDs and BoCs of securities companies to participate in sustainable education programs at least once every two years.
New Cost-Recovery Scheme for Oil-and-Gas Contractors Finally Regulated
The government is finally redefining the basic provisions for cost-recovery schemes as part of cooperation contracts held between oil-and-gas contractors and the government. Government Regulation No. 27 of 2017, which amends Government Regulation No. 79 of 2010 on Recoverable Operational Costs and Income-Tax Treatment in the Upstream Oil-and-Gas Business Sector, is expected to stimulate exploration and exploitation activities undertaken by contractors, which should eventually lead to an increase in oil-and-gas production in spite of the current downturn in global oil prices. The new regulation amends several provisions, including the scope of petroleum operations, production-sharing calculations, tax and non-tax incentives, recoverable and non-recoverable operational costs, goods depreciation, bookkeeping, overseas transactions and transitional provisions.