Indonesian Legal Brief

Presidential Regulation on the Compilation and Management of the National Legislative Program
The Government issued Presidential Regulation No. 61 of 2005 (Perpres 61/2005) to comply with Article 16(4) of Law No. 10 of 2004 on Legislation Drafting. The above provision requires a Presidential Regulation to be enacted setting-out the compilation and management mechanisms associated with the National Legislative Program (Prolegnas). The lack of Perpres 61/2005 was not a hindrance to the compilation of the 2005-2009 Prolegnas or the subsequent annual 2005 and 2006 Prolegnas plans. However, it is expected that Perpres 61/2005 will enhance the management of the Prolegnas leading to a larger percentage of the listed bills making it to the House of Representatives (DPR) and being passed into law.
Ministerial Decisions on Hire Purchase, Renting, and Compulsory Registration - Repealed
The Minister of Trade has repealed 2 Decisions, the first relating to Hire Purchase and Renting, and the second relating to Compulsory Registration for Commercial Business Organizations or Associations in Indonesia.
Draft Regulation on International Telecommunication on Sea Cables
The Minister for Communication and Information has released a Draft Regulation on International Communications on Sea Cables ostensibly to protect, among other things, Indonesia's sovereignty, national security, national interest, and society, while maintaining a conducive investment environment.
Amended Visa and Immigration Rules
The Government has recently issued Government Regulation No. 38 of 2005 which significantly alters the visa and immigration rules for foreign citizens currently traveling or residing in Indonesia.
DPR Finishes First Session - 10 Bills Passed into Law
The first sitting of the 2005-2006 House of Representatives (DPR) has concluded with the passing of just 10 bills into law. However, 42 of the 55 bills that are listed on the 2005 National Legislation Program were discussed at some point during the first sitting, which of itself is an encouraging sign that the DPR is making a serious attempt to at least get the requisite legislative debate and discussion occurring in parliament. Of these 42 bills 23 were initiatives of the DPR and 19 were submitted to the DPR by the Government.
Amendment to Pension Contributions and Benefits
The Minister of Finance has recently issued a Second Amendment to Decision No. 343/KMK.017/1998, which was amended by Decision No. 231/KMK.06/2002, and is now amended by Decision No. 91/KMK.05/2005. The basic premise of the Decision is to offset and reduce monthly administration fees, this has become particularly important in light of the recent increase in prices that have arisen as a result of the fuel subsidy reductions.
Amendments to the Taxation Procedures in the Bonded Zone of Batam, Bintan, and Karimun
The Minister of Finance has issued an amendment to Ministerial Regulation No. 60/PMK.04/2005 to provide greater legal certainty in the taxation regime for the Bonded Zones of Batam, Bintan, and Karimun. This increased legal certainty also entails that imports and services, including sub contracts, that were previously not taxed remain taxed under the provisions of Regulation No. 89/PMK.04/2005.
BI Regulation on Technical Assistance to Micro, Small, and Medium Enterprises
Bank Indonesia (BI) has issued a Regulation setting-out the technical assistance that it will provide to micro, small, and medium enterprises in the framework of those enterprise's continued development. The basic premise of the Regulation is that the micro, small, and medium enterprises that survived the financial meltdown of 1997 and 1998 play a strategic and critical role in the national economy and that to ensure this strategic role continues BI must ensure that technical assistance is made available.
Draft Minister of Communication and Information Regulation on the Registration of Pre-Paid Users of Telecommunication Services
The Draft Regulation utilizes Article 7(2)(c) of Law No. 36 on Telecommunications as the means of requiring the registration of all pre-paid mobile telecommunication service users. Article 7(2)(c) requires the professional and responsible use of telecommunication systems. The Department of Communications and Information has adopted a very broad and general interpretation of the statute in that the Department assumes that responsibility equates with efforts to prevent the misuse of the telecommunications system. The best means of fulfilling this responsibility requirement is to put into place an incentive for users not to abuse the system, require them to register and sacrifice the anonymity that they currently enjoy with their pre-paid SIM cards.
Customs Import System Management Implementation Guidelines Amended
The Director General of Customs has issued a Regulation to amend the import implementation guidelines with a view to providing greater security to, and increasing the amount of, state customs revenues through a more effective and efficient customs collection process.
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