Professional Standards for Capital Market Legal Consultants
The Capital Market Legal Consultant's Association has issued a set of professional standards to regulate the functions, duties, and actions of legal consultants working in the Capital Market. A number of changes have been made in acceptable professional standards and it is critical that practicing legal consultants in the capital market are aware of the amendments to ensure and maintain compliance.
Joint Contractors and Taxes in the Oil and Gas Sector
The Ministry of Finance (the “MoF”) has recently issued Ministerial Regulation No. 11/PMK.03/2005 on the Appointment of Joint Contractors in the Oil and Gas Sector to Collect, to Pay, and to Report Value Added Taxes and Luxury Goods Sales Taxes including the Procedures for the Levy, Deposit, and Report of these Taxes (the “Joint Contractor Tax Regulation”) to facilitate compliance through the easing of conditions, procedures, and methods for collecting, paying, and reporting taxes.
Jakarta releases Regional Regulation on Regional Retribution
The Jakarta Government has recently issued a Draft Regional Regulation on Regional Retribution (the “Draft Regulation”) setting out all of the fees and taxes to be applied within the jurisdiction of the Government of Jakarta. The provisions of this Draft Regulation comply with the prevailing laws and regulations relating to regional taxes and retribution as well as regional autonomy.
Adoption in the Wake of the Recent Tsunami in Aceh and West Sumatra
The Supreme Court (the “SC”) has issued Circular No. 3 of 2005 on Adoption (the “Adoption Circular”) reminding judges of the District Court of the provisions of the law with respect to adoption of children in the post-tsunami rebuilding phase. The Adoption Circular addresses both domestic adoption (Indonesian Children being adopted by Indonesian Adults) and inter-country adoption (where the children and the prospective parents are different nationalities).
Presidential Regulations on the Supreme Court
The State Secretariat has just released two Regulations addressing matters of the technical and justicial administration of the Supreme Court (the “SC”) to facilitate greater levels of efficiency and effectiveness of the SC in the performance of its duties and functions. Regulations No. 13 and No. 14 of 2005 address matters relating to the Office of the Secretariat of the SC and the Office of the Registrar of the SC respectively.
Secondary Mortgage Facilities
The State Secretariat has recently issued Presidential Regulation No. 19 of 2005 on Secondary Mortgage Facilities (the “Regulation”) The primary purpose of the Regulation is to develop and support financing facilities that increase the capacity of the community to afford housing.
The Management of Cash Entering and Leaving Indonesia
The Director General of Customs has recently released Rule Number - 01/BC/2005 (“DJBC Rule 1/2005”) to clarify the management of cash transactions involving the entry or exit cash from Indonesia. This Rule is related to the implementation of Law No. 15 of 2002 as amended by Law No. 25 of 2003 on Money Laundering (the “Money Laundering Law”) and Bank Indonesia Regulation No. 4/8/PBI/2002 on the Procedures to Bring Rupiah Into or Out Of the Customs Zone of the Republic of Indonesia. The Rule regulates cash transactions of IDR 100 million or more or an equivalent in foreign currency.
Foreign Lawyers - Employment and Free Legal Services Obligations
The Minister for Law and Human Rights issued a Decision, No. M.11-HT.04.02 of 2004, on 17 December 2004. This Decision has only become publicly available recently despite coming into force almost 2 months ago. The Decision sets out the provisions that apply with respect to the recruitment and employment of foreign lawyers in Indonesia and the obligation on foreign lawyers to provide free legal services to the worlds of legal education and research. In essence this is compulsory pro bono work that is to be performed prior to the Minister granting any license or permit extension with regard to any application by a foreign lawyer to extend their immigration documents to live and work in Indonesia.
Tax Policy Blue Print for 2001 - 2010
The Director General of Tax finally confirmed the Ten-Year Tax Policy Blue Print on 22 December 2004 in Decision No. KEP- 178/PJ/2004 (the “Blue Print”). The Blue Print sets out the Directorate's policy strategies and objectives for the decade commencing in 2001 and ending in 2010. The overriding policy objectives are to increase the ability of the Directorate to collect taxes, increase levels of transparency and accountability, and increase the public's access to the Directorate with respect to the administration and handling of their respective tax affairs. The Blue Print has been confirmed to ensure that all offices within the Directorate are fully aware of tax targets and to facilitate monitoring and evaluation over the long-term.
The National Legislative
The National Legislative Program (the “NLP”) has recently been released by the House of Representatives (the “DPR”) and it states the general legislative agenda and intentions of the parliament over the next 5 years. The NLP contains a comprehensive list of 284 draft laws that are to be discussed, debated, and potentially enacted during this parliament's tenure. Eventhough, it is not expected that all of these pieces of draft legislation will make it to the enactment phase.