Maximum Credit Limits for General Banks
Bank Indonesia (“BI”) has issued Circular No. 7/14/DPNP as an implementing regulation for BI Rule No. 7/3/PBI/2005 which was issued on 20 January 2005. The underlying premise of the Circular is to address the specific issues that afflict banks prior to their failure. The primary issue is a lack of reasonable and acceptable risk management concerning the management of fund portfolios and excessive reliance on select groups of borrowers.
Capital Investment in Jakarta - Guidelines
The Governor of Jakarta has issued Regulation No. 15 of 2005 on Implementing Guidelines for the Supervision and Control of Capital Investment (the “Regulation”) to focus on the development of an investment environment that is conducive to investment through the provision of information on matters related to investment, including the problems faced by investors and how they may be overcome. To ensure that these objectives are met it is crucial that appropriate supervision and control mechanisms are in place. It is important to note that this is a Regulation that only applies to Jakarta.
The Master Plan - Reconstruction and Rehabilitation in Aceh and North Sumatra
The Government's response to the earthquake and tsunami that ravaged the provinces of North Sumatra and Aceh has finally been issued as a Presidential Regulation (No. 30/2005) and is aptly titled the 'Master Plan for Rehabilitation and Reconstruction'. The Master Plan is a comprehensive and coordinated response by the Government that focuses on a number of areas and paramount among these include matters related to infrastructure development, housing development, the redevelopment of regional institutions and frameworks, education and health, and law.
Execution of Judgments - A Constitutional Right - Undecided
The Constitutional Court recently handed down judgment in a case concerning the constitutional rights of individuals to have court judgments enforced once they have the requisite certainty of law. The judgment also set out the type and format of the provision of Power of Attorney to represent clients in Constitutional Court matters. The application related to Law No. 4 of 2004 on Judicial Powers (the “Law”), particularly Articles 11(4) and 36 of the Law.
Public Broadcasting - Rules of Play
The Government has recently released a series of Government Regulations on broadcasting, including Regulation No. 11 of 2005 on the Organizing of Public Broadcasting Agencies (the “Public Broadcasting Regulation”), specifically to implement the provisions of Article 14(10), 32(2), 33(8), and 55(3) of Law No. 32 of 2002 on Broadcasting.
Construction Services for Government Agencies - Compulsory Tender
The Minister of Public Works has issued Circular No. 03/SE/M/2005 on the Organization of Construction Services for Government Agencies For the 2005 Budget Year (“Construction Services Circular”) to ensure compliance with prevailing laws and regulations related to the procurement of goods and services for government agencies and organizations. The primary function of the Construction Services Circular is to control the leakage and misappropriation of government money in the procurement of goods and services.
The Expansion of the Constitutional Court's Authority - Judicial Law Making
The Constitutional Court has recently handed down a Decision that unilaterally expands its authorities and powers to include the judicial review of laws that pre-date Law No. 24 of 2003 on the Constitutional Court (the “Constitutional Court Law). The specific Article in question is Article 50 of the Constitutional Court Law which states that the Court may only judicially review laws alleged to be in conflict with the Constitution after the enactment of the Constitutional Court Law.
Counting Creditor Votes - At Least One Vote for Every Creditor
The Government has recently issued Regulation No. 10 of 2005 on Counting Creditor Votes to facilitate the implementation of Article 87(3) of Law No 37 of 2004 on Bankruptcy and the Suspension of Debt Payments (the “Bankruptcy Law”). The Regulation deals specifically with the rights of creditors to vote in any meeting that is called to determine any matter related to the bankrupt assets.
Drinking Water Supply System - Implementing Regulations Issued
The Government has recently issued Regulation No. 16 of 2005 on the Development of the Drinking Water Supply System (the “SPAM Regulation”). The SPAM Regulation is to facilitate the implementation of Article 40 of Law No. 7 of 2004 on Water Resources (the “Water Law”). The basic premise of the SPAM Regulation is to ensure that all citizens have access to clean drinking water that meets the minimum established standards for drinking water and at an affordable price. The second feature of the SPAM Regulation is that the provisions will allow for the development of not only the physical infrastructure of the drinking water system but also the development of organizations, human resources, community participation and the regulatory framework that will ensure the transparent and accountable use of drinking water resources.
Public Television - New Implementing Regulations
The Government has recently issued Government Regulation No. 13 of 2005 on the Indonesian Public Television Broadcasting Organization (the “Regulation”). This Regulation will act as an implementing regulation and refers specifically to Articles 14(10), 15, 60, and 62 of Law No. 32 of 2002 on Broadcasting (the “Broadcasting Law”).