New Provisions on Single-Presence Banking Policy
In order to anticipate the dynamics of economic development, as well as to enhance the sustainability and competitiveness of the national banking sector (both in terms of sharia and conventional banks), the Financial Service Authority has issued Regulation No. 39/POJK.03/2017 on Single-Presence Policy for Indonesian Banks. In essence, this new regulation updates several provisions which were originally set out under Bank Indonesia Regulation No. 14/24/PBI/2012. Our discussion of this new regulation will revolve around the following matters: 1) The implementation of Single-Presence Policy; 2) Transfer of Authority from BI to the OJK; and 3) Administrative sanctions.
Import Provisions for Horticultural Products Amended
The Ministry of Trade has issued Regulation No. 43/M-DAG/PER/6/2017, which amends Ministry Regulation No. 30/M-DAG/PER/5/2017 on Import Provisions for Horticultural Products with the objective of enhancing the effectiveness of horticultural-product imports. In essence, the new amendment updates several provisions which pertain to import approvals and the scope of enforceability.
Provisions on Domestic Component Levels for Telecommunications Gadgets Redefined
In a bid to strengthen domestic industries engaging in the production of cellular phones, handheld devices and tablet computers, the Ministry of Industry has issued Regulation No. 29/M – IND/PER/7/2017 on the Provisions and Procedures Used to Calculate Domestic-Component Levels for Cellular Phones, Handheld Devices and Tablet Computers. This new regulation redefines several provisions which address the following matters: 1) TKDN calculations, 2) Assessment procedures, 3) Verification agency and 4) Supervision process.
Provisions on Freight-Forwarding Simplified
With the objective of simplifying the organization of freight-forwarding service business activities, the Ministry of Transportation has issued Regulation No. PM 49 of 2017 on the Organization and Management of Freight-Forwarding Services. In essence, this new regulation redefines several provisions which pertain to the following matters: scope of business activities, shipping documents, business licenses, branch offices and the development of human resources.
Mechanism for the Utilization of SNI Marks and SNI-Based Conformity Marks
The Head of the National Standardization Agency has issued Regulation No. 2 of 2017 on Procedures for the Use of SNI Marks and SNI-Based Conformity Marks, which serves as an implementation of Article 47 of Law No. 20 of 2014 on Standardization and Conformity Assessment. In essence, this new regulation will addresses the following matters: 1) Referential Requirements for SNI Marks; 2) Approval for the Use of SNI Marks; 3) Procedures for Securing PPT SNI; 4) Affixation of SNI Marks; and 5) SNI-Based Conformity Marks.
OJK Regulates Buybacks of Shares Issued by Public Companies
The Financial Services Authority has issued Regulation No. 30/POJK.04/2017 on Buybacks of Shares Issued by Public Companies. This new regulation repeals and replaces BAPEPAM – LK Regulation No. KEP – 105/BL/2010 on Buybacks of Shares Issued by Issuers or Public Companies (Regulation XI.B.2). In essence, this new regulation makes a number of minor alterations to the provisions which were originally set out under Regulation XI.B.2. Moreover, this new Regulation also adds a new list of administrative sanctions for any acts of non-compliance.
Provisions on the Use of Radio-Frequency Band Technology for the Organization of Mobile Cellular Networks Reformulated
In a bid to adjust to the latest developments in radio-frequency band technology, the Ministry of Communication and Informatics has issued Regulation No. 12 of 2017 on the Use of Technology in the 450 MHz, 900 MHz, 2.1 GHz and 2.3 GHz Radio-Frequency Bands for the Organization of Mobile Cellular Networks. In brief, Regulation 12/2017 further classifies four types of radio-frequency bands which can be selected by cellular mobile-network providers, seeks to promote neutral technology in order to improve the use of the radio-frequency spectrum with respect to wireless technology, and sets out obligations for cellular mobile-network providers.
Plantation-Product Processing Businesses Further Regulated
The Ministry of Agriculture has issued Regulation No. 21/PERMENTAN/KB.410/6/2017 on the Second Amendment to Ministry Regulation No. 98/PERMENTAN/OT.140/9/2013 on Plantation Business Licensing Guidelines. The regulation represents a response to public demand as regards the inadequacy of state land for plantation business. In a nutshell, Regulation 21/2017 redefines several matters pertaining to the Plantation Business License for Processing, as well as to partnership schemes and sanctions.
New Provision on the Supervision of Businesses in the Energy and Minerals Sectors
Over the past month the Ministry of Energy and Mineral Resources (“Ministry”) has been subject to criticism from energy and mineral businesses (“Businesses”) following the issuance of Ministry Regulation No. 42 of 2017 on Business Supervision within the Energy and Minerals Business Sector. This regulation is expected to improve the effectiveness of the Ministry’s supervision of Businesses, however it is also perceived to represent a substantial obstruction to investment, both in terms of State-Owned Enterprises and private entities. The Regulation requires businesses working in the energy and minerals sector to secure approval from the Ministry for any transfers of shares, transfers of participating interest, as well as for any changes which are made to the composition of any board of directors and/or board of commissioners. Furthermore, the Regulation also alters a previous provision which related to the procurement of biodiesel fuel, as funded by the Palm-Oil Fund Management Agency.
Technical Provisions on Short-Term Liquidity Loans for Conventional Commercial Banks
As a form of assistance for commercial banks undergoing short-term financial-liquidity stress, the BI Board of Governors has issued Regulation No. 19/6/PADG/2017 on Short-Term Liquidity Loans for Commercial Banks. In essence, Regulation 19/2017 redefines several provisions relating to short-term liquidity loans (PL JP), including the following issues: (1) Requirements for the securing of PLJP; (2) PLJP application procedures; (3) Repayment methods; (4) Reporting obligations; and (5) Prohibitions and limitations during PLJP periods.