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.
Border Control Measures for Goods Suspected of Infringing Intellectual Property Rights
With the objective of setting out comprehensive measures for the control of imports or exports of goods which result from violations of intellectual property rights, the government has finally issued Government Regulation No. 20 of 2017 on the Control of Imports and Exports of Goods Resulting from Violations of Intellectual Property Rights. In essence, the regulation sets out two control measures, specifically: 1) Recordation and detention; and 2) Temporary suspension.
Draft Bill on the Redenomination of the Rupiah Currency
With the aim of simplifying transactions involving the rupiah currency through a process of denomination which doesn’t affect the value of said currency, the House of Representatives is currently deliberating the Draft Bill on the Redenomination of Rupiah (“Draft Bill”). This process of redenomination will see three digits being removed from the rupiah currency as it currently stands. In essence, the Draft Bill addresses the whole implementation of the redenomination process, including value-rounding mechanisms, new money circulation procedures and various mandatory measures which are to be implemented by businesses. The date for the redenomination of the rupiah has been set at 1 January 2020.
Ministry Adds New Categories of Non-Excisable Goods
The Ministry of Finance has issued Regulation No. 59/PMK.04/2017 on Non-Excisable Goods in order to expand the categorization of non-excisable goods, as well as to simplify the procedure for the utilization of excisable goods as materials to be used in the production of new excisable goods. In general, the regulation addresses two main areas: categories of non-excisable goods and sanctions.
Draft Bill on Broadcasting
The House of Representatives is currently deliberating the Draft Bill on Broadcasting, which will repeal and replace the now obsolete Law No. 32 of 2002 on Broadcasting if it is ultimately passed. The Draft Bill is basically aiming to improve the quality of the broadcasting sector across Indonesia and with goal in mind sets out a comprehensive and updated framework which addresses broadcasting matters by revising the various provisions which are outlined under the current Broadcasting Law. The Draft Bill also addresses a number of new matters, such as the use of the internet in the provision of broadcasting services, special broadcasting institutions and the digitalization of broadcasting services.
Detailed Provisions on New Mining Licensing Regime Issued
In a bid to clarify several matters pertaining to Ministry of Energy and Mineral Resources Regulation No. 34 of 2017 on Licensing Within the Minerals and Coal Sectors, the Ministry of Energy and Mineral Resources has finally issued Circular No. 10.E/30/DJB/2017 (“Circular”) on Following-up the Implementation of said Ministry Regulation. In essence, this circular addresses seven major points, specifically: (1) Cooperation with Other Parties; (2) Principle Licenses; (3) Changes to Articles of Association and Investment Status; (4) Ministry Authority; (5) Approval Documents on Working Plans and Budgets; (6) Technical Requirements; and (7) Transitional Provisions.
Provisions on Risk Management for the Utilization of Information Technology by Commercial Banks Further Regulated
In order to set out further provisions on the implementation of risk management for the utilization of information technology by commercial banks, the Financial Services Authority (OJK) has issued Circular Letter No. 21/SEOJK.03/2017, which addresses three major areas: 1) Guidelines on risk-management measures; 2) Mandatory reports which must be submitted by commercial banks regarding their utilization of information technology; and 3) Requirements for the securing of approval from the OJK for the implementation of certain plans and activities which relate to the utilization of information technology.
New Provisions on Paid-up Capital and Route Permits for Airlines
The Ministry of Transportation (“Ministry”) has issued Regulation No. PM 38 of 2007, which is the Ninth Amendment to Ministry Regulation No. KM 25 of 2008 on the Organization of Air Transportation, with the ultimate aim of boosting growth within the air-transportation sector by simplifying provisions which relate to paid-up capital, new flight-route permits and the handling of accidents and/or serious incidents. Prior to the issuance of this Ninth Amendment, Regulation 25/2008 was previously amended several times, most recently through the issuance of Ministry Regulation No. PM 56 of 2016.
New Regulation on Statutory Reserves for Conventional Commercial Banks
In order to increase the effectiveness of the transmission of monetary policy, offer improved flexibility and so forth, the Members of the Board of the Bank Indonesia Governor have issued Regulation No. 19/4/PADG/2017 on Statutory Reserves in Rupiah and Foreign Currencies for Conventional Commercial Banks. This regulation redefines a number of provisions on statutory reserves in Rupiah and foreign currencies for conventional commercial banks, as previously regulated under Bank Indonesia Circular Letter No. 17/17/DKMP dated 26 June 2015 on the Calculation of Statutory Reserves in Rupiah and Foreign Currencies for Conventional Commercial Banks, as amended several times, most recently by Bank Indonesia Circular Letter No. 18/38/DKMP dated 23 December 2016.