Draft Bill on Palm Oil
As part of the government’s 2017 priority-legislation program, the House of Representatives is now deliberating the Draft Bill on Palm Oil in a bid to create a more comprehensive framework for the Indonesian palm-oil sector. The draft bill addresses various matters; however, due to the broad scope of the bill, this edition of Indonesian Legal Brief (ILB) will confine its discussions to matters pertaining to palm-oil businesses, foreign ownership and criminal sanctions.
Govt. to Reregulate the Role of Independent Verifiers for Mineral Exports
In order to clarify the role of independent verifiers regarding the process of verifying construction plans, as well as the physical progress of the construction of domestic refining facilities, the Ministry of Energy and Mineral Resource has issued Regulation No. 35 of 2017, which amends Ministry Regulation No. 6 of 2017 on Procedures and Requirements for the Granting of Recommendations for the Sale of Processed and Purified Minerals Overseas. In essence, the newly issued regulation redefines provisions pertaining to the export of washed bauxite, establishes a verification process to be implemented by independent verifiers, and also outlines the mandatory appointment of independent verifiers.
Provisions on the Disclosure of Financial Information for Taxation Purposes Revised
In order to ease public anxiety and distrust, the Ministry of Finance has hastily issued Regulation No. 73/PMK.03/2017 as an amendment to the recently issued Ministry Regulation No. 70/PMK.03/2017 on Technical Guidelines for Access to Financial Information for Taxation Purposes. The amendment covers three new provisions, including increasing the minimum thresholds for reported financial accounts, a new electronic mechanism for the requesting of data and the delegation of technical regulations.
New Procedure for Ship Registration
With the aim of improving investment within the shipping sector, the Ministry of Transportation has issued Regulation No. PM 39 of 2017 on Ship Registration and Nationality. In essence, this new regulation redefines a number of provisions which were originally regulated under the now obsolete Regulation No. PM 13 of 2012, so as to accelerate the processing of ship registrations as well as the acquisition of ship nationality documents.
New Regulation on Electronic Tax Payments
With the objective of broadening the types of tax which can be paid in foreign currencies, as well as of annulling the use of Land and Building Tax Payment Slips for tax-administration purposes, the Director General of Taxes has just issued Regulation No. PER-05/PJ/2017 on Tax Payments through Electronic Means. The regulation addresses several tax-related matters, including payment via electronic means, billing codes and electronic income-tax payment methods.
New Provision on Overlapping Applications for Timber-Product Utilization Permits
The Ministry of Environment and Forestry has issued Regulation No. P.32/MENLHK/SETJEN/KUM.1/5/2017 in a bid to overcome the problem of overlapping applications for the securing of Timber-Forest Product Utilization Permits (IUPHHK). The new application process will apply both to companies wishing to either secure new IUPHHKs or to extend their existing IUPHHKs. The new regulation also sets out new sanctions for any applications for IUPHHK which fail to settle the mandatory payment of fees within the due time.
Harmonization of Procedures for the Submission of Objections Within the Customs and Excise Sectors
The Ministry of Finance has now merged procedures for customs and excise objections under a single legal framework through the issuance of Regulation No. 51/PMK.04/2017 on Objections Within the Customs and Excise Sectors. The new regulation also introduces a number of additional requirements for the submission of objection letters, a new mechanism for the withdrawal of objections, as well as the opportunity to appeal to the tax court if an objection is rejected.
New Import Provisions for Horticultural Products
The Ministry of Trade has issued Regulation No. 30/M-DAG/PER/5/2017 on Import Provisions for Horticultural Products in a bid to implement a more effective framework for the import of said products. With this goal in mind, the new regulation redefines various provisions which were previously addressed under Ministry of Trade Regulation No. 71/M-DAG/PER/9/2015, which bore the same title.
Draft Bill on BUMN
Since Law No. 19 of 2003 on State-Owned Enterprises has now been deemed obsolete, the House of Representatives is now discussing the Draft Bill on State-Owned Enterprises in order to set out a more comprehensive framework relating to the organization of state-owned enterprises (BUMN). The draft bill updates the current provisions, as well as adding a number of new provisions which address various matters, including the establishment of BUMN subsidiaries and synergy among BUMNs.
Provisions on the Utilization of and Sales Prices for Flare Gas in Upstream Oil-and-Gas Business Activities Redefined
In a bid to optimize the utilization of flare gas produced by upstream oil-and-gas business activities, as well as to bolster national energy security, the Ministry of Energy and Mineral Resources has finally issued Regulation No. 32 of 2017 on the Utilization of and Sales Prices for Flare Gas as a Part of Upstream Oil-and-Gas Business Activities. This regulation basically redefines provisions which relate to the utilization of flare gas and which were previously regulated under Ministry Regulation No. 6 of 2016 on Provisions and Procedures for the Determination of Allocations, Utilization and Pricing for Natural Gas.