Disclosure of Financial Information for Taxation Purposes: Next Phase Rolled Out
The Ministry of Finance has just set out a number of further provisions for the implementation of Perppu 1/2017 through the issuance of Regulation No. 70/PMK.03/2017 on Technical Guidelines for Access to Financial Information for Tax Purposes. This regulation unexpectedly addresses not only procedures for the implementation of AEoI commitments, but also procedures for the disclosure of financial information for domestic tax-enforcement purposes. The implementation of said procedures will come into effect by 2018.
New Provisions for Licensing Within the Minerals and Coal Sectors
In a bid to attract more investors, the Ministry of Energy and Mineral Resources is aiming to simplify provisions relating to licenses within the minerals and coal-mining sectors through the issuance of Regulation No. 34 of 2017 on Licensing for the Minerals and Coal Sectors. This regulation basically unifies and redefines provisions which relate to the abovementioned areas, which were previously regulated only sporadically through five different regulations.
Electronic Land-Information Services
With the objective of offering easy, low-cost and accelerated access to land-information, the Ministry of Agrarian Affairs and Spatial Planning/Head of National Land Agency has established the electronic system for the provision of land-information services through the issuance of Regulation No. 5 of 2017 on Electronic Land-Information Services. In a nutshell, this regulation addresses general provisions which address said e-service, procedures for the use of the e-Service, as well as sanctions in the form of termination of access to the e-service.
Procedures for Field Examinations for Taxation-Compliance Examinations Further Regulated
The Director General of Tax has issued Regulation No. PER-07/PJ/2017 of 2017 on Guidelines for Field Examinations for the Assessment of Compliance with Tax Obligations, which sets out a number of further guidelines which have the goal of ensuring that tax examiners organize said examinations with integrity and in a professional manner. In this regard, the regulation addresses various requirements and procedures covering the notification of taxpayers, the holding of meetings with tax examiners, as well as the undertaking of field examinations.
Good Governance and Risk Management for Peer-to-Peer Lending Services
The Financial Services Authority has issued Circular Letter No. 18/SEOJK.02/2017 of 2017 on Good Governance and Information-Technology Risk Management for Technology-Based Fund-Lending Services. In essence, this circular letter addresses a number of areas pertaining to the implementation of good governance and risk management for peer-to-peer lending, including the roles and responsibilities of Boards of Directors, data-center and disaster-recovery-center good governance as regards electronic systems and information technology, transfers of technology, information-technology risk management, electronic-system security and so forth.
LPS Role in Overcoming SIB’s Problems Redefined
The Indonesian Deposit Insurance Corporation (LPS) has issued Regulation No. 1 of 2017 on the Handling of Systematically Important Banks with Solvability Problems. Redefining the role of LPS as regards this matter, this new regulation sets out a broader framework than its predecessors did by addressing the following areas: (1) Preparation stage prior to the handling of systematically important banks with solvability problems; (2) Methods that can be utilized for problem-handling purposes; (3) Procedures that must be applied when actually handling problems; and (4) Termination of said handling measures.
Implementation of the Know-Your-Beneficial-Owner Principle by Corporations for the Prevention and Eradication of the Criminal Acts of Money Laundering and Terrorism Financing
With the objective of preventing and eradicating the criminal acts of money laundering and terrorism financing, the government is currently deliberating a Draft Presidential Regulation on the Implementation of the Know-Your-Beneficial-Owner Principle by Corporations for the Prevention and Eradication of the Criminal Acts of Money Laundering and Terrorism Financing. The Draft Regulation basically mandates that all corporations should keep track of their beneficial owners and introduces a number of mechanisms formulated for the implementation of the aforementioned know-your-beneficial-owner principle.
New Tariffs for Trans-Provincial Ferry Services
In a bid to maintain the continuity of the country’s ferry services, expedite the movement of both passengers and cargo, and eventually contribute to the overall improvement of the national economy, the Ministry of Transportation has issued Regulation No. PM 30 of 2017, which redefines a number of provisions relating to tariffs for trans-provincial ferry services. These provisions were previously regulated under Ministry Regulation No. PM 37 of 2016, which was amended several times, most recently through the issuance of Ministry Regulation No. PM 145 of 2016.
Provisions on Short-Term Liquidity Loans for Conventional Commercial Banks Reregulated
Bank Indonesia has issued Regulation No. 19/3/PBI/2017 on Short-Term Liquidity Loans for Conventional Commercial Banks in order to help overcome any short-term liquidity difficulties which are being experienced by conventional commercial banks and to ultimately maintain the stability of the financial system. With this goal in mind, this regulation comprehensively addresses various areas relating to the provision of loans from Bank Indonesia to banks under the abovementioned conditions. Previously, this matter was regulated under Bank Indonesia Regulation No. 14/16/PBI/2012 on Short-Term Loan Facilities for Commercial Banks.
Draft Bill on the Restriction of Hard-Cash Transactions
Due to the fact that hard-cash transactions are prone to be used as a means of money-laundering and other criminal activities, the government and the House are currently discussing the Draft Bill on the Restriction of Hard-Cash Transactions. In a nutshell, this Draft Bill prohibits any hard-cash transactions with values of above IDR 100 million from being undertaken in Indonesia, with a number of exemptions to this restriction also being described. All agreements which set out such hard-cash transactions will therefore subsequently be considered null and valid. Moreover, the carrying of foreign banknotes in certain amounts will require the acquisition of permits issued by Bank Indonesia if this Draft Bill is ultimately passed by the House.