Monthly Law Review July 2017
This month, President Joko Widodo put his signature to a controversial regulation aimed at attenuating the rising trend in anti-Pancasila oriented mass organizations, namely Government Regulation in Lieu of Law No. 2 of 2017 on the Amendment to Law No. 17 of 2013 on Mass Organizations (“Perppu 2/2017”). Perppu 2/2017 expands the government’s authority to dismantle mass organizations that espouse ideologies that run contradictory to the values enshrined under the official state ideology, Pancasila.
Monthly Law Review June 2017
This month, the disclosure of financial information for tax purposes is in the spotlight once again as a result of the issuance of Ministry of Finance Regulation No. 73/PMK.03/2017 on the Amendment to Ministry Regulation No. 70/PMK.03/2017 on Technical Guidelines for Access to Financial Information for Taxation Purposes. This amendment has been issued owing to public concerns regarding the minimum threshold for financial-account disclosure.
Monthly Law Review May 2017
This month, public attention has also been focused upon the enactment of Government Regulation in Lieu of Law No. 1 of 2017 on Access to Financial Information for Tax Purposes. This regulation has been issued in order to accommodate the international taxation disclosure practice known as the Automatic Exchange of Financial Account Information (AEOI). Under the regulation, financial-service institutions are required to submit reports on certain types of customers or accounts to the Directorate General of Tax. Through such a reporting regime, the hope is that tax-compliance levels can be improved, while tax avoidance and evasion are ultimately reduced. The Minister of Finance is expected to issue several implementing regulations for this main regulation.
Monthly Law Review April 2017
Finally, after a long and exhausting election season, the people have made their decision. Jakartans will have a new governor after challengers Anies Baswedan and Sandiaga Uno defeated the incumbent Basuki Tjahaja Purnama and his running mate Djarot Saiful Hidayat in the recent Jakarta gubernatorial election. The winning couple has revealed details of their future plans for the capital city, following their inauguration which will take place in October, including the eagerly anticipated zero down-payment housing program, as well as an entrepreneurship mentoring program for micro-, small- and medium-scale enterprises (UMKM) which goes by the catchy name of OK-OCE. It is hoped that the new governor will be able to bring a breath of fresh air to the Indonesian capital’s business sector.
Monthly Law Review March 2017
Moving on, as the end of this month rolls around, we are also focusing upon several noteworthy business-sector regulations which have been issued over the course of the last four weeks. To begin with, within the energy sector, a new regulation on geothermal industry has finally been issued, specifically Government Regulation No. 7 of 2017 on the Indirect Utilization of Geothermal Industry.
Monthly Law Review February 2017
The ongoing dispute between the government and PT Freeport Indonesia has been very much in the spotlight throughout February 2017. Both parties have yet to reach an agreement regarding the conditions of the Special Mining Business Permit (Izin Usaha Pertambangan Khusus/IUPK) which was granted to Freeport in order to replace its original Contract of Work (Kontrak Karya). Freeport subsequently invoked the arbitration clause in its Contract of Work, meaning that both parties have less than four months in which to settle their dispute amicably before an arbitration forum is set up. The dispute is considered to be one of the greatest challenges currently facing Indonesia and, whatever the outcome, it will surely affect the country’s future investment climate.
Monthly Law Review January 2017
This edition of Monthly Law Review will outline the key aspects of 114 regulations which were issued in end of December 2016 and January 2017, and we have classified these various regulations into Energy and Natural Resources, Financial Service, Tax, Manufacturing and Industry, Telecommunication and Media, Trade, General Corporate, Litigation, as well as a number of other sectors which we have grouped under the Miscellaneous banner.
Monthly Law Review December 2016
Moving on to the legislative sector, the House of Representative has passed 22 new laws this year. Seven of these relate to Indonesia’s ratification of several international treaties or agreements, and three are laws concerning the national budget. As such, the House has in fact only completed 12 new laws of the 51 new laws set by the 2016 Priority Legislative Program. This is a slight improvement by the House compared to last year’s performance, in which the House passed only one of 50 laws set by the 2015 Priority Legislative Program.
Monthly Law Review November 2016
As part of our commitment to providing a comprehensive but easily digestible survey of any recent updates which are made to Indonesia’s overall regulatory framework, this edition of Monthly Law Review highlights the key aspects covered by 60 regulations. For ease of access, we have classified these various regulations into a number of groups, specifically: Trade, Manufacturing and Industry, Energy and Mineral Resources, Financial Services, Taxation, Telecommunications and Media, General Corporate and Miscellaneous.
Monthly Law Review October 2016
The House of Representatives finally passed two significant and important bills governing the business sector just before the end of October, specifically the Bill on the Amendment to Law No. 11 of 2008 on Electronic Information and Transactions, and the Bill on Trademarks and Geographical Indications.