Value-Added Tax Exempted for Entertainment

Minister of Finance Regulation No. 158/PMK.010/2015 regarding Criteria of Art Services and Entertainment that are Exempted from Value-Added Tax (“Regulation”) was recently issued to provide exemptions from value-added tax for artists and entertainers in providing their services.

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Special Importer Identification Number (NPIK) Deleted

After the rejuvenation of general import procedures, the government continues to focus on slashing away at import red tape. This time, it is the deletion of the Special Importer Identification Number (Nomor Pengenal Importir Khusus – “NPIK”) through the issuance of Minister of Trade Regulation No. 50/M-DAG/PER/7/2015 (“Regulation”) regarding the Revocation of Minister of Industry and Trade Decree No. 141/MPP/KEP/3/2002 regarding Special Importer Identification Number (NPIK) as Amended by Minister of Trade Regulation No. 07/M-DAG/PER/3/2008 (“NPIK Regulation”) on 9 July 2015.

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Operating Drones in Indonesia

(This article is outdated. Please see the new update at: “Rules on Drones Updated: Hobbyists“)

After enjoying a period of legal vacuum in Indonesia, the Indonesian government has finally decided to introduce the first legal instrument governing drones by issuing Minister of Transportation Regulation No. PM 90 of 2015 regarding Control of Unmanned Aerial Vehicle Operations in Indonesia’s Serviced Airspace (“Regulation”), which came into force on 12 May 2015.

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Indonesian Government Renews Import Provisions

Continuing the spirit of rejuvenating Indonesia’s trade legal framework after the enactment of Law No. 7 of 2014 regarding Trade (“Trade Law”), Minister of Trade Regulation No. 48/M-DAG/PER/7/2015 regarding General Provisions of Import (“New Regulation”) was recently issued, which will come into force on 1 January 2016, to replace the previous general import policies under Minister of Trade Regulation No. 54/M-DAG/PER/10/2009 regarding General Provisions of Import (“Previous Regulation”).

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Securing Your Business Location in Indonesia

In order to secure land for investment purposes in Indonesia, a location permit is required. Such is needed to avoid risks of being approached by third parties claiming for the same plot of land and to ensure that the intended business activity is in accordance with the local spatial planning so as to avoid potential exposure to government actions.

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Indonesia Palm Oil Plantation Fund

A newly regulated matter under Law No. 39 of 2014 regarding Plantations (“Plantation Law”) when compared to its predecessor is the provisions on the so-called Plantation Funds, which was mandated to be regulated further under a Government Regulation.

In fulfilling this mandate, Government Regulation No. 24 of 2014 regarding Collection of Plantation Fund (“Government Regulation”) was recently issued as an umbrella instrument for Plantation Funds for the following commodities:

  1. Palm oil;
  2. Coconut;
  3. Rubber;
  4. Coffee;
  5. Cocoa;
  6. Sugarcane; and
  7. Tobacco.

Insofar, the only commodity that has been provided with a Plantation Fund is palm oil, as contained under Presidential Regulation No. 61 of 2015 regarding the Accumulation and Usage of the Palm Oil Plantation Fund (“Presidential Regulation”), which was issued concurrently with the Government Regulation.

This article will elaborate this so-called Palm Oil Plantation Fund (“Fund”) under the Presidential Regulation, of which similar provisions will most likely be apply to the Plantation Fund of other commodities as well.

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OJK Issues Microfinance Implementing Regulations

After the success of the microfinance program called the People’s Business Loan (Kredit Usaha Rakyat – “KUR”)[1] and the enactment of Law No. 1 of 2013 on Microfinance Institutions (“Microfinance Law”), the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) continues the government relay to provide wider access to financial services for micro, small and medium enterprises.

To this end, the OJK has recently issued the following three regulations, each detailing the legal framework for the so-called microfinance institutions (lembaga keuangan mikro), and also to implement the Microfinance Law:

  1. OJK Regulation No. 12/POJK.05/2014 on Business Licensing and Organization of Microfinance Institutions (“Licensing Regulation”);
  2. OJK Regulation No. 13/POJK.05/2014 on Business Implementation of Microfinance Institutions (“Activity Regulation”); and
  3. OJK Regulation No. 14/POJK.05/2014 on Development of and Supervision over Microfinance Institutions (“Supervision Regulation”).

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Mining under the New Indonesian Regional Governance Law

Late last year, the House of Representatives enacted Law No. 23 of 2014 on Regional Governance, as lastly amended by Law No. 9 of 2015 (2014 Regional Law), which in principal aims to redefine relations and authorities between the Central Government and Regional Governments as previously provided under Law No. 32 of 2004 on Regional Governance as lastly amended by Law No. 12 of 2008 (2004 Regional Law).

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