Indonesia: Legal Alert August 2020

AGRARIAN AFFAIRS

Minister of Agrarian Affairs and Spatial Layout/Head of National Land Agency Regulation No. 30 Year 2019 dated December 19, 2019, regarding Land Registration for Dam, Lake, Retention Basin and Reservoir. This Regulation provides guidelines and procedures for such land registration, including the processing for submitting an application to the land agency. This Regulation came into force on December 31, 2019.

Minister of Agrarian Affairs and Spatial Layout/Head of National Land Agency Regulation No. 4 Year 2020 dated March 16, 2020, regarding Land Appraisers. This Regulation stipulates the licensing requirements for land appraisers, encompassing the application process, verification and the granting of a license. It also provides the list of documents required for a license application and the required documents for a license renewal. This Regulation came into force on March 23, 2020.

Minister of Agrarian Affairs and Spatial Layout/Head of National Land Agency Circular Letter No. 6/SE-100.PL.02/IV/2020 dated April 3, 2020, regarding Procurement of Goods/Service in the Framework of Preventing Corona Virus Disease 2019 (COVID-19) and the Implementation of Contracts at the Ministry of Agrarian Affairs and National Land Agency during the COVID-19 Emergency Situation. This Circular Letter provides detailed guidelines and procedures for the government procurement of goods/services in relation to the prevention of the spread of COVID-19 and the implementation of contracts during the outbreak. This Circular Letter came into force on the date of its issuance.

BANK INDONESIA

Bank Indonesia ("BI") Board of Governors Regulation No. 22/2/PADG/2020 dated March 10, 2020, regarding the Fourth Amendment of BI Board of Governors Regulation No. 20/10/PADG/2018 regarding Minimum Giro in Rupiah and Foreign Currency for Conventional Commercial Banks, Sharia Commercial Banks and Sharia Business Units. This Regulation reduces the minimum foreign currency giro for conventional commercial banks from 8% to 4%. It came into force on March 16, 2020.

BI Regulation No. 22/2/PNI/2020 dated March 19, 2020, regarding the Second Amendment of BI Regulation No. 20/10/PBI/2018 regarding Domestic Non-Deliverable Forward. This Regulation adds to the types of Domestic Non-Deliverable Forward transactions to include (i) trade of goods and services locally or overseas, (ii) investments, (iii) granting of credit or bank payment in foreign currencies for trade and investment activities, and (iv) ownership of rupiah bank account by a foreigner. This Regulation came into force on the date of its enactment.

BI Regulation No. 22/3/PBI/2020 dated March 24, 2020, regarding the Amendment of BI Regulation No. 20/3/PBI/2018 regarding Minimum Giro in Rupiah and Foreign Currency for Conventional Commercial Banks, Sharia Commercial Banks and Sharia Business Units. This Regulation adds provisions relaxing the minimum giro requirement for macroprudential policies and the minimum giro requirement for conventional commercial banks, sharia commercial banks and sharia business units. This Regulation came into force on March 26, 2020.

BI Regulation No. 22/4/2020 dated April 15, 2020, regarding Incentives for Banks Providing Funding for Certain Economic Activities to Support the Mitigation of the Economic Impact of the Corona Virus. This Regulation provides technical details on incentives available to banks as indicated in the title of the Regulation, including for how long the incentives are available, and the scope and source of funding for certain economic activities. This Regulation came into force on the date of its enactment.

ECONOMIC AFFAIRS

Coordinating Minister for Economic Affairs Regulation No. 3 of 2020 dated March 20, 2020, regarding the Implementation of Presidential Regulation No. 36 of 2020 regarding the Development of Work Competence though the Pre-Employment Card Program. This Regulation concerns mechanisms for the distribution of pre-employment cards, benefits, training programs and the institutions that will implement the program. It came into force on March 27, 2020.

ENERGY AND MINERAL RESOURCES

Minister of Energy and Mineral Resources ("MEMR") Decision No. 62.K/12/MEM/2020 dated February 28, 2020, regarding Base Price Formula in Calculating Retail Sales Price for Types of Common Oil Fuel Materials for Types of Solar Oil and Fuel Funneled Through Public Fuel Filling Stations and/or Fuel Filling Stations for Fisherpersons. This Decision determines the formula for the base price for common fuel oil types of funneled through public fuel filling stations and fuel filling stations for fisherpersons. Authority is granted to business entities holding an oil and natural gas commercial business license to determine the base price formula. Such entities shall be required to submit a report on the determination of the retail price to the MEMR. This Decision came into effect on the date of its enactment.

MEMR Regulation No. 10 of 2020 dated April 6, 2020, regarding the Amendment of MEMR Regulation No. 45 of 2017 regarding Utilization of Natural Gas for Power Plants. This Regulation introduces several new provisions to adjust the pricing of natural gas for power plants and the mechanisms for electricity power purchases. This Regulation came into force on the date of its issuance.

MEMR Regulation No. 11 of 2020 dated April 14, 2020, regarding the Third Amendment of MEMR Regulation No. 7 of 2017 regarding Procedures for Determining Benchmark Sales of Metal and Coal Minerals. This Regulation is intended to increase the effectiveness of benchmark prices for mineral and coal mining commodities. This Regulation came into force 30 days from its date of issuance.

MEMR Decision No. 89K/10/MEM/2020 dated April 13, 2020, regarding Users and Prices of Certain Natural Gas in the Industrial Sector. This Decision sets forth the users and prices for certain natural gas in the industrial sector. It came into effect on the date of its issuance.