New Regulation on Entry Restrictions for Foreigners During ‘New Normal’

In consideration of the continuous Covid-19 outbreak but with the need to recover the national economy, the Minister of Law and Human Rights (the “Minister”) enacted the Minister Regulation No. 26 of 2020 dated October 1, 2020 on Visas and Stay Permits During New Habits Adaptation or as commonly referred to as the “New Normal” (“Regulation 26”). The government viewed that the previous foreigners entry restrictions were no longer relevant nor needed in order to conform with the New Normal conditions.

The restrictions thereof were previously set out under the Minister Regulation No. 11 of 2020 dated March 31, 2020 on Temporary Restriction for Foreigners in Entering the Territory of the Republic of Indonesia (“Regulation 11”).  Regulation 26 revokes Regulation 11 effective as of October 1, 2020.

A summary of the salient provisions of Regulation 26 is set out below.

  • Comparison of Foreign Entry Restrictions

We set out below the comparison of foreigner entry restrictions under Regulation 26 and Regulation 11.

Regulation 11 Regulation 26
Only foreigners who meet the following specific criteria that are allowed to enter Indonesia:

·        A holder of a Limited Stay Permit (Izin Tinggal Terbatas) and a Permanent Stay Permit (Izin Tinggal Tetap);

·        A holder of a Diplomatic Visa and an Official Visa;

·        A holder of Diplomatic Stay Permit (Izin Tinggal Diplomatik) and an Official Stay Permit (Izin Tinggal Dinas);

·        A humanitarian aid worker;

·        A flight, sea, or land transportation crew member; or

·        An employee in a national strategy project.

Foreigners who meet the following criteria are allowed to enter Indonesia:

·        Official Visa and/or Official Stay Permit holders;

·        Diplomatic Visa and/or Diplomatic Stay Permit holders;

·        Travel Visa holders (which includes humanitarian aid workers);

·        Limited Stay Visa and/or Limited Stay Permit holders;

·        Permanent Stay Permit holders;

·        Transportation crew members;

·        Asia-Pacific Economic Cooperation (APEC) Businessmen Travel Card holders; and

·        Border crossers.

In addition the foregoing criteria, Regulation 26 stipulates that an eligible foreigner must enter through certain Immigration Examination Places. The Immigration Examination Places have been determined respectively in certain locations of (i) sea ports, (ii) airports, (iii) international borders posts, and (iv) traditional borders posts under the Minister Decree No. M.HH-01.GR.03.01 TAHUN 2020 dated October 15, 2020 on Certain Immigration Examination Place as the Entering Places During New Habits Adaptation. These entry places include: the Belawan Sea Port, the Soekarno-Hatta Airport, and the Aruk International Border Cross.

  • Visa and Permit Applications Procedures

Please see below the application procedures in order to apply for Travel Visas and Limited Stay Visas:

  1. The application shall be submitted by a Guarantor (i.e., an Indonesian individual or company) of the relevant foreign applicant to Director General of Immigration.
  2. The application must be submitted along with the following requirements:
  • a health certificate consisting of Covid-19 free statement in English, issued by an authorized institution;
  • a statement letter in English indicating the willingness to be in a self-funded quarantine or health facility in case the PCR test conducted in Indonesia is positive;
  • a statement letter indicating the willingness to be medically supervised during the quarantine; and
  • evidence of health insurance or travel insurance possession which covers health payment and/or statement letter indicating the willingness to self-fund any treatment if contracted with Covid-19 while in Indonesia.
  1. The Guarantor of the relevant Travel Visa applicant must provide evidence of possession of US$10,000 (ten thousand US Dollars) in cash or an equal amount in other currency, issued by a financial institution or bank in Indonesia (excluding foreigners who work as a humanitarian aid and transportation crew member).
  • Validity Extension Requirements for Existing Permits

We set out below brief explanation on the validity extension requirements for foreigners who have obtained certain permits:

  1. A Travel Stay Permit (which refers to (i) visas on arrival, (ii) one trip travel visas, (iii) multiple trips travel visas, and (iv) APEC Businessman Cards) holder who has been granted with an Emergency Stay Permit and who remains in Indonesia may submit an application to the Immigration Office for a validity extension period of maximum 30 (thirty) days. Alternatively, the application may be made for a conversion to Temporary Stay Permit.
  2. A Temporary Stay Permit or Permanent Stay Permit holder who has been granted with an Emergency Stay Permit and who remains in Indonesia may be granted with an extension based on the previous permits and for a Temporary Stay Permit it may be transferred to Permanent Stay Permit.
  3. Any Temporary Stay Permit, Permanent Stay Permit, or Re-Entry Permit from Expired Permanent Stay Permit which holder remains outside Indonesi, shall be deemed expired and the relevant foreigner must re-submit a visa application in order to enter Indonesia.

***

October 21, 2020

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DKI Jakarta Again Implements Transitional PSBB

Due to the declining positive and active cases of COVID-19 in DKI Jakarta, the Governor of DKI Jakarta decided to ease the Large-Scale Social Restrictions Activities (Pembatasan Sosial Berskala Besar or “PSBB”) policy by implementing a second transitional phase of PSBB. On October 9, 2020, the Governor of DKI Jakarta issued the Governor of DKI Jakarta Decree No. 1020 of 2020 dated October 9, 2020 on the Entry Into Force of the Large-Scale Social Restrictions Activities at Transition Period Towards A Healthy, Safe, and Productive Community (the “Decree”). The Decree regulates that the transitional PSBB will be effective for 2 (two) weeks as of October 12 to October 25, 2020, and may be extended if necessary.

The Decree refers to the Governor of DKI Jakarta Regulation No. 80 of 2020 dated August 19, 2020 on the Implementation of the Large-Scale Social Restrictions Activities at Transition Period Towards A Healthy, Safe, and Productive Community, as amended by the Governor of DKI Jakarta Regulation No. 84 of 2020 (collectively, “Regulation 80/2020”) for its implementation. Regulation 80/2020, in essence, stipulates that as an effort to achieve a healthy, safe, and productive community, Jakarta residents would be allowed gradually to carry out activities in certain places/public facilities.

The details on capacity allowed to carry out activities in such places/public facilities are specified in the Governor of DKI Jakarta Regulation No. 79 of 2020 dated August 19, 2020 on the Implementation of Discipline and Law Enforcement of Health Protocols as an Effort to Prevent and Control Corona Virus Disease 2019 (COVID-19), as recently amended by the Governor of DKI Jakarta Regulation No. 101 of 2020 dated October 9, 2020 (collectively, “Regulation 79/2020”).

The key provisions governed in Regulation 79/2020 are as follows:

  • Workplaces

The maximum capacity of a workplace at one time would be the responsibility of each Company. Nevertheless, Regulation 79/2020 requires employees to wear masks at a workplace at all times and has the employees’ body temperature verified prior to entering the workplace.

  • Religious places

Similar to the previous PSBB, maximum attendance in religious places shall be restricted to 50% (fifty percent) from the regular full capacity. Every person attending a religious place shall bring his or her own religious/worship equipment.

  • Restaurants

Dine-in visitors at a restaurant shall be limited to no more than 50% (fifty percent) from the regular full capacity of the restaurant. Further, restaurants are required to list all of the visitors for the purpose of epidemiology investigation in the event there is a confirmed case of COVID-19.

  • People Movement Using Public Transportation

All mass public transportation is limited to the maximum capacity of 50% (fifty percent) of the regular full capacity. For vehicles, the capacity is restricted to 2 (two) persons per row.

In addition to the abovementioned provisions, the DKI Jakarta Government also announced that cinemas (movie theaters) may now reopen and wedding ceremonies may be held at indoor venues with the maximum capacity of 25% (twenty-five percent) from full capacity. Every person shall sit at least 1.5 (one and a half) meters away from each other.

Except for religious places, any violation of the provisions on workplaces, restaurants, and public transportation would be subject to administrative sanctions such as follows:

  1. One time violation may be subject to a fine of Rp50,000,000 (fifty million Rupiah);
  2. Two-time violation may be subject to a fine of Rp100,000,000 (one hundred million Rupiah); and
  3. Three-time violation may be subject to a fine of Rp150,000,000 (one hundred and fifty million Rupiah).

A violation of any provision on religious places may be subject to a written warning from the relevant government agency.

***

October 14, 2020

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New Regulation on COVID-19 Vaccines Procurement

On October 5, 2020, President Joko Widodo signed the Presidential Regulation No. 99 of 2020 on the Vaccines Procurement and Implementation of Vaccination for Handling the Corona Virus Disease 2019 (COVID-19) Pandemic (“PR 99/2020”) which entered into force the day after. PR 99/2020 is intended to expedite the vaccines procurement and vaccination.

We set out below the key provisions of PR 99/2020.

  • Vaccine Procurement

Under PR 99/2020, the COVID-19 vaccine procurement covers (i) the provision of COVID-19 vaccines and supporting equipment and logistics needed; and (ii) the distribution of the COVID-19 vaccines until the delivery point determined by the Minister of Health (the “Minister”).

The implementation of the COVID-19 vaccines procurement shall be carried out by way of (i) the designation of a state-owned enterprise, (ii) a direct appointment to vaccine providers, and/or (iii) the cooperation with international institutions provided that the cooperation is only limited to the provision of COVID-19 vaccines and the cooperation excludes the supporting equipment for COVID-19 vaccination. Supporting equipment includes personal protection equipment (hazmat suits, face shields, medical gloves, and surgical masks), alcohol-based antiseptics, and safety boxes for bio-waste disposal.

  • Designation of a State-Owned Enterprise

The Minister designates PT Bio Farma (Persero) (“Bio Farma”) as the state-owned enterprise to procure the COVID-19 vaccines with the type and number of the COVID-19 vaccines determined by the Minister. In this case, Bio Farma may involve its subsidiaries, i.e., PT Kimia Farma Tbk and PT Indonesia Farma Tbk. Bio Farma may also cooperate with local or foreign business entities and/or institutions for procuring the COVID-19 vaccine.

  • Direct Appointment to Vaccine Providers

In line with the designation of Bio Frama, the direct appointment to the other business entities is carried out by the Minister. The vaccine providers may be in the form of national or foreign business entities that meet the requirements determined by the Minister, including: possession of a certificate on manufacturing practice for pharmaceutical products or a certificate on good distribution practice for pharmaceutical products.

  • Cooperation with International Institutions

The cooperation is carried out with international institutions which are currently offering or establishing cooperation for research, production, and/or procurement of the COVID-19 vaccine. The Minister determines the type and amount of COVID-19 vaccine procurement by taking into account the consideration from the Committee for COVID-19 Handling and National Economic Recovery.

Based on that, the Ministry of Foreign Affairs (the “MOFA”) establishes the cooperation with the Coalition for Epidemic Preparedness Innovations (CEPI) as an international institution.

In addition, the Minister may cooperate with the Global Alliance for Vaccines and Immunizations (GAVI) as an international institution. However, this cooperation may also be carried out through Bio Farma as the designated state-owned enterprise.

It is worth noting that the Minister determines the purchase price of the COVID-19 vaccines by taking into account the state of emergency and availability of the COVID-19 vaccines. Thus, the purchase price for the same type of vaccines may differ since it depends on a number of factors that may differ from time to time.

  • Vaccination Implementation

The Ministry of Health (the “MOH”) will carry out the COVID-19 vaccination based on (i) criteria and priorities for vaccine recipients; (ii) priority areas for vaccine recipients; (iii) schedule and steps for providing vaccines; and (iv) vaccination standard services, by taking into account the consideration from the Committee for COVID-19 Handling and National Economic Recovery. Further provisions on the COVID-19 vaccination shall be governed in a Regulation of the Minister.

  • Funding for Vaccine Procurement and Vaccination

The vaccine procurement and vaccination of COVID 19 are covered by State Budget and/or other legal and not binding sources in accordance with the prevailing laws and regulations. Advance payment may be given to the provider for more than 15% (fifteen percent) from the multi-year contract value, as stipulated under the agreement/contract.

In supporting the designation of Bio Farma to procure the COVID-19 vaccines, the Government may provide an additional State Capital Participation (Penyertaan Modal Negara) to Bio Farma.  Regional governments may also provide funding in their respective Regional Budgets to support the COVID-19 vaccination in their respective regions.

The Government may provide additional fiscal incentives such as tax, customs, and excise reliefs to import vaccine, raw materials, and equipment needed in the COVID-19 vaccine production and vaccination.

***

October 12, 2020

Copyright © 2020 AKSET. All rights reserved.

 


DKI Jakarta Extends PSBB for Two Weeks

On September 11, 2020, the Governor of DKI Jakarta re-imposed the Large-Scale Social Restrictions Activities (Pembatasan Sosial Berskala Besar or “PSBB”) through the Governor Decree No. 959 of 2020 on the Entry into Force of Large-Scale Social Restrictions in the Management of the Corona Virus Disease (Covid-19) in the DKI Jakarta Province (the “Decree”), which initially is effective only until September 27, 2020. However, the Decree stipulates that the PSBB measure may be extended in the event that new cases of Covid-19 keep significantly increasing.

On September 24, 2020, the Governor of DKI Jakarta announced that the PSBB policy will be extended to avoid potential escalation in Covid-19 cases. Therefore, as governed under the Decree, the PSBB policy will continue from September 28, 2020 until October 11, 2020.

Similar to the initial PSBB, in implementing this PSBB extension, the DKI Jakarta Government refers to the Governor of DKI Jakarta Regulation No. 33 of 2020 dated April 9, 2020 regarding the Implementation of Large-Scale Social Restrictions in the Management of the Corona Virus Disease (Covid-19) in the DKI Jakarta Province as amended by the Governor of DKI Jakarta Regulation No. 88 of 2020 dated September 11, 2020 (collectively referred to as the “Regulation”).

In essence, the Regulation governs the following key provisions:

  • Religious Activities at Places of Worship

For religious activities carried out at places of worship, the maximum attendance shall be 50% (fifty percent) of the full capacity.

  • Workplaces

‘Non-essential’ workplaces must be limited to no more than 25% (twenty five percent) of the full capacity. If an employee gets infected with the Covid-19, all activities at the workplace must be discontinued for at least 3 x 24 hours.

  • People Movement Using Public and/or Private Transportation

All mass public transportations are limited to the maximum capacity of 50% (fifty percent) of the full capacity.

In addition to the above, the Governor of DKI Jakarta issued Decree No. 979 of 2020 dated September 22, 2020 on Controlled Isolation Places owned by the DKI Jakarta Province as Management of the Corona Virus Disease (Covid-19) (“Decree 979/2020”). In Decree 979/2020, the Governor of DKI Jakarta declares i) the Jakarta Islamic Centre, ii) Graha Wisata Taman Mini Indonesia Indah, and iii) Graha Wisata Ragunan as controlled isolation places for those who contracted Covid-19 in DKI Jakarta.

Given that DKI Jakarta has new Covid-19 cases every day and even is predicted to reach 20,000 active cases in early November, there is a high possibility that the PSBB policy may be extended again. We will continue to monitor the development closely.

***

September 25, 2020

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Covid-19 Prevention and Control Protocols for Offices in Jakarta

Approximately 5 months after the Covid-19 outbreak in Jakarta, the Head of the Service Office of Manpower, Transmigration, and Energy of Jakarta Province Agency (“Head of Manpower Agency”) enacted Decree No. 1986 of 2020 dated August 28, 2020 on Covid-19 Prevention and Control Protocols in Private Offices, State Owned Enterprises, Regional Owned Enterprises, and Places of Work (the “Decree”). The Decree implements Article 8(9) of Governor of Jakarta Regulation No. 79 of 2020 dated August 19, 2020 on the Disciplinary and Law Enforcement Implementation of Health Protocols as Prevention and Containment Efforts of the Corona Virus Disease 2019 (the “Governor Regulation”).

  • Covid-19 Prevention and Control Protocols

Pursuant to the Decree, the Covid-19 prevention and control protocols (collectively, the “Protocol”) in private offices, state owned enterprises, regional owned enterprises, and places of work shall be carried out by these following measures:

  1. To form of a Covid-19 Handling Team which consists of the leader of the Company, the representatives of the employees, the work safety and health officer, the medical personnel, and the security guard by making a Statement Letter issued by the head of the Company (the “Handling Team”);
  2. The Handling Team shall make reports in writing through bit.ly/covid19perusahaan directed to the Manpower Agency if there is an employee that has a close contact with a Covid-19 patient, became a suspect of Covid-19, a probable of Covid-19, a confirmed patient of Covid-19, or recently returned from travel;
  3. To limit the number of people present at the same working place at the same time by no more than 50% of the regular capacity;
  4. To require each employee and visitor to wear a mask and any other self-protection equipment as necessary (i.e., hand gloves and/or face shields);
  5. To clean and disinfect the office space periodically using the proper cleaner and disinfectant;
  6. To measure the body temperature of each person who enters the work place;
  7. To provide a separate room to observe an employee with the Covid-19 symptoms;
  8. To provide the hand sanitizer at each entrance and in each room;
  9. To provide hand washing facilities;
  10. Not to terminate the employment of any employee who is undergoing self isolation and continue to provide the basic rights to such employee;
  11. To conduct periodic health assessments to all employees to ensure that they are infected by the Covid-19 and to require visitors to complete the Self-Assessment Form;
  12. To apply a physical distancing of at least 1 (one) meter;
  13. To arrange the utilization of the employees facilities to avoid large gatherings (i.e., the elevators, praying facility, canteens, sports facilities, etc.);
  14. To maximize the use of technology in carrying out work activities;
  15. The Handling Team shall supervise the health of the employees proactively;
  16. To impose sanctions on employees that do not implement the Protocol;
  17. To encourage employees to use personal transportation;
  18. To provide supporting facilities for employees who use a bicycle to work; and
  19. To suspending the company’s activity for cleaning and disinfecting for 3x24 hours if an employee and/or a member of society in the company is confirmed positive of the Covid-19.
  • Sanctions

Based on Article 8(5) of the Governor Regulation, any violation of the Protocol by the employer, a manager, an operator, or a person in charge of any office, work place, business place, industrial site, hotel or any other similar accommodation or tourist attraction, shall be imposed with administration sanctions in the form of temporary closing for up to 3x24 hours. Further, if such person repeats the violation of the Protocol, then such person may subject to the following penalties:

  1. First repetition, Rp50,000,000 (fifty million Rupiah) penalty;
  2. Second repetition, Rp100,000,000 (one hundred million Rupiah) penalty;
  3. Third repetition, Rp150,000,000 (one hundred fifty million Rupiah).

The sanction imposition shall be carried out by Satpol PP, the Manpower Agency, the Tourism and Creative Economy Agency, the Industry, Trade, Cooperation, Small and Mid-Sized Enterprises Agency. These Agencies may be accompanied by regional authorities, police and/or military force.

As of today, there a number of companies were temporarily closed by the Governor of Jakarta due to the violation of the Protocol.

  • Reporting Obligation

Other than the reporting obligation stated on point (b) above, a company must submit a report on the implementation of the Protocol through bit.ly/bekerja-kembali which consists of, among others, the check list of whether or not each item of the Protocol is completed.

 

***

September 15, 2020

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DKI Jakarta Re-Imposes Stricted PSBB After Record Of COVID-19 Infections Rise In Cases; Health Protocols In Workplaces

Since June 2020, DKI Jakarta has implemented the transitional phases of the implementation of Large-Scale Social Restrictions Pembatasan Sosial Berskala Besar – THE “PSBB”) by easing the restrictions put in place under the PSBB and allowing certain activities to resume in order to maintain the productive socio-economic activities.

However, the Governor of DKI Jakarta decides to discontinue the transitional phases of the PSBB and re-impose the stricter PSBB.  This decision is taken in order to reduce the spread of the Corona Virus Disease (Covid-19) as the infection cases in DKI Jakarta continue to surge. Under the Governor Decree No. 959 of 2020 dated September 11, 2020 on the Entry into Force of Large-Scale Social Restrictions in the Management of the Corona Virus Disease (Covid-19) in the DKI Jakarta Province, the stricter PSBB measures are effective as of September 14, 2020 until September 27, 2020 and may be further extended if necessary.

Unlike the transitional PSBB, the Governor of DKI Jakarta sets out the restrictions of the PSBB in DKI Jakarta the Governor Regulation No. 88 of 2020 regarding Amendments of Regulation No. 33 of 2020 on Implementation of Large-Scale Social Restrictions in the Management of the Corona Virus Disease (Covid-19) in the DKI Jakarta Province (the “Regulation”).

In addition, the implementation of the PSBB under the Regulation refers to Governor of DKI Jakarta Regulation No. 79 of 2020 dated August 19, 2020 on the Implementation of Discipline and law Enforcement of Health Protocols as Endeavor of Prevention and Control of Covid-19 (the “Protocols”).

We set out below the key provisions of the amendments on the implementation of the PSBB based on the Regulation.

  • ‘Non-Essential’ Businesses to Limit Workplaces at 25% Capacity

All “non-essential” businesses are required to temporarily limit their activities at the workplaces. This limitation is conducted by implementing mechanism to work from home for the employees. If the work from home mechanism cannot be conducted, the businesses shall limit the number of people who are at workplaces at any time to be not more than 25% (twenty five percent) of the total number of the people at workplaces.

  • ‘Essential’ Businesses May Operate with Certain Restrictions

The Regulation stipulates certain “essential” businesses which are exempted from the PSBB, as follows:

  1. foreign country representative offices and/or international organizations carrying out diplomatic functions;
  2. state/regional-owned enterprises participating in the handling of Covid-19 and/or fulfillment of basic needs;
  3. workplaces in the following sectors:
    • health;
    • food/beverage;
    • energy;
    • communication and information technology;
    • finance;
    • logistics;
    • hospitality/hotel activities;
    • construction;
    • strategic industries;
    • basic services, public utilities and industries which are deemed certain vital national objects; and/or
    • daily needs.
  4. local and international non-governmental organizations that engage in the disaster reliefs and/or social sectors.

The exempted businesses above are still subject to the Protocols (which are briefly discussed below).

  • Health Protocols at Workplaces for ‘Non-Essential’ Businesses

In general, the ‘non-essential’ businesses shall implement the following measures in conducting the activities at workplaces:

  1. To establish the mechanism to work from home to all employees;
  2. To maintain that the service provided and/or business activities are still ongoing on limited basis;
  3. To maintain the productivity of the employees;
  4. To carry out the prevention measures of Covid-19 transmission in the workplaces, such as ensuring the workplaces areas are clean, conducting periodic cleaning, using cleansers and disinfectants, and closing access for any unauthorized person;
  5. To suspend the activities at the workplaces for at least 3x24 hours if there is any employee who is infected by the Covid-19;
  6. To maintain the safety at or around the workplace; and
  7. To provide assistance for any employee who is infected by Covid-19 as per the applicable regulations.
  • Health Protocols at Workplaces for ‘Essential’ and ‘Non-Essential’ Businesses

Both ‘essential’ and ‘non-essential’ businesses shall comply with the Protocols, including the following:

  1. To establish an internal Covid-19 task force at workplaces which consists of the management, HRD department, Occupational Health and Safety (OHS) department, and health officers by issuing a decision of such establishment by the businesses;
  2. To monitor and update the development of information of Covid-19 in the workplaces and report in writing to the Government of DKI Jakarta through the established Covid-19 task force (as referred in point 1 above);
  3. To limit the number of people who are at workplaces at any time to be not more than 50% (fifty percent) of the total number of the people at workplaces (except for the ‘non-essential’ businesses, the limit is 25% capacity);
  4. To require employees to wear masks;
  5. To ensure the entire working area is clean and hygiene by conducting perioding cleaning using cleaner and disinfectant;
  6. To perform a body temperature check before entering the workplaces;
  7. To provide hand sanitizer;
  8. To provide facilities for hand washing with running water and soap;
  9. To not terminate the employment of an employee who undergoes self-isolation/self-quarantine due to Covid-19;
  10. To ensure that employees who come for work are not infected by the Covid-19;
  11. To ensure the physical distancing with a minimum distance of 1 (one) meter between persons in every work activity;
  12. To avoid work activities which may cause a crowd;
  13. To proactively conduct employees’ health monitoring;
  14. To implement the Covid-19 prevention protocols;
  15. To impose a sanction on employees who do not implement Covid-19 prevention protocols;
  16. To publish the Covid-19 prevention protocols.

Our previous workplaces guidance set out in our Newsflash (please check: https://aksetlaw.com/news-event/covid19/workplaces-guidance/) remain effective unless changed in the above.

 

***

September 14, 2020

Copyright © 2020 AKSET. All rights reserved.


Government to Grant Subsidy for Workers Affected by COVID-19

Amidst the COVID-19 pandemic, the Minister of Manpower (the “Minister”) issued the Minister Regulation No. 14 of 2020 dated August 14, 2020 on the Guidelines for the Granting of Government Support in the Form of Salary/Remuneration Subsidy for Workers/Manpower in Handling the Impact of Corona Virus Disease 2019 (COVID-19) (the “Minister Regulation”).

Based on the Minister Regulation, the Government will grant support for eligible workers, in the form of salary/remuneration subsidy (the “Social Support”), in the amount of Rp600,000 (six hundred thousand Rupiah) per month for four months. The Social Support is intended to protect, sustain, and improve workers’ economic capability during the COVID-19 pandemic.

We set out below the highlights of the Minister Regulation.

  • Criteria of Eligible Workers

To be considered eligible for the Social Support, a worker must fulfill the following requirements:

  1. an Indonesian citizen;
  2. is registered as an active member of the manpower social security program of Manpower Social Security Operating Body (“BPJS Ketenagakerjaan”), evidenced with a membership card number;
  3. receives salary/remuneration;
  4. his/her BPJS Ketenagakerjaan membership is valid until June 2020;
  5. pays contribution based on salary/remuneration of less than Rp5,000,000 (five million Rupiah), based on the report submitted by the employer to BPJS Ketenagakerjaan; and
  6. owns an active bank account.

The Government will grant the Social Support based on (i) the number of eligible workers, and (ii) budget ceiling availability.

If an employer provides falsified data in relation with the workers’ salary/remuneration, such employer shall be subject to sanctions in accordance with the prevailing laws and regulations.

  • Procedures for the Granting of the Social Support

The information of the Social Support recipient candidates are collected from the data of active participants of BPJS Ketenagakerjaan. Hence, workers are not required to submit any application in order to be granted the Social Support. The BPJS Ketenagakerjaan will independently conduct verification and validation of such candidates in accordance with the stipulated criteria.

Based on unofficial statement of the President Director of BPJS Ketenagakerjaan as published on the news, BPJS Ketenagakerjaan is currently validating and verifying the data of eligible workers through their bank account and BPJS Ketenagakerjaan membership.After the verification and validation is completed, BPJS Ketenagakerjaan will provide a list of recipient candidates to the Minister.

The determination of the eligible workers shall be made by the Budget User Authorizer (Kuasa Pengguna Anggaran or KPA) which refers to the official in Directorate General of Industrial Relation Development and Manpower Social Security appointed by the Minister.

The Social Support will be distributed by the State Treasury Service Office through an appointed government bank directly to the recipients’ bank account. The Social Support distribution will be carried out in phases.

If a recipient turns out to be ineligible yet already received the Social Support, then he/she must return such Social Support to the state treasury.

***

 

September 11, 2020

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Government Relaxes Premia for Manpower Social Security Programs During COVID-19

As an attempt to ensure the continuity of businesses during the Covid-19 pandemic, the Government relaxes the payment of premia for the Manpower Social Security Programs with the issuance of Government Regulation No. 49 of 2020 dated August 31, 2020 on Adjustments For Premia of Manpower Social Security Programs During Non-Natural Disaster Of Corona Virus Disease 2019 (COVID-19) (“GR 49/2020”).  GR 49/2020 is effective as of September 1, 2020. The salient provisions of GR 49/2020 are discussed below.

Under GR 49/2020, the relaxation is as follows:

(i)            the deferment of the premium payment deadline from the 15th of a month to the 30th of the month;

(ii)           99% (ninety nine percent) deductions of the Work-Related Accident Security (Jaminan Kecelakaan Kerja — JKK”) premium and the Death Security (Jaminan Kematian — JKM”) premium; and

(iii)          partial postponement of Pension Security (Jaminan Pensiun JP”) premium payment.

The relaxation above is valid from August 2020 until January 2021 and is applicable for employers, non-wage recipient participants and wage recipient participants (as applicable) who have registered their Manpower Social Security programs before August 2020.

The deductions and the postponement will be granted if the JKK and JKM premia are paid until July 2020.  Any person who registers after July 2020 shall pay the normal premia for the first two months and will be granted deduction on their third month premia until January 2021.

In relation to postponement of partial payment of the JP premium, 99% of the premium of an employer’s portion may be deferred to May 15, 2021. The payment of the deferred premium must be made in full by May 15, 2022. The eligibility for this postponement differs based on the size of an employer. Medium-sized and Large Enterprises (Usaha Menengah dan Besar — “UMB”) are eligible for such postponement only if their production, distribution, or main business activities are disrupted due to Covid-19 and result in a decrease in monthly sales or income turnover of more than 30% (thirty percent).  The companies must have registered their employees as participants before August 2020 and the companies have made the JP premium payment until July 2020.

 

***

September 10, 2020

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Updates on Tax Incentives for Businesses Affected by COVID-19

Not long after the Minister of Finance Regulation No. 23/PMK.03/2020 dated March 23, 2020 on Tax Incentives for Taxpayers Affected by the Coronavirus Outbreak (“MOF Regulation 23”) was issued, the Minister of Finance (the “MOF”) issued the MOF Regulation No. 44/PMK.03/2020 dated April 27, 2020 on Tax Incentives for Taxpayers Affected by the Coronavirus Disease 2019 Pandemic (“MOF Regulation 44”). MOF Regulation 44 revokes and replaces MOF Regulation 23.

MOF Regulation 44 was later revoked and replaced by MOF Regulation No. 86/PMK. 03/2020 dated July 16, 2020 on Tax Incentives for Taxpayers Affected by the Coronavirus Outbreak (“MOF Regulation 86”). The Director General of Tax (the “DGT”) also issued the DGT Circular Letter No. SE-43/PJ/2020 dated July 28, 2020 on the Implementing Guidelines of MOF Regulation 86 (“DGT Circular 43”).

MOF Regulation 86 sets out the same tax incentives as MOF Regulation 44, as follows:

  • the Article 21 income tax incentives, whereby the Government will bear the Article 21 Income Tax for employees with the annual gross income of up to Rp200 million;
  • the final income tax incentive under Government Regulation No. 23 of 2018 dated June 8, 2018 on the Income Taxes on Income from Businesses Received or Generated by Taxpayers with Certain Gross Revenues, whereby the Government will bear the 0.5% final income tax for certain taxpayers that receive or generate an annual gross revenue below Rp4.8 billion;
  • the non-collection of Article 22 import tax;
  • the 30% reduction of the Article 25 corporate income tax (“Article 25 CIT”) installment incentives; and
  • the accelerated Value Added Tax (“VAT”) refunds.

As a reminder, for the Article 25 CIT installment incentives, the DGT Circular 43 sets out that the 30% reduction of the Article 25 CIT installment is calculated from, among others, the Article 25 CIT installment under the 2019 Annual Income Tax Returns, or the decision on the reduction of Article 25 CIT installment due to reduction in business applied by the taxpayer. Thus, a taxpayer that already obtains a reduction of Article 25 CIT installment may also apply for the incentives under MOF Regulation 86.

We set out below the key updates on tax incentives under MOF Regulation 86 and DGT Circular 43.

  • Extension of Tax Incentive Period

Previously, MOF Regulation 23 and MOF Regulation 44 set out the tax incentive period until September 2020. Now, under MOF Regulation 86, the tax incentives are applicable until December 2020.

  • Additions of Taxpayers Eligible for Income Tax Incentives

To be eligible for the income tax incentives, an employee shall be employed by an employer in certain business lines listed in Annex A of MOF Regulation 86. MOF Regulation 86 adds 127 business lines in its Annex A (in comparison to MOF Regulation 44).

In total, there are 1,189 business lines listed in Annex A of MOF Regulation 86. This list has been progressively expanded from the initial 440 business lines under MOF Regulation 23 that were only limited to manufacturing businesses. MOF Regulation 44 and MOF Regulation 86 broaden the scope of the eligible business lines, including services, tourism, and trade.

The employer shall already have the eligible business line listed in:

  • its 2018 Annual Tax Returns; or
  • in its tax administration master-file, if it did not already have the obligation to file for Annual Tax Returns by 2018. Previously, under MOF Regulation 44, this requirement was only applicable for taxpayers registered after 2018 or for government institutions. This new provision allows taxpayers existing before 2018 to also apply for the tax incentives.
  • Additional Provisions for Accelerated VAT Refunds

Low risk taxable enterprises are qualified for accelerated VAT refunds. MOF Regulation 86 adds another requirement for this tax incentive, whereby the taxpayer shall opt for the accelerated refund of tax overpayment under Article 9(4c) of the Tax Law when submitting their periodic VAT returns.

MOF Regulation 86 and DGT Circular 43 also provide that the accelerated VAT refunds will still be granted to the relevant taxpayers even though there are compensations of VAT overpayments for the previous tax period.

  • Deadlines for Submissions

As MOF Regulation 86 entered into force on July 16, 2020, DGT Circular 43 sets out the following deadlines for application submissions:

  • notice for Article 21 income tax incentive for the period of July 2020 shall be submitted by August 10, 2020; and
  • notice for Article 25 income tax incentive for the period of July 2020 shall be submitted by August 15, 2020.

We understand that the Government is in the final process of issuing an adjustment to MOF Regulation 86 for more incentives. The revised regulation is reported to be issued in the near future.

 

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August 13, 2020

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DKI Jakarta PSBB Transition Period Extended; Workplaces Guidance

On July 2, 2020, with the issuance of Governor of DKI Jakarta Decree No. 647 of 2020 on Extension of Enforcement, Phase, and Implementation of Large-Scale Social Restrictions Activities at Transition Period Towards Healthy, Safe, and Productive Community (the “Decree”) the Governor of DKI Jakarta officially extended the implementation of its transitional phase of the Large-Scale Social Restrictions (Pembatasan Sosial Berskala Besar – “PSBB”) for 14 (fourteen) days effective as of July 3 until July 16.

The transitional phase which was initially introduced by the Governor of DKI Jakarta last month was intended to ease the implementation of the PSBB, in order to maintain the productive socio-economic activities (such period, the “Transition Period”).

Under the Decree, the implementation of the Transition Period shall refer to Governor of DKI Jakarta Regulation No. 51 of 2020 dated June 4, 2020 on the Implementation of Large-Scale Social Restrictions during Transition Period Towards Healthy, Safe, and Productive Community (the “Regulation”).

In principle, during the Transition Period the implementation of the PSBB in DKI Jakarta will be relaxed to a certain extent, including reopening of the workplaces of various businesses sectors.

  • Workplaces Guidance

Pursuant to the Decree and the Regulation, the Transition Period is an attempt to slowly lift the restriction under the implementation of the PSBB until a ‘new normal’ is reached.

The guidance for workplaces is also set out the Head Manpower Office of DKI Jakarta Decree No. 1363 of 2020 as lastly amended by Decree No. 1477 of 2020 on the Protocols for the Prevention and Mitigation of Covid-19 in Office Workplaces during the Transition Period Towards Healthy, Safe, and Productive Community (the “Protocols”).

We set out below the summary of the guidance under the Regulation and the Protocols that clearly sets out the obligation for workplaces or businesses:

  • Implement Clean and Healthy Behavior (Perilaku Hidup Bersih dan Sehat);

This is a set of behaviors that are practiced on the basis of awareness to prevent self-exposure and the environment from the Covid-19 outbreak. Based on the Regulation, the Clean and Healthy Behavior comprises the following behaviors:

    1. limit the activities outside house only for activities that are important and urgent;
    2. maintain personal health condition and do not conduct activities outside house when feeling unwell;
    3. limit the activities outside house for those who have a high risk when exposed to Covid-19;
    4. perform physical distancing within a range of at least 1 meter;
    5. limit yourself not to be in a crowd;
    6. avoid sharing personal tools/objects;
    7. wash hands with clean water and soap before and/or the activities;
    8. perform regular exercise; and
    9. consume healthy and nutritiously balanced foods.
  • Implement the following measures in conducting the activities at workplaces:
    1. establish an internal Covid-19 task force at workplaces which consists of the management, HRD department, Occupational Health and Safety (OHS) department, and health officers;
    2. limit the number of people who are at workplaces at any time to be not more than 50% (fifty percent) of the total number of the people at workplaces;
    3. conduct the arrangement of working days, working hours, working shifts and working system to adapt the conditions of the Covid-19 outbreak taking into account the health protocols (with the minimum of 3 (three)-hour spacing between one work shift to another);
    4. conduct the arrangement for the use of employees’ facilities at workplaces to prevent a crowd (religious facilities, canteens, rest areas, sport facilities, entertainment facilities, etc.);
    5. require employees and guests/visitors to, at all times, wear masks and other personal protective equipment as needed while at workplaces;
    6. ensure that all parts of workplaces areas are clean and hygienic by conducting periodic cleaning using cleansers and disinfectants, particularly, door handles and stairs, elevator buttons, shared office equipment, other public facilities and areas;
    7. implement the body temperature examination before a person enters workplaces;
    8. provide sanitary hygiene tools such as hand sanitizers in each entrance area and around workplaces;
    9. provide hand washing facilities with running water and soap;
    10. an employer is prohibited from terminating the employment of an employee who is in the self-quarantine period for health reason and the employer shall continue to provide the rights of such employee;
    11. ensure that when employees are at workplaces they are not infected by the Covid-19 by conducting a Covid-19 Risk-Self Assessment on the employees 1 (one) day before they work at workplaces as well as require guests/visitors to fill in certain Self-Assessment Forms;
    12. maintain a physical distancing in all working activities, arrange a distance between employees of not less than 1 (one) meter in all working activities;
    13. maximize the use of technology to minimize any direct contact between employees;
    14. reduce the use of meeting rooms by maximizing virtual meetings, despite being in the vicinity;
    15. health officers/OHS Department officers/HRD officers shall proactively conduct supervision on an employee’s health;
    16. avoid jointly using personal tools such as personal praying effects, cutlery, etc.;
    17. encourage every employee to use private vehicles in commuting, preferably bicycles or on foot;
    18. provide supporting facilities for employees who cycle to workplaces (parking space, shower facilities, etc.);
    19. clean office operational vehicles and equipping them with personal protective equipment and sanitary hygiene tools as needed;
    20. carry out prevention measure of transmission such as installing glass screens or dividers for employees who serve guests/customers, etc.;
    21. provide a separate area/room for the observation of employees, guests/visitors who are found to have symptoms during screening;
    22. an employer shall provide a work order, an ID card, and an office uniform to employees who are assigned to work;
    23. employers shall pay attention to the latest information, as well as any guidance or instructions of the relevant Central and Regional-Level Governments, and also inform all employees through the most effective facilities, infrastructure, and media;
    24. employers shall also provide guidance for workers who do not implement the protocol for the prevention and mitigation of Covid-19; and
    25. create and announce an integrity pact (pakta integritas) and Covid-19 prevention protocols and put it in the place that are easily accessible.
  • Reporting Obligation

Under the Protocols, an employer is required to report the implementation of the above guidance during the Transition Period through https://bit.ly/bekerja-kembali. The reporting obligation is in the form of a list of questionnaires on the implementation of the guidance by the employer. Through the link above, the employer shall also be required to upload the integrity pact which was already signed. The employer may also see the integrity pact template through such link.

  • Sanctions

Under the Regulation, any violation of the implementation of the Transition Period on the workplace guidance above may be subject to a written warning or a monetary fine in the amount of up to Rp25,000,000 (twenty million Rupiah).

 

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July 8, 2020

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