Perppu Job Creation Series – Amendments to the Postal Law

This Newsflash is a continuation of our previous Perppu Job Creation Newsflashes with respect to the issuance of Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang-Undang or Perppu) No. 2 of 2022 dated December 30, 2022 regarding Job Creation (the “Perppu Job Creation”), specifically for Postal Law (Law No. 38 of 2009 dated October 14, 2009, or the “Postal Law”). Perppu Job Creation expressly repeals and replaces Law No. 11 of 2020 dated November 2, 2020 regarding Job Creation (the “Job Creation Law”) and took effect immediately as of December 30, 2022. Accordingly, the amendments to the Postal Law under the Job Creation Law are no longer in effect.

Please note that the Postal Law was previously amended in the Job Creation Law, and the Perppu Job Creation only restates the amended provisions of the Postal Law contained in the Job Creation Law.

The amendments to the Postal Law under the Perppu Job Creation stipulate that postal business activities may be carried out after fulfilling the business licenses from the Central Government. In practice, the license will be issued through the Online Single Submission (OSS) System based on a decision from the Minister of Communications and Informatics (the “MOCI”). Any violation of the absence of business licenses by business actors shall result in the imposition of certain administrative sanctions, such as written warning and administrative fines, up to criminal sanctions. In contrast, the Postal Law before being amended by the Job Creation Law provided that parties engaged in postal business activities without a license shall directly be imposed with criminal sanctions.

Further, the provisions on business licenses, capital investments, establishment and operation of foreign postal business in Indonesia, and the imposition of sanctions upon violation of the Postal Law shall refer to a Government Regulation which further regulates on the matters. As such, to implement the aforementioned provisions, business actors shall still refer to Government Regulation No. 15 of 2013 dated March 1, 2013 on Implementation of the Postal Law and Government Regulation No. 46 of 2021 dated February 2, 2021 on Postal, Telecommunication, and Broadcasting Affairs (“GR 46/2021”).

In addition, the Perppu Job Creation omits Article 13 of the Postal Law which governs: (i) the cooperation between local and foreign postal businesses in Indonesia; and (ii) the obligation for postal operators to obtain a license from the MOCI prior to becoming a public company.

We note that the provision regarding the cooperation between local and foreign postal businesses in Indonesia is further regulated in GR 46/2021. As for the removal of provision regarding the license for becoming a public company, it does not prohibit postal operators from becoming a public company. Instead, it only removes the requirement for postal operators to obtain a license from the MOCI to be a public company. This is in line with PT Pos Indonesia (Persero)’s plan to conduct an initial public offering (IPO) in 2025 as announced by the Director of Finance and Risk Management of PT Pos Indonesia (Persero).[1]

It shall be noted that the Perppu Job Creation was submitted to the Parliament (Dewan Perwakilan Rakyat or “DPR”) for the DPR’s approval after which the Perppu Job Creation would be enacted as a Law. If the DPR rejects the Perppu Job Creation, the regulation will be canceled and the Job Creation Law will be re-enacted. As of the issuance of this Newsflash, the legislative body of the DPR (Badan Legislasi DPR) has approved the Perppu Job Creation to be brought to the second hearing (plenary meeting/rapat paripurna), but is currently still waiting for the DPR’s approval.

March 3, 2023



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