Perppu Job Creation Series – Amendments to the Halal Products Law
This Newsflash is a part of our Perppu Job Creation Newsflash series 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 Law No. 33 of 2014 dated October 17, 2014, regarding Halal Products Assurance, or the “Halal Products 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 Accordingly, the amendments to the Halal Products Law under the Job Creation Law are no longer in effect.
Please see below the notable amended provisions to the Halal Products Law under Perppu Job Creation.
One of the key amendments to the Halal Products Law under Perppu Job Creation relates to the validity period to the halal certicates. Under the Halal Products Law, halal certificates shall be valid for 4 (years) after their issuance by the Halal Product Assurance Agency (Badan Penyelenggara Produk Jaminan Halal or “BPJH”), save for any changes to the products’ ingredients composition. Perppu Job Creation amended the foregoing provision by stipulating that halal certificates shall be valid as of their issuance by BPJH and shall remain valid unless there are changes to the products’ ingredients composition and/or halal products process (proses produk halal or “PPH”). In other words, we note that Perppu Job Creation allows halal certificates to be valid for an indefinite time, subject to the foregoing limitations.
Under the Halal Products Law, an application to obtain a halal certificate shall be submitted to BPJH in writing. Perppu Job Creation stipulates a similar provision, but removes the requirement for such application to be made in writing. Accordingly, the application to obtain a halal certificate may be conducted online. Further, Perppu Job Creation stipulates that the verification period for halal certificate applications shall be conducted at the latest 1 (one) working day, whereas such period was not regulated under the Halal Products Law.
In relation to the above, Perppu Job Creation regulates that the inspections and/or testings for the halal status of the products shall be carried out by the Halal Auditor at the latest 15 (fifteen) working days, whereas such period was also not regulated under the Halal Products Law. Nevertheless, in the case that the products’ inspections requires additional time, Perppu Job Creation stipulates that the Halal Inspection Institution (Lembaga Pemeriksa Halal or “LPH”) may apply for an time extension to BPJH. Further provisions on the procedures of inspections and/or testings for the halal status of the products shall be regulated under the relevant Government Regulation.
With regard to the issuance of halal certificates, the Halal Products Law stipulates that the halal certificates shall be issued by BPJH at the latest 7 (seven) working days as of the receipt of the decree on halal status of products from the Indonesian Islamic Clergy Council (Majelis Ulama Indonesia or “MUI”), while Perppu Job Creation stipulates that halal certificates shall be issued by BPJH at the latest 1 (one) working day as of the receipt of the determination on halal status of the products.
Perppu Job Creation also adds several articles including, among others, a provision which in essence mandates the establishment of an integrated electronic system to conduct the services relating to halal products assurance, at the latest 1 (one) year after the enactment of Perppu Job Creation. Such electronic system connects all halal certifications process conducted by BPJH, LPH, MUI, the Halal Product Fatwa Committee (Komite Fatwa Produk Halal or “KFPH”), and PPH assistant (pendamping PPH).
Additionally, Perppu Job Creation mandates the establishment of KFPH which will consist of various ulama and academics and is directly responsible to the Ministry of Religious Affairs, at the latest 1 (one) year after the enactment of Perppu Job Creation. Until KFPH is established, the Government will carry out KFPH’s duties. Duties and authorities of KFPH stipulated under Perppu Job Creation includes the determination of halal status (i) in the case that the application for halal certificate is submitted by micro and small enterprises and (ii) in the case that MUI has not issued the determination of halal status of the products within 3 (three) working days as of the receipt of the examination results from LPH.
We note that the amendments to the Halal Products Law under Perppu Job Creation are in line with the Government’s intention to simplify all licensing processes in Indonesia, including to integrate the halal certification process into a unified electronic-based system and to make it more efficient and easier. Further, we note that the foregoing amendments may be advantegous for the relevant business actors, particularly considering that Perppu Job Creation allows the halal certificates to be valid for an indefinite time and removes the obligation to renew such certificates upon their expiration. Notwithstanding the foregoing, we anticipate the Government to issue several technical implementing regulations of the Halal Products Law. Thus, further implementation of amendments to the Halal Products Law under Perppu Job Creation remains to be seen.
It shall be noted that Perppu Job Creation was approved by the Parliament (Dewan Perwakilan Rakyat or “DPR”) on March 21, 2023 and Perppu Job Creation has been enacted as a Law.
March 28, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), or M. Fatih Satria Kasmaliputra (mkasmaliputra@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Perppu Job Creation Series – Amendments to the Halal Products Law
Adjustment of Working Time and Wages in Certain Business Sectors
The Ministry of Manpower allows an adjustment to the working time and wages of a certain export-oriented labor-intensive industry company (a “Labor-intensive Industry Company”) by introducing Minister of Manpower Regulation No. 5 of 2023 on Working Time and Wages Adjustments on a Certain Export Oriented Labor-intensive Industry Companies which are Impacted by the Global Economic Change (the “Regulation”). The Regulation entered into force as of March 8, 2023.
The Regulation intends to maintain the continuity of work and business amidst the current changes in the global economy. Furthermore, the Manpower Ministry’s Director General for Industrial Relations and Social Security Development states that the Regulation is issued to address the request from several export-oriented industry associations regarding the flexibility of working hours and days of their employees due to the pressure the companies face.
We highlight below the key provisions of the Regulation:
♦ Criteria of Labor-intensive Industry Companies
To be entitled to the adjustments, there are certain criteria under the Regulation. A company shall have (i) at least 200 (two hundred) employees, (ii) the labor costs constitute at least 15% (fifteen percent) of the production costs, and (iii) production dependency on the order from the United States and countries in Europe which is proven by order request letters.
The Regulation the companies that may implement the adjustments are companies in the following industries:
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- the textile and apparel industry;
- the footwear industry;
- the leather and leather goods industry;
- the furniture industry; and
- the children’s toys industry.
♦ Adjustment of Working Time and Wages of Labor-intensive Industry Companies
Under the Regulation, an adjustment of working time may be made to be less than (i) 7 (seven) hours per day and 40 (forty) hours per week for 6 (six) working days, or (ii) 8 (eight) hours per day and 40 (forty) hours per week for 5 (five) working days. The adjustment of the working days shall be based on an agreement of the employer and the employee.
With regard to the wages adjustment, the Regulation stipulates that a Labor-intensive Industry Company may adjust its employees’ wages to 75% (seventy-five percent) of their current wages. Similar with the adjustment of the working time, the adjustment of wage is subject to an agreement of the employer and the employee.
Both the working time and wages adjustments shall be valid for 6 (six) months as of the enactment of the Regulation (i.e., until September 8, 2023).
Such agreement shall be in writing and at least consist of (i) the adjustment of the working time, (ii) the adjusted amount of wages, and (iii) the validity period of the agreement. Note that the validity period of the agreement may not exceed the adjustment validity period (i.e., at the latest, September 8, 2023).
Based on the above, it is clear that if the employee does not agree to any proposed adjustment above then a Labor-intensive Industry Company would not be able to make such adjustment.
March 24, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), and Ammarsyarif Ghazyandra Goenawan (agoenawan@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Adjustment of Working Time and Wages in Certain Business Sectors
Financial Sector Omnibus Law Series – General Overview
On January 12, 2023 the House of Representatives (Dewan Perwakilan Rakyat or the “DPR”) has issued Law No. 4 of 2023, regarding Development and Strengthening of the Financial Sector (the “Financial Sector Omnibus Law”). The Financial Sector Omnibus Law is over 800 pages and contains 27 chapters and 341 articles that will replace and amend 17 laws in the financial sector. The Financial Sector Omnibus Law took effect as of January 12, 2023.
The issuance of the Financial Sector Omnibus Law lies on the urgency to create a more inclusive and efficient financial sector to support economic growth. By doing so, the Financial Sector Omnibus Law amends several provisions across multiple sectors and institutions such as; banking, capital market, pension funds, Rural Banks (Bank Perkreditan Rakyat or “BPR”), and insurance. It is worth noting that for several regulations, especially those that affect the public, require consultation or approval from the DPR.
We highlight the pertinent changes introduced by the Financial Sector Omnibus Law to the Currency Law, the Financial Services Authority Law, and the Banking Law below:
- Currency Law
In addition to the Rupiah paper money and coins, the Financial Sector Omnibus Law introduces Digital Rupiah as a means of currency in Indonesia. The Management of Digital Rupiah which includes planning, publishing, distribution, and the accounting shall be the sole authority of Bank Indonesia.
- Financial Services Authority (Otoritas Jasa Keuangan or “OJK”)
- Regulating and Supervision of Cryptocurrencies by OJK
The Financial Sector Omnibus Law introduces an additional task to OJK in relation to its regulating and supervision towards among others; banking, capital market, and insurance sectors namely Financial Sector Technology Innovation (Inovasi Teknologi Sektor Keuangan or “ITSK”) and digital financial assets and crypto assets.
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- Bankruptcy and PKPU Petitions by OJK
OJK is now the sole party authorized to submit an petition for declaration of bankruptcy and/or petition for suspension of debt payment obligation (PKPU) against debtors that are Financial Service Institutions (Lembaga Jasa Keuangan or an “LJK”), i.e., Banks, securities companies, stock exchanges, or other LJKs which are registered and supervised by the OJK) insofar that their dissolution and/or bankruptcy are not regulated separately in other Laws.
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- Introduction of Supervision Body of OJK
The Financial Sector Omnibus Law introduces the establishment of the Supervision Body of OJK (Badan Supervisi OJK) in order to aid the DPR’s supervision on OJK. The Supervision Body is given authority to: draw up evaluation reports on performance of OJK, carry out monitoring of OJK, and drawing up performance reports.
- Banking Law
- Strengthening the Functions and Roles of People’s Economic Banks
There is a change of terminology Rural Banks from a Bank Perkreditan Rakyat to Bank Perekonomian Rakyat or “BPR”. The Financial Sector Omnibus Law also extends the authority of a BPR to include; carrying out business activity of foreign currency exchange, carrying out fund transfer activities, cooperate with other LJK to their customers, which was previously prohibited to be conducted by BPR.
We continue to review the amendments and additions regulated under the Financial Sector Omnibus Law, and shall circulate follow-up newsflashes in due course.
March 23, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), or Datanya N. Kalula (dkalula@aksetlaw.com ).
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Financial Sector Omnibus Law Series – General Overview
Financial Sector Omnibus Law Series – Amendments to Capital Market Law
This Newsflash is a part of our Newsflash series with respect to the issuance of Law No. 4 of 2023, regarding Development and Strengthening of the Financial Sector (the “Financial Sector Omnibus Law”).
This Newsflash discusses the pertinent amendments to the Capital Market Law (Law No. 8 of 1995 on Capital Markets) in accordance with the Financial Sector Omnibus Law.
The Financial Sector Omnibus Law shifts the authority vested to the Capital Market Supervisory Agency (Badan Pengawas Pasar Modal dan Lembaga Keuangan or “Bapepam”) under the Capital Market Law to the Financial Services Authority (Otoritas Jasa Keuangan or “OJK”). The Financial Sector Omnibus Law is consistent with Law No. 21 of 2011 on Financial Services Authority and replaces all references to Bapepam to Otoritas Jasa Keuangan/Financial Services Authority.
The Financial Sector Omnibus Law includes certain additional obligations for parties which have obtained licenses, approvals, and effective registration statements issued by OJK. Such obligations include implementing professional standards and compliance with the relevant codes of ethics.
The Financial Sector Omnibus Law also allows Micro, Small, and Medium Enterprises (MSMEs) to participate in the Capital Market activities by raising public funds through securities crowdfunding service providers.
Furthermore, the Financial Sector Omnibus Law authorizes OJK as the authoritative body of any criminal investigation in the Capital Market field.
The Financial Sector Omnibus Law introduces new provisions regarding Carbon Trading, which serves as a mandate for the Indonesian Stock Exchange the (Bursa Efek Indonesia or “BEI”) in strengthening the carbon trade. The mechanism will be done through a carbon exchange. Carbon Trading aims at reducing greenhouse gas emissions by trading carbon credits. These credits represent the right for business actors to produce greenhouse gas emissions and carbon footprint. Business actors that have exceeded their carbon credit limit may purchase carbon credits from business actors who emit less carbon footprint through the carbon exchange. This will incentivize business actors to invest in cleaner technologies to produce less greenhouse gas emissions and reduce their carbon footprint.
March 23, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Datanya Nuga Kalula (dkalula@aksetlaw.com), or Muhammad Haykal (mhaykal@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Financial Sector Omnibus Law Series – Amendments to Capital Market Law
Perppu Job Creation Series – Restatement of Amendments to the Land Procurement 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 Law No. 2 of 2012 dated January 14, 2012 regarding Land Procurement for the Development for Public Interest, or the “Land Procurement 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 Land Procurement Law under the Job Creation Law are no longer in effect.
Please note that the Perppu Job Creation only restatesthe amended provisions of the Land Procurement Law contained in the Job Creation Law. In other words, there are no further amendments made under the Perppu Job Creation to the Land Procurement Law other than as stipulated under the Job Creation Law. Please see below the notable amended provisions under the Perppu Job Creation.
Previously, the Land Procurement Law only stated that the party who owns or controls the object of land procurement for public interest shall comply with the provisions of the Land Procurement Law. Now, the Land Procurement Law under the Perppu Job Creation specifies in more detail regarding such provision. In the event of land procurement which objects are part of forest areas, village treasury lands, endowment (waqf) land, customary (ulayat/adat) land, and/or land assets of the Central Government, Regional Government, State-Owned Enterprises, or Regional-Owned Enterprises, the land status settlement process must be completed up until the location determination stage. In particular for the land procurement which objects are part of forest areas, the settlement process shall be done through the release of forest areas (for land procurement conducted by Government institutions) or the release of borrow-use mechanism (for land procurement conducted by private entities).
Further, the Perppu Job Creation also expands the development objectives for land procurement that were not previously stipulated under the Land Procurement Law, namely for the development of the following areas that are initiated and/or controlled by the Central Government, Regional Governments, State-Owned Enterprises or Regional-Owned Enterprises:
- Upstream and downstream oil and gas industrial zones (kawasan industri hulu dan hilir minyak dan gas);
- Special economic zones (kawasan ekonomi khusus);
- Industrial zones (kawasan industri);
- Tourism zones (kawasan pariwisata);
- Food security zones (kawasan ketahanan pangan); and
- Technology development zones (kawasan pengembangan teknologi).
Different from the previous provision under the Land Procurement Law which stipulates that public consultation for development plan shall only be done to obtain an agreement on the location of the development plan from the party who owned or controlled the object of land procurement (i.e., the entitled party), the Perppu Job Creation now regulates that such agreement will also need to be obtained from the managers (pengelola) of State-Owned Property/Regional-Owned Property and users (pengguna) of State-Owned Property/Regional-Owned Property. In the event that the foregoing parties do not attend public consultations after being duly invited 3 (three) times, they are deemed to have approved the development plan. We note that these additions are made for the purpose to harmonize the land development plans and to accelerate the land development process.
The Perppu Job Creation also added several articles between Article 19 and 20 of the Land Procurement Law which in essence regulate that land procurement for public interest which area is under 5 (five) hectares may be carried out directly between the Government institutions and the entitled party. However, such land procurement shall be conducted in accordance with the suitability of regional spatial planning (kesesuaian tata ruang wilayah) and the determination of location shall be conducted by the regent/mayor.
Another key amendment is that the Perppu Job Creation extends the period of determination of development location for public interest to 3 (three) years and may be extended for 1 (one) year. Such extension shall be applied at the latest 6 (six) months prior to the expiration of the determination period. Previously, the Land Procurement Law stipulates that the said determination shall be valid for 2 (two) years and may be extended for 1 (one) year.
We note that the amendments to the Land Procurement Law are intended to ensure that the land procurement process for public interest to be easier, quicker, and with no significant obstacles, particularly for the purpose of developing infrastructure projects. Having said this, we anticipate the Government to issue several implementing regulations of the Land Procurement Law to also ensure the smooth-running of the Government’s intention in this matter.
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 10, 2023
AKSET
Please contact Inka Kirana (ikirana@aksetlaw.com), Clara Anastasia So (canastasia@aksetlaw.com) or M. Fatih Satria Kasmaliputra (mkasmaliputra@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
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
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Clara Anastasia So (canastasia@aksetlaw.com) or Ayu Nandini Prameswari (aprameswari@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Perppu Job Creation Series – Amendments to the Postal Law
Perppu Job Creation Series – Restatement of the Trademark and Geographical Indication Law
The President issued a 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”). Perppu Job Creation expressly revokes and replaces Law No. 11 of 2020 dated November 2, 2020, regarding Job Creation (the “Job Creation Law”).
This Perppu Job Creation Newsflash is a continuation of our previous Perppu Job Creation Newsflash.
This Newsflash discusses the restatement of the Trademark and Geographical Indication Law (Law No. 20 of 2016 dated November 25, 2016, or the “Trademark Law”) in accordance with the Perppu Job Creation. Prior to the issuance of the Perppu Job Creation, the Trademark Law was amended by the Job Creation Law.
The Perppu Job Creation was submitted to the Parliament (Dewan Perwakilan Rakyat or “DPR”) at the next hearing for the Parliament’s approval. In the event the Parliament rejects the Perppu Job Creation, the Perppu Job Creation is 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 next hearing. The Perppu Job Creation still needs to be approved by the Parliament’s hearing to be effective as a Law.
The Perppu Job Creation does not introduce any amendment and only restates the provisions of the Trademark Law under the Job Creation Law. Therefore, the amended Trademark Law provisions under the Perppu Job Creation remain the same as the amended Trademark Law under the Job Creation Law.
March 3, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Datanya N. Kalula (dkalula@aksetlaw.com), or M. Raehan A. Fadila (mfadila@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Perppu Job Creation Series – Amendments to the Multi Storey Housings Law
This Newsflash is a continuation of our previous Perppu Job Creation Newsflashes with respect to the issuance of a 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 Multi Storey Housings Law (as regulated under Law No. 20 of 2011 dated November 9, 2011, regarding Apartments or the “Multi Storey Housings Law”).
As Perppu Job Creation expressly revokes 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), consequently, the amendments to the Multi Storey Housings Law under the Job Creation Law are no longer in effect.
Please note that the Multi Storey Housings Law was previously amended in the Job Creation Law as can be seen in our Newsflash on New Provisions Relating to the Agrarian Sector Introduced in the Omnibus Law. Similar provisions on the amendment of the Multi Storey Housings Law (as previously regulated in the Job Creation Law) are being reinstated into the the Perppu Job Creation.
The minor amendments to the Multi Storey Housings Law under the Perppu Job Creation are made in 2 (two) articles in the Multi Storey Housings Law, namely under Article 29(2) and Article 54(4). Under the Perppu Job Creation, Article 29(2) of the Multi Storey Housings Law stipulates that the function and utilization plan (required for constructing the Multi Storey Housings) must obtain a business permit from the Regent/Mayor in accordance with the norms, standards, procedures and criteria stipulated by the Central Government. Previously in the Job Creation Law, the reference was made to “Government”.
Meanwhile, Article 54(4) of the Multi Storey Housings Law under the Perppu Job Creation only rephrases the provision which stipulates that the criteria, procedures, and transfer for granting ease of ownership of Public Flats by Low Income Community (Masyarakat Berpenghasilan Rendah or MBR) will be further regulated under a Presidential Regulation. To date, such Presidential Regulation to implement Article 54(4) has yet to be issued by the President. Despite the rewording, the purpose and intention of this article remain the same.
It shall be noted that the Perppu Job Creation must be 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 1, 2023
AKSET
Please contact Inka Kirana (ikirana@aksetlaw.com), Clara Anastasia So (canastasia@aksetlaw.com), or M. Raehan A. Fadila (mfadila@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Perppu Job Creation Series – Amendments to the Multi Storey Housings Law
Perppu Job Creation Series – Amendments to the Housing and Residential Areas Law
This Newsflash is a continuation of our previous Newsflash with respect to the issuance of a 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”). Perppu Job Creation expressly repeals and replaces Law No. 11 of 2020 dated November 2, 2020, regarding Job Creation (the “Job Creation Law”).
This Newsflash discusses the latest amendments to the Housing and Residential Areas Law (Law No. 1 of 2011 dated January 12, 2011, regarding Housing and Residential Areas) in accordance with the Perppu Job Creation. Accordingly, the amendments to the Housing and Residential Areas Law under the Job Creation Law are no longer in effect.
Please see below the relevant amendments to the Housing and Residential Areas Law under the Perppu Job Creation compared to the previous amendments under the Job Creation Law.
♦ Minor Amendments and Changes
In general, the amendments to the Housing and Residential Areas Law under the Perppu Job Creation are similar with the amendments under the Job Creation Law. The Perppu Job Creation makes minor amendments and changes to the provisions of the Housing and Residential Areas Law previously amended by the Job Creation Law.
Such changes may be seen under Article 36 of the Housing and Residential Areas Law which removes the previous paragraph 4 of Article 36 that explains the possibility of converting a Basic House (Rumah Sederhana) into a general flat if it cannot be built in the form of a single house or townhouse. We note that the removal of such a section is due to a similar provision that has been provided under Article 36(2) of the Housing and Residential Areas Law.
Furthermore, the Perppu Job Creation also amends Article 55(5) of the Housing and Residential Areas Law in which only the appointment and formation of the institution which handles the transfer of ownership of a Basic House with facilities provided by the Government will be regulated under the Presidential Regulations, while the facility and/or assistance in the construction and acquisition of Housing for Low-income Citizens (Masyarakat Berpenghasilan Rendah or MBR) will be regulated under the Government Regulation.
The Perppu Job Creation also amends (i) Article 109(4) of the Housing and Residential Areas Law by not requiring a confirmation and recommendation of the suitability of space utilization activities for Consolidated Land Location that has been determined, (ii) Article 134 of the Housing and Residential Areas Law by removing the conformity to a standard that has been agreed as part of the prohibition of building houses, and (iii) Article 150(1) of the Housing and Residential Areas Law by adding a violation of Article 36(4) as a violation that is subject to an administrative sanction.
Several cosmetic changes can also be seen in the Perppu Job Creation such as the capitalization of the word Houses, Housing, and others.
♦ Restatements of Amendments
Other than the above, the Perppu Job Creation only restates the amendments to the Housing and Residential Areas Law previously made under the Job Creation Law.
Further, it shall be noted that the Perppu Job Creation must be 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 still waiting for the DPR’s approval.
March 1, 2023
AKSET
Please contact Inka Kirana (ikirana@aksetlaw.com), Adhitya Ramadhan (aramadhan@aksetlaw.com), or Ammarsyarif Ghazyandra Goenawan (agoenawan@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Perppu Job Creation Series – Amendments to the Investment Law and Restatement of the Company Law
This Newsflash is a continuation of our previous Newsflash with respect to the issuance of a 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”). Perppu Job Creation expressly repeals and replaces Law No. 11 of 2020 dated November 2, 2020, regarding Job Creation (the “Job Creation Law”).
This Newsflash discusses the latest amendment to the Investment Law (Law No. 25 of 2007 dated April 26, 2007, on Investment Law) and restatement of the Company Law (Law No. 40 of 2007 dated August 16, 2007, on Company Law) in accordance with the Perppu Job Creation. In light of the foregoing, the amendments to the Company Law and the Investment Law under the Job Creation Law are no longer in effect.
♦ Investment Law
As for the Investment Law, the Perppu Job Creation only makes a minor amendment under the Investment Law.
Article 13 of the Investment Law under the Perppu Job Creation deletes 1 (one) paragraph regarding the protection and empowerment of (i) cooperatives; and (ii) micro, small, and medium enterprises by the central government and/or regional government according to their authority based on norm, standard, procedure, and criteria set by the central government.
Other than the above, the Perppu Job Creation only restates the amended Investment Law provisions under the Job Creation Law.
Please see our Newsflash on Amendments to Investment Law under the Job Creation Law in this link: https://aksetlaw.com/news-event/newsflash/changes-to-investment-law-under-omnibus-law/.
♦ Company Law
Unlike the amendment to the Investment Law, the Perppu Job Creation does not introduce any amendment with respect to the provisions under the Company Law other than those amended by the Job Creation Law. In this respect, the Perppu Job Creation only restates the amended Company Law provisions under the Job Creation Law. Therefore, the amended Company Law provisions under the Perppu Job Creation remain the same as the amended Company Law provisions under the Job Creation Law.
Please see our Newsflash on Amendments to Company Law under the Job Creation Law in this link: https://aksetlaw.com/news-event/newsflash/omnibus-law-amends-provisions-under-company-law-to-empower-micro-small-and-medium-business/.
February 10, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Adhitya Ramadhan (aramadhan@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), or M. Raehan A. Fadila (mfadila@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.