New Regulation on Agency/Distributorship Agreements
On April 1, 2021, the Minister of Trade (“MOT”) issued his Regulation No. 24 of 2021 on Agreements for Distribution of Goods by Distributors or Agents (“MOT Reg. 24/2021”), which revokes and replaces the MOT Regulation No. 11/M-DAG/PER/3/2006 dated March 29, 2006 on Provisions and Procedures for the Issuance of Registration Certificate for Agents or Distributors of Goods and/or Services (“MOT Reg. 11/2006”). MOT Reg. 24/2021, which entered into force on May 1, 2021, serves as an implementing regulation of Government Regulation No. 29 of 2021 on Implementation of the Trade Sector (“GR 29/2021”).
MOT Reg. 24/2021 does not set out major changes in the framework of distribution of goods. We set out below the key changes on MOT Reg. 24/2021.
- Restatement of Distributor Business Actors
Article 2 of MOT Reg. 24/2021 restates the types of business actors that classified as carrying out distribution activities provided under GR 29/2021, which consist of (i) distributors; (ii) sole distributors; (iii) agents; and (iv) sole agents. Although GR 29/2021 no longer includes sub-distributors and sub-agents as “distribution business actors”, MOT Reg. 24/2021 provides that distributors and sole distributors may appoint sub-distributors while agents and sole agents may appoint sub-agents.
- Appointment of PMDN Trading Companies as Agents/Distributors of PMA Companies
MOT Reg. 24/2021 clarifies the requirement of foreign investment PMA trading companies to appoint domestic investment (PMDN) trading companies as distributors, sole distributors, agents, or sole agents. Previously, such requirement may be broadly interpretated since MOT Reg. 11/2006 did not provide any elucidation on what constitutes “national trading companies”.
- Simplification of Procedures for Registration Certificate Obtainment
Previously, MOT Reg. 11/2006 provided the requirements for agency or distributorship agreements to be registered to the Ministry of Trade to obtain a Registration Certificate (Surat Tanda Pendaftaran or “STP”). However, the scope of MOT Reg. 24/2021 only includes provisions regarding the agency or distributorship agreements and does not include procedures for their registration.
Nevertheless, currently STP is still required for agents or distributors, and that companies shall refer to the MOT Regulation No. 8 of 2020 dated February 10, 2020 on Electronically Integrated Business Licensing Services in the Trade Industry as amended by MOT Regulation No. 64 of 2020 dated July 9, 2020 regarding the procedures to obtain an STP.
- Termination of Agreement
MOT Reg. 11/2006 recognized termination of an agency or distributorship agreement due to the transfer of agency/distributorship rights Now, under the MOT Reg. 24/2021, an agency or distributorship agreement may be terminated earlier than the expiration of the agreement in the case of: (i) dissolution of the company; (ii) cessation of business operations; (iii) bankruptcy; and (iv) by mutual agreement of both parties. This means that a principal shall first terminate an agency or distributorship agreement before appointing a new agent or distributor.
If the previous agreement is terminated before the expiration of the STP, the new agent or distributor may only register its agreement and obtain the STP after the clean break of the terminated agreement. If a clean break is not settled within three months as of the termination of agreement, the STP of the previous agent or distributor shall be deemed invalid and the principal may appoint the new agent or distributor.
- Separate Provisions for Health Products and Medicines
Companies distributing health products and medicines are now exempted from the provisions of MOT Reg. 24/2021. Distribution of health products or medicines shall be carried out based on the relevant laws and regulations in the health sector.
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June 3, 2021
Please contact Inka Kirana (ikirana@aksetlaw.com), N. Sekar Lestari (nlestari@aksetlaw.com), or Clara Anastasia (canastasia@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.
New Regulation on Agency/Distributorship Agreements
Procedures of Employing Foreign Workers Under MOM Reg. 8/2021
On March 31, 2021, the Minister of Manpower issued Regulation No. 8 of 2021 on the Implementing Regulation of Government Regulation 34 of 2021 on the Employment of Foreign Workers (“MOM Reg. 8/2021”). As its name implies, MOM Reg. 8/2021 is an implementing regulation of Government Regulation 34 of 2021 on the Employment of Foreign Workers dated February 2, 2021 (“GR 34/2021”) which specifies in greater detail the mechanism and requirements that must be fulfilled to employ foreign workers. Please see our Newsflash on GR 34/2021 here.
Previously, the employment of foreign workers was regulated under Minister of Manpower Regulation No. 10 of 2018 dated July 11, 2018 on the Procedures on the Employment Workers (the “Previous Regulation”). MOM Reg. 8/2021 revokes and replaces the Previous Regulation.
The highlights of MOM Reg. 8/2021 are as follows.
- Procedures on the Application and Issuance of Legalized Manpower Utilization Plans
In order to employ foreign workers, employers must first submit and obtain a legalized Manpower Utilization Plan (an “RPTKA”). An RPTKA also serves as the basis to grant visas and stay permits for foreign workers. The steps to apply for an RPTKA are as follows:
- Creation of an account by the employer in the Online Foreign Worker Employment System;
- Filling out application data and uploading required documents to obtain a legalized RPTKA;
- Evaluation of the application for the legalized RPTKA;
- Filling out the data on the potential foreign worker(s) and uploading required documents for such foreign workers;
- Issuance of a Notification of Foreign Worker Employment Compensation Fee (“DKPTKA”); and
- Issuance of a Legalized RPKTA.
For an application for a Legalized RPTKA, an employer shall submit at least:
- The name, address and business activity of the employer;
- The name, sex, age and address of the foreign worker;
- The position or type of job of the foreign worker;
- The place of work;
- The amount of compensation and payment terms;
- The employment terms, including the rights and obligations of the Foreign Worker and the Employer;
- The validity period of the employment contract;
- The place and date the employment contract is made;
- The signatures of the parties in the employment contract.
- Procedures on the Application and Issuance of Legalized Manpower Utilization Plans
There are four types of RPTKAs, namely: (i) an RPTKA for Temporary Jobs; (ii) an RPTKA for Jobs Lasting More than 6 Months; (iii) an RPTKA for non-DKPTKA Jobs; and (iv) an RPTKA for Work at Special Economic Regions (Kawasan Ekonomi Khusus or a “KEK”).
RPTKAs for Temporary Jobs
This RPTKA covers the following types of jobs:
- Commercial filmmaking that is approved by relevant authorities;
- Audit, production quality control or inspections on Indonesian branches for a duration of more than 1 (one) month;
- Jobs related to installation of machinery, electricity, after sale service or products in the exploration/development stage of the business;
- Impresario services; or
- One-off jobs or jobs that have a duration of less than 6 months.
The Legalized RPTKA for these jobs are valid for a maximum of 6 months and may not be extended.
RPTKAs for Jobs Lasting More Than 6 Months
This RPTKA covers jobs that last more than 6 months that is to be filled by a foreign worker. The Legalized RPTKA for these jobs is valid for up to 2 years and may be extended subject to the relevant immigration rules.
RPTKAs for Non-DKPTKA Jobs
RPTKA for Non-DKPTKA Jobs may be further divided into Non-DKPTKA jobs in: (i) social, religious, and educational institutions, or (ii) government institutions or foreign country/international organization representatives. The Legalized RPTKA for these jobs is valid for up to 2 years and may be extended subject to the relevant immigration rules.
RPTKA for Work at KEKs
These RPTKA covers jobs held by foreign workers in KEKs. The Legalized RPTKA for these jobs is valid for up to 5 years and may be extended subject to the relevant immigration rules. For a Director/Commissioner position in a KEK, the validity of the Legalized RPTKA is valid for the duration of the term of the Director/Commissioner subject to the relevant immigration rules. Furthermore, a Legalized RPTKA for work in a KEK is valid for work locations within the same KEK and other KEKs.
Once an application for the legalized RPTKA is submitted, it will be evaluated by the Directorate General of Manpower Placement Development and Work Opportunity Expansion.
- Exemptions from Having RPTKAs
A legalized RPTKA is not required for: (i) directors/commissioners who have certain share ownership in the company (i.e., the employer); (ii) Diplomatic or consular officers at foreign countries’ representative offices; or (iii) foreign workers employed by employers for production activities that were stopped due to emergencies, vocational, technology-based start-ups, business visits and limited period research.
For foreign workers in technology-based start-ups or vocational business activities, the exemption from having a legalized RPTKA is only valid if the job/business activity lasts for up to 3 (three) months. During this time, the employer for these businesses is only required to submit the data of the potential foreign worker. If the job/business activity exceeds 3 (three) months and the employer intends to employ the foreign worker, then an application for a legalized RPTKA is required.
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June 3, 2021
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), or Caleb Sitorus (csitorus@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.
Procedures of Employing Foreign Workers Under MOM Reg. 8/2021
Reallocation of Contributions for Unemployment Benefits Program: Procedures and Implementation
The Minister of Manpower (“MoM”) enacted Regulation No. 7 of 2021 dated March 31, 2021 on Participants Registration Procedures and Implementation of Premium Reallocation for the Unemployment Benefits Program (“MoM Regulation 7/2021“) in order to implement Article 10 (2) and Article 17 (2) Government Regulation No. 37 of 2021 dated February 2, 2021 (“GR 37/2021”) on the Implementation of the Unemployment Benefits Program (in Indonesian, Jaminan Kehilangan Pekerjaan or the “JKP Program”).
Employers are required to register their workers with the JKP Program. The workers shall be: i) Indonesian citizens, ii) below 54 (fifty-four) years old when registered, and iii) in employment relationship with the respective employers. In addition, workers who work at large or middle size enterprises must be registered with the following programs: National Health Security (in Indonesian, Jaminan Kesehatan Nasional), Work Accident Security (in Indonesian, Jaminan Keselamatan Kerja or “JKK”), Provident Fund (in Indonesian, Jaminan Hari Tua), National Pension Security (in Indonesian, Jaminan Pensiun) and Life Insurance (in Indonesian, Jaminan Kematian or “JKM”). Workers who work at micro and small enterprises must be registered with the foregoing programs as well, except for the National Pension Security (in Indonesian, Jaminan Pensiun).
MoM Regulation 7/2021 sets out provisions specifically concerning the procedures of the implementation of the premium reallocation for the JKP Program. A summary of the salient provisions of MoM Regulation 7/2021 is set out below.
- Source of Funds for JKP Program
The premium for the JKP Program shall be paid monthly in the amount of 0.46% (zero point four six percent) of a worker’s monthly salary. The 0.46% (zero point four six percent) amount is based on the following calculation:
- 0.22% (zero point two two percent) from the worker’s monthly salary will be paid by the Central Government; and
- The remaining 0.24% (zero point two four percent) from the worker’s monthly salary will be paid by way of the reallocation of the JKK and JKM premia. Pursuant to GR 37/2021, the amount of the JKK premium would be 0.14% (zero point one four percent) from the worker’s monthly salary and the JKM premium would be 0.10 (zero point one zero percent) from the worker’s monthly salary.
The source of the funds for the JKP Program is based on the reallocation of the JKK and JKM premia, with the following conditions:
- The JKK contributions are reduced by 0.14% (zero-point fourteen percent) of the monthly wages. Subsequently, the JKK contributions for each risk level group becomes:
- Very low risk level, 0.10% (zero point ten percent) of the monthly wages;
- Low risk level, 0.40% (zero point forty percent) of the monthly wages;
- Medium risk level is 0.75% (zero point seventy-five percent) of monthly wages;
- High risk level of 1.13% (one point thirteen percent) of the monthly wages;
- Very high risk level of 1.60% (one point sixty percent) of the monthly wages.
- JKM contributions are reduced by 0.10% (zero point ten percent) of the monthly wages. Subsequently, the JKM contributions becomes 0.20% (zero point twenty percent) of the monthly wages.
Such reduced contributions (being a total of 0.24% of the monthly wages) are then allocated for the contribution or premium for the JKP Program. Note that there is no additional payment by an employer or an employee for the JKP Program.
- Payment of JKK and JKM Recomposed Contributions
Pursuant to Article 10 of MoM Regulation 7/2021, for workers who are included in the Social Security Administrator Program (Badan Penyelenggara Jaminan Sosial or “BPJS”) for the first time, the reallocation of the JKK and JKM contributions will be implemented retroactively as of February 2021. Further, the contributions reallocation shall be implemented by the Manpower BPJS by the 17th of each of the following months. In cases where employers are in arrears in payments of JKK and JKM contributions by February 2021, the workers shall not automatically become participants to the program.
For the reallocation of the contributions executed after February, employers are required to report the participation data of the participants of JKK and JKM Programs to the Manpower BPJS every month no later than the 15th of each of the following months.
- Calculation of JKK and JKM Reallocated Contributions
The calculation of JKK and JKM reallocated contributions are based on the worker’s latest wage which have been reported to Manpower BPJS and shall not exceed the upper limit of wages, which is Rp5.000.000 (five million Rupiah). In any event the wage exceeds the upper limit, the wage used as a basis for the calculation shall be at the amount of the upper limit of the wage. In any event the wages reported to Manpower BPJS exceeds the upper limit of wages, the differences between the calculation of JKK and JKM reallocated contributions shall become the assets of the work accident social security funds and the death social insurance funds.
- Legitimacy of Participation
Employers who have included their workers into the JKP Program will be given a JKP Program membership certificate by the Manpower BPJS. The certificate, together with a card of participation, will be issued in electronic form. Pursuant to Article 19 of MoM Regulation 7/2021, the certificates and cards of participation shall be delivered by the Manpower BPJS to employers no later than 3 (three) business days after the contributions are paid while the cards of participation shall be delivered by the employers to their workers no later than 3 (three) business days since the same are received from the Manpower BPJS.
The Manpower BPJS and the Ministry of Manpower (the “Ministry”) shall integrate the JKP Program’s participation data into an employment information system at the Ministry.
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June 3, 2021
Please contact Johannes C. Sahetapy Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), or Esther C. Marpaung (emarpaung@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.
New Procedures on the Application for the Incorporation, Amendments and Dissolution of Limited Liability Companies
On April 30, 2021, the Minister of Law and Human Rights (the “Minister”) issued his Regulation No. 21 of 2021 on Requirements and Procedure for the Registration of Incorporation, Amendment and Dissolution of Limited Liability Companies (the “Regulation 21/2021”) to further implement Government Regulation No. 8 of 2021 dated February 2, 2021 on Authorized Capital as well as the Incorporation, Amendments, and Dissolution of Companies that Qualify as Micro and Small Enterprises (the “GR 8/2021”).
GR 8/2021 mostly regulates on the application procedures for: (i) “regular” Limited Liability Companies or what Regulation 21/2021 dubs as “Capital Contribution Company”, which is the commonly known limited liability companies that have at least 2 shareholders, and (ii) Individually Owned Companies which was newly introduced in the amendment of Law No. 40 of 2007 dated August 16, 2007 on Limited Liability Companies under the Law No. 11 of 2020 dated November 2, 2020 on Job Creation and GR 8/2021.
The Regulation 21/2021 regulates the process for the incorporation, amendment and dissolution of companies, which was previously regulated in the now-revoked Minister of Law and Human Rights Regulation No. 4 of 2014 dated March 25, 2014 on the Procedure to Submit Legal Entity Ratification Application and Amendment of Articles of Association and Notification Regarding Amendments of Articles of Association and Company Data, as lastly amended by Minister of Law and Human Rights Regulation No. 14 of 2020 dated May 18, 2020 on the Second Amendment of Ministry of Law and Human Rights Regulation No 4 of 2014 (collectively, the “Previous Regulation”). Most of the new provisions introduced in Regulation 21/2021 are regarding the procedures for Individually Owned Companies, with the highlights being as follows.
- Capital Contribution Companies
Incorporation of Companies
Capital Contribution Companies are to be incorporated by an applicant through a notary by filling out an electronic form in the Legal Entity Administration System (Sistem Administrasi Badan Hukum or the “SABH”). To do this, applicants must submit supporting documents, such as a copy of the Company’s deed of establishment, proof of capital injection, relevant statement letters from the company’s founders, etc.
Differ as regulated under the Previous Regulation whereby the Minister issues his Decree approving the granting of the legal status as a legal entity to such company, under the Regulation 21/2021the Minister will then issue a certificate of registration upon receiving the application.
Amendment of Articles of Association/Company Data and Dissolution of Company
Capital Contribution Company that wishes to amend its Articles of Association (“AOA”) must register the amendments to the Minister, the amendments include the change of name and/or domicile, objectives and business activities, duration, amount of issued capital, reduction in paid-up capital, and/or change in status of a limited liability company to a public company or vice versa.
In addition to the above, the following changes to the Company’s Data must also be registered to the Minister, which are as follows:
- changes to the shareholding structure due to a transfer of shares/change to the amount of shares owned;
- change in the board of directors/commissioners;
- mergers, acquisitions and spin-offs that are not accompanied by a change in the AOA;
- dissolution;
- expiry of the legal entity status;
- change in the name of shareholder due to the shareholder changing his/her name; and
- change to company’s complete address.
Please note the abovementioned changes to the Company’s AOA and Company Data (except letters (f) and (g) of Company Data changes) are required to be resolved by the General Meeting of Shareholders (“GMS”) under Regulation 21/2021. This was not expressly stated in the Previous Regulation. The abovementioned changes must also be stated in a notarial deed using Bahasa Indonesia within 30 days after the GMS. Furthermore, the above changes, except changes to the board of directors/commissioners, must then be submitted to the Minister within 30 days after the date of the notarial deed. Submission of the application for the amendment of the Company’s AOA/Data is also done through filling out a form in the SABH and uploading supporting documents.
- Individually Owned Companies
Incorporation
Similar to its multi-shareholder counterpart, applications for the incorporation of Individually Owned Companies are also done through the SABH. However, in the case of Individually Owned Companies, the founder (and not a notary) shall fill out a Statement of Incorporation form. Upon receiving the application, the Minister will then issue a certificate of statement of incorporation (“Statement of Incorporation”).
Amendments to Statement of Incorporation
The Statement of Incorporation as previously mentioned may be amended by filling out the data to be amended on a Statement of Amendment Form. After receiving the Statement of Amendment, the Minister will then issue a Statement of Amendment Certificate.
Change of Company Status from Individually Owned Company to Capital Contribution Company
GR 8/2021 stipulates that if an Individually Owned Company has more than 1 shareholder or no longer fulfills the criteria of a micro and small enterprise, its status shall be changed into a Capital Contribution Company. In order to do this, the Individually Owned Company must change their status through a notarial deed and register it to the Minister.
Financial Statement Reporting
For Individually Owned Companies, financial statements must be reported through the SABH by latest 6 months after the current accounting period, which report contains the report on financial position, profit/loss report, and notes on the current year financial report.
The Minister shall issue a receipt for the financial report; and failure to submit financial reports would warrant administrative sanctions in the form of written warning, suspension of access rights to service, or revocation of legal entity status.
Dissolution and Deletion of Legal Entity Status
Similar to the other processes, dissolution of an Individually Owned Company is done through the SABH. If the Individually Owned Company is declared bankrupt, the dissolution may be done after the curator has settled all of the company’s bankruptcy assets. The dissolution of the Individually Owned Company itself is done through the deletion of the Individually Owned Company’s name from the Companies Registry maintained by the Minister.
Regulation 21/2021 provides more clarity towards the administration processes of Individually Owned Companies, and we may expect to see the start of the era of these new Individually Owned Companies.
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June 2, 2021
Please contact Inka Kirana (ikirana@aksetlaw.com), N. Sekar Lestari (nlestari@aksetlaw.com), or Caleb Sitorus (csitorus@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.
HukumOnline NexGen Lawyer 2021: Resilience and Determination of Alfa Dewi Setiawati, AKSET's Youngest Partner
The importance of getting a new perspective on self-reliance in the legal profession.
In January 2020, Alfa Dewi Setiawati was officially appointed as a Partner at AKSET. Not so long after that, right in March 2020, the DKI Jakarta Provincial Government issued a Large-Scale Social Restriction (PSBB) policy. AKSET also started working from home and significantly reduced direct contact, both with each other and with clients.
Despite facing many challenges throughout 2020 due to almost no opportunities to meet directly with colleagues or clients, Alfa discovers that it is during these challenging times that she finds the opportunity to understand and be more in tune with what is important to herself, the AKSET law firm where she works in, as well as her clients.
She learned that before the pandemic, many things had caused her to stick to the same lifestyle and perspective for years. The pandemic and all the limitations created by this new situation provided her with a way to look back at how these old patterns had affected her in a good and/or bad way. This pandemic seems to force her to slow down and look back on what things need to be fixed.
In her relationship with clients, being open and receptive to her clients' needs enables her to gain increased trust and confidence in her work. During a time of isolation and lesser human contact actually enables her to improve the quality of communication. Working from home provides more time gained from the absence of commuting.
To commemorate the first decade of AKSET, Alfa has an important role in cultivating the new face of AKSET. This success was realized with the launch visual branding of AKSET's new and logo on October 10, 2020 with the #allnewakset as its overarching concept. This new concept introduces a balance between maintaining a youthful sense while embracing a more mature AKSET by imbuing a darker orange color to its logo identity. AKSET’s new logo also adopts a slant on its top to signify progress.
Aside from rebranding efforts, Alfa is also a pioneer of a self-development program, the Lawyers' Annual Talk, which this year was held in the format of small group sessions. This program is an opportunity to find solutions to challenges in achieving work productivity and determining the most important qualities or competencies of an advocate which will later be used as part of the appraisal process in the annual evaluation. Therefore, it is hoped that this program will become a forum for associates to give honest feedback to management and agree on professional competency points to achieve and maintain throughout the year.
Alfa is the youngest Partner in AKSET who has an important role and contribution to the firm. Her presence brings fresh air and new dynamism to the AKSET partnership. "Working with Alfa proves that hard work, determination and perseverance are the elements that young lawyers need to be able to compete in their career paths and gain the trust of both clients and colleagues in carrying out their duties," said Abadi Abi Tisnadisastra, Managing Partner of AKSET.
Prior to 2020, Alfa has been known as a highly resilient person in her profession. Apart from being known to be able to endure working the long hours, she is also very accommodating to her client's needs, especially during tight deadlines and demanding circumstances. She is well-known for her wide-ranging knowledge of legal issues, which enables her to provide well-rounded advice to her clients.
These qualities do not stop Alfa from continuing to explore more knowledge in her professional field and develop her perspective as an individual who has a social function in the community and her immediate environment.
During WFH, she understands better that focusing on her well-being will provide ultimate benefit for the people around her. She has come to understand the importance of making sure that “her glass is full” to give her 100% focus and presence to her clients, colleagues, and her family at home.
In mid-2020, Alfa joined as a contributor to one of the educational platforms for mental health and mindfulness, @pymgive. With more than 12,000 current followers, Alfa hopes to contribute to providing information and education about the importance of maintaining mental, physical, and spiritual health, especially in challenging periods such as this pandemic.
She believes that resilience as an advocate means not only in the ability to work tirelessly for the benefit of clients, but also the ability to overcome problems faced in times of solitude or separation from social life and uncertain economic conditions, and to rise again as an individual who is better off for themselves and in carrying out the role of the legal profession.
Resilience dan Determinasi Alfa Dewi Setiawati, Partner Termuda AKSET
Pentingnya dapatkan perspektif baru mengenai ketangguhan diri dalam profesi hukum.
Pada Januari 2020, Alfa Dewi Setiawati secara resmi diangkat menjadi salah satu Partner di AKSET. Tak begitu lama, tepat di bulan Maret 2020, Pemerintah Provinsi DKI Jakarta mengeluarkan kebijakan Pembatasan Sosial Berskala Besar (PSBB). AKSET pun mulai bekerja dari rumah dan mengurangi secara signifikan kontak secara langsung baik, antara satu sama lain maupun dengan klien.
Meski menghadapi banyak tantangan sepanjang tahun 2020 karena hampir tidak adanya kesempatan untuk bertemu langsung dengan kolega maupun klien, Alfa mendapati bahwa dalam masa inilah terbuka kesempatan untuk memahami dan menyelaraskan hal yang berarti untuk dirinya, firma hukum AKSET tempat ia bekerja, dan pada akhirnya, klien-kliennya.
Ia belajar bahwa sebelum pandemi, banyak hal yang menyebabkan dirinya terpaku pada pola hidup dan cara pandang yang sama selama bertahun-tahun. Pandemi dan segala keterbatasan yang tercipta dari keadaan baru ini memberikannya cara untuk melihat kembali bagaimana pola-pola lama tersebut mempengaruhi dirinya secara baik dan/atau buruk. Pandemi seperti memaksa dirinya untuk jalan melambat dan menengok kembali apa hal-hal yang perlu diperbaiki.
Dalam menjalin komunikasi dengan klien, Alfa mendapati bahwa dengan bersikap terbuka dan peka terhadap kebutuhan klien, ia dapat meningkatkan kepercayaan klien dalam pekerjaannya. Masa-masa dimana sangat sedikit kontak sosial justru memberikan kesempatan kepadanya untuk lebih meningkatkan kualitas berkomunikasi. Working from home memberikan waktu lebih dari tidak diperlukannya menempuh perjalanan ke kantor.
Untuk memperingati dekade pertama AKSET, Alfa memiliki peran penting dalam penggarapan wajah baru dari AKSET. Keberhasilan ini diwujudkan dengan peluncuran visual branding serta logo baru dari AKSET tepat pada tanggal 10 Oktober 2020 dengan konsep utama #allnewakset. Konsep baru ini memperkenalkan keseimbangan antara mempertahankan jiwa muda sekaligus menjadi AKSET yang lebih dewasa dengan menambahkan warna oranye yang lebih gelap pada identitas logonya. Logo baru AKSET juga menambahkan garis kemiringan ke atas yang merupakan simbol dari "progress".
Selain dari perannya dalam AKSET rebranding, Alfa juga merupakan pelopor dari program pengembangan diri, Lawyers' Annual Talk, yang pada tahun ini diadakan dalam format sesi grup kecil. Program ini merupakan kesempatan untuk menemukan solusi atas tantangan dalam mencapai produktifitas bekerja serta mengidentifikasi kualitas atau kompetensi terpenting dari seorang advokat yang nantinya akan dijadikan tolak ukur dalam evaluasi tahunan. Oleh karena itu, program ini diharapkan telah menjadi wadah para associate untuk memberikan masukan secara terbuka kepada manajemen serta menciptakan kesepakatan terhadap poin kompetensi profesional yang perlu dicapai dan dipertahankan sepanjang tahun.
Alfa merupakan partner termuda di AKSET yang memiliki peran dan kontribusi penting bagi firma. Kehadiran Alfa membawa angin segar dan dinamisme baru kedalam partnership AKSET. “Bekerja bersama Alfa membuktikan bahwa kerja keras, determinasi dan ketekunan adalah benar merupakan elemen-elemen yang perlu dimiliki lawyer usia muda untuk bisa berkompetisi didalam perjalanan karir dan mendapatkan kepercayaan baik dari klien maupun rekan kerja dalam menjalankan tugasnya” ungkap Abadi Abi Tisnadisastra, Managing Partner, AKSET.
Sebelum tahun 2020, Alfa dikenal sebagai sosok yang sangat tangguh dalam menjalankan profesinya. Selain dapat melewati waktu kerja yang panjang, ia juga sangat akomodatif terhadap permintaan klien, terutama dengan deadline yang ketat dan dalam kepentingan yang mendesak. Ia dikenal dengan pengetahuannya yang luas dalam berbagai aspek hukum yang membuatnya dapat memberikan nasihat yang menyeluruh kepada kliennya.
Kelebihan-kelebihan ini tidak menghentikan Alfa untuk terus menggali pengetahuan di bidang profesinya serta mengembangkan perspektif dirinya sebagai individu yang memiliiki fungsi sosial di masyarakat dan lingkungan terdekatnya.
Selama menjalani WFH, Alfa memahami bahwa memberikan fokus lebih dalam kepada diri sendiri justru memberikan manfaat untuk orang-orang di sekitarnya, termasuk dan terutama klien. Ia mulai memahami pentingnya memastikan bahwa "her glass is full" agar dapat memberikan 100% fokus dan kehadirannya pada klien, kolega, dan keluarga.
Di pertengahan tahun 2020, Alfa bergabung untuk menjadi salah satu kontributor di salah satu platform edukasi untuk kesehatan mental dan mindfulness, @pymgive. Dengan followers yang pada saat ini telah mencapai lebih dari 12.000, Alfa berharap dapat berkontribusi dalam memberikan informasi dan edukasi tentang pentingnya menjaga kesehatan mental, jasmani, dan rohani, terutama pada periode yang menantang seperti dalam masa pandemi ini.
Ia percaya bahwa ketangguhan diri atau 'resilience' sebagai advokat bukan hanya dalam kemampuan bekerja tanpa kenal lelah untuk kepentingan klien, tetapi juga kemampuan untuk mengatasi masalah yang dihadapi dalam masa kesendirian atau keterpisahan dari kehidupan sosial serta ketidakpastian kondisi ekonomi, dan untuk bangkit lagi menjadi seorang individu yang lebih baik untuk diri sendiri maupun dalam mengemban peran sebagai profesi hukum.
***
New Sanctions and Appeals Procedure Under Indonesian Competition Law
One of the laws amended by Law No. 11 of 2020, dated November 2, 2020 on Job Creation (the “Job Creation Law”) was Law No. 5 of 1999 dated March 5, 1999 on the Prohibition of Monopolistic Practices and Unfair Business Competition (the “Competition Law”). Through the enactment of the Job Creation Law, there are several changes to the existing provisions under the Competition Law, among others: changes to the appeals system and sanctions. One of the highlights of those changes is that most of the provisions regarding criminal sanctions—except for those regarding non-compliance during KPPU investigations—were scrapped. In place of this, the government has opted to expand on the administrative sanctions of the law. Furthermore, since the enactment of the Job Creation law, objections to the decisions of the Business Competition Supervisory Commission (the “KPPU”) are now handled by the Commercial Court instead of the District Court.
To provide further clarity on the above changes to the provisions under the Competition Law, the Indonesian Government recently enacted Government Regulation No. 44 of 2021 dated February 2, 2021 on the Implementation of the Prohibition of Monopolistic Practices and Unfair Business Competition (“GR 44/2021”). The key provisions of GR 44/2021 are as follows:
- Authority of KPPU
GR 44/2021 reiterated that the KPPU holds the authorities mandated by the Competition Law, which essentially include: receiving reports from the public for suspected monopolistic practices or unfair business competition or conducting their own investigation on the same matter, examining and trying the relevant parties suspected of monopolistic practices or unfair business competition, issuing a verdict on the matter and imposing the party with the appropriate sanction. Although there have been no changes to the authority of the KPPU made by the amended version of the competition law, GR 44/2021 clarifies that in conducting their trial and examination, the KPPU shall form a Commission Tribunal. The Commission Tribunal will be responsible for the entire trial process from the case examination until the issuance of a decision and sanction (if any).
- Sanction
Violations of various provisions in the Competition Law by Business Actors may be subject to administrative sanctions that will be imposed by the KPPU by taking into account the following criteria:
- Degree or impact of the relevant violation conducted by a Business Actor;
- Continuity of the Business Actors’ business activities;
- Clear assessment and considerations;
Furthermore, type of the administrative sanctions under GR 44/2021 are as follows:
- nullification of an agreement;
- order to a Business Actor to stop a vertical integration;
- order to a Business Actor to stop any actions that are proven to give way to Monopolistic practices, causing unfair business practices and/or are detrimental for the public;
- order to a Business Actor to stop the abuse of a dominant position;
- nullification of a merger or consolidation of a business entity and an acquisition of shares;
- stipulation to pay damages; and/or
- imposing a minimum fine of Rp1,000,000,000 (one billion rupiah), by taking into account the provisions of the amount of the fine that is regulated by GR 44/2021.
Concerning the administrative sanction under item (g) above, the KPPU may impose a fine of up to:
- 50% (fifty percent) of the net profit obtained by the Business Actor from the Relevant Market throughout the time frame of the violation; or
- 10% (ten percent) of the total sales on the Relevant Market throughout the time frame of the violation.
The KPPU’s decision to impose a fine of a certain amount must also be based on the following considerations:
- Negative impact caused by such violation;
- Period of such violation;
- Aggravating and mitigating factors; and/or
- The capability of such Business Actors to pay the relevant fine.
- Objections to KPPU Decisions
Business Actors who disagree with a KPPU decision may file an objection to the Commercial Court within the Business Actors’ domicile. Unlike the appeals procedure in the District Court, the Commercial Court will assess both material and formal aspects of a case. The Commercial Court is also given ample time to inspect the case from 3 (three) to 12 (twelve) months, whereas previously, the District Court had to issue a verdict within 30 (thirty) days after the commencement of the inspection. With more time afforded to the court, they are expected to be more thorough with their investigation so that they may be able to issue a fair verdict. In the event that any party is unsatisfied with the Commercial Court’s verdict, GR 44/2021 enables that party to file for a cassation regarding the verdict to the Supreme Court.
The enactment of GR 44/2021 encourages Business Actors to become more careful in making sure that their actions are compliant with Indonesia’s competition policies, considering the sizeable fines that they may have to pay in the event there is a violation of the provisions under the Competition Law. On the other hand, should Business Actors disagree with a KPPU decision, more legal recourses are now available for them.
***
April 16, 2021
Please contact Alfa Dewi Setiawati (asetiawati@aksetlaw.com), Raden Suharsanto Raharjo (rraharjo@aksetlaw.com), Adhitya Ramadhan (aramadhan@aksetlaw.com) or Caleb Sitorus (calebsitorus@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.
New Sanctions and Appeals Procedure Under Indonesian Competition Law
Supreme Court Affirms Diseases Caused by Drugs, Alcohol, and Hobbies are Not Covered by BPJS
As known, the Social Health Insurance Administration Body or Badan Penyelenggara Jaminan Sosial Kesehatan (“BPJS Kesehatan”) is the organizer of the health insurance. As the furtherance of the enactment of Law No. 40 of 2004 dated 19 October 2004 concerning the National Social Insurance System (“Law 40/2004”), the government issued Presidential Regulation No. 82 of 2018 dated 17 September 2018 concerning Health Insurance as lastly amended by Presidential Regulation No. 64 of 2020 dated 6 May 2020 (“PR 82/2018”). Law 40/2004 mandates that the types of diseases which are not covered by BPJS must be elaborated further through the establishment of a Presidential Regulation. PR 82/2018 regulates, among others, the types of disease which are covered by BPJS. PR 82/2018 provides certain exceptions of the diseases covered by BPJS Kesehatan.
Pursuant to Article 52 (1)(i)(j) PR 82/2018, health services which are not guaranteed includes services for health disorders caused by drug and/or alcoholic beverage dependence, deliberate self-harm, or hobbies which endanger the life of a person. This specific rule appears to be controversial for public and subsequently, a group of communities filed a request for review to the Supreme Court.
In its Decision No. 55P/HUM/2020 dated December 3, 2020 (“SC Decision 55P/2020”), the Supreme Court insists that the state’s policy of not covering diseases caused by drugs, alcoholic beverages, and hobbies is in accordance with the national laws. Therefore, the Supreme Court rejected the request for review submitted by the applicants.
The Supreme Court considers that there are other sources of financing which are deemed sufficient to cover health services for diseases caused by drugs and/or alcoholic beverage dependency. The Supreme Court affirms that in order to avoid overlapping or duplication of sources of funding, these health services shall be excluded from the benefit package of BPJS Kesehatan.
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April 15, 2021
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@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.
Government Bans Home-Town Bound Trips for Eid al-Fitr 2021
On April 7, 2021, the Indonesian Covid-19 Task Force issued Circular Letter No. 13 of 2021 on the Restrictions of Home-town Bound Traveling for Eid al-Fitr 1442 Hijri and Efforts to Control the Spread of Covid-19 During the Holy Month of Ramadhan 1442 Hijri (the “Circular Letter”). The Circular Letter is issued in relation to the Government’s effort to limit and discontinue the spread of Covid-19 that will potentially increase due to trips of the public for religious, family-related, or tourism activities during the Holy Month of Ramadhan, especially homeward bound traveling (locally known as “mudik”).
The Circular Letter will be effective from May 6, 2021 until May 17, 2021 (both dates inclusive, the “Restricted Period”) and will be adjusted with the needs and/or recent developments.
We set out below the key points under the Circular Letter that the public will be subject to.
- Protocols for Restrictions of Mudik and Prevention of Covid-19 Spread
During the Restricted Period, mudik, including all forms of travels in and out of their respective regions (“perjalanan orang”), is temporarily restricted for public using all cross-town/district/province/country modes of transportation (land, train, sea, and air) as an effort to limit human mobilities during the Holy Month of Ramadhan and Eid al-Fitr.
Perjalanan orang is allowed for logistic distribution services and traveling, in forced circumstances, for non-mudik purposes, which are: business trips, visiting an unwell family member, attending a family member’s funeral, a pregnant woman accompanied by 1 family member, and childbirth-related matters accompanied by maximum 2 people. In such conditions, travelers must attain a print-out of a written travel permit or entry and exit permit (Surat Izin Keluar Masuk, an “SIKM”), with the following requirements:
- For employees of government institutions/state apparatus (ASN), employees of state-owned or regional-owned enterprises (BUMN or BUMD), Militaries, and Police members, they must attach a print-out of a written travel permit signed or e-signed by officials equivalent as Echelon II and the traveler’s identity;
- For employees of private-sector companies, they must attach a print-out of a written travel permit signed or e-signed by the leaders of the company and the traveler’s identity;
- For informal sector workers, they must attach a print-out of a written travel permit signed or e-signed by Head of the Village (Kepala Desa) or Lurah and the traveler’s identity;
- For non-working individuals, they must attach a print-out of a written travel permit signed or e-signed by Head of the Village (Kepala Desa) or Lurah and the traveler’s identity;
Such a written travel permit or an SIKM only applies individually, valid for one round trip, and is mandatory for travelers who are 17 years of age or older.
In addition, all travelers are subject to the protocols for domestic travelers based on the Indonesian Covid-19 Task Force Circular Letter No. 12 of 2021 on Provisions for Domestic Travelers during the Covid-19 Pandemic, as explained in our previous newsflash: Updated Protocols and Guidance for Domestic Travelers - AKSET Law, in which document screenings for negative Covid-19 test results will be carried out in rest areas, borders of major cities, checkpoints, and agglomeration area sealing points, by the members of military/police and regional government.
Indonesian citizens who are currently abroad and wish to return to Indonesia or repatriate are encouraged to postpone their return until after the Restricted Period.
- Sanctions
Forgery of negative Covid-19 test results using RT-PCR/antigen rapid test/GeNose C19 or written travel permits/SIKMs for non-mudik purposes will be subject to sanctions in accordance with the applicable laws.
In addition, violations of the Circular Letter will be subject to fines, social sanctions, confinement and/or other criminal sanctions in accordance with the applicable laws.
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April 12, 2021
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or 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.
Government Bans Home-Town Bound Trips for Eid al-Fitr 2021
Key Changes to the Regulation on Actuaries
On December 30, 2020, the Minister of Finance issued Regulation No. 227/PMK.01/2020 of 2020 on Actuaries (“MOF Reg. 227”). MOF Reg. 227 revoked the previous regulation on actuaries, namely the Ministry of Finance Regulation No. 137/PMK.01/2016 of 2016 dated September 20, 2016 (“MOF Reg. 137”).
We set out below a summary on the key changes between the provisions under MOF Reg. 137 and MOF Reg. 227.
- Types of Actuaries
Under the previous regime, MOF Reg. 137 only provided definitions of Registered Actuary, Registered Actuary Adjunct and Public Actuary. While now MOF Reg. 227 expands the definitions of actuaries as well as those who are qualified to provide actuarial services as follows:
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- Actuary: an individual who has obtained a certification from FSAI (Fellow of the Society of Actuaries of Indonesia) or other equivalent and recognized certification;
- Actuary Adjunct: an individual who has obtained a certification from ASAI (Associate of the Society of Actuaries of Indonesia) or other equivalent and recognized certification;
- Registered Actuary: Actuary who is registered to provide actuarial services in accordance with MOF Reg. 227;
- Registered Actuary Adjunct: Actuary Adjunct who is registered to provide actuarial services in accordance with MOF Reg. 227;
- Public Actuary: individuals who have obtained a license from the Ministry of Finance to provide actuarial services to the public.
Please note that a Registered Actuary Adjunct and Registered Actuary may assist a Public Actuary in providing actuarial services to companies and/or an Actuarial Consulting Office (“ACO”). However, please note that a Registered Actuary Adjunct and a Registered Actuary are prohibited from signing-off an Actuarial Services Report (as we elaborate below). Notwithstanding the above definitions of actuaries, we note that the general concept on who will be qualified to provide actuarial services is still similar.
- Definition of Actuaries Report
MOF Reg. 227 now provides more detailed definition of an “Actuarial Service Report” as follows:
“written documents consisting of an analysis, opinion, and/or recommendation on actuarial services that is signed by a public actuary, including other documents deemed as actuaries report in accordance with the applicable laws and regulations.”
Previously, MOF Reg. 137 only defined “Actuaries Report” as follows:
“written document consisting of an analysis and recommendation on actuarial services that is signed by public actuary.”
- Scope of Actuarial Services
MOF Reg. 227 now stipulates a broader scope of actuarial services compared to the existing scope of actuarial services that were regulated under MOF Reg. 137. Please refer to the below.
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- Actuarial statement in relation to insurance products, including premium rates and profitability of products. Previously, MOF Reg.137 did not include premium rates and profitability of products as part of the scope;
- Determination of financial soundness and capital adequacy for insurance companies and other financial industries, such as pension fund;
- Liability determination on reserve fund of insurance companies, pension fund, social security, and other company that requires actuarial calculation technique. We note that this scope was also stipulated under MOF Reg. 137;
- Estimation of margin of risks and planning of possible benefit payments in the future for the insurance sector and other financial industries, such as pension fund;
- Valuation of actuarial aspects and providing consultation or advice that requires actuarial calculation technique; and
- Other actuarial services or other services that are required to be signed off by a public actuary in accordance with the applicable laws and regulations. We note that MOF Reg. 137 also stipulated a similar scope.
- Whether or Not Companies Can Provide Actuarial Services
Under the MOF Reg. 227, it is now stipulated that every company that has a unit that provides actuarial services is required to hire, at the minimum, a registered actuary adjunct or a registered actuary. Please note that MOF Reg. 137 was silent on this requirement.
- Whether or Not Public Actuary Can be Hired by a Company
In relation to the actuary services provided by a public actuary, MOF Reg. 227 stipulates that a public actuary in providing actuarial services is required to provide such services through:
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- Insurance company or other company, in accordance with the applicable laws and regulations, as an actuary of the company; and/or
- ACO as an actuarial consultant.
Furthermore, a public actuary may hold multiple positions, namely as an actuary consultant and an actuary of a company, as long as there is no conflict of interests.
Please note that MOF Reg. 137 was silent on the above provisions.
- Contents of an Actuaries Report
Similar to the existing provisions Under MOF Reg. 137, MOF Reg. 227 now reiterates that an actuaries report must:
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- be made in Bahasa Indonesia;
- be made based on the agreement or task given by the task assignor;
- be signed off by a public actuary who has signed such agreement or received such task by the task assignor, and list their license number;
- list the report number;
- list the names and register numbers of registered actuary adjunct and/or registered actuary, if they are involved in the preparation of the actuarial service report.
In addition to that, a public actuary must prepare and maintain a working documentation (kertas kerja) with respect to the relevant actuaries report that will be published.
- Transitional Provisions
We set out below the transitional provisions of MOF Reg. 227 regarding license of ACO, certificates of registered actuary adjunct and registered actuary, license of public actuary, and prohibition of providing actuarial services.
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- License of ACO that was issued in accordance with the previous regulation, namely Ministry of Finance Decree No. 425/KMK.06/2003 on Licensing and Administration of Supporting Business Activities of Insurance will still be valid until September 20, 2021. Subsequently, such license will be declared invalid and such ACO must apply for a license based on the provisions under MOF Reg. 227.
- Certificates of registered actuary adjunct and registered actuary, license of public actuary, and license of ACO that was made in accordance with MOF. Reg 137 is still valid. On the other hand, applications for such certificates and licenses that were already submitted, but has not been given a license or approval, must be resubmitted based on the provisions under MOF Reg. 227
- With the enactment of MOF Reg. 227, all parties are prohibited from providing actuarial service (please see section on “Scope of Actuarial Service” in point 3 above) if such party does not fulfill the requirements under MOF Reg. 227. We note that MOF Reg. 137 also stipulated a similar provision.
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April 8, 2021
Please contact for Abadi Abi Tisnadisastra (atisnadisastra@aksetlaw.com), Adhitya Ramadhan (aramadhan@aksetlaw.com), or 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.
Key Changes to the Regulation on Actuaries
New Immigration Policies During New Normal Adaptation Period
On March 26, 2021, the Director General of Immigration (the “DGIM”) issued Circular Letter No. IMI-0661.GR.01.01 regarding Visa and Stay Permit Provisions During the New Normal Adaptation Period (“CL 0661”). CL 0661 replaces and revokes the DGIM Circular Letter No. IMI-1555.GR.01.01 dated October 15, 2020 regarding Visa and Stay Permit Provisions During the New Normal Adaptation Period (“CL 1555”) and the DGIM Circular Letter No. IMI-GR/01.01-0331 dated February 11, 2021 on the Reinforcement of CL 1555. CL 0661 enters into force as of March 26, 2021.
CL 06661is issued as a guideline to optimize the function of the immigration office in carrying out the visa and stay permit services during this “new normal” period. The key provisions of the circular are as follows.
- Visa Application Provisions
- No Requirement to Submit Health Certificates
While the entry restrictions as established in Minister of Law and Human Rights Regulation No. 26 dated October 1, 2020 Regarding Visas and Stay Permits During the New Normal (the “MOLHR Regulation”) are still in place (i.e., temporary suspension of the issuance of visa-free entries and visas on arrival), foreigners that wish to enter Indonesia may apply for a Visitor Visa or a Limited Stay Visa. Such visa applications were already accommodated in CL 1555. However, previously it was required for the applicants to submit health certificates that stated they had tested negative for COVID-19. This requirement no longer applies under CL 0661. However, please note that eVisa ending with “DN” cannot be used for travel into Indonesia.
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- Single-Entry Visitor Visa for Humanitarian Reasons
For foreigners that intend to visit/accompany their family members who are sick in Indonesia, or for other medical purposes, a Single-Entry Visitor Visa may be issued, provided they fulfill the application requirements stipulated in the MOLHR Regulation ( declaration of willingness to enter into quarantine at own expenses at government-appointed facilities if visitors show COVID-19 symptoms/are declared positive upon entry in Indonesia; declaration of willingness to be under supervision while under quarantine; proof of health/travel insurance that covers medical expenses or declaration of willingness to pay for COVID-19 treatment at own expense).
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- Waiver of Requirement to Provide Proof of Accounts Having At Least US$10,000
The MOLHR Regulation also requires applicants of a Single-Entry Visitor Visa to show proof that they have at least US$10,000 to sustain the cost of living while in Indonesia. Under CL 0661, this requirement is waived for applicants who are aid workers, medical and food aid, transportation crew and visitors who apply for humanitarian reasons.
- Stay Permit Provisions
- Extension/Renewal of Various Stay Permits for Foreigners
Foreigners within Indonesia who hold a Visiting Stay Permit granted through their Visas on Arrival, Single-Entry Visitor Visas, Multiple-Entry Visitor Visas, or APEC Business Travel Cards may request an extension for their Stay Permit through the immigration office. For foreigners holding Visiting Stay Permits, Limited Stay Permits, or Fixed Stay Permits that cannot be extended, they may request a new Stay Permit after obtaining a Visa Approval. If foreigners holding a Limited Stay Permit or a Fixed Stay Permit wish to apply for a visa, they must first return immigration documents to the immigration office.
- Stay Permit Application
To apply for a new Stay Permit, applicants must first apply for a Visa before their current Stay Permit ends. Applicants who overstayed their permits by less than 60 days, may still apply for a visa, provided that they settle their fines first. However, if the applicant’s overstay exceeds 60 days, if an applicant is deported or has his/her stay permit extension application denied, he/she must leave Indonesia immediately.
The issuance of this Circular Letter is expected to provide ease and clarity of immigration services during this new normal period. We expect that these travel policies will be further relaxed in the future as the COVID-19 situation improves.
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April 5, 2021
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or Caleb Sitorus (csitorus@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.