Minister of Manpower Adjusts Job Loss Benefit Regulation: Improves Process and Access, Establishes Limits
On March 25, 2025, the Minister of Manpower (the “MoM”) issued Regulation No. 2 of 2025 which took effect retroactively from February 7, 2025 (the “Amendment”). The Amendment updates MoM Regulation No. 15 of 2021 on Procedures for the Granting of Job Loss Benefits (the “Regulation”). The Amendment was issued in conjunction with Government Regulation No. 6 of 2025 which amends Government Regulation No. 37 of 2021 on Organization of the Job Loss Benefit Program.
The Amendment introduces improvements to the Job Loss Benefits (in Indonesian, Jaminan Kehilangan Pekerjaan or “JKP”) administered by the Social Security Agency for Employment (“BPJS Ketenagakerjaan”), including clearer provisions, adjusted benefits, and more streamlined processes. However, it also introduces certain important limitations.
We set out below the key highlights of the Amendment.
♦ Cash Benefit Adjustments
The Amendment increases the cash benefit amount by setting it at 60% of the wage for a full six months. Previously, the Regulation provided cash benefits at 45% of the wage for the first three months and 25% for the following three months.
Similar with the Regulation, the Amendment stipulates that the maximum wage used as the basis for calculating the JKP cash benefit is capped at Rp5,000,000 (the “Upper Limit”). Accordingly, if a participant’s latest wage exceeds the Upper Limit, the cash benefit will be calculated based on the Upper Limit rather than the participant’s actual wage.
♦ Access to Benefits
The Amendment simplifies the application process and the eligibility for claiming the JKP. Previously, the Regulation required participants to have: (i) contributed to BPJS Ketenagakerjaan for at least 12 months within the preceding 24 months, and (ii) paid contributions for six consecutive months prior to termination of employment. The Amendment removes the requirement of the six consecutive month contributions, making it easier for individuals with non-continuous contribution histories to qualify for the JKP.
♦ Proof for Claiming JKP
The Amendment introduces a new requirement that participants may submit proof of employment termination in the form of: (i) a deed of registration of a mutual termination agreement issued by the Labor Court; or (ii) a copy of the Labor Court’s decision on employment termination. In such cases, the Amendment provides that the JKP application will be considered submitted as of the date of issuance of the deed of registration or the Labor Court’s decision.
♦ Cash Benefit Eligibility
The Amendment eases certain eligibility requirements for receiving cash benefits. Under the Regulation, participants were required to demonstrate that they had submitted job applications to five different companies within one month. The Amendment relaxes this condition by allowing participants to qualify simply by showing that they have submitted five job applications, regardless of whether they are sent to different companies.
However, the Amendment reinforces certain conditions. To receive the cash benefit for the sixth month, participants are now required to both submit proof of active job seeking and complete an employment status form. Previously under the Regulation, participants could fulfill this requirement by choosing either one of these options.
♦ JKP Payment for Employees of a Bankrupt Company
Under the Amendment if a company closure is due to bankruptcy with outstanding contributions of six months, the JKP benefits for the affected participants will be paid by BPJS Ketenagakerjaan. The company’s bankruptcy must be evidenced by (i) a final and binding court decision, and (ii) a statement letter from the Ministry of Law. However, such payment by BPJS Ketenagakerjaan does not eliminate the company’s obligation to settle the outstanding contributions and any applicable fines.
♦ Adjustment to Job Market Information Benefit
In addition to cash benefits, JKP participants are entitled to receive job market information and job training. With respect to the job market information benefit, the Amendment clarifies that JKP beneficiaries shall obtain a recommendation from a job intermediary officer under the Ministry of Manpower or the relevant regional Manpower Offices. This recommendation is a requirement for accessing job training. Previously, the Regulation did not specify which party could issue such a recommendation.
♦ Job Training Benefit Adjustments
JKP beneficiaries are now permitted to participate in more than one job training session, provided that the training aligns with the results of their career counseling and the total cost does not exceed the limit set under the applicable laws and regulations. Previously, the maximum job training benefit was capped at Rp1,000,000 per person. This cap is now increased to Rp2,400,000. Lastly, the Amendment removes several provisions related to the implementation of job training, including the requirement for beneficiaries to submit a completion report and the involvement of the Ministry of Manpower in the process.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), or Giorgio Alexander William Robot (grobot@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 Legalization of Cooperatives: Facilitating Merah Putih Cooperatives
On April 23, 2025, the Minister of Law issued Regulation No. 13 of 2025 on Legalization of Cooperatives (the “Regulation”). This Regulation replaces the Minister of Law and Human Rights Regulation No. 14 of 2019 on Legalization of Cooperatives (the “Previous Regulation”). The Regulation aims at supporting the formation of Koperasi Merah Putih (the “Merah Putih Cooperatives”) as instructed by President Prabowo.
We set out below the key highlights of the Regulation.
♦ Background
Prior to the issuance of the Regulation, on March 27, 2025, President Prabowo issued Presidential Instruction No. 9 of 2025 on Acceleration of Formation of Merah Putih Cooperatives. With this Presidential Instruction the President wishes to establish 80,000 Merah Putih Cooperatives across Indonesia as part of the Golden Indonesia 2045 Vision (Indonesia Emas 2045). Following this, the Minister of Law issued the Regulation to facilitate the formation and organization of these cooperatives by integrating them into the national cooperatives’ administration and streamlining the legalization process.
♦ Valid Applicants
The Regulation clarifies that founders of cooperatives are allowed to authorize a notary to submit applications to the Minister of Law through the Director General of Legal Administrative Affairs. In the Previous Regulation, it was unclear whether only attorneys of the founders could grant such authority or whether founders themselves could also do so.
♦ New Types of Cooperatives
Under the Previous Regulation, cooperatives include those operating in the fields of consumers, producers, services, savings and loans, and village unit cooperatives. The Regulation adds this list by introducing the Merah Putih Cooperatives and allowing for the inclusion of other types of cooperatives that may be established by future regulations and government programs.
While most cooperatives must comply with specific naming conventions, the Merah Putih Cooperatives are subject to a different set of rules. Merah Putih Cooperatives must use the name of the village (desa) and ward (kelurahan) in which the cooperatives are located. If there are multiple villages with the same name, the name of the sub-district (kecamatan) and regency (kabupaten) must also be included in the cooperative’s name to ensure clarity and distinction.
In addition, the Regulation requires cooperatives operating under syariah principles to include the word “Syariah” at the end of their names.
♦ Simplification of Printing of Deeds
Under the Previous Regulation, cooperative governance documents issued by the Minister of Law, including deeds of establishment, deeds of amendment to a cooperative’s articles of association, and acknowledgements of report receipt, were required to be printed by recipients on F4/folio-sized white paper with a minimum weight of 80 grams.
The Regulation removes these paper specifications, allowing recipients to print such documents on any type or size of paper which provides flexibility and reduces the administrative burden.
♦ Amendment to Cooperative Articles of Association Process
The Regulation clarifies the procedure for submitting applications to amend a cooperative’s articles of association. Under the Regulation, such applications must now be submitted to the Minister of Law through the Director General of Legal Administrative Affairs, whereas the Previous Regulation required direct submission to the Minister of Law.
In addition, the Regulation specifies the supporting documents that must be retained by notaries in connection with amendments to the articles of association. These include (i) the minutes of the notarial deed reflecting the amendment, (ii) the minutes of the members’ meeting approving the amendment; and (iii) in the case of amendments resulting from a merger or spin-off, the updated balance sheet of the cooperative that either receives the merger or is spun-off.
Furthermore, the Regulation introduces a new requirement for applicants to complete an electronic statement, a step that was not previously required under the Previous Regulation.
The Regulation introduces an additional requirement specifically for savings and loan cooperatives and cooperatives with a savings and loans business unit. When submitting an application to amend their articles of association, these cooperatives are required to include the following documents as part of their application: (i) a work plan for a minimum of 3 (three) years, (ii) documentation on administration and bookkeeping, (iii) the names and curriculum vitae of prospective managers, and (iv) a list of work facilities.
♦ Non-Electronic Application
The Regulation now allows non-electronic applications under certain circumstances. Specifically, if the notary is domiciled in a place that does not have internet access or if the Minister of Law announces that the administrative system is experiencing operational disruptions, applications for the establishment and amendment of a cooperative may be submitted through non-electronic means. The procedures for such submissions will be further regulated by the Director General of Legal Administrative Affairs.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), or Giorgio Alexander William Robot (grobot@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.
Minister of Industrial Affairs Enforces Mandatory SNI on Glazed Ceramic Tableware
Minister of Industrial Affairs Enforces Mandatory SNI on Glazed Ceramic Tableware
On March 27, 2025, the Minister of Industrial Affairs issued Regulation No. 14 of 2025 on the Enforcement of Mandatory Indonesian National Standard (“SNI”) on Glazed Ceramic Tableware (the “Regulation”). This Regulation replaces the Minister of Industrial Affairs Regulation No. 48 of 2018 on the Enforcement of SNI on Ceramic Tableware. The Regulation was enacted on April 25, 2025 and will come into force 6 (six) months following its enactment.
We set out below the key highlights of the Regulation.
♦ Mandatory SNI and its Scope
The Regulation mandates the application of SNI 7275:2022 on Glazed Ceramic – Tableware for all glazed ceramic tableware on a mandatory basis. Specifically, the Regulation applies to glazed ceramic tableware falling under Harmonized System codes (the “HS Code”) ex. 6911.10.00 and ex. 6912.00.00. For clarity, glazed ceramic tableware refers to dishes and utensils used for serving and eating meals at the table (i.e., plates and drinking cups) that are specifically made out of glazed ceramic. The Regulation further affirms that the enforcement of SNI 7275:2022 shall apply to both locally made and imported glazed ceramic tableware.
♦ Procedures for Acquiring SNI
The following is a brief overview of the procedures for acquiring SNI 7275:2022:
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- Submission of Applications
The submission is carried out electronically through the Ministry of Industrial Affairs’ online system called the National Industrial Information System (in Indonesian, Sistem Informasi Industri Nasional or “SIINas”). Through SIINas, applicants must submit the necessary information and supporting documents that are relevant for acquiring the SNI 7275:2022 certification.
- Submission of Applications
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- Conformity Assessments
A conformity assessment consists of (i) an audit of the production process and quality management system, and (ii) quality testing in accordance with the provisions of the SNI 7275:2022 certification. The audit and quality testing of the glazed ceramic tableware shall be performed by a Product Certification Agency and a testing lab.
- Conformity Assessments
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- Affixation of SNI Mark
Once the glazed ceramic tableware is confirmed to meet the applicable requirements, the SNI Mark and an electronic label shall be affixed to the product, subject to prior approval from the relevant officials of the Ministry of Industrial Affairs.
- Affixation of SNI Mark
♦ Applicant Requirements
In order to obtain the certification under SNI 7275:2022, an applicant must own a brand for the glazed ceramic tableware and possess the appropriate business licensing in the industrial sector, specifically within the scope of the KBLI number 23931 (Porcelain Household Goods Industry), and/or the KBLI number 23932 (Clay/Ceramic Household Goods Industry). For foreign applicants, they are similarly required to have their own brand for the glazed ceramic tableware and operate their business in the glazed ceramic tableware sector. This may be evidenced by the relevant business license(s) issued in their home country or by a statement letter from the relevant authorities in the country of the applicant.
However, since the application for the SNI 7275:2022 certification is submitted through SIINas which is only accessible to the Indonesian citizens, foreign applicants are required to appoint a representative in Indonesia (a “Local Representative”). The Local Representative will submit the application on their behalf using the Local Representative’s SIINas account.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), or Giorgio Alexander William Robot (grobot@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.
Ministry of Immigration and Corrections: New Regulation Strengthens Immigration Oversight
On February 7, 2025, the Minister of Immigration and Corrections issued Regulation No. 2 of 2025 on Immigration Oversight and Administrative Immigration Actions (the “Regulation”). The Regulation takes effect as of March 7, 2025 and replaces the Minister of Law and Human Right No. 4 of 2017 on Immigration Oversight Procedures (the “Previous Regulation”).
The Regulation introduces major improvements in immigration oversight and administrative actions. It is designed to address modern challenges by integrating technological advancements, enhancing institutional collaboration, and reinforcing national sovereignty and public security.
We set out below key highlights of the Regulation.
♦ Definition and Key Terms
The Regulation refines key definitions and expands the scope of operational procedures in immigration management. While the Previous Regulation provided concise definitions primarily focused on the movement of people and basic oversight procedures, the Regulation introduces more detailed descriptions of Indonesian travel documents (Dokumen Perjalanan Republik Indonesia or the “DPRI”), visas, residence permits, and the roles of guarantors. These expanded definitions provide a clearer framework for managing immigration functions while maintaining the fundamental concepts established under the Previous Regulation.
♦ Immigration Oversight Procedures
Unlike the Previous Regulation which provided general guidelines for administrative and field oversight, the Regulation establishes clearer and more detailed procedures. A key addition is the introduction of supporting tools for administrative oversight as specified in Article 4(3) of the Regulation. These include devices for biometric identification, passenger and crew profile information, digital forensics, data analysis, and other tools that enhance the effectiveness of immigration supervision.
♦ Oversight Procedures for Indonesians and Foreign Citizens
The Regulation provides distinctions in the oversight procedures for both Indonesians and foreign citizens. It establishes more structured and accountable processes compared to the Previous Regulation.
For Indonesians, oversight is divided into administrative and field measures. On the administrative side, authorities now follow specific procedures for collecting and verifying data related to the DPRI applications, travel records, the list of individuals subject to travel bans, as well as the collection of photographs and fingerprints. On the other hand, field oversight is conducted when a citizen applies for or uses a DPRI, registers as a dual citizen, crosses Indonesian borders, or acts as a guarantor for foreign nationals.
For the administrative oversight of foreign citizens, it may be carried out by collecting information and data regarding foreign citizens that use immigration services, being or in the process of detention, in the process of criminal procedures, on the list of travel bans, and collection of photographs, and fingerprints. Further, the Regulation stipulates that field oversight is implemented upon the occurrence of specific triggers, including:
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- the submission of a visa application;
- entry into or exit from Indonesian territory;
- the granting of a residence permit; and
- the individual’s presence and engagement in activities while in Indonesia.
Field inspections also include thorough checks of identity and documents, monitoring of activities, and verifying that foreign nationals are doing what they said they would do in Indonesia. Importantly, immigration officials now have clear authority to conduct covert surveillance, enter premises by force if necessary, and use physical restraint to manage security risks.
♦ Establishment of Supervision Team
The Regulation introduces the Foreigners Supervision Team (Tim Pengawasan Orang Asing or the “Team Pora”) as a dedicated supervisory task force. The Team Pora is established at the central, provincial, regency/city, and district levels and comprises representatives from various government agencies including law enforcement, intelligence, public health, and manpower. Its main duties are to ensure unified and coordinated oversight of immigration activities, both through administrative procedures and field operations. This represents a significant improvement in the Government's ability to monitor and respond to immigration issues, a key feature that was not addressed under the Previous Regulation.
♦ Administrative Immigration Actions
The Regulation updates the framework for imposing administrative immigration sanctions. Under its provisions, the applicable sanctions include: (i) placement on prevention or denial lists; (ii) the restriction, modification, or cancellation of stay permits; (iii) a prohibition on remaining in one or more designated areas within Indonesia; (iv) a requirement to reside in a specified location; (v) the imposition of administrative fees; and/or (vi) deportation from Indonesia.
Before any administrative action may be taken against a foreign citizen, the Regulation requires the fulfillment of three conditions. First, the available evidence must be deemed insufficient (meaning there is less than two types of sufficient evidence). Second, there must be reasonable suspicion that the individual intends to remain in Indonesia and may seek to exploit judicial remedies, particularly in cases involving fugitives or individuals fleeing instability in their home country. Third, broader considerations (including political, economic, social, cultural, and security factors) must indicate that an administrative approach would be more effective than pursuing standard criminal prosecution.
In addition, if multiple sanctions are imposed, each must be authorized through a separate administrative decision to ensure detailed and documented accountability. The Regulation also introduces a structured appeals process by granting foreign citizens with a 21-day period to challenge any administrative decision.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), or Rayhan Andana Harits (rharits@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.
Utilization of Embedded Subscriber Identity Module (e-SIM)
On April 11, 2025, the Minister of Communication and Digital issued Regulation No. 7 of 2025 on the Utilization of Embedded Subscriber Identity Module (“e-SIM”) Technology in Telecommunication Implementation (the “Regulation”).
The Regulation responds to technological innovation and the increasing ease of e-SIM utilization by telecommunications services subscribers, whether via mobile or satellite networks provided by telecommunication providers. The Regulation also aims at supporting the expansion of machine-to-machine (M2M) communication systems and Internet of Things (IoT). We set out below the key highlights of the Regulation relating to the utilization of e-SIM.
- Key Obligations for Telecommunication Providers in relation to e-SIM UtilizationThe implementation of the e-SIM technology may only be carried out by telecommunications providers classified as Mobile Cellular Network Operators and Satellite Mobile Network Operators (collectively, the “Providers”). The Providers are required to fulfill several key obligations as follows:
- System Provisioning: Providers must establish and operate systems that support the use of local International Mobile Subscriber Identity Numbers (the “IMSI Numbers”) and manage subscriptions involving local Mobile Subscriber Integrated Services Digital Network Numbers and the IMSI Numbers. In relation to the provision and operation of system provisioning, the Providers may cooperate with third parties that meet the requirements set forth in the Regulation.
- Customer Registration: The Providers are required to carry out customer registration in accordance with applicable laws and regulations.
- e-SIM Profile Storage and Protection: e-SIM profiles must be secure and protected within the provisioning system. The Providers must implement and comply with standard operating procedures aligned with data protection and privacy regulations.
- Data Security Certification: The Providers must meet the certification requirements under the approved data security accreditation scheme for their provision systems.
- Monitoring and Evaluation of e-SIM Utilization
The Government has enacted regulatory measures to monitor and evaluate such utilization of the implementation of e-SIM. This oversight shall be conducted based on report by the Providers, public complaints and/or on-site inspections. Failure by the Providers to fulfill obligations under this Regulation may result in administrative sanctions, including a written warning and/or public disclosure of the violation. - Transitional Provisions Upon Enactment of Regulation
The Providers and any other parties that implemented e-SIM utilization prior to the Regulation are granted a two-year transitional period to achieve full compliance with its provisions.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or Unisya Izhari Rinsta Savira (usavira@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.
Utilization of Embedded Subscriber Identity Module (e-SIM)
National Standardization Agency Allows Institution-Drafted Conformity Assessment Schemes, Eases SNI Certification for UMK
On March 14, 2025, the National Standardization Agency (Badan Standardisasi Nasional or “BSN”) issued the Head of the BSN Circular Letter No. 1/SE/KA.BSN/3/2025 of 2025 on the Implementation of BSN Regulation No. 9 of 2023 on the Procedures for the Preparation of Conformity Assessment Schemes to Indonesian National Standards (the “Circular Letter”).
The Circular Letter was issued in support of the Government’s initiative to promote micro and small enterprises (Usaha Mikro dan Kecil or “UMK”) as a vital part of Indonesia’s economy. It provides greater autonomy to the Conformity Assessment Institutions (Lembaga Penilaian Kesesuaian or an “LPK”) in arranging conformity assessment schemes, especially for UMK that possesses a Business Identification Number (Nomor Induk Berusaha or the “NIB”).
We set out below the key highlights of the Circular Letter.
♦ Institution-drafted Conformity Assessment Schemes for Voluntary SNI Products
Article 42(1) of Government Regulation No. 34 of 2018 dated July 20, 2018 on the Standardization and National Conformity Assessment Systems (the “Government Regulation”) states that conformity assessment schemes are to be arranged by BSN. However, with the issuance of the Circular Letter, LPKs are now permitted to develop conformity assessment schemes for Voluntary SNI products that do not yet have schemes established by the BSN. This must be done in accordance with BSN Regulation No. 9 of 2023 dated September 19, 2023 on the Procedures for the Preparation of Conformity Assessment Scheme to Indonesian National Standards (the “BSN Regulation”).
♦ SNI Certification Convenience for UMKs
The Circular Letter provides convenience for UMKs by allowing the initial certification process to be conducted online. It further stipulates that surveillance and recertification must be carried out through online methods. However, the Circular Letter does not elaborate on the specific procedures or platforms to be used for these online processes.
♦ SNI Certification Relief for UMKs
The BSN Regulation provides relief for UMKs seeking to acquire the SNI Certification by requiring the LPKs to (i) reduce the number of personnel involved in the conformity assessment process, (ii) shorten the time required for conducting the conformity assessment, and (iii) reduce the number of sample goods to be tested (where applicable), all with the aim of lowering the overall cost of the conformity assessment. However, the BSN Regulation does not provide further details on how these cost reductions should be implemented, which may result in inconsistent application across different LPKs.
The Circular Letter aims at providing the clarity by specifying the exact number of personnel and time involved in conducting conformity assessments for UMKs. The provisions are as follows:
- for UMKs with a maximum of 20 (twenty) employees, the conformity assessment must be conducted by 1 (one) personnel within 1 (one) day;
- for UMKs with more than 20 (twenty) employees, the conformity assessment may be conducted under one of the following arrangements:
- 1 (one) personnel within 1 (one) day;
- 1 (one) personnel within 2 (two) days; or
- 2 (two) personnel within 1 (one day).
Regarding the reduction of sample goods to be tested, the LPKs must request initial test results that align with the relevant SNI Certification as part of the certification application process. These results must have been issued no more than 1 (one) year prior to the certification application.
For food and beverage products, test results previously used by UMKs to obtain a distribution permit from the Food and Drug Supervisory Agency may be accepted as evidence of compliance with SNI Certification requirements, provided the results cover the same parameters required under the applicable SNI standards.
If a UMK does not possess any of the aforementioned test results, then the LPK may collect an unspecified number of product samples for testing purposes. Additionally, sampling and testing are not required during surveillance or recertification processes, provided there have been no changes to the raw materials, production processes, or product specifications.
Please note that the benefits provided under the Circular Letter are limited to the UMKs that hold an NIB.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), or Giorgio Alexander William Robot (grobot@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 Issues New Regulation on Children Protection in Electronic Systems
On March 28, 2025, President Prabowo Subianto announced the enactment of Government Regulation on Governance of Children Protection in Implementation of Electronic Systems (the “Regulation”). Unfortunately, as of the date of this Newsflash, the Regulation is not publicly available. We prepared this Newsflash based on the latest official draft of the Regulation (the “Draft GR”) that may be accessed through the website of the Ministry of Communication and Digital (the “MOCD”) as follows: Draft GR.
Based on the Draft GR, the Regulation is issued to fulfill the requirements of Articles 16A(5) and 16B(3) of Law No. 11 of 2008 on Electronic Information and Transactions as amended by Law No. 19 of 2016 as amended by Law No. 1 of 2024 dated January 2, 2024 on the Second Amendment to Law No. 11 of 2008 (collectively, the “EIT Law”). Articles 16A and 16B of the EIT Law essentially stipulate that an Electronic System Organizer (an “ESO”) must provide protection for children who use or access the electronic system. Any failure to do so may result in the ESO to be subject to administrative sanctions.
Please see below the key provisions of the Draft GR.
♦ Children Age Limit
Article 1 Number 1 of the Draft GR defines a Child as someone who is under 18 (eighteen) years old. Despite various laws and regulations that set different age limits for children, the Draft GR explicitly categorizes those who are under 18 (eighteen) years old as children.
♦ Applicability to ESOs
Similar to the provisions of the EIT Law as mentioned above, Article 2(1) of the Draft GR stipulates that ESOs must provide protection for children who use or access the electronic system. In this regard, Article 2(3) of the Draft GR specifies that the ESOs that are subject to the foregoing requirements are ESOs that develop and/or provide online products, services, or features specifically intended to be used or accessed, or that may be used or accessed by children (collectively, the “Product”), whether monetized or not.
In determining the Product that may be used or accessed by children, Article 2(5) of the Draft GR provides the following indicators:
- the terms, conditions, rules, or policies published or drafted in an internal document of the ESOs indicate that Product is intended to be used or accessed by children;
- there is strong evidence that the composition of users who regularly access Product consists of children;
- advertisements related to the Product are aimed at children;
- the design elements of the Product are created or displayed in such a way that they are appealing to children; or
- the Product is substantially similar to or the same as the other Product which composition of users who regularly access it are children.
Notwithstanding the above, Article 2(7) of the Draft GR stipulates that criteria of the ESOs that will be subject to the requirement to provide children protection as mentioned above will be further regulated by the regulation of the MOCD.
♦ Obligations of ESOs
The Draft GR governs certain obligations the ESOs, among others:
- consider the best interests of the children in developing and/or operating the Product;
- prioritize the fulfillment of the children’s rights and the protection of the children over the commercial interests of the ESOs;
- provide information regarding the minimum age limit for children who may use the Product;
- ensure that the Product it develops and/or operates is appropriate for the age of the children who use or access, or who may use or access the Product, while also considering the needs of children that are adjusted to their stages of growth and age range, including children with special needs;
- provide function options that are appropriate to the capacity and age of children who may access the Product; and
- provide tools, services, or features needed by the children that may be easily accessed by the children or by their parents or guardians, to help exercise their rights or to submit reports or complaints regarding issues experienced by the children in relation to the Product.
♦ Personal Data Protection Provisions
In reference to Law No. 27 of 2022 dated October 17, 2022 on Personal Data Protection, the Draft GR also stipulates certain provisions in relation to the personal data protection of the children. This includes the obligation of the ESOs to prepare a Personal Data Protection Impact Assessment for each Product that is accessed or may be accessed by children before such Product is used by the children, at the latest 3 (three) months before the Product may be accessed by the children. The assessment shall also be reviewed and updated at least every 2 (two) years, or whenever the Product is materially updated or modified.
The Draft GR also provides certain other obligations related to personal data protection and data privacy, including:
- protect the privacy and personal data of the children who use or access the Product in accordance with the applicable laws and regulations;
- secure the electronic system and prevent unauthorized disclosure or breaches of security of the personal data;
- process the data collected solely for the purpose of data verification or for providing the age assurance and not for any other purposes, with such data being deleted once the age determination has been fulfilled;
- configure all settings of the Product that are specifically used or accessed by children, or that may be used or accessed by children, to a high level of privacy; and
- appoint an officer or staff to carry out the function of protecting the personal data of children as referred to in the applicable laws and regulations (i.e., a data protection officer).
♦ Sanctions
Violations of certain provisions of the Draft GR may subject the ESOs to administrative sanctions in the form of (i) written warnings, (ii) administrative fines, (iii) temporary suspension, and/or (iv) termination of access. The foregoing administrative sanction is imposed by the MOCD in accordance with the type of violation and the impact of the violation on the children but does not eliminate criminal and/or civil liability.
♦ Transitional Period
Article 41 of the Draft GR stipulates that the ESOs and other parties related to the provision of the Product must comply with the child protection governance provisions based on the Regulation no later than 2 (two) years from the date of promulgation of the Regulation.
Notwithstanding the provisions of the Draft GR, we note that Article 40 of the Draft GR provides that further provisions regarding child protection governance in the provision of the Product will be regulated by the regulation of the MOCD. We will continue to monitor the situation closely and provide timely updates and guidance as new information becomes available.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or M. Fatih Satria Kasmaliputra (mkasmaliputra@aksetlaw.com) for further information.
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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.
Regulatory Update: Minister of Law Issues New Regulation on Verification and Supervision of Corporate Beneficial Ownership
As part of the Indonesian government’s efforts to prevent money laundering and terrorism financing (TPPU/TPPT) and to optimize the accuracy of beneficial ownership data, on 4 February 2025, the Minister of Law issued Minister of Law Regulation No. 2 of 2025 on Verification and Supervision of Corporate Beneficial Ownership (“MOL Reg. 2/2025”). This new regulation revokes the previous Minister of Law and Human Rights Regulation No. 21 of 2019 on Procedures for the Supervision of The Know-Your Beneficial Owner Principle in Corporations.
MOL Reg. 2/2025 is also issued to accommodate several challenges, including the need for a centralized beneficial ownership database, the absence of verification requirements for individual limited liability companies, and the low compliance rate in beneficial ownership reporting.
Below are the key changes introduced under MOL Reg. 2/2025.
♦ Expansion of Corporate Entities Subject to Regulation
MOL Reg. 2/2025 broadens the scope of entities required to report beneficial ownership information. This new regulation now includes civil partnerships and provides further clarification on limited liability companies (Perseroan Terbatas or PT) by categorizing them into capital partnership companies (perseroan persekutuan modal) and individual companies (perseroan perorangan).
♦ Verification of Beneficial Ownership
MOL Reg. No. 2/2025 introduces a risk-based verification process. This verification is conducted to assess risks related to money laundering and terrorism financing and must be performed by corporations, notaries, the Minister of Law, and other relevant authorities. The verification process involves assessing the accuracy of beneficial ownership information against supporting documents. The electronic system will subsequently calculate the consistency and accuracy of the submitted data in comparison with the information provided in the beneficial ownership questionnaire completed by the company.
♦ Administrative Sanctions
While the previous regulation did not specifically prescribe sanctions for non-compliance, under Chapter VII of MOL Reg. 2/2025, a structured system of administrative sanctions has been established. These sanctions may be imposed if a corporation fails to report its beneficial ownership information to the Ministry of Law or if the information submitted is found to be inaccurate. The regulation specifies the types of sanctions and the procedures for their imposition, which include:
- Warning letters;
- Blacklisting; and
- Blocking access to the General Law Administration (Administrasi Hukum Umum or AHU) Online system.
This regulatory update reflects the government’s commitment to enhancing transparency in corporate ownership and aligning Indonesia’s legal framework with international best practices in preventing financial crimes.
AKSET
Please contact Inka Kirana (ikirana@aksetlaw.com) or Natasya C. Ferdev (nferdev@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.
Amendments to 10% PI Framework and Expanding BUMD Participation in Upstream Oil & Gas Business
In 2016, the Minister of Energy and Mineral Resources (the “Minister”) issued Regulation No. 37 of 2016 dated November 25, 2016 on Provisions on Offers of 10% Participating Interests in Oil-and-Gas Working Areas (“Regulation 37/2016”). Regulation 37/2016 established the mechanism for offering the 10% participating interests in cooperation contracts in the upstream oil and gas business (the “Participating Interests”) to region-owned enterprises (Badan Usaha Milik Daerah – a “BUMD”) and outlined the requirements for receiving, managing, and transferring the Participating Interests.
In order to enhance effectiveness and clarity for both regional and national interests, the Minister issued Regulation No. 1 of 2025 dated January 2, 2025 but effective from January 6, 2025 (“Regulation 1/2025”) which revises and supplements certain provisions of Regulation 37/2016. Below is an overview of the key changes introduced in Regulation1/2025.
♦ New Definition of Subsidiary of Region-Owned Entity
Regulation 1/2025 includes the definition of an “Anak Perusahaan BUMD” or a “BUMD Subsidiary.” Article 1(7) of Regulation 37/2016 now defines a BUMD Subsidiary as a company of which shares are partially or entirely owned by a Region-Owned Enterprise established by a regional government, which administrative area includes a field for which the first field development plan has been approved and existing fields in the extended Working Area or the management transfer Working Area with its share participation based on reservoir extension.
♦ Clarification on Eligibility of BUMDs
The eligibility criteria for a BUMD to receive an offer of the Participating Interests have been refined. Article 3 of Regulation 37/2016 now specifies that a BUMD that may be offered the Participating Interests includes a BUMD that is wholly owned by a region and which BUMD’s ownership is not divided into shares.
♦ Composition of Shareholding of BUMD Clarified
Regulation 1/2025 now clarifies that the distribution of the regional shareholding participation must align with the percentage of reservoir coverage in the respective regions and shall considering social and economic factors.
♦ Determination of Reservoir Extension Clarified
Regulation 1/2025 provides more details in the determination of a reservoir extension beyond a region. Such determination is now made after data access, based on certification from an independent institution appointed by the relevant governor and regent/mayor.
♦ Revised Procedures of Offers of Participating Interests
Article 7(2) of Regulation 37/2016 now states that a BUMD Subsidiary appointed by a governor may manage the Participating Interests of the BUMD appointed by the governor already manages the Participating Interests in another oil & gas block. Such BUMD Subsidiary must be 100% owned by the BUMD recipient of the Participating Interests.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or Rayhan Andana Harits (rharits@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 for the Registration, Reporting, and Data Collection of Land and Building Tax Object
On October 18, 2024, the Minister of Finance (the “MOF”) issued Regulation No. 81 of 2024 on Tax Provisions for the Implementation of the Core Tax Administration System (the “Regulation”). The Regulation is an omnibus regulation that consolidates and updates various tax rules to enhance the new Core Tax Administration System. Its objective is to modernize tax administration by ensuring transparency, efficiency, and accountability through advanced IT systems, improved business processes, and comprehensive databases.
This Newsflash discusses provisions relating to the procedures for the registration, reporting, and data collection of the land and building tax object (the “Tax Object”).
Provisions on the Tax Object were previously regulated under MOF Regulation No. 48/PMK.03/2021 on Procedures for the Registration, Reporting, and Data Collection of Land and Building Tax Object (the “Previous Regulation”). The Previous Regulation is revoked and replaced by the Regulation.
We set out the key points under the Regulation relating to the procedures for the registration, reporting, and data collection of the Tax Object.
♦ Registration of Tax Object
Article 71(1) of the Regulation stipulates that every taxpayer is obliged to register their Tax Object to the relevant Directorate General of Tax (“DGT”) no later than 1 (one) month following the fulfillment of subjective requirements. Such subjective requirements are differentiated based on several sectors of the Tax Object.
The following table outlines the milestone of the fulfillment of such subjective requirements:
Taxpayers shall register their Tax Object by way of:
- electronic submission through Taxpayer’s Portal, other websites or application integrated with DGT’s administration, and/or contact center; or
- direct submission or via mail courier services to the Tax Office, Tax Service, Counseling and Consultation Office, or other places determined by the DGT.
Upon receiving the application, the Head of the relevant Tax Office shall conduct administrative review of the submission. If the submission is accepted, the Head of Tax Office shall issue a Certificate of Registration for the Tax Object (Surat Keterangan Terdaftar Objek Pajak Pajak Bumi dan Bangunan).
In the case where a taxpayer does not register the Tax Object, then the Head of Tax Office shall carry out an administrative examination or review towards the respective Tax Object. Based on such administrative review, the Head of Tax Office, as authorized, shall then issue a Certificate of Registration for the Tax Object.
♦ Reporting Obligation by Taxpayers for the Registered Tax Object
The reporting obligation by Taxpayers for the registered Tax Object is regulated under Article 79 of the Regulation. In every tax year, taxpayers shall report their registered Tax Object (the “Report”) by using the Tax Object Notification Letter (Surat Pemberitahuan Objek Pajak) sent by the DGT. In this case, the DGT shall convey the Tax Object Notification Letter electronically on certain dates within the tax year (e.g., March 31st of the tax year for payable land and building tax, for the Tax Object in the forestry sector).
After receiving the Tax Object Notification Letter, the relevant taxpayer must submit the Report to the DGT no later than 30 (thirty) days (“Permissible Period”). If the taxpayer is unable to submit the report within such Permissible Period, the taxpayer is allowed to submit a postponement notification letter for the submission of Tax Object Notification Letter (“Postponement Letter”).
After the Report is submitted, the DGT shall conduct a formal review of the submission. The Tax Office shall then conduct a material review of the submission. If incompliances are still found, then the Tax Office shall request clarification which must be responded to by the relevant taxpayer.
Failure by taxpayer to (i) submit the Report within the Permissible Period and (ii) does not submit a Postponement Letter, the Head of Tax Office shall issue a warning letter. If the relevant taxpayer still fails to submit the report after receiving the warning letter, then the Tax Office shall prepare a risk assessment as a proposal to conduct an examination towards the registered Tax Object of the relevant taxpayer.
♦ Data Collection of the Registered Tax Object by the DGT
The Regulation also provides the authorization for the DGT to collect data on the registered Tax Objects for the purpose of conducting material research and risk assessment, as proposals for examination.
The data collection shall consist of (i) office data collection, is carried out by processing the Tax Object data provided in the Tax Object Notification Letter and/or processing the data and information within the DGT’s administration system, and/or (ii) field data collection, which is carried out by inspecting the physical location of the Tax Object and/or other locations outside the physical location of the Tax Object, based on data of the Tax Object.
AKSET
Please contact Inka Kirana (ikirana@aksetlaw.com), M. Raehan A. Fadila (mfadila@aksetlaw.com), or Justin Amadeus (jamadeus@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.