Updates on Entry of Hand-Carry Goods
We issued our Newsflash regarding the new importing provisions for entry of hand-carry goods as regulated under the Minister of Trade (the “MOT”) Regulation No. 36 of 2023 on Import Policies and Regulations as amended by the MOT Regulation No. 3 of 2024 (collectively, “Regulation 36/2023”). Regulation 36/2023 has been effective since March 10, 2024.
Under Regulation 36/2023, returning passengers entering Indonesia (the “Passengers”) may bring certain goods without any import license subject to certain limitations. Please see our Newsflash for more information on such limitations: New Importing Provisions for Entry of Hand-Carry Goods.
On April 29, 2024, the MOT issued Regulation No. 7 of 2024 on the amendment to Regulation 36/2023, which has been effective since May 6, 2024 (the “Regulation 7/2024”). We set out below the key points of Regulation 7/2024, specifically regarding the entry of hand-carry goods.
♦ Purpose for Import of Goods
Regulation 7/2024 clarifies that imports of goods are now permitted for both commercial and non-commercial purposes. In this case, the commercial objective refers to economic activities related to the following:
- Imported goods transactions carried out by importers with the aim of transferring ownership or use of goods to obtain rewards or compensation; or
- Use of imported goods by importers as raw and/or auxiliary materials to support production processes or business activities.
♦ Import of Hand-Carry Goods under Regulation 7/2024
Before Regulation 7/2024, Regulation 36/2023 stipulated certain restrictions on the entry of non-commercial goods consisting of personal belongings of the Passengers. The restrictions were listed comprehensively in Attachment IV to Regulation 36/2023.
Regulation 7/2024 amends Attachment IV of Regulation 36/2023. Specifically regarding the import of hand-carry goods by the Passengers, now there are no limits that have been set in terms of their import types and amounts, with the exception of dangerous goods and goods that are prohibited from being imported.
In addition, Regulation 7/2024 stipulates that all imports of goods belonging to the Passengers sent via postal operators are permitted to be imported in new and/or used condition unless the goods is categorized as goods related to health, safety, and/or the environment as listed in Attachments I and II of Regulation 7/2024.
♦ Current Restrictions on Import of Hand-Carry Goods
Although Regulation 7/2024 no longer regulates the restrictions on the entry of hand-carry goods, Passengers must still take into account the imposition of import duties as described under the Minister of Finance Regulation No. 203/PMK.04/2017 of 2017 dated December 27, 2017 on Provisions for Export and Import of Goods Carried by Passengers and Transportation Crew (“Regulation 203/2017”).
According to Regulation 203/2017, the Passengers are exempted from the import duty if the value of a Passenger’s hand-carry goods imported for personal use is a maximum of free on board (FOB) USD 500 (five hundred United States Dollars) per person for each arrival.
Apart from being granted import duty exemption, excise exemption is granted for the import of the following goods by the Passengers for personal use:
- Maximum of 200 (two hundred) cigarettes, 25 (twenty-five) cigars, or 100 (one hundred) grams sliced tobacco/other tobacco products; and/or
- Maximum of 1 (one) liter of drink containing ethyl alcohol.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or Ayu Nandini Prameswari (aprameswari@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Updates on Entry of Hand-Carry Goods
New Importing Provisions for Entry of Health and Cosmetic Goods
This Newsflash is a part of our Newsflashes in relation to the new importing provisions as regulated under the Minister of Trade (the “MOT”) Regulation No. 36 of 2023 on Import Policies and Regulations as amended by the MOT Regulation No. 3 of 2024 (collectively, the “New Import Regulation”). The New Import Regulation is effective since March 10, 2024.
Under the New Import Regulation, imports of certain goods is subject to certain limitations. As one of the implementing regulations of the New Import Regulation, the Minister of Industry (the “MOI”) issued MOI Regulation No. 4 of 2024 dated January 30, 2024 on Procedures for Issuing Technical Considerations for Imports of Traditional Medicine, Health Supplements, Cosmetics and Household Health Supplies (“Regulation 4/2024”). We set out below the key points of Regulation 4/2024.
♦ Types of Goods
To support the stability of local health and cosmetic goods industry and increase the use of such local goods, Regulation 4/2024 specifically sets out the limitations on the import of the following goods: (i) traditional medicine; (ii) health supplements; (iii) cosmetics; and (iv) household health supplies, as listed under Annex I of Regulation 4/2024 (such goods collectively, the “Goods”).
♦ Limitation on Imports of Health and Cosmetic Goods
Companies that hold a General Import Identification Number (Angka Pengenal Impor Umum or an “API-U”) are only able to import the Goods after obtaining the Import Approval from the MOT. However, to obtain the Import Approval, the holder of an API-U must first obtain a Technical Consideration issued by the MOI (the “Consideration”).
Based on the type of Goods, the Considerations are categorized into: (i) a Consideration for traditional medicines and health supplements; and (ii) a Consideration for cosmetic and household health supplies. A Consideration for each category can only be published one time within one calendar year for the same Harmonized System Code (the “HS Code”).
To obtain a Consideration, a holder of an API-U must fulfill the commitments for each of the relevant Business Classification Number (Klasifikasi Baku Lapangan Usaha Indonesia or KBLI) and submit the required documents electronically through the Indonesian National Single Window System (“INSWS”) that will be redirected to the MOI’s licensing system.
A Consideration will be issued by the MOI after the verification of the completeness of the required documents within 5 (five) business days.
♦ Amended Consideration
Companies that have obtained a Consideration and an Import Approval may submit an application to obtain the amended version of the Consideration in the case of any changes made related to the import data (e.g., the identity of the holder of the API-U, relevant HS Codes, description of Goods, amount of Goods, loading and destination port, etc.).
However, in the case of an increase in the amount of allocation for import needs, such an increase may only be carried out if: (i) the holder of API-U has realized its imports of at least 75% (seventy-five percent) of the total allocated import needs that have been approved; and (ii) the change in the amount of import allocation for each HS Codes is equal to or greater than the amount of the realized imports for the current year.
The validity period of the amended Consideration shall follow the validity of the original Consideration.
♦ Reporting Obligation
After obtaining the Consideration, the holder of an API-U is required to submit the following documents through the INSWS, subject to the relevant laws and regulations:
- the Import Approval document along with the changes;
- the Import Realization Report; and
- the Distribution Realization Report.
♦ Sanctions
The holder of an API-U may be subject to administrative sanctions if such a holder does not submit the required realization report and/or it violates Regulation 4/2024.
As a note, the administrative sanction is in the form of a written warning, rejection for the request of Consideration for the following year and/or recommendation on the revocation of the issued Import Approval.
♦ Changes on New Import Regulation
On April 16, 2024, the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso announced that the New Import Regulation would be revised. However, the revision of the New Import Regulation is still under the discussion of the relevant government authorities. As such, we will provide an update on this Newsflash if there are any changes made under the revised New Import Regulation.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Adhitya Ramadhan (aramadhan@aksetlaw.com) or Ayu Nandini Prameswari (aprameswari@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
New Importing Provisions for Entry of Health and Cosmetic Goods
Mandatory Technical Considerations for Imports of Iron or Steel, Alloy Steel, and Their Derivatives Products
In order to support the stability of the national steel industry and to improve the quality of domestic steel products that utilize iron or steel, alloy steel and their derivatives products as well as to increase the use of domestic iron or steel, alloy steel and their derivative products as capital goods, raw materials and /or auxiliary materials for industrial purposes, as well as consumer goods, and commodities other than those used as capital goods, raw materials and/or auxiliary materials for industrial purposes, the Minister of Industry (the “MOI”) views that it is necessary to regulate the granting of technical considerations for the imports of the above commodities.
Based on the above, the MO issued MOI Regulation No. 1 of 2024 on Procedures for Issuance of Technical Considerations for Imports of Iron or Steel, Alloy Steel, and their Derivatives Products dated January 8, 2024 (“Regulation 1/2024”). We set out below the key provisions of Regulation 1/2024.
♦ Key Definitions
Key definitions under Regulation 1/2024 are as follows:
1. Iron or Steel is defined as a product from the smelting of carbon iron or steel with a number of further alloying elements and fouling elements, and/or goods produced from such products.
2. Alloy Steel is defined as a product from the smelting of steel which contains one or more alloying elements.
3. Iron or Steel and Alloy Steel Derivatives Products (the “Derivatives Products”) are defined as products resulting from advanced processing of Iron or Steel and Alloy Steels in the basic form of bars or sheets or the result of the assembly or merging process of the products from the advanced processing of Iron or Steel and Alloy Steel in basic form.
4. Technical Considerations for Imports of Iron or Steel, Alloy Steel, and their Derivatives Products (each, a “Technical Consideration”) are defined as a technical consideration letter which is used as a requirement to obtain an approval for imports of Iron or Steel, Alloy Steel, and their Derivatives Products.
5. Supply Center for Raw Materials and/or Auxiliary Materials (Pusat Penyedia Bahan Baku dan/atau Bahan Penolong) for Iron or Steel, Alloy Steel, and their Derivatives Products (“PPBB”), is defined as a business entity that provides Raw Materials and/or Auxiliary Materials to fulfill the needs of Raw Materials and/or Auxiliary Materials for Small Industries and Medium Industries.
♦ General Provisions of Regulation 1/2024
Article 2(1) of Regulation 1/2024 provides that a business party may import Iron or Steel, Alloy Steel, and the Derivatives Products after obtaining an import approval from the ministry that organizes government affairs in the trade sector (i.e., the Ministry of Trade).
Further, Article 3(1) of Regulation 1/2024 stipulates that to obtain an import approval, a business party must obtain a Technical Consideration issued by the MOI. In this regard, Article 3(3) of Regulation 1/2024 stipulates that the MOI shall delegate the authority to issue Technical Considerations and amendments to a Technical Consideration to the Director-General.
In addition, Article 4(1) of Regulation 1/2024 elaborates that the business parties that may import Iron or Steel, Alloy Steel, and their Derivatives Products are as follows:
- Industrial Companies;
- Industrial Service Companies;
- Non-Industrial Companies which own an API-P;
- Non-Industrial Companies which own an API-U; and
- the PPBB.
♦ Requirements to Submit an Application for the Issuance of the Technical Consideration
Article 4(2) of Regulation 1/2024 stipulates that in order to be able to submit an application for the issuance of the Technical Consideration the business actor(s) must fulfill the following requirements:
Please note that Article 5 of Regulation 1/2024 stipulates that an application for the issuance of the Technical Consideration shall be submitted electronically to the Director-General through the SINSW which will be redirected to the SIINas.
Regulation 1/2024 also provides the required documents and the detailed procedures for each business part for the application of a Technical Consideration. Please contact us through the below emails if you wish us to provide you with our advice in relation to the required documents and the detailed procedures for the application of a Technical Consideration.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Adhitya Ramadhan (aramadhan@aksetlaw.com), and M. Raehan A. Fadila (mfadila@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
PUBLIC COMPANIES’ REPORTING OBLIGATION ON OWNERSHIP OF OR CHANGES IN SHARES OWNERSHIP AND REPORTS ON SHARE-PLEDGES
On February 28, 2024, the Financial Services Authority (Otoritas Jasa Keuangan, “OJK”) issued and enacted Regulation No. 4 of 2024 regarding the Reports on Ownership of or Any Changes in Shares Ownership in Public Companies and Reports on Share-Pledging Activities in Public Companies (“POJK 4/2024”).
Based on the consideration of POJK 4/2024, OJK was aware of the needs to adjust the reporting mechanism of the shares ownership in public companies or any changes to such ownership to accord the international standards or the result of comparative studies with other countries. In addition to this, given that shareholders in public companies may likely conduct share-pledging activities, it is essential to set out a specific provision to require public companies to report such share-pledging activities.
In principle, POJK 4/2024 is intended to increase the quality of information disclosure by certain shareholders and the quality of supervision, which includes the procurement of an electronic-based reporting system.
POJK 4/2024 will come into effect within 6 (six) months as of its enactment (i.e., August 28, 2024). Upon its coming into effect, OJK Regulation No. 11/POJK.04/2017 dated March 14, 2017 on Reports of Ownership of or Any Changes to the Ownership of Shares in Public Companies is revoked and declared invalid.
We set out below key provisions of POJK 4/2024.
-
- Reporting Obligation of Ownership of or Any Changes in Ownership of Public Companies
Members of the Board of Directors (“BOD”) or members of the Board of Commissioners (“BOC”) of a public company who own direct or indirect shares with voting rights, must submit the report of ownership of voting rights over shares of the public company and any changes to such ownership (each report, an “Ownership Report”) to OJK.In addition to the members of the BOD and BOC, the parties with any of the following criteria is required to submit an Ownership Report to OJK:- any party who owns share with voting rights of at least 5% (five percent). Please note that if there is any decrease to the ownership percentage of shares with voting rights so that it becomes less than 5% (five percent), such a party is required to notify the change of ownership of voting rights over shares to OJK through the submission of an Ownership Report[1]; and
- any party who is a controller of a public company, which refers to any party who owns more than or less than 5% (five percent) of shares with voting rights.
The submission of an Ownership Report to OJK must be conducted no later than 5 (five) days as of (i) the occurrence of voting rights over shares, or (ii) any changes to the ownership of voting rights over shares of a public company. Please also note that the information on an Ownership Report shall be made available to the public.
If the changes to the ownership of voting rights over shares occur due to inheritance, then the party who receives the inheritance of shares must notify the relevant changes to OJK through the submission of an Ownership Report.
POJK 4/2024 also provides an exemption to the reporting obligation, provided that the change of ownership of voting rights over shares occurs due to the following reasons:
- A capital increase of a public company, either with or without a pre-emptive right;
- Any corporate action of a public company without involving any transactions by the shareholders.
- Content of the Ownership Report
An Ownership Report shall encompass at least the following information:- name, address, and citizenship;
- name of the public company’s shares;
- number of shares and shares ownership percentage with voting rights over the public company’s shares before and after the transaction;
- type of the transactions being carried out;
- number of shares purchased, sold, or transferred;
- description of shares classification, which refers to the information on whether the shares are classified as ordinary shares or shares with multiple voting rights;
- if the change of ownership is due to a payment transaction, to include the information on the sale or purchase price of each share;
- date of transaction;
- purpose of transaction;
- shares ownership status, both directly and indirectly;
- if there is any indirect share ownership, to include the information on shareholders who are listed in the list of shareholders of public company for the interest of the beneficial owners;
- if an Ownership Report is submitted through a proxy, to include the information on the name of the shareholder who grants the authorization to such proxy;
- if an Ownership Report is made by a certain organized group, to include the information on the details of members of such organized group.
In addition to the above items of information, if the changes of ownership are undertaken by the controlling shareholder of a public company, an Ownership Report shall include an explanation on whether such a controlling shareholder wishes to maintain its control towards the relevant public company.
- Reporting Obligation of Share-Pledging Activities in Public Companies
Shareholders of a public company who pledge the public company’s shares of at least 5 (five) percent) of the voting rights is obliged to submit reports on such share-pledging activities (each report, a “Share-Pledging Report”) to OJK. The five percent is calculated from 1 (one) share-pledging activity or the accumulation of several share-pledging activities. The obligation to submit a Share-Pledging Report shall apply to any change to the percentage unit of the number of shares of the public company during the occurrence of the share-pledging activities.The submission of a Share-Pledging Report to OJK must be conducted no later than 5 (five) days as of the signing of the share-pledging agreement. - Content of the Share-Pledging ReportA Share-Pledging Report shall encompass at least the following information:
- name, address, and citizenship;
- name of the public company’s pledged shares;
- number of shares and ownership percentage of the pledged shares;
- amount of loan encumbered with the pledge of shares;
- if there is any change to the number of the pledged shares, to include the information on the type of transaction or event that results in such a change,
- date and period of agreement;
- if there is any affiliate relationship, to include the information on the nature of the affiliate relationship between the parties.
- Submission of the Ownership Report and the Share-Pledging Report through Electronic System
POJK 4/2024 also includes the government’s intent to establish an electronic system to support the submission of the reporting obligation set out in POJK 4/2024. Upon the availability of such electronic system, an Ownership Report and a Share-Pledging Report must be submitted electronically to OJK no later than 3 days as of (i) the occurrence of ownership of voting rights over shares of a public company or any change to such ownership, or (ii) the signing of the share-pledging agreement. If the foregoing electronic system is not available, an Ownership Report and a Share-Pledging Report shall be submitted to OJK through printed or electronic documents. -
Administrative Sanctions
Failure to submit an Ownership Report or a Share-Pledging Report may result in the imposition of administrative sanctions as set out in POJK 4/2024. Whilst administrative sanctions will be imposed on the party who expressly violates POJK 4/2024, it is also provided that members of a BOD and a BOC of a public company who cause the violation shall also be subject to the imposition of administrative sanctions by OJK.The applicable administrative sanctions under POJK 4/2024 are as follows:
- written reprimand;
- fine which constitutes an obligation to pay a certain amount of money;
- restriction of business activities;
- suspension of business activities;
- revocation of business activities;
- cancellation of approval; and/or
- cancellation of registration.
Please be informed that the above administrative sanctions are not in sequential order. It is fully the discretion of OJK to determine the type of administrative sanctions to be imposed on the relevant violating party(ies). Additionally, the fine may be imposed individually or jointly with the imposition of other administrative sanctions as mentioned above.
In addition to the administrative sanctions, OJK may implement certain actions to any party who violates the provisions under POJK 4/2024. The imposition of administrative sanctions and the implementation of such certain actions may be made publicly available by the OJK.
- Reporting Obligation of Ownership of or Any Changes in Ownership of Public Companies
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Adhitya Ramadhan (aramadhan@aksetlaw.com), or Almira Siti Nadiva Zulfandiari (azulfandiari@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.
Revisions on the New Importing Provisions for Entry of Hand-Carry Goods
Previously, we issued our Newsflash regarding the new importing provisions for entry of hand-carry goods as regulated under the Minister of Trade (the “MOT”) Regulation No. 36 of 2023 on Import Policies and Regulations as amended by the MOT Regulation No. 3 of 2024 (collectively, the “Import Regulation”). The Import Regulation has been effective since March 10, 2024.
Under the New Import Regulation, returning passengers entering Indonesia (the “Passengers”) may bring certain goods without any import license subject to certain limitations. Please see our Newsflash for more information on such limitations: New Importing Provisions for Entry of Hand-Carry Goods.
However, on April 16, 2024, the Secretary of the Coordinating Ministry for Economic Affairs, Susiwijono Moegiarso, announced that the Import Regulation would be revised. One of the revisions would include the removal of the limitations on the import of hand-carry goods by the Passengers. Such limitations will then only be regulated under the a Minister of Finance regulation.
Since the revision of the Import Regulation is still under the discussion of the relevant government authorities, we will provide an update on this matter once the revision is final and made public.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or Ayu Nandini Prameswari (aprameswari@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Revisions on the New Importing Provisions for Entry of Hand-Carry Goods
Government Determines 22 Commodities as Strategic Mineral
On April 1, 2024, the Minister of Energy and Mineral Resources (“MEMR”) issued the MEMR Decree No. 69.K/MB.01/MEM.B/2024 on the Stipulation of Types of Commodities Classified as Strategic Minerals (“Decree 69/2024”).
The enactment of Decree 69/2024 is intended to enhance the nation’s domestic and global competitiveness by promoting local mineral processing for strategic industrial development and ultimately increasing the state’s revenue and boosting the national economy.
Introduction of the new strategic mineral classifications will also serve as a reference in relation to the governance (tata kelola) of mineral commodities to prioritize increasing the domestic added value through mineral downstream.
♦ Criteria of Strategic Mineral
Decree 69/2024 stipulates 5 (five) criteria for the strategic minerals are, as follows:
- Minerals for raw materials of strategic industries (e.g., pharmaceutical and cosmetic, healthcare (health industry), transportation (electric vehicle industry), power generation (solar panel industry), capital goods, components, information communications technology industry (ICT), non-ferrous metal and basic metal (defense industry), and so forth);
- minerals that have potential to control the global market through domination of natural resources and/or reserves;
- Minerals that contribute significant amounts of state revenue within the mineral mining sector;
- Minerals that make a dominant contribution to national foreign exchange reserves; and/or
- Minerals that are massively used in strategic industries.
♦ Governance of Mineral Commodities
Stipulation of strategic minerals will be used by relevant government institutions for determining the governance of strategic mineral commodities, among others:
- in making regulations and policies for the governance and commerce of manufacturing industry of minerals and associated minerals, including the scraps or waste of processing and refinery industry;
Please note that the above list of strategic minerals may be reviewed annually or at any time deemed necessary.
AKSET
Please contact Arfidea D. Saraswati (asaraswati@aksetlaw.com), Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or Radiansyah Suryomahendra Yamin (ryamin@aksetlaw.com).
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Government Determines 22 Commodities as Strategic Mineral
Constitutional Court Decision on Articles Relating to Defamation and False News
On March 21, 2024, the Constitutional Court (in Indonesian, Mahkamah Konstitusi or “MK”) rendered its Decision No. 78/PUU-XXI/2023 (the “Decision”) in relation to the judicial review on Articles 14 and 15 of Law No. 1 of 1946 dated February 26, 1946, on Criminal Law Code (“Law 1/1946”), Article 310(1) of the Indonesian Criminal Code (the “ICC”), and Articles 27(3) and 45(3) of Law No. 11 of 2008 dated April 21, 2008 on Electronic Information and Transactions as amended by Law No. 19 of 2016 dated November 25, 2016 (the “EIT Law”) (collectively, the “Reviewed Articles”).
The judicial review was petitioned by Haris Azhar, Fatiah Maulidiyanty, Yayasan Lembaga Bantuan Hukum Indonesia, and Aliansi Jurnalis Independen (collectively, the “Petitioners”). The Petitioners argued that the Reviewed Articles, which mainly deal with defamation and false news towards an individual, are contrary to the principles of a democratic state. The Petitioners argued that the Reviewed Articles had been utilized to silence, restrict, and criminalize an individual’s criticism, opinion, and beliefs in relation to government policies, the advancement of human rights, as well as the eradication of corruption, collusion, and nepotism. Also, the Reviewed Articles had been commonly categorized as catchall articles (in Indonesian, pasal karet) that did not have any clear measurement in its interpretation and may lead to legal uncertainty.
Further, the Petitioners argued that the Reviewed Articles were contrary to Articles 1(2), 27(3), 28, 28C(2), 28D(1), 28E(2), 28E(3), 28F, 28G(1), 28I(1), 28I(2), 28I(4), 28I(5), 28J(1), 28J(2), and Article I of the Transitional Provisions of the 1945 Constitution of the Republic of Indonesia (collectively, the “Constitution”).
The following table highlights the substance of the Reviewed Articles and the contents of the Decision:
The issuance of the Decision to some extent may be a fresh air or advancement within the Indonesian democracy, where it provides further protection towards an individual’s rights that are ensured in the Constitution. The nullification of Articles 14 and 15 of Law 1/1946 and the interpretation made to Article 310(1) of the ICC may reduce any attempt to silence, restrict, and criminalize an individual’s criticism, opinion, and beliefs.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), M. Fatih Satria Kasmaliputra (mkasmaliputra@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.
New Importing Provisions for Entry of Hand-Carry Goods
To strengthen the effectiveness of import controls, the Ministry of Trade saw the need to readjust the policies and procedures on import activities. As such, on December 11, 2023, the Minister of Trade (the “MOT”) issued Regulation No. 36 of 2023 on Import Policies and Regulations (“Regulation 36/2023”). However, to further optimize the implementation of imports of certain goods, the MOT issued Regulation No. 3 of 2024 on the Amendment to Regulation 36/2023 (the “Amendment”). Regulation 36/2023 (as amended by the Amendment) became effective since March 10, 2024.
The Amendment replaces the lists of goods that are subject to certain import requirements previously set out in the Attachments of Regulation 36/2023.
In this Newsflash, we will specifically discuss the import limitations for hand-carry goods of passengers returning to Indonesia.
♦ Limitations on Imports via Hand-Carry Goods
According to Regulation 36/2023, returning passengers entering Indonesia (the “Passengers”) may bring certain goods without any import license subject to certain limitations.
As of March 10, 2024, the limitation on imports of non-commercial goods that comprise hand-carry goods belonging to Passengers is regulated under Attachment IV to the Amendment. The following table highlights several of the hand-carry goods imported to Indonesia by the Passengers that are subject to limitations:
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Adhitya Ramadhan (aramadhan@aksetlaw.com) or Ayu Nandini Prameswari (aprameswari@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
New Importing Provisions for Entry of Hand-Carry Goods
Religious Holiday Allowance Payment in 2024
On March 15, 2024, the Minister of Manpower issued Circular Letter No. M/2/HK.04/III/2024 regarding Implementation of Religious Holiday Allowance for Workers in Companies (the “Circular Letter”). The issuance of the Circular Letter revolves on the importance of providing for the needs of the workers and their families during the upcoming religious holiday of Idul Fitri. The obligation to pay the Religious Holiday Allowance (in Indonesian, Tunjangan Hari Raya or the “THR”) is regulated under Government Regulation No. 36 of 2021 on Wages (“GR 36/2021”), and Minister of Manpower Regulation No. 6 of 2016 on THR for Workers in Companies (“MOMR 6/2016”).
In this Newsflash, we set out several key points regarding the implementation of the THR in 2024 and the Government’s policies to ensure the payment of the THR is carried out lawfully.
♦ Implementation of THR Policy in 2024
According to the Circular Letter, every employer must pay the THR to their workers. The THR must be paid in full and may not be paid in installments. Further, the THR must be paid at the latest of 7 (seven) days prior to the religious holiday and it shall be given to the following:
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- Workers who have been working for 1 (one) month without any interruption or more; and
- Workers who are employed under an indefinite term employment agreement (in Indonesian, Perjanjian Kerja Waktu Tidak Tertentu) or a fixed term employment agreement (in Indonesian, Perjanjian Kerja Waktu Tertentu).
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The amount of the THR is given as follows:
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- For workers with a working period of 12 (twelve) months consecutively or more, shall be given 1 (one) month of salary.
- For workers with a working period of 1 (month) consecutively, but less than 12 (twelve) months, shall be given proportionately based on the following calculation:
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In the event the workers whose works are based on a freelance agreement, 1 (one) month of salary shall be calculated as follows:
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- Workers with a working period of 12 (twelve) months or more, 1 (one) month of salary shall be calculated based on the average salary of the last 12 (twelve) months before the religious holiday.
- Workers with a working period less than 12 (twelve) months, 1 (one) month of salary shall be calculated based on the average wage obtained each month during the working period.
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For workers whose salary is set based on the unit of output, the Circular Letter provides that the 1 (one) month salary shall be calculated based on the average salary of the last 12 (twelve) months before the religious holiday. For companies that set the amount of the THR greater than the amount of the minimum THR, then the THR shall be paid to the workers based on the employment agreement, company regulation, collective work agreement, or common practice.
To ensure the payment of the THR is carried out lawfully, the Government encourages companies to pay the THR in accordance with applicable laws and regulations before the due date. To anticipate complaints in the payment of the THR, each provincial and regent/city area is expected to establish a Command Post (Posko Satgas) for consultations services and law enforcement of the THR which is integrated through https://poskothr.kemnaker.go.id.
♦ Administrative Sanctions
GR 36/2021 and MOMR 6/2016 provide administrative sanctions that may be imposed on employers if they fail to comply with the THR payment.
An employer that is late in paying the THR payment to their workers may be imposed a monetary fine in the amount of 5% (five percent) of the total THR that must be paid from the due date. Note that the imposition of such a fine does not eliminate the obligation of the employers to pay the THR.
Moreover, an employer that fails to pay the THR may be subject to the following administrative sanctions under GR 36/2021:
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- Written reprimand;
- Restriction of business activities;
- Temporary suspension of part or all the production tools; and
- Suspension of business activities.
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AKSET
Please contact Johannes C. Sahetapy-Engel [jsahetapyengel@aksetlaw.com] or Thomas P. Wijaya [twijaya@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.
Religious Holiday Allowance Payment in 2024
Regulation on Import of Non-New Lithium Batteries and Non-Hazardous Waste
On December 11, 2023, the Minister of Trade (the “MOT”) issued Regulation No. 36 of 2023 on Import Policies and Arrangements which Regulation was supposed to be effective on March 10, 2024 (“Regulation 36/2023”). However, on March 5, 2024, the MOT issued Regulation No. 3 of 2024 on the Amendment of Regulation 36/2023 (“Regulation 3/2024”). The amendments under Regulation 3/2024 do not change the effective date of Regulation 36/2023, i.e., March 10, 2024.
Regulation 3/2024 is issued to optimize the implementation of the import of certain goods under Regulation 36/2023. Regulation 3/2024 amends eight articles, adds four articles of Regulation 36/2023, and amends and restates Appendices I – VII of Regulation 36/2023 entirely.
Although Regulation 36/2023, as amended by Regulation 3/2024, regulates provisions for a variety of imported goods, this Newsflash focuses on the import provisions of Non-new Lithium Batteries and Non-Hazardous and Toxic Waste as Industrial Raw Materials (the “Non-hazardous Waste”).
♦ Import of Non-New Lithium Batteries
The allowance to import the non-new lithium batteries is made to support the acceleration of the battery electric vehicle (“BEV”) industry development as the non-new lithium batteries may only be imported by a manufacturer in the lithium battery and/or metal material goods recovery industry in the relation to the BEV development, e.g., non-new lithium batteries used as raw material in the lithium battery industry.
The types of non-new lithium batteries that may be imported are (i) non-new secondary lithium batteries in intact condition that may not be used as intended due to certain reasons, and (ii) remains and scrap generated during the production of lithium batteries.
We note that there are no substantial differences between Point V of Appendix II regarding the requirements for the import of non-new lithium batteries, including its scraps, under Regulation 3/2024 and previously regulated under Regulation 36/2023.
The non-new lithium batteries may only be imported by a company that holds a producer importer license in the form of a Producer Importer Identification Number (in Indonesian, Angka Pengenal Importir Produsen or an “API-P”). The API-P holder shall obtain a valid (i) environmental license or related, and (ii) Industrial Business License or related license, from the authorized institutions.
The issuance of the producer importer business license is made based on the result of the technical coordination meeting to ensure the capability of a company in managing the imported non-new lithium battery. The government institutions that organize and attend the technical coordination meeting will depend on the locations of the delivery of the imported goods in Indonesia, such as in a bonded zone, special economic zone, or any other area.
As an example, for the import of lithium batteries to a Free Trade Zone and Free Port (in Indonesian, Kawasan Perdagangan Bebas dan Pelabuhan Bebas or a “KPBPB”), the meeting shall be organized by the Head of KPBPB Authority Management and attended by the respective ministers responsible for administering governmental affairs in the field of trade, industry, investment, and environment and forestry.
♦ Import of Non-Hazardous and Toxic Waste as Industrial Raw Materials
Similar to the provisions for the import of non-new lithium batteries above, there are no substantial differences between Point VI of Appendix II regarding the requirements for the import of Non-hazardous Waste, including the scraps of its relevant groups (e.g., paper, metal, rubber, textile, and glass) under Regulation 3/2024 and previously regulated under Regulation 36/2023.
As a reference, Appendix II of Regulation 3/2024 stipulates that Non-hazardous Waste is the residue of a business/activity in the form of scrap or residues that are not classified or categorized as hazardous and toxic waste.
The import approval for Non-hazardous Waste is subject to the requirement in commodity balance. If the commodity balance has yet to be determined, the requirement for an import approval by the API-P holder are (i) documents proof as a registered exporter, (ii) a statement letter from the originating country of the exporter, (iii) a statement letter from the importer, (iv) a recommendation/verification result report from the Ministry of Environment and Forestry, and (v) a recommendation/master list/verification result report from the Ministry of Industry.
In addition, the criteria of Non-hazardous Waste that may be imported are (i) it does not originate from landfill activities, (ii) it is not garbage and not mixed with garbage, (iii) it is not contaminated with hazardous waste, and (iv) it is homogeneous.
Further, the import of Non-hazardous Waste shall only originate from exporters registered in their respective originating country and shall only be imported through certain ports, among others, Tanjung Priok Port in Jakarta, Tanjung Emas Port in Semarang, and Tanjung Perak Port in Surabaya.
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Radiansyah S. Yamin (ryamin@aksetlaw.com), Andi Manggoana Wira Tenri (atenri@aksetlaw.com), or M. Fatih Satria Kasmaliputra (mkasmaliputra@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.