Health Omnibus Law Series – Simplification of Registration and Practice License for Medical and Health Care Personnels
This Newsflash is a part of our Health Omnibus Law, i.e., Law No. 17 of 2023 dated August 8, 2023 on Health (the “Health Law”). As noted in our previous Newsflashes, the Health Law is issued by way of the omnibus method and revokes several laws in the health sector, including Law No. 36 of 2009 dated October 13, 2009 on Health.
The Health Law governs a wide range of topics in the health sector. This Newsflash focuses on key provisions relating to the simplification of registration and practice licenses for medical and health care personnel.
♦ Elaboration on Medical Personnel and Health Care Personnel
Prior to the enactment of the Health Law and the issuance of the Constitutional Court Decision No. 82/PUU-XIII/2015 dated December 14, 2016 (the “Decision”), the terms “medical personnel” and “health care personnel” could be used interchangeably since the previous regulatory regime did not specifically define the term “medical personnel” and before the issuance of the Decision, medical personnel were categorized under health care personnel.
As a background, under the General Elucidation of Law No. 29 of 2004 dated October 6, 2005 on Medical Practice as partially revoked by Law No. 36 of 2014 dated October 17, 2014 on Health Care Personnel (collectively, “Law 29/2004”), it could be interpreted that medical personnel consisted of doctors and dentists since they were personnel that were authorized to take medical actions on patients based on their relevant competence. Meanwhile, referring to Article 11(1) of Law No. 36 of 2014 dated October 17, 2014 on Health Care Personnel (“Law 36/2014”) before the issuance of the Decision, health care personnel consisted of medical personnel, clinical psychologists, nurses, midwives, pharmacists, public health workers, environmental health workers, nutritionists, physical therapists, medical technicians, biomedical engineering personnels, traditional health workers, and others. Therefore, this caused the public to interchangeably use those two terms.
After the issuance of the Decision, medical personnel were no longer included under health care personnel. However, the then-regulation did not provide a clear definition of the term “medical personnel”.
Now, with the enactment of the Health Law, these two terms (i.e., medical personnel and health care personnel) are now clearly distinguished and defined. Under the Health Law, medical personnel are persons who devote themselves to the health sector and possess a professional attitude, knowledge, and skills through education in the medical or dentistry profession which requires the authorization to conduct health attempts. Meanwhile, the definition of health care personnel is nearly identical, but their professional attitude, knowledge, and skills are obtained through a higher education (pendidikan tinggi), not through education in the medical or dentistry profession. Furthermore, Articles 198 and 199(1) of the Health Law elaborate that the term “medical personnel” covers doctors and dentists, including the specialists and subspecialists; while the term “health care personnel” covers the same types of personnel described under Law 36/2014 following the issuance of the Decision.
♦ Practice Licenses for Medical Personnel and Health Care Personnel
To be able to practice in the health services sector, medical and health care personnel are required to obtain a registration certificate (Surat Tanda Registrasi or an “STR”) and a practice license (Surat Izin Praktik or an “SIP”). Under the previous regime (i.e., Law 29/2004 and Law 36/2014), medical and health care personnels had to fulfill the following requirements to obtain an STR:
-
- Possession of a medical or dentistry degree (for medical personnel) or a degree in health education (for health care personnel);
- a statement letter to state that the person had taken the profession’s oath;
- a certificate stating the person has sound mental and physical health;
- a competency or professional certificate; and
- a statement of compliance with the provisions of professional ethics.
The STR was issued by the relevant health council and was valid for five years.
In addition to the STR, the previous regime also stipulated that to obtain an SIP, medical and health care personnels had to satisfy the following conditions:
-
- Possession of a valid STR;
- a place of practice; and
- a recommendation from the relevant professional organization.
An SIP was issued by the health officials of the regency/city where the practice was held and would be valid subject to the validity of the STR and whether the place of practice would still be in accordance with the SIP. Furthermore, Law 29/2004 limited medical personnel to conduct practice in a maximum of only three places based on its SIP.
With the enactment of the Health Law, the requirements for obtaining an STR and an SIP are simplified. Articles 260(3) and (4) of the Health Law regulate that the prerequisites for obtaining an STR are at least the following: (i) possession of a degree in health education and/or professional certificate; and (ii) a competency certificate. As such, the Health Law removes the prerequisite for an STR to obtain a statement letter providing a person has taken the profession’s oath and a certificate stating a person had sound mental and physical health.
As for obtaining an SIP, according to Article 264(1) of the Health Law, medical and health care personnel now must satisfy the following conditions: (i) owns the STR; and (ii) owns a place of practice. Therefore, removing the need to obtain a recommendation letter from the relevant professional organization.
Besides the simplification in obtaining an STR and an SIP, other notable changes introduced by the Health Law in relation to the STR and the SIP are: (i) an STR now does not have an expiry date, its validity shall end if the related personnel passes away, it is inactivated by the health council, or revoked based on a final and binding court decision; (ii) an SIP is now valid for five years; and (iii) the Health Law does not regulate a provision that limits a maximum of three places for a medical personnel’s place of practice based on its SIP.
Since the Health Law stipulates that further provisions of STR and SIP will be further regulated in a Government Regulation, we will monitor the development and will issue further updates as relevant.
August 30, 2023
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.
Health Omnibus Law Series – Data Privacy in the Health Sector
This Newsflash is a part of our Health Omnibus Law Newsflash series with respect to the issuance of Law No. 17 of 2023 dated August 8, 2023 on Health (the “Health Law”). The Health Law governs a wide range of topics in the health sector including the personal data protection in the health sector as well as to harmonize the aspects of personal data protection in the health industry to be in line with the applicable data protection laws and regulations, particularly Law No. 27 of 2022 dated October 17, 2022 on Personal Data Protection (the “PDP Law”). Please refer to our previous Newsflash on the PDP Law at the following link: AKSET Newsflash - PDP Law.
As previously noted, the Health Law is issued using the omnibus method. The Health Law revokes several laws and regulations in the health sector, including Law No. 36 of 2009 dated October 13, 2009 on Health (the “Previous Health Law”). Under the Previous Health Law, provisions relating to data privacy and/or personal data protection were inadequate and were still found sporadically in several implementing regulations under the Previous Health Law, including the Minister of Health Regulation No. 24 of 2022 dated August 31, 2022 on Medical Records. Although the Health Law revokes the Previous Health Law, all implementing regulations of the Previous Health Law remain valid for so long they do not contradict the Health Law.
We highlight the key data privacy related provisions under the Health Law, as follows.
♦ Personal Health Data and Information
- Obligation for Medical Personnel, Health Personnel, and Health Service Facilities to Maintain Confidentiality of Patients’ Personal Health Data and Information
Each Medical Personnel or Tenaga Medis (i.e., doctors and dentists) and Health Personnel or Tenaga Kesehatan (e.g., nurses) must maintain confidentiality of patients’ personal health in providing medical services to individuals. Information on patients’ personal health that shall be kept confidential includes history, condition and treatment, medication for one’s physical and psychological health, as well as the patients’ personal data. Such obligation also applies to Health Service Facilities or Fasilitas Pelayanan Kesehatan.
- Acknowledgement of Patients’ Rights to Confidentiality of Personal Health Data and Information and to Obtain Personal Health Data and Information
Patients are entitled to, among others, the right to obtain confidentiality of personal health data dan information. Further, a patient is entitled to request their personal health, including actions and treatments that a patient has received or will receive from Medical Personnel and/or Health Personnel.
However, the confidentiality above is not applicable in certain conditions such as (i) fulfillment of requests by law enforcers for law enforcement, (ii) management of extraordinary events or kejadian luar biasa, outbreaks, or disasters, (iii) limited educational and research interests, (iv) efforts to protect against threats to the safety of others, individually or to the public, (v) health maintenance, treatment, healing, and patient care interests, (vi) the patient’s own request, (vii) administrative, insurance payments, or health financing security interests, and/or (viii) other interests as regulated in the applicable laws and regulations.
♦ Medical Records
- Obligation for Medical Personnel, Health Personnel, and Health Service Facilities to Maintain Confidentiality of Medical Records
In providing medical services to individuals, each Medical Personnel and Health Personnel shall maintain a medical record prepared using an electronic system. A medical record is defined as a document that contains the patients’ identity data, observation, treatment, action, and other services provided to the patients. Such medical records shall be maintained and kept confidential by the Medical Personnel, Health Personnel, and management of Health Service Facilities.
- Acknowledgement of Patients’ Rights to Access Medical Records
Although the medical records are owned by the Health Service Facility, a patient may access information contained in their medical records. The Health Service Facility has the obligation to maintain the security, integrity, confidentiality, and availability of the data contained in the medical records.
- Management of National Health Data
In the context of the management of national health data, the Minister of Health (the “MOH”) is responsible for the management of the medical records. Such management of medical records includes formulation of policies, collection, processing, storage, security, data transfer, and monitoring.
- Operation of Health Information System
To carry out effective and efficient health efforts, the Health Law governs the operation of a Health Information System, which is a system that integrates multiple stages of processing, reporting, and use of information to increase effectiveness and efficiency in health management and directing decision making for health development. The operators of such Health Information System may be the Central Government, a Regional Government, a Health Service Facility, and the public, both individuals and groups (any one of them, an “Operator”).
- Obligation of Operators in Processing of Health Data and Information
An Operator shall ensure the reliability of the Health Information System which covers (i) availability, (ii) security, (iii) maintenance, and (iv) integration. Further, an Operator shall carry out the processing of health data and information in accordance with the applicable laws and regulations which includes (i) planning, (ii) collection, (iii) storage, (iv) inspection, (v) transfer, (vi) utilization, and (vii) destruction.
In carrying out the processing of health data and information, an Operator shall ensure the protection of health data and information of each individual. The Health Law also emphasizes that the processing of health data and information that uses individuals’ health data is subject to consent from the data owners and/or fulfill other requirements as the basis of personal data processing in accordance with laws and regulations on personal data protection.
- Rights of Data Owners in Processing of Health Data and Information
In relation to the data processing by an Operator, the data owners are entitled to, as follows: (i) obtain information regarding the purpose of collecting the individual health data, (ii) access and make changes to the data and information through the Operator, (iii) request the Operator to send the data to another Operator, (iv) request the Operator to delete incorrect data based on the data owner’s consent, and (v) obtain other appropriate personal data subject rights in accordance with laws and regulations on personal data protection.
- Location for Processing of Health Data and Information
An Operator shall carry out the processing of health data and information within Indonesia. Such processing of health data and information includes (i) acquisition and collection, (ii) management and analysis, (iii) storage, (iv) repairs and updates, (v) appearance, announcement, transfer, distribution, or disclosure, and/or (vi) deletion or destruction.
Notwithstanding the above, the Health Law provides that data processing may be carried out outside the territory of Indonesia (in the form of transfer and storage) in accordance with laws and regulations regarding electronic information and transactions, electronic system operation, and personal data protection. Specifically for cross-border data transfers, such data transfers shall be for a specific and limited purpose with a permit from the President.
We note that the Health Law expressly stipulates that provisions relating to medical records and processing of health data and information are to be further governed by a Government Regulation. As a reference, the same also applies to the majority of the provisions stipulated under the Health Law, which will be further governed by Presidential Regulations, Government Regulations, and Minister of Health Regulations.
Considering the current objections from medical society with respect to certain provisions under the Health Law, kindly anticipate that there is a possibility for the Health Law to be challenged by the medical society or other parties of interest through the Constitutional Court. We will monitor the development and will issue further updates as relevant.
August 24, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Clara Anastasia So (canastasia@aksetlaw.com), or M. Fatih Satria Kasmaliputra (mkasmaliputra@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Health Omnibus Law Series – Data Privacy in the Health Sector
Health Omnibus Law Series – Occupational Health in Workplace
This Newsflash is part of our Health Omnibus Law Newsflash series with respect to the issuance of Law No. 17 of 2023 dated August 8, 2023 on Health (the “Health Law”). As noted in our previous Newsflash, the Health Law is issued using an omnibus method, revoking several laws and regulations in the health sector, including Law No. 36 of 2009 dated October 13, 2009 on Health (the “Previous Health Law”).
The Health Law governs a wide range of topics in the health sector. This Newsflash focuses on key provisions relating to occupational health in workplace, as follows.
♦ Obligation for All Parties to Participate in Health Security Program
The Health Law stipulates the rights and obligations in relation to the health sector that shall be complied with by all parties (i.e., individuals and corporations). Among others, the Health Law requires that all parties to participate in the health security program in the national security system (i.e., the Health Social Security administered by Badan Penyelenggara Jaminan Sosial Kesehatan) in accordance with the applicable laws and regulations.
We note that the above obligation is in line with the provisions of Law No. 24 of 2011 dated November 25, 2011 on Social Security Administration Agencies as amended by Law No. 6 of 2023 dated March 31, 2023 on Stipulation of Government Regulation No. 2 of 2022 on Job Creation into Law.
♦ Obligation for Employers to Maintain Occupational Health in Workplace
In essence, the responsibility to maintain occupational health falls on the Central Government, Regional Governments, employers, and administrators or managers of workplaces. Such occupational health efforts (or in Indonesian, upaya kesehatan kerja) shall be carried out in conjunction with the occupational health and safety system for the purpose of improving knowledge, awareness, ability of live a health life and prevent sickness caused by work and work accidents, as well as health problems and bad effects caused by work.
Occupational health efforts shall be carried out in workplaces, both the formal and informal sectors, as well as the Health Service Facilities in accordance with occupational health standards. Further, employers and administrators or managers of workplaces shall comply with the occupational health standards and ensure a healthy working environment. Employers and administrators or managers of workplaces shall be responsible for work accidents in workplaces and sickness caused by work.
To ensure the health of employees, employers are required to carry out the promotive, preventive, curative, rehabilitative, and palliative efforts and bear all health care costs of the employees. Employers are also required to bear costs for work-related sickness, health issues, and injuries caused by work suffered by employees in accordance with the applicable laws and regulations. Similarly, the Central Government and Regional Governments shall provide support for the protection of the employees.
On the other hand, employees and all parties in a workplace are required to create and maintain a healthy working environment and comply with occupational health and safety regulations applicable in the workplace.
We note that generally the above provisions are similar to those of the occupational health governed under the Previous Health Law. We also note that the Health Law expressly stipulates that the provisions relating to occupational health are to be further governed by a Government Regulation.
Accordingly, the implementation of the above provisions relating to occupational health remains to be seen. We also anticipate that, considering the objections from the medical society with respect to certain provisions of the Health Law, it is possible the Health Law to be challenged by the medical society or other parties of interest to the Constitutional Court. We will monitor the development and will issue further updates as relevant.
August 24, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), or M. Fatih Satria Kasmaliputra (mkasmaliputra@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Health Omnibus Law Series – Occupational Health in Workplace
Update on Obligation to Retain Foreign Exchange Export Proceeds from Natural Resources Within Indonesia
On July 12, 2023, the Government of Indonesia (the “Government”) enacted Government Regulation No. 36 of 2023 on the Foreign Exchange Export Proceeds from the Business, Management, and/or Processing of Natural Resources (“GR 36/2023”). GR 36/2023 sets as an update to, and revokes, Government Regulation No. 1 of 2019 dated June 1, 2019, on the Foreign Exchange Export Proceeds from the Business, Management, and/or Processing of Natural Resources (“GR 1/2019”).
GR 36/2023 will enter into force from August 1, 2023.
Under its consideration, GR 36/2023 states GR 1/2019 must be updated to accommodate the latest developments in the Indonesian financial system. Further, GR 36/2023 states that the foreign exchange export proceeds in relation to natural resources (Devisa Hasil Ekspor Sumber Daya Alam or the “DHE SDA”) must be retained in Indonesia’s financial system to maintain the sustainability of development, improvement, and resilience of the national economy, as well as to increase the optimization of the utilization of natural resources for the maximum prosperity of the people.
While the main provisions of GR 36/2023 are similar to those of GR 1/2019, there are new provisions introduced by GR 36/2023. We set out the salient provisions of GR 36/2023 below.
♦ Retention and Placement of DHE SDA
Same as GR 1/2019, the DHE SDA under GR 36/2023 is derived from the proceeds of exported goods in the following sectors: (i) mining, (ii) plantation, (iii) forestry, and (iv) fishery. Under GR 36/2023 the DHE SDA from the foregoing sectors currently may be placed by the exporter in a Special Account for the DHE SDA (the “Special Account”) with the Indonesian Export Financing Agency (Lembaga Pembiayaan Ekspor Indonesia – “LPEI”) and/or a Foreign Exchange Bank (or Bank Devisa in Bahasa Indonesia, a “Bank”). Previously, GR 1/2019 did not stipulate the placement of the DHE SDA with the LPEI.
GR 36/2023 now regulates that the DHE SDA that is retained and placed by the exporter in the Special Account shall remain in the Indonesian financial system for at least 3 (three) months since the placement for a minimum of 30% (thirty percent). GR 36/2023 also stipulates that the placement of the DHE SDA may be conducted in the following:
- Special Account at the LPEI or the same Bank;
- banking instruments;
- financial instruments issued by the LPEI; and/or
- instruments issued by Bank Indonesia (“BI”).
GR 36/2023 also stipulates that the obligation of to place the DHE SDA above applies to an exporter which has a DHE SDA with an export value in the Export Customs Notification (Pemberitahuan Pabean Ekspor or a “PPE”) of at least USD250,000 or its equivalent. GR 36/2023 allows an exporter with an export value less than US$250,000 to voluntarily place the DHE SDA with the Special Account.
Through the retention and placement of the DHE SDA, the Government incentivizes exporters by way of granting certain tax incentives for any income derived from the placement of the DHE SDA and an exporter who places the DHE SDA with the Special Account may be determined as an exporter with good reputation.
♦ Utilization of DHE SDA
There is no difference between GR 36/2023 and GR 1/2019 regarding what the DHE SDA may be used for (e.g., for the payment of export duty and other levies in the Export sector, loans, and others). If such payment is conducted through an escrow account, the exporter shall open an escrow account with either the LPEI and/or a Bank. If the escrow account is opened prior to GR 36/2023’s entry into force, it shall be transferred to the foregoing two institutions no later than 90 (ninety) days after August 1, 2023.
While GR 36/2023 permits the DHE SDA to be used for payment, it shall be noted that the DHE SDA placed with either the LPEI and/or a Bank shall remain for at least 3 (three) months since the placement for a minimum of 30% (thirty percent).
♦ Supervision of DHE SDA and Sanctions for Violations
The supervision of the DHE SDA will be conducted by the Ministry of Finance (the “MOF”), BI, and the Financial Services Authority (Otoritas Jasa Keuangan – “OJK”) through an integrated information system that is provided and/or used jointly by the foregoing institutions. The supervision by the MOF, BI, and OJK will be the basis for the MOF to either impose an administrative sanction; and revoke an administrative sanction.
An administrative sanction in the form of suspension of export services will be imposed by the MOF on an exporter who:
- does not place the DHE SDA in the Special Account;
- does not conduct the DHE SDA placement amounting to at least 30% (thirty percent) for a period of at least 3 (three) months; and/or
- does not create or transfer an existing escrow account to LPEI or a Bank.
July 28, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Radiansyah S. Yamin (ryamin@aksetlaw.com), or Ammarsyarif G. Goenawan (agoenawan@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Regulation on National Cyber Security Strategy and Cyber Crisis Management
On July 20, 2023, the President issued a cyber security framework namely President Regulation No. 47 of 2023 on National Cyber Security and Cyber Crisis Management Strategies (“PR 47/2023”). This regulation was issued to safeguard the nation and its interests against the abuse of cyber resources and to address and recover from cyber crises considering the potential of technological advancements in the future.
PR 47/2023 governs the strategy of national cyber security which consists of focus areas and an action plan on cyber security national (the “National Cyber Security Action Plan”) made by the State Cyber and Signal Agency or Badan Siber dan Sandi Negara (“BSSN”). PR 47/2023 is effective as of its issuance.
We set out below the key provisions of PR 47/2023.
♦ National Cyber Security Strategy
The national cyber security strategy is aimed at obtaining cyber security and ensuring a secured national digital economy ecosystem. The focus areas of this strategy consist of:
- governance;
- risk management;
- preparedness and resilience;
- strengthening the protection of vital information infrastructure;
- national cryptography independence;
- capability, capacity, and quality enhancement;
- cyber security policy; and
- international cooperation.
PR 47/2023 stipulates that the National Cyber Security Action Plan shall be made by focusing on the abovementioned areas. The National Cyber Security Action Plan is prepared for 5 (five) years and may be reviewed at any time. The Plan shall cover at least the following elements: (i) activities; (ii) success indicators; (iii) implementation timelines; and (iv) responsible parties.
The National Cyber Security Action Plan must be carried out by a state administration agency or instansi penyelenggara negara.
♦ Cyber Crisis Management
Under Article 17(2) of PR 47/2023, the Cyber Crisis Management is coordinated by BSSN which will involve Electronic Service Providers or Penyelenggara Sistem Elektronik (each, an “ESP”).
In implementing the Cyber Crisis Management, BSSN conducts preparation in the form of preparation of a Cyber Crisis Contingency Plan and Contingency Plan Simulation. The latter is carried out through exercise and role playing.
We set out below the implementation actions to be done for each phase of the cyber crisis management, namely actions before the cyber crisis occurs, when the cyber crisis is occurring, and after the cyber crisis occurred.
Before the Cyber Crisis Occurs
The cyber incident response as a means of cyber crisis management before a cyber crisis occurs shall be carried out gradually by the Cyber Incident Response Team. In relation to the cyber crisis early warning, pursuant to Article 22 of PR 47/2023, not only that it shall be informed to ESPs, such ESPs are required to take action in response to such early warning. Subsequently, a cyber crisis status shall be determined by the President based on a suggestion from the Head of BSSN. Upon such determination, the President shall create a cyber crisis task force.
When the Cyber Crisis is Occurring
Cyber Crisis Countermeasures shall be carried out through several activities as set out under PR 47/2023, among others, the identification and analysis of the scope of electronic systems affected by the cyber crisis. Meanwhile, the Cyber Crisis Recovery shall be carried out through data and system restoration for data and system that has been affected or utilization of backup and/or alternative resources, followed by retesting critical and support functions to ensure that recovery objectives are met.
As for the Cyber Crisis Handling Report, it shall be done by the Cyber Crisis task force to the President, which shall consist of the analysis report and objectives of the cyber crisis handling as well as the recommendation on further cyber crisis handling. The determination of the termination of the cyber crisis status shall be done by the President.
After the Cyber Crisis Occurred
The implementation of the activities done in this stage shall be coordinated by the BSSN with the involvement of ESPs. The calculation of the estimated damages, losses, and recovery costs due to a cyber crisis shall derive from the economic value of the temporarily damaged assets arising out of the cyber crisis and costs borne to restore the electronic system to its state prior to the cyber crisis. An evaluation of cyber crisis handling will be a consideration in taking a cyber security policy.
July 26, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com) or Clara Anastasia So (canastasia@aksetlaw.com) for further information.
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Perppu Job Creation Becomes Law based on Law No. 6 of 2023
The House of Representatives (Dewan Perwakilan Rakyat or “DPR”) approved the Government Regulation No. 2 of 2022 in lieu of Law No. 11 of 2020 on Job Creation (“Perppu Job Creation”) into Law based on Law No. 6 of 2023 on the Stipulation of Government Regulation No. 2 of 2022 in lieu of Law No. 11 of 2020 on Job Creation into Law (“Law 6/2023”).
Law 6/2023 does not make any amendment to Perppu Job Creation.
Please look out for our continuation on newsflashes on Law 6/2023 in due course.
April 10, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Adhitya Ramadhan (aramadhan@aksetlaw.com), or M. Raehan A. Fadila (mfadila@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Perppu Job Creation Becomes Law based on Law No. 6 of 2023
Perppu Job Creation Series – Amendments to the Halal Products Law
This Newsflash is a part of our Perppu Job Creation Newsflash series with respect to the issuance of Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang-Undang or Perppu) No. 2 of 2022 dated December 30, 2022 regarding Job Creation (the “Perppu Job Creation”), specifically for Law No. 33 of 2014 dated October 17, 2014, regarding Halal Products Assurance, or the “Halal Products Law”. Perppu Job Creation expressly repeals and replaces Law No. 11 of 2020 dated November 2, 2020 regarding Job Creation (the “Job Creation Law”) and took effect immediately as of December 30, 2022. Accordingly, the amendments to the Halal Products Law under the Job Creation Law are no longer in effect.
Please see below the notable amended provisions to the Halal Products Law under Perppu Job Creation.
One of the key amendments to the Halal Products Law under Perppu Job Creation relates to the validity period to the halal certicates. Under the Halal Products Law, halal certificates shall be valid for 4 (years) after their issuance by the Halal Product Assurance Agency (Badan Penyelenggara Produk Jaminan Halal or “BPJH”), save for any changes to the products’ ingredients composition. Perppu Job Creation amended the foregoing provision by stipulating that halal certificates shall be valid as of their issuance by BPJH and shall remain valid unless there are changes to the products’ ingredients composition and/or halal products process (proses produk halal or “PPH”). In other words, we note that Perppu Job Creation allows halal certificates to be valid for an indefinite time, subject to the foregoing limitations.
Under the Halal Products Law, an application to obtain a halal certificate shall be submitted to BPJH in writing. Perppu Job Creation stipulates a similar provision, but removes the requirement for such application to be made in writing. Accordingly, the application to obtain a halal certificate may be conducted online. Further, Perppu Job Creation stipulates that the verification period for halal certificate applications shall be conducted at the latest 1 (one) working day, whereas such period was not regulated under the Halal Products Law.
In relation to the above, Perppu Job Creation regulates that the inspections and/or testings for the halal status of the products shall be carried out by the Halal Auditor at the latest 15 (fifteen) working days, whereas such period was also not regulated under the Halal Products Law. Nevertheless, in the case that the products’ inspections requires additional time, Perppu Job Creation stipulates that the Halal Inspection Institution (Lembaga Pemeriksa Halal or “LPH”) may apply for an time extension to BPJH. Further provisions on the procedures of inspections and/or testings for the halal status of the products shall be regulated under the relevant Government Regulation.
With regard to the issuance of halal certificates, the Halal Products Law stipulates that the halal certificates shall be issued by BPJH at the latest 7 (seven) working days as of the receipt of the decree on halal status of products from the Indonesian Islamic Clergy Council (Majelis Ulama Indonesia or “MUI”), while Perppu Job Creation stipulates that halal certificates shall be issued by BPJH at the latest 1 (one) working day as of the receipt of the determination on halal status of the products.
Perppu Job Creation also adds several articles including, among others, a provision which in essence mandates the establishment of an integrated electronic system to conduct the services relating to halal products assurance, at the latest 1 (one) year after the enactment of Perppu Job Creation. Such electronic system connects all halal certifications process conducted by BPJH, LPH, MUI, the Halal Product Fatwa Committee (Komite Fatwa Produk Halal or “KFPH”), and PPH assistant (pendamping PPH).
Additionally, Perppu Job Creation mandates the establishment of KFPH which will consist of various ulama and academics and is directly responsible to the Ministry of Religious Affairs, at the latest 1 (one) year after the enactment of Perppu Job Creation. Until KFPH is established, the Government will carry out KFPH’s duties. Duties and authorities of KFPH stipulated under Perppu Job Creation includes the determination of halal status (i) in the case that the application for halal certificate is submitted by micro and small enterprises and (ii) in the case that MUI has not issued the determination of halal status of the products within 3 (three) working days as of the receipt of the examination results from LPH.
We note that the amendments to the Halal Products Law under Perppu Job Creation are in line with the Government’s intention to simplify all licensing processes in Indonesia, including to integrate the halal certification process into a unified electronic-based system and to make it more efficient and easier. Further, we note that the foregoing amendments may be advantegous for the relevant business actors, particularly considering that Perppu Job Creation allows the halal certificates to be valid for an indefinite time and removes the obligation to renew such certificates upon their expiration. Notwithstanding the foregoing, we anticipate the Government to issue several technical implementing regulations of the Halal Products Law. Thus, further implementation of amendments to the Halal Products Law under Perppu Job Creation remains to be seen.
It shall be noted that Perppu Job Creation was approved by the Parliament (Dewan Perwakilan Rakyat or “DPR”) on March 21, 2023 and Perppu Job Creation has been enacted as a Law.
March 28, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), or M. Fatih Satria Kasmaliputra (mkasmaliputra@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.
Perppu Job Creation Series – Amendments to the Halal Products Law
Adjustment of Working Time and Wages in Certain Business Sectors
The Ministry of Manpower allows an adjustment to the working time and wages of a certain export-oriented labor-intensive industry company (a “Labor-intensive Industry Company”) by introducing Minister of Manpower Regulation No. 5 of 2023 on Working Time and Wages Adjustments on a Certain Export Oriented Labor-intensive Industry Companies which are Impacted by the Global Economic Change (the “Regulation”). The Regulation entered into force as of March 8, 2023.
The Regulation intends to maintain the continuity of work and business amidst the current changes in the global economy. Furthermore, the Manpower Ministry’s Director General for Industrial Relations and Social Security Development states that the Regulation is issued to address the request from several export-oriented industry associations regarding the flexibility of working hours and days of their employees due to the pressure the companies face.
We highlight below the key provisions of the Regulation:
♦ Criteria of Labor-intensive Industry Companies
To be entitled to the adjustments, there are certain criteria under the Regulation. A company shall have (i) at least 200 (two hundred) employees, (ii) the labor costs constitute at least 15% (fifteen percent) of the production costs, and (iii) production dependency on the order from the United States and countries in Europe which is proven by order request letters.
The Regulation the companies that may implement the adjustments are companies in the following industries:
-
- the textile and apparel industry;
- the footwear industry;
- the leather and leather goods industry;
- the furniture industry; and
- the children’s toys industry.
♦ Adjustment of Working Time and Wages of Labor-intensive Industry Companies
Under the Regulation, an adjustment of working time may be made to be less than (i) 7 (seven) hours per day and 40 (forty) hours per week for 6 (six) working days, or (ii) 8 (eight) hours per day and 40 (forty) hours per week for 5 (five) working days. The adjustment of the working days shall be based on an agreement of the employer and the employee.
With regard to the wages adjustment, the Regulation stipulates that a Labor-intensive Industry Company may adjust its employees’ wages to 75% (seventy-five percent) of their current wages. Similar with the adjustment of the working time, the adjustment of wage is subject to an agreement of the employer and the employee.
Both the working time and wages adjustments shall be valid for 6 (six) months as of the enactment of the Regulation (i.e., until September 8, 2023).
Such agreement shall be in writing and at least consist of (i) the adjustment of the working time, (ii) the adjusted amount of wages, and (iii) the validity period of the agreement. Note that the validity period of the agreement may not exceed the adjustment validity period (i.e., at the latest, September 8, 2023).
Based on the above, it is clear that if the employee does not agree to any proposed adjustment above then a Labor-intensive Industry Company would not be able to make such adjustment.
March 24, 2023
AKSET
Please contact Johannes C. Sahetapy-Engel (jsahetapyengel@aksetlaw.com), Thomas P. Wijaya (twijaya@aksetlaw.com), and Ammarsyarif Ghazyandra Goenawan (agoenawan@aksetlaw.com) for further information.
Disclaimer:
The foregoing material is the property of AKSET and may not be used by any other party without prior written consent. The information herein is of general nature and should not be treated as legal advice, nor shall it be relied upon by any party for any circumstance. Specific legal advice should be sought by interested parties to address their particular circumstances.
Any links contained in this document are for informational purposes and are available and relevant at time this publication is made. We provide no liability whatsoever in respect of any information or content in such links.