We provide herein the executive summary of 19 newly enacted
regulations in Indonesia issued between February and April
2022.
General Corporate
Sector |
No |
Regulation |
Summary |
1. |
Business Competition Supervisory Commission (Komisi Pengawas
Persaingan Usaha or "KPPU") No. 1
of 2022 on Business Competition Compliance Program
("KPPU Reg. 1/2022")
Enforcement Date: 24 March 2022
|
- To increase compliance with the competition law, and to prevent
monopoly and unhealthy business practices, KPPU has implemented a
guideline on business competition compliance program
("Compliance Program"), in effect since
2016. KPPU Reg. 1/2022 is issued to accommodate the program
implementation. Business actors that:
-
- have joined the Compliance Program but have not been registered
at KPPU; and
- have not joined the Compliance Program
- can register their relevant businesses
to the Head of KPPU.
- Compliance Program contains: 1) Code of Ethics; 2) Compliance
guide; 3) socialization, training, or other activities regarding
the program implementation. Business actors must report the
implementation of their program to KPPU to be evaluated at KPPU
hearings.
- If approved, KPPU will issue the Compliance Program
Stipulation, which is valid for five years and can be
extended.
- KPPU may relax the sanctions or fines against business actors
who have registered their Compliance Program.
|
Manpower Sector |
2. |
Minister of Manpower ("MoM") Circular
Letter No. M/2/HK.04/IV/2022 on Revocation of MoM Circular Letter
No. M/3/HK.04/III/2020 on Protection of Workers/Laborers and
Business Continuity to Prevent and Mitigate the Spread of COVID-19
("MoM Circular Letter No. 2/2022")
Enforcement date: 6 April 2022
|
- MoM Letter No. 2/2022 revokes MoM Circular No.
M/3/HK.04/III/2020 on measures to protect workers and current
businesses in the middle of Covid-19 situation, which are: 1)
efforts to prevent the spread of Covid-19 cases in a workplace
environment; 2) wage protection for workers during the pandemic
(workers who are ODP or Person Under Observation, or those who are
confirmed to have Covid-19 still maintain their rights to take
leaves, receive their wages, and have their pays adjusted according
to prior agreements between the Company/Employer and the
workers).
- As the pandemic has been under control through, among other
measures, vaccination programs, easing of business restrictions,
relaxation of business actors' obligations, as well as easing
of health protocols leading to the economic recovery, measures to
protect workers and businesses are no longer applicable and are
terminated.
|
3. |
MoM Circular Letter No. M/3/HK.04/IV/2022 on Implementation of
Joint Leave by Companies ("MoM Circular Letter No.
3/2022")
Enforcement date: 14 April 2022
|
- In MoM Circular Letter No. 3/2022, MoM elaborates the
implementation of joint leave in a Company.
- Joint leave is a part of workers' annual leave. Its
implementation shall be based on the agreement between the Company
and the workers and/or worker unions, company regulation,
employment agreement, collective labour agreement, as well as other
conditions in line with the company's operational needs.
- The period of annual leave will be reduced when the workers
take their leaves during the joint leave period. On the contrary,
workers who work during the joint leave period will not have their
leave period reduced, and they must receive their pays as they work
on normal working days.
|
4. |
Letter of the Director-General of Development of Industrial
Relations and Social Security of Workers No.
4/303/HI.00.03/III/2022 on Notification Documents and Termination
of Employment Relationship Report ("Letter No.
4/2022")
Enforcement date: 11 March 2022
|
- Letter No. 4/2022 provides a standard of reporting mechanism
regarding termination of employment in terms of the documents,
employee's response letter, application form to be submitted to
the Manpower Office, and receipt issued by the Manpower
Office.
- If the employment termination is unavoidable, the employer must
notify the relevant workers and/or workers union with the reasons
of termination, at least, 14 days before the termination. If the
workers accept the termination, the employer must report it to MoM
or the relevant provincial/local Manpower Office to obtain the
official receipt.
|
5. |
Letter of the Social Security Agency for Employment No.
B/1409/032022 on Limits of Maximum Wages and Pension Benefits for
the Year 2022 ("Social Security Agency Letter No.
1049/2022")
Enforcement date: 1 March 2022
|
- According to the Central Bureau of Statistics ("Badan
Pusat Statistik or BPS"), the inflation rate
in 2021 is 1.87% and the growth of Indonesian Gross Domestic
Product ("GDP") in 2021 has increased by
3.69%. As a result, Manpower BPJS has adjusted the amount of: 1)
minimum pension benefit to IDR 363,000/month; 2) maximum pension
benefit to IDR 4,357,900/month; and 3) highest wage limit as the
basis for insurance payment calculation to IDR
9,077,600/month.
- The updated adjustments have come into effect since March 2022
payment period.
|