Please find the SSEK Legal Alert for December 2020. The SSEK Legal Alert is a monthly survey designed to keep you up to date with the latest legal developments in Indonesia.

BANK INDONESIA ("BI")

BI Regulation No. 22/14/PBI/2020 dated September 29, 2020, regarding Monetary Operation. This Regulation concerns monetary operations to achieve monetary stability. It provides that a monetary policy operation may be either conventional or based on shariah principles. This Regulation further stipulates that a monetary policy operation may be either an open market operation or a standing facilities operation. It came into force on October 1, 2020.

Members of the BI Board of Governors Regulation No. 22/29/PADG/2020 dated October 5, 2020, regarding the Second Amendment of Members of the BI Board of Governors Regulation No. 20/15/PADG/2018 regarding the Establishment of Immediate Fund Settlement Through the Bank Indonesia – Real-Time Gross Settlement System. This Regulation amends Article 105 (3) of the previous regulation to now provide that fund settlement instructions in the queueing mechanism on the BI-RTGS System shall be for transactions conducted in Bank Indonesia. It also provides that fund settlement instructions shall be settled based on transaction priority. Other amendments pertain to the governance of fund settlement instructions that enter the queuing mechanism. This Regulation came into force on the date of its stipulation.

BI Regulation No. 22/16/PBI/2020 regarding the Third Amendment of Bi Regulation No. 19/4/PBI/2017 dated September 29, 2020, regarding Shariah Short-Term Liquidity Funding (PLJPS) for Commercial Banks. This Regulation amends provisions concerning PLJPS collateral, the PLJPS application document, the PLJPS post-approval process and arrangements relating to breaches and further actions by BI. It came into force on the date of its promulgation.

ENERGY AND MINERAL RESOURCES

Minister of Energy and Mineral Resources ("MEMR") Decree No. 217 K/80/MEM/2020 dated October 27, 2020, regarding Amendment of MEMR Decree No. 200 K/80/MEM/2020 regarding Stipulation of Producing Regions and the Basis for the Calculation of Profit-Sharing Funds for Oil and Gas Resources. This Decree amends the 2020 plan for oil and gas producing regions and profit-sharing funds to reflect a change in the oil and gas lifting assumptions. It came into effect on the date of its enactment.

MEMR Decree No. 216 K/82/MEM/2020 dated October 27, 2020, regarding Stipulation of Producing Regions and the Basis for the Calculation of Profit-Sharing Funds for Geothermal Resources in 2021. This Decree stipulates 2021 plans for geothermal resources. It came into effect on the date of its enactment.

MEMR Decree No. 215 K/82/MEM/2020 dated October 27, 2020, regarding Stipulation of Producing Regions and the Basis for the Calculation of Profit-Sharing Funds for Mineral and Coal Resources in 2021. This Decree stipulates plans for mineral and coal resources in 2021. It came into effect on the date of its enactment date.

MEMR Decree No. 214 K/82/MEM/2020 dated October 27, 2020, regarding Stipulation of Producing Regions and the Basis for the Calculation of Profit- Sharing Funds for Oil and Gas Resources in 2021. This Decree stipulates plans for oil and gas resources in 2021. It came into effect on the date of its enactment date.

ENVIRONMENT AND FORESTRY

Minister of Environment and Forestry ("MOEF") Regulation No. P.21/MENLHK/SETJEN/KUM.1/10/2020 dated November 2, 2020, regarding Assessment of Sustainable Production Forest Management and Verification of the Legality of Timber. This Regulation stipulates that the assessment of sustainable production forest management and the verification of the legality of timber shall be done through the Wood Legality Verification System (Sistem Verifikasi Legalitas Kayu or "SVLK") and that the SVLK will be monitored by an independent observer. It also covers technical and funding assistance to strengthen the capacity of forest production. This Regulation came into force on December 2, 2020.

MOEF Regulation No. P.24/MENLHK/SETJEN/KUM.1/d/2020 dated November 2, 2020, regarding the Provision of Forest Areas for the Development of Food Estates. Under this Regulation the provision of forest area for the development of food estates (Kawasan Hutan untuk Ketahanan Pangan or "KHKP") shall be done by converting allocated forest area or by the determination of forest area for KHKP through an application to the relevant authorities. This Regulation came into force on the date of its promulgation.

MOEF Regulation No. P.17/MENLHK/SETJEN/KUM.1/8/2020 dated September 9, 2020, regarding Customary Forest and Private Forest. The stated aim of this Regulation is to provide legal certainty for customary and private forest stakeholders in realizing community welfare and sustainable forest management. It also aims to ensure that customary forest and private forest stakeholders are recognized, protected and provided government incentives for managing the forest in a sustainable manner. This Regulation came into force on the date of its promulgation.

FINANCE

Minister of Finance ("MOF) Regulation No. 110/PMK.03/2020 dated August 14, 2020, regarding the Amendment of MOF Regulation No. 86/PMK.03/2020 regarding Tax Incentive for Taxpayers Impacted by Coronavirus Disease. This Regulation, among other things, adds provisions on the final income tax incentive for construction services. It also amends articles regarding Article 25 Income Tax instalments and extends Article 21, Article 25 and Article 22 tax incentives to December 2020. This Regulation came into force on the date of its enactment.

MOF Regulation No. 148/PMK.04/2020 dated October 8, 2020, regarding the Amendment of MOF Regulation No. 40/PMK.04/2016 regarding Electronic Payment and/or Deposit of State Income in the Framework of Customs and Excise. This Regulation amends the types of state income, taxes related to state income, and types of customs and excise income. This Regulation came into force 30 days after it was enacted.

MOF No. 149/PMK.04/2020 dated October 8, 2020, regarding the Second Amendment of MOF Regulation No 34/PMK.04/2020 regarding the Provision of Customs and/or Excise Facilities and the Taxation of Goods Imported for the Purpose of Handling the Coronavirus Pandemic (COVID- 19). This Regulation stipulates that all requests for customs and/or excise facilities prior to the enactment of this Regulation will be settled under MOF Regulation No. 34/PMK.04/2020. This Regulation came into force on the date of its stipulation.

MOF Regulation No. 168/PMK.04/2020 dated October 27, 2020, regarding Procedures for the Imposition of Import Duty Tariffs on Imported Goods Based on the Establishment of the ASEAN–Australia–New Zealand Free Trade Area. This Regulation contains provisions related to import activities by companies from ASEAN member states, Australia and New Zealand, which previously were regulated by MOF Regulation No. 229/PMK.04/2017 (as amended). This Regulation came into force on November 3, 2020.

MOF Regulation No. 169/PMK.04/2020 dated October 27, 2020, regarding Procedures for the Imposition of Import Duty Tariffs on Imported Goods Based on the Agreement on Trade in Goods under the Framework Agreement on Economic Cooperation Among the Governments of the Member Countries of the Association of Southeast Asian Nations and the Republic of Korea. This Regulation stipulates provisions related to import activities by companies from ASEAN member states and the Republic of Korea, which previously were regulated by MOF Regulation No. 229/PMK.04/2017 (as amended). This Regulation came into force on November 3, 2020.

MOF Regulation No. 170/PMK.04/2020 dated October 27, 2020, regarding Procedures for the Imposition of Import Duty Tariffs on Imported Goods Based on the Agreement on Trade in Goods under the Framework Agreement on Economic Cooperation Among the Governments of the Member Countries of the Association of Southeast Asian Nations and the Republic of India. This Regulation stipulates provisions related to import activities by companies from ASEAN member states and India, which previously were regulated by MOF Regulation No. 229/PMK.04/2017 (as amended). This regulation came into force on November 3, 2020.

MOF Regulation No. 171/PMK.04/2020 dated October 27, 2020, regarding Procedures for the Imposition of Import Duty Tariffs on Imported Goods Based on the Agreement on Trade in Goods under the Framework Agreement on Economic Cooperation Among the Governments of the Member Countries of the Association of Southeast Asian Nations and the People's Republic of China. This Regulation stipulates provisions related to import activities by companies from ASEAN member states and the People's Republic of China, which previously were regulated by MOF Regulation No. 229/PMK.04/2017 (as amended). This Regulation came into force on November 3, 2020.

MOF Regulation No. 134/PMK.010/2020 dated September 22, 2020, regarding Customs Borne by the Government for Goods and Materials Imported to Produce Goods and/or Services by Certain Industrial Sectors Affected by the Coronavirus Disease 2019 (COVID-19) Pandemic. This Regulation stipulates that the government can bear certain customs duties to increase productivity, economic growth and state income, and maintain financial stability. This Regulation stipulates the industries eligible for this facility and the procedure to obtain the incentive. This Regulation is valid from the date of its enactment until December 31, 2020.

MOF Regulation No. 166/PMK.010/2020 dated October 23, 2020, regarding the Second Amendment of MOF Regulation No. 13/PMK.010/2017 regarding the Stipulation of Export Goods Subject to Export Duty and Export Duty Tariff. This Regulation provides the list of export goods subject to export duty and export duty tariff. These goods include (i) leather and wood, (ii) palm oil, crude palm oil, and derivative products, (iii) combination of crude palm oil and its derivative products, (v) result of the processing of metal minerals, and (vi) metal mineral products that meet certain criteria. This Regulation came into force on the date of its promulgation.

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