Dentons (JD Supra Indonesia)

In early 2021, the Government of the Republic of Indonesia issued Government Regulation No. 42 of 2021 concerning Making National Strategic Projects Easier (“GR 42/2021”) and Government Regulation No. 19 of 2021 concerning the Implementation of Land Procurement for the Public Interest (“GR 19/2021”). “National strategic project” is defined as a project and/or program carried out by the central...

With the largest Moslem population in the world, Indonesia has great market potential in the halal industry. This also followed by the growing demand by Moslem consumers for halal-based products and transparency as to whether a product is halal. As a response to such growing demand and in order to provide comfort and certainty to the Indonesian Moslem community seeking to consume halal products,...

Law No. 11 of 2020 on Job Creation (“Job Creation Act”) has amended several tax laws including the Income Tax Act Law No. 7 of 1983 as amended several times, most recently by Law No. 36 of 2008 on the Fourth Amendment to the Income Tax Act Law No. 7 of 1983. The amendment provides a relaxation of income tax to support ease of doing business... Please see full Publication below for more...

Following the enactment of Law No. 11 of 2020 on Job Creation (also known as the “Job Creation Act”), the government has enacted Government Regulation No. 26 of 2021 (“GR 26/2021”) on 2 February 2021 in order to provide clear guidelines and direction for businesses in the agricultural sector which serves as an implementing regulation to Law Number 39 of 2014 on Agriculture (“Law 39/2014”) as...

As an implementation of Article 185 of Law No. 11 of 2020 concerning Job Creation (“Job Creation Act”) requiring the promulgation of implementing regulations of the Job Creation Act, the Government of Indonesia enacted Government Regulation (“GR”) No. 25 of 2021 concerning Implementation in the Energy and Mineral Resources Sector (“GR 25/2021”) on 2 February 2021, which also has provisions...

The Indonesian government has recently enacted Government Regulation No. 29 of 2021 concerning the Operation of the Trade Sector (“GR 29/2021”) as one of the implementing regulations of Law No. 11 of 2020 on Job Creation (the “Job Creation Act”). Please see full Publication below for more information.

As the Government’s response to the challenges of overlapping policies and regulations in various sectoral and regional regulations, the Government of Indonesia has enacted Law No. 11 of 2020 concerning Job Creation (“Job Creation Act”) to support the simplification of investment mechanisms and provide more certainty for investors in Indonesia. With regard to housing matters, the Job Creation Act

Following the issuance of Law Number 11 of 2020 concerning Job Creation (the "Job Creation Act"), the Indonesian government has issued 49 (forty nine) implementing regulations, consisting of 45 Government Regulations and 4 President Regulations. One of them is Presidential Regulation Number 12 of 2021 concerning Government Procurement of Goods/Services (“PR 12/2021") as an amendment to...

Following the issuance of the Job Creation Act Law No. 11 of 2020 (“Omnibus Law”), the Indonesian Government has issued several implementing regulations, among which are Government Regulation No. 7 of 2021 concerning the Ease, Protection and Empowerment of Cooperatives and Micro, Small and Medium Enterprises (“MSMEs”) (“GR 7/2021”) and Government Regulation No. 8 of 2021 concerning Companies’...

As mandated by Law No. 11 of 2020 concerning Job Creation (“Job Creation Act”), specifically in the business licensing sector, the Government of the Republic of Indonesia enacted Government Regulation No. 5 of 2021 concerning the Implementation of Risk-Based Business Licensing (“GR 5/2021”) and Government Regulation No. 6 of 2021 concerning Implementation of Business Licensing in the Regions (“GR

As mandated by Law No. 11 of 2020 concerning Job Creation (“Job Creation Act”) with the aim of harmonization and simplification of laws and regulations, the Indonesian government has enacted an implementing regulation in the aviation sector, i.e., Government Regulation No. 32 of 2021 concerning the Operation of the Aviation Sector (“GR 32/2021”). Please see full Publication below for more...

In order to boost economic development throughout the region, the Government has in recent years developed economic zones: Special Economic Zones/Kawasan Ekonomi Khusus (SEZ) and Free Trade Zones and Free Ports/Kawasan Perdagangan Bebas dan Pelabuhan Bebas (FTZFP). With the Job Creation Act Law No. 11 of 2020, which amends the Special Economic Zones Act Law No. 39 of 2009, Free Trade Zones and...

On 26 October 2020, Law No. 10 of 2020 on Stamp Duty (“2020 Stamp Duty Act”) was enacted, which replaces the previous stamp duty act in order to optimize state revenue and to keep up with developments in information technology, which have led to an increase of paperless activities including electronics transactions. In this article, we will share the highlighted points in the 2020 Stamp Duty Act,

The Job Creation Law, also known as the Indonesian Omnibus Law provides for new norms and terminology for Business Licensing (Perizinan Berusaha), and amends a number of articles in many laws, including the plantation law. Please see full article below for more information.

To encourage more investment into Indonesia, the Job Creation Act offers less restrictive provisions on investment. It is expected that the more investment coming into Indonesia, the more new jobs are created. Therefore, the Government of the Republic of Indonesia has set a list of sectors that are: (a) open for investment, (b) closed for investment and (c) only open to be managed by the central...

In mid-August 2020, amidst the surviving mode of the COVID-19 pandemic, the attention of Indonesian netizens was also focused on a request for a Judicial Review to the Constitutional Court for the Law Number 32 of 2002 concerning Broadcasting (Broadcasting Law) that was filed by two private television stations that are part of the conventional media conglomeration in Indonesia, RCTI and iNews....

In mid-August 2020, amidst the surviving mode of the COVID-19 pandemic, the attention of Indonesian netizens was also focused on a request for a Judicial Review to the Constitutional Court for the Law Number 32 of 2002 concerning Broadcasting (Broadcasting Law) that was filed by two private television stations that are part of the conventional media conglomeration in Indonesia, RCTI and iNews....

Many would consider the Job Creation Act to be an important milestone in structural reform in Indonesia, expecting it to strengthen monetary policy, provide a more accommodative fiscal policy, and accelerate infrastructure spending. In relation to the enactment of the Job Creation Act, this article will introduce features of the Indonesian Sovereign Wealth Fund. Looking at the new law, Dentons

The Job Creation Act Law No.11 of 2020 (“Job Creation Act”), also known as the Omnibus Law, which was enacted and came into effect on 2 November 2020, is a breakthrough. It acts as a comprehensive law that governs and amends various provisions in various sectors, including the aviation sector. In reviewing the new law in the aviation sector, Dentons HPRP’s lawyers find principal changes have...

The Job Creation Act Law No.11 of 2020 (“Job Creation Act”), also known as the Omnibus Law, which was enacted and came into effect on 2 November 2020, is a breakthrough. It acts as a comprehensive law that governs and amends various provisions in various sectors, including the aviation sector. In reviewing the new law in the aviation sector, Dentons HPRP’s lawyers find principal changes have...

The Job Creation Omnibus Bill was enacted by the President of the Republic of Indonesia as Law No. 11 of 2020 concerning Job Creation on 3 November 2020 (the “Job Creation Act”). One of the provisions in the Job Creation Act which has an important role in a business’s success and effectiveness is the support for research and innovation. There are important amendments in this cluster, and one of...

The Job Creation Law was finally signed by President Joko Widodo on 2 November 2020. Dentons HPRP’s lawyers look at the first cluster in the new law, which contains a simplification of business licensing, and highlight several essential points. Please see full article below for more information.

The government of Indonesia continues to improve the role and capability of State-Owned Enterprises (SOEs) so that they can more quickly overcome the challenges of the economic crisis. One effort that can be taken by the government is to restructure SOE. Please see full article below for information.

COVID-19 has changed the way people interact as they reduce the frequency of physical interaction in order to slow down and hopefully stop the spread of the virus. As a result, the demand for the use of technology in daily interaction has been rapidly growing during the pandemic to ease communication while maintaining physical distance. The President of Indonesia, Joko Widodo, has encouraged...

The Government of Indonesia has issued Regulation Number 29 Year 2020 (“GR-29”) regarding Income Tax facilities in handling COVID-19. A summary of GR-29 is as follows: Additional net income deduction. Domestic taxpayers who produce medical equipment and/or household health supplies (Perbekalan Kesehatan Rumah Tangga / “PKRT”) for handling COVID-19 are granted an additional net income deduction.

The government of Indonesia issued a new regulation concerning Implementing Regulation of the Construction Law on 21 April 2020. The new regulation may have a significant impact on business activities related to construction services, specifically the technical provisions related to construction services. What’s in the new regulation? Please see full article below for more information.

As a response to the challenges in Indonesia’s mining industry, recently the Government of Indonesia promulgated a new regulation concerning the amendment to the Mining Law. What’s in the new regulation, and how is it different from the previous one? Please see full article below for more information.

On 13 April 2020, the President of the Republic of Indonesia, Mr. Joko Widodo, issued Presidential Decree No. 12 of 2020 concerning the Determination of Corona Virus Pandemic Non-Natural Disaster as a National Disaster (“Presidential Decree No. 12/2020”). Since then, to halt COVID-19 pandemic, the Government has implemented Large-Scale Social Restrictions (Pembatasan Sosial Berskala Besar or “PSBB

The COVID-19 outbreak is not only affecting the health of hundreds of thousands of people throughout the world, but it has also had a massive impact on all economic sectors, and in Indonesia, like any other part of the world, one of the notably impacted sectors is the hospitality industry. As we have seen, all countries around the world have restrict the movement of people to various degrees of...

Reg. 1/2020 grants the government the authority to use the state budget for 2020 differently in order to handle the COVID-19 pandemic and/or threats that may endanger the stability of the national economy and financial system. The authority includes the right, (i) to change the limitation on the budget deficit of 3% of the Gross Domestic Product (GDP) up until the 2022 fiscal year, (ii) to...