OCTOBER 2014 LEGAL ALERT. general

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1 LEGAL ALERT OCTOBER 2014 SSEK Legal Alert is a monthly publication of SSEK, Indonesian Legal Consultants. SSEK s lawyers, advisors and associates provide a wide range of legal services to Indonesian and multinational corporations, banks, joint ventures and other organisations. SSEK Legal Alert is a monthly survey designed to keep our clients up to date with the latest legal developments in Indonesia. To subscribe, visit our website: * * * general Law No. 13 of 2014, dated July 21, 2014, regarding the Ratification of the Extradition Treaty between the Republic of Indonesia and the Republic of India. This Law ratifies the Extradition Treaty between the Republic of Indonesia and the Republic of India, which was executed on January 25, This Law came into effect on the date of its issuance. Law No. 28 of 2014, dated October 16, 2014, regarding Copyright. This Law addresses several issues not covered by the previous Copyright Law, Law No. 19 of This new Law provides a broader definition of copyright-protected creations and a longer protection period, and stipulates that a copyright can be an object of fiduciary security. This Law came into effect on the date of its issuance. Law No. 40 of 2014, dated October 17, 2014, regarding Insurance. This new Insurance Law revokes the previous Insurance Law, Law No. 2 of However, the implementing regulations for Law No. 2 of 1992 shall remain valid as long as they do not contravene the new Insurance Law. The new Insurance Law stipulates the separation of conventional and Sharia insurance companies, requires that an Indonesian shareholder in an insurance company be owned ultimately by Indonesian nationals and stipulates that a controlling shareholder may only be a controlling shareholder in one life insurance company, one general insurance company, one Sharia insurance company and one Sharia reinsurance company. This Law came into force on the date of its issuance. Government Regulation No. 66 of 2014, dated August 6, 2014, regarding Environmental Health. This Regulation governs environmental health, including the determination of quality standards for water, air, soil, chemicals and foods, and quality standards for testing. It also stipulates sanctions and the waste management process. This Regulation came into force on the date of its issuance. Government Regulation No. 69 of 2014, dated September 15, 2014, regarding Water Utilization Rights. This Regulation governs the implementation of water utilization and water exploitation rights, including licensing procedures, the rights and obligations of holders of Water Utilization Rights and Water Exploitation Rights licenses, sanctions and dispute settlement. This Regulation came into force on the date of its issuance. Government Regulation No. 74 of 2014, dated October 14, 2014, regarding Road Transportation. This Regulation revokes Regulation No. 41 of It regulated all aspects of road transportation, including the implementation of human and goods transportation, the obligation to provide public transportation, licensing and transportation tariffs. This Regulation came into force on the date of its issuance. SSEK legal alert 1

2 Government Regulation No. 77 of 2014, dated October 14, 2014, regarding the Third Amendment to Government Regulation No. 23 of 2010 regarding the Implementation of Coal and Mineral Business Activities. This Regulation amends several provisions in Government Regulation No. 23 of 2010 and Government Regulation No. 24 of There are several major changes in this Regulation, including limitations on foreign ownership in mining business license holders, divestment procedures and the treatment of expired and revoked mining business licenses. This Regulation came into force on the date of its issuance. Government Regulation No. 89 of 2014, dated October 17, 2014, regarding Loan Interest Rate or Financing Yields and Scope of Business Area of Micro-Financing Institutions. This regulates the obligation of micro-financing institutions under Law No. 1 of 2013 to report to the Financial Services Authority ( OJK ) every four months their interest rates in providing loans to customers. This Regulation comes into force on January 8, Presidential Regulation No. 99 of 2014, dated September 18, 2014, regarding the Second Amendment to Presidential Regulation No. 71 of 2012 regarding Land Procurement for Public Interest. Under this second amendment, the assessor to determine the compensation for any land acquired for public purposes will be appointed through service procurement. The assessor was previously appointed by the chairperson of the Land Procurement Office. This second amendment also requires post-qualification if the cost of assessment exceeds Rp 50 million, which was not addressed in the previous regulations. This Regulation came into force on the date of its issuance. Presidential Regulation No. 98 of 2014, dated September 18, 2014, regarding Licensing for Micro and Small Businesses. This Regulation requires micro and small businesses to obtain a license issued by the local district head. This Regulation came into force on the date of issuance. Presidential Regulation No. 97 of 2014, dated September 18, 2014, regarding One-Door Integrated Services. This Regulation requires the central government and local governments to provide one-door integrated services for licensing and nonlicensing matters using an electronic system. It also stipulates that specific matters will be delegated from respective ministries to the Capital Investment Coordinating Board ( BKPM ) to simplify procedures. This Regulation came into force on the date of its issuance. Minister of Education and Culture Regulation No. 69 of 2014, dated August 14, 2014, regarding License to Implement Non-Formal Education Constituting Foreign Investment. This Regulation requires a specific license issued by the Minister of Education and Culture with respect to implementing non-formal education established by foreign capital. Under this Regulation, an application submitted by a legal entity to the Minister of Education and Culture with the intention to implement non-formal requires approval of the Capital Investment Coordinating Board ( BKPM ), a recommendation letter from the provincial education office and deeds and approvals from the Minister of Law and Human Rights. It also stipulates that the license will be valid for a period of three years, with the license holder required to submit annual reports to the relevant authorities. This Regulation has been in force since August 14, Minister of Empowerment of State Officials and Bureaucratic Reform Regulation No. 24 of 2014, dated August 20, 2014, regarding Operating Guidelines for Management of Complaints regarding National Public Services. This Regulation stipulates an integrated complaint management system in which the public may file any SSEK legal alert 2

3 complaint about a public service operator. Such complaints shall cover any service that does not meet service standards or any violations by the service operator. This Regulation came into force on the date of its issuance. National Construction Service Development Institution ( LPJKN ) Regulation No. 6 of 2014, dated June 27, 2014, regarding the First Amendment to LPJKN Regulation No. 10 of 2013 regarding the Registration of Construction Implementer Service Business. This Regulation amends, among others, Attachment 2, Attachment 2A, Attachment 6-6, Attachment 8-9 and Attachment 24 of LPJKN Regulation No. 10 of This Regulation came into effect on June 27, banking Bank Indonesia ( BI ) Regulation No. 16/15/PBI/2014, dated September 11, 2014, regarding Non-Bank Foreign Currency Business. This Regulation stipulates guidelines for non-bank money changers in carrying out their business activities. Under this Regulation, money changers can commence business operations after securing a license from BI. This Regulation stipulates that money changers may only open counters, with certain restrictions. Money changers must also submit several reports to BI. This Regulation came into force on September 11, Bank Indonesia ( BI ) Regulation No. 16/18/PBI/2014, dated September 17, 2014, regarding Amendment of BI Regulation No. 15/8/PB/2013 regarding Hedging Regulation. This Regulation was issued to guarantee the value of the rupiah against foreign currencies. It amends several matters related to foreign exchange banks and any party that carries out transactions using foreign currency. This Regulation revokes the previous four types of underlying activities for hedging, with the underlying activity now to be decided by BI. This Regulation also simplifies the procedure for settling a hedging transaction and exemptions. This Regulation came into force on November 10, Bank Indonesia ( BI ) Circular Letter No. 16/14/DPM, dated September 17, 2014, regarding Transactions of Foreign Exchange against Rupiah between Banks and Domestic Parties. This Circular Letter implements BI Regulation No. 16/16/PBI/2014 regarding Transactions of Foreign Exchange against Rupiah between Banks and Domestic Parties. This Circular Letter regulates domestic parties entering into foreign exchange transactions with banks and establishes the transaction documents to be used by domestic parties. This Circular Letter came into force on November 10, 2014 Bank Indonesia ( BI ) Circular Letter No. 16/15/DPM, dated September 17, 2014, regarding Transactions of Foreign Exchange against Rupiah between Banks and Domestic Parties. This Circular Letter implements BI Regulation No. 16/17/PBI/2014 regarding Transactions of Foreign Exchange against Rupiah between Banks and Domestic Parties. It regulates foreign parties entering into foreign exchange transactions and establishes the transaction documents to be used by foreign parties. This Circular Letter came into force on November 10, Bank Indonesia ( BI ) Circular Letter No. 16/16/DKSP, dated September 30, 2014, regarding Procedure for the Implementation of Consumer Protection of Payment System Service. This Circular Letter implements BI Regulation No. 16/1/PBI/2014 regarding Consumer Protection of Payment System Service. This Circular Letter stipulates the procedure for conveying complaints about BI and/or payment system service implementers and also stipulates complaint resolution mechanisms. This Circular Letter establishes a reporting obligation by payment system service implementers. This Regulation came into force on September 30, 2014 SSEK legal alert 3

4 customs and excise Minister of Finance Regulation No. 153/PMK.011/2014, dated July 25, 2014, regarding the Third Amendment of Minister of Finance Regulation No. 75/ PMK.011/2012 regarding the Stipulation of Export Goods Subject to Export Duties and Export Duty Rates. This Regulation came into effect seven days after its stipulation, i.e., on August 1, Minister of Finance Regulation No. 205/PMK.011/2014, dated October 17, 2014, regarding the Amendment of Minister of Finance Regulation No. 179/PMK.011/2012 regarding Duty Rates for Tobacco Products. This Regulation stipulates an increase in the duty rates for tobacco products. It also stipulates (i) limitations on tobacco production, (ii) the minimum retail price for tobacco products and (iii) duty rates as well as the minimum retail price for imported tobacco products. This Regulation came into force on the date of its issuance. Directorate General of Duty and Excise Regulation No. PER-32/BC/2014, dated September 11, 2014, regarding Customs Procedures for Exports. The Regulation replaces Directorate General of Duty and Excise Regulation No. P-40/BC/2008. It was issued to improve customs service and supervision for export activities. It contains provisions regarding goods that are subject to export notification, examination by the Customs Office of export documents and goods prior to the issuance of an export clearance note, the loading of export goods, and the procedures and requirements for canceling an export. This Regulation came into force on September 12, energy and mineral resources Directorate General of Coal and Mineral Regulation No. 714.K/30/DJB/2014, dated August 12, 2014, regarding Procedures and Requirements for Granting Recommendation for Registered Coal Exporters. Under this Regulation, several types of mining license ( IUP ) holders are permitted to sell coal abroad after they have obtained acknowledgement as a Registered Coal Exporter from the Directorate General of Overseas Trading and the Minister of Trade. This Regulation sets out the requirements that must be followed during the application to the Directorate General to obtain a recommendation as a Registered Coal Exporter. The acknowledgement of a mining company as a Registered Coal Exporter is valid for three years, with annual evaluations by the Directorate General. This Regulation came into force on August 12, finance Minister of Finance Regulation No. 190/PMK.05/2014, dated October 1, 2014, regarding Procedure for Guarantee of Micro-Credit Program (IJP-KUR). Pursuant to this Regulation, the IJP-KUR is a Government subsidy and shall be allocated in the State Budget. The IJP-KUR shall be provided for entities that guarantee micro-credit programs. The amount of the IJP-KUR itself shall be determined by the Minister of Finance. This Regulation came into force on the date of its issuance. SSEK legal alert 4

5 financial services authority Financial Services Authority ( OJK ) Regulation No. 10/POJK.05/2014, dated August 28, 2014, regarding Assessment of Risk Level of Non-Bank Financial Institutions. This Regulation sets out guidelines for commercial and share-based non-bank financial institutions to carry out mandatory risk assessment. Pursuant to this Regulation, the risk assessment must be performed at least once a year, although the OJK may also request ad-hoc assessments. The Regulation provides a measurable risk assessment point scheme for the included risk levels therein. Further, the financial institutions must report the results of their risk assessments to the OJK. This Circular Letter came into force on August 28, Financial Services Authority ( OJK ) Regulation No. 11/POJK.05/2014, dated August 28, 2014, regarding the Direct Examination of Non-Bank Financial Institutions. This Regulation establishes a guideline for the OJK to acquire information on the condition, risk level and regulatory compliance of financial institutions. By virtue of this Regulation, the OJK has broad authority to directly search, collect, analyze and evaluate data or information on the business activities of financial institutions. This Circular Letter came into force on August 28, Financial Services Authority ( OJK ) Regulation No. 11/POJK.05/2014, dated August 28, 2014, regarding the Direct Examination of Non-Bank Financial Institutions. This Regulation establishes a guideline for the OJK to acquire information on the condition, risk level and regulatory compliance of financial institutions. By virtue of this Regulation, the OJK has broad authority to directly search, collect, analyze and evaluate data or information on the business activities of financial institutions. This Circular Letter came into force on August 28, Financial Services Authority ( OJK ) Circular Letter No. 13/SEOJK.07/2014, dated August 20, 2014, regarding Standard Contract. This Circular Letter regulates the matter of standard contracts for financial service entrepreneurs. It stipulates the content, form as well as the preparation of standard contracts. This Circular Letter sets out the clauses to be incorporated and clauses that are prohibited to be incorporated in a standard contract. This Circular Letter came into force on August 20, Financial Services Authority ( OJK ) Circular Letter No. 14/SEOJK.07/2014, dated August 20, 2014, regarding Confidentiality and Security of Consumer Personal Data and/or Information. This Circular Letter implements OJK Regulation No. 1/ POJK.07/2013 regarding Consumer Protection for the Financial Service Sector. This Circular Letter establishes obligations and prohibitions for financial service entrepreneurs for the handling of consumers personal data. By this Circular Letter, financial service entrepreneurs must have a written policy and procedures for the utilization of consumers personal data. This Circular Letter came into force on August 20, 2014 forestry Minister of Forestry Regulation No. P.43/Menhut-II/2014, dated June 27, 2014, regarding the Evaluation of Sustainable Production Forest Management and Timber Legality Verification for Holders of Forest License and Rights. This Regulation provides that the Independent Appraisal and Verification Institution will evaluate sustainable production forest management practices and the Sustainable Production Forest SSEK legal alert 5

6 Management Appraisal Institution will evaluate the holders of Wood Product Primary Industry Business License (IUPHHK) and the holders of Management Title. Holders of IUPHHK and Management Title must obtain a Sustainable Production Forest Management Certificate. This Regulation came into effect on the date of its issuance. Minister of Forestry Regulation No. P.62/MENHUT-II/2014, dated on September 8, 2014, regarding Timber Utilization Permit or IPK. This Regulation provides the requirements and authority to grant such IPK. According to this Regulation, the IPK is granted for forestry areas that include Other Designated Purpose Areas (Areal Penggunaan Lain or APL ), forestry areas acquired through a borrow-use permit scheme, Convertible Production Forest Areas (Hutan Produksi yang Dapat Dikonversi) and Exchanged Forest Areas (Tukar Menukar Kawasan Hutan). The procedures to secure such IPK depend on the type of forest area. Under this Regulation, the IPK is valid for one year and can be extended once. This Regulation came into effect on the date of its issuance. Minister of Forestry Regulation No. P.76/MENHUT-II/2014, dated on September 26, 2014, regarding Stipulation of Forestry Utilization Fee. According to this Regulation, any Forest Utilization Business License Holder must pay a Forestry Utilization Fee, which amount is determined in accordance with the location and type of such utilized forest. For example, the fee for a timber forest located in Sumatra, Sulawesi or Papua is Rp 3, per hectare and shall be paid annually. This Regulation has been in force since its issuance. Minister of Forestry Decree No. SK.3706/Menhut-VII/IPSDH/2014, dated May 13, 2014, regarding the Stipulation of Indicative Map for the Suspension of the Granting of New Licenses for Forest Utilization, Forest Area Use and the Change of Forest Area Designation and other Uses (Revision VI). The suspension of new licenses includes the wood forest product utilization business license, wood forest product collection license, forest area utilization license and forest area designation change. This Decree revokes Minister of Forestry Decree No. SK.6018/Menhut-VII/IPSDH/2013. It came into effect on May 13, industry Minister of Industry Regulation No.80/M-IND/PER/9/2014, dated September 24, 2014, regarding the Motor Vehicle Industry. This Regulation governs the motor vehicle industry in Indonesia, which shall be classified as follows: (i) motor vehicle components industry, (ii) four or more wheels motor vehicle body industry, (iii) four or more wheels motor vehicle industry, (iv) special-aim motor vehicle industry and (v) motorcycle with two or three wheels industry. It revokes Minister of Industry Regulation No.59/M-IND/ PER/5/2010 regarding the same. This Regulation comes into force six months after the date of its issuance, i.e., March 24, Minister of Industry Regulation No.81/M-IND/PER/10/2014, dated October 7, 2014, regarding Amendment of Minister of Industry Regulation No.41/M-IND/ PER/6/2008 regarding the Provision and Procedure for Granting Industrial Business License, Expansion License and Industrial Registration Mark. Pursuant to this Regulation the licensing process shall not be charged whatsoever. This Regulation amends the documents required for the application for Principle License. This Regulation came into force on the date of its issuance. SSEK legal alert 6

7 maritime and fisheries Minister of Maritime Affairs and Fisheries Regulation No. 41/PERMEN-KP/2014, dated September 23, 2014, regarding Ban on the Importation of Dangerous Fish from Abroad to the Republic of Indonesia. The Regulation was issued to protect Indonesia s fishing industry by preventing the introduction of potentially harmful foreign fish species to Indonesia. This Regulation provides the types of fish that are banned from being imported into Indonesia. However, it contains exemptions for importations for the purpose of science, research and/or demonstrations. Such exemptions shall be implemented based on approval from the relevant minister after technical considerations by the Directorate General. This Regulation came into force on the date of its issuance. Minister of Maritime Affairs and Fisheries Regulation No. 45/PERMEN-KP/2014, dated October 10, 2014, regarding Seaworthy Certificate for Fishing Vessels. This Regulation was issued as guidance for fisheries inspectors, captains, vessel owners, fishing vessel operators and parties in charge of fishing companies in obtaining a Fishing Vessel Operation Seaworthy Certificate or SLO. This Regulation provides the administrative and technical requirements to obtain an SLO. This Regulation came into force on the date of its issuance. public works Minister of Public Works Regulation No. 07/PRT/M/2014, dated September 2, 2014, regarding the Second Amendment of Minister of Public Works Regulation No. 07/ PRT/M/2011 regarding Standards and Guidelines for the Procurement of Construction Work and Consultation Services. This Regulation amends the definition of provider of goods/services as set out by the previous regulation to be defined as the business entity or individual that provides construction work or construction consultation work. This Regulation also amends the provision on the use of a construction work guarantee letter and the provision on the stipulation of the winner of a work package. This Regulation came into force on the date of its issuance. tax Minister of Finance Regulation No. 146/PMK.04/2014, dated July 14, 2014, regarding the Amendment of Minister of Finance Regulation No. 214/PMK.04/2008 regarding the Imposition of Export Duty. This Regulation introduces several changes, including: (i) the inclusion of paragraph (1a) in Article 6, which provides that the notification of export customs shall be submitted by the exporter or its attorney to the loading customs office at the earliest seven days prior to the Export Estimation Date and at the latest prior to the entry of the goods to the customs loading area; (ii) the inclusion of paragraph (1b) in Article 6, which provides that the export customs notification for bulk goods exports may be submitted prior to the departure of the transporting vehicles; (iii) the amendment of Article 34, which provides that provisions regarding (a) procedures for the amendment of errors in export custom notifications, (b) procedures for the physical examination of export goods subject to export duties, (c) the stipulation of customs officials, (d) the re-stipulation by the Director General, (e) the suspension of payment for export duty payment invoice and/or fines, (f) service and supervision mechanisms for export goods exempted from export duties, (g) collections, returns, objections and appeals, and (h) certain provisions in the framework of time extension for the Export Estimation Date, shall be governed by Director General regulations. This Regulation came into effect 60 days after its issuance, i.e., September 12, SSEK legal alert 7

8 Minister of Finance Regulation No. 149/PMK.011/2014, dated July 15, 2014, regarding Income Tax Borne by the Government for Interest or Returns for State Negotiable Paper Issued in International Markets and Third-Party Income for Services Rendered to the Government in the Issuance and/or Repurchase/Exchange of State Negotiable Paper in International Markets for the Budgetary Year of This Regulation is valid starting from January 1, 2014 until December 31, Minister of Finance Regulation No. 191/PMK.03/2014, dated October 2, 2014, regarding the Fourth Amendment of Minister of Finance Regulation No. 16/PMK.03/2013 regarding the Specification of Data and Information and Procedures for the Delivery of Taxation Data and Information. This Regulation amends the required data and information to be submitted by government institutions, entities, associations and other parties. This Regulation came into force on the date of its issuance. Minister of Finance Regulation No. 192/PMK.011/2014, dated October 6, 2014, regarding the Amendment of Minister of Finance Regulation No. 130/PMK.011/2011 regarding Exemption or Reduction Facility for Individual Income Tax. This Regulation amends the deadline to file for an exemption or reduction facility for individual income tax from August 15, 2014, to August 15, This Regulation came into force on the date of its issuance. Governor of DKI Jakarta Regulation No. 100 of 2014, dated June 24, 2014, regarding Procedure for Submitting, Conditions, Suspension and Payment in Installment of Tax Payment. This Regulation stipulates the procedures for taxpayers to submit an application to pay certain taxes in installments or to suspend the payment for fuel tax, hotel tax, entertainment tax, parking tax, restaurant tax, underground water tax and land and building tax. This Regulation came into force on the date of its issuance. Governor of DKI Regulation Jakarta No. 141 of 2014, dated September 22, 2014, regarding Reduction of Urban and Rural Land and Building Tax (PBB-P2) for Golf Courses. Under this Regulation, the PBB-P2 reduction for golf courses shall not exceed 50 percent from the principal of the due PBB-P2. This Regulation came into force on the date of its issuance. telecommunications Minister of Communications and Informatics Regulation No. 30 of 2014, dated September 10, 2014, regarding the Management of 800 MHz Radio Frequency Band for Cellular Mobile Network Operators. Pursuant to this Regulation, the use of the 800 MHz band shall be on a neutral technology basis with national coverage. This means it is now possible for non-cdma operators such as GSM and LTE operators to use this band. It also requires a migration of CDMA operators to a national scope with a migration deadline of December 14, This deadline may be extended for one year with prior approval of the Minister of Communications and Informatics. This Regulation came into force on the date of its issuance. SSEK legal alert 8

9 Minister of Communications and Informatics Regulation No. 31 of 2014, dated September 22, 2014, regarding Radio Frequency Master Plan for Special Telecommunication Operation for Analog TV on Ultra High Frequency (UHF) Band. This Regulation stipulates the technical requirements for all television broadcasts on UHF band. It also decides the allotment of frequencies for such broadcasts. This Regulation came into force on the date of its issuance. Minister of Communications and Informatics Regulation No. 32 of 2014, dated September 22, 201, regarding Requirements and Procedures to Grant Postal Operating License. Pursuant to this Regulation, a business entity may provide either commercial, universal or non-commercial postal services. The difference between commercial and universal postal services is in the Government s guarantee. Universal postal services are guaranteed by the Government to cover all areas of Indonesia. Non-commercial postal services can be carried out for military offices or other central/regional government offices. This Regulation came into force on the date of its issuance. Minister of Communications and Informatics Regulation No. 34 of 2014, dated September 24, 2014, regarding Service Quality Standards for Satellite Mobile Network Operators and Basic Telephony Services through Satellite Operators. This Regulation stipulates service quality standards for the operators of satellite mobile networks and operators of basic telephony services through satellite. Pursuant to this Regulation, such operators shall enter into a Service Level Agreement with their respective interconnecting network operators to guarantee their compliance with this Regulation. This Regulation also requires a 24-hours website and call center to provide first line support and retain the recording of all users complaints for at least one year. This Regulation comes into effect on January 1, Minister of Communications and Informatics Regulation No. 36 of 2014, dated September 30, 2014, regarding Registration Procedure for Electronic System Operators. As an implementing regulation of Government Regulation No. 82 of 2012 regarding Operation of Electronic Systems and Transactions, this Regulation clarifies some provisions on the registration of electronic system operators. The most important is the clarification on the scope of public services operators, which mainly includes government institutions and state/regionally-owned enterprises (BUMN/BUMD). Consistent with the Government Regulation, this Regulation imposes a registration obligation on electronic system operators for public services. Registration is optional for non-public service operators. This Regulation came into force on the date of its issuance. Minister of Communications and Informatics Regulation No. 38 of 2014, dated October 8, 2014, regarding the Amendment of Minister of Communications and Informatics Regulation No. 01/PER/M.KOMINFO/01/2010 regarding Telecommunications Network Operations. This Regulation adds network operators that use area codes, such as CDMA providers, as limited operators in addition to those operators that use radio frequencies and network access codes as previously regulated. It also adds an annual evaluation obligation for all network operators, in addition to the full evaluation to be done every five years. This Regulation came into force on the date of its issuance. tourism Minister of Tourism and Creative Economy Regulation No. 7 of 2014, dated July 8, 2014, regarding the Amendment of Minister of Tourism and Creative Economy Regulation No. 1 of 2014 regarding the Implementation of Tourism Business Certificate. This Regulation amends the attachment of Minister of Tourism and Creative Economy Regulation No. 1 of The Regulation came into effect on the date of its issuance. SSEK legal alert 9

10 trade Minister of Trade Regulation No. 56/M-DAG/PER/9/2014, dated September 17, 2014, regarding the Amendment of Minister of Trade Regulation No. 70/M-DAG/ PER/12/2013 on Guidelines for Establishing and Developing Traditional Markets, Shopping Centers and Modern Stores. This amendment was issued to prepare for the upcoming ASEAN regional market integration and is expected to enhance business certainty and market access. It amends guidelines and definitions for traditional markets and modern stores, the requirement to sell beyond the 10 percent supplementary goods threshold, the waiver to sell a store s private brands beyond the 15 percent threshold, the mandatory 80 percent local products and the 150-outlet limit. The amendment was stipulated on September 17, The Regulation came into effect on September 17, Minister of Trade Regulation No. 57/M-DAG/PER/9/2014, dated September 17, 2014, regarding the Amendment of Minister of Trade Regulation No. 53/M-DAG/ PER/8/2012 on Organizing Franchise Business. The changes stipulated under this Regulation concern the procedures to secure a Certificate of Franchise Registration or Surat Tanda Pendaftaran Waralaba. Applicants must now submit an additional supporting document, namely the Master Franchise Agreement, between the prospective franchisor and franchisee. The previous Regulation did not require the Master Franchise Agreement to be submitted as a supporting document. This Regulation came into force on the date of its issuance. transportation Minister of Transportation Regulation No. PM 23 of 2014, dated July 1, 2014, regarding the Amendment of Minister of Transportation Regulation No. KM 01 of 2010 regarding Procedures for the Issuance of Port Clearance. Under this Regulation, the harbormaster function shall be implemented by (a) the Head of the Main Harbormaster Office, (b) the Head of the Harbormaster Office and Port Authority, (c) the Head of the Port Implementer Unit Office and (d) the Head of the Batam Port Office. This Regulation came into effect on the date of its issuance. Minister of Transportation Regulation No. PM 44 of 2014, dated September 16, 2014, regarding the Second Amendment of Minister of Transportation Regulation No. KM 38 of 2001 regarding Civil Aviation Safety Regulation Part 25 on Airworthiness Standards for Transport Category Aircraft. This Regulation was issued to comply with the regulation of the International Civil Aviation Organization (Annex 8). This Regulation came into effect on the date of its issuance. Minister of Transportation Regulation No. PM 45 of 2014, dated September 16, 2014, regarding the Amendment of Minister of Transportation Regulation No. KM 25 of 2001 regarding Civil Aviation Safety Regulation Part 23 on Airworthiness Standards for Normal, Utility, Acrobatic and Commuter Category Aircraft. This Regulation was issued to comply with the regulation of the International Civil Aviation Organization (Annex 8). This Regulation came into effect on the date of its issuance. SSEK legal alert 10

11 Minister of Transportation Regulation No. PM 46 of 2014, dated September 26, 2014, regarding Minimum Service Standards for Passenger Transportation by Non-Route Public Motor Vehicles. This Regulation covers minimum service standards for non-route passenger transportation such as shuttles, charters and taxis. This Regulation came into effect on the date of its issuance. Minister of Transportation Regulation No. PM 50 of 2014, dated October 1, 2014, regarding Civil Aviation Safety Regulation Part 39 on Airworthiness Directive. The Directorate General of Air Transportation shall issue an Airworthiness Directive when it finds any unsafe conditions involving aircraft or equipment. This Regulation further explains the requirements for the Airworthiness Directive and revokes Minister of Transportation Regulation No. KM 2 of 2006 regarding the same. This Regulation came into effect on the date of its issuance. Minister of Transportation Regulation No. PM 51 of 2014, dated October 1, 2014, regarding the Calculation of Maximum Rates for Economy-Class Passengers on Scheduled Domestic Air Transportation. Pursuant to this Regulation, the rates for economy-class passengers on scheduled domestic air transportation shall be calculated based on miles (to be decided by the Minister of Transportation), value-added tax, obligatory insurance and surcharge. Surcharge can only be imposed when (i) the fuel price is more than Rp 12,000 per litter or (ii) there is at least 10 percent inflation or price change for any other rate component for three successive months. This Regulation came into effect on the date of its issuance. SSEK legal alert 11