From January to June 2020, reportedly, petitions for Suspension of Debt Payment Obligation (“PKPU”) have rapidly increased. The Case Tracking Information System (“SIPP”) of 5 commercial courts in Jakarta, Medan, Semarang, Surabaya, and Makassar has recorded 249 PKPU cases, an increase of 52,76% compared to the previous year with only 163 cases.
Given the importance of cash flow at this time, on April 27, 2020, the Indonesian Ministry of Finance issued regulation No.44/PMK.03/2020 of 2020 on Taxation Incentives for Taxpayers Affected by the Coronavirus Pandemic (“MOF Regulation 44/2020”).
Law No. 3 of 2020 concerning amendments to Law No. 4 of 2009 (“the New Mining Law”) has majorly revised various provisions of the Mining Law.
In the Indonesian judiciary, the Constitutional Court (Mahkamah Konstitusi) and the Supreme Court (Mahkamah Agung) are two separate judicial bodies that have different functions and powers. These courts have the authority to conduct judicial review.
The Indonesian government has issued Government Regulation (PP) Number 25 of 2020 concerning the Public Housing Savings (‘Tabungan Perumahan Rakyat/Tapera) program as an implementation of Law No 4 of 2016. This mandatory arrangement, which is mainly intended to provide housing financing for low-income participants, is a periodic deposit savings scheme used as the basis for housing financing requests.
There are many challenges in implementing the Mining Law and other regulations related to mining activities, particularly in disputes of ownership of shares in companies, overlaps of mining area, sale and purchase of mining commodities, mining service contracts, and investment failures.
The Government of Indonesia has issued regulations related to the obligation to use national vessels for certain commodity export and import activities. The obligation is regulated under Regulation of the Minister of Trade No. 82 of 2017
The Mining Law has not yet resolved legal issues related to licensing, processing and/or refining, protection the affected community, and sanctions. Therefore, on 12 May 2020, the House of Representative (Dewan Perwakilan Rakyat “DPR”) passed the Bill of the Mining Law. As of 10th June 2020, this Mining Bill has been signed by President Joko Widodo and passed into the New Mining Law (Law no. 3 of 2020).
The Ministry of Energy and Mineral Resources has issued new regulations related to licensing of mineral and coal business activities. It is Ministerial Regulation No. 7 of 2020 on Procedures for Area Granting, Licensing, and Reporting on Mineral and Coal Mining Business Activities (“MR 7/2020”).
In an effort to maintain economic stability as a result of Covid-19, the government of the Republic of Indonesia through the Minister of Finance of the Republic of Indonesia has issued regulations regarding incentives for Taxpayers during the Covid-19 pandemic.