
Updated Provisions on Electrical Charging Infrastructure for Battery-based Electric Vehicles in Indonesia
To accelerate the battery-powered electric motorized vehicles (“Electric Vehicles”) program and the provision of charging infrastructure, the Minister of Energy and Mineral Resources has issued Regulation No. 1 of 2023 on the Provision of Electrical Charging Infrastructure for Battery-powered Electric Motorized Vehicles (“Regulation 1/2023”) as a fundamental regulation in Indonesia. Consequently, the previous legal…

Companies Shall Provide the THR No Later Than Seven Days Before Eid Al-Fitr 2023
The Religious Holiday Allowance or Tunjangan Hari Raya (THR) is a mandatory bonus payment for employees in Indonesia before religious holidays, such as Eid al-Fitr or Christmas. The payment is intended to help employees celebrate the holidays and cover their expenses during the festive season.

Are Non-solicitation and Non-competition Clauses in Employment Agreements Necessary in Indonesia?
There are clauses in employment agreements that are often included, namely confidentiality, non-solicitation and non-competition clauses. The purpose of these clauses is to avoid unfair competition and attempts to create competitors or having former employees take advantage of the company’s data, information and customers.

Ratification of the New Indonesia Criminal Law
On 2nd January 2023, the Indonesian Criminal Code was finally ratified into Law Number 1 of 2023 concerning regulation in Indonesia (“Law 1/2023”). The objective of enacting Law 1/2023 is to replace Law Number 1 of 1946 concerning Criminal Regulation (“Law 1/1946”), which was notable as the colonial Criminal Code. Article 622 Paragraph (1) of Law 1/2023 stipulates that after the Law 1/2023 comes into effect, Law 1/1946 shall be revoked. The ratification of Law 1/2023 marks the beginning of the transition to the new era of Indonesian criminal law.

Indonesia Customs and Excise Activity Guarantee Rules Change Starting in 2023
The government changed the provisions regarding guarantees in the context of customs and excise activities. Minister of Finance Sri Mulyani Indrawati issued Minister of Finance Regulation No. 168/PMK.04/2022 concerning Guarantees in the Context of Customs and Excise Activities (“PMK 168/2022”) regarding guarantees in the customs framework that took effect on January 1, 2023. This was done to improve services to the public and ensure legal certainty for the user in the field of customs and excise.

Setting Up a Foreign Investment Company in Indonesia with One Shareholder – Is it Possible
The Government Regulation in Lieu of Law Number 2 of 2022 on Job Creation has amended Law Number 40 of 2007 on Limited Liability Company (“Law 40/2007”). The amendment has introduced new provisions on the requirements for the establishment of a limited liability company, including the shareholders’ requirements. Before the amendment, Law 40/2007 stipulated that a limited liability company must be established by at least two shareholders. However, after the amendment, Article 7 jo. Article 153A (1) Law 40/2007 allows for the establishment of a company by only one shareholder, but only if the company…

Transfer Pricing Document (TP Doc) Regulation: Mandatory for Companies Involved in Affiliate Transaction in Indonesia
It is very common for a foreign investor to provide a capital loan to its subsidiary company in Indonesia. Pursuant to the tax issues on such transactions, Action Plan 13 has been implemented as a regulation in Indonesia. It is part of the Base Erosion and Profit Shifting (BEPS) Action Plans. In order to make investment to Indonesia easier, the Ministry of Finance has enacted Minister of Finance (PMK) Regulation Number 213/PMK.03 / 2016…

Provision Of Fraud Against Creditors Stipulated Under the New Indonesian Criminal Code
Frauds against creditors discussed in the new Indonesian Criminal Code are against a creditor who is facing bankruptcy. Before the enactment of Law No. 1 of 2023 on the Criminal Code (“New Criminal Code”) of law in Indonesia, the criminal provisions in bankruptcy have been stipulated in Law No. 1 of 1946 on Criminal Regulations (“Old Criminal Code”) of regulation in Indonesia. In the Old Criminal Code, the criminal provisions on bankruptcy are stipulated in Chapter XXVI under the title Acts Detrimental to Debtors or People Who Have Rights, whilst in the New Criminal Code, they are stipulated in Chapter XXVIII under the title Crime Against Confidence in Conducting a Business. The acts qualified as fraud in the New Criminal Code are still the same as stipulated in the Old Criminal Code.

Mining Downstream Policy in Indonesia
Indonesia is blessed with an abundance of natural resources in the form of mineral commodities such as copper, tin, nickel, bauxite, iron, etc. To maximize the state’s revenue, business actors are allowed to export these commodities and the Indonesian Government, through regulation in Indonesia, has consented to a downstream mining policy.

Mandatory Annual Mining Activity Report in Indonesia
Each and every company is required to tally up their business activity annually for the purpose conveying data and information about their company’s activities. Article 178 of Indonesian Government Regulation No. 96 of 2021 regarding Implementation of Mineral and Coal Mining Activities (“GR 96/2021”) states that the holder of a Mining Permit or Izin Usaha Pertambangan (IUP),..
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