Indonesia updates

Energy & Natural Resources

Contributed by Ali Budiardjo, Nugroho, Reksodiputro
MEMR moves quickly to limit application of coal price caps to new contracts
  • Indonesia
  • April 02 2018

Following the recent issuance of the ​Ministry of Energy and Mineral Resources decree which imposed price caps on coal supplied for power generation in the public interest, the coal industry was expected to undertake significant lobbying in order to reduce or limit the decree's impact. This anticipated lobbying appears to have commenced already, as the decree was amended on March 12 2018 after having been on the statute books for just four days.

Government caps prices of coal for power generation
  • Indonesia
  • March 26 2018

The government recently imposed caps on the prices payable for coal to be used for power generation in the public interest. The maximum price payable under the new Ministry of Energy and Mineral Resources decree is 30% less than the Indonesian benchmark price for equivalent coal sold for export in February 2018, which means that the country's coal producers will suffer a substantial cut to their profitability by selling coal for domestic power generation.

MEMR delivers on promise to revoke regulations
  • Indonesia
  • March 19 2018

The Ministry of Energy and Mineral Resources recently announced the revocation of 32 regulations in furtherance of the government's efforts to reduce the regulatory burden on the energy and mineral resources sector. However, it was unclear which of these regulations had been revoked before the announcement and which would be revoked in the future. This situation has now been clarified with the issuance of four new revoking regulations, which form part of what some have called a 'big-bang' reform.

MEMR announces easing of regulatory burden for new and renewable energy sector
  • Indonesia
  • March 05 2018

The Ministry of Energy and Mineral Resources recently announced the revocation of 32 regulations in the energy and mineral resources sector, three of which are of particular importance to independent power producers in the new and renewable power sub-sector. However, a subsequent examination revealed that most if not all of the regulations have yet to be revoked, and the lack of clarity in this regard has called the ministry's commitment to transparency into question.

Permit to establish foreign representative office in oil and gas sub-sector can now be obtained online
  • Indonesia
  • February 05 2018

The Indonesian Investment Coordinating Board recently issued the Regulation concerning Guidelines and Procedures for Investment Licensing and Facilities. As regards the oil and gas sub-sector, the regulation states that a permanent business entity may apply for a permit to establish a foreign representative office in the oil and gas sub-sector through the Electronic Investment Information and Licensing Services. Foreign representative office permits are valid for three years and are extendable.


Healthcare & Life Sciences

New regulation regarding pharmaceutical and medical devices industries pushes for more local content
  • Indonesia
  • May 10 2017

The minister of health recently issued the Regulation regarding Pharmaceutical and Medical Devices Industries Development Action Plans (17/2017). With the action plans, the government aims to establish, preserve and apply pharmaceutical product and medical device standards and increase the use of local pharmaceutical products and locally produced medical devices, among other things.


Projects & Procurement

Updated rules on granting government guarantees in infrastructure sector
  • Indonesia
  • February 20 2018

The Ministry of Finance has issued a regulation in order to implement provisions for the establishment of state-owned infrastructure guarantee corporations (BUPI). The regulation sets out more detailed provisions on government guarantees for infrastructure projects, as well as the nature, scope of and procedures governing such guarantees. A guarantee provided by a BUPI may cover infrastructure, political and default risks, among others.


White Collar Crime

Supreme Court issues guidance on handling corporate crimes
  • Indonesia
  • July 10 2017

The Supreme Court's enactment of the Regulation regarding the Manner and Procedure for the Handling of Crimes Committed by Corporations is a significant milestone in the development of Indonesia's corporate criminal liability legislation. The regulation aims to provide law enforcers with guidance on handling corporate crimes and strengthens and complements the existing regulations.