Omnibus law and its implementing regulations

0



On February 2, 2021, the Indonesian government promulgated 49 regulations implementing the Omnibus Law1. These are 45 government regulations and four presidential regulations. The Omnibus Law amends 76 laws in a wide range of sectors and industries, including laws on energy and mining, plantations, telecommunications, health care, tourism, land and buildings and employment.

The Omnibus Law was first introduced during President Widodo’s speech after being appointed President of the Republic of Indonesia for a second term in October 2019. It is the first time in the country’s legal history that Equally important changes are made to various laws through a single legal instrument.

The Omnibus law has received a positive response from investors as it claims to open more doors for foreign investment and introduce employment provisions that are considered more favorable to business owners. Almost 1,200 pages long, the omnibus law left a series of crucial questions to be addressed by implementing regulations. For example, the Omnibus Law promises that all business activities will be open for investment, except those activities indicated otherwise, and listing below six groups of business activities (however, the publication of Presidential Regulation No. 10 of 2021 shows that there are other business activities subject to other limitations). The Omnibus law also leaves a gap in the calculation of severance pay in the event of termination of employment. As such, the recently released set of implementing regulations have been eagerly awaited by market participants.

The implementing regulations are intended to flesh out the new regimes introduced by the Omnibus Law. In the coming weeks, we will analyze on a series of customer alerts the main issues arising from implementing regulations that affect investments in key sectors (e.g. mining, telecommunications, healthcare). Among other things, we will discuss the implications of the implementing regulations on the “Positive List of Investments” as well as the new provisions relating to employment and severance pay.

Please contact us if you would like to understand how the Omnibus Law and related regulations may affect your business.

Annex – List of implementing regulations

  1. Government Regulation No. 5 of 2021 on the implementation of risk-based business licenses.
  2. Government Regulation No. 6 of 2021 on the regional implementation of business licenses.
  3. Government Regulation No. 7 of 2021 on the convenience, protection and empowerment of cooperatives and micro, small and medium enterprises.
  4. Government Regulation No. 8 of 2021 on the authorized capital of the company and the registration of the establishment, modification and dissolution of companies that meet the criteria for micro and small enterprises.
  5. Government Regulation No. 9 of 2021 on Tax Treatment to Facilitate the Practice of Business.
  6. Government Regulation No.10 of 2021 on Local Taxes and Levies in Support of Ease of Doing Business and Regional Services.
  7. Government Regulation No. 11 of 2021 on village public enterprises.
  8. Government Regulation No. 12 of 2021 amending Government Regulation No. 14 of 2016 on the implementation of housing and settlement areas.
  9. Government Regulation No. 13 of 2021 on the implementation of apartments (Rumah Susun).
  10. Government Regulation No. 14 of 2021 Amending Government Regulation No. 22 of 2020 on the Implementation Regulation of Law No. 2 of 2017 on Construction Services.
  11. Government Regulation No. 15 of 2021 on the Implementing Regulation of Law No. 6 of 2017 on the Architect.
  12. Government Regulation No. 16 of 2021 on Implementing Regulations for Law No. 28 of 2002 on Buildings.
  13. Government Regulation No. 17 of 2021 on the Fourth Amendment to Government Regulation No. 15 of 2005 on Toll Roads.
  14. Government Regulation No. 18 of 2021 on Management Rights, Land Rights, Apartments and Land Registration.
  15. Government Regulation No. 19 of 2021 on the Implementation of Land Acquisition for Development of Public Interest.
  16. Government Regulation No. 20 of 2021 on the control of neglected areas and lands.
  17. Government Regulation No. 21 of 2021 on spatial planning.
  18. Government Regulation No. 22 of 2021 on the protection and management of the environment.
  19. Government Regulation No. 23 of 2021 on Forestry.
  20. Government Regulation No. 24 of 2021 on Procedures for Imposing Administrative Sanctions and Procedures for Non-Tax Government Revenue from Administrative Fines in the Forestry Sector.
  21. Government Regulation No. 25 of 2021 on Energy and Mineral Resources.
  22. Government Regulation No.26 of 2021 on Agriculture.
  23. Government Regulation No. 27 of 2021 on Maritime Affairs and Fisheries.
  24. Government Regulation No. 28 of 2021 on the industry.
  25. Government Regulation No.29 of 2021 on Commerce.
  26. Government Regulation No. 30 of 2021 on traffic and road transport.
  27. Government Regulation No. 31 of 2021 on navigation.
  28. Government Aviation Regulation No. 32 of 2021.
  29. Government Regulation No. 33 of 2021 on railways.
  30. Government Regulation No. 34 of 2021 on the use of foreign workers.
  31. Government Regulation No. 35 of 2021 on Fixed-Term Employment Contracts, Transfer, Working Time, Labor Relations and Rest Time, and Termination of Employment.
  32. Government Regulation No. 36 of 2021 on remuneration.
  33. Government Regulation No. 37 of 2021 on the Implementation of the Job Loss Protection Program.
  34. Government Regulation No. 38 of 2021 on Hajj Pilgrimage Travel Expense Accumulation Account.
  35. Government Regulation No. 39 of 2021 on the implementation of the guarantee of halal products.
  36. Government Regulation No. 40 of 2021 on the implementation of special economic zones.
  37. Government Regulation No. 41 of 2021 on the implementation of the free zone and the free port.
  38. Government Regulation No. 42 of 2021 on the Facility of National Strategic Projects.
  39. Government Regulation No. 43 of 2021 on resolving inconsistencies in spatial arrangement, forest area, permits and / or land rights.
  40. Government Regulation No. 44 of 2021 on the Implementation of the Prohibition of Monopoly Practices and Unfair Business Competition.
  41. Government Regulation No. 45 of 2021 on the Administration of Geospatial Information.
  42. Government Regulation No. 46 of 2021 on Posts, Telecommunications and Broadcasting.
  43. Government Regulation No. 47 of 2021 on hospital administration.
  44. Government Regulation No. 48 of 2021 on the Third Amendment to Government Regulation No. 31 of 2013 on the Implementing Regulation of Immigration Law No. 6 of 2011.
  45. Government Regulation No. 49 of 2021 on the tax treatment of transactions involving investment management institutions and / or entities owned by it.
  46. Presidential Regulation No. 9 of 2021 on the Agency for the Acceleration of Housing Management.
  47. Presidential Regulation No. 10 of 2021 on the field of investments.
  48. Presidential Regulation No. 11 of 2021 on Cooperation between Central Government and State-Owned Enterprises for the Provision of Basic Geospatial Information.
  49. Presidential Regulation No. 12 of 2021 amending Presidential Regulation No. 16 of 2018 on public procurement of goods / services.



Share.

About Author

Leave A Reply