Ministers Sign 12 Regulation of Economic Policy Package

As many as twelve regulations, including 11 drafts of government regulations (RPP) and one draft of presidential regulations (RPerpres) were signed by a  number of ministers in a coordination meeting on Tuesday (22/9) at the office of the Coordinating Ministry for the Economy and ready to be enacted.

The twelve regulations are parts of the Economic Policies Package announced by President Joko Widodo on 9 September 2015.

There were originally 15 regulations ready to be signed by ministers. However, when they were discussed in the coordination meeting, the ministers agreed to postpone the signing process because there are several issues that must be discussed first.

“It will be finished next week and still can be sent after,” Coordinating Minister for Economy Darmin Nasution said.

The coordination meeting was attended by Minister of State Secretary Pratikno, Minister of Finance Bambang Brodjonegoro, Minister of Public Works and Public Housing Basuki Hadimuljono, Minister of Agrarian and Spatial Planning/Head of National Land Agency Ferry Mursyidan Baldan, and Minister of Industry Saleh Husin.

Besides Coordinating Minister for Economy, 12 regulations which will be effective soon need signs from several other ministers before the President signs them.

The ministers related to the 12 regulations are Finance Minister, Energy and Mineral Resources (ESDM) Minister, Agrarian and Spatial Planning Minister/National Land Agency Head, Environment and Forestry Minister, Public Works and Public Housing Minister, State-owned Enterprises (BUMN) Minister, Industry Minister, Trade Minister, Justice and Human Rights Minister, Transportation Minister, and Maritime Affairs and Fisheries Minister.

One of the RPPs to be enacted is drafts of Government Regulations on the Fourth Amendment of the Government Regulation No 23 of 2010 on Implementation of Mineral and Coal Mining Business Activities.

In the previous Government Regulation, there are rules regarding periode of time of applications for extensions of the Production Operation Mining Business Permit (IUP OP) and Production Operation Special Mining Permits (IUPK OP) that shall be submitted to the Minister no earlier than 2 (two) years and at the latest 6 (six) months prior to expiration of the permits. The short time causes business uncertainty for investors in mining sector.

In the new RPP, applications for operational extensions can be applied no earlier than 10 (ten) years prior to expiration of the permits. The approval of applications for extensions of the Production Operation Mining Business Permit (IUP OP)  and Production Operation Special Mining Permits (IUPK OP) shall be granted for a period not exceeding 120 (one hundred and twenty) working days. If a decision has not been reached at the period of time, related sides shall be deemed to have accept the extension applications.

The new RPP in mining sector is about to provide more business certainity for investors to level up the activities, from exploration to production or production expansion in Mining Permit Companies, Contracts of Work, Coal Contracts of Work.

The 12 regulations are:

1. Draft of Government Regulation on the Amendment to Government Regulation No 32 of 2009 on Bonded Hoarding Place

2. Draft of Government Regulation on Imposition Value Added Tax (VAT) on the Transfer of Certain Port Services for Ships Conducting Overseas Freight

3. Draft of Government Regulation on Import and/or Delivery of Strategic Goods Subject to Certain Taxes Exempted from VAT

4. Draft of Government Regulation on Import and Delivery of Services Subject to Tax on Certain Means of Transport that are Free of VAT, for Incentives, VAT is not Levied for Specific Means of Transport (ships, trains, planes)

5. Draft of Government Regulation on the merger of PT. Reasuransi Umum Indonesia to PT  Reasuransi Indonesia Utama (Persero)

6. Draft of Government Regulation on the Fourth Amendment to Government Regulation No 23 of 2010 on Implementation of Mineral and Coal Mining Business Activities

7. Draft of Presidential Regulation on Supply, Distribution, and Pricing Liquefied Petroleum Gas (LPG) for Fishing Boats for Small Fishers

8. Draft of Government Regulation on the Second Amendment to Government Regulation No 10 of 2010 on the Procedures for Changes in Forest Area Allocation and Function

9. Draft of Government Regulation on the Second Amendment to Government Regulation No 24 of 2010 on Forest Area Utilization

10. Draft of Government Regulation on Water Resources Exploitation

11. Draft of Government Regulation on Water Supply System

12. Draft of Government Regulation on Public Corporation (Perum) “Pembangunan Perumahan National” (National Housing Development)

Meanwhile, three regulations which still need further studies, particularly from technical ministries are:

1. Draft of Presidential Regulation on the Amendment of Presidential Regulation No 64 of 2012 on Supply, Distribution and Pricing of Gas for Transport

2. Draft of Government Regulation on the Amendment of Government Regulation No 41 of 1996 on House Ownership or Residence by Foreigners Domiciled in Indonesia

3. Draft of Government Regulation on the Amendment of Government Regulation No 37 of 1998 on the Position of Conveyancer. (Humas Kemenko Perekonomian/ES)                                            (RAS/EP/YM-Naster/Sy)