INDONESIA SIMPLIFIES THE HIRING OF FOREIGN MANPOWER

On 29 March 2018, President Joko Widodo issued Presidential Regulation Number 20 of 2018 on Foreign Manpower Utilization (“Presidential Reg 20/2018”). Presidential Reg 20/2018 aims to support the national economy and the expansion of employment opportunities through increased foreign investment and is part of President Joko Widodo’s current economic reform process.

NEW COAL PRICE CAP FOR POWER GENERATION

Recently, the Minister of Energy and Mineral Resources (“MEMR”) issued 2 (two) decrees on the price of coal, MEMR Decree No. 1395 K/30/MEM/2018 dated 9 March 2018 on The Coal Price for Power Generation for the Public Interest (“MEMR 1395/2018”) later amended by MEMR Decree No. 1410 K/30/MEM/2018 dated 12 March 2018 (“MEMR 1410/2018”) as an implementation of Government Regulation No. 8 of 2018 (“GR 8/2018”) and MEMR Regulation No. 19 of 2018 (“MEMR 19/2018”) which provides a legal basis for setting the maximum price for coal used for the generation of electric power for the public interest. In short, MEMR 1395/2018 and MEMR 1410/2018 are intended to address the risk of coal price fluctuations due to the recent increase in the market price for coal for the electric power industry for the public interest by determining the sale price of coal for generating electric power for the public interest as part of the domestic market obligation (“DMO”).

INDONESIA INTRODUCES KNOW-YOUR-BENEFICIAL OWNER PRINCIPLE FOR CORPORATIONS

In an attempt to prevent and eradicate activities related to money laundering and/or terrorism financing through corporations, the government has issued Presidential Regulation No. 13 of 2018 regarding the application of the Know-Your-Beneficial-Owner Principle by Corporations for the Prevention and Eradication of the Criminal Acts of Money Laundering and Terrorism Financing (“PR 13/2018”).

MEMR REGULATIONS SIMPLIFIED TO IMPROVE BUSINESS AND INVESTMENT GROWTH

On 5 March 2018, the Ministry of Energy and Mineral resources ("MEMR") issued Press Release No. 00022/04/SJI/2018 to continue arranging dozens of overlapping regulations and permits ("Simplification"). So far, 90 regulations and 96 certifications/recommendation/permits ("Regulations") have been revoked. The series of revocations of regulations in the MEMR sector have started since 22 January 2018.

NEW REGULATION ON CAPITAL INVESTMENT LICENSING AND FACILITIES

The Investment Coordinating Board (Badan Koordinasi Penanaman Modal/”BKPM”) issued two new sets of regulations on investment, i.e. Regulation No. 13 of 2017 on The Guidelines and Procedure for Capital Investment Licensing and Facilities (“Reg 13/2017”) and Regulation No. 14 of 2017 on The Guidelines and Procedure for Capital Investment Supervision (“Reg 14/2017”).