INDONESIA NEGATIVE INVESTMENT LIST 2016 (INDONESIA - ENGLISH)

Following our previous advisories. Please download our unofficial translation of the Presidential Regulation No. 44 of 2016 below.

LAW ON THE GUARANTEE BUSINESS

In an attempt to strengthen the legal basis of the guarantee business and to make sure that small-to-medium sized enterprises and cooperatives have access to credit, the Government of Indonesia on 15 January 2016 issued Law No. 1 of 2016 on Guarantees (“Guarantee Law”).

IMPORT IDENTIFICATION NUMBERS REGULATIONS

The Minister of Trade (“MOT”) Regulation No. 70/M-DAG/PER/9/2015 on Import Identification Numbers (“API”), issued in September 2015 (“MOT Reg 70/2015”), came into effect on 1 January 2016 and revoked the previous API regulation: MOT Regulation No. 27/M-DAG/PER/5/2012 as lastly amended by MOT Regulation No. 84/M-DAG/PER/5/2012.

FOREIGNERS TO HOLD PROPERTY IN INDONESIA

The rising number of foreigners working in Indonesia, as a consequence of the ASEAN Economic Community, has prompted the Indonesian Government to re-regulate the status of foreign ownership of property in Indonesia.

NEW GOVERNMENT REGULATION ON SALARIES

Twelve years after the issuance of Law No. 13 of 2003 on Manpower (“Manpower Law”), the Government of Indonesia finally issued its new regulation on Salaries, Government Regulation No. 78 of 2015 on Salaries (“GR 78/2015”), which is the implementation of Article 97 of the Manpower Law. GR 78/2015 covers among other things: (i) salary policy, (ii) decent income, (iii) protection of salary, (iv) minimum salary, (v) matters that can be calculated with salary, (vi) fines and salary deductions, and (vii) administrative sanctions. GR 78/2015 repeals Government Regulation No. 8 of 1981 on Salary Protection.