Risk Based Business Licensing: the New Approach by the Government of Indonesia to Attract More Investment
With the ongoing global pandemic affecting our economic nationwide in 2020, the Indonesian Government has issued Omnibus Law in 2020 to attract more investment as part of our national economic recovery program. There are numbers of current implementing regulations affected by the Omnibus Law and we have seen quite a significant number of new regulations issued by the Government to amend or replace the current ones.
Business licensing, being the gateway to do business in Indonesia, also receives some changes in order to facilitate the investment climate in Indonesia intended by the Omnibus Law. Earlier this year, the Government issued Government Regulations No. 5 of 2021 on Risk Based Business Licensing aimed to simplify licensing procedure according to the risk classification. The general idea is that lower risk business activities should have less compliance requirements so that the business may commence commercial activities sooner.
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PROVISIONAL ORDERS IN THE INTELLECTUAL PROPERTY RIGHTS REGIME
On 30 July 2012, the Supreme Court (Mahkamah Agung “MA”) promulgated a new Supreme Court Regulation, MA Regulation No. 5 of 2012 on Provisional Orders (“MA Regulation 5/2012”).
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The New Regulation on Government Procurement of Goods and Services
Presidential Regulation No. 12 of 2021 on Government Procurement of Goods and Services has just been issued as an amendment to Presidential Regulation No. 16 of 2018, as one of the implementing regulations of Law No. 11 of 2020 on Job Creation or the Omnibus Law. It mainly aims to provide more opportunities for micro-level businesses and cooperatives to be involved in the public procurement of goods and services.
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The Minister of Energy and Mineral Resources Amends the Purchase Scheme for Renewable Sourced Electricity
The Minister of Energy and Mineral Resources issued Regulation No. 4 of 2020 to accelerate the development of renewable sourced electricity as well as to improve the economic value renewable power plants.
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New Regulation on Foreign Construction Representative Offices and Construction Foreign Investment Companies
On 13 June 2019, the Minister of Public Works and Public Housing (“MPW”) issued Regulation No. 09/PRT/M/2019 on Guidelines on Licensing Services for Foreign Construction Business Entities (“Reg No. 9/2019”), introducing significant changes to the provisions.
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