Stop the press! Rush of new laws in closing days of Parliament

Stop the press! Rush of new laws in closing days of Parliament

As the current Parliamentary term comes to a close, there has been a rush of new laws passed by the Indonesian House of Representatives.  The following are key:

·         New Electricity Law: this law will partly deregulate the electricity market and allow private producers to generate, transmit, distribute and sell electricity in areas which do not have an existing power supply – without the need to work with the state electricity company, PT Perusahaan Listrik Negara (PLN).  The new law will allow private producers to use PLN’s transmission and distribution network on payment of rental fees.

·         Revised Tax Law:  changes to the Tax Law in respect of value-added tax (VAT) and luxury taxes are to take effect in April 2010.  The changes include: removing “double VAT tax” on Shariah Banking transactions; removal of VAT and regional taxes on certain mining products (including coal, natural gas, copper and nickel); introducing a VAT and luxury tax refund scheme for foreign tourists; and changes to VAT liability in relation to property and vehicle transfers in certain mergers and acquisitions.

·         Revised Health Law: changes to the Health Law including: subjecting doctors and hospital administrations to criminal offences in respect of patient deaths caused by negligence with penalties of IDR 1billion fines and a maximum 10 years’ imprisonment; and the establishment of an independent regulator body with members from the medical and religious communities to monitor hospitals.

• The New Environmental Law
• Circular on Mining Permits prior to issue of implementing regulations
• Indonesia's New Mining Law
• Waste Management Law
• Freedom of Information Law
• Further changes to Foreign Investment Rules
• Further changes to Franchise Law in Indonesia's