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NEW REGULATIONS ON COAL BLENDING

admin — Fri, 03 Jul 2026 07:11:13 +0000

NEW REGULATIONS ON COAL BLENDING

AND ADMINISTRATIVE CORRECTIONS TO BUSINESS PLANS AND BUDGETS

In order to ensure a reliable supply of coal for domestic power generation and industrial requirements, coal blending activities in coal mining operations shall be conducted.

The Minister of Energy and Mineral Resources of the Republic of Indonesia (“MEMR”) issued Regulation of the MEMR No. 6 of 2026 (“RM 6/2026”), which amends Regulation of the MEMR No. 17 of 2025 regarding Procedures for the Preparation, Submission, and Approval of Business Plans and Budgets, and the Procedures for Reporting the Implementation of Mineral and Coal Mining Business Activities (“RM 17/2025”). The new regulation took effect on 12 June 2026.

RM 6/2026 introduces several significant amendments to RM 17/2025, including the regulation of coal blending activities and the expansion of the authority to make administrative corrections in the Business Plans and Budgets (Rencana Kerja dan Anggaran Biaya – “RKAB”) evaluation process.

The key changes introduced under RM 6/2026 include the following:

1. Coal Blending

RM 6/2026 stipulates that coal blending activities may only be carried out upon obtaining prior approval from the MEMR. Such approval may be requested by mining business actors whose RKAB has been approved by the MEMR or the relevant governor in accordance with their respective authority.

a. Eligible Applicants

The following mining business actors are eligible to apply for coal blending approval:

i. holders of Mining Business Licenses (Izin Usaha Pertambangan – “IUP”) at the production operation stage;

ii. holders of Special IUP (IUP Khusus - “IUPK”) at the production operation stage;

iii. holders of IUPK as a continuation of contract/agreement operations for coal commodities; or

iv. holders of Coal Contracts of Work (Perjanjian Karya Pengusahaan Pertambangan Batubara – “PKP2B”).

b. The MEMR’s Approval

To obtain the MEMR’s approval for coal blending activities, the relevant mining business actor must apply through the designated information system of MEMR, accompanied by at least the following documents:

i. an RKAB approval of each mining business actor owning the parent coal (batubara induk) and the blending coal (batubara pencampur); and

ii. a completed simulation data showing coal specifications before and after blending, including at a minimum calorific value (nilai kalori), sulphur content (kandungan belerang), moisture content (kandungan air), and ash content (kandungan abu).

2. Coal Blending Reporting Obligations

Similar to RM 17/2025, RM 6/2026 requires holders of IUP production operation licenses, IUPK production operation licenses, and IUPK licenses issued as a continuation of contract/agreement operations to prepare and submit periodic reports every 3 (three) months to the MEMR. These periodic reports include reports on the implementation of the RKAB, the quality of mining wastewater, and statistics relating to mining accidents and hazardous occurrences.

Further, following the introduction of the coal blending framework under RM 6/2026, the scope of these periodic reporting obligations has now been expanded to include reports on the implementation of coal blending activities as an additional mandatory report.

3. Corrections to RKAB Approvals or Rejections

Previously, RM 17/2025 only authorised the MEMR to correct an RKAB approval where there was an administrative error and/or an error in the evaluation process.

Under RM 6/2026, the scope of this corrective authority has been expanded to cover not only RKAB approvals but also RKAB rejections. Accordingly, where there are administrative errors and/or errors in the evaluation process relating to the issuance of either an RKAB approval or rejection, the MEMR or the governor, as applicable, may rectify such approval or rejection.

4. Sanctions

The business actors that fail to comply with certain obligations, including periodic reporting obligations, may be subject to administrative sanctions in the form of written warnings, temporary suspension of part or all business activities, and/or revocation of their licenses.

In addition, violations relating to excess mineral or coal production beyond the production level stipulated in the approved RKAB for the production operation stage may result in the immediate temporary suspension of mining business activities during the relevant year, without the requirement for a prior written warning.

Conclusions and Key Takeaways

RM 6/2026 provides a clearer legal basis for coal blending activities in Indonesia. Mining business actors may now conduct coal blending only after obtaining the MEMR’s approval and satisfying the applicable administrative and technical requirements, including approved RKABs, contractual documentation, quality testing results, and coal specification simulations.

RM 6/2026 also broadens the authority of the MEMR to correct not only RKAB approvals but also RKAB rejections where administrative errors or evaluation-related errors have occurred.

This Client Alert is provided for general informational purposes only and does not constitute legal advice. Please contact us should you require further information or assistance regarding coal blending, RKAB, or related matters.

LINK PDF: Client-Alert-re-New-Regulations-on-Coal-Blending-and-RKAB-2026-07-037.pdf

INTEGRATION OF RISK-BASED LICENSING IN THE ENERGY AND MINERAL RESOURCES SECTOR

admin — Fri, 26 Jun 2026 07:53:27 +0000

INTEGRATION OF RISK-BASED LICENSING IN THE ENERGY AND MINERAL RESOURCES SECTOR

The Ministry of Energy and Mineral Resources of the Republic of Indonesia (“MEMR”) has issued Regulation of the Minister of Energy and Mineral Resources No. 7 of 2026 regarding Standards for Business Activities in the Implementation of Risk-Based Business Licensing in the Energy and Mineral Resources Sector (“RM 7/2026”). This regulation came into force on 12 June 2026 and revokes Regulation of MEMR No. 5 of 2021.

Under the previous regime, the implementation of risk-based licensing through the Online Single Submission (“OSS”) system was only partially integrated, with certain technical verification and evaluation processes conducted outside the OSS platform. RM 7/2026 introduces a fully integrated licensing mechanism through OSS system as the single gateway for the submission and issuance of licences.

RM 7/2026 also introduces more detailed and structured technical standards of the scope of regulated activities, including the recognition of Carbon Capture and Storage (“CCS”) and Carbon Capture Utilization and Storage (“CCUS”), reflecting Indonesia’s policy direction toward energy transition and the reduction of carbon emissions.

Set out below are key provisions under RM 7/2026:

1. Full Integration of Licensing through OSS System

RM 7/2026 iterates that all licensing processes within the Energy and Mineral Resources (“EMR”) sector must be submitted and processed through the OSS system. The OSS now serves as a unified platform covering application submission, fulfilment of requirements, process monitoring, and licence issuance.

Notwithstanding this integration, the regulation reserves the technical authority of relevant EMR units. Technical evaluations will continue to be conducted by the respective directorate generals (including Mineral and Coal, Oil and Gas, and Electricity), which are now integrated within the OSS workflow.

2. Risk-Based Approach

RM 7/2026 reinforces the implementation of a risk-based licensing framework as mandated under Government Regulation No. 28 of 2025 regarding Risk-Based Business Licensing. Business activities are classified according to their level of risk, which determines the type of licences required and the corresponding obligations imposed on business entities.

To support this approach, RM 7/2026 provides more comprehensive and detailed business activity standards, set out in its annexes, covering operational and technical aspects across various EMR sub-sectors.

3. Regulation of CCS and CCUS

A notable development under RM 7/2026 is the formal inclusion of CCS and CCUS as recognized business activities within the EMR sector. This provides a clearer legal basis for carbon capture, utilization, and storage projects, which were previously not explicitly regulated under sectoral frameworks.

4. Flexibility in Early Stages of Business Activities

RM 7/2026 introduces certain flexibilities aimed at accelerating investment, particularly during the exploration stage. Under specific circumstances, business entities may be granted leniency in fulfilling basic requirements, including spatial utilization conformity, especially for exploration activities in renewable energy, mineral and coal sectors, and certain electricity infrastructure projects.

5. Enhanced Supervision and Administrative Sanctions

RM 7/2026 strengthens supervisory mechanisms and the imposition of administrative sanctions for non-compliance. Sanctions may be applied progressively, ranging from written warnings to the revocation of business licences, depending on the severity of the violation and its impact on safety, the environment, and the public interest.

Conclusion

RM 7/2026 strengthens the licensing regime in the EMR sector through full integration with the OSS system. RM 7/2026 also opens new investment opportunities through the regulation of CCS and CCUS, in line with Indonesia’s broader agenda on energy transition and carbon emissions reduction.

This Client Alert is provided for general informational purposes only and does not constitute legal advice. Please contact us if you require further information or assistance in relation to risk-based licensing integration in the EMR sector or related matters.

Link PDF : Client Alert on Risk-Based Licensing in the EMR Sector

IMPLEMENTATION OF ELECTRONIC COMMERCE

admin — Fri, 19 Jun 2026 09:32:56 +0000

IMPLEMENTATION OF ELECTRONIC COMMERCE

Electronic Commerce (Perdagangan Melalui Sistem Elektronik – “PMSE”) has become a key pillar of Indonesia’s digital economy, demonstrating significant growth in recent years. This expansion has been driven by increased technological adoption, evolving consumer behaviour, and the emergence of diverse platform-based business models. In response to these developments, the government has deemed it necessary to strengthen the regulatory framework to address emerging challenges, including issues related to transparency, fair competition, and protection of domestic businesses.

The Ministry of Trade of the Republic of Indonesia (“MOT”) has issued Regulation of the Minister of Trade No. 19 of 2026 regarding the Implementation of Electronic Commerce (“RM 19/2026”), which took effect on 8 June 2026 and replaces Regulation of the Minister of Trade No. 31 of 2023. This new regulation aims to enhance the governance of Indonesia’s digital trade ecosystem, with a focus on platform transparency, promotion of domestic products, legal certainty for business entity, and consumer protection.

The following are several new provisions regulated under RM 19/2026:

1. Promotion of Domestic Products

RM 19/2026 requires electronic commerce platform operators to prioritize domestic products, including those produced by micro and small enterprises (MSEs). Platforms are expected not only to provide promotional space but also to actively enhance the visibility of local products through search features, recommendation algorithms, and marketing campaigns. This policy forms part of the government’s broader strategy to reduce reliance on imported goods and strengthen the competitiveness of domestic industries in the global market.

2. Business Licensing Requirements

The business entity operating within the PMSE ecosystem must obtain a Business Identification Number (Nomor Induk Berusaha – “NIB”) as proof of legal compliance under Indonesia’s risk-based licensing regime. Platform operators are required to verify the legal status of merchants, including the validity of their identity and licenses. In cases where a business entity fails to comply with these requirements, platforms must reject its registration or suspend access within a specified timeframe. This provision reflects a stricter regulatory approach aimed at enhancing accountability and formalization of digital businesses.

3. Enhanced Platform Transparency

RM 19/2026 emphasizes the importance of transparency in platform operations. Platform operators are required to provide clear, accurate, and accessible information regarding fee structures (including commissions and service charges), promotional mechanisms, and system governance that may affect product visibility. Transparency also extends to the disclosure of partnership arrangements between platforms and merchants, to prevent unfair or discriminatory practices within the marketplace ecosystem.

4. Strengthened Consumer Protection

RM 19/2026 strengthens consumer protection through more comprehensive obligations imposed on both business entities and platform operators. These obligations include the provision of accurate and non-misleading product information, ensuring secure transactions, and establishing accessible complaint handling and dispute resolution mechanisms. In addition, both merchants and platforms must safeguard the confidentiality and security of consumers’ personal data in accordance with applicable data protection laws and regulations.

5. Regulation on the Use of Digital Technologies (AI)

RM 19/2026 accommodates the increasing use of digital technologies, including Artificial Intelligence (AI), in commercial and marketing activities. Such technologies are permitted provided they adhere to principles of transparency, accountability, and non-deception. In practice, business entities and platforms must ensure that AI-generated or AI-optimized contents accurately represent the actual condition of products and do not violate consumer protection requirements.

6. Expanded Scope of PMSE

In addition to conventional marketplaces, RM 19/2026 extends its coverage to other digital business models, including social commerce, ride hailing services, and online travel agents.

7. Enforcement and Sanctions

The platform operators must reject the registration of merchants that do not have a valid NIB. Existing merchants without complete licensing may be given a temporary status of “Under Legalization Process” for up to 6 (six) months. If they fail to complete their licensing obligations within this period, the platform must suspend their transactions and/or block their accounts.

If platform operators fail to comply with the obligations, such as verifying merchant legality, ensuring transparency, or providing adequate consumer protection, they may be subject to administrative sanctions imposed by the MOT.

Conclusion

RM 19/2026 strengthens Indonesia’s digital trade legal framework by balancing the interests of business entities, platform operators, and consumers. It introduces more stringent requirements regarding business legality, platform transparency, and consumer protection, while also promoting the competitiveness of domestic products.

Link PDF : Client Alert on Implementation of Electronic Commerce

ANNUAL REPORT SUBMISSION

admin — Tue, 09 Jun 2026 08:05:51 +0000

ANNUAL REPORT SUBMISSION

We refer to our Client Alert dated 7 January 2026 regarding the New Regulation on Limited Liability Companies under the Regulation of the Minister of Law of the Republic of Indonesia (“Minister“) No. 49 of 2025 regarding the Requirements and Procedures for the Establishment, Amendment, and Dissolution of Limited Liability Companies (“RM 49/2025”).

As mentioned thereof, RM 49/2025 stipulates that the approval of the annual report by the General Meeting of Shareholders (“GMS“) must be set forth in a notarial deed and submitted to the Minister by the board of directors through a notary within a maximum period of 30 (thirty) calendar days from the date the notarial deed is executed. Such submission must be made electronically through the Legal Entity Administration System (Sistem Administrasi Badan Hukum – “SABH“), by uploading the following supporting documents, i.e., the notarial deed regarding the approval of the annual report and the annual report.

Furthermore, a limited liability company that fails to comply with the foregoing obligation or that exceeds the prescribed deadline for the submission of the GMS approval of the annual report may be subject to administrative sanctions imposed by the Minister through the Directorate General of General Legal Administration (Direktorat Jenderal Administrasi Hukum Umum – “Ditjen AHU“), in the form of a written warning and blocking of the limited liability company’s access to the SABH (“Administrative Sanctions“).

In connection with the implementation of the above obligation, on 26 May 2026, the Ditjen AHU issued an announcement regarding the Implementation of the Annual Report Submission Service (“Announcement“), which sets out the following key provisions:

1. The annual report submission service became effective as of 1 June 2026;

2. The annual report submission service is currently not subject to any Non-Tax State Revenue (Penerimaan Negara Bukan Pajak – “PNBP“) fees, pending the enactment of a new regulation of government on the types and rates of PNBP applicable to the Ministry of Law of the Republic of Indonesia;

3. Notarial deeds that have exceeded the prescribed submission deadline referred to above, i.e., 30 (thirty) calendar days from the date the notarial deed is executed, may, for the time being, still be used as the basis for submitting the annual report;

4. The Administrative Sanctions will come into force commencing in November 2026; and

5. Although the Administrative Sanctions have not yet been enforced, in the context of substantive verification of amendments to a limited liability company’s data (including changes to the board of directors and board of commissioners, share transfers, and changes to shareholder names), the Ditjen AHU’s verification team will first verify whether the relevant limited liability company has submitted its annual report, prior to verifying such amendment to the company’s data.

Conclusion

As of 1 June 2026, every limited liability company is expected to comply with the obligation to submit the GMS approval of its annual report through SABH in accordance with RM 49/2025. Although the Administrative Sanctions have not yet been enforced and will only take effect in November 2026, in the context of substantive verification of amendments to a limited liability company’s data, the Ditjen AHU will first verify that the relevant limited liability company has submitted its annual report. Accordingly, limited liability companies are advised to comply with this obligation to ensure the smooth processing of their corporate administrative matters.

This Client Alert is provided for general information purposes only and does not constitute legal advice. Please contact us should you require further information or assistance regarding annual report submission or related matters.

Link PDF : BIRP - Client Alert regarding Annual Report Submission

GOODS THAT MAY BE STORED UNDER THE WAREHOUSE RECEIPT SYSTEM

admin — Fri, 05 Jun 2026 09:31:07 +0000

GOODS THAT MAY BE STORED UNDER THE WAREHOUSE RECEIPT SYSTEM

The Warehouse Receipt System (Sistem Resi Gudang – “SRG”) is a trade and financing instrument regulated under Law No. 9 of 2006 and its implementing regulations. Under the prevailing Indonesian regulatory framework, any party that stores goods in a warehouse is entitled to obtain a warehouse receipt (resi gudang).

The SRG enables commodity owners, including farmers, fishermen, and other business actors, to store goods in accredited warehouses and obtain warehouse receipts issued by the warehouse operator as evidence of ownership. These receipts may be traded, transferred, or used as collateral to secure financing from financial institutions, thereby providing an alternative source of funding.

As commercial practices develop, the rules on which goods can be stored under the SRG and their requirements are regularly updated. Previously, these matters were regulated under Regulation of the Minister of Trade No. 33 of 2020 (“RM 33/2020”), which has been amended several times, most recently through Regulation of Minister of Trade No. 1 of 2025 regarding the Third Amendment to RM 33/2020 (“RM 1/2025”).

In May 2026, the Ministry of Trade of the Republic Indonesia (the “MOT”) issued Regulation of the Minister of Trade No. 14 of 2026 regarding Goods and Requirements for Goods that may be Stored under the SRG (“RM 14/2026”), which entered into force on 18 May 2026.

The following are several new provisions regulated under RM 14/2026:

1. Stages for the Issuance of Warehouse Receipts

Under RM 1/2025, warehouse receipts were issued by the warehouse operator following the delivery of goods by the owner to the warehouse.

RM 14/2026 introduces a more structured process consisting of the following stages:

a. delivery of goods by the owner to the warehouse operator;

b. quality testing carried out by a Conformity Assessment Body (Lembaga Penilaian Kesesuaian);

c. insurance of the goods by the warehouse operator;

d. verification, registration of the warehouse receipt, and issuance of a security code by the Warehouse Receipt Registration Center (Pusat Registrasi Gudang); and

e. issuance of the warehouse receipt by the warehouse operator.

Conformity Assessment Body

RM 14/2026 formally recognizes the Conformity Assessment Body as the entity responsible for assessing the quality and conformity of goods based on applicable standards. While such functions had previously been carried out in practice, the earlier framework did not expressly define this role within a clear institutional structure.

Warehouse Receipt Registration Center

The Warehouse Receipt Registration Center is a legal entity approved by Commodity Futures Trading Regulatory Agency (Badan Pengawas Perdagangan Berjangka Komoditi – “Bappebti”) to administer warehouse receipts and their derivatives. Its responsibilities include record keeping, safekeeping, book entry transfers of ownership, registration of security interests, reporting, and the provision of information systems and networks.

2. Details Requirements for Goods

RM 1/2025 set out general criteria for goods eligible for storage, specifically a minimum storage period of 3 (three) months, compliance with specified quality standards, and the fulfilment of minimum quantity thresholds, without providing detailed guidance on how such requirements should be satisfied.

RM 14/2026 now elaborates on these requirements by introducing more specific parameters, considering the nature and characteristics of the goods, packaging and storage facilities and technology affecting storage life, compliance with national standards and or standards applicable in export destination countries, as well as economic value considerations in determining minimum quantity thresholds.

3. Expansion of Eligible Goods

Under RM 1/2025, 27 (twenty seven) types of goods were eligible for storage. RM 14/2026 expands this number to 30 (thirty) types of goods. The eligible goods include, among others, unhusked rice, rice, corn, coffee, cocoa, pepper, smoked fish, dried skipjack tuna, and cloves.

The list of eligible goods may be further amended by a decree of the MOT, considering recommendations from regional governments, ministries or non-ministerial agencies, and or commodity associations supported by relevant studies.

Conclusion

RM 14/2026 enhances the SRG framework by introducing clearer procedures for the issuance of warehouse receipts, providing more detailed requirements for eligible goods, and expanding the range of commodities covered. These developments strengthen the role of warehouse receipts as a financing instrument and improve their reliability for business actors and financial institutions.

Link PDF : Client Alert on Goods Stored Under Warehouse Receipt System (2026-06-05)

DESIGNATION OF NON-ACTIVE CORPORATION

admin — Tue, 26 May 2026 10:45:40 +0000

DESIGNATION OF NON-ACTIVE CORPORATION

The information system developed by the Directorate General of General Legal Administration (Direktorat Jenderal Administrasi Hukum Umum – “Ditjen AHU”) under the Ministry of Law of the Republic of Indonesia (“MOL”) maintains comprehensive corporate records, including data on establishment, amendments, and dissolution. Corporations are required to notify MOL, through the Ditjen AHU, of any updates or changes to their corporate information.

To maintain orderly administration and ensure the accuracy of corporate data, the Ditjen AHU continues to enhance and update its information system. As of 2025, all corporations are required to update their beneficial ownership information at least once annually in the Ditjen AHU system. Non-compliance with this requirement may result in the corporation’s data being blocked in the Ditjen AHU system.

On 11 February 2026, the MOL issued the Circular Letter No. AHU-AH.01-36 TAHUN 2026 regarding the Administrative Designation of Non-Active Corporations and the Obligations to Report and Verify Beneficial Ownership (“Circular Letter”). This Circular Letter outlines the procedures for designating limited liability companies, foundations, and associations (collectively referred to as “Corporation”) as “Non-Active” within the Ditjen AHU system. This designation may be imposed on a Corporation that fails to update its data for a period of 5 (five) consecutive years. In such cases, the system may also impose a blocking status on the relevant Corporation.

In relation to the implementation of the Circular Letter, the following are several key provisions:

1. Mechanism for Designation as Non-Active Corporation

The designation of non-active Corporation status in the Ditjen AHU system will be conducted in the following stages:

a. Temporary List of Non-Active Corporation

A Corporation that has not carried out any corporate data update within the 5 (five) years prior to the issuance date of the Circular Letter (i.e., since 11 February 2021) will be included in the temporary list of non-active corporations. This information will be announced by the Ditjen AHU through newspapers, the Ditjen AHU system, and the Ditjen AHU’s official social media channels.

b. Permanent List of Non-Active Corporation

If a Corporation fails to update its corporate data in the Ditjen AHU system within 6 (six) months following publication of the temporary list, the Corporation will be placed on the permanent list of non-active corporations. A Corporation included on this list will be designated as “Non-Active” in the Ditjen AHU system, and this status will also be reflected in the company’s name in its corporate profile.

2. Reactivation of Active Status

A Corporation designated as “Non-Active” may reactivate its status by completing the required corporate data updates. Once the update is successfully processed in the Ditjen AHU system, the “Non-Active” designation will be automatically removed, and the Corporation’s name will be removed from the permanent non-active list.

3. Corporation under Blocked Status

For a Corporation that is classified as “Non-Active” and is also subject to a blocking status in the Ditjen AHU system due to failure to carry out periodic beneficial ownership updates, an application to lift the blocking must first be submitted. This can be done by:

a. submitting or updating the Corporation’s beneficial ownership information in the Ditjen AHU system; and/or

b. specifically for limited liability companies, completing the applicable requirements to lift the blocking status in the Ditjen AHU system.

Conclusion

With the issuance of the Circular Letter, every Corporation is expected to actively update its corporate data periodically at least once every year and/or conduct corporate data update within 5 (five) years through the Ditjen AHU system. Non-compliance with these obligations may result in the imposition of administrative blocking of a Corporation’s data and/or the designation of “Non-Active” status within the Ditjen AHU system, which in practice may affect the Corporation’s administrative processes.

This Client Alert is intended to provide a brief overview only on the Circular Letter, thus, cannot be deemed as legal advice. Please do not hesitate to contact us if you need a more detailed discussion, advice, and/or have specific questions.

Link PDF : BIRP - Client Alert regarding Designation of Non-active Corporation

INVESTMENT PARTNERSHIP BETWEEN LARGE ENTERPRISES AND MSMES

admin — Tue, 19 May 2026 06:04:18 +0000

INVESTMENT PARTNERSHIP BETWEEN

LARGE ENTERPRISES AND MSMES

There are certain business activities which requires large enterprises to have partnership with Micro, Small, and Medium Enterprises (“MSMEs”). Thus, the Indonesian Government continues to strengthen its regulatory framework to promote inclusive and regionally balanced partnership in the investment sector. The Minister of Investment and Downstream Industry/Head of the Investment Coordinating Board (Badan Koordinasi Penanaman Modal – “BKPM”) has issued Regulation No. 3 of 2025 (“RBKPM 3/2025”), which amends BKPM Regulation No. 1 of 2022 concerning Procedures for Partnerships between Large Enterprises and MSMEs.

Below is a summary of the key changes introduced by RBKPM 3/2025:

1. Integration of Partnership Commitments through the Online Single Submission (“OSS”) system

The regulation strengthens the obligation for large enterprises to prepare a partnership commitment which includes the scope of work, contract value, and implementation timeframe. This commitment must be submitted in the form of a Commitment Statement through the OSS system, either as part of the business licensing process and/or the application for investment facility.

2. Priority for Local and Inclusive MSMEs

RBKPM 3/2025 adopts a localized and inclusive approach by requiring that:

a. priority be given to MSMEs located within the same regency/municipality as the business operation. Should there be no suitable MSMEs available locally, the priority may be elevated to the provincial level; and

b. priority must be given to MSMEs owned by, or employing, persons with disabilities.

3. Increased Transparency in Partner Selection

BKPM will provide a list of prospective MSME partners through the OSS system, sourced from central and regional authorities, as well as from business associations.
Large enterprises may still propose alternative partners, subject to certain requirements, including the absence of any affiliation between the parties.

4. Alternative Fulfilment through Corporate Social Responsibility (“CSR”) Programs

Under certain circumstances, where suitable MSMEs are unavailable in the relevant location or where reasonable efforts to conclude a partnership fail to result in mutual agreement, partnership obligations may be fulfilled through the implementation of CSR programs. Such CSR programs include, among others, the development of educational facilities, workforce training programs, and research and development activities. The implementation of CSR programs by large enterprises must be conducted in compliance with Government Regulation of the Republic of Indonesia No. 47 of 2012 on the Social and Environmental Responsibility of Limited Liability Companies. Further, large enterprises implementing CSR programs are required to submit periodic investment activity reports through the OSS system.

5. Ongoing Partnership Obligations

The partnerships between large enterprises and MSMEs must be maintained throughout the operational period of the large enterprise. In the event that an MSME partner evolves into a large enterprise, the company must substitute such partner with another MSME within one year to preserve the objectives of MSME empowerment.

Conclusion

Accordingly, RBKPM 3/2025 reinforces inclusive MSME partnership obligations and limits the use of CSR programs to specific, conditional circumstances as an alternative means of compliance.

This Client Alert is intended to provide a brief overview of certain provisions and may not cover all provisions under the RBKPM 3/2025, thus, cannot be deemed as legal advice. Please do not hesitate to contact us if you need a more detailed discussion, advice, and/or have specific questions.

Link PDF : BIRP - Client Alert regarding Investment Partnership between Large Enterprises and MSMESs

NEW DRUG MANAGEMENT REGULATIONS

admin — Tue, 12 May 2026 08:15:15 +0000

NEW DRUG MANAGEMENT REGULATIONS

In March 2026, the Indonesian Drug and Food Supervisory Agency (Badan Pengawas Obat dan Makanan – “BPOM”) issued Regulation of BPOM No. 5 of 2026 regarding the Supervision of the Management of Drug and Drug Substance at Pharmaceutical Service Facility and Other Facility (“RBPOM 5/2026”), which came into effect on 6 April 2026.

By the enactment of RBPOM 5/2026, the previous regulation, i.e., Regulation of BPOM No. 24 of 2021 regarding the Supervision of the Management of Drug, Drug Substance, Narcotic, Psychotropic, and Pharmaceutical Precursor at Pharmaceutical Service Facility (“RBPOM 24/2021”), is revoked and declared no longer valid.

RBPOM 5/2026 amends several provisions previously regulated under RBPOM 24/2021, including those relating to the parties that may conduct drug management activity, the classification of drug, as well as the supervision and authority provisions in drug management.

The following are several key points regarding RBPOM 5/2026:

1. Adjustment to the Scope of Drug

Previously, RBPOM 24/2021 only covered provisions on the management of drug, drug substance, narcotic, psychotropic, and pharmaceutical precursor. RBPOM 5/2026 now expands and classifies the scope of drug management as follows:

a. drug that may be obtained with a prescription, which include narcotic, psychotropic, and prescription-only/potent drug (obat keras); and/or

b. drug that may be obtained without a prescription, which include limited over-the-counter drug (obat bebas terbatas) and over-the-counter drug (obat bebas).

2. Adjustment to Drug Management Provisions

Previously, RBPOM 24/2021 provided that drug management could only be conducted at pharmaceutical service facility, namely pharmacy, hospital pharmacy installation, and public health centers (pusat kesehatan masyarakat – “puskesmas”). Under RBPOM 5/2026, drug management may be conducted by:

a. Pharmaceutical service facility (fasilitas pelayanan kefarmasian), consisting of hospital pharmacy installation, puskesmas, pharmacy installation, clinic pharmacy installation, and pharmacy.

Drug management at pharmaceutical service facility is conducted in the form of procurement (pengadaan), receipt (penerimaan), storing (penyimpanan), dispensing (penyerahan), returning (pengembalian), destruction (pemusnahan),

reporting (pelaporan), and compounding (peracikan). Pharmaceutical service facility other than hospital pharmacy installation is prohibited from conducting drug production activity.

b. Other facility (fasilitas lain), consisting of drugstore, hypermarket, supermarket, and minimarket.

Drug management at other facility is conducted in the same forms as drug management at pharmaceutical service facility, except for compounding activity. In addition, other facility may only manage over-the-counter drug and limited over-the-counter drug.

Other facility is prohibited from conducting:

i. the management of narcotic, psychotropic, drug substance, and/or prescription-only/potent drug; and/or

ii. compounding and repackaging activities for drug, narcotic, psychotropic, and/or pharmaceutical precursor.

3. Person in Charge

RBPOM 5/2026 provides that each drug management activity must have a person in charge, subject to the following provisions:

a. Pharmaceutical Service Facility

All drug management activities at pharmaceutical service facility are under the responsibility of the pharmacist (apoteker) in charge, who may be assisted by other pharmaceutical personnel. The pharmacist in charge and such other pharmaceutical personnel must hold a valid practice license.

b. Other Facility in the Form of Drugstore

All drug management activities at other facility in the form of drugstore are under the responsibility of pharmaceutical vocational personnel (tenaga vokasi farmasi). Such pharmaceutical vocational personnel must hold a valid practice license.

c. Other Facility in the Form of Hypermarket, Supermarket, and Minimarket

All drug management activities at other facility in the form of hypermarket, supermarket, and minimarket are under the responsibility of health support or auxiliary personnel (tenaga pendukung atau penunjang kesehatan). Such health support or auxiliary personnel must hold a training certificate related to drug management activities.

4. Sanction

RBPOM 5/2026 regulates the imposition of sanctions for violations of the provisions stipulated therein, including any failure or non-compliance by pharmaceutical service facilities and other facilities to appoint the appropriate person in charge.

Such sanctions are administrative sanctions, in the form of warnings, stern warnings, and/or temporary suspension of activities, imposed by the Head of BPOM. In addition, the Head of BPOM may also submit a recommendation to the ministry/institution issuing the business license for the revocation of the business license of the relevant pharmaceutical service facility or other facility.

Takeaways

RBPOM 5/2026 introduces an important change by expanding the parties that may conduct drug management activities. In addition to pharmaceutical service facility, other facility such as drugstore, hypermarket, supermarket, and minimarket may now also conduct drug management activities, provided that such activities are limited to over-the-counter drug and limited over-the-counter drug.

In light of this change, retail business actors that manage or intend to manage drug should ensure that their business activities comply with the restrictions on the types of drug, forms of management activities, and requirements for the person in charge as regulated under RBPOM 5/2026.

Link PDF : Client Alert on New Drug Management Regulations

RAW AND/OR AUXILIARY MATERIALS SUPPLY HUB

admin — Fri, 08 May 2026 07:19:45 +0000

RAW AND/OR AUXILIARY MATERIALS SUPPLY HUB

Under Indonesian import regulations, any company engaging in import activities must hold a Business Identification Number (Nomor Induk Berusaha – “NIB”) that functions as an Importer Identification Number (Angka Pengenal Importir – “API”). The API is categorized into:

a. General API (API Umum – “API-U”), designated for companies engaged in wholesale trading activities, which may import goods solely for trading purposes; and

b. Producer API (API Produsen – “API-P”), designated for industrial or manufacturing companies, which may import goods exclusively for use in their own production processes, and such goods cannot be traded or transferred.

In practice, this framework has created challenges for Small and Medium Industries (Industri Kecil dan Menengah – “IKM”). Many IKM lack the capability to independently import raw and/or auxiliary materials. At the same time, their access to such materials in the domestic market is limited, as API-U holders typically are not allowed to import raw and/or auxiliary materials, while API-P holders are prohibited from reselling or transferring them.

To address this issue, in March 2026, the Ministry of Industry of the Republic of Indonesia (the “MOI”) issued the Regulation of the Minister of Industry of the Republic of Indonesia No. 5 of 2026 regarding the Raw and/or Auxiliary Materials Supply Hub (“RM 5/2026”), effective as of 26 March 2026. This regulation introduces a new framework allowing certain wholesale trading companies to import raw and/or auxiliary materials for limited distribution purposes.

1. New Framework

Pursuant to RM 5/2026, companies holding an API‑U are permitted to import and distribute raw and/or auxiliary materials, provided that they first obtain an official designation from the MOI as a Raw and/or Auxiliary Materials Supply Hub (Pusat Penyedia Bahan Baku dan/atau Bahan Penolong – “PPBBBP”), and that such materials are distributed solely to IKM businesses.

2. Eligibility Criteria

To be designated as a PPBBBP, a company must meet certain criteria including:

a. hold a valid NIB that functions as an API-U; and

b. own or control storage facilities for each commodity, with a minimum area of 500 m² in a single location.

3. Application Procedure

Applications for designation of PPBBBP must be submitted electronically to the Director General of Small, Medium, and Miscellaneous Industries (the “Director General”) through the National Industrial Information System (Sistem Informasi Industri Nasional – “SIINas”), for each relevant commodity group.

Once the application is complete, the MOI reviews it within 5 business days (including possible site verification). Should the application be approved, a recommendation is issued within 1 (one) business day, followed by a Ministerial Decree formalizing the designation.

4. Application Requirements

The application submitted through SIINas consists of:

a. Data Entry

The applicant must complete the data entry through SIINas by providing information on the company and the partnering IKM businesses, including their respective names, addresses, NIB, and relevant KBLI classifications, as well as the proposed commodity group.

b. Supporting Documents

The applicant must upload supporting documents, including the deed of establishment, proof of ownership or control of storage facilities, evidence of cooperation with IKM businesses, and a company profile.

5. Ministerial Designation

a. Validity Period and Revocation

The designation as a PPBBBP shall remain valid as long as the company’s business activities are carried out in compliance with the data and supporting documents submitted via SIINas at the time of application.

The designation may be revoked for various reasons, including if the company no longer has valid ownership or control over its storage facilities and/or if the cooperating IKM businesses fail to meet the applicable requirements.

b. Amendments

A list of IKM can be amended through an application in SIINas in the event of there is:

i. changes in the IKM’s licensed business activities; and/or

ii. changes in the number of cooperating IKM entities.

In all cases, the PPBBBP must maintain cooperation with at least 5 (five) IKM businesses.

Link PDF : BIRP - Client Alert on Raw and or Auxiliary Materials Supply Hub

WIUP FOR COOPERATIVES

admin — Mon, 04 May 2026 06:56:22 +0000

WIUP FOR COOPERATIVES

The Minister of Cooperatives of the Republic of Indonesia has issued the Regulation of the Minister of Cooperatives No. 12 of 2025 regarding the Implementation of Mineral and Coal Mining Business Activities by Cooperatives (“RM 12/2025”), which came into effect on 31 December 2025.

RM 12/2025 serves as the implementing regulation of the provisions under Article 26C(a) of the Government Regulation of the Republic of Indonesia (“GR”) No. 96 of 2021 regarding the Implementation of Mineral and Coal Mining Business Activities (“GR 96/2021”), as amended several times, most recently by GR No. 39 of 2025 regarding the Second Amendments to GR 96/2021.

The regulation applies to cooperatives operating as business entities, including government-initiated village/sub-district cooperatives (koperasi desa/kelurahan merah putih) (collectively referred to as the “Cooperative”).

Under the Indonesian mining licensing framework, the Cooperative must first obtain a Mining Business License Area (Wilayah Izin Usaha Pertambangan – “WIUP”) as a prerequisite to applying for a Mining Business License (Izin Usaha Pertambangan – “IUP”) from the Ministry of Energy and Mineral Resources of the Republic of Indonesia (“MEMR”). WIUPs for metal minerals and coal may be granted through either an auction or a priority allocation mechanism.

This Client Alert focuses on the priority allocation mechanism under RM 12/2025. Key points are summarized below:

1. Eligibility Criteria fora. Priority Allocation

To apply for the designation of a WIUP through the priority allocation mechanism, the Cooperative is required to fulfil the following requirements:

a. the Cooperative’s domicile and membership base are located within the same regency or municipality as the relevant metal mineral or coal WIUP;

b. the Cooperative’s articles of association and Business Identification Number (Nomor Induk Berusaha – “NIB”) expressly include metal mineral or coal mining business activities; and

c. the Cooperative has been duly established as a legal entity and is registered and verified in the database of the Ministry of Cooperatives of the Republic of Indonesia (“MOC”).

2. Application Process and Administrative Verification

Application for designation of WIUP must be submitted to the MEMR through the Online Single Submission (“OSS”) system. However, before technical evaluation can be

conducted, the Cooperative must first obtain administrative verification approval from the MOC.

Administrative Verification

The Cooperative must submit an application for administrative verification through the OSS system. This process involves an assessment:

a. the completeness of required documents; and

b. the compliance with the membership requirements.

Further, the Cooperative must submit the following documents:

a. administrative documents:

I. deed of establishment and articles of association (and its approval);

II. NIB specifying metal mineral or coal mining business activities;

III. domicile letter confirming location within the relevant regency/municipality;

IV. mining business activity plan;

V. WIUP map/layout; and

VI. statement letter of compliance with prevailing laws and regulations;

b. membership documents:

I. list of the Cooperative members legalized by the management of the Cooperative, indicating members’ domicile in accordance with the regency/municipality of the WIUP location;

II. identity and/or domicile of members as the basis of the linkage between the membership area and the WIUP location; and

III. minutes of members’ meeting or resolution approving the submission of the WIUP application by the Cooperative.

The MOC will complete its administrative verification within 4 (four) working days after receiving a complete submission.

3. Issuance of Administrative Clearance

If the application is declared complete, the MOC will issue an Administrative Verification Clearance Letter (Surat Lolos Verifikasi Administratif – “SLVA”) through the OSS system within 10 working days.

The SLVA enables the MEMR to proceed with its technical evaluation. If all requirements are satisfied, the MEMR will issue the WIUP designation under the priority allocation mechanism.

The maximum area that may be granted for a metal mineral WIUP or coal WIUP is up to 2,500 (two thousand five hundred) hectares.

After obtaining the WIUP, the Cooperative may proceed to apply for an IUP via the OSS system.

4. Reporting Obligations

In the event the Cooperative has conducted mining business activities, the management of the Cooperative is required to submit reports to the MOC, with copies to the MEMR as well as the relevant governor and regent/mayor in accordance with their respective jurisdictions. Such reports cover both institutional aspects and the implementation of mining business activities. With respect to institutional aspects, the report includes, among others, the results of members’ meetings, accountability reports of the management and supervisory board, and the Cooperative’s budget and revenue and expenditure plan for the following year. Meanwhile, with respect to mining operations aspects, the report covers asset development, business volume, human resources, and balance sheet reports and profit and loss calculations.

This Client Alert is intended to provide a brief overview of certain provisions and may not cover all provisions under the RM 12/2025, thus, cannot be deemed as legal advice. Please do not hesitate to contact us if you need a more detailed discussion, advice, and/or have specific questions.

Link PDF : Client Alert - WIUP for Cooperatives (2026-04-30)