Brigitta I. Rahayoe & Partners

CARBON TRADING THROUGH THE CARBON EXCHANGE

admin — Fri, 31 Jul 2026 12:36:38 +0000

CARBON TRADING THROUGH THE CARBON EXCHANGE

Carbon trading is a scheme for reducing Greenhouse Gas (Gas Rumah Kaca – “GRK”) emissions through the sale and purchase of carbon units among business actors and/or other relevant parties. One form of the implementation of carbon trading in Indonesia is by a carbon exchange operated by PT Bursa Efek Indonesia through the IDXCarbon platform. Through the carbon exchange, carbon units and/or records of ownership thereof that have been registered in the applicable registry system may be traded through a system regulated and supervised by the Financial Services Authority (“FSA”).

To align the regulation on carbon trading with Presidential Regulation No. 110 of 2025 regarding the Implementation of Carbon Economic Value Instruments and GRK Emission Control, the FSA issued Regulation of the FSA No. 10 of 2026 (“RFSA 10/2026“), amending Regulation of the FSA No. 14 of 2023 regarding the Carbon Trading through the Carbon Exchange (“RFSA 14/2023“). RFSA 10/2026 came into effect on 6 July 2026.

Key provisions under RFSA 10/2026 are summarized below:

1. Registration of Carbon Units

Under RFSA 14/2023, carbon units were required to be registered in the National Registry System for Climate Change Control (Sistem Registri Nasional Pengendalian Perubahan Iklim – “SRN PPI”), which is managed by the Deputy for Climate Change Control and Carbon Economic Value Governance under the Ministry of Environment/Environmental Control Agency of the Republic of Indonesia (“MOE/ECA”). However, RFSA 10/2026 replaces the registry system for the registration of carbon units from the SRN PPI to the Carbon Unit Registry System (Sistem Registri Unit Karbon – “SRUK”), administered by the same authority.

2. Types of Tradable Carbon Units

Under RFSA 14/2023, the carbon units eligible for trading on the carbon exchange consisted of the Technical Approval for Emission Cap for Business Actors (Persetujuan Teknis Batas Atas Emisi bagi Pelaku Usaha – “PTBAE-PU”) and the GRK Emission Reduction Certificate (Sertifikat Pengurangan Emisi GRK – “SPE-GRK”).

Following the enactment of RSFA 10/2026, the categories of carbon units eligible for trading have been expanded to include 3 (three) types of carbon units, i.e., GRK emission allowances, SPE-GRK, and non-SPE GRK.

a. GRK Emission Allowances

GRK emission allowances replace PTBAE-PU. While PTBAE-PU referred to the emission cap applicable to a business actor, GRK emission allowances are determined based on the volume of GRK emissions that a regulated installation is permitted to release into the atmosphere.

b. SPE GRK

SPE-GRK remains eligible for trading on the carbon exchange. The principal change relates to its registration, which must now be recorded in the SRUK rather than the SRN PPI.

c. non-SPE GRK

Non-SPE GRK is a new category introduced under RFSA 10/2026. It consists of carbon certificates issued in accordance with internationally recognized standards.

3. Requirements for Unregistered Foreign Carbon Units

RFSA 10/2026 simplifies the requirements for the trading of foreign carbon units that are not registered in the SRUK. Under RFSA 14/2023, such carbon units were required to satisfy several criteria cumulatively. RFSA 10/2026 now requires compliance with only one of the prescribed criteria, which may include registration, validation, or verification in an international registry system and/or registration with a foreign carbon exchange. These requirements remain subject to any additional requirements that may subsequently be imposed by the FSA in coordination with the MOE/ECA.

4. Reporting Obligations of Carbon Exchange Operators

RFSA 10/2026 simplifies these reporting requirements. The obligation to submit reports directly to the relevant ministry has been removed and replaced with a mechanism under which the FSA may determine which reports must be submitted by carbon exchange operators to the relevant ministry.

In addition, the reporting obligations in relation to the General Meeting of Shareholders (“GMS”) resolutions and the copy of the notarial deed of the GMS are now regulated separately. The GMS resolutions must be submitted to the FSA no later than 2 (two) business days after the date of the GMS, while the copy of the notarial deed of the GMS must be submitted to the FSA no later than 2 (two) business days after such deed is received by the carbon exchange operator.

5. Transitional Provisions

RFSA 10/2026 provides that a carbon exchange operator may continue to facilitate the trading of carbon units registered in the electronic system maintained by the relevant technical ministry for a maximum period of 3 (three) months from the promulgation of RFSA 10/2026. This transitional arrangement will remain in effect until the SRUK becomes fully operational.

Conclusion

RFSA 10/2026 introduces several important changes to Indonesia’s carbon trading framework that should be considered by carbon exchange operators and market participants. Key changes include the migration of the carbon unit registry from the SRN PPI to the SRUK, the expansion and adjustment of tradable carbon unit categories, the simplification of requirements for foreign carbon units that are not registered in the SRUK, and modifications to reporting obligations.

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 the RFSA 10/2026 or related matters.

LINK PDF: Client-Alert-Carbon-Trading-through-the-Carbon-Exchange-2026-07-313.pdf

MANPOWER INSPECTION

admin — Fri, 24 Jul 2026 10:05:15 +0000

MANPOWER INSPECTION

In June 2026, the Government of the Republic of Indonesia, through the Minister of Manpower of the Republic of Indonesia (“MOM”), issued the Regulation of the MOM No. 11 of 2026 regarding the Procedures for Manpower Inspection (“RM 11/2026”).

RM 11/2026 was promulgated and became effective on 3 July 2026. Simultaneously, it revoked the Regulation of the MOM No. 33 of 2016 regarding the Procedures for Manpower Inspection, as amended by Regulation of the MOM No. 1 of 2020.

RM 11/2026 aims to strengthen a transparent, accountable, and standardized manpower inspection system, while also reinforcing the role of manpower inspectors in enforcing manpower laws

Several important provisions stipulated under RM 11/2026 include the following:

1. Expanded Authority of Manpower Inspectors

RM 11/2026 expands and clarifies the powers of manpower inspectors. In carrying out inspections, manpower inspectors may:

a. enter a company or workplace without being accompanied by the relevant employer or management;

b. request data, documents, evidence, and information relating to compliance with manpower regulations;

c. summon relevant parties to provide explanations; and

d. take necessary enforcement measures.

If a manpower inspector is denied access to a workplace, he/she may request assistance from the Indonesian National Police.

RM 11/2026 also expressly authorizes manpower inspectors to take certain measures, including:

i. sealing work equipment to prevent its operation;

ii. prohibiting or suspending work processes; and

iii. removing child workers from the workplace.

2. Inspection Stages and Criminal Enforcement

RM 11/2026 provides that manpower inspection is conducted through 3 (three) stages:

a. preventive and educational measures (guidance);

b. non-judicial action (issuance of inspection notices and/or determination of manpower’s entitlements); and

c. repressive judicial action (enforcement of criminal sanctions).

However, manpower inspectors may proceed directly to criminal sanctions’ enforcement without first completing the preceding stages in cases involving:

i. serious occupational accidents resulting in death or permanent disability;

ii. unlawful employment of children; or

iii. other manpower violations involving criminal elements.

3. New Compliance Self-Assessment through SIAPkerja

In performing various functions in the manpower sector, particularly the manpower inspection function, the Ministry of Manpower operates an information system known as the Manpower Services Information System and Application (Sistem Informasi dan Aplikasi Pelayanan Ketenagakerjaan – “SIAPkerja”).

All companies are required to complete an electronic compliance checklist through SIAPkerja. The self-assessment results will be verified by manpower inspectors and may be used as part of the manpower inspection process. However, it is important to note that, completion of the self-assessment does not prevent manpower inspectors from conducting manpower inspections directly at the company’s premises.

4. Inspection Outputs

RM 11/2026 provides that manpower inspections may result in the following outcomes:

A. Preventive and Educational Measures

Manpower inspectors may provide guidance, technical advice, supervision, or other compliance-related assistance to help companies meet manpower standards.

B. Non-Judicial Enforcement Measures

Where non-compliance is identified, manpower inspectors may issue:

i. inspection notices, requiring the company to remedy violations; and/or

ii. determinations of manpower’s entitlements, specifying payments or other entitlements that must be fulfilled by the employer.

C. Repressive Judicial Action

For certain violations, manpower inspectors may pursue criminal sanctions’ enforcement measures in accordance with applicable laws and regulations.

Conclusions and Takeaways

RM 11/2026 strengthens Indonesia’s manpower inspection regime by expanding the authority of manpower inspectors and introducing a new compliance self-assessment mechanism through SIAPkerja. RM 11/2026 also reinforces the manpower inspection framework by providing a clearer enforcement process and allowing manpower inspectors to proceed directly to criminal enforcement in certain cases, including serious occupational accidents, the unlawful employment of children, and other manpower violations involving criminal elements.

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 manpower inspections or related matters.

LINK PDF: Client-Alert-regarding-Manpower-Inspection3.pdf

IMPORT POLICY REFINEMENTS THROUGH ACCELERATED LICENSING PROCEDURES

admin — Fri, 17 Jul 2026 10:19:47 +0000

IMPORT POLICY REFINEMENTS THROUGH ACCELERATED LICENSING PROCEDURES

The Minister of Trade of the Republic of Indonesia (“MOT“) has issued the Regulation of the Minister of Trade No. 18 of 2026 regarding the Second Amendment to the RM No. 16 of 2025 on Import Policies and Regulations (“RM 18/2026“). Effective as of 4 June 2026, this regulation represents a further refinement of Indonesia’s import regulatory framework, following the amendments previously introduced under the RM No. 37 of 2025. RM 18/2026 aims to facilitate the smooth flow of goods, accelerate import licensing processes, and provide legal certainty for business actors. The issuance of RM 18/2026 is also aligned with the Indonesia government’s broader efforts to strengthen the integration of trade licensing and supervisory systems using electronic platforms, including Indonesia National Trade Repository (“INATRADE”) and the System Indonesia National Single Window (“SINSW“).

Below are the key provisions introduced under RM 18/2026:

1. Expedited Import Licensing Process

One of the key changes under RM 18/2026 is the enhancement of import licensing services through an integrated electronic system. The regulation introduces clear processing timelines, requiring administrative verification of import license applications to be completed within 15 (fifteen) business days from receipt by the INATRADE system. Where an application is complete and satisfies all requirements, the import business license must be issued electronically through INATRADE and transmitted to SINSW within 5 (five) business days. Significantly, if the relevant authority fails to issue the license within the prescribed timeframe despite the application being complete, the license will be automatically issued electronically through INATRADE and forwarded to SINSW. On the contrary, applications that do not satisfy the applicable requirements will be rejected electronically within the stipulated timeframe.

2. Amendments and Extensions of Import Approvals

RM 18/2026 also introduces a clearer procedure for amendments to import business licenses. Applications for amendments are subject to administrative verification within 15 (fifteen) business days, and approved amendments must be issued electronically through INATRADE and transmitted to SINSW within 5 (five) business days of a complete submission. Where a complete amendment application is not processed within the prescribed timeframe, the amended license will be automatically issued through INATRADE. The regulation further clarifies that amendments relating to HS codes, types of goods, quantities, or units of measurement will only remain valid for the remaining validity period of the original import business license.

In addition, importers may apply for an extension of their import approval for goods that have already been loaded onto a means of transport prior to the expiry of the approval but whose arrival is delayed due to force majeure events, natural disasters, humanitarian disasters, technical disruptions affecting the means of transport, or other circumstances resulting in shipment delays.

3. Strengthened Verification and Monitoring of Import Data

RM 18/2026 reinforces oversight and validation of import data through enhanced integration between INATRADE, SINSW, and customs systems. Data verification and reconciliation processes are now conducted more comprehensively, covering key elements such as import approval numbers and validity periods, tariff classifications, quantities and units of goods, and destination ports.

4. Refinements to Surveyor Report Requirements

RM 18/2026 clarifies that surveyor reports for certain goods requiring an import business license may only be issued once the applicable licensing requirements have been fulfilled. However, the regulation also permits the issuance of a surveyor report after the expiry of the relevant license in specific circumstances, provided that the required technical verification has been completed and the goods have already been loaded or arrived in accordance with the applicable requirements.

5. Enhanced Digitalization of Import Services

Import licenses and supporting certificates are now issued electronically through INATRADE and SINSW using electronic signatures and QR codes, eliminating the need for physical stamps or wet signatures. This development further supports the government’s digitalization initiatives and facilitates more efficient import administration processes.

Conclusion

RM 18/2026 reflects the Indonesia government’s continued efforts to improve the efficiency of import administration through digitalization, streamlined licensing procedures, and enhanced legal certainty for businesses. By introducing clearer processing timelines, mechanisms for the automatic issuance of import licenses under certain circumstances, and more detailed provisions on the amendment and extension of Import approvals, the regulation seeks to address practical challenges frequently encountered by importers and to facilitate smoother trade flows.

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 import policy refinements through accelerated licensing procedures or related matters.

LINK PDF: Client-Alert-regarding-Import-Policy-Refinements-through-Accelerated-Licensing-Procedure3.pdf

NEW REGULATION ON OUTSOURCING WORK

admin — Fri, 10 Jul 2026 09:28:43 +0000

NEW REGULATION ON OUTSOURCING WORK

An outsourcing arrangement involves a service recipient company delegating part of its work to an outsourcing company engaged to perform such work. The parties’ relationship is governed by an outsourcing agreement, which sets out their respective rights and obligations.

The Minister of Manpower of the Republic of Indonesia (“MOM”) has issued the Regulation of the MOM No. 7 of 2026 regarding the Outsourcing Work (“RM 7/2026”), which came into effect on 30 April 2026. RM 7/2026 was issued to implement Article 81 point 18 of Law No. 6 of 2023 regarding the Stipulation of Government Regulation in Lieu of Law No. 2 of 2022 regarding the Job Creation into Law (employment cluster), and pursuant to the Constitutional Court Decision No. 168/PUU-XXI/2023, which requires further regulation on outsourcing work.

Key provisions under RM 7/2026 are summarized below:

1. Types and Scope of Outsourced Work

RM 7/2026 provides that a service recipient company may only delegate part of the performance of its work to an outsourcing company through a written outsourcing agreement. The scope of work that may be outsourced is limited to the provision of workers for supporting activities, including cleaning services, food and beverage services, security services, driver and employee transportation services, operational support services, and support services in the mining, oil and gas, and electricity sectors. Accordingly, work other than such supporting activities is not permitted to be outsourced under RM 7/2026.

2. Outsourcing Agreement

The outsourcing agreement, which serves as the basis for the outsourcing arrangement between the service recipient company and the outsourcing company, must at least contain the provision of outsourced work, the term of the agreement, the location of the work, the number of outsourced workers, the protection and rights of outsourced workers, and the rights and obligations of the outsourcing company and the service recipient company.

RM 7/2026 requires the outsourcing company to fulfil and protect the rights of outsourced workers, including wages, overtime pay, working hours and rest periods, annual leave, occupational safety and health, social security, religious holiday allowance, and termination-related entitlements.

The service recipient company must nevertheless ensure that these rights are provided in accordance with applicable laws and regulations.

3. Registration of the Outsourcing Agreement

The outsourcing agreement must be registered with the relevant regency/municipality manpower office having jurisdiction over the location where the work is carried out (the “Manpower Office”). While RM 7/2026 does not expressly designate the party responsible for registering the outsourcing agreement, it requires the outsourcing company to hold the registration certificate issued by the Manpower Office.

If the outsourcing agreement does not comply with the requirements regarding the types and scope of outsourced work or the mandatory contents of the outsourcing agreement, the Manpower Office may suspend the issuance of the registration certificate.

4. Administrative Sanctions

RM 7/2026 provides that a service recipient company that violates the provisions on the types and scope of outsourced work may be subject to progressive administrative sanctions in the form of written warnings and restrictions on business activities. Such restrictions may include limitations on the production capacity of goods and/or services for a specified period and/or the postponement of the issuance of business licenses at one or more business locations.

5. Transitional Provisions

RM 7/2026 allows existing outsourcing agreements to remain in effect until the expiry of their terms. Nevertheless, the types and scope of outsourced work undertaken by the outsourcing company and the service recipient company must be aligned with the requirements of RM 7/2026 by 30 April 2028.

Conclusion

Following the enactment of RM 7/2026, the service recipient companies and the outsourcing companies should ensure that their outsourced work complies with the permitted categories under the regulation and that their outsourcing agreements are registered with the relevant Manpower Office within the prescribed timeframe.

LINK PDF: Client-Alert-New-Regulation-on-Outsourcing-Work1.pdf

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.

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.

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