Brigitta I. Rahayoe & Partners

UPDATED REGULATION ON FUEL OIL BUSINESS REGISTRATION NUMBERS

Bayu Wicak — Fri, 18 Sep 2026 09:49:51 +0000

UPDATED REGULATION ON FUEL OIL BUSINESS REGISTRATION NUMBERS

The requirement for business entities in the fuel oil sector to obtain Business Registration Numbers (Nomor Registrasi Usaha – “NRU“) is not a new obligation. The requirement has long formed part of the regulatory oversight framework of the Downstream Oil and Gas Regulatory Agency (Badan Pengatur Hilir Minyak dan Gas – “BPH Migas”) and was previously governed under the Regulation of the BPH Migas No. 3 of 2022 regarding Fuel Oil Business Registration Numbers (“BPH Migas Regulation 3/2022“).

On 18 August 2026, the BPH Migas Regulation No. 2 of 2026 regarding Fuel Oil Business Registration Numbers (“BPH Migas Regulation 2/2026“) came into effect. This regulation revokes and replaces BPH Migas Regulation 3/2022.

While the obligation to obtain an NRU remains unchanged, BPH Migas Regulation 2/2026 introduces several enhancements, including the digitalization of the NRU issuance process, integration with business licensing systems, the implementation of QR codes, and strengthened supervisory mechanisms by BPH Migas.

Key provisions under BPH Migas Regulation 2/2026 include the following:

1. Mandatory NRU Ownership

BPH Migas Regulation 2/2026 restates that every business entity holding a license for fuel oil supply and distribution activities is required to obtain an NRU for each type of business license it possesses. An NRU is issued to business entities undertaking fuel oil processing, pipeline transportation, storage, and/or trading activities.

In addition, the regulation expressly recognizes the NRU as the official identity of a business entity for the purpose of conducting downstream fuel oil business activities. This underscores the role of the NRU as a key regulatory instrument within the downstream fuel oil sector, rather than merely an administrative registration requirement. Accordingly, a business entity operating under more than one type of business license should ensure that each license is supported by the appropriate NRU corresponding to the relevant licensed activity.

2. Integration of NRU with the OSS System and MEMR Licensing System

One of the principal changes introduced by BPH Migas Regulation 2/2026 is that NRUs are now issued based on licensing data obtained through the integration of the BPH Migas system, the licensing system of the Ministry of Energy and Mineral Resources (“MEMR“), and the Online Single Submission (“OSS“) system.

This integration reflects a shift from a largely administrative registration process toward a more digitalized system connected to the national business licensing framework.

3. Issuance of QR Codes as Part of the NRU

BPH Migas Regulation 2/2026 provides that an NRU will be issued in the form of an electronic certificate and a QR code. A QR code forms part of the registration identity issued by BPH Migas and serves as a digital verification tool for registered business entities.

In addition, business entities are required to display the QR code at their principal facilities and infrastructure and to report its installation to BPH Migas through the designated system. These requirements reflect BPH Migas’ broader effort to digitalize NRU administration and enhance regulatory oversight of downstream fuel oil activities.

4. Sanctions

Administrative sanctions may be imposed on NRU holders that: (i) fail to install the NRU QR code on their main facilities and/or infrastructure as required under BPH Migas Regulation 2/2026; and/or (ii) fail to report the installation of such QR code to BPH Migas through the designated system. The available administrative sanctions include written warnings and/or revocation of the NRU.

With the introduction of this sanctioning mechanism, compliance with NRU requirements is no longer limited to merely obtaining and maintaining registration status. It also encompasses ongoing obligations relating to the use, installation, and reporting of QR codes as part of BPH Migas’ digital supervisory framework.

Conclusion

Although BPH Migas Regulation 2/2026 does not introduce a new obligation to obtain an NRU, it reflects a broader move toward a more integrated and digitalized regulatory environment. Accordingly, business entities should ensure that the information reflected in the OSS system and their business licenses remains accurate, consistent, and up to date, and that any changes to corporate information or licensing details are promptly updated, as such information will serve as the basis for the issuance and ongoing supervision of NRUs by BPH Migas.

Link PDF: Client Alert regarding Updated Regulation on Fuel Oil Business Registration Numbers (2026-09-18)

LEGAL REMEDIES IN CRIMINAL PROCEEDINGS

Bayu Wicak — Wed, 16 Sep 2026 05:13:13 +0000

LEGAL REMEDIES IN CRIMINAL PROCEEDINGS

In connection with the enactment of the Law of the Republic of Indonesia No. 20 of 2025 regarding the Criminal Procedure Code (“Criminal Procedure Code”), on 19 August 2026, the Supreme Court of the Republic of Indonesia (“Supreme Court”) issued Supreme Court Circular Letter No. 4 of 2026 regarding the Guidelines for Legal Remedies against Judgments of Acquittal (Putusan Bebas), Judgments of Release (Putusan Lepas), and Appeals, and for Appeals and Cassation that Do Not Meet Formal Requirements (“Supreme Court Circular Letter”).

The Supreme Court Circular Letter was issued to further regulate the legal remedies available against certain judgments, the time limits for filing legal remedies and submitting appeal and cassation memoranda, and the mechanism for handling legal remedies that Do Not Meet Formal Requirements (“Formal Non-Compliance”).

Several key provisions under the Supreme Court Circular Letter are summarized below:

1. Judgment of Acquittal

A judgment of acquittal is a judgment rendered when the judge determines that the criminal offense charged against the defendant has not been proven in a lawful and conclusive manner. Under such judgment, the defendant is acquitted of the charges brought against them.

In this regard, the Supreme Court Circular Letter stipulates that a judgment of acquittal is not subject to appeal or cassation, whether filed by the defendant, their counsel, or the public prosecutor.

2. Judgment of Release and Detention Status

A judgment of release is a judgment rendered where the act charged against the defendant has been proven, but the defendant may not be held criminally liable for such act due to the existence of a ground for excluding criminal liability. Under such judgment, the defendant is released from all criminal liability in respect of the act charged.

In this regard, the Supreme Court Circular Letter stipulates that, where a detained defendant is subject to a judgment of release, the operative part of the judgment must include an order for the defendant to be released from detention upon the pronouncement of the judgment. However, if the public prosecutor files an appeal, the authority to determine the defendant’s subsequent detention shall rest with the high court.

3. Time Limits for Filing Legal Remedies

In addition to regulating legal remedies against judgments of acquittal and judgments of release, the Supreme Court Circular Letter also emphasizes several time limits that must be observed in filing legal remedies and submitting appeal and cassation memoranda, as follows:

a. Appeal: may be filed by the defendant, their counsel, or the public prosecutor no later than 7 (seven) calendar days from the date on which the judgment is rendered. If the defendant is not present at the hearing, such period shall be calculated from the date on which the judgment is notified to the defendant.

b. Appeal Memorandum: constitutes a document setting out the grounds or basis for filing an appeal. Where the defendant files an appeal, the defendant may submit an appeal memorandum, whereas the public prosecutor is required to submit an appeal memorandum when filing an appeal. The appeal memorandum must be submitted no later than 7 (seven) calendar days after the appeal is filed. If such period has lapsed and the public prosecutor, as the appellant, fails to submit an appeal memorandum, the appeal shall lapse.

c. Cassation: may be filed by the defendant, their counsel, or the public prosecutor no later than 14 (fourteen) calendar days from the date on which the judgment is pronounced in an open court hearing. If the defendant is not present at the hearing, such period shall be calculated from the date on which the judgment is notified to the defendant.

d. Cassation Memorandum: constitutes a document setting out the grounds or basis for filing a cassation and must be submitted no later than 14 (fourteen) calendar days after the cassation is filed. If the cassation memorandum is not submitted or is submitted after the prescribed period, the right to file a cassation shall lapse.

4. Legal Remedies Involving Formal Non-Compliance

Formal Non-Compliance refers to a situation where an application for a legal remedy does not satisfy the prescribed formal requirements, such that the relevant legal remedy cannot proceed to the subsequent stage of examination.

As described in sections 1 through 3 above, several circumstances may result in an application for a legal remedy being classified as involving Formal Non-Compliance, including:

a. an appeal against a judgment of acquittal;

b. an appeal filed by the public prosecutor without an appeal memorandum being submitted within the prescribed period;

c. a cassation against a judgment of acquittal, a cassation filed after the prescribed time limit, or a cassation filed without a cassation memorandum within the prescribed period;

Where an appeal or cassation falls within the foregoing Formal Non-Compliance categories, the clerk of the district court shall issue a statement confirming that the relevant application involves Formal Non-Compliance. Based on such statement, the chairperson of the district court shall issue a determination (penetapan) declaring the relevant appeal or cassation to involve Formal Non-Compliance and therefore inadmissible. Such determination by the chairperson of the district court shall not be subject to any legal remedy, including opposition, objection, appeal, cassation, or judicial review.

Conclusion

The Supreme Court Circular Letter provides further guidance on the filing and handling of legal remedies in criminal proceedings under the Criminal Procedure Code, including the types of legal remedies that may be filed, the time limits for filing legal remedies and submitting the relevant memoranda, and the handling of applications involving Formal Non-Compliance.

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 Supreme Court Circular Letter or related matters.

LINK PDF: Client Alert - Legal Remedies in Criminal Proceedings (2026-09-11)

LEGAL REMEDIES IN CRIMINAL PROCEEDINGS

Fri, 11 Sep 2026 09:25:56 +0000

LEGAL REMEDIES IN CRIMINAL PROCEEDINGS

Several key provisions under the Supreme Court Circular Letter are summarized below:

1. Judgment of Acquittal

2. Judgment of Release and Detention Status

3. Time Limits for Filing Legal Remedies

4. Legal Remedies Involving Formal Non-Compliance

As described in sections 1 through 3 above, several circumstances may result in an application for a legal remedy being classified as involving Formal Non-Compliance, including:

a. an appeal against a judgment of acquittal;

b. an appeal filed by the public prosecutor without an appeal memorandum being submitted within the prescribed period;

c. a cassation against a judgment of acquittal, a cassation filed after the prescribed time limit, or a cassation filed without a cassation memorandum within the prescribed period;

Conclusion

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IMPLEMENTING REGULATION OF THE PERSONAL DATA PROTECTION LAW

Fri, 04 Sep 2026 09:25:49 +0000

IMPLEMENTING REGULATION OF

THE PERSONAL DATA PROTECTION LAW

The Indonesian Government has issued the Government Regulation No. 33 of 2026 regarding the Implementing Regulation of the Law No. 27 of 2022 regarding Personal Data Protection (“PDP Law”) (“GR 33/2026“).

GR 33/2026 provides detailed technical guidance on various obligations and rights that were previously regulated only in general terms under the PDP Law. In addition to elaborating on the implementation of data subject rights and the obligations of personal data controllers, GR 33/2026 introduces several new operational requirements that may require a company to update its compliance frameworks.

Set out below are several key provisions under GR 33/2026:

1. Documentation and Data Processing Governance Requirements

GR 33/2026 requires personal data controllers to prepare and maintain records of personal data processing activities. Such records must, at a minimum, identify the parties involved in the processing activities, specify the legal basis and purposes of processing, and document key governance measures, including retention periods, and security measures implemented.

GR 33/2026 also requires personal data controllers to establish a personal data retention policy covering retention periods, methods for deletion or destruction of personal data, responsible personnel, and documentation and notification mechanisms for data subjects.

2. Data Protection Impact Assessment

GR 33/2026 requires a Data Protection Impact Assessment (“DPIA“) to be carried out before the relevant processing activities commence. GR 33/2026 must prescribe a minimum required contents that must be included in a DPIA, including an assessment of potential risks to data subjects and the mitigation measures to address those risks.

This requirement will be particularly relevant to organizations engaged in large-scale processing, profiling activities, the use of emerging technologies such as artificial intelligence (AI), or the processing of specific categories of personal data.

3. Technical Personal Data Security Requirements

GR 33/2026 requires personal data controllers to implement security measures that are appropriate to the risks arising from their personal data processing activities. These measures include using safeguards such as encryption, maintaining the confidentiality, integrity, and availability of personal data, ensuring the ability to restore access to data following a security incident, conducting regular security testing and assessments, and incorporating privacy by design and privacy by default principles when developing systems and processes.

4. Procedures for Handling Data Subject Rights Requests

GR 33/2026 requires personal data controllers to provide accessible channels through which data subjects may submit requests and must verify each request received.

GR 33/2026 also prescribes minimum information that must be included in a request, identifies parties entitled to submit requests on behalf of data subjects, and requires controllers to maintain records of actions taken in response to each request.

5. Appointment of a Personal Data Protection Officer

In relation to the appointment and function of a Personal Data Protection Officer (“PDPO“), GR 33/2026 requires the organizations to ensure that the PDPO is actively involved in personal data processing activities, has direct access to senior management, and is able to perform their duties independently by providing adequate resources and ensuring that no conflict of interest arises.

6. Cross-Border Transfers of Personal Data

GR 33/2026 introduces a more comprehensive framework governing cross-border transfers of personal data. Before transferring personal data outside Indonesia, personal data controllers must assess the legal basis for the transfer, taking into account factors such as the adequacy of protection afforded to the personal data, transfer-related risks, the categories of data being transferred, the purposes of the transfer, and the level of personal data protection available in the recipient jurisdiction.

GR 33/2026 also provides several transfer mechanisms that may be relied upon, including transfers to jurisdictions with an equivalent level of personal data protection, standard contractual clauses, and binding corporate rules applicable within a corporate group.

Conclusion

GR 33/2026 does not only implement the framework established under the PDP Law but also introduces a range of more detailed operational, governance, and documentation requirements. Key areas that may have the most significant impact on businesses include maintaining records of processing activities, establishing data retention policies, conducting DPIAs, implementing more prescriptive security measures, facilitating the exercise of data subject rights, appointing and empowering PDPOs, and strengthening governance over cross-border personal data transfers.

This Client Alert is provided for general informational purposes only and does not constitute legal advice. Please contact us should you require further information regarding the implications of GR 33/2026 on your business activities.

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PROHIBITION ON LAND CLEARING BY FIRE

Mon, 31 Aug 2026 03:32:27 +0000

PROHIBITION ON LAND CLEARING BY FIRE

Indonesian environmental laws and regulations prohibit land clearing by fire as part of the broader prohibition against activities that cause environmental pollution and/or damage. However, a limited exception applies to land clearing by fire conducted in accordance with local wisdom (kearifan lokal). Under this exception, several regional governments have adopted regulations permitting limited and controlled burning practices, including Regulation of West Kalimantan Province No. 1 of 2022. Such practices allow the burning of up to 2 (two) hectares of land per household for the cultivation of local plant varieties, subject to the establishment of adequate firebreaks to prevent the spread of fire.

In response to recurring forest and land fires and the heightened risk of such incidents during the current dry season, the Minister of Environment/Head of the Environmental Control Agency of the Republic of Indonesia (the “Minister”) issued the Circular Letter No. 16 of 2026 regarding the Prohibition on Land Clearing by Fire on 10 August 2026 (the “Circular Letter”). The Circular Letter was issued amid concerns over the adverse impacts of forest and land fires on air quality, public health, ecosystems, and greenhouse gas emissions.

The Circular Letter is addressed to all governors, regents, and mayors (collectively, the “Regional Heads”) as a measure to strengthen the prevention and mitigation of forest and land fires.

The following are several key provisions of the Circular Letter:

1. Prohibition, Moratorium, and Law Enforcement Policies

In connection with recent reports concerning major forest and land fires in Kalimantan and Sumatra, through the Circular Letter, the Minister requests the Regional Heads to:
a. establish regional policies prohibiting land clearing by fire;
b. impose a moratorium on regional regulations that permit land clearing by fire, including those that allow limited and controlled burning practices; and
c. conduct strict supervision and impose administrative sanctions, fines, and/or criminal penalties for any violation.

2. Coordination for the Prevention and Mitigation of Forest and Land Fires

The Minister requests the Regional Heads to coordinate with the Environmental Agency, Regional Disaster Management Agency, Forestry Agency, the Indonesian National Armed Forces, the Indonesian National Police, and other relevant agencies to strengthen forest and land fire prevention and mitigation efforts. Such measures include conducting regular integrated patrols, providing adequate fire control facilities and infrastructure, increasing supervision in fire-prone areas, and carrying out public awareness campaigns.

3. Monitoring of Peatland Groundwater Levels

The Minister requests the Regional Heads to periodically monitor peatland Groundwater Levels (Tinggi Muka Air Tanah – “TMAT”), particularly in areas prone to forest and land fires. Where TMAT levels indicate high-risk or very high-risk conditions, the Regional Heads are requested to promptly undertake rewetting measures and ensure that canal blocks and water storage facilities remain functional and properly maintained.

4. Measures to be Taken by Business Actors

The Minister requests the Regional Heads to ensure that business license holders maintain adequate human resources and sufficient forest and land fire prevention and control facilities and infrastructure to respond effectively to fire risks.

5. Imposition of Sanctions

As noted in Section 1(c) above, the Minister requests the Regional Heads to conduct strict supervision and impose administrative sanctions, fines, and/or criminal penalties for any violation.

Under Indonesian environmental laws and regulations, any person who clears land by fire may be subject to imprisonment and/or a fine. The legal consequences may extend beyond individual perpetrators, as Indonesian environmental law also recognizes corporate criminal liability.

Where an environmental crime is committed by, for, or on behalf of a business entity, criminal sanctions may be imposed on the business entity and/or the individual who ordered or led the commission of the offense. Likewise, where the offense is committed by a person acting within the scope of his/her employment or other relationship with a business entity, liability may extend to the person who gave the instruction or directed the conduct, irrespective of whether the offense was committed individually or jointly.

Implications for Business Actors

Although the Circular Letter does not automatically repeal existing regional regulations, it underscores the central government’s intention to strengthen oversight and enforcement of the prohibition on land clearing by fire. Notably, the direction to impose a moratorium on regional regulations permitting such practices, including limited and controlled burning based on local wisdom, signals a significant tightening of the regulatory framework governing forest and land fire prevention. Businesses involved in land-based activities should therefore closely monitor further implementing measures and enforcement developments at both the central and regional levels.
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 the provisions on the prohibition on land clearing by fire or related matters.

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IMPORTATION AND EXPORTATION OF HORTICULTURAL SEEDS

Fri, 21 Aug 2026 06:56:05 +0000

IMPORTATION AND EXPORTATION OF HORTICULTURAL SEEDS

The Ministry of Agriculture of the Republic of Indonesia has issued the Regulation of the Minister of Agriculture (“MOA”) No. 14 of 2026 regarding the Importation and Exportation of Horticultural Seeds (“RM 14/2026″), which came into effect on 31 July 2026. This regulation replaces the Regulation of the MOA No. 15/PERMENTAN/HR.060/5/2017, as amended several times, most recently by the Regulation of the MOA No. 26/PERMENTAN/HR.060/5/2018. RM 14/2026 was enacted to support the availability of adequate and sustainable seed supplies, promote the development of the domestic seed industry, preserve genetic resources and genetic diversity, maintain biosafety, and enhance the competitiveness of Indonesia’s horticultural seed trade.

The following are several key provisions introduced under RM 14/2026:

1. Seed Importation

Under RM 14/2026, business entities, government agencies, and individuals are permitted to import horticultural seeds into Indonesia, subject to obtaining a seed import permit (izin pemasukan benih) issued by the MOA. This provision emphasizes that all seed importation activities are subject to government control to ensure seed quality, biosafety, and the protection of national interests.

RM 14/2026 provides clarity on the purposes and requirements for importing horticultural seeds into Indonesia by specifying the categories of permitted imports and the technical requirements applicable to each category. A seed import permit can be issued for various purposes, including the registration of horticultural varieties for commercial circulation, the procurement of quality seeds for commercial activities, and seed development programs intended to support export-oriented production.

2. Special Requirements for Genetically Engineered Seeds and Quarantine Risks

RM 14/2026 reinforces the regulatory framework governing the importation of seeds derived from genetically engineered products. Such imports are permitted only after the applicable biosafety requirements have been satisfied and a recommendation has been obtained from the Biosafety Commission for Genetically Engineered Products (Komisi Keamanan Hayati Produk Rekayasa Genetik).

RM 14/2026 also introduces additional safeguards for first-time imports. Where seeds are imported for the first time from a particular plant species or country of origin, applicants may be required to undertake a Pest Risk Analysis as part of the import licensing process.

3. Enhanced Quality Control and Relabelling Obligations

RM 14/2026 also strengthens the quality control regime for imported seeds. Under the regulation, imported seeds that have undergone quality testing must be repackaged and relabelled to include the relevant quality test results, providing transparency regarding the quality standards of the seeds being distributed in Indonesia. The required quality testing may be conducted either by the relevant government authority or by an accredited or certified laboratory, reflecting the government’s effort to ensure that imported seeds meet the applicable quality requirements before being marketed or used domestically.

4. Simplification and Certainty of Licensing Timeframes

RM 14/2026 further enhances the digital licensing framework by requiring all permit applications to be submitted and processed electronically through the agricultural licensing system integrated with the Indonesia National Single Window (“INSW”). Applicants must submit the relevant administrative and technical documents in accordance with the purpose of the importation or exportation.

For seed import permits, the document completeness review must be carried out within 2 (two) working days, followed by a verification and validation process of up to 5 (five) working days. Once the application is verified as complete and compliant, the Director General of the MOA will issue the seed import permit in the form of a Ministerial Decree.

In relation to seed export permits, the administrative review must be completed within 1 (one) working day, while the verification and validation process is subject to a maximum timeframe of 3 (three) working days.

Applications that are not rejected within these prescribed timeframes will be deemed approved.

RM 14/2026 provides that both seed import permits and seed export permits remain valid for the relevant calendar year and expire at year-end, regardless of the date of issuance.

5. Post-Licensing Obligations and Reporting Requirements

RM 14/2026 also strengthens post-licensing compliance requirements. Permit holders (seed import permit and seed export permit) are required not only to submit the necessary documentation to the relevant quarantine authorities and report the implementation of their activities, but also to ensure that any seed development or cultivation activities are carried out in accordance with the plans approved during the licensing process. In addition, realization reports must be submitted to the MOA to demonstrate compliance with these commitments.

6. More Stringent Administrative Sanctions

RM 14/2026 introduces a more detailed framework of administrative sanctions for violations of licensing requirements or seed usage obligations. Applicable sanctions may include written warnings, permit revocation, product withdrawal from the market, and prohibition from obtaining new permits for a period ranging from 1 (one) to 2 (two) years.

These sanctions may be imposed, among other things, for the submission of inaccurate or misleading documents, the use of seeds for purposes inconsistent with the approved permit, violations of relabelling obligations, failure to comply with reporting requirements, and failure to fulfil seed destruction obligations in certain activities such as testing, promotion, or exhibitions.

Conclusion

The most significant change introduced under RM 14/2026 is the strengthening of the purpose-based licensing framework for seed imports, accompanied by more detailed technical requirements, greater certainty in permit processing timelines, enhanced post-licensing compliance obligations, and the implementation of more stringent administrative sanctions.

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STRENGTHENING BP BATAM’S AUTHORITY IN THE MANAGEMENT OF GOODS TRAFFIC

Fri, 14 Aug 2026 06:28:07 +0000

STRENGTHENING BP BATAM’S AUTHORITY IN THE MANAGEMENT

OF GOODS TRAFFIC

The Government of the Republic of Indonesia has issued the Government Regulation No. 23 of 2026 regarding the Second Amendment to the Government Regulation No. 41 of 2021 regarding the Administration of Free Trade Zones and Free Ports (“GR 23/2026“), which came into force upon its enactment on 12 May 2026. GR 23/2026 amends several provisions governing Free Trade Zones and Free Ports (Kawasan Perdagangan Bebas dan Pelabuhan Bebas – “ KPBPB“), particularly those relating to the movement of goods and the authority of the Batam Indonesia Free Zone Authority (Badan Pengusahaan – “BP Batam“).

Prior to the enactment of GR 23/2026, the importation of goods from outside the customs territory into a KPBPB was generally not subject to restrictions, except for reasons relating to consumer protection, public health, safety, and environmental protection. Where exemptions to such restrictions were required, the authority to grant them rested with the regional council. The regional council is the body responsible for policy formulation, guidance, and oversight of KPBPB administration (“Regional Council“).

According to the elucidation of GR 23/2026, the high volume of trade, logistics, and industrial activities in Batam has created a need for faster, more integrated, and accountable decision-making processes. In support of the ease of doing business and the creation of a more conducive investment climate, the Government has also refined the regulatory framework concerning the importation of goods and forestry-sector requirements by delegating certain authorities to BP Batam.

The key amendments introduced under GR 23/2026 are as follows:

1. Introduction of Article 64 Paragraph (4a)

One of the changes introduced by GR 23/2026 is the insertion of Article 64 paragraph (4a) into GR 41/2021. This provision specifically stipulates that exemptions from restrictions on the entry of goods into the Batam KPBPB may be determined by the Head of BP Batam after obtaining consideration from the Regional Council.

Prior to GR 23/2026, exemptions from restrictions on the entry of goods into KPBPB were determined directly by the Regional Council. GR 23/2026 introduces a special arrangement for the Batam KPBPB by transferring the authority to determine such exemptions to the Head of BP Batam, subject to prior consideration by the Regional Council.

This amendment applies exclusively to the Batam KPBPB. Article 64 paragraph (4), which authorizes the Regional Council to determine exemptions from restrictions on the entry of goods, remains applicable to KPBPB outside Batam.

Accordingly, the amendment does not eliminate the role of the Regional Council, but rather shifts operational decision-making authority to BP Batam while preserving the Council’s oversight and coordination functions.

2. No Change to the Fundamental Principles on Prohibitions and Restrictions

GR 23/2026 does not alter the substantive rules governing prohibited and restricted goods within KPBPB. Instead, the amendments focus on the mechanism and authority for granting exemptions from such restrictions.

Where the Regional Council previously held sole authority to grant exemptions, GR 23/2026 establishes a specific mechanism for the Batam KPBPB, authorizing the Head of BP Batam to determine exemptions from restrictions on the entry of goods after receiving consideration from the Regional Council.

As a result, the decision-making process for granting exemptions in the Batam KPBPB is no longer vested solely in the Regional Council, but now involves BP Batam as the authority responsible for issuing the final determination. This amendment strengthens BP Batam’s role in decisions relating to the entry of goods into the Batam KPBPB, while the Regional Council continues to perform its advisory and supervisory functions.

3. Amendments to Annex II

In addition to the changes regarding exemption authority, GR 23/2026 also revises Annex II of GR 41/2021, which sets out certain basic requirements applicable within the Batam KPBPB.

The revised Annex II introduces several forestry-sector approvals as part of the applicable requirements, i.e.:

a. an approval of forest utilization commitments;

b. a principle approval for the utilization of environmental services within nature reserve areas, conservation areas, and game parks; and

c. an approval for the release of forest areas.

According to the General Elucidation of GR 23/2026, these additional requirements are intended to align the regulatory framework governing the utilization of forest areas while supporting business activities within the Batam KPBPB.

Conclusion

In general, GR 23/2026 marks a significant strengthening of BP Batam’s role in the management of goods traffic within the Batam KPBPB by granting it the authority to determine exemptions from restrictions on the entry of goods, subject to consideration from the Regional Council. In addition, the regulation introduces adjustments to several basic requirements in the forestry sector applicable within the Batam KPBPB.

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 BP Batam’s Authority in the Management of Goods Traffic or related matters.

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CARBON TRADING THROUGH THE CARBON EXCHANGE

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.

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MANPOWER INSPECTION

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.

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IMPORT POLICY REFINEMENTS THROUGH ACCELERATED LICENSING PROCEDURES

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.

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