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Overview

Laws and regulations: An overview of the current legal environment
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MINING LAW: Mining permits (IUP), Small-scale mining permits (IPR) and special mining permits (IUPK) constitute the mining permit regime under the new Law No. 4 of 2009 concerning mineral and coal mining. The mining industry is now classified into: • mineral mining, which includes radioactive mineral mining, metals mining, non-metals mining and stone quarrying; and • coal mining. Unlike…

Overview

Reshaping the environment: An overview of the tax system and regulations for potential investors
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The Indonesian tax system is mainly based on three tax laws – the General Tax Provisions and Procedures Law, the Income Tax Law, and the Value-Added Tax (VAT) and Luxury Sales Tax (LST) Law. The tax reforms, which started in 2008, covering amendments of the above laws, were completed in 2010. Subsequent to the commencement of the new laws, the government issued a number of implementing regulations…

Overview

CONTENTS INDONESIA 2012:
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COUNTRY PROFILE Island life: A rich and colourful archipelago POLITICS Rising to the challenge: Growth and reform have continued despite difficult conditions Interview: President Susilo Bambang Yudhoyono At the helm: Chairing ASEAN presents an opportunity to increase regional influence Interview: Abdullah Gül, President of Turkey Interview: Marty Natalegawa, Minister of Foreign Affairs Party lines:…

Overview

Waking up to tourism: Aceh blends history, architecture and reminders of the 2004 tsunami
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There are plenty of idyllic tourist spots in the Indonesian archipelago, some of them topping the wish lists of tourists worldwide. Less known but finally in bounds is a fascinating new option: Aceh. The semi-autonomous region at the westernmost point in the country is emerging from decades of isolation, and both locals and visitors are waking up to the possibilities of tourism. TIME FOR A…

Overview

The costs they cause: The government enacts new rules on cost recovery
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On June 15, 2011 the Indonesian Petroleum Association submitted to the Indonesian Supreme Court a petition for judicial review against Government Regulation Number 79 Year 2010 concerning Recoverable Operational Costs and Income Tax Treatment for the Upstream Oil and Gas Industry, because certain provisions of the regulation have seriously taken a toll on the upstream industry in Indonesia. Once…
Interview

Marty Natalegawa, Minister of Foreign Affairs: Interview
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Interview:Marty Natalegawa What are the main obstacles to achieving the ASEAN integrated economic community by 2015? MARTY NATALEGAWA: The concept of integrating and synergising an economic community of 10 sovereign nations, all of which have their own economic concerns and priorities, is fundamentally challenging. However, ASEAN long ago recognised the importance of achieving this objective.…
Interview

Hotbonar Sinaga, CEO, Jamsostek: Interview
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Interview:Hotbonar Sinaga What is your position on the potential merger of the four major government-managed national social security providers (SSPs)? HOTBONAR SINAGA: This is not a good idea. These organisations were originally created by segmenting employees into various categories – civil servants, military service, private sector, etc. Each category is governed by totally different employment…
Interview

Gatot Suwondo, President Director, Bank Negara Indonesia (BNI): Interview
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Interview:Gatot Suwondo To what extent is lending still considered conservative? Are we likely to see loan-to-deposit ratios (LDRs) increase over the medium term? GATOT SUWONDO: Even though more than a decade has passed since the financial crisis of 1998, the banking industry remains prudent when it comes to lending. Our LDR is conservative compared to other countries in the region. However,…
Interview

Kuntoro Mangkusubroto, Head, Presidential Delivery Unit (PDU): Interview
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Interview:Kuntoro Mangkusubroto What are the strategic priorities in securing improved economic conditions for the country, and how will these be implemented? KUNTORO MANGKUSUBROTO: The PDU was established in 2009 to address the lack of delivery of infrastructure projects and poor coordination between ministries. Our focus for 2012 has to be on improving the overall infrastructure of the country. When…
Interview

Hatta Rajasa, Coordinating Minister of Economy: Interview
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Interview:Hatta Rajasa Which key reform measures will remove administrative hurdles and encourage private investment? HATTA RAJASA: Our primary focus has been to address issues related to land and land acquisition. With this in mind, we have revised policies that deal with private participation in infrastructure development by clarifying the issues of unsolicited projects, provision procedures…