The indonesian goverment has published new circular or Surat Edaran No.12/2022 regarding International Travelers Health Protocol during the Pandemic.
The following are the updates mentioned in the new SE
Upon arrival, international travelers must perform PCR test and are required to undergo quarantine with the following conditions:
Quarantine for 7 days for international travelers who have received the first dose of vaccine
Health monitoring for 24 hours for international travelers who have received the second or third dose of vaccine
international travelers under 18 years of age and requiring special protection, the duration of quarantine will follow their parents or travel companions.
Place of accommodation for quarantine or health monitoring must be certified by Indonesia COVID-19 Handling Task Force, Ministry of Health or obtain certificate from Local Health Department.
If the results of the PCR test upon arrival show positive results, follow-up will be carried out with the following provisions:
if asymptomatic or experiencing mild symptoms, isolation or treatment is carried out in isolation hotels or centralized isolation facilities established by the government; or
if have moderate or severe symptoms, and/or with uncontrolled comorbidities, isolation or treatment is carried out at a COVID-19 referral hospital
the cost of isolation/treatment for foreigners is borne independently, while for Indonesian citizens is borne by the government.
International travelers are required to perform a second PCR test with the following conditions:
on the 6th day of quarantine for quarantine with a duration of 7 days; or
independently on the 3rd day after arrival in the territory of Indonesia, for travelers conducting health monitoring with a duration of 24 hours.
How can Double M help?
Double M is providing market entry solution services in South-East Asia. Should you have any inquiries, please contact us at info@double-m.co
Food Product Registration in Indonesia – In Indonesia, one of the most regulated sectors is the food and beverage industry. This provides a sense of security and assurance to consumers. To get a permit, you have to go through various government bodies. This need is to be able to distribute and sell kinds of processed food products to the Indonesian market.
However, when you decide to register and sell a product, you must first meet the requirements and have your facility inspected and certified by BPOM ( National Food, and Drug Agency ). This facility inspection and certification is called an SMKPO Certificate. Thus, what is the application process? Are there any changes to the rules? Let’s see the review.
Objectives of SMKPO Certification
1. Product Control
These to maintain the quality of food and beverage products consumed by the public remain safe and of good quality.
2. Regulation and Standardization
Based on BPOM Decree No. 21 of 2021, define that importers and distributors have to regulations and standardization related to Processed food safety management.
3. Post-Marketing Prevention
The form of maintenance and monitoring of product safety that has been circulated to the market or the public must go through a process, including sampling, laboratory testing, an inspection of production and distribution facilities, nor the process of investigation and law enforcement.
How is the SMKPO Application Process?
Based on the latest regulations, BPOM Decree No. 21 of 2021 explains that the SMKPO is a renewal of BPOM (Under Province Government Bodies) recommendations based on inspection results, but currently become SMKPO that kind of proactive control. All processes are carried out independently by the importer or distributor to obtain the SMKPO certificate. Here are some steps that you can do, check in full.
1. Business Actors
The first stage is the importer or distributor registers the company in advance for the SMKPO registration process.
2. Account Registration
The continuous process is registering an account to continue the SMKPO process related to the business field you want to register.
3. Enter the System and input data
The user account is already active and can directly carry out the data input process, at this stage all the required requirements must be complete.
4. Check Documents
All documents that have been put in should be fully reviewed that there are no errors.
5. Payment Process
If the data input and completeness of the documents are complete, the next step is only to process the payment.
6. Issuance of Certificates
The SMPKO certificate will be issued and will be valid for 5 years.
Difference between New and Previous Facility Inspection Process
Based on the latest regulation from BPOM Decree No. 21 of 2021, it was explained that there were several changes related to the facility inspection process. Previously, the application for inspection facilities had to go through several manual provisions, one of which was the Facility and Building Inspection (PSB). However, the latest regulations explain that all processes are carried out online and self-assessment per semester. In addition, regarding the inspection process, the BPOM will only go to the field if needed, for example, lack of documents, etc.
Here are some differences between the previous and the latest regulations, check below:
PSB is a Requirement for Product Registration to e-reg BPOM
PSB is a requirement for Product Registration to e-reg BPOM
4
PSB has no logo
SMKPO has a logo that allows appearing on Label Design/Packaging
5
PSB Registration has On-Site Inspection by BPOM and is mandatory
SMKPO registration has on-site Inspection by BPOM if needed only
6
PSB is a Registration is Under BPOM
SMKPO registration is under BPOM
7
The applicant must Bring Hard Copy Document Registration to BPOM Directly
The applicant submitted the Registration document to https://e-sertifikasi.pom.go.id/
8
PSB needs to Renewal 6 Months Prior PSB Validity Period Ends
SMKPO needs to renewal 6 months prior PSB validity period ends
9
There is no Self-assessment/internal audit
Applicants are required to conduct an internal audit or self-assessment of food distribution facilities every 6 months
10
There is No Semester Report to BPOM
The applicant must submit the self-assessment report to BPOM by https://e-sertifikasi.pom.go.id/
How can Double M help?
Double M is providing market entry solution services in South-East Asia including BPOM Registration. Should you have any inquiries, please contact us at info@double-m.co
The Law on Harmonization of Tax Regulations in Indonesia (UU HPP), Law No. 7 of 2021 regulated on October 29 2021 – Nearing the end of this year, a new regulation on Tax activities in Indonesia will attract a lot of attention and questions. Starting from 2022, the taxpayers of this country must bear in mind the changes on their tax calculation.
The appearance of a tax harmonization law is a new opportunity for Indonesia, especially in getting fresh injections of funds and reducing the deficit by 2022. CORE Indonesia economist Yusuf Rendy also sees the HPP Law as an effort by the government to meet future needs. So, is the HPP Law part of structural reform on business in Indonesia? Read more.
History of the Tax Regulations in Indonesia
The Law of Harmonization of Tax Regulations will be enforced as to perform strategic policy based on the previous regulations regarding Tax in Indonesia, as such :
Amendment on Law No. 6 year 1983 concerning the General Terms and Conditions on Taxation, previously amended by Law No. 16 of 2009 concerning the Stipulation on Government Regulation in Lieu of Law (PERPPU) No. 5 of 2008.
Amendment on Law No. 7 year 1983 concerning the Withholding Tax, previously amended with the latest Law No. 36 of 2008.
Amendment on Law No. 8 year 1983 concerning the Value Added Tax on Goods and Service and Value Added Tax on Luxurious Goods, previously amended with the latest Law No. 42 of 2009.
Amendment of Law No. 11 year 1995 concerning Customs, previously amended with the latest Law No. 39 of 2007.
Forms of Indonesian Tax Reform Section
The enforcement of the Law on the Harmonization of Tax Regulations is part of the reform process. Not only focus on administration but also impact on policy. Thus, its presence becomes a stepping stone for Indonesia to be much more stable in its economical growth moving forward.
Sri Mulyani (Minister of Finance) explained that the HPP Law provides space for Indonesia to continue developing the existing economic sector. Not only that, this is part of a form of a sustainable economy, equity, inclusiveness, and supporting human resources who can compete and have quality in the existing fields.
The existence of the HPP Law is the government’s commitment to turn the situation from a crisis into an opportunity. During the Covid-19 pandemic, she explained that many countries were affected by the domino effect of the pandemic, causing the economy to decline and income to be polluted. Whilst income is reduced, the uprising need of the country is unavoidable if there is no strategic step.
The existence of the HPP Law provides an increase in sustainable economic growth. This aspect allows the economy to be wiser and the potential for state revenues to be optimally regulated.
The world economy is declining due to a prolonged pandemic, the HPP Law is expected to be a solution to overcome these problems. So that national development will soon be realized, and produce a competitive and prosperous Indonesian nation.
Results of the HPP Law for Indonesia
There are many significant roles from the presence of the HPP Law, the need for better data integration, and minimizing gaps that are detrimental to the state. In the opinion of the Director of the Center for Economic and Legal Studies (Gelios), he explained that the HPP Law is good news for national taxation because it forms a more focused and measurable database.
1. Number of ID cards Become Tax ID
Creating data in one large database is indeed the dream of the Indonesian government, this is in line with the presence of the HPP Law. To simplify the process of monitoring and administrative efficiency, the Identity Number (Nomor Induk Kependudukan – NIK) will become the Taxpayer ID Number (Nomor Pokok Wajib Pajak – NPWP). This requirement only applies to individual taxpayers (Wajib Pajak Orang Pribadi – WP OP). However, business entities will have their Business Identification Number (NIB) be recognized as the Taxpayer ID Number.
Through the Director-General of Taxes at the Ministry of Finance, Suryo Utomo explained whether this policy regarding the Taxpayer ID will take effect in 2023. Focusing on 2022, the Government of Indonesia is still in the preparation stage regarding information systems and technology optimization to assist this enormous integration.
2. Value Added Tax and Taxable Income Rates
Value Added Tax Rates
The regulation clears out several sectors of goods and services from the list of taxable goods and services, previously stipulated in Law No. 8 year 1983 as detailed in below table :
Then the HPP Law will also impose increase rates on VAT of 10% to : 11% by April 2022 and 12% by the latest January 2025.
Taxable Income Rates
The Ministry of Finance website explained that the Law on the Harmonization of Tax Regulations has ratified several changes related to VAT and WHT rates. For Non-Taxable Income (PTKP) rates yearly,please see below table as reference :
Furthermore, the stipulation of the HPP Law provides an overview of tax individuals earning (PKP) has only 2 points on change, which previously the tax layer is up to IDR 50 Million on Taxable Income, with this regulation it is now up to IDR 60 Million (with no changes on the rates) and the Taxable Income for Income with layer more than IDR 5 Billion will be taxed 35 percent. These changes are part of social justice for all Indonesian people, especially in the government’s alignment with individual MSMEs and corporate MSMEs. In contrast to individual taxes, the HPP Law provides attractive concessions for foreign investors doing business in Indonesia. Because, there is a significant determination that Corporate Income Tax is only 22 percent while previously the rate for Corporate Income Tax is on 28 percent, even the lowest for the Asian region. The focus and goal are to maintain an increasingly better investment climate, it’s predicted that in the following years Indonesia will receive a lot of foreign injections, so it is not surprising that the Corporate Income Tax is given lower thanks to this regulation, which for business owners and operators, providing it feels like a mutually beneficial form. The difference of across the world are seen in the Average Income Tax of ASEAN (22.17%), OECD Countries (22.81%, American countries (27.16%), and G-20 countries (24.17%).
3. Carbon Tax
Delivering the impact of sustainable economic progress, Indonesia has a significant role in realizing a healthy economy and reducing exhaust emissions that affect climate change. Through the HPP Law, the government provides a tax on carbon in the steam power plant (PLTU) sector and coal sector. The fare is at minimum of Rp. 30,000 per kilogram of carbon dioxide equivalent (CO2e).
Other than that the Carbon Tax will also be calculated from the purchase of goods consisting carbon, by the end of calendar year on the activities producing carbon emission in specific amount or by other time as will be furtherly stipulated by the Government or based on the Government Regulation.
The process is gradual, must be seen and adjusted from the green economy roadmap. However, those whose activities are related to the participation of carbon emission trading, carbon emission development and/or other mechanism stipulated through the governed regulated law in the filed of environment, might have the access to carbon tax reduction.
The terms related to carbon tax will be enforced on April 1 2022.
4. Tax Amnesty volume II
The results of the ratification of the HPP Law explain that the Tax Amnesty program or the voluntary disclosure program is only valid for six months. The implementation itself will take place from 01/01/2022 – 30/06/2020. Thus, the Indonesian government provides an opportunity for taxpayers (WP) to report and disclose voluntarily.
Having a good and measurable state income, providing a much healthier APBN effectiveness. Especially in the functions of distribution, allocation, and stabilization to create a just and prosperous society. This will affect the management of state spending that is more qualified and financing that is more attractive, innovative, and sustainable.
2. Investment Trends Will Increase Positively
The determination of the company income tax at 22 percent makes Indonesia an attractive field to invest in South-East Asia market. Of course, this is an advantage for both parties in investing, because Indonesia is one of the lowest income tax earners for the ASEAN region and several other countries.
3. The Right Steps to Overcome the Crisis
The COVID-19 pandemic has affected the economic sector, a disaster that has lurked for almost two years and is still ongoing today has hit many countries. The government’s role in ratifying the HPP Law is a strategic and rapid part of recovering from these haunting problems.
What is the Biggest Impact of Businessmen Regarding the Enforcement of the HPP?
The focus of the Indonesian government is to invite local and foreign investors to start investing in Indonesia. The enactment of the HPP Law provides an increasingly attractive and competitive global economic climate. Especially with the tax reform, all state products can be managed and regulated optimally.
On the other hand, the Government of Indonesia takes part in reducing the impact of global warming, thereby providing quality and sustainable economic growth. That way, the business sector gets maximum profit and can develop its business direction optimally in the future.
How can Double M help?
Double M is providing market entry solution services in South East Asia including tax and legal services. Should you have any inquiries, please contact us at info@double-m.co
Protocol Covid 19 Prevent Omicron Variant – The Indonesian government decided to extend the quarantine period for foreigners and Indonesian citizens from abroad. Previously from 7 days to 10 days according to SE No. 23/2021. The impact is caused by Omicron Variant (B.1.1.529) from South Africa and Botswana, so the regulation is to prevent further spread of transmission.
The rules take effect on Friday (03/12) at 00:01 and are continuously being evaluated. In addition, immigration also issued the rule contained in SE No. IMI-0270.GR.01.01/2021. What are the contents of the rules? Check out the full explanation.
The latest protocol Covid-19
Based on international travel during the pandemic, must follow the latest rules SE No. 23/2021, including
Temporarily closing the entry of Foreign Citizens (WNA)
Either directly or in transit in a foreign country, who have lived or visited within 7 – 10 days from the country/region with the following criteria:
Confirmed community transmission of new variants of SARS-CoV-2 B.1.1.529: South Africa and Botswana.
Countries/territories that are geographically close to the country of transmission of community transmission of new variant B.1.1.529 cases significantly: Angola, Zambia, Zimbabwe, Malawi, Mozambique, Namibia, Eswatini, and Lesotho.
International travelers with the status of Indonesian Citizens (WNI)
Allowed to enter Indonesia while still following strict health protocols as stipulated by the Government (self-quarantine for 7 – 10 days) and provides PCR test.
New Rules for Immigrants to Indonesia
SE No. IMI-0270.GR.01.01/2021 (Immigration Directorate) regarding temporary restrictions on foreigners to enter Indonesian territory:
Temporary Refusal
Enter the territory of Indonesia for foreigners who have lived and visited South Africa, Lesotho, Eswatini, Namibia, Botswana, Zimbabwe, Mozambique, Malawi, Zambia, Angola, UK, Norway, Denmark and France within 7 – 10 days before entering the territory of Indonesia.
Temporary Suspension of Granting Visit Visas and Limited Stay Visas
Especially for citizens of South Africa, Lesotho, Eswatini, Namibia, Botswana, Zimbabwe, Mozambique, Malawi, Zambia, Angola, UK, Norway, Denmark and France.
Verify Your Overseas Vaccine – The Circular of COVID-19 Taskforce Number 18 2021 regarding the Health Protocols for International Travel During the COVID-19 Pandemics stipulated that all international travelers, whether Indonesian citizens or foreigners are required to show the card or certification (physically/digitally) of the completion upon receiving the full dose COVID-19 vaccination before entering Indonesia.
The governmental agencies of Indonesia, upon the release of the Circular on September 14 2021, have provided a website to do so, for both Indonesian citizens and foreigners. The website will serve the purpose to register and verify the travelers’ vaccination status.
To be able to register and apply for the verification of COVID-19 vaccination status from abroad, the necessary documents to prepare would be : ID, namely KTP/NIK for Indonesian citizens and passports for foreigners, and the vaccination cards obtain through when vaccinated outside of Indonesia. Additional documents for foreigners are : diplomatic permits from the Ministry of Foreign Affairs or stay permits from immigration.
Please see below the steps of registering your ID in the website and requesting verification on your vaccination status :
Register and request verification through the website vaksinln.dto.kemkes.go.id/sign/in
Verification process by the Ministry of Health (for Indonesian citizens) and by each Embassy (for foreigners)
Verification result will be confirmed through the registered email
Register and Login in the application of PeduliLindungi, complete the account in accordance to the data to activate the Vaccination Status
Obtain the Verification Vaccination Card through the web of pedulilindungi.id
Find the menu Certification Check / Cek Sertifikat and complete the data
Open the application of PeduliLindungi and choose Scan QR Code for check in to public places
The importance of overseas vaccine to be verified are, other than being a requirement to perform several activities in Indonesia, it is also to ease up the process to expedite the activities for both Indonesian citizens and foreigners in Indonesia.
OSS – Risk Based Approach – The Omnibus Law has regulated 11 clusters of Business Sector in Indonesia : some of them are related to our today’s topics on the newly launched OSS system known as the OSS RBA (Risk Based Approach). Those clusters are :
Development on Investment and Business Activities Ecosystem
Business Licensing
Employment
Cooperation and Small & Micro Business Support
Research and Innovation Support
Land Usage
Economic Area
Ease of Doing Business
Central Government Investment and Acceleration of PSN
Governmental Administration
Imposition of Sanctions
The process of the Risk Based Approach Licensing follows the regulated provision in Omnibus Law on Article 6 and Article 7 (1) and Article 7 (7) of Law No. 11 year 2020. The development of this new system has divided the risks into 3 categories : a. low-risk business; b. middle-risk business and c. high-risk business. The implementation of this process follows the Government Regulation No. 5 of 2021.
The process of business licensing is changed into risk-based assessment with the licenses issued of each Approach, as stated :
Low-Risk : Business ID Number (NIB)
Middle-Low Risk : NIB + Standard Certificate (Self Declare)
For Low-Risk Business, the Business ID Number serves as an all-in business license for operational and commercial activities for the Business. As for the Middle-Low Risk Business, the Business ID Number must be followed by a Standard Certificate in a form of a statement letter directly declared by the business owners and will then perform as the license for operational and commercial activities.
However, for Middle-High Risk Business, the requirements of licenses will direct business owners to acquire verification by the related government institutions before performing the operational and commercial activities. And for High Risk Business, the business owners will be required to achieve related Business License (Izin Usaha) before performing the operational and commercial activities.
The determination of Risks are provided in the list Business Classification / KBLI. Before establishing their business, business owners must first follow the determined risk of their chosen KBLI.
Other than the new implementation of OSS-RBA, the Government has also released a new business classification for investment limitation, whilst previously several sectors are limited to foreign-owned ownership, now with the Presidential Regulation 10 of 2021, a lot of sectors are open for 100% foreign-owned ownership. This regulation replaces the Presidential Regulation 44 of 2016 regarding Negative Investment List (DNI) with 350 sectors allowed for limited foreign-owned investment and 20 sectors closed for foreign-owned investment. But. The regulation of Investment Business Sector (BUPM) has only 43 sectors for limited foreign-owned investment; which would help the foreign investors to expand their chosen business activities in Indonesia.
Following this breakthrough of a total makeover in the business licensing, the Indonesia Investment Coordinating Board (BKPM) is preparing 4 drafts of BKPM Regulation to assist the implementation of its new OSS-RBA system; those are :
BKPM Regulation regarding the Implementation of Electronic System of Risk Based Approach Business
BKPM Regulation regarding Guide and Procedures on Implementation of Risk Based Approach Business Licensing and Investment Facility
BKPM Regulation regarding Guide on and Procedures on Supervision of Risk Based Approach Business Licensing
BKPM Regulation regarding Procedures of Fulfilling Criteria and Request of Withholding Tax Facility outside of the Network in Special Economic Zone
In conclusion, it is imperative that all business owners understand the classification of risks through the their intended business activities and while the OSS-RBA system is still in development even until this day, our consultant can give you a more thorough guide on how to acquire the necessary business license for you to explore the biggest market in South-East Asia.
How can Double M help you?
DOUBLE M providing market entry solution services in South East Asia. Should you have any inquiry, please contact us at info@double-m.co
The Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal/BKPM) has released a new regulation requirement of Paid-Up Capital for Foreign Companies in Indonesia and will take effect starting on August 2021. The Regulation, stipulates the latest guidelines and processes on the Service of Risk-Based Investment Licensing and Investment Facility.
The highlighted point for this newly regulated rule is the requirement of Paid-Up Capital for Foreign-Investment Company / PT PMA. Previously, as stipulated in Company Law of Indonesia, the minimum requirement of Paid-Up Capital is 25% of the Authorized Capital (minimum of IDR 10 billion).
Whereas starting from August 2021, the national license-issuing platform, Online Single Submission – OSS, is in transition process based on the regulations of risk-based investment license issuance. And this affects the mind of foreign business owners in Indonesia. Below is the summed up changes of this newly enforced Perka BKPM No. 4 / 2021 :
1.Investment Value (commitment to invest)
Common misconception for business owners is that the Investment Value equals to the Capital. This is to simply clarify that; Investment Value is the commitment of a foreign limited liability company for each of their selected business activities. As we know, Indonesia recognized Business Classification Code / KBLI to determine which is the most suitable license for investors. One KBLI will consist of 5 digits of numbers. Each type of business might have different classification code. So, the investment value will only be incurred upon the business classification code(s) and does not bind the Shareholders of the company to directly inject shares in the same amount of Investment Value. This investment value shall be fulfilled during the time the company is running its business.
The general rule is to commit Investment Value in the amount of IDR 10 Billion per 5 digits business classification code / KBLI. However several sectors might apply different rules :
Trading
IDR 10 billion per the first 4 digits of KBLI
Food & beverage
IDR 10 billion per the first 2 digits of KBLI
Construction
IDR 10 billion per the first 4 digits of KBLI
Industry
IDR 10 billion per 5 digits of KBLI
Property
IDR 10 billion including land & building for one building / residential cluster
IDR 10 billion excluding land & building for several buildings / integrated residential cluster
2. Enforced rule on Paid-Up Capital
Paid-Up Capital for Foreign Owned Company is now changed to ≥ IDR 10 Billion. But, this regulation only applies for :
a company not yet established / established after the enforcement of this regulation
an established company with paid-up capital less than 10 Billion IDR, but has yet to issue NIB (company registration number) and Operational License
an established company with paid-up capital less than 10 Billion IDR, has issued NIB and has not yet issued/secured an Operational License
an established company with paid-up capital less than 10 Billion IDR, has issued NIB and has issued Operational License but has ineffective status
an established company with paid-up capital less than 10 Billion IDR and wanting to change, add, remove or modify its business classification code.
If the recognized company is already established with NIB and effective Operational License, the minimum of Paid-Up Capital is not required to be adjusted. Should your Company has an issue regarding this newly regulated law by the Indonesia Investment Coordinating Board, or you wish to establish a business in Indonesia, you may reach our expert to assist you on the process.
How can Double M help you?
DOUBLE M providing market entry solution services in South East Asia. Should you have any inquiry, please contact us at info@double-m.co
The Indonesian Government’s new policy of PPKM level was officially implemented starting day (26/7/2021) to control the Covid-19 Pandemic. With the reference of Instruction of the Minister of Home Affairs (Inmendagri) concerning the Extension of Micro-Based PPKM and Optimizing the Covid-19 Handling Command Post at the Village and Sub-District Levels to Control the Spread of the Covid-19 Virus.
Several factors serve as references for determining the level of implementation of community activity restrictions (PPKM). From these factors, The Government indicates and puts in technical provisions to regulate social and economic activities restrictions of the community. The following references PPKM level 1-4 which are subject of discussion at the Coordinating Ministry for Maritime Affairs and Investment.
The updated information by today, 21 provinces will implement Level 4 PPKM, 18 provinces will implement Level 3 and 17 provinces will implement Level 2 of community activity restrictions (PPKM).
PPKM Level 4
For level four which was previously called emergency PPKM, the reference indicators are weekly confirmed cases of more than 100 per 100,000 population, weekly treatment of more than 30 per 100,000 population, and weekly bed occupancy rate (BOR) of more than 80%.
Teaching and learning activities 100% (online)
Non-essential sector 0% work from office (WFO); essential sector 25% to 50% WFO depending on the type of service; while the critical sector can be 100% WFO
Supermarket /grocery store/traditional market open at 50% capacity until 08.00 PM
Shopping centers/malls are closed
Construction activities are only for national strategic projects (PSN) and public infrastructure can be at 100% capacity
Restaurants/restaurants only serve to take away
Places of worship are prohibited for congregational activities
Public facilities are closed
Social/cultural/sports activities are prohibited
Wedding receptions are prohibited
Public transportation maximum 70% capacity
For travelers, the requirements are for a vaccine card and a PCR test for airplane passengers, while for other transports, a vaccine card and an antigen test are required
PPKM Level 3 (Transition Two)
The reference indicators for level three are weekly confirmed cases of 65-100 per 100,000 population, weekly treatment 10-30 per 100,000 population, and weekly BOR of 60%-80%. Provisions for social and economic activities :
Teaching and Learning activities 100% (online)
Office activities 25% WFO and 75% WFH
Essential sector activities can be 100% WFO with a strict process
Supermarket / grocery store / traditional market open 50% capacity until 10.00 PM
Shopping centers/malls open until 17.00 with 25% capacity
Construction activities can be 100% capacity with strict processes
Restaurants/restaurants, both stand-alone and in shopping centers can serve meals on-site until 17.00 with a capacity of 25%
Restaurants/restaurants can still serve to take away until 20.00; and special that only serves to take away can operate until 00.00 AM
Places of worship are prohibited for congregational activities
Public facilities are closed
Social/cultural/sports activities are prohibited
Wedding receptions are prohibited
Community celebration activities with a maximum of 25% and without eating on the spot
Public transportation has a maximum of 70% capacity, and for travelers, the requirements are vaccine cards, PCR for planes, and antigens for others
Reference indicator for level two weekly confirmed cases of 40 – 64 per 100,000 population, weekly treatment 5 to 9 per 100,000 population, and weekly BOR of less than 60%. For this level, the provisions are:
Non-essential sector 50% WFO for those who have been vaccinated; essential 100% WFO with two work shifts and critical 100% WFO
Supermarket / grocery store / traditional market open 75%
Shopping center/mall open with 50% capacity
Restaurants with a maximum capacity of 50%
Teaching and learning activities 50% online and 50% face-to-face school
50% capacity of Worship place with strict procedures
50% capacity of Public facilities with strict procedures
50% capacity of Social/cultural/sports activities with strict procedures
50% capacity of Wedding reception with the strict process
Public transportation has a maximum capacity of 100% and for travelers, the requirements are a vaccine card and an antigen test
PPKM Level 1 ( New Normal )
The reference indicator for the level of one weekly confirmed case is less than 40 per 100,000 population, weekly treatment is less than 5 per 100,000 population, and weekly BOR is less than 60%. For this level, the conditions are:
100% WFO non-essential sectors for those who have been vaccinated; essential 100% WFO with two work shifts and critical 100% WFO
Supermarket / grocery store / traditional market open 100%
Shopping center/mall open with 100% capacity
Restaurants/restaurants with a maximum capacity of 75%
100% allowed for face-to-face school with strict procedures
100% allowed for Place of worship with strict procedures
100% allowed for Public facilities with strict procedures
100% allowed for Social/cultural/sports activities with strict procedures
75% capacity of Wedding reception with the strict process
Public transportation has a maximum capacity of 100% and for travelers, the requirements are a vaccine card and an antigen test
How can DOUBLE M help you?
Double M is providing market entry solution services in South-East Asia. Should you have any inquiries, please contact us at info@double-m.co
Previously, The National Task Force for COVID-19 handling in Indonesia has released Circular Note No. 8 2021 on February 9. An addendum of said Circular Note is officially released on July 4 and will come into effect on July 6, 2021. The background of the commencement of Addendum is due to the high counts of transmitted cases of Virus SARS- CoV-2 and new variants of the Virus (known as Alpha, Beta, Delta, and Gamma) in Indonesia, it is imperative for the Government to add particular regulations upon International travels for those intending to enter into Indonesia.
The scope of this Addendum is the same as the original Circular Note in which for international travelers. Several changes and additions can be found in the health protocols in this newly enforced regulation, such changes shall apply to all international travelers.
The summary of changes is as follow :
1. All international travel during Covid-19 pandemic both of Indonesian Citizen or Foreign Citizen is required to follow below conditions :, both of Indonesian Citizen or Foreign Citizen is required to follow below conditions
a. Upon arrival to have re-testing of RT-PCR and required to be in quarantine for 8×24 hours.
b. After 7 days of quarantine, a second RT-PCR test will be performed.
c. If the test result appears negative, the international travelers might leave the quarantine after 8×24 hours and will be confirmed to have completed the quarantine.
d. If the test result appears positive, the international travelers will be medically assisted in the appointed hospital.
2. All international travel During Covid-19 pandemic both of Indonesian Citizen or Foreign Citizen is required to follow below conditions :
a. Indonesian Citizen is to provide vaccination card/certificate (either original or digitally) as proof to have acquired a full and complete dose of COVID-19 Vaccine as a requirement to travel into Indonesia. Foreign Citizen who has not acquired Vaccination in their origin countries will be vaccinated in the quarantine area after the second test of RT- PCR with a negative result.
b. Foreign Citizen is to provide vaccination card/certificate (either original or digitally) as proof to have acquired a full and complete dose of COVID-19 Vaccine as a requirement.
c. Foreign Citizen living in Indonesia and will perform travels either domestically or internationally is required to be vaccinated through the program scheme in accordance to regulated law.
d. The obligation to provide card or certificate of COVID-19 Vaccination (either original or digitally) is excepted for Foreign citizens with diplomatic visa and appointment visa
Pursuing the changes stipulated in Addendum of Circular Note no. 8 of 2021, the steps to travel into Indonesia are as follow :
RT-PCR test requirements for international travelers :
– 3 x 24 hours before departure
– 1 x 24 hour upon arrival
– 7 x 24 hours upon arrival/before completing the 8 x 24 hours of the mandatory quarantine period
As stated previously, the regulation will be applied on July 6th, 2021, and shall remain in force until further notice as the Ministry of Foreign Affairs has informed all related Foreign Missions. Without disregarding the Emergency PPKM of Java-Bali since July 3, the Minister states that the Addendum is to be in sync with the regulations of Emergency PPKM.
Note: DOUBLE M – Summary Addendum of Circular Note No. 8/2021
Commonly misinterpreted and overlapping their own details, Foreign-Owned Company and Representative Office might confuse the business owners to start their activities in Indonesia. This might help you give better insights on what to expect when you pick one of the available options for setting up a new business in the country.
General Overview : Foreign Owned Company
The recognized legal entities in Indonesia are provided in three (three) forms, according to Indonesian law: Limited Liability Company (Perseroan Terbatas / PT), Cooperative / Union (Koperasi), and Foundation (Yayasan). Though, each entity has its own types and variations; the most well-known and variative is the Limited Liability Company (Perseroan Terbatas / PT). Known internationally as one of the most famous business/legal entities, the Limited Liability Company in Indonesia is under the regulated Company Law of Law No. 40 years 2007. Several of its types are : Local Company (Perseroan Terbatas Lokal / PT Lokal), Foreign-Owned Company (Perseroan Penanaman Modal Asing / PT PMA), and Publicly Listed Company (Perseroan Terbatas Terbuka / PT Tbk.). Surely, the difference between Local and Foreign-Owned Companies is on the ownership of shares.
However, due to the regulations and various investment laws, setting up a Foreign-Owned Company in Indonesia might be a hassle to those new to the Indonesian market. This is where Representative Office comes to the rescue. Serving the role of its own name, a Representative Office is an office of representative presence from the foreign principal companies overseas.
General Overview : Representative Office
Having a different form than the Limited Liability Company, a Representative Office (Kantor Perwakilan Perusahaan Asing / KPPA) is more suitable for the initial step of establishing your business. If you have a fully established business overseas, with a status similar to the definitions of Indonesia’s Company, then your business can enter the Indonesian market in the form of a Representative Office. While Company is a more free to roam legal entity and Representative Office is limited to market research and support activities to the foreign principal companies overseas.
Roles : What are the differences?
Limited Liability Company is allowed to perform its intended business activities, with having (at least) one Director, one Commissioner, and two Shareholders upon establishment. The requirements may vary depending on the business activities. Whereas Representative Office is only required to have one Chief of Representative Office (whose role does not overlap with the Directorial-level position in the principal foreign company overseas). The Representative Office, unlike a Limited Liability Company, is unable to perform any profit-related activities. Its ability is limited to only supervise, research, coordinate and support the principal foreign company.
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