Legal Updates for June 2019

Indonesia Announces New Property Tax Facility Designed to Boost the Economy

As part of its intention to stimulate investment in Indonesia, the Indonesian government through the Ministry of Finance recently announced a series of new property tax facility. The new property tax facility is designed to create a multiplier effect given that the property industry relates to other main industries such as construction, financial, trade, transportation and even the food and beverage industry.

Broadly, the new property tax facility relates to luxury property by imposing an increased limit on the value of luxury property that is subject to Article 22 Income Tax and Luxury-Goods Sales Tax (Pajak Penjualan atas Barang Mewah or PPnBM), and a reduction of the rate of Article 22 Income Tax.

E-Court Registration Is Now Mandatory For Civil Cases

In 2018, the Supreme Court issued Regulation No. 3 of 2018 on Electronic Case Administration in Court (“Regulation”), which requires the electronic filing of a civil case, or commonly referred to as ‘e-court’. Since then, the Supreme Court has continually issued several regulations to implement this.

Most recently, the Supreme Court issued Circular Letter No.04 of 2019 on Requirement to Register Civil Cases Through E-Court ("Circular Letter") as it is of the view that there has been no significant changes made with regards to the implementation of e-court. In essence, the Circular Letter requires all District Court of Special IA Class, IA Class, and all District Courts under the jurisdictions of the Banten High Court, Jakarta High Court, Bandung High Court, Semarang High Court, Yogyakarta High Court, and Surabaya High Court to implement registration of civil cases through the e-court system.