Legal Updates for January 2020

New Regulation on SOE Procurement: Redefining SOE Subsidiary and SOE-Affiliated Company

After the issuance of Presidential Regulation No. 16 of 2018 on Public Procurement of Goods and Services, the public procurement landscape in Indonesia underwent another change when the government issued the Minister of State-owned Enterprise Regulation No. PER-08/MBU/12/2019 on Guideline for Procurement of Goods and Services by State-Owned Enterprise ("SOE") ("New Regulation"). The New Regulation supersedes the entire previous regulation on the same subject.

The key changes introduced in the New Regulation relate to following:

(a)      Qualification as an SOE subsidiary or SOE-affiliated company

(b)      Utilisation of state budget

(c)       Optional adoption of the New Regulation

(d)      Additional requirements for direct appointment

(e)      Priority for domestic products

Indonesia's Legal Landscape in 2020: Prioritised Legislations and Omnibus Law

On 16 January 2020, the Legislation Body of the House of Representatives, the Law Drafting Committee of the Senate and the Minister of Law and Human Rights reached an agreement on Indonesia's National Legislation Program (often referred to as Prolegnas or Program Legislasi Nasional) ("Program").

As in the previous years, this year's Program contains a list of priority bills. At the start of its term of office, the Parliament will establish the Program based on the legislative priority of each of the above institutions. The Program may be evaluated yearly, along with the preparation and determination of the annual priority bills prior to the stipulation of the law on annual state budget (Anggaran Pendapatan dan Belanja Negara or APBN).

Out of 248 bills included in the Program, at least 50 bills have been established as annual priority bills. Four of these are omnibus bills that deal with job creation, state capital, tax and pharmacy.