This site uses cookies, if you continue without changing your settings, we'll assume that you are happy to receive all cookies. Click here to learn how to change your cookie settings.

Continue

Business Media Selected for You: January 2018

Business Media Selected for You: January 2018

13 February 2018

Energy and Natural Resources

Regulation caps internal rate of return (IRR) for gas projects at 11%

The Government has issued a regulation on the cost of gas trading in a bid to push the price of industry gas lower, while at the same time giving gas traders and investors a reasonable profit margin. Ministry of Energy and Mineral Resources (MEMR) Regulation Number 58 of 2017 now adopts a 7-11 policy that limits the selling cost of gas traders at a maximum of 7% of gas base price, and sets an IRR cap of 11% for gas infrastructure projects.

Investors are permitted to propose a higher IRR of 12% if the gas infrastructure is built in underdeveloped areas. This regulation is part of President Jokowi's ambition to cut end-user gas prices to below USD 6 per million British thermal units (mmbtu) for seven industrial sectors to strengthen the downstream sector and create a significant multiplier effect on the economy.

Business

Ride-hailing apps enforced

Ministry of Transport Regulation Number PM 108 of 2017 requires ride hailing divers to possess a type A driver's license; submit their vehicles for a roadworthy test; and show affiliation to a legal entity by displaying a sticker.

Penalties for non-compliance includes warnings, fines, and permit suspension/revocation. The Ministry of Transport is to issue warnings in the first 2 weeks of February, before fully enforcing the regulation.

Finance

Bank Indonesia (BI) warns over cryptocurrencies and tightens enforcement

BI has issued a fresh warning about trading in cryptocurrencies like Bitcoin because of the risk of losses to the public and potential threat to financial system stability. Cryptocurrencies are not a legal medium of exchange in Indonesia. BI's regional office in Bali has started working with the local police to curb cryptocurrency transactions.

 

Compiled from the Jakarta Post.

Aston Goad - Foreign Legal Consultant, Indonesia : aston.goad@dnfp.com

Dewi Sawitri - Senior Associate, Indonesia : dewi.sawitri@dnfp.com

Sasha Bharwani - Foreign Associate, Indonesia : sasha.bharwani@dnfp.com

BACK TO LISTING



Our practice areas

Our disputes practice is recognised by Legal 500 Asia Pacific – Indonesia 2018, and our highly skilled and experienced lawyers in our...

Our people

Our team at DNFP has a wide range of backgrounds and its members are well established leaders in the local market. We believe that diversity of...