2020-2021 Investment Window into Indonesia (IWI)

1 12020-2021 Investment Window into Indonesia (IWI)English2 This publication is prepared based on the prevailing laws and regulations effective and publications available as of Desember 2020. These materials and the information contained herein are provided by Deloitte Touche Solution and are intended to provide general information on a particular subject or subjects and are not an exhaustive treatment of such subject(s). This publication contains general information only, and none of Deloitte Touche Tohmatsu Limited, its member firms, or their related entities (collectively the Deloitte Network ) is, by means of this publication, rendering professional advice or services.

2 Before making any decision or taking any action that may affect your finances or your business, you should consult a qualified professional adviser. No entity in the Deloitte Network shall be responsible for any loss whatsoever sustained by any person who relies on this publication and the information contained in it is confidential and should not be used or disclosed in any way without our prior consent. 34 ContentsAbbreviations Foreword A.

3 Introduction to Indonesia 1. General overview2. Demography3. New Investment climate4. Industry overview and opportunities5. Regional snapshot6. Legal and Political System B. Identifying your Investment stage Five stages to organisation evolution C. Legal and regulatory overview for doing business in Indonesia 1. Getting the business started 2.

4 Joint ventures3. Mergers and acquisitions4. Infrastructure5. Good corporate governance implementation6. Capital market7. Banking and lending8. Oil and gas & coal and mineral mining 9. Intellectual property rights10. Dispute resolution11. Land environment and related matters12. Other business-related lawsD. Taxation in Indonesia 1. Tax administration 2. Business taxation3. Taxes on individuals4.

5 Withholding taxes5. Double taxation relief6. Transfer pricing and international tax7. Indirect taxes8. Tax incentives9. Other taxes on corporations and individuals10. Tax facilities during coronavirus disease 2019 pandemic11. Omnibus law on job creation E. Audit and compliance 1. Accounting period2. Currency3. Language, accounting basis and standards4. Audit requirements5. Independence5F. Labor environment 1.

6 Employee rights and remuneration2. Wages and benefits3. Termination of employment4. Employment relationship5. Employment of foreignersAbout Deloitte Contacts 6 ABBREVIATIONSAANZFTAASEAN-Australia-New Zealand FTAAEOIA utomatic exchange of InformationACFTAASEAN-China FTAAHU OnlineOnline public services by Directorate General of General Law Administration (Administrasi Hukum Umum Online)

7 AKFTAASEAN-Korea FTAAMDALE nvironmental Impact Assessment (Analisa Mengenai Dampak Lingkungan)AOIA rticles of IncorporationAPAA dvance Pricing AgreementsAPII mport Identity Number (Angka Pengenal Impor)ATIGAASEAN Trade in Goods AgreementBALB asic Agrarian LawBANII ndonesian National Arbitration Body (Badan Arbitrase Nasional Indonesia )BAPPENASN ational Development Planning Agency (Badan Perencanaan Pembangunan Nasional)BEPSBase Erosion and Profit ShiftingBPJSS ocial Insurance Administration Organization (Badan Penyelenggara Jaminan Sosial)BKPM Indonesia Investment Coordinating Board (Badan Koordinasi Penanaman Modal)BLUP ublic Service Agency (Badan Layanan Umum)BOTB uild-Operate-TransferBPKS tate Audit Board (Badan Pemeriksa Keuangan)BP MIGASE xecutive Agency for Upstream Oil and Gas Business Activities (Badan Pelaksana Kegiatan Usaha Hulu Minyak dan Gas Bumi)BPNN ational Land Agency (Badan Pertanahan Nasional)

8 7 ABBREVIATIONSBPSC entral Bureau of Statistics (Badan Pusat Statistik)BRTBus Rapid TransitBUMNS tate-Owned Enterprise (Badan Usaha Milik Negara)BUMDL ocal Government-Owned Company/Enterprise (Badan Usaha Milik Daerah )BRIBelt and Road InitiativesCAGRC ompound Annual Growth RateCFCC ontrolled Foreign CompaniesCITC orporate Income TaxCPOC rude Palm OilCOVID-19 Coronavirus DiseaseCRSC ommon Reporting StandardCSRC orporate Social and Environmental ResponsibilityDERDebt-to-Equity RatioDKI JakartaSpecial Territory of the Capital City (Daerah Khusus Ibukota) JakartaDGTD irectorate General of TaxesDNIN egative Investment List (Daftar Negatif Investasi )DPDR egional Representatives Council (Dewan Perwakilan Daerah)

9 DPRP eople s Representative Council (Dewan Perwakilan Rakyat)EFTAE uropean Free Trade AssociationEIUE conomist Intelligence UnitEPAE conomic Partnership AgreementsFCPAF oreign Corrupt Practices ActFDIF oreign Direct InvestmentFTA Free Trade AgreementsGCAG overnment Contracting Agency8 ABBREVIATIONSGDPG ross Domestic ProductIAII ndonesian Institute of Accountants (Ikatan Akuntan Indonesia )IBEI mplementing Business EntityICSIDI nternational Centre for Settlement of Investment DisputesIDRI ndonesian RupiahIDXI ndonesia Stock exchange (Bursa Efek Indonesia )IE-CEPAFree Trade Agreement with AustraliaIICPI ndonesian Institute of Certified Public AccountantsIIGFI ndonesia Infrastructure Guarantee FundIIFI ndonesia Infrastructure Finance (IIF)

10 IJEPAI ndonesia-Japan Economic Partnership AgreementILOI nternational Labor OrganizationIPOI nitial Public OfferingISICI nternational Standard Industrial ClassificationIUPM ining Business License (Izin Usaha Pertambangan)KBLII ndonesian Standard Industrial Classifications (Klasifikasi Baku Lapangan Usaha Indonesia )KEKS pecial Economic Zone (Kawasan Ekonomi Khusus)KEPMAS upreme Court Decision (Keputusan Ketua MA)KITEI mport Concession for Export Purposes (Kemudahan Impor Tujuan Ekspor)KNKGN ational Committee on Governance (Komite Nasional Kebijakan Governance)KPMining Authorization (Kuasa Pertambangan)KPPIPThe Committee for Acceleration of Priority Infrastructure Delivery (Komite Percepatan Penyediaan Infrastruktur Prioritas)KPKC orruption Eradication Commission (Komisi Pemberantasan Korupsi)9 ABBREVIATIONSKPPUB usiness Competition Supervisory Commission (Komisi Pengawas Persaingan Usaha)KSEIThe Indonesian Central Securities Depository (Kustodian Sentral Efek Indonesia )