During the second period of February 2026, a number of developments in Indonesian laws and regulations were recorded. These developments encompass various types of regulations, including Draft Laws (RUU), Draft Government Regulations (RPP), Presidential Regulations (Perpres), Draft Presidential Regulations, as well as various Ministerial Regulations issued by relevant technical ministries.
Furthermore, during this period, progress was made in the formulation of Draft Government Regulations as implementing regulations of Law No. 6 of 2023 concerning the Stipulation of Government Regulation in Lieu of Law on Job Creation as Law. These draft regulations generally govern technical and operational implementing provisions, including further regulation of specific business sectors. These provisions are intended to provide clarity in the implementation of norms stipulated under the law.
At the level of Presidential Regulations, one of the regulations issued during this period is Presidential Regulation No. 5 of 2026 concerning Financial Rights and Facilities of Ad Hoc Judges. This regulation governs provisions relating to financial entitlements and facilities granted to ad hoc judges in accordance with prevailing laws and regulations.
Fiscal and State Finance Sector
During this period, several Minister of Finance Regulations were issued governing fiscal and state finance aspects, particularly in relation to tax policies and government budget management. One of the regulations is Minister of Finance Regulation No. 7 of 2026 concerning the Management of Village Funds for Fiscal Year 2026, which regulates governance, distribution, and utilization of village funds within the current fiscal year.
In addition, several tax provisions specifically regulate government-borne tax incentives, including:
- Minister of Finance Regulation No. 6 of 2026, governing Article 21 Income Tax on income received by internship participants who are university graduates, borne by the government for fiscal year 2026;
- Minister of Finance Regulation No. 5 of 2026, governing Value Added Tax (VAT) borne by the government in the context of providing assistance for disaster management, particularly disasters occurring in the Sumatra region;
- Minister of Finance Regulation No. 4 of 2026, governing VAT on the provision of scheduled domestic commercial air transportation services for economy class during the Eid al-Fitr 1447 Hijri holiday period, which is also borne by the government in fiscal year 2026.
Additionally, provisions regarding government expenditure standards are regulated under Minister of Finance Regulation No. 3 of 2026 concerning Output Cost Standards in Budgeting for State Ministries/Agencies, along with further provisions under Minister of Finance Regulation No. 2 of 2026, which amends prior provisions relating to regional performance indicators and technical guidelines for the General Allocation Fund (DAU).
Government Administration and Governance Sector
During this period, a number of Ministerial Regulations were issued governing aspects of governance, administration, and internal oversight within ministries and agencies. These includes:
- Minister of Law Regulation No. 10 of 2026 concerning the implementation of the “know your customer” principle for notaries, which regulates the obligation to identify and verify service users in the performance of notarial duties;
- Minister of Home Affairs Regulation No. 4 of 2026 concerning planning for guidance and supervision of regional government administration for 2026, which includes guidelines for the implementation of regional government oversight;
- Minister of Home Affairs Regulation No. 3 of 2026 concerning the review of regional development planning documents and regional financial documents.
Additionally, administrative regulations were also issued within technical ministries, including:
- Minister of Trade Regulation No. 3 of 2026 governing delegation of authority through mandate and delegation in the implementation of personnel administration within the Ministry of Trade;
- Minister of Agrarian Affairs and Spatial Planning/Head of the National Land Agency Regulation No. 2 of 2026 concerning records management within the ministry;
- Coordinating Minister for Infrastructure and Regional Development Regulation No. 2 of 2026 governing procedures and implementation guidelines for handling reports of alleged violations;
- Coordinating Minister for Infrastructure and Regional Development Regulation No. 1 of 2026 concerning conflict of interest management within the ministry.
Manpower Sector
During this period, several provisions in the manpower sector were issued through Minister of Manpower Decrees, including:
- Minister of Manpower Decree No. 65 of 2026 concerning the amount of government assistance for internship programs for university graduates;
- Minister of Manpower Decree No. 44 of 2026, revoking Minister of Manpower Decree No. 628 of 2016 concerning the establishment of an anti-illegal levies unit within the Ministry of Manpower.
Micro, Small, and Medium Enterprises (MSME) Sector
In the MSME sector, regulation was issued through Minister of Cooperatives and Small and Medium Enterprises Decree No. 14 of 2026 concerning the establishment of a Task Force for the Protection and Recovery of MSMEs affected by disasters in several regions, including the Provinces of Aceh, North Sumatra, and West Sumatra.
This provision includes measures for the protection and recovery of business activities for MSME actors affected by certain conditions.
Regulatory developments during this period include the issuance of new regulations as well as the formulation of implementing provisions across various sectors. These regulations consist of both general and technical provisions, forming part of the implementation of government policies in various fields.
For consultation assistance or other legal services from SW Counselors at Law, please contact:
Fanny, S.H.
Senior Associate
T. (+6221) 2222-0200
Bella Siboro, S.H.
Associate
T. (+6221) 2222-0200
