INDONESIA Law and Practice Contributed by: Yogi Sudrajat Marsono, Heru Pamungkas, Agnes Maria Wardhana and Andin Aditya Rahman, Assegaf Hamzah & Partners
• Preparatory examination: prior to the main hearing, the judge may undertake a prepara - tory examination to clarify the lawsuit. The applicant has 30 days to rectify any deficien - cies in information in its lawsuit. • Case examination: the court proceeds to examine the case, with a panel of three judges. The parties are given opportunities to present their arguments. • Judgment: the court renders its judgment, which may involve rejecting, granting or deeming the lawsuit invalid. • Appeals: if a party is dissatisfied with the judgment of the administrative court, they can appeal to the administrative appeals court. If dissatisfied with the decision of the appeals court, they may further appeal to the Supreme Court, whose ruling is final and binding. 4.6 Agreements With Local or Governmental Authorities It is necessary to apply for and obtain licences for all development projects, regardless of the owner or developer. The prevailing laws and regulations do not pro - vide any mechanism to enter into an agreement with local or governmental authorities to facili - tate development projects. However, govern - ment regulations do offer incentives for specific investments, with the following examples. • National Strategic Projects benefit from a streamlined permit processing, spatial plan - ning adjustments via KKPR recommendations from the MOA, a specialised land acquisition process for public purposes, 0% BPHTB, financial aid, government guarantees and fast-tracked resolution of legal and social impacts. To qualify, projects must be evalu - ated and approved by the Co-ordinating
Minister of Economic Affairs and the Presi - dent, focusing on infrastructure investments exceeding IDR500 billion (approximately USD33 million), and typically executed by government institutions, state-owned enter - prises or private sectors through PPPs. • Investments in SEZs are eligible for stream - lined business licence processing, simplified expatriate utilisation, fiscal benefits like tax holidays, 0% VAT, exemptions from import duties on specific goods, and deductions on local taxes. • Investments in Indonesia’s new capital city, Nusantara, come with benefits including a corporate income tax rate of 0% for up to ten years, 0% import VAT, 0% tax on luxury goods, 0% import duties and 0% PBB for up to ten years. • Investments in industrial estates are guaran - teed KKPR confirmation/approval, along with simplified application processes for environ - mental and waste management approvals managed by the estate managers. 4.7 Enforcement of Restrictions on Development and Designated Use The enforcement of restrictions on develop - ment and designated land use involves several authorities, with various measures, as follows. • The MOA, including land offices and regional offices, is the primary authority responsible for supervision, evaluation monitoring and reporting land designation usage, conducted through the following various measures: (a) verifying KKPR applications based on land documents (titles, leases, etc), pro - posed business scope, alignment with RDTR/RTRW, and proposed construction plans; (b) forming an inspectorate to supervise development and designated use, over -
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