AmCham Update
AmCham Update Vol. 3 #134
New Criminal Code Criticized, 10th Annual AmCham Investment Summit, New Residency Visa for Foreign Investors Planned
Dec 07, 2022


Controversial Ban on Sex Outside of Marriage Now Law

The House of Representatives (DPR) signed the controversial Criminal Code Bill (RKUHP) into law on Dec 6. It was strongly criticized for banning sex and living together outside of marriage, among other measures. The Code does not come into effect immediately, but will do so in three years’ time.

US Ambassador to Indonesia Sung Kim criticized the law shortly before it passed yesterday.

Speaking at AmCham Indonesia’s annual Investment Summit, he said in prepared remarks: “We remain concerned that morality clauses attempting to regulate what occurs in a household between consenting adults can have a negative impact on Indonesia’s investment climate. Criminalizing the personal decisions of individuals would loom large within the decision matrix of many companies determining whether to invest in Indonesia.” 

The Criminal Code became an instant trending topic worldwide on Google and social media sites after it passed.

The DPR failed to pass the original bill in 2019 after mass public protests over restrictions on freedom of speech, religion and LGBTQ rights. Since then, the bill has undergone several revisions, and DPR Vice Speaker Sufmi Dasco Ahmad said provisions have been reformulated in accordance with public input.

Before it was passed, infamous Article 27 and 28 regarding defamation and insult clauses from the Electronic Information and Transaction Law (ITE Law) were removed. However, major concerns remain.

Rights groups fear that the prohibitions on sex outside marriage can be used maliciously. The ban on cohabitation is likely to hurt the tourism industry in particular.

Civil liberties groups have criticized the bill for restricting personal, religious and press freedoms and curtailing democracy. Human Rights Watch has described the bill as a setback for Indonesian democracy.

Under the new code, people suspected of having sex outside of marriage can only be prosecuted if a complaint has first been filed by a spouse, children or parent. This has led to concerns the Code will be manipulated by feuding family members for their own ends.

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The Future's Bright, But Still Work to Be Done: AmCham-US Chamber Investment Summit

   

A spirit of optimism for the future of foreign direct investment in Indonesia emerged from the 10th annual US-Indonesia Investment Summit on Dec 6, but it was also felt there is still much work to be done, with a call for Indonesia to continue its economic reform program, particularly in key areas such as the digital economy, public health, energy transition, and financial services. 

Part of AmCham Indonesia and the US Chamber of Commerce's long-standing Initiative Indonesia program, the Summit, themed Reaping the Benefits of Reform, heard key remarks from Coordinating Minister for Maritime Affairs and Investment Luhut Binsar Pandjaitan, Coordinating Minister for Economic Affairs Airlangga Hartarto, Chair of the Board of Commissioners of the Financial Services Authority (OJK) Mahendra Siregar, former Minister of Trade and Chair of the Investment Coordinating Board (BKPM) Thomas Lembong, and was opened by US Ambassador Sung Kim. Minister of Tourism and Creative Economy Sandiaga Uno also took part.

One particularly engaging panel saw Dr Lies Dina Liastuti, President Director of the prestigious Cipto Mangunkusumo General Hospital, outline ambitious plans to upgrade the national health system by allowing foreign doctors to practice in Indonesia and foreign healthcare companies to operate hospitals. She said foreign expertise is needed for public health improvements. She said her hospital, which is owned by the government, would soon partner with foreign hospital groups.

      

   

The Summit, held at the Mandarin Oriental hotel, saw the release of Resilient Indonesia, the 2022 US-Indonesia Investment Report, the Initiative's annual take on the Indonesian investment climate, this year produced in conjunction with USAID.

In presenting the report to OJK Chairman Mahendra Siregar, AmCham Board Chairman Scott Hanna said it “was our most optimistic report ever.”

The report makes recommendations on enhancing Indonesia’s economic reform efforts, including: improve government coordination for regulatory certainty, promote inclusive policymaking for effective regulatory frameworks, accelerate equitable development, and rationalize local content policies to ensure competitive enterprises.

“Indonesia’s successful hosting of the B20 and G20 Summits has provided momentum to the commercial relationship with the United States”, said John Goyer, Executive Director for Southeast Asia at the US Chamber of Commerce. “Now is the time to capitalize on that momentum.”  

“Indonesia has made real strides under President Joko Widodo in regulatory reform and infrastructure in recent years,” said AmCham Indonesia Managing Director A Lin Neumann. “But there is still a lot of work to be done on legal certainty, education, health and other areas. We are here to offer our support.” 

In his welcoming remarks, Hanna spoke of the importance of finally being able to meet with people face-to-face after the pandemic. He said Indonesia and the world had done an "amazing job pivoting during the pandemic."

Ambassador Kim also spoke of the importance of mobilizing sustainable investment in Indonesia for the growth of the 21st century global economy, the huge success of the G20 summit in Bali, the necessity for a swift and just transition to renewable energy, and the importance of maintaining the US and Indonesia's "shared values" for continued economic growth.

The Summit’s closing remarks were given by Minister Luhut, who offered an upbeat assessment of the economy.

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AmCham Cares: Reckitt

Reckitt Indonesia and the Health Innovation and Investment Exchange (HIEx) officially launched the Fight for Access Accelerator Program in Indonesia on Nov 29. A first-of-its-kind, the accelerator program is designed to catalyze innovative social enterprises that contribute to improving health outcomes in Indonesia. In bringing this project to life, Reckitt and HIEx join hands with the Indonesian Ministry of Health, and other development partners in Indonesia, to address specific challenges and opportunities unique to the region.

The program is about identifying and supporting women-led social enterprises to build innovative solutions in partnership with the various actors in the health ecosystem. Through Fight for Access Accelerator, Reckitt and HIEx focus on UN Sustainable Development Goal (SDG) 3, ensuring healthy lives and promoting well-being for all at all ages. It is relevant as 1 in 5 Indonesians still have no access to primary healthcare solutions, and deaths due to preventable and non-communicable diseases remain high. Women’s empowerment is at the center of the program; to ensure female founders have a place where they are heard and valued.

In 2022, the Fight for Access Accelerator Program has been launched in four countries: South Africa, Brazil, the United Kingdom, and Indonesia. This was made possible through the Reckitt Fight for Access Fund first introduced in 2020.

The program is open for all startups, especially women-led enterprises, by applying through fightforaccess.org.


Let Us Know Your Recent Social Responsibility Initiatives!

We have received positive responses for this program and would like to continue featuring your CSR stories and best practices. It is wonderful to learn the great things that our members are doing for the community.

Contact [email protected]with your CSR stories.


Residency Visa Plans for Foreign Investors

More details on Indonesia’s long-residency visa scheme will soon be unveiled as a means to attract foreign capital and property investors. Officials have said that with a minimum of $130,000 in bank deposits and tax-holidays on overseas income, foreign nationals may qualify for five to 10 years local residency. Reactions so far have been that at least on paper this new visa scheme is quite attractive when compared to rival programs from countries like Malaysia and Thailand, but more clarity is needed from the Indonesian government. 

As the government aims to revive Bali tourism, the new visa scheme allows tourists to stay in Bali longer than with the current 60-day tourist visa, and possibly pave the way to boost real estate prices. A number of property developers have already latched onto the visa scheme to attract potential buyers, and believe Bali could become a real estate magnet given its existing popularity.

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Now is the Time to Join AmCham!

Now is the Time to Join AmCham!

We offer a full slate of meetings, events, and information for our community   online. But we can only do this through the support of our members. If    you are not yet an AmCham member, please join now.

AmCham Indonesia is open to all companies with an interest in US business  relations and we have many non-American members. We are   a  community and we welcome you!

  Reach us at [email protected] or click below!

  JOIN AMCHAM


 

AmCham Office and Events

AmCham Office and Events

The AmCham Office is transitioning back to the office. We are still maximizing online meetings, using the Zoom platform, but starting to have in-person meetings. You will be notified of the meetings as they are scheduled.

 

 

 


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What is Your Company Doing on COVID-19?

Please let us know what measures your company may be taking in the form of donations and other assistance to help Indonesia during this time of confusion and concern. Contact [email protected] with your news. We would like to publicize the ways that our AmCham companies are pitching in.


Stay well

We urge you to send us press releases and other information that we can pass on to the broader AmCham community. If you have items of interest, please email material to [email protected]. Follow this link to information provided by the US Embassy

Stay safe, call a doctor if you have a high fever, cough, or difficulty breathing. Stay healthy above all else.


AmCham Update is AmCham's regular newsletter on developments related to the pandemic crisis and other issues in Indonesia. It is edited by AmCham Managing Director A Lin Neumann and written by the AmCham Staff. Paul L Goddard is the Managing Editor.

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