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will lead the board of directors and the state-owned enterprises minister will act as a
member of the board, Article 157 stipulates. The Investment Management Agency
will also be led by five commissioners, three from a professional background, one
from the Finance Ministry and another from SOE Ministry, according to Article 158.

Weaker regional government role

Regional governments' role in business licensing will be weakened, if not scrapped
completely for several types of licenses, according to amendments and new
stipulations in the omnibus bill.

Article 350 (4) of Law 23/2014 on regional government has been amended to
require regional governments' business licensing services to use electronic licensing
systems that will be managed by and streamlined to the central government. There
is no such rigid requirement in the existing law. Punishment for failure to streamline
regional business licensing with the central government would result in the central
government taking over regional governments' business licensing functions.

Further, revocation of local regulations -- at the provincial, governor, regency or city
administration level -- that contradict prevailing and higher laws and regulations can
be done through Perpres, based on the omnibus bill. Article 251 of the Regional
Government Law, meanwhile, only allows for revocation of province- and governor-
level regulations by the governor as representative of the central government.

Punishment for violating the amended Article 251 will result in an administrative
sanction and delay in evaluation of draft regional regulations. The sanction of
stopping budget transfers will be imposed on regional governments that still impose
regional taxes or levies, which have been revoked by the president, according to
Article 252 of the omnibus bill.

Other amendments that would weaken the Regional Government Law include
revisions to Law 32/2009 on environmental protection and management, which will
allow the central government to take over environment-related licenses from
regional governments, including Amdals.

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