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Legal Updates | Gratification Control in BPOM Institution

Recent Developments

On 10th October 2017, the Food and Drugs Supervisory Agency (Badan Pengawas Obat dan Makanan "BPOM") issued Regulation No. 20 of 2017 on Control of Gratification in BPOM ("Regulation 20"), which took effect on 13th October 2017. Regulation 20 revokes the previous BPOM regulation on the same matter, ie, Regulation No. 4 of 2015 on Control of Gratification in BPOM. This regulation was issued to adopt the provisions on the control of gratification in the previous regulation with the updated provisions as determined by the Corruption Eradication Commission ("KPK"). Regulation 20 was issued as a follow-up of the agreement between KPK and, among others, BPOM in 2016 on the gratification in the healthcare sector to prevent corruption.

Main Provisions

Under Regulation 20, civil servants are obliged to refuse any gratification related to their positions and contrary to their duty or job. Civil servants must report gratuities if they are unable to refuse the gratuities as referred to above due to the following conditions:

  1. Gratifications are not received directly.
  2. They do not know the identify of the giver.
  3. The civil servant is unsure of the category of gratification received.
  4. There is a certain condition that can not be rejected.

Further, Regulation 20 sets out the types of gratification, which are:

  1. Gratifications that must be reported;
    These gratifications are received by the civil servant and are purportedly related to the position of the civil servant and contrary to the duties or job of the civil servant.
  2. Gratifications that are not obliged to be reported;
    This gratifications are received in any form by the civil servant, and are not related to the civil servant's position and not contrary to the duties or job of the civil servant.
  3. Gratifications that are related to the official services;
    This gratifications are legally received by the civil servant in his or her official assignment by BPOM, which are publicly given and are of a type commonly given, and meet the principles of fairness and propriety.

Moving Forward

Regulation 20 gives a set of provisions which have the same concepts as the provisions in the Ministry of Health ("MOH") regulation on the control of gratification in the MOH, eg, reporting to the relevant institution on certain types of gratification. In addition, Regulation 20 provides the form of the gratification report to the relevant institution. As such, companies must be aware of the requirements under this regulation in managing their relationships with government officials in BPOM.

Hadiputranto, Hadinoto & Partners, Member of Baker & McKenzie International - 24th January 2018

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Indonesia Snapshot

Capital: Jakarta
Population: 259 million (2016)
Currency: Indonesian Rupiah
Nominal GDP: $936 billion USD (IMF, 2016)
GDP Per Capita: $3,620 USD at Current Prices (IMF, 2016)
GDP Growth: 5.0% (2016)
External Debt: 36.80% of GDP (BI, Q2 2016)
Ease of Doing Business: 91/190 (WB, 2017)
Corruption Index: 90/176 (TI, 2016)