Provisions on Donations for Victims of Road Accidents Adjusted

With the intention of readjusting the amounts of any funds which are made available for the victim of road accidents, the Ministry of Finance (“Ministry”) has issued Regulation No. 16/PMK.010/2017 on Donations and Mandatory Contributions to Road-Accident Funds (“Regulation 16/2017”). [1] Regulation 16/2017 sets the amounts of mandatory premium fees and contributions for road-accident benefit programs, as previously regulated under Ministry Regulation No. 36/PMK.010/2008 (“Regulation 36/2008”).Procedures for the Payment of Mandatory Contributions into Road-Accident FundsAll road-transportation businesses/owners are obliged to pay mandatory contributions into road-accident funds (sumbangan wajib dana kecelakaan lalu lintas jalan– “SWDKLLJ”), as organized by PT Jasa Raharja, a state-owned insurance company. [2] Accordingly, the SWDKLLJ will become a source of donations for the victims of road accidents (“Victims”).Regulation 16/2017 makes no substantial changes to the SWDKLLJ amounts which are to be imposed upon road-transportation businesses/owners, in comparison with the Regulation 36/2008, as detailed below: [3]