IMPLEMENTATION LEVEL

National

AFFECTED FLOW

Inflow

ANNOUNCED AS TEMPORARY

No

NON-TRADE-RELATED RATIONALE

No

ELIGIBLE FIRMS

all

JUMBO

No

TARIFF PEAK

No
← back to the state act
Inception date: 01 Jan 2016 | Removal date: open ended
Still in force

Production subsidy

 On 7 October 2015, the Indonesian government announced the third stimulus package within a month (cf. Related Measures) aimed at boosting the slowing economy and the country's weakening currency.
Subsidised commodity prices
The package included subsidised gas prices for the fertilizer industry of 7 USD instead of 9 USD per million British thermal unit starting 1 January 2016 - which shall later be expanded to other sectors as well (the ones mentioned in the press release: petrochemical, ceramics).
Further the tariffs on electricity will be reduced for companies using it between 11pm and 8am. Companies may also apply for a delay in paying 40% of the electricity bill for this year's first 6 or 10 months. This will be offered to companies in labour-intensive industries or facing strong competition.
 
Other steps not relevant to the Global Trade Alert
The government also announced a reduction an expansion of the SME loans programme ("KUR") to small families with a stable income, granting leasehold rights to street vendors (which until now usually operated illegally and were not eligible for the KUR programme), as well as a reduction in the diesel prices. The package also included simplified licensing regulations for aquiring land for investment activities.
 
Similarly to the first two reform packages, this measure is classified as amber and not implemented, as it is the announcement of a vast number of policy changes to occur in the coming months. The actual changes can be found in the Related Measures section.
 

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

341 Basic organic chemicals
3102 Mineral or chemical fertilisers, nitrogenous.
310250 Sodium nitrate
346 Fertilizers & pesticides
3101 Animal or vegetable fertilisers, whether or not mixed together or chemically treated; fertilisers produced by the mixing or chemical treatment of animal or vegetable products.
310100 Animal or vegetable fertilisers, whether or not mixed together or chemically treated; fertilisers produced by the mixing or chemical treatment of animal or vegetable products.
3102 Mineral or chemical fertilisers, nitrogenous.
310210 Urea, whether or not in aqueous solution
310221 Ammonium sulphate
310230 Ammonium nitrate, whether or not in aqueous solution
310240 Mixtures of ammonium nitrate with calcium carbonate or other inorganic nonfertilising substances
310260 Double salts and mixtures of calcium nitrate and ammonium nitrate
3103 Mineral or chemical fertilisers, phosphatic.
310310 Superphosphates
310390 Other
3104 Mineral or chemical fertilisers, potassic.
310420 Potassium chloride
310430 Potassium sulphate
310490 Other
3105 Mineral or chemical fertilisers containing two or three of the fertilising elements nitrogen, phosphorus and potassium; other fertilisers; goods of this Chapter in tablets or similar forms or in packages of a gross weight not exceeding 10 kg.
310520 Mineral or chemical fertilisers containing the three fertilising elements nitrogen, phosphorus and potassium
310530 Diammonium hydrogenorthophosphate (diammonium phosphate)
310540 Ammonium dihydrogenorthophosphate (monoammonium phosphate) and mixtures thereof with diammonium hydrogenorthophosphate (diammonium phosphate)
310551 Containing nitrates and phosphates
310559 Other
310590 Other

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