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: 06 Oct 2012 | Removal date: open ended
Still in force

Local sourcing

On 5 October 2012, the Indonesian president signed law 16/2012 on the defence industry introducing amongst others local content requirements for defence equipment.
According to article 43 (of the law 16/2012) on public procurement of defence and security equipment, the defence appliances can be purchased from abroad only if they are not available on the national market (art. 43(3)). Even then, the local content requirement of the defence equipment needs to be at least 35%. This minimum local content requirement shall be raised each year by 10% until it reaches 85% in five years (art. 43(5) let. e-f). 
The law came into force on the day it was signed by the president.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

447 Weapons & ammunition & parts
9301 Military weapons, other than revolvers, pistols and the arms of heading 93.07.
930110 Artillery weapons (for example, guns, howitzers and mortars)
930120 Rocket launchers; flamethrowers; grenade launchers; torpedo tubes and similar projectors
930190 Other
9302 Revolvers and pistols, other than those of heading 93.03 or 93.04.
930200 Revolvers and pistols, other than those of heading 93.03 or 93.04.
9305 Parts and accessories of articles of headings 93.01 to 93.04.
930591 Of military weapons of heading 93.01
9306 Bombs, grenades, torpedoes, mines, missiles and similar munitions of war and parts thereof; cartridges and other ammunition and projectiles and parts thereof, including shot and cartridge wads.
930621 Cartridges
930629 Other
930630 Other cartridges and parts thereof
930690 Other

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