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 2011 | Removal date: 31 Jan 2012
Still in force

Production subsidy

On 30 November 2010, the Indonesian Ministry of Industry issued regulation 123/M-IND/PER/11/2010 concerning an "industry revitalisation and growth programme through the restructuring of machines/equipment of the textile and footwear industries" (own translation of the regulation title).
In essence, the regulation merges two separate revitalistion programmes for the textile and footwear industries (cf. Related Measures). Similarly to the previous programmes, the state aid will be given through a 10%-reimbursement of the costs of new machines / equipment purchased by the companies. If the entities use only local machines, the reimbursement is raised to 15% and the following to requirements no longer apply:

  • a minimum machine / equipment investment of 500 million IDR (on the inception day 66'915 USD) for the textile industry and 250 million IDR (33'457 USD) for the footwear industry;
  • a maximum subsidy of 5 billion IDR (669'153 USD) per year for each company.

The regulation came into force on 1 January 2011 and was replaced by regulation 15/M-IND/PER/2/2012 on 15 February 2012. According to media reports, the programme shall last until the end of 2015.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. The subsidy recipient produces internationally tradable goods. On this metric, the state aid proposed here is discriminatory.

AFFECTED COUNTRIES

MAP
TABLE
EXPORT

AFFECTED SECTORS AND PRODUCTS

271 Made-up textile articles
6301 Blankets and travelling rugs.
630140 Blankets (other than electric blankets) and travelling rugs, of synthetic fibres
6302 Bed linen, table linen, toilet linen and kitchen linen.
630231 Of cotton
630260 Toilet linen and kitchen linen, of terry towelling or similar terry fabrics, of cotton
630291 Of cotton
6304 Other furnishing articles, excluding those of heading 94.04.
630491 Knitted or crocheted
6305 Sacks and bags, of a kind used for the packing of goods.
630510 Of jute or of other textile bast fibres of heading 53.03
6306 Tarpaulins, awnings and sunblinds; tents; sails for boats, sailboards or landcraft; camping goods.
630612 Of synthetic fibres
630622 Of synthetic fibres
6307 Other made up articles, including dress patterns.
630710 Floorcloths, dishcloths, dusters and similar cleaning cloths
630790 Other
282 Wearing apparel, except fur apparel
6103 Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted.
610329 Of other textile materials
6104 Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear), knitted or crocheted.
610419 Of other textile materials
610449 Of other textile materials
610459 Of other textile materials
610462 Of cotton
610463 Of synthetic fibres
6105 Men's or boys' shirts, knitted or crocheted.
610510 Of cotton
6106 Women's or girls' blouses, shirts and shirtblouses, knitted or crocheted.
610610 Of cotton
610690 Of other textile materials
6107 Men's or boys' underpants, briefs, nightshirts, pyjamas, bathrobes, dressing gowns and similar articles, knitted or crocheted.
610791 Of cotton
6108 Women's or girls' slips, petticoats, briefs, panties, nightdresses, pyjamas, negligees, bathrobes, dressing gowns and similar articles, knitted or crocheted.
610821 Of cotton
610822 Of manmade fibres
610839 Of other textile materials
6109 Tshirts, singlets and other vests, knitted or crocheted.
610910 Of cotton
610990 Of other textile materials
6110 Jerseys, pullovers, cardigans, waistcoats and similar articles, knitted or crocheted.
611020 Of cotton
6117 Other made up clothing accessories, knitted or crocheted; knitted or crocheted parts of garments or of clothing accessories.
611780 Other accessories
611790 Parts
6203 Men's or boys' suits, ensembles, jackets, blazers, trousers, bib and brace overalls, breeches and shorts (other than swimwear).
620311 Of wool or fine animal hair
620332 Of cotton
620341 Of wool or fine animal hair
620342 Of cotton
620343 Of synthetic fibres
6204 Women's or girls' suits, ensembles, jackets, blazers, dresses, skirts, divided skirts, trousers, bib and brace overalls, breeches and shorts (other than swimwear).
620442 Of cotton
620462 Of cotton
620469 Of other textile materials
6205 Men's or boys' shirts.
620520 Of cotton
6206 Women's or girls' blouses, shirts and shirtblouses.
620620 Of wool or fine animal hair
620630 Of cotton
620640 Of manmade fibres
620690 Of other textile materials
6212 Brassieres, girdles, corsets, braces, suspenders, garters and similar articles and parts thereof, whether or not knitted or crocheted.
621210 Brassieres
621290 Other
6217 Other made up clothing accessories; parts of garments or of clothing accessories, other than those of heading 62.12.
621710 Accessories
621790 Parts
293 Footwear other than sports footwear
6402 Other footwear with outer soles and uppers of rubber or plastics.
640299 Other
6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather.
640399 Other
6404 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials.
640419 Other
6405 Other footwear.
640510 With uppers of leather or composition leather
294 Sports footwear, except skating boots
6402 Other footwear with outer soles and uppers of rubber or plastics.
640219 Other
6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather.
640319 Other
6404 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of textile materials.
640411 Sports footwear; tennis shoes, basketball shoes, gym shoes, training shoes and the like
295 Other footwear
6403 Footwear with outer soles of rubber, plastics, leather or composition leather and uppers of leather.
640340 Other footwear, incorporating a protective metal toecap
6405 Other footwear.
640590 Other
296 Parts of footwear
6406 Parts of footwear (including uppers whether or not attached to soles other than outer soles); removable insoles, heel cushions and similar articles; gaiters, leggings and similar articles, and parts thereof.
640610 Uppers and parts thereof, other than stiffeners
640620 Outer soles and heels, of rubber or plastics
640690 Other

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