ANNOUNCED AS TEMPORARYNo
The regulation 34/M-IND/PER/9/2017 by the Indonesian Ministry of Industry introduces far-reaching localisation requirements on the industry manufacturing motor vehicles with four wheels or more. The legislation, which came into force on 4 December 2017, requires businesses in the industry to produce all its major vehicle components within the country (art.2(1)). According to article 2(2) of the regulation, these components and related services include:
A detailed description of the motor vehicle components facing the localisation is listed in the appendix of the regulation.
The motor vehicle companies will be forced to manufacture these components and provide the listed services themselves or delegate them to other domestically located companies.
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