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: 30 Sep 2015 | Removal date: open ended
Still in force

Local sourcing

 On 30 September 2015, the Indonesian Ministry of Finance issued regulation 188/PMK.010/2015 expanding the import tariff exemptions introduced in earlier versions of this scheme (cf. Related Measures) to the construction industry. The exemptions do not cover any services and require each company to use at least 30% locally sourced machinery and materials.
This measure qualifies as a discrimnating local content regulation rather than a liberalising tariff elimination, given that the measure provides companies with an incentive to buy local and the tariff elimination is used as a reward for that. The preamble to the Regulation explicitly states that it was introduced in order to support the Indonesian construction industry.

AFFECTED COUNTRIES

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