ANNOUNCEMENT 30 Sep 2015

In September 2015, the government of Indonesia announced a change in the required local inputs to serve domestic customers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Ministry of Finance regulation 188/PMK.010/2015 (in Bahasa Indonesia)
http://www.jdih.kemenkeu.go.id/fullText/2015/188~PMK.010~2015Per.pdf

Secondary Source (in English)
http://blog.ssek.com/wp-content/uploads/2015/11/Legal-Alert_November-2015.pdf


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 SECTORS

 
N/A

AFFECTED PRODUCTS

 
N/A