ANNOUNCEMENT 30 Sep 2015In September 2015, the government of Indonesia announced a change in the required local inputs to serve domestic customers.
NUMBER OF INTERVENTIONS
Ministry of Finance regulation 188/PMK.010/2015 (in Bahasa Indonesia)
Secondary Source (in English)
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.