ANNOUNCEMENT 04 Mar 2016

In March 2016, the government of Indonesia announced a change in the local input requirements for the participation in certain public purchases.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Ministry of Industry regulation 15/M-IND/PER/3/2016 (in Bahasa Indonesia)
http://regulasi.kemenperin.go.id/site/baca_peraturan/2194

Ministry of Industry press release (in Bahasa Indonesia)
http://www.kemenperin.go.id/artikel/14785/Penggunaan-Baja-Lokal-Bakal-Diwajibkan

Presidential regulation 4/2016 (in Bahasa Indonesia)
http://jdih.esdm.go.id/peraturan/Perpres_Nomor_4_Tahun_2016.pdf


Inception date: 04 Mar 2016 | Removal date: open ended
Still in force

Public procurement localisation

 On 4 March 2016, the Indonesian Ministry of Industry announced in regulation 15/M-IND/PER/3/2016, based on presidential regulation 4/2016, new localisation requirements regarding the procurement of certain steel products.
Based on article 6 of the regulation, transmission towers and steel-reinforced conductors will require a minimum local content of 40%.
The Secretary General of the Ministry is quoted in a related press release saying this regulation is a first in a number of regulation being prepared, which are targeted to stop steel imports. He goes on to say that "in this case, (...), the President has explicitly instructed the all ministries and agencies, as well as state-owned enterprises and enterprises give priority in public procurements to domestic products to develop the national industry" (own translation).
The regulation came into force on the day of its announcement, i.e. on 4 March 2016.

AFFECTED SECTORS