ANNOUNCEMENT 04 Mar 2016In March 2016, the government of Indonesia announced a change in the local input requirements for the participation in certain public purchases.
NUMBER OF INTERVENTIONS
Ministry of Industry regulation 15/M-IND/PER/3/2016 (in Bahasa Indonesia)
Ministry of Industry press release (in Bahasa Indonesia)
Presidential regulation 4/2016 (in Bahasa Indonesia)
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.