ANNOUNCEMENT 27 Jun 2016In June 2016, the government of Indonesia announced a change in the access to public tenders.
NUMBER OF INTERVENTIONS
Ministry of Trade regulation 44/M-DAG/PER/6/2016 (in Bahasa Indonesia)
On 27 June 2016, the Indonesian Ministry of Trade published regulation 44/M-DAG/PER/6/2016 on counter-purchase provisions when importing goods for public procurement.
Such counter-purchase agreements require foreign providers of materials for public procurement to use part of their payment to purchase or market abroad other Indonesian export commodities (not oil and gas - art. 6(1) of the regulation).
The present regulation only sets the legal framework for such contracts and is hence classified amber. The assignment of particular mandatory percentages (to be determined by a team from the Ministry of Trade) or required usagage of counter-purchase contracts in public procurement is left for future implementing regulations.
Also, article 8 of the regulation stipulates that the exported goods have to have at least the equivalent worth of those imported for the public procurement.
The regulation came into force on the day of its publication.