ANNOUNCEMENT 18 Feb 2010

In February 2010, the government of Indonesia announced a general change in export conditions.

NUMBER OF INTERVENTIONS

1

  • 0 harmful
  • 1 neutral
  • 0 liberalising
Inception date: No inception date

Export-related non-tariff measure, nes

On 18 February 2010, Industry Minister M.S. Hidayat said on the sideline of an Industry Ministry coordination meeting that the government may no longer extend existing LNG contracts in the future in order to meet the surge in domestic demand. He argued that Indonesia's industrial sector (including manufacturers of ceramics, float glass, textiles and chemical products such as rubber gloves as well as steel-based products, base metal and cement) has been hard hit by acute shortage of natural gas.
According to GTA assessment this measure no longer allows market based contracting of LNG and would therefore be discriminatory against foreign commercial interests.
No regulatory text regarding this decision has been found. However, according to media reports, Indonesia continues not to renew LNG contracts (cf. Sources). Furthermore, on 21 January 2015, the head of SKK Migas - the state-owned company responsible for LNG export contracts - mentioned in a media interview that "SKK Migas also won't extend LNG export contracts that expire this year".

AFFECTED SECTORS