ANNOUNCEMENT 19 Apr 2010In April 2010, the government of Indonesia announced a change in the local input requirements for the participation in certain public purchases.
NUMBER OF INTERVENTIONS
Regulation 48/M-IND/PER/4/2010 (in Bahasa Indonesia):
Regulation 54/M-IND/PER/3/2012 (in Bahasa Indonesia):
On 19 April 2010, the Indonesia Ministry of Industry issued regulation 48/M-IND/PER/4/2010 introducing minimum levels of local content in the development of electricity infrastructure.
Contrary to previous legislation (cf. Related Measures), domestic goods and services do not only receive procurement preference but a minimum share is specified in addition. The share of required local content varies with the power plant type, the installed capacity of the plant and on whether it is a product, a service or a combination of the two.
The restrictions range from 15% to 100% and are most lenient in the case of geothermal and steam power plants, as well as plants with high installed capacity. The restrictions are also lower for products than services. A detailed list of the LCRs is given in the articles 5 to 11 of the regulation.
The regulation came into force on the day of its issuance, i.e. on 19 April 2010, and was later amended by regulation 54/M-IND/PER/3/2012 on 1 July 2012.
The amendment increased mostly the minimum share of domestic goods and introduced a new category of plants' installed capacity over 600MW per unit.