ANNOUNCEMENT 05 Oct 2012

In October 2012, the government of Indonesia announced a change in the required local inputs to serve domestic customers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 06 Oct 2012 | Removal date: open ended
Still in force

Local sourcing

On 5 October 2012, the Indonesian president signed law 16/2012 on the defence industry introducing amongst others local content requirements for defence equipment.
According to article 43 (of the law 16/2012) on public procurement of defence and security equipment, the defence appliances can be purchased from abroad only if they are not available on the national market (art. 43(3)). Even then, the local content requirement of the defence equipment needs to be at least 35%. This minimum local content requirement shall be raised each year by 10% until it reaches 85% in five years (art. 43(5) let. e-f). 
The law came into force on the day it was signed by the president.

AFFECTED SECTORS