ANNOUNCEMENT 30 Nov 2010In November 2010, the government of Indonesia announced a change in production support.
NUMBER OF INTERVENTIONS
Regulation 123/M-IND/PER/11/2010 (in Bahasa Indonesia):
Secondary Source on programme's length until 2015 (in Bahasa Indonesia):
On 30 November 2010, the Indonesian Ministry of Industry issued regulation 123/M-IND/PER/11/2010 concerning an "industry revitalisation and growth programme through the restructuring of machines/equipment of the textile and footwear industries" (own translation of the regulation title).
In essence, the regulation merges two separate revitalistion programmes for the textile and footwear industries (cf. Related Measures). Similarly to the previous programmes, the state aid will be given through a 10%-reimbursement of the costs of new machines / equipment purchased by the companies. If the entities use only local machines, the reimbursement is raised to 15% and the following to requirements no longer apply:
The regulation came into force on 1 January 2011 and was replaced by regulation 15/M-IND/PER/2/2012 on 15 February 2012. According to media reports, the programme shall last until the end of 2015.
A state measure in the GTA database is assessed solely in terms of the extent to which its implementation affects the extent of discrimination against foreign commercial interests. The subsidy recipient produces internationally tradable goods. On this metric, the state aid proposed here is discriminatory.