ANNOUNCEMENT 14 Feb 2012

In February 2012, the government of Indonesia announced a changed incentive to localise business operations.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 15 Feb 2012 | Removal date: open ended
Still in force

Localisation incentive

On 14 February 2012, the Indonesian Ministry of Industry announced amendment 15/M-IND/PER/2/2012 to the regulation 123/M-IND/PER/11/2010 (cf. Related Measures). With the changed provisions, companies in the textile and footwear industries that use only local machines may receive a reimbursement of 25% of the purchasing price on new machines and equipement. Prior to this amendment, the entities at hand could receive a reimbursement of up to 15%. Meanwhile, companies using foreign machines may still reimburse up to 10% of the purchasing price.
The regulation came into force on 15 February 2012.
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.