ANNOUNCEMENT 24 Nov 2008

In November 2008, the government of Indonesia announced a change in production support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Regulation 94/M-IND/PER/11/2008 (in Bahasa Indonesia):
http://regulasi.kemenperin.go.id/site/baca_peraturan/46
Regulation 141/M-IND/PER/10/2009 (in Bahasa Indonesia):
http://regulasi.kemenperin.go.id/site/baca_peraturan/574


Inception date: 01 Jan 2009 | Removal date: open ended
Still in force

Production subsidy

 On 24 November 2008, the Indonesian Ministry of Industry issued regulation 94/M-IND/PER/11/2008 launching a revitalisation programme for SMEs in the textile and leather industries.
The state aid to the SMEs will be provided through a 25%-reimbursement(30% in the case of locally produced machines) of purchasing costs for new machinery and equipment. The reimbursement can be up to 2 billion IDR (on the inception date, 178'015 USD) per company each year.
The programme came into force on 26 November - but the state aid will be made available only on 1 January 2009. It was updated, on 20 October 2009, by regulation 141/M-IND/PER/10/2009. However, the only changes worth-mentioning involved a definition of SMEs as having between 5 million IDR and 10 billion IDR of investments excluding real estate (on the inception date, between 525 USD and 1'050'090 USD).
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.

AFFECTED SECTORS