ANNOUNCEMENT 16 Jun 2009

In June 2009, the government of Indonesia announced a changed incentive to localise business operations.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising

SOURCE



Regulation 61/M-IND/PER/6/2009 (in Bahasa Indonesia):
http://regulasi.kemenperin.go.id/site/baca_peraturan/561

Regulation 69/M-IND/PER/7/2009 (in Bahasa Indonesia):
http://regulasi.kemenperin.go.id/site/baca_peraturan/699

Regulation 120/M-IND/PER/12/2012 (in Bahasa Indonesia):
http://regulasi.kemenperin.go.id/site/baca_peraturan/1401

Overview of the kerosene-to-LPG-conversion programme (in Bahasa Indonesia):
http://esdm.go.id/berita/56-artikel/4011-konversi-minyak-tanah-ke-lpg-menggerakkan-perekonomian-menghemat-energi.html?tmpl=component&print=1&page=


Inception date: 16 Jun 2009 | Removal date: 14 Dec 2012
Still in force

Localisation incentive

 On 16 June 2009, the Indonesian Ministry of Industry announced regulation 61/M-IND/PER/6/2009 setting a fixed price for LPG steel tubes and its accessories, as well as gas stoves used by micro entreprises in the kerosene-to-LPG-conversion programme.
With this regulation companies are required to sell the listed parts to the micro entreprises at prices stipulated by the regulation (for prices see article 2 of the regulation). Furthermore, the steel tubes and gas stoves need to have a local content of at least 40% (art. 3). These restrictions came into force on the day of their announcement.
On 6 July 2010, the Ministry of Industry issued regulation 69/M-IND/PER/7/2010 updating the prices for the regions of Java and Bali.
The official prices were scrapped on 28 December 2012 by regulation 120/M-IND/PER/12/2012.

AFFECTED SECTORS