ANNOUNCEMENT 16 Jun 2009In June 2009, the government of Indonesia announced a changed incentive to localise business operations.
NUMBER OF INTERVENTIONS
Regulation 61/M-IND/PER/6/2009 (in Bahasa Indonesia):
Regulation 69/M-IND/PER/7/2009 (in Bahasa Indonesia):
Regulation 120/M-IND/PER/12/2012 (in Bahasa Indonesia):
Overview of the kerosene-to-LPG-conversion programme (in Bahasa Indonesia):
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.