ANNOUNCEMENT 24 Sep 2014

In September 2014, the government of Indonesia announced a change in the required local inputs to serve domestic customers.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 24 Mar 2015 | Removal date: open ended
Still in force

Local sourcing

 On 24 September 2014, the Indonesian Ministry of Industry issued regulation 80/M-IND/PER/9/2014 introducing local content requirements on motor vehicles.
Specifically, article 6 of the regulation stipulates that "the motor vehicle industry, as defined in article 2 letters c, d and e 'motor vehicles with at least four wheels, motor vehicles for private use and motorcycles with 2 or 3 wheels' is required to empower the Motor Vehicle Components Industry within the country while conducting the production process". The activities to be conducted within Indonesia are specified in article 12(2) as follows:

  • "a. welding;
  • b. painting
  • c. assembling of the motorised vehicles and
  • d. quality control."

The progress made by the companies to "empower" the industry shall be reported every 6 months to the Directorate General of the Ministry (art. 26(2)).
The regulation comes into force on 24 March 2015.

Update
On 23 March 2015, the Indonesian Ministry of Industry announced regulation 34/M-IND/PER/3/2015, introducing further localisation requirements for the automotive industry (cf. Related Measures). However, given that the requirements mentioned above remain in force, this measure continues to be classified as implemented.

AFFECTED SECTORS