ANNOUNCEMENT 24 Mar 2015

In March 2015, the government of Indonesia announced a change in production support.

NUMBER OF INTERVENTIONS

1

  • 1 harmful
  • 0 neutral
  • 0 liberalising
Inception date: 24 Mar 2015 | Removal date: 22 Dec 2015
Still in force

Production subsidy

On 24 March 2015, the Indonesian Directorate General of Customs and Excise announced on a press conference it would designate 579.42 billion IDR (in that day's exchange rate 44.77 million USD) earned in import duties during the fiscal year 2015 in order to "support local manufacturing".
The 18 designated product categories that will obtain the subsidies are downstream chemical industry goods, resin goods, carpets and tapestries, bicycles, intravenous therapy (IV) equipment, stationeries, large instruments, hospital instruments, motor vehicles, agricultural equipment, ship repair tools and parts, calcinated coke, fodder, electronic components, optical fiber cables, steam turbine power plants, and smart cards.
The factories will be eligible for the state aid as long as their products do not profit from import duty reliefs, temporary anti-dumping duties, security duties, retaliation or reward duties, or incentives given to bonded zones.
The GTA includes state guarantees and other financial incentives that are likely to affect the restructuring and performance of firms facing international competition, whether from imports, in export markets, and from foreign subsidiaries.
Due to current unavailability of UN COMTRADE data for 2014, the affected trading partner were based on the trade volumes from 2013.