Indonesia: Local content requirements for electricity infrastructure projects get a makeover

26 Aug 2024    1 minute read
Local Content

In brief

After several months of talks about new local content ("TKDN") requirements, the Ministry of Industry ("MOI") and the Ministry of Energy and Mineral Resources ("MEMR") have finally issued several instruments to regulate this matter:

  1. MOI Regulation No. 33 of 2024 on the Revocation of MOI Regulation No. 54/M-IND/PER/3/2012 on the Guidelines for Utilization of Local Products for the Development of Electricity Infrastructure (as amended) ("Past MOI Regulation"), issued on 25 July 2024 
  2. MEMR Regulation No. 11 of 2024 on the Utilization of Local Products for Development of Electricity Infrastructure, issued on 31 July 2024 ("MEMR 11/2024")
  3. MEMR Decree No. 191.K/EK.01/MEM/E/2024 on the Minimum Local Component Threshold for Combined Goods and Services in the Scope of Development Projects of Electricity Infrastructure, issued on 6 August 2024 ("MEMR 191/2024")

Contents

Before the revocation of Past MOI Regulation, TKDN requirements for electricity infrastructure projects (i.e., power plants, transmission grids, distribution networks and substations) were governed by the MOI.

With the issuance of MEMR 11/2024 (and its further implementing decree MEMR 191/2024), TKDN requirements for electricity infrastructure projects under the authority of the MEMR.

So what are the features of the new regime and the differences compared to the old regime?

Click here to access the full alert.

Fanny Kurniawan, Associate Partner and Marcia Tanudjaja, Senior Associate, have contributed to this legal update.

 

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