Announcement
05 Oct 2012
On 5 October 2012, the Indonesian government introduced a new law (UU No.16 tahun 2012) on the defence industry. It contains several trade-distorting aspects.
The law came into force on the day of its stipulation.
Source
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Number of interventions
3
3 certainly harmful
0 likely harmful
0 liberalising
List of interventions
3 in force
Implementation date
05 Oct 2012
Revocation date:
No revocation date
Public procurement localisation
In force
Article 43 of the law on the defence industry states that the Indonesian military is "required to use defence equipment and security equipment of domestic production" (para. 1, own translation). Parag...
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FDI: Entry and ownership rule
In force
Furthermore, article 52 of the law on the defence industry stipulates that all companies in the "major appliance industry" ought to be fully owned by the state (para. 1). Also, paragraph 2 states that...
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State aid, nes
In force
Article 51 of the law on the defence industry mentions that the Indonesian government shall provide equity participation to the Indonesian defence industry. Paragraph 2 of the article specifies that t...
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