House of Representatives Legislative Body Begins Discussion on Revision of Industrial Law

The House of Representatives Legislation Body (“Baleg DPR”) has begun preparations for discussion on the revision of Law No. 3 of 2014 on Industry (“Law 3/2014”). According to Baleg member Martin Manurung, Indonesia is currently experiencing symptoms of deindustrialization, marked by the weakening of the manufacturing sector.

“This deindustrialization is occurring at the same time that we do not have a domestic supply chain. As a result, our manufacturing sector still relies heavily on imported components,” Martin told Hukumonline.

Furthermore, a report by the United States Trade Representative (USTR) states that Indonesia has implemented many complex and burdensome licensing policies for the industrial sector. Although President Prabowo has stated that he will open the floodgates to imports, this needs to be studied more thoroughly so as not to kill the domestic industry.

“That’s why we have started discussions on this issue, because tier 1 and 2 manufacturing industries that have met the TKDN requirements will certainly be affected. We will also have to look at the Ministry of Industry’s roadmap for the future,” he explained.