THE DEVELOPMENTS OF THE ‘LOCAL CONTENT REQUIREMENT’ IN INDONESIA

This study investigates the potential ramifications of the implementation of a ‘local content requirement’ (LCR) law for electronic products in Indonesia. The law has been deemed “protectionist policy” by some and possibly in violation of WTO trade agreements. The Government of Indonesia (GOI), however, has maintained that its implementation is necessary to prevent the country simply becoming a market for these products. Indonesia hopes to have a greater stake in the manufacture or research and design of these products.