The Ministry of Industrial Affairs (“MOI”) of Indonesia plans to relax local content (“TKDN”) requirements for electricity infrastructure to attract foreign investment in renewable energy.

In a letter No. S/31/M-IND/HK/V/2024, dated 13 May 2024 (“MOI Letter”) to the Coordinating Ministry of Maritime Affairs and Investment, the MOI announced its intention to revoke Regulation No. 54/M-IND/PER/3/2012 (“MOI Reg 54/2012”), which outlines Guidelines on the Utilization of Domestic Products for the Development of Electricity Infrastructure and its amendments.

Through the MOI Letter, the MOI cited several reasons for this revocation and we’ve highlighted our expected outcomes if implemented.

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