Client Alert: New Regime of Local Content Requirements for Electricity Infrastructure Development

Thursday, 08-08-2024

OVERVIEW

The Ministry of Industrial Affairs (MOI) has officially revoked its Regulation No. 54/M-IND/PER/3/2012 (MOI Reg 54/2012) regarding the Guidelines on the Utilization of Domestic Products. This decision comes as part of a strategic move to align such regulations under the Ministry of Energy and Mineral Resources (MEMR).

The new regime of TKDN requirements has been introduced through MEMR Regulation No. 11 of 2024, on Utilization of Domestic Products for the Development of Electricity Infrastructure (MEMR Reg 11/2024) and MEMR Decree No. 191.K/EK.01/MEM.E/2024, on the Minimum Threshold of Local Content Value for the Combination of Goods and Services in the Scope of Electricity Infrastructure Development Projects (MEMR Decree 191/2024).

The key policies set out under MEMR 11/2024 will reflect the shift in authority over the regulation of TKDN requirements for the development of electricity infrastructure.

Download File