Regulation

Joint Agreement for Domestic Contents

VIVAnews - A joint agreement (SKB) on obligation to apply domestic contents will be signed by, at least, eight ministers. This is to encourage the use of local raw materials instead of relying on imports.

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"There will be a national team consisting of eight ministers," said the Industry Minister, Fahmi Idris, Jakarta, Monday, Feb. 16.

Idris said that aside from himself, the eight ministers include the State Minister of State Administrative Reform Taufik Effendi, National Education Minister Bambang Soedibyo, and Domestic Affairs Minister Mardiyanto. The Indonesian National Police Chief Gen. Bambang Hendarso Danuri is also included.

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"The SKB is still in further discussion. I will meet Pak Taufik, the national police chief, and the national education minister to discuss it," said Idris. The meeting will discuss implementation and technical regulation.

Furthermore, Idris also warded the notion of sanction on the SKB. "No need for any sanction," he said.

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Idris had previously stated that the regulation on applying domestic contents will be made into a joint agreement (SKB) as an addendum to the Industry Minister Regulation (Permenperin) No.11/2006 that has already been issued.

"The SKB is made to strengthen each technical departments' commitments that regulate the application of domestic contents," said the Metal Director of Directorate General of Metal, Machinery, Textile, and Multifarious Industries at the Industry Department I Gusti Putu Suryawiryawan on a separate occasion.

Nonetheless, he also said that Permenperin is still valid and will not be cancelled in spite of SKB implementation.

Translated by: Ariyantri E. Tarman

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