Following the issuance of the Job Creation Act, the Indonesian government has issued implementing regulations, including a Presidential Regulation concerning Government Procurement of Goods/Services.

The new regulation includes a provision that in procuring goods/services, at least 40% (forty percent) of the products/services procured by the central government and regional governments must originate from domestic production by MSB and Cooperatives. It is related to the Government objective to provide Ease, Protection and Enhanced Utilisation of MSB and cooperatives as the leading economic sector in Indonesia.

More on the new regulation is discussed in an article prepared by Dentons HPRP lawyers: Giovanni Mofsol Muhammad (Partner), Winda Tania (Senior Associate), and Fremi Rovi Raturandang (Associate).

The article can be downloaded here.