Indonesia’s Local Content Requirements: An Assessment on Consistency with Free Trade Agreement Commitments

Oscar Fernando and Lili Yan Ing
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Oscar Fernando: World Trade Organization

No DP-2021-53, Working Papers from Economic Research Institute for ASEAN and East Asia (ERIA)

Abstract: Local content requirements (LCRs) are one of several economic instruments used by governments to protect infant domestic industries or to generate employment. Indonesia has LCR policies in several sectors. However, LCRs are often inconsistent with a country’s World Trade Organization commitments. Additionally, free trade agreements could also have provisions that regulate LCRs. This paper assesses whether Indonesia’s free trade agreements have provisions on LCRs, and whether its regulations are consistent with them.

Keywords: Local Content Requirements; WTO; FTA; East Asia; Indonesia (search for similar items in EconPapers)
JEL-codes: F1 F13 F15 (search for similar items in EconPapers)
Date: 2022-02-04
New Economics Papers: this item is included in nep-int and nep-sea
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