Inp.polri.go.id - Jakarta. The government has introduced a new provision in Presidential Regulation No. 46 of 2025, mandating that products with at least 25% local content must be used if no domestic products meet the higher threshold of 40% combined local content and corporate benefit weight.

The updated regulation  aims to reinforce its commitment to protecting and promoting domestic industry. 

“This new Article 66 Paragraph 2b proves that the government is more affirmative, aggressive, and progressive in supporting domestic industry,” said Minister of Industry Agus Gumiwang Kartasasmita at the 2025 New Energy Vehicle Summit in Jakarta on Tuesday (6/5/2025, as quoted by antaranews.com.

Previously, Article 66 only contained one paragraph. The addition now explicitly permits the use of products with a minimum of 25% local content when 40% local content products are unavailable or insufficient in volume.

The Ministry of Industry is also reforming the local content certification process, aiming to reduce the issuance period from three months to just ten days—part of broader deregulation efforts to ease business activities.

(mg/inp/pr/nm)