National industry policy promulgated

Although it takes almost twenty five years after the enactment of Law No. 5/1984, Indonesia finally has a comprehensive national policy on the country’s industry. The policy is contained in Presidential Regulation No. 28 of 2008 regarding National Industry Policy. The details of the National Industry Policy (“NIP”) are set forth in the Attachment to the Presidential Regulation No. 28 of 2008. The Regulation imposes on the Minister of Industry the task of compiling a “Road Map” that sets out the direction for master industries such as manufacturing, agro-business, electronics, and telematics, creative industries, as well as certain small and medium scale industries. It opens the possibility for the provision by the government of fiscal or non-fiscal facilities to priority industries, pioneer industries, industries located in remote areas, innovative industries, industries carrying out infrastructure development, industries that are focused on technology transfers, and industries that open up job opportunities The NIP also foresees a fundamental change in the structure of the Indonesian economy from traditional agriculture being the most significant contributor to a more diverse and high technology agribusiness cluster, among others. It sees a shift in the country’s major exports from textile and forest products to stainless steel, motors and motor vehicles, electronics, and basic chemicals. With the NIP, it is hoped that by 2025 the country will have a competitive, world class manufacturing sector of unabated growth that will be the prime mover of the economy. The Regulation has become effective since the day of its issue on 7 May 2008.