Partnership between

Towards Indonesia's
Low Carbon Energy Transition

Indonesia Local Content Requirement Review

As part of our support for the Friends of Indonesia Renewable Energy (FIRE) dialogue, MENTARI has developed this review of the impacts of Indonesia’s local content requirements on the costs and rate of deployment of renewable energy. This review aims to promote the development of domestic manufacturing, and it applies across a broad range of industries, including electric power. This review is structured into 3 sections. Section 2 is the consequences of the local content requirements in the context of renewable energy. Section 3 is the international experience which reviews the literature on comparable local content requirements in other economies and their effectiveness. Section 4 proposes a roadmap outlining how best to use the local content requirements to support and incentivise the development of a solar PV manufacturing industry in Indonesia.