G/TRIMS/Q/IDN/8  
17 July 2020 
(20-4947) Page: 1/2 
Committee on Trade -Related Investment Measures  Original:  English  
 
 
INDONESIA – LOCAL CO NTENT REQUIREMENTS F OR PHARMACEUTICAL  
PRODUCTS AND MEDICAL  DEVICES  
REPLIES TO FOLLOW -UP QUESTIONS  FROM THE UNITED STATES1 
The following communication, dated 14 July 2020, is being circulated at the request of the Delegation 
of Indonesia.  
 
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We refer to the United States' questions contained in document G/TRIMS/Q/IDN/5 dated 
13 May 2019. Indonesia wishes to provide the following clarifications:  
Question 1  
In reply to Question 2 (G/TRIMS/Q/IDN/4), Indonesia states that it "has taken measures 
to increase investment shares, up to 100%, for certain categories for pharmaceutical 
products and medical devices. " What measures has Indonesia taken in this regard?  By 
what means do these measures seek to increase the availability of domestically produced 
pharmaceutical products and medical devices?   
Reply : 
Pursuant to MoH Regulation  17/2017 , the measures can be categorized as follows : 
1. Encouraging investment in pharmaceu tical industry (through providing information on 
investment opportunities in the medical device industry, mapping the market share of 
Indonesian medical devices, etc).  
2. Encouraging and developing pharmaceutical R&D and medical devices industry.  
3. Developing data and information systems related to production and distribution of 
pharmaceuticals needs.  
4. Increasing the coverage capacity of National Health Insurance as a user of pharmaceuticals and 
medical devices.  
Question 2  
We note that article 6 of th e Ministry of Health Action Plan ( "MOH 17/2017 ") requires the 
private sector to prioritize the domestic pharmaceutical and medical device industry, and 
does not appear to be limited to government procurement:   
Article 6:  
(1) The pharmaceutical and medical device industry must prioritize the use of 
domestically -produced raw materials.  
(2) The provision of drugs and medical devices by the government and / or the 
private sector for the needs of the public must prioritize pharmaceutic al 
 
1 G/TRIMS/ Q/IDN/5 .  G/TRIMS/Q/IDN/ 8 
 
- 2 - 
 
  preparations and medical devices that use raw materials produced by the 
domestic pharmaceutical and medical device industry.  
We note that paragraph (1) does not limit the circumstances under which the 
pharmaceutical and medical device industry must give  preference to domestically -
produced raw materials.  Likewise, under paragraph (2) the mere fact that the public 
needs the goods it purchases from the private sector does not convert those private sales 
into government procurement.  Assuming that Indonesia 's intent is to limit these 
measures to government procurement, does Indonesia intend to amend MOH  17/2017 to 
make clear that this prioritization requirement only applies to government procurement?  
Reply : 
At the moment, there is no plan to make any amendment  to the MoH Regulation 17/2017.  
Question 3 
Will Indonesia make its draft MOI regulation publicly available and allow for sufficient 
notice and comment from trading partners, private industry and other interested parties?  
Will the final copy of this draft MOI regulation make clear that any provisions on local 
content or prioritization of domestic products apply only to government procurement?  
Reply : 
In accordance with Indonesia’s law on the establishment of law and regulation, drafts of any 
regulation s are open to public participation, therefore they must be public ly available. Any draft of 
the MoI Regulation on this matter will only contain provisions regarding the calculation on local 
content levels.   
Question 4  
Assuming PI 6/2016 and MOH 17/2017 are  limited to government procurement, does 
Indonesia have any plans to extend its local content and domestic prioritization 
requirements for pharmaceutical products and medical devices to apply beyond 
government procurement?  
Reply : 
At the moment, only PI 6/2016 and MoH Regulation 17/2017 prevails and there is no plan to make 
any amendment to them.  
 
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