National Industry Policy

The basic premise of Presidential Regulation No. 28 of 2008 is to stipulate the National Industry Policy (NIP). The NIP is Attachment I to this Regulation. The NIP is intended to set out the mechanisms for developing national industries and raising the level of industrial competitiveness in an ever-shrinking world.

This is generally to be achieved by ensuring that industries are sound, based on principles of fairness, continuity, and an ability to strengthen national defense. The NIP is more broadly characterized under the provisions of Article 19 of the Capital Investment Law (Law No. 25 of 2007) with regard to the provision of facilities by the government to investors.

The Regulation requires that the Minister of Industry compile a “Road Map” that sets out the direction for master industries such as manufacturing, agro-business, electronics, and telematics, creative industries across all scales including the small and medium scales.  

The government can provide facilities either in fiscal or non-fiscal forms for industries that are considered to be high priority, pioneering, or located in remote areas, or innovative, or are developing infrastructure, or are focused on technological expertise, or employ large numbers of people.

The Regulation establishes a Technical Team which is to map prioritized clustered industries among other duties.

The Regulation has been in force since 7 May 2008.