Mandatory Use of Domestic Products and Services in Electricity Infrastructure Projects

Editorial Team

The Minister of Industry has issued Regulation No. 54/M-IND/PER/3/2012 on Guidelines to Utilize Domestic Products in Erecting Electricity Infrastructures (“Regulation”). The Regulation stipulates the rate at which domestic components (both goods and services, see Art.1 (4))) must be used when constructing an electricity infrastructure.

The rationale behind the Regulation was the Government’s aim to improve the development of domestically produced electricity products and related services industries (see ILB No. 1969, on the discussion of electricity ancillary services). This improvement would be achieved by imposing an obligation to use domestic components on contractors who were awarded electricity infrastructure construction projects (Art.2(1)).