Obligatory Use of Domestic Products in Government Procurements

The Minister of Industry (“Minister”) recently issued Regulation No. 02/M-IND/PER/1/2014 on Guidelines on Increasing the Use of Domestic Products in Government Procurement of Goods and Services (“2014 Regulation”).

The 2014 Regulation aims to regulate government procurement projects that are partially or entirely funded by the state or regional budgets, foreign loans, or bequests. Prior to the 2014 Regulation, the same matter was regulated by Ministerial Regulation No. 15/M-IND/PER/2/2011 (“2011 Regulation”).[1]