   
  
G/TRIMS/Q/IDN/5  
 
14 May 2019  
(19-3323) Page: 1/2 
Committee on Trade -Related Investment Measures  Original: English  
 
INDONESIA – LOCAL CO NTENT REQUIREMENTS F OR PHARMACEUTICAL  
PRODUCTS AND MEDICAL  DEVICES  
FOLLOW -UP QUESTIONS FOR INDONESIA ON REP LIES1 TO QUESTIONS  
FROM THE UNITED STAT ES2 
The following communication, dated 13 May 2019, is being circulated at the request of the Delegation 
of the United States . 
 
_______________  
 
 
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?   
 
Question 2  
 
We note that article 6 of the 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 t o 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 pharmaceutical 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 pha rmaceutical 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?  
 
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 provisi ons on local content or prioritization of domestic 
products apply only to government procurement?  
 
                                                
1 G/TRIMS/Q/IDN/4.  
2 G/TRIMS/Q/IDN/3.  G/TRIMS/Q/IDN/5  
 
- 2 - 
 
  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?  
 
__________  