Local Content
“According to the Government Regulation No. 29 of 2018 concerning the Industry Empowerment and Industry Law No. 3 of 2014, Pertamina has launched a program to increase its Local Content. The program is aimed at:
- Increasing the utilization of local content;
- Increasing national utilization that will boost industry efficiency and their global competitiveness;
- Expanding access to job opportunities;
- Saving State Income;
- Reducing the import dependency by optimizing the government spending.
Local Content here refers to the amount of local component absorbed/applied in goods, services, and a mix of goods and service.
The participation of national companies in the supply chain is believed to be able to increase the utilization of local content in Pertamina, thus gradually reaching to 25% by 2020 and 50% by 2026.