To improve domestic production in Indonesia, the Government of the Republic of Indonesia (“GOI”) has issued regulations on the local content requirements for the procurement of goods and services in all government projects including electric power plants.

It has been over 4 years since the Constitutional Court’s ruling on 26 October 2004 which declared that Article 158 and other relevant articles of the Manpower Law in relation to serious misconduct were against the Indonesia Constitution and therefore were not legally binding.

Indonesia has been described as one of the most corrupt countries in the world. In 2008, the Transparency International Corruption Perception Index stated that Indonesia ranked 130th least transparent out of 180 countries. However, the continued existence of the Corruption Court in Indonesia which has tried many corruption cases and is trying to improve Indonesia’s anti corruption activities, is now under threat.