Indonesia’s LCR Strategy Faces an Institutional Test After US Exemptions
Indonesia’s exemption of U.S. firms from local content requirements under the ART has intensified scrutiny of whether LCRs can deliver the government’s goal of lifting manufacturing to 20.56% of GDP by 2029. The source argues LCRs only work when backed by strong institutions that enforce transparency, competition, and measurable technology transfer—conditions it suggests remain uneven in Indonesia’s resource-linked industrial model.