Peraturan Pemerintah ini mulai berlaku pada tanggal diundangkan.
Agar setiap orang mengetahuinya, memerintahkan pengundangan Peraturan Pemerintah ini dengan
penempatannya dalam Lembaran Negara Republik Indonesia.
Penjelasan Pasal 175
Cukup jelas.
Ditetapkan Di Jakarta,
Pada Tanggal 2 Februari 2021
PRESIDEN REPUBLIK INDONESIA,
Ttd.
JOKO WIDODO
Diundangkan Di Jakarta,
Pada Tanggal 2 Februari 2021
MENTERI HUKUM DAN HAK ASASI MANUSIA REPUBLIK INDONESIA,
Ttd.
YASONNA H. LAOLY
LEMBARAN NEGARA REPUBLIK INDONESIA TAHUN 2021 NOMOR 38
TAMBAHAN LEMBARAN NEGARA REPUBLIK INDONESIA NOMOR 6640
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PENJELASAN
REGULATION OF THE GOVERNMENT OF THE REPUBLIC OF INDONESIA
NUMBER 28 OF 2021
ON
THE ORGANIZATION OF THE INDUSTRIAL SECTOR
I. GENERAL
National development shall be carried out by utilizing the strength and ability of strong resources and
supported by the noble cultural values of the nation in order to realize the nation's sovereignty,
independence and resilience for national interests. National development in the economic sector shall be
carried out to create an independent, healthy, and strong economic structure by placing the development
of Industry as the primary driving force.
The development of Industry is one of the main pillars of the national economic development, which is
directed by applying the principles of sustainable development of Industry based on economic, social,
cultural, and environmental development aspects. Currently, the development of Industry is faced with
global competition that greatly affects the development of national Industry. Increasing competitiveness in
the Industry is one of the options that must be taken so that national Industry’s products are able to
compete both domestically and abroad. Measures in order to increase competitiveness and investment
attractiveness, namely ensuring the guarantee of the availability of Raw Materials and/or Auxiliary
Materials for Industry, the creation of a conducive business climate, efficiency, legal certainty, granting of
fiscal and Non-Fiscal Facilities, as well as other conveniences in Industrial business activities, including
Industrial Area business activities.
Law Number 11 of 2020 on Job Creation is present in order to create jobs, one of which is done through
increased investment. This Law enhances several existing laws, one of which is Law Number 3 of 2014 on
Industrial Affairs. The presence of Law Number 11 of 2020 on Job Creation is a state effort to create a
breakthrough in improving the investment climate, which is expected to be able to encourage national
development through Industrial development.
For the purpose of implementing Law Number 11 of 2020 on Job Creation, adjustments to the
implementing laws and regulations of Law Number 3 of 2014 on Industrial Affairs are required. In addition,
it is also necessary to regulate other important matters in the organization of the industrial sector in
Indonesia so that the objectives of Industrial development can be maximally achieved.
In order to maintain the continuity of the production process and Industrial development, the Government
is committed to grant ease of obtaining Industrial Raw Materials and/or Auxiliary Materials by guaranteeing
the availability of Raw Materials and/or Auxiliary Materials from within or outside the country, among
others, by prohibiting or restricting the Export of Raw Materials and/or Auxiliary Materials, ease of Import
of Raw Materials and/or Auxiliary Materials for Industry, as well as guaranteeing the distribution of Raw
Materials and/or Auxiliary Materials within the territory of the Republic of Indonesia through mapping and
stipulation of areas for the provision of Raw Materials and/or Auxiliary Materials, recognition of the use of
Alternative Raw Materials and/or Auxiliary Materials, as well as the development of upstream Industry and
Intermediate Industry based on natural resources.
Community participation in the development of Industry is aimed at encouraging community involvement
in improving the progress and success of the development of Industry, which is manifested in the provision
of suggestions, opinions and proposals as well as the delivery of information and reports, among others, in
relation to the level of conformity between the implementation of Industrial development that has been
going on with the Industrial development plan as well as information related to the implementation of an
environmentally friendly Industry.
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Strategic Industry is a priority Industry that fulfills important needs to the welfare of the people or affects
the lives of many, increases or produces added value to strategic natural resources, or has links to state
defense and security interests. Although the existence of Strategic Industry has been realized in the
development of the national Industry, in reality, Strategic Industry has not played a significant role. This is
due to several factors, including the relatively large investment value, high business risk, relatively small
profit margin, and high technology requirements. Therefore, the development of Strategic Industry cannot
fully expect the role of the private sector considering the aforementioned factors, thus requiring the
involvement and control of the Government to accelerate the development of Strategic Industry. The
control of the Government in the development of Strategic Industry is carried out through ownership
arrangements, policy establishment, licensing arrangements, production, distribution, and pricing
arrangements, as well as supervision.
In the implementation of the development of Industry, the Government shall pay special attention to the
supervision and control of Industrial business activities and Industrial Area business activities to determine
the fulfillment and compliance of Industrial Company and Industrial Area Company in the implementation
of regulations in the industrial sector, among others related to Industry’s human resources, utilization of
natural resources, energy management, water management, SNI, Technical Specification, and/or Code of
Conduct, Industrial Data and Industrial Area Data, Green Industry Standard, Industrial Zone standard,
Business Licensing for Industry’s business activities and Business Licensing for Industrial Area business
activities, and security and safety of equipment, processes, products, as well as storage and
transportation.
The government shall provide guidance and supervision to conformity assessment institution which
conducts conformity assessment on SNI, Technical Specifications, and/or Code of Conduct. The guidance
shall be carried out in the form of strengthening in relation to testing, inspection, and certification of
Industrial goods and/or services through the provision of technical assistance, consultation, and education
and training, as well as conducting development by conducting conformity assessment cooperation at the
national and international level. Supervision shall be carried out in the form of supervision of certification
activities by requesting reports on the implementation of certification, quality conformity testing, and
inspection results.
The main regulation points in this Regulation of the Government shall include the ease of obtaining Raw
Materials and/or Auxiliary Materials, guidance and supervision of conformity assessment institutions,
Strategic Industry, community participation in the development of Industry, and supervision and control of
Industrial businesses and Industrial Area businesses.
II. ARTICLE BY ARTICLE
Article 1
Self-explanatory.
Article 2
Self-explanatory.
Article 3
Paragraph (1)
Self-explanatory.
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Paragraph (2)
Letter a
Self-explanatory.
Letter b
Self-explanatory.
Letter c
"Raw Materials and/or Auxiliary Materials from byproducts" such as Fly Ash, Bottom Ash, Slag,
Nickel Slag, Molasses, Bentonite, Gypsum, Bleaching Earth in the context of Circular Economy.
Letter d
“Recycled Raw Materials and/or Auxiliary Materials” such as plastic bottles, broken glass, scraps of
fabric/yarn, steel scrap, paper, tires, etc., in the framework of a Circular Economy.
Paragraph (3)
Self-explanatory.
Paragraph (4)
Self-explanatory.
Article 4
Self-explanatory.
Article 5
Self-explanatory.
Article 6
Self-explanatory.
Article 7
Self-explanatory.
Article 8
Letter a
Self-explanatory.
Letter b
Self-explanatory.
Letter c
“Establishment of upstream Industry and natural resource-based Industry” is the establishment of
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upstream Industry and Intermediate Industry based on natural resources to create a manufacturing-based
Industry as producers of Raw Materials and/or Auxiliary Materials to be used by downstream Industries.
Article 9
Paragraph (1)
Self-explanatory.
Paragraph (2)
Self-explanatory.
Paragraph (3)
Self-explanatory.
Paragraph (4)
Self-explanatory.
Paragraph (5)
Self-explanatory.
Paragraph (6)
Restriction of Export shall be carried out to guarantee the availability of Raw Materials and/or Auxiliary
Materials.
Article 10
Self-explanatory.
Article 11
Paragraph (1)
"Commodity balance" is data and information containing, among others, the situation of consumption and
production of certain commodities for population needs and industrial needs within a certain period, which
is determined and applies nationally.
Paragraph (2)
Self-explanatory.
Paragraph (3)
Letter a
Self-explanatory.
Letter b
Amount/volume of required Raw Materials and/or Auxiliary Materials shall include the allocation of
utilization and place of entry of the required Raw Materials and/or Auxiliary Materials.
Letter c
Self-explanatory.
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Letter d
Self-explanatory.
Paragraph (4)
Letter a
Self-explanatory.
Letter b
Amount/volume of Raw Materials and/or Auxiliary Materials available domestically shall include the
location of Raw Materials and/or Auxiliary Materials that are available domestically.
Letter c
Self-explanatory.
Letter d
Self-explanatory.
Paragraph (5)
Self-explanatory.
Article 12
Paragraph (1)
Self-explanatory.
Paragraph (2)
Self-explanatory.
Paragraph (3)
“At any time if necessary” is a condition of shortage of Raw Materials and/or Auxiliary Materials resulting
from, among others, natural disasters, non-natural disasters, the need for Raw Materials and/or Auxiliary
Materials for new investments, priority Government programs and/or other conditions.
Paragraph (4)
"Integrated information system" is the Indonesia National Single Window system that is integrated with the
SIINas, the INATRADE, and information systems of relevant ministries/agencies.
Article 13
Paragraph (1)
Self-explanatory.
Paragraph (2)
Technical coordination meeting is held in the context of preparing materials for the coordination
meeting of ministers and/or officials of the senior/middle administrator.
Article 14
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Paragraph (1)
Self-explanatory.
Paragraph (2)
Self-explanatory.
Paragraph (3)
The stipulation of the plan for Industrial needs shall be prepared by taking into account the national
industrial development master plan and the national industrial policy.
The source of the preparation of the Industrial needs plan shall come from Industrial Companies.
Article 15
Paragraph (1)
"Centers that provide Raw Materials and/or Auxiliary Materials " are business entities that provide Raw
Materials and/or Auxiliary Materials to fulfill the needs of Raw Materials and/or Auxiliary Materials for small
Industry and medium Industry.
Paragraph (2)
Self-explanatory.
Paragraph (3)
Self-explanatory.
Article 16
Self-explanatory.
Article 17
Self-explanatory.
Article 18
"Available data" is referred to as data received from the relevant ministries or non-ministerial government
agencies.
Article 19
Self-explanatory.
Article 20
Self-explanatory.
Article 21
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Self-explanatory.
Article 22
Self-explanatory.
Article 23
Self-explanatory.
Article 24
Self-explanatory.
Article 25
Self-explanatory.
Article 26
Self-explanatory.
Article 27
Self-explanatory.
Article 28
Self-explanatory.
Article 29
Self-explanatory.
Article 30
Self-explanatory.
Article 31
Self-explanatory.
Article 32
Self-explanatory.
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Article 33
Self-explanatory.
Article 34
This Article is derived from Article 5 of Regulation of the Government Number 2 of 2017 on the Construction of
Industrial Facilities and Infrastructures (State Gazette of the Republic of Indonesia of 2017 Number 9,
Supplement to the State Gazette of the Republic of Indonesia Number 6016).
Article 35
Self-explanatory.
Article 36
Self-explanatory.
Article 37
Self-explanatory.
Article 38
This Article is derived from Article 11 of Regulation of the Government Number 2 of 2017 on the Construction of
Industrial Facilities and Infrastructures (State Gazette of the Republic of Indonesia of 2017 Number 9,
Supplement to the State Gazette of the Republic of Indonesia Number 6016).
Paragraph (1)
Self-explanatory.
Paragraph (2)
Self-explanatory.
Paragraph (3)
Self-explanatory.
Paragraph (4)
Self-explanatory.
Paragraph (5)
Self-explanatory.
Paragraph (6)
Self-explanatory.
Paragraph (7)
Self-explanatory.
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Paragraph (8)
Letter a
"Similar scope" shall include, among others, similar in terms of Raw Materials and test methods.
Letter b
Self-explanatory.
Paragraph (9)
Self-explanatory.
Paragraph (10)
Self-explanatory.
Paragraph (11)
Self-explanatory.
Paragraph (12)
Self-explanatory.
Paragraph (13)
Self-explanatory.
Article 39
Self-explanatory.
Article 40
Self-explanatory.
Article 41
This Article is derived from Article 13 of Regulation of the Government Number 2 of 2017 on the Construction of
Industrial Facilities and Infrastructures (State Gazette of the Republic of Indonesia of 2017 Number 9,
Supplement to the State Gazette of the Republic of Indonesia Number 6016).
Article 42
Self-explanatory.
Article 43
This Article is derived from Article 19 of Regulation of the Government Number 2 of 2017 on the Construction of
Industrial Facilities and Infrastructures (State Gazette of the Republic of Indonesia of 2017 Number 9,
Supplement to the State Gazette of the Republic of Indonesia Number 6016).
Paragraph (1)
Self-explanatory.
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Paragraph (2)
Letter a
Self-explanatory.
Letter b
"Coordinating supervision" is a joint cooperation between the Minister with ministers and/or heads
of non-ministerial government agencies related to their duties and functions.
Paragraph (3)
Self-explanatory.
Article 44
Self-explanatory.
Article 45
This Article is derived from Article 20 of Regulation of the Government Number 2 of 2017 on the Construction of
Industrial Facilities and Infrastructures (State Gazette of the Republic of Indonesia of 2017 Number 9,
Supplement to the State Gazette of the Republic of Indonesia Number 6016).
Article 46
This Article is derived from Article 25 of Regulation of the Government Number 2 of 2017 on the Construction of
Industrial Facilities and Infrastructures (State Gazette of the Republic of Indonesia of 2017 Number 9,
Supplement to the State Gazette of the Republic of Indonesia Number 6016).
Paragraph (1)
Self-explanatory.
Paragraph (2)
"Other sectors" are sectors other than the industrial sector which are related to the object of supervision,
including trade, energy and mineral resources, and agriculture.
Paragraph (3)
Self-explanatory.
Paragraph (4)
Self-explanatory.
Paragraph (5)
Self-explanatory.
Article 47
Self-explanatory.
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Article 48
Self-explanatory.
Article 49
Self-explanatory.
Article 50
Self-explanatory.
Article 51
Self-explanatory.
Article 52
Self-explanatory.
Article 53
Self-explanatory.
Article 54
Self-explanatory.
Article 55
Self-explanatory.
Article 56
Self-explanatory.
Article 57
Self-explanatory.
Article 58
Self-explanatory.
Article 59
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Self-explanatory.
Article 60
This Article is derived from Article 44 of Government Regulation Number 29 of 2018 on Industrial Empowerment
(State Gazette of the Republic of Indonesia of 2018 Number 101, Supplement to the State Gazette of the
Republic of Indonesia Number 6220).
Paragraph (1)
Letter a
Self-explanatory.
Letter b
"Strategic natural resources" shall include renewable and non-renewable, biological and non-
biological resources, of limited existence, high economic value, as alternative natural resources,
have the potential as alternative raw materials, rare minerals, required to fulfill its downstream
industry.
Letter c
Self-explanatory.
Paragraph (2)
Self-explanatory.
Paragraph (3)
Self-explanatory.
Article 61
This article is derived from Article 45 of Government Regulation Number 29 of 2018 on Industrial Empowerment
(State Gazette of the Republic of Indonesia of 2018 Number 101, Supplement to the State Gazette of the
Republic of Indonesia Number 6220).
Paragraph (1)
Letter a
Total equity participation by the Central Government shall include industry which:
1. may only be owned by the Central Government in accordance with laws and regulations; or
1. not attractive to private investors but required by the state and/or the public.
Letter b
Self-explanatory.
Letter c
Self-explanatory.
Paragraph (2)
Self-explanatory.
Paragraph (3)
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The Central Government may form joint ventures, either with national private parties or foreign private
parties.
Article 62
This Article is derived from Article 49 of Government Regulation Number 29 of 2018 on Industrial Empowerment
(State Gazette of the Republic of Indonesia of 2018 Number 101, Supplement to the State Gazette of the
Republic of Indonesia Number 6220).
Paragraph (1)
Self-explanatory.
Paragraph (2)
Self-explanatory.
Paragraph (3)
Self-explanatory.
Paragraph (4)
"Fiscal facilities" shall include the granting of import duty exemption or relief on imported goods, VAT
(PPN) exemption, or non-collection of VAT, or exemption from Article 22 of import PPh.
Paragraph (5)
Self-explanatory.
Article 63
Self-explanatory.
Article 64
This Article is derived from Article 51 of Government Regulation Number 29 of 2018 on Industrial Empowerment
(State Gazette of the Republic of Indonesia of 2018 Number 101, Supplement to the State Gazette of the
Republic of Indonesia Number 6220).
Paragraph (1)
Self-explanatory.
Paragraph (2)
Self-explanatory.
Paragraph (3)
Self-explanatory.
Paragraph (4)
Self-explanatory.
Paragraph (5)
Letter a
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Self-explanatory.
Letter b
"Emergency" is referred to natural disasters and non-natural disasters.
Paragraph (6)
Self-explanatory.
Article 65
This article is derived from Article 52 of Government Regulation Number 29 of 2018 on Industrial Empowerment
(State Gazette of the Republic of Indonesia of 2018 Number 101, Supplement to the State Gazette of the
Republic of Indonesia Number 6220).
Article 66
This article is derived from Article 53 of Government Regulation Number 29 of 2018 on Industrial Empowerment
(State Gazette of the Republic of Indonesia of 2018 Number 101, Supplement to the State Gazette of the
Republic of Indonesia Number 6220).
Article 67
Self-explanatory.
Article 68
Self-explanatory.
Article 69
Self-explanatory.
Article 70
Self-explanatory.
Article 71
Self-explanatory.
Article 72
Self-explanatory.
Article 73
Self-explanatory.
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Article 74
Self-explanatory.
Article 75
Self-explanatory.
Article 76
Self-explanatory.
Article 77
Self-explanatory.
Article 78
Self-explanatory.
Article 79
Self-explanatory.
Article 80
Self-explanatory.
Article 81
Self-explanatory.
Article 82
Self-explanatory.
Article 83
Self-explanatory.
Article 84
Self-explanatory.
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Article 85
Self-explanatory.
Article 86
Self-explanatory.
Article 87
Self-explanatory.
Article 88
Self-explanatory.
Article 89
Self-explanatory.
Article 90
Self-explanatory.
Article 91
Self-explanatory.
Article 92
Self-explanatory.
Article 93
Self-explanatory.
Article 94
Self-explanatory.
Article 95
Self-explanatory.
Article 96
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Self-explanatory.
Article 97
Self-explanatory.
Article 98
Self-explanatory.
Article 99
Self-explanatory.
Article 100
Self-explanatory.
Article 101
Self-explanatory.
Article 102
Self-explanatory.
Article 103
Self-explanatory.
Article 104
Self-explanatory.
Article 105
Self-explanatory.
Article 106
Self-explanatory.
Article 107
Self-explanatory.
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Article 108
Self-explanatory.
Article 109
Self-explanatory.
Article 110
Self-explanatory.
Article 111
Self-explanatory.
Article 112
Self-explanatory.
Article 113
Self-explanatory.
Article 114
Self-explanatory.
Article 115
Self-explanatory.
Article 116
Self-explanatory.
Article 117
Self-explanatory.
Article 118
Self-explanatory.
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Article 119
Self-explanatory.
Article 120
Self-explanatory.
Article 121
Self-explanatory.
Article 122
Self-explanatory.
Article 123
Self-explanatory.
Article 124
Self-explanatory.
Article 125
Self-explanatory.
Article 126
Self-explanatory.
Article 127
Self-explanatory.
Article 128
Self-explanatory.
Article 129
Self-explanatory.
Article 130
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Self-explanatory.
Article 131
Self-explanatory.
Article 132
Self-explanatory.
Article 133
Self-explanatory.
Article 134
Self-explanatory.
Article 135
Self-explanatory.
Article 136
Self-explanatory.
Article 137
Self-explanatory.
Article 138
Self-explanatory.
Article 139
Self-explanatory.
Article 140
Self-explanatory.
Article 141
Self-explanatory.
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Article 142
Self-explanatory.
Article 143
Self-explanatory.
Article 144
Self-explanatory.
Article 145
Self-explanatory.
Article 146
Self-explanatory.
Article 147
Self-explanatory.
Article 148
Self-explanatory.
Article 149
Self-explanatory.
Article 150
Self-explanatory.
Article 151
Self-explanatory.
Article 152
Self-explanatory.
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Article 153
Self-explanatory.
Article 154
Self-explanatory.
Article 155
Self-explanatory.
Article 156
Self-explanatory.
Article 157
Self-explanatory.
Article 158
Self-explanatory.
Article 159
Self-explanatory.
Article 160
Self-explanatory.
Article 161
Self-explanatory.
Article 162
Self-explanatory.
Article 163
Self-explanatory.
Article 164
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Self-explanatory.
Article 165
Self-explanatory.
Article 166
Self-explanatory.
Article 167
Self-explanatory.
Article 168
Self-explanatory.
Article 169
Self-explanatory.
Article 170
Self-explanatory.
Article 171
Self-explanatory.
Article 172
Self-explanatory.
Article 173
Self-explanatory.
Article 174
Self-explanatory.
Article 175
Self-explanatory.
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