WORLD TRADE GATS/SC/43/Suppl.3
26February 1998
ORGANIZATION(98-0715)
Trade inServices
INDONESIA
Schedule ofSpecific Commitments
Supplement 3
(This isauthentic inEnglish only)
____________________
Thistextreplaces theFinancial Services section contained indocument GATS/SC/43/Suppl.1.GATS/SC/43/Suppl.3
Page2INDONESIA
SCHEDULE OFSPECIFIC COMMITMENTS
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
FINANCIAL SERVICES:
General conditions onNonBanking Financial Services Subsector:
1. AllMarket Access andNational Treatment limitations specified intheNonBanking Financial Services Subsector willbeeliminated bytheyear2020 subject
tosimilar commitment byother Members.
2. Theshare ownership offoreign services supplier isbound attheprevailing laws andregulations. Theconditions ofownership andthepercentage share of
ownership asstipulated intherespective shareholder agreement establishing theexisting individual joint venture innonbanking financial services shall be
respected. Notransfer ofownership shall takeplace without theconsent ofallparties inthejoint venture concerned.
3. Limitation onnational treatment interms oftaxation which isspecified intheHorizontal Measures isnotapplied ontheNonBanking Financial Services
Subsector.
4. Inaddition totheHorizontal Measures, temporary entry willbegranted totechnical expert(s)/adviser(s) fornolonger than3(three) months perperson forany
given year.
5. Share ofnon-bank financial companies listed inthestock exchange maybe100% owned byforeign investors.
6. Inrelation tothepresence ofnatural persons, onlydirectors, managers, andexperts/advisors canbeassumed byexpatriates withmaximum stayof3years and
canbeextended.
7. Alljoint ventures companies shall provide training fortheir employee.
8. Limitation onnational treatment interms ofdifference inpaidupcapital requirement willbeeliminated intheyear1998.GATS/SC/43/Suppl.3
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Non-Life Insurance Services
(CPC 8129)(1) Unbound
(2) Unbound except if:
a.There isnoinsurance company in
Indonesia, either individually or
group, which could handle the
insurance risks oftheobject in
question.
b.There isnoinsurance company in
Indonesia which want tocarry outan
insurance coverage oftheobject in
question.
c.Theowners ofinsurance objects in
question arenotIndonesian citizens
orIndonesian legal entities.
(3) Asspecified intheHorizontal Measures
andGeneral Conditions.
(4) Unbound except fordirector andtechnical
advisor/expert.(1) Unbound
(2) Unbound
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.GATS/SC/43/Suppl.3
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Reinsurance Services (1) Reinsurance service supplier from other
member must berated minimum asBBBby
Standard andPoor orequivalent.
(2) Reinsurance service supplier from other
member must berated minimum asBBBby
Standard andPoor orequivalent.
(3) Asspecified intheHorizontal Measures
andGeneral Conditions.
(4) Unbound except fordirector andtechnical
advisor/expert.(1) None
(2) Unbound
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.
LifeInsurance Services
(CPC 8121)(1) Unbound
(2) Unbound except if:
a.There isnoinsurance company in
Indonesia, either individually or
group, which could handle the
insurance risks oftheobject in
question.
b.There isnoinsurance company in
Indonesia which wants tocarry outan
insurance coverage oftheobject in
question.
c.Theowners ofinsurance objects in
question arenotIndonesian citizens or
Indonesian legal entities.(1) Unbound
(2) Unbound
(3) Asspecified intheHorizontal Measures
andGeneral Conditions.
(4) Unbound except fordirector andtechnical
advisor/expert.(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.GATS/SC/43/Suppl.3
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Insurance Brokerage Services
(CPC 8140)(1) Unbound
(2) None
(3) Asspecified intheHorizontal Measures
andGeneral Conditions.
(4) Unbound except fordirector andtechnical
advisor/expert.(1) None
(2) None
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.
Reinsurance Brokerage Services
(CPC 8140)(1) Unbound
(2) None
(3) Asspecified intheHorizontal Measures
andGeneral Conditions.
(4) Unbound except fordirector andtechnical
advisor/expert.(1) None
(2) None
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.
Financial Lease Services
(CPC 81120)(1) None
(2) None
(3) Asspecified intheHorizontal Measures
andGeneral Conditions.
(4) Unbound except asindicated inthe
Horizontal Measures.(1) None
(2) None
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.GATS/SC/43/Suppl.3
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Factoring Services
(CPC 8113)(1) Unbound except forinternational factoring
transaction.
(2) None
(3) Asspecified intheHorizontal Measures
andGeneral Conditions.
(4) Unbound except asindicated inthe
Horizontal Measures.(1) Unbound
(2) None
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.
Credit Card Business (Issuer and
Agent ofCredit Card)
(CPC 8113)(1) None
(2) None
(3) Asspecified intheHorizontal Measures
andGeneral Conditions.
(4) Unbound except asindicated inthe
Horizontal Measures.(1) None
(2) None
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.
Consumers Finance Services
(CPC 8113)(1) None
(2) None
(3) Asspecified intheHorizontal Measures
andGeneral Conditions.
(4) Unbound except asindicated inthe
Horizontal Measures.(1) None
(2) None
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.GATS/SC/43/Suppl.3
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Securities Business
-Tradingforownaccount
orfor account of
customers,onan
exchangeor
over-the-counter market
-Listed shares
-Bonds(1) Unbound
(2) None
(3) Through establishment ofasecurities
broker /dealer.
(4) Unbound except asindicated inthe
Horizontal Measures.(1) Unbound
(2) None
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.
Participationinissuesof
securities, including underwriting
andplacement asagent (whether
publicly or privately), and
provision ofservices related to
such issues(1) Unbound
(2) None
(3) Through establishment ofasecurities
underwriter company.
(4) Unbound except asindicated inthe
Horizontal Measures.(1) Unbound
(2) None
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.
Portfolio management, allforms
ofcollectiveinvestment
management(1) Unbound
(2) None
(3) Through establishment ofaninvestment
management company.
(4) Unbound except fordirectors.(1) Unbound
(2) None
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.GATS/SC/43/Suppl.3
Page8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Asset Management limited onlyto
investment fund management(1) Unbound
(2) None
(3) Through establishment ofaninvestment
management company.
(4) Unbound except fordirectors.(1) Unbound
(2) None
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.
Investment Advisory Services
limited only toinvestment
advisory incapital market(1) Unbound
(2) None
(3) Through establishment ofaninvestment
management company.
(4) Unbound except fordirectors.(1) Unbound
(2) None
(3) Asspecified intheGeneral Conditions.
(4) Asspecified intheHorizontal Measures.GATS/SC/43/Suppl.3
Page9Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Banking Subsector: General Conditions onBanking Subsector.
1. AllMarket Access andNational Treatment limitation specified inthebanking subsector willbeeliminated bytheyear2020 subject tosimilar commitment by
other members.
2. With theexception oftheexisting branches offoreign banks, foreign services provider shall beintheform ofjoint venture bank locally incorporated in
Indonesia withthefollowing requirements:
(a)Unbound fornewlicense
(b)Only bank institutions arepermitted toestablish joint venture banks.
3. Theshare ownership offoreign services supplier inthejoint venture bank isbound atprevailing laws andregulation. Theconditions ofownership andthe
percentage share ofownership asstipulated intherespective shareholder agreement establishing theexisting individual joint venture bank shall berespected as
thebasis ofownership oftheforeign service provider(s) andtheir Indonesian partner(s). Notransfer ofownership shall takeplace without theconsent ofall
parties inthejoint venture bank concerned.
4. Acquisition oflocal existing banks isallowed through thepurchase ofupto49% oftheshares oflocally incorporated bank listed inthestock exchange.
5. Limitation onnational treatment interms ofdifference inpaidupcapital requirement willbeeliminated intheyear1998.
6. Foreign bank andjoint ventures bank mayopen their offices inthecities ofJakarta, Surabaya, Semarang, Bandung, Medan, Ujung Pandang, Denpasar and
Batam Island.
7. With respect tothepresence ofnatural persons noeconomic needs testwillapply. AnonIndonesian employed asmanager orastechnical expert shall have at
least twoIndonesian under studies during his/her term.
8. Inaddition totheHorizontal Measures, temporary entry willbegranted totechnical expert(s)/advisor(s) ofbranch office oftheforeign bank andjoint venture
bank fornolonger than3(three) months perperson foranygiven year.
9. Limitation onnational treatment interms oftaxation which isspecified inHorizontal Measures isnotapplied ontheBanking Subsector.GATS/SC/43/Suppl.3
Page10Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
Commercial Banking Business
(i) Acceptance ofdeposits and
other repayable funds from
thepublic(1) None
(2) None
(3) a.Bound only 1(one) sub-branch and
1(one) auxiliary offices forforeign
bank'sbranch office.
b.Bound only1(one) branch and1(one)
sub-branch forjoint venture bank.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.(1) None
(2) None
(3) a.For foreign bank branch, only
executive position canbeassumed by
expatriates withlimitation thatatleast
one ofthem shall beIndonesian
national.
b.Forthejoint venture bank, only for
thedirector canbeassumed bythe
expatriates inproportion tothe
ownership sharing.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.
(ii) Lending ofalltypes,
including consumer credit,
mortgage, credit, factoring,
andfinancing of
commercial transaction(1) None
(2) None
(3) a.Bound only 1(one) sub-branch and
1(one) auxiliary offices forforeign
bank'sbranch office.(1) None
(2) None
(3) a.For foreign bank branch, only
executive position canbeassumed by
expatriates withlimitation thatatleast
one ofthem shall beIndonesian
national.GATS/SC/43/Suppl.3
Page11Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
b.Bound only1(one) branch and1(one)
sub-branch forjoint venture bank.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.b.Forthejoint venture bank, only for
thedirector canbeassumed bythe
expatriates inproportion tothe
ownership sharing.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.
(iii) Allpayment andmoney
transmission services
including credit, charge and
debit cards, travellers
cheques andbankers drafts(1) None
(2) None
(3) a.Bound only 1(one) sub-branch and
1(one) auxiliary offices forforeign
bank'sbranch office.
b.Bound only1(one) branch and1(one)
sub-branch forjoint venture bank.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.(1) None
(2) None
(3) a.For foreign bank branch, only
executive position canbeassumed by
expatriates withlimitation thatatleast
one ofthem shall beIndonesian
national.
b.Forthejoint venture bank, only for
thedirector canbeassumed bythe
expatriates inproportion tothe
ownership sharing.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.
(iv) Guarantees and
Commitments(1) None
(2) None
(3) a.Bound only 1(one) sub-branch and
1(one) auxiliary offices forforeign
bank'sbranch office.(1) None
(2) None
(3) a.For foreign bank branch, only
executive position canbeassumed by
expatriates withlimitation thatatleast
one ofthem shall beIndonesian
national.GATS/SC/43/Suppl.3
Page12Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
b.Bound only1(one) branch and1(one)
sub-branch forjoint venture bank.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.b.Forthejoint venture bank, only for
thedirector canbeassumed bythe
expatriates inproportion tothe
ownership sharing.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.
(v) Trading forownaccount or
foraccount ofcustomers,
whether onanexchange, in
anover-the-counter market
orotherwise, thefollowing:
-Moneymarket
instruments (including
cheques,bills,
certificates ofdeposits)(1) None
(2) None
(3) a.Bound only 1(one) sub-branch and
1(one) auxiliary offices forforeign
bank'sbranch office.
b.Bound only1(one) branch and1(one)
sub-branch forjoint venture bank.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.(1) None
(2) None
(3) a.For foreign bank branch, only
executive position canbeassumed by
expatriates withlimitation thatatleast
one ofthem shall beIndonesian
national.
b.Forthejoint venture bank, only for
thedirector canbeassumed bythe
expatriates inproportion tothe
ownership sharing.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.
-Foreign Exchange (1) None
(2) None
(3) a.Bound only 1(one) sub-branch and
1(one) auxiliary offices forforeign
bank'sbranch office.(1) None
(2) None
(3) a.For foreign bank branch, only
executive position canbeassumed by
expatriates withlimitation thatatleast
one ofthem shall beIndonesian
national.GATS/SC/43/Suppl.3
Page13Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
b.Bound only1(one) branch and1(one)
sub-branch forjoint venture bank.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.b.Forthejoint venture bank, only for
thedirector canbeassumed bythe
expatriates inproportion tothe
ownership sharing.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.
-Exchange rate and
interestrateinstruments,
including products such
asswaps, forward rate
agreements(1) None
(2) None
(3) a.Bound only 1(one) sub-branch and
1(one) auxiliary offices forforeign
bank'sbranch office.
b.Bound only1(one) branch and1(one)
sub-branch forjoint venture bank.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.(1) None
(2) None
(3) a.For foreign bank branch, only
executive position canbeassumed by
expatriates withlimitation thatatleast
one ofthem shall beIndonesian
national.
b.Forthejoint venture bank, only for
thedirector canbeassumed bythe
expatriates inproportion tothe
ownership sharing.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.
-Transferable securities
issued inthemoney
market(1) None
(2) None
(3) a.Bound only 1(one) sub-branch and
1(one) auxiliary offices forforeign
bank'sbranch office.(1) None
(2) None
(3) a.For foreign bank branch, only
executive position canbeassumed by
expatriates withlimitation thatatleast
one ofthem shall beIndonesian
national.GATS/SC/43/Suppl.3
Page14Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional
Commitments
b.Bound only1(one) branch and1(one)
sub-branch forjoint venture bank.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.b.Forthejoint venture bank, only for
thedirector canbeassumed bythe
expatriates inproportion tothe
ownership sharing.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.
(vi)Cashmanagement,
custodial anddepository
services(1) None
(2) None
(3) a.Bound only 1(one) sub-branch and
1(one) auxiliary offices forforeign
bank'sbranch office.
b.Bound only1(one) branch and1(one)
sub-branch forjoint venture bank.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.(1) None
(2) None
(3) a.For foreign bank branch, only
executive position canbeassumed by
expatriates withlimitation thatatleast
one ofthem shall beIndonesian
national.
b.Forthejoint venture bank, only for
thedirector canbeassumed bythe
expatriates inproportion tothe
ownership sharing.
(4) Unbound except asindicated inthe
HorizontalMeasuresandGeneral
Conditions onBanking Subsector.