WORLD TRADE
ORGANIZATIONS/DCS/W/IDN
24 January 2003
(03-0465)
Trade in Services Original:  English
INDONESIA
Draft consolidated Schedule of Specific Commitments1
Attached is a draft consolidated version of the Schedule of Specific Commitments of
Indonesia in word format.  This document  does not substitute for the legally binding commitments
undertaken by Indonesia in its Schedule of Specific Commitments (GATS/SC/43;
GATS/SC/43/Suppl .2; GATS/SC/43/Suppl.3).
Attached to the draft consolidated schedule is  Indonesia's draft consolidated Article II (MFN)
Exemption List (GATS/EL/43; GATS/EL/43/Suppl.1) in word format.
The draft consolidated versions of the Schedule and the MFN Exemption List were prepared
by the Secretariat, at the request of Members, to facilitate the process of negotiations, including the
presentation of initial offers.
_______________
                                                          
1 This document has been prepared, in English only, under the Secretariat's own responsibility and without
prejudice to the positions of Members and to their rights and obligations under the WTO.S/DCS/W/IDN
Page 2INDONESIA – SCHEDULE OF SPECIFIC COMMITMENTS
Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
I. HORIZONTAL
COMMITMENTS
ALL SECTORSINCLUDED IN  THISSCHEDULE
1),2)As specified in each sector 1),2)As specified in each sector
3) Commercial Presence of the foreign service
provider(s) may be in the form of joint ventureand/or representative office, unless mentionedotherwise.
Joint venture should meet the following
requirements:3) The Income Tax Law provides that non-resident
taxpayers will be subject to withholding tax of20% if they derive the following income fromIndonesian source:
(a) interest
(b) royalties(c) dividend(d) fee from service performed in Indonesia
(i) should be in the form of Limited Liability 
Enterprise (Perseroan Terbatas/PT),
(ii)  not more than 49% of the capital share of
the Limited Liability Enterprise (Perseroan Terbatas/PT), may be owned by foreign partner(s).Land Acquisition
Undang-Undang Pokok Agraria (Land Law)No. 5 of 1960 stipulates that no foreigners(juridical and natural persons) are allowed toown land.  However, a joint venture enterprisecould hold the right for land use (Hak Guna
Usaha) and building rights (Hak Guna
Bangunan), and they may rent/lease land andproperty.
Any juridical and natural persons should meetprofessional qualification requirements.S/DCS/W/IDN
Page 3Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
4) Subject to Indonesian Labour and Immigration
Laws and Regulations, only directors,managers and technical experts/advisors,unless mentioned otherwise, are allowed with
a maximum stay of two years subject to one
year extension.  Manager and technicalexperts (intra corporate transfer) are allowedbased on an economic needs test.4) Expatriate Charges
Any foreign natural persons supplying servicesare subject to charges levied by National,Provincial and Municipal Governments.
Labour Laws and Regulations.
Any expatriate employed by a joint-ventureenterprise, representatives office, and/or othertypes of juridical person and/or an individual
services provider must hold a valid working
permit issued by the Ministry of Manpower.
Immigration Laws and Regulations.Any expatriate must meet immigrationrequirements and procedures to enter theterritory of the Republic of Indonesia
Definitions:
"Director":  One or a group of persons entrusted by the shareholders of a services providing entity with the final overall control and dire ction of the enterprise, and legally
responsible to act on behalf of the enterprises inside and/or outside of the court.
"Manager":  Senior employee of a service supplier who primarily directs th e management of the organization, receiving general supervision or direction principally from
the board of directors of the business, including directing the service supplier or a department or sub-division thereof, super vising or controlling the work of other
supervisory, professional or managerial employee or having the authority to hire or fire or recommend such or other personnel a ctions.
"Technical Expert/Advisor":  Person employed by a service supplier who possesses a standard of high or common (i) qualifications referring to a type of wor k or trade
requiring specific technical knowledge or (ii) knowledge essential or proprietal to the service, research equipment, techniques  or management.
"Joint Operator":  A joint operation is an undertaking between one or several foreign and Indonesian enterprises of temporary nature, to handle o ne or several
project/businesses without establishing a new statutory body according to Indonesian laws
"Joint venture Enterprise":  A joint venture enterprise is a legal entity organized under Indonesian law and having its domicile in Indonesia, in the form of cooperation
between foreign capital and Indonesian ( national) capital.
"Contract Management":  Contract management is a contract organized under Indonesian law in the form of cooperation on management of temporary nature between
Indonesian (national) capital and foreign capital.S/DCS/W/IDN
Page 4Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
II- SECTOR-SPECIFIC COMMITMENTS
Telecommunication
Services
All Subsectors (i) Indonesia undertakes
additional
commitments as perreference paperattached
(ii) The foreign service
supplier must be a
worldclass operatorwith extensiveinternationalexperience.
(iii) Type approval
mechanism is in place
(iv) Basic
telecommunicationservice tariff isdecided by thegovernment;
Local service:
- Public switched telephone
service (CPC 7521)
- Circuit switched public data
network services(CPC 7523**)
- Teleconferencing services
(CPC 75292)1) None
2) None3) Local services are provided exclusively by PT
Telkom and 5 regional joint operation schemeoperators.
Type of legal entity required:
- Joint venture,- Joint operation, or- Contract managementForeign equity participation is limited to 35
per cent.
4) Natural person for management and technical
expert for a JVC is limited to 20 persons.1) Unbound
2) Unbound3) None
4) As specified in horizontal measuresThe period of exclusivity
for  local services expiresin 2011. The Governmentwill conduct a review ofpolicy with respect to
whether to permit
additional suppliers ofsuch services upon theexpiry of this period.S/DCS/W/IDN
Page 5Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Long distance:
- Public switched telephone
service (CPC 7521)
- Circuit switched public data
network services(CPC 7523**)
- Teleconferencing services
(CPC 75292)1) None
2) None3) Long distance services are provided by PT
Telkom exclusively
Type of legal entity required:
- Joint venture- Joint operation or- Contract managementForeign equity participation is limited to 35
per cent.
4) Natural person for management and technical
expert for a JVC is limited to 20 persons.1) Unbound
2) Unbound3) None
4) As specified in horizontal measuresThe period of exclusivity
for long distance servicesexpires in 2006.  TheGovernment will conduct a
review of policy with
respect to whether topermit  additionalsuppliers of such servicesupon the expiry of this
period.
International:
- Public switched telephone
service (CPC 7521)
- Circuit switched public data
network services(CPC 7523**)
- Teleconferencing services
(CPC 75292)1) Only through networks of  PT Indosat and PT
Satelindo. Callback is not permitted.
2) Callback is not permitted.
3) International services are provided exclusively
by PT Indosat and PT Satelindo (duopoly).Type of legal entity required:- Joint venture- Joint operation or- Contract management
Foreign equity participation is limited to 35
per cent.
4) Natural person for management and technical
expert  is limited to 20 persons.1) Unbound
2) Unbound
3) None
4) As specified in horizontal measuresThe period of exclusivity
for international  servicesexpires in 2005.  The
Government will conduct a
review of policy withrespect to whether topermit  additionalsuppliers of such servicesupon the expiry of this
period.
Packet-switched public datanetwork services
(CPC 7523**)
-X .  2 5
- Frame relay
- Local
- Local distance- International1) Only through networks of PT Indosat and PT
Satelindo
2) None3) Three service suppliers are now operating on a
non-exclusive basisType of legal entity required:
- Joint venture or
- Joint operationForeign equity participation is limited to 35per cent.
4) Natural person for management and technical
expert is limited to 20 persons.1) Unbound
2) Unbound
3) None
4) As specified in horizontal measuresS/DCS/W/IDN
Page 6Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Telex services 1) Only through networks of  PT Indosat and PT
Satelindo
2) None3) Type of legal entity required:
- Joint venture or
- Joint operationForeign equity participation is limited to 35per cent.
4) Natural person for management and technical
expert limited to 20 persons.1) Unbound
2) Unbound
3) Foreign service supplier should be a worldclass
operator.
4) As specified in horizontal measures.
Telegraph services 1) Only through networks of PT Indosat and PT
Satelindo
2) None3) Type of legal entity required:
- Joint venture or
- Joint operation
Foreign equity participation is limited to 35per cent.
4) Natural person for management and technical
expert limited to 20 persons1) Unbound
2) Unbound
3) Foreign service supplier should be a worldclass
operator.
4) As specified in horizontal measures.
Domestic:
Mobile cellular telephone
services(CPC 75213)1) None
2) None3) Seven operators are now providing
serviceType of legal entity required: Joint ventureForeign equity participation is limited to 35
per cent
4) Natural person for management and technical
expert for a JVC is limited to 20 persons1) Unbound
2) Unbound3) None
4) As specified in horizontal measures.S/DCS/W/IDN
Page 7Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Domestic:
Personal Mobile Cellular
Communication Services1) None
2) None3) New entry only through a joint venture with
state-owned company
Foreign equity participation is limited to 35
per cent
4) Natural person for management and technical
expert for a JVC is limited to 20 persons.1) Unbound
2) Unbound3) None
4) As specified in horizontal measures
Internet Access Services 1) Until 2005, only through networks of PT
Indosat and PT Satelindo for international
access
2) None3) More than 30 licences have been issued
Type of legal entity required:- Joint venture or
- Joint operation
Foreign equity participation is limited to 35per cent.
4) Natural person for management and technical
expert limited to 20 persons1) Unbound
2) Unbound
3) None
4) As specified in horizontal measures
Domestic:
Regional and National Paging
Services(CPC 75291)1) None
2) None3) Currently there are 10 national operators and
over 70 local operators.Type of legal entity required- Joint venture or
- Joint operation
Foreign equity participation is limited to 35per cent
4) Natural person for management and technical
expert limited to 20 persons1) Unbound
2) Unbound3) None
4) As specified in horizontal measuresS/DCS/W/IDN
Page 8Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Domestic:
Public payphone services1) None
2) None3) Provision and management of terminal
equipment for public payphone services are
now carried out by several local companies.
Type of legal entity required:- Joint venture,- Joint operation, or- Contract management
Foreign equity participation is limited to 35
per cent.1) Unbound
2) Unbound3) None- Division of revenue
between the payphoneoperator and PTTelkom is determined
by the government
4) Natural person for management and technical
expert limited to 20 persons4) As specified in horizontal measures
Voice mail service
(CPC 7523)1) None
2) None
3) Access granted for five foreign service
provider companies, in addition to existingcompanies
4) Unbound except for director and technical
expert1) None
2) None
3) Higher paid-up capital is required of foreign
service suppliers than of domestic servicesuppliers.  This measure will be eliminated inthe year 2020.
4) As specified in the Horizontal Measures
Electronic mail services(CPC 75232)1) None
2) None3) Access granted for five foreign service
provider companies, in addition to existingcompanies
4) Unbound except for director and technical
expert1) None
2) None3) Higher paid-up capital is required of foreign
service suppliers than of domestic servicesuppliers.  This measure will be eliminated in
the year 2020.
4) As specified in the Horizontal Measures
Computer time sharingservices (CPC 84330)1) None
2) None
3) Access granted for five foreign service
provider companies, in addition to existingcompanies
4) Unbound except for director and technical
expert1) None
2) None
3) Higher paid-up capital is required of foreign
service suppliers than of domestic servicesuppliers.  This measure will be eliminated inthe year 2020.
4) As specified in the Horizontal MeasuresS/DCS/W/IDN
Page 9Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Videotex services
(CPC 75229)1) None
2) None3) Access granted for five foreign service
provider companies, in addition to existing
companies
4) Unbound except for director and technical
expert1) None
2) None3) Higher paid-up capital is required of foreign
service suppliers than of domestic service
suppliers.  This measure will be eliminated in
the year 2020.
4) As specified in the Horizontal Measures
Electronic mail box
(CPC 75232)1) None
2) None
3) Access granted for five foreign service
provider companies, in addition to existingcompanies
4) Unbound except for director and technical
expert1) None
2) None
3) Higher paid-up capital is required of foreign
service suppliers than of domestic servicesuppliers.  This measure will be eliminated inthe year 2020.
4) As specified in the Horizontal Measures
File transfer services(CPC 75299)1) None
2) None3) Access granted for five foreign service
provider companies, in addition to existing
companies
4) Unbound except for director and technical
expert1) None
2) None3) Higher paid-up capital is required of foreign
service suppliers than of domestic service
suppliers.  This measure will be eliminated in
the year 2020.
4) As specified in the Horizontal Measures
- Home telemetering alarm
(CPC 75299)1) None
2) None
3) Access granted for five foreign service
provider companies, in addition to existingcompanies
4) Unbound except for director and technical
expert.1) None
2) None
3) Higher paid-up capital is required of foreign
service suppliers than of domestic servicesuppliers.  This measure will be eliminated inthe year 2020.
4) As specified in the Horizontal Measures.S/DCS/W/IDN
Page 10Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
- Entertainment services
(CPC 75299)1) None
2) None3) Access granted for five foreign service
provider companies, in addition to existing
companies
4) Unbound except for director and technical
expert1) None
2) None3) Higher paid-up capital is required of foreign
service suppliers than of domestic service
suppliers.  This measure will be eliminated in
the year 2020.
4) As specified in the Horizontal Measures
- Management information
services (CPC 75299)1) None
2) None
3) Access granted for five foreign service
provider companies, in addition to existingcompanies
4) Unbound except for director and technical
expert1) None
2) None
3) Higher paid-up capital is required of foreign
service suppliers than of domestic servicesuppliers.  This measure will be eliminated inthe year 2020.
4) As specified in the Horizontal Measures
Industrial Services
Advisory and Consultative(CPC 86721)1) Unbound for government funded project
2) Unbound for government funded project
3) Joint operation through a representative office
in Indonesia
4) Unbound except for director and technical
expert1) Unbound
2) Unbound
3) The Indonesian participant in joint operation
must be member of Indonesian ConsultantAssociation
4) As specified in the Horizontal Measures
- Engineering design services
for industrial processes andproduction(CPC 86725)1) Unbound for government funded project
2) Unbound for government funded project3) Joint operation through a representative office
in Indonesia
4) Unbound except for director and technical
expert1) Unbound
2) Unbound3) The Indonesian participant in joint operation
must be member of Indonesian ConsultantAssociation
4) As specified in the Horizontal MeasuresS/DCS/W/IDN
Page 11Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Project management
services other than forconstruction(CPC 86601)1) Unbound for government funded project
2) Unbound for government funded project3) Joint operation through a representative office
in Indonesia
4) Unbound except for director and technical
expert1) Unbound
2) Unbound3) The Indonesian participant in joint operation
must be member of Indonesian Consultant
Association
4) As specified in the Horizontal Measures
Consultancy Services
related to the installation of
computer hardware
(CPC 841)1) Unbound for government funded project
2) Unbound for government funded project
3) Joint operation through a representative office
in Indonesia
4) Unbound except for director and technical
expert1) Unbound
2) Unbound
3) The Indonesian participant in joint operation
must be member of Indonesian ConsultantAssociation
4) As specified in the Horizontal Measures
Software implementationServices (CPC 842)1) Unbound for government funded project
2) Unbound for government funded project3) Joint operation through a representative office
in Indonesia
4) Unbound except for director and technical
expert1) Unbound
2) Unbound3) The Indonesian participant in joint operation
must be member of Indonesian ConsultantAssociation
4) As specified in the Horizontal Measures
Interdisciplinary R & D(CPC 853, limited toindustrial activities)1) Unbound for government funded project
2) Unbound for government funded project3) Joint operation through a representative office
in Indonesia
4) Unbound except for director and technical
expert1) Unbound
2) Unbound3) The Indonesian participant in joint operation
must be member of Indonesian Consultant
Association
4) As specified in the Horizontal Measures
Technical Testing and
Analysis Services
(CPC 8676)1) Unbound for government funded project
2) Unbound for government funded project
3) Joint operation through a representative office
in Indonesia
4) Unbound except for director and technical
expert1) Unbound
2) Unbound
3) The Indonesian participant in joint operation
must be member of Indonesian ConsultantAssociation
4) As specified in the Horizontal MeasuresS/DCS/W/IDN
Page 12Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Services incidental of
manufacturing(CPC 884 & 885)1) Unbound for government funded project
2) Unbound for government funded project3) Joint operation through a representative office
in Indonesia
4) Unbound except for director and technical
expert1) Unbound
2) Unbound3) The Indonesian participant in joint operation
must be member of Indonesian Consultant
Association
4) As specified in the Horizontal Measures
Maintenance and repair ofequipment (not including
maritime vessels, aircraft or
other transport equipment)(CPC 633 + 8861 + 8866)1) Unbound for government funded project
2) Unbound for government funded project
3) Joint operation through a representative office
in Indonesia
4) Unbound except for director and technical
expert1) Unbound
2) Unbound
3) The Indonesian participant in a joint operation
must be member of the Indonesian ConsultantAssociation.
4) As specified in the Horizontal Measures
Architectural Services(CPC 8671)1) Unbound
2) None3) (a) Joint operation:
To form a joint operation by establishing a representative office1) Unbound
2) Unbound3) (a) Joint operation:
1. Registration fee requirement2. Licence for representative office 
shall be valid for 3 years and can 
be extended
3. Registered foreign company shall 
form a joint operation with local partner(s) which is (are) member(s) of the Indonesian Consultant Association having 
qualification
(b) Joint venture:
to establish a joint venture company by fulfilling the requirements as specified in the Horizontal Measures and the Foreign 
Capital Investment Law(b) Joint venture:
Local partner(s) in joint venture shall be member(s) of the Indonesian Consultant Association and having qualification AS/DCS/W/IDN
Page 13Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Engineering Service
(CPC 8672 - except CPC86721-86725-86726)1) Unbound
2) None3) (a) Joint operation:
To form a joint operation by establishing 
a representative office1) Unbound
2) Unbound3) (a) Joint operation:
1. Registration fee requirement
2. Licence for representative office 
shall be valid for 3 years and can be extended
(b) Joint venture:
to establish a joint venture company by fulfilling the requirements as specified in
the Horizontal Measures and the Foreign 
Capital Investment Law
4) As specified in the Horizontal Measures3. Registered foreign company shall 
form a joint operation with local partner(s) which is (are) 
member(s) of the Indonesian 
Consultant  Association having qualification A
(b) Joint venture:
Local partner(s) in joint venture shall be member(s) of the Indonesian Consultant 
Association and having qualification A
4) As specified in the Horizontal Measures
Integrated Engineering
Services (CPC 8673)1) Unbound
2) None
3) (a) Joint operation:
To form a joint operation by establishing arepresentative office1) Unbound
2) Unbound
3) (a) Joint operation:
1. Registration fee requirement2. Licence for representative office 
shall be valid for 3 years and can be extended
3. Registered foreign company shall 
form a joint operation with local 
partner(s) which is (are) member(s) of the Indonesian Consultant Association having qualification A
(b) Joint venture:to establish a joint venture company byfulfilling the requirements as specified in theHorizontal Measures and the Foreign CapitalInvestment Law
4) As specified in the Horizontal Measures(b) Joint venture:
Local partner(s) in joint venture shall be member(s) of the Indonesian Consultant Association and having qualification A
4) As specified in the Horizontal MeasuresS/DCS/W/IDN
Page 14Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Urban Planning Services
(CPC 86742)1) Unbound
2) None3) (a) Joint operation:
To form a joint operation by establishing 
a representative office
(b) Joint venture:
to establish a joint venture company by 
fulfilling the requirements as specified in 
the Horizontal Measures and the Foreign Capital Investment Law
4) As specified in the Horizontal Measures1) Unbound
2) Unbound3) (a) Joint operation:
1. Registration fee requirement
2. Licence for representative office 
shall be valid for 3 years and can be extended
3. Registered foreign company shall 
form a joint operation with local 
partner(s) which is (are) 
member(s) of the Indonesian Consultant  Association having qualification A
(b) Joint venture:
Local partner(s) in joint venture shall be 
member(s) of the Indonesian Consultant 
Association and having qualification A
4) As specified in the Horizontal Measures
- Pre-erection work at
construction system
(CPC 511 except CPC
51110 and 51113)1) Unbound*
2) None
3) (a) Joint operation:
To form a joint operation by establishing a representative office
(b) Joint venture:
to establish a joint venture company by fulfilling the requirements as specified in the Horizontal Measures and the Foreign Capital Investment Law
4) As specified in the Horizontal Measures1) Unbound*
2) Unbound
3) (a) Joint operation:
1. Registration fee requirement2. Licence for representative office 
shall be valid for 3 years and can be extended
3. Registered foreign company shall 
form a joint operation with local 
partner(s) which is (are) member(s) of the Indonesian Contractors Association having qualification A.
(b) Joint venture:
Local partner(s) in joint venture shall be member(s) of the Indonesian Consultant Association and having qualification A
4) As specified in the Horizontal MeasuresS/DCS/W/IDN
Page 15Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Construction work for
building(CPC 512 except CPC51210)1) Unbound*
2) None3) (a) Joint operation:
To form a joint operation by establishing 
a representative office1) Unbound*
2) Unbound3) (a) Joint operation:
1. Registration fee requirement.
2. Licence for representative office 
shall be valid for 3 years and can be extended
(b) Joint venture:
to establish a joint venture company by fulfilling the requirements as specified in 
the Horizontal Measures and the Foreign 
Capital Investment Law
4) As specified in the Horizontal Measures3. Registered foreign company shall 
form a joint operation with local partner(s) which is (are) 
member(s) of the Indonesian 
Contractors Association having qualification A
(b) Joint venture:
Local partner(s) in joint venture shall be member(s) of the Indonesian Contractors 
Association and having qualification A
4) As specified in the Horizontal Measures
Construction work for civil
engineering
(CPC 513)1) Unbound*
2) None
3) (a) Joint operation:
To form a joint operation by establishing a representative office1) Unbound*
2) Unbound
3) (a) Joint operation:
1. Registration fee requirement2. Licence for representative office 
shall be valid for 3 years and can be extended
3. Registered foreign company shall 
form a joint operation with local 
partner(s) which is (are) member(s) of the Indonesian Contractors Association having qualification A
(b) Joint venture:
to establish a joint venture company by fulfilling the requirements as specified in the Horizontal Measures and the Foreign Capital Investment Law
4) As specified in the Horizontal Measures(b) Join venture:
Local partner(s) in joint venture shall be member(s) of the Indonesian Contractors Association and having qualification A
4) As specified in the Horizontal MeasuresS/DCS/W/IDN
Page 16Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Assembly and erection of
prefabricated construction(CPC 514 - 5140)1) Unbound*
2) None3) (a) Joint operation:
To form a joint operation by establishing 
a representative office1) Unbound*
2) Unbound3) (a) Joint operation:
1. Registration fee requirement
2. Licence for representative office 
shall be valid for 3 years and can be extended
3. Registered foreign company shall 
form a joint operation with local 
partner(s) which is (are) 
member(s) of the Indonesian Contractors Association having qualification A
(b) Joint venture:
to establish a joint venture company by fulfilling the requirements as specified in 
the Horizontal Measures and the Foreign 
Capital Investment Law
4) As specified in the Horizontal Measures(b) Joint venture:
Local partner(s) in joint venture shall be member(s) of the Indonesian Contractors 
Association and having qualification A
4) As specified in the Horizontal Measures
Special trade construction
work
(CPC 515 - 5155)1) Unbound*
2) None
3) (a) Joint operation:
To form a joint operation by establishing a representative office1) Unbound*
2) Unbound
3) (a) Joint operation:
1. Registration fee requirement2. Licence for representative office 
shall be valid for 3 years and can be extended
3. Registered foreign company shall 
form a joint operation with local 
partner(s) which is (are) member(s) of the Indonesian Contractors Association having qualification A
(b) Joint venture:
To establish a joint venture company by fulfilling the requirements as specified in the Horizontal Measures and the Foreign Capital Investment Law
4) As specified in the Horizontal Measures(b) Joint venture:
Local partner(s) in joint venture shall be member(s) of the Indonesian Contractors Association and having qualification A
4) As specified in the Horizontal MeasuresS/DCS/W/IDN
Page 17Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Renting Services related to
equipment for constructionor demolition of building orcivil engineering works,
with operator
(CPC 518)1) Unbound*
2) None3) (a) Joint operation:
To form a joint operation by establishing 
a representative office1) Unbound*
2) Unbound3) (a) Joint operation:
1. Registration fee requirement
2. Licence for representative office 
shall be valid for 3 years and can be extended
3. Registered foreign company shall 
form a joint operation with local 
partner(s) which is (are) 
member(s) of the Indonesian Contractors Association having qualification A
(b) Joint venture:
To establish a joint venture company by fulfilling the requirements as specified in 
the Horizontal Measures and the Foreign 
Capital Investment Law
4) As specified in the Horizontal Measures(b) Joint venture:
Local partner(s) in joint venture shall be member(s) of the Indonesian Contractors 
Association and having qualification A
4) As specified in the Horizontal Measures
TRANSPORT SERVICES
Maritime Transport
Services*)
(a) International Passenger
transport (CPC 7211)1) None
2) None
3) Foreign Shipping Companies may establish
Owner's Representative**)
4) (a) Joint venture:  As specified in the 
Horizontal Measures
(b) Owner's Representative:  Unbound except
for manager1) Foreign Shipping Company is obliged to
appoint Indonesian Shipping Company as itsGeneral Agent***)
2) None
3) As specified in the Horizontal Measures
4) As specified in the Horizontal MeasuresAccess to and use of port
facilities in the port whichis opened for international
shippingS/DCS/W/IDN
Page 18Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(b) International Freight
transport (CPC 7212)1) None
2) None
3) Foreign Shipping Companies may establish
Owner's Representative**)
4) (a) Joint venture:  As specified in the 
Horizontal Measures
(b) Owner's Representative:  Unbound except
for manager1) (a) Foreign Shipping Company is obliged to 
appoint Indonesian shipping company as itsgeneral agent***)
(b) Government's cargo****)
2) None
3) As specified in the Horizontal Measures
4) As specified in the Horizontal Measures
Notes (Maritime) :
*)
**)
***)
****):
:
:
:Passenger and Freight transportation excluding cabotage and auxiliary services
Owner`s Representative appointed by foreign shipping company has the following tasks:
a) to monitor his vessels during operational activities in Indonesian ports;
b) to supervise activities done by its General Agent in servicing of its vessels, calling in Indonesia;
c) to make direct contact with cargo owners.
The tasks of General Agent in Indonesia inter alia are as follows:
a) to make arrangement in order to get all necessary port services as required by the foreign vessel concerned during their stay  in 
Indonesia ports;
b) to appoint stevedoring company for cargo loading and unloading on behalf of its principal;
c) to arrange cargo booking and canvassing;d) to collect freight on behalf of the principal;e) to issue Bill of Lading on behalf of the principal;f) to settle the disbursement and claim (if any);g) to give information as required by its principal.
Government`s Cargo is cargo originated from the other countries (import cargoes) purchased by the Government Agencies or based
on loan/credit agreement with the other countries.S/DCS/W/IDN
Page 19Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
TOURISM SERVICES
Hotels21),2) None
3) In eastern part of Indonesia, Kalimantan, 
Bengkulu, Jambi and Sulawesi, 100 % of 
capital share can be owned by foreign investor
4) a) Unbound except for:
1. Top Management Level in Hotel 
business comprised of:
i) General Managerii) Food and Beverage 
Manager
iii) Resident Manageriv) Comptroller
v) Marketing Director
2. Highly Skilled Professionals 
comprised of:i) Executive Chefii) Sous Chefiii) Speciality Cook1),2) None
3) a) Higher paid-up capital is required of 
foreign service suppliers than of domestic 
service suppliers.  This measure will be 
eliminated in the year 2020
b) Only 3, 4 or 5 starred hotels are permitted.
4) As specified in the Horizontal Measures
B. Travel Agent and Tour
Operator (TA & TO)
(CPC 74710)1) None
2) None
3) Maximum service providers 30 TA & TO
4) Unbound except for technical advisor1) None
2) None3) Tour operator must be Travel Agent located in
Jakarta and Bali
4) As specified in the Horizontal Measures
Tourist Resorts Include3
-H o t e l- Marinas
- Golf Courses and other
Sport facilities1),2) None
3) In eastern part of Indonesia, Kalimantan,
Bengkulu, Jambi and Sulawesi, 100% ofcapital share can be owned by foreign investor
4) Unbound except for Resort Manager1),2) None
3) (a) Higher paid-up capital is required of 
foreign service suppliers than of domestic service suppliers.  This measure will be 
eliminated in the year 2020.
(b) Only 3, 4 or 5 starred hotels are permitted
4) As specified in the Horizontal Measures 
                                                          
2Starred Hotel is a service business which provides accommodation and food and beverages facilities and other services, except c asino and other activities prohibited by 
law; against public moral, religion, security and public order.S/DCS/W/IDN
Page 20Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
FINANCIAL SERVICES:
General conditions on Non Banking Financial Services Subsector:
1. All Market Access and National Treatment limitations specified in the Non Banking Financial Services Subsector will be elimin ated by the year 2020 subject to similar
commitment by other Members.
2. The share ownership of foreign services supplier is bound at the prevailing laws and regulations.  The conditions of ownershi p and the percentage share of ownership
as stipulated in the respective shareholder agreement establishing the existing individual joint venture in non banking financi al services shall be respected.  No transfer
of ownership shall take place without the consent of all parties in the joint venture concerned.
3. Limitation on national treatment in terms of taxation which is specified in the Horizontal Measures is not applied on the Non  Banking Financial Services Subsector.
4. In addition to the Horizontal Measures, temporary entry will be  granted to technical expert(s )/adviser(s) for no longer than 3 (three) months per person for any given
year.
5. Share of non-bank financial companies listed in the stock exchange may be 100% owned by foreign investors.
6. In relation to the presence of natural persons, only directors, managers, and experts/advisors can be assumed by expatriates with maximum stay of 3 years and can be
extended.
7. All joint venture companies shall provide training for their employee.
8. Limitation on national treatment in terms of difference in pa id up capital requirement will be eliminated in the year 1998.
                                                                                                                                                                                                                                                                                       
3Tourist Resort is an area, built to accommodate the facilities needed for the tourist such as hotels, marinas, golf courses, cu ltural open stage and other 
facilities, except casino and other activities prohibited by law;  against public moral, religion, security and public order.S/DCS/W/IDN
Page 21Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Non-Life Insurance Services
(CPC 8129)1) Unbound
2) Unbound except if:
(a) There is no insurance company in 
Indonesia, either individually or group, 
which could handle the insurance risks of 
the object in question.1) Unbound
2) Unbound
(b) There is no insurance company in 
Indonesia which want to carry out an insurance coverage of the object in question.
(c) The owners of insurance objects in 
question are not Indonesian citizens or Indonesian legal entities.
3) As specified in the Horizontal Measures and
General Conditions.
4) Unbound except for director and technical
advisor/expert.3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.
Reinsurance Services 1) Reinsurance service supplier from other
member must be rated minimum as BBB byStandard and Poor or equivalent.
2) Reinsurance service supplier from other
member must be rated minimum as BBB by
Standard and Poor or equivalent.
3) As specified in the Horizontal Measures and
General Conditions.
4) Unbound except for director and technical
advisor/expert.1) None
2) Unbound
3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.S/DCS/W/IDN
Page 22Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Life Insurance Services
(CPC 8121)1) Unbound
2) Unbound except if:
(a) There is no insurance company in 
Indonesia, either individually or group, 
which could handle the insurance risks of 
the object in question.
(b) There is no insurance company in 
Indonesia which wants to carry out an insurance coverage of the object in
question.
(c) The owners of insurance objects in 
question are not Indonesian citizens or Indonesian legal entities.
3) As specified in the Horizontal Measures and
General Conditions.
4) Unbound except for director and technical
advisor/expert.1) Unbound
2) Unbound
3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.
Insurance Brokerage Services
(CPC 8140)1) Unbound
2) None3) As specified in the Horizontal Measures and
General Conditions.
4) Unbound except for director and technical
advisor/expert.1) None
2) None3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.
Reinsurance Brokerage Services
(CPC 8140)1) Unbound
2) None3) As specified in the Horizontal Measures and
General Conditions.
4) Unbound except for director and technical
advisor/expert.1) None
2) None3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.
Financial Lease Services
(CPC 81120)1) None
2) None
3) As specified in the Horizontal Measures and
General Conditions.
4) Unbound except as indicated in the Horizontal
Measures.1) None
2) None
3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.S/DCS/W/IDN
Page 23Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Factoring Services
(CPC 8113)1) Unbound except for international factoring
transaction.
2) None3) As specified in the Horizontal Measures and
General Conditions.
4) Unbound except as indicated in the Horizontal
Measures.1) Unbound
2) None
3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.
Credit Card Business (Issuer
and Agent of Credit Card)
(CPC 8113)1) None
2) None
3) As specified in the Horizontal Measures and
General Conditions.
4) Unbound except as indicated in the Horizontal
Measures.1) None
2) None
3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.
Consumers Finance Services
(CPC 8113)1) None
2) None3) As specified in the Horizontal Measures and
General Conditions.
4) Unbound except as indicated in the Horizontal
Measures.1) None
2) None3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.
Securities Business
- Trading for own 
account or for account of customers, on an 
exchange or over-the-
counter market
- Listed shares
- Bonds1) Unbound
2) None3) Through establishment of a securities
broker/dealer.
4) Unbound except as indicated in the Horizontal
Measures.1) Unbound
2) None3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.S/DCS/W/IDN
Page 24Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Participation in issues of
securities, includingunderwriting and placement asagent (whether publicly or
privately), and provision of
services related to such issues1) Unbound
2) None3) Through establishment of a securities
underwriter company.
4) Unbound except as indicated in the Horizontal
Measures.1) Unbound
2) None3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.
Portfolio management, all forms
of collective investmentmanagement1) Unbound
2) None3) Through establishment of an investment
management company.
4) Unbound except for directors.1) Unbound
2) None3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.
Asset Management limited only
to investment fund management1) Unbound
2) None
3) Through establishment of an investment
management company.
4) Unbound except for directors.1) Unbound
2) None
3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.
Investment Advisory Services
limited only to investment
advisory in capital market1) Unbound
2) None
3) Through establishment of an investment
management company.
4) Unbound except for directors.1) Unbound
2) None
3) As specified in the General Conditions.
4) As specified in the Horizontal Measures.S/DCS/W/IDN
Page 25Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Banking Subsector: General Conditions on Banking Subsector.
1. All Market Access and National Treatment limitation specified in the banking subsector will be eliminated by the year 2020 su bject to similar commitment by other
members.
2. With the exception of the existing branches of foreign banks, foreign services provider shall be in the form of joint venture  bank locally incorporated in Indonesia with
the following requirements:
(a) Unbound for new license
(b) Only bank institutions are permitted to establish joint venture banks.
3. The share ownership of foreign services supplier in the joint venture bank is bound at prevailing laws and regulation.  The c onditions of ownership and the percentage
share of ownership as stipulated in the respective shareholder agreement establishing the existing individual joint venture ban k shall be respected as the basis of
ownership of the foreign service provider(s) and their Indonesian  partner(s). No transfer of ownership shall take place without  the consent of all parties in the joint
venture bank concerned.
4. Acquisition of local existing banks is allowed through the purchase of up to 49% of the shares of locally incorporated bank l isted in the stock exchange.
5. Limitation on national treatment in terms of difference in pa id up capital requirement will be eliminated in the year 1998.
6. Foreign bank and joint ventures bank may open their offices in  the cities of Jakarta, Surabaya, Semarang, Bandung, Medan, Uju n Pandang, Denpasar and Batam Island.
7. With respect to the presence of natural persons no economic needs test will apply. A non Indonesian employed as manager or as  technical expert shall have at least two
Indonesian under studies during his/her term.
8. In addition to the Horizontal Measures, temporary entry will be  granted to technical expert(s)/advisor(s) of branch office of  the foreign bank and joint venture bank for
no longer than 3 (three) months per person for any given year.
9. Limitation on national treatment in terms of taxation which is specified in Horizontal Measures is not applied on the Banking  Subsector.S/DCS/W/IDN
Page 26Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
Commercial Banking Business
(i) Acceptance of deposits and
other repayable funds fromthe public1) None
2) None3) (a) Bound only 1 (one) sub-branch and 1 
(one) auxiliary offices for foreign bank's 
branch office.
(b) Bound only 1 (one) branch and 1 (one) 
sub-branch for joint venture bank.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.1) None
2) None3) (a) For foreign bank branch, only executive 
position can be assumed by expatriates 
with limitation that at least one of them shall be Indonesian national.
(b) For the joint venture bank, only for the 
director can be assumed by the expatriates 
in proportion to the ownership sharing.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.
(ii) Lending of all types,
including consumer credit,mortgage, credit, factoring,and financing ofcommercial transaction1) None
2) None3) (a) Bound only 1 (one) sub-branch and 1 
(one) auxiliary offices for foreign bank's branch office.
(b) Bound only 1 (one) branch and 1 (one) 
sub-branch for joint venture bank.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.1) None
2) None3) (a) For foreign bank branch, only executive 
position can be assumed by expatriates with limitation that at least one of them shall be Indonesian national.
(b) For the joint venture bank, only for the 
director can be assumed by the expatriates in proportion to the ownership sharing.
4) Unbound except as indicated in the Horizontal
Measures and General  Conditions on BankingSubsector.S/DCS/W/IDN
Page 27Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(iii) All payment and money
transmission servicesincluding credit, charge anddebit cards, travellers
cheques and bankers drafts1) None
2) None3) (a) Bound only 1 (one) sub-branch and 1 
(one) auxiliary offices for foreign bank's 
branch office.
(b) Bound only 1 (one) branch and 1 (one) 
sub-branch for joint venture bank.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.1) None
2) None3) (a) For foreign bank branch, only executive 
position can be assumed by expatriates 
with limitation that at least one of them 
shall be Indonesian national.
(b) For the joint venture bank, only for the 
director can be assumed by the expatriates in proportion to the ownership sharing.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.
(iv) Guarantees and
Commitments1) None
2) None3) (a) Bound only 1 (one) sub-branch and 1
(one) auxiliary offices for foreign bank's
branch office.(b) Bound only 1 (one) branch and 1 (one)sub-branch for joint venture bank.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.1) None
2) None3) (a) For foreign bank branch, only executive
position can be assumed by expatriates with
limitation that at least one of them shall beIndonesian national.(b) For the joint venture bank, only for thedirector can be assumed by the expatriates inproportion to the ownership sharing.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.S/DCS/W/IDN
Page 28Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
(v) Trading for own account or
for account of customers,whether on an exchange, inan over-the-counter market
or otherwise, the following:1) None
2) None3) (a) Bound only 1 (one) sub-branch and 1 
(one) auxiliary offices for foreign bank's 
branch office.1) None
2) None3) (a) For foreign bank branch, only executive 
position can be assumed by expatriates 
with limitation that at least one of them 
shall be Indonesian national.
-M o n e y  m a r k e t  
instruments (including cheques, bills, certificates of deposits)(b) Bound only 1 (one) branch and 1 (one) 
sub-branch for joint venture bank.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on Banking
Subsector.(b) For the joint venture bank, only for the 
director can be assumed by the expatriates in proportion to the ownership sharing.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on Banking
Subsector.
- Foreign Exchange 1) None
2) None3) (a) Bound only 1 (one) sub-branch and 1 
(one) auxiliary offices for foreign bank's 
branch office.
(b) Bound only 1 (one) branch and 1 (one) 
sub-branch for joint venture bank.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.1) None
2) None3) (a) For foreign bank branch, only executive 
position can be assumed by expatriates 
with limitation that at least one of them shall be Indonesian national.
(b) For the joint venture bank, only for the 
director can be assumed by the expatriates in proportion to the ownership sharing.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.
- Exchange rate and 
interest rate 
instruments, including 
products such as swaps, forward rate agreements1) None
2) None
3) (a) Bound only 1 (one) sub-branch and 1 
(one) auxiliary offices for foreign bank's branch office.
(b) Bound only 1 (one) branch and 1 (one) 
sub-branch for joint venture bank.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.1) None
2) None
3) (a) For foreign bank branch, only executive 
position can be assumed by expatriates with limitation that at least one of them shall be Indonesian national.
(b) For the joint venture bank, only for the 
director can be assumed by the expatriates 
in proportion to the ownership sharing.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.S/DCS/W/IDN
Page 29Modes of supply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence of natural persons
Sector or Sub-sector Limitations on Market Access Limitat ions on  National Treatment Additional Commitments
- Transferable securities 
issued in the money market1) None
2) None
3) (a) Bound only 1 (one) sub-branch and 1 
(one) auxiliary offices for foreign bank's 
branch office.
(b) Bound only 1 (one) branch and 1 (one) 
sub-branch for joint venture bank.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.1) None
2) None3) (a) For foreign bank branch, only executive 
position can be assumed by expatriates 
with limitation that at least one of them 
shall be Indonesian national.
(b) For the joint venture bank, only for the 
director can be assumed by the expatriates in proportion to the ownership sharing.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.
(vi) Cash management,
custodial and depositoryservices1) None
2) None3) (a) Bound only 1 (one) sub-branch and 1 
(one) auxiliary offices for foreign bank's 
branch office.
(b) Bound only 1 (one) branch and 1 (one) 
sub-branch for joint venture bank.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.1) None
2) None3) (a) For foreign bank branch, only executive 
position can be assumed by expatriates 
with limitation that at least one of them shall be Indonesian national.
(b) For the joint venture bank, only for the 
director can be assumed by the expatriates in proportion to the ownership sharing.
4) Unbound except as indicated in the Horizontal
Measures and General Conditions on BankingSubsector.
_________________S/DCS/W/IDN
Page 30
ATTACHMENT TO THE REPUBLIC OF INDONESIA
SCHEDULE ON BASIC TELECOMMUNICATIONS
REFERENCE PAPER
Scope
The following are definitions and principles on the regulatory framework for the basic telecommunications
services.
Definitions
Users mean service consumers and service suppliers.
Essential facilities mean facilities of a public te lecommunications transport network or service that
(a) are exclusively or predominantly provided by  a single or limited number of suppliers;  and
(b) cannot feasibly be economically or technically substituted in order to provide a service.
A major supplier is a supplier which has the ability to materially affect the terms of participation (having
regard to price and supply) in the relevant market for basic telecommunications services as a result of:
(a) control over essential facilities;  or(b) use of its position in the market.
1. Competitive safeguards
1.1 Prevention of anti-competitive practices in telecommunications
Appropriate measures shall be maintained for the purpose of preventing suppliers who, alone or
together, are a major supplier from engaging in or continuing anti-competitive practices.
1.2 Safeguards
The anti-competitive practices referred to above shall include in particular:
(a) engaging in anti-competitive cross-subsidization;
(b) using information obtained from compe titors with anti-competitive results;  and
(c) not making available to other services suppliers on a timely basis technical  information
about essential facilities and commercially relevant information which are necessary for
them to provide services.
2. Interconnection
2.1 This section applies to linking with supplie rs providing public telecommunications transport
networks or services in order to allow the users of one supplier to communicate with users of another
supplier and  to access services provided by another supplier, where specific commitments are undertaken.S/DCS/W/IDN
Page 31
2.2 Interconnection to be ensured
Interconnection with a major supplier will be ensured at any technically feasible point in the
network.  Such interconnection is provided.
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) and rates and of a quality no less favourable than that provided for its own
like services or for like services of non-affiliated service suppliers or for its subsidiaries or
other affiliates;
(b) in a timely fashion, on terms, conditions (inc luding technical standa rds and specifications)
and cost-oriented rates that are transparent, reasonable, having regard to economicfeasibility, and sufficiently unbundled so th at the supplier need not pay for network
components or facilities that it does not require for the service to be provided;  and
(c) upon request, at points in addition to the ne twork termination points offered to the majority
of users, subject to charges that reflect th e cost of construction of necessary additional
facilities.
2.3 Public availability of the proced ures for interconnection negotiations
The procedures applicable for interconnection to a major supplier will be made publicly available.
2.4 Transparency of interconnection arrangements
It is ensured that a major supplier will make publicly available either its interconnection agreements
or a reference interconnection offer.
2.5 Interconnection:  dispute settlement
A service supplier requesting interconnection with a major supplier will have recourse, either:
(a) at any time or(b) after a reasonable period of time which has been made publicly known
to an independent domestic body, which may be a regulatory authority as referred to in paragraph 5 below, to
resolve disputes regarding appropriate terms, conditi ons and rates for interconnection within a reasonable
period of time, to the extent that thes e have not been established previously.
3. Universal service
Any Member has the right to define the kind of uni versal service obligation it wishes to maintain.
Such obligations will not be regarded as anti-competitive per se , provided they are administered in a
transparent, non-discriminatory and competitively neutral manner and are not more burdensome than
necessary for the kind of universal service defined by the Member.S/DCS/W/IDN
Page 32
4. Public availability of licensing criteria
Where a licence is required, the following will be made publicly available:
(a) all the licensing criteria and the period of time normally required to reach a decision
concerning an application for a licence  and
(b) the terms and conditions of  individual licences.
The reasons for the denial of a licence will be made known to the applicant upon request.
5. Regulatory Authority
The regulatory Authority is not accountable to, an y supplier of basic telecommunications services.
The decisions of and the procedures used by regulators shall be impartial with respect to all market
participants.
6. Allocation and use of scarce resources
Any procedures for the allocation and use of sc arce resources, including frequencies, numbers and
rights of way, will be carried out in an objectiv e, timely and transparent manner. The current state of
allocated frequency bands will be made publicly available, but detailed identification of frequencies
allocated for specific government uses is not required.
_________________S/DCS/W/IDN
Page 33INDONESIA – LIST OF ARTICLE II (MFN) EXEMPTIONS
Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating  the need for
the exemption
Movement of
Personnel (semi-
skilled workers)Low level occupations are
reserved for Indonesian citizens.
Based on Government Policy,limited exemptions may begranted to citizens of certaincountries.Nationals of Malaysia,
Singapore, Brunei Darussalam,
Papua New Guinea andAustralia have been grantedlimited access to low leveloccupationsIndefinite Development of the region is being
undertaken and for the confirmation
of this programme, it is decided togrant limited access to low leveloccupations to citizens at a limitednumber of countries
3. CONSTRUCTION
SERVICES
ConstructionServices(government
funded projects)Measures relating to preferential
shortlisting in internationalcompetitive biddingNationals of Brunei
Darussalam, Malaysia, ThePhilippines, Singapore and
Thailand have been granted
special treatmentThese measures shall be
maintained as long as thetreaties of Asean remain in
forceThe implementation of a
preferential shortlisting scheme forAsean contractors enhances the
advancement of civil works,
industrial construction and theeconomic development of theAsean regionS/DCS/W/IDN
Page 34
Sector or SubsectorDescription of measure
indicating its inconsistency
with Article IICountries to which the
measure appliesIntended durationConditions creating  the need for
the exemption
7. FINANCIAL
SERVICES
Banking Services Measures relating to a
joint-venture bank of national andforeign origin under which entryof a foreign bank in Indonesia is
allowed on a reciprocity basis
(pursuant to Articles 14(3) of theMinistry of Finance Decrees No.220/KMK.017/1993 dated26 February 1993).
With respect to joint-venture
banks, licenses can only begranted to foreign banks ofcountries which adopt reciprocalpolicies regarding Indonesian
banks.All countries which adopt
reciprocal policies regardingIndonesian banks.Suspended until the end of
the period of 60 daysbeginning on 1 November1997 as stipulated in the
Second Decision on
Financial Services adoptedby the Council for Trade inServices on 21 July 1995.To guarantee equal treatment to
Indonesian nationals wishing toestablish and operate banks abroad.
__________