WT/REG469/1  
20 March  2024 
(24-2420) Page: 1/41 
Committee on Regional Trade Agreements    
 
 
FACTUAL PRESENTATION  
INDONESIA -KOREA COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT  
(GOODS AND SERVICES ) 
Report by the Secretariat  
This report, prepared for the consideration of the Indonesia -Korea  Comprehensive 
Economic Partnership Agreement , has been drawn up by the WTO Secretariat on its 
own responsibility and in full consultation with the Parties. The factual presentation 
reproduces as closely as possible the terminology used in the Agreement an d in the 
comments provided and does not imply official endorsement or acceptance by the 
Secretariat of such terminology. The report has been drawn up in accordance with the 
rules and procedures contained in the Decision for a Transparency Mechanism for 
Regional Trade Agreements (WT/L/671) and thus does not imply any value judgement 
by the Secretariat regarding the contents of the Agreement.  
Any technical questions arising from this report may be addressed to Mr. Alberto 
Osnago  (alberto.osnago @wto.org ). Any statistical questions arising from this report 
may be addressed to Ms. Rowena Cabos ( rowena.cabos@wto.org ). 
 
  WT/REG469/1  
 
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  Table of Contents  
 
1   TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1   Merchandise trade  ................................ ................................ ................................ ....... 4 
1.2   Trade in services and investment  ................................ ................................ ..................  8 
2   CHARACTERISTIC ELEMENTS OF THE AGREEMENT  ................................ ....................  11 
2.1   Background information  ................................ ................................ .............................. 11 
3   PROVISIONS ON TRADE IN GOODS  ................................ ................................ ...........  12 
3.1   Import duties and charges, and quantitative restrictions ................................ .................. 12 
3.1.1    General provisions  ................................ ................................ ................................ ...12 
3.1.2    Liberalization of trade and tariff lines  ................................ ................................ ......... 12 
3.1.3    Liberalization schedule  ................................ ................................ ............................. 12 
3.1.3.1    Indonesia  ................................ ................................ ................................ ............. 13 
3.1.3.2    Korea  ................................ ................................ ................................ .................. 15 
3.1.4    Tariff rate q uotas  ................................ ................................ ................................ .....17 
3.2   Rules of origin  ................................ ................................ ................................ ............ 17 
3.3   Export duties and charges, and quantitative restrictions  ................................ .................. 18 
3.4   Regulatory provisions on trade in goods  ................................ ................................ ........ 18 
3.4.1    Standards  ................................ ................................ ................................ ............... 18 
3.4.1.1    Sanitary and phytosanitary measures  ................................ ................................ ......18 
3.4.1.2    Technical  barriers to trade  ................................ ................................ ..................... 19 
3.4.2    Safeguard mechanisms  ................................ ................................ ............................ 19 
3.4.2.1    Global safeguards  ................................ ................................ ................................ .19 
3.4.2.2    Bilateral safeguards  ................................ ................................ ............................... 19 
3.4.3    Anti-dumping and countervailing measures  ................................ ................................ .19 
3.4.4    Subsidies and State -aid ................................ ................................ ............................ 20 
3.4.5    Customs -related procedures and trade facilitation  ................................ ........................ 20 
3.4.6    Sector -specific provisions on goods  ................................ ................................ ............ 20 
4   PROVISIONS ON TRADE IN SERVICES  ................................ ................................ ....... 20 
4.1   Scope and definitions  ................................ ................................ ................................ ..20 
4.2   Denial of benefits  ................................ ................................ ................................ .......21 
4.3   General provisions on trade in services  ................................ ................................ ......... 21 
4.3.1    Market access  ................................ ................................ ................................ ......... 21 
4.3.2    National treatment and MFN  ................................ ................................ ...................... 21 
4.3.3    Commercial presence  ................................ ................................ ............................... 22 
4.3.4    Movement of natural persons  ................................ ................................ .................... 22 
4.4   Liberalization commitments  ................................ ................................ ......................... 23 
4.4.1    Indonesia  ................................ ................................ ................................ ............... 23 
4.4.1.1    MFN and horizontal commitments  ................................ ................................ ........... 23 
4.4.1.2    Sector specific commitments  ................................ ................................ .................. 23 
4.4.2    Korea  ................................ ................................ ................................ ..................... 26 WT/REG469/1  
 
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  4.4.2.1    MFN and horizontal commitments  ................................ ................................ ........... 26 
4.4.2.2    Sector specific commitments  ................................ ................................ .................. 27 
4.5   Regulatory provisions  ................................ ................................ ................................ ..30 
4.5.1    Domestic regulation  ................................ ................................ ................................ .30 
4.5.2    Recognition  ................................ ................................ ................................ ............. 30 
4.5.3    Subsidies  ................................ ................................ ................................ ................ 30 
4.5.4    Safeguards  ................................ ................................ ................................ ............. 30 
4.5.5    Other investment provisions  ................................ ................................ ...................... 30 
4.6   Sector specific provisions on trade in services  ................................ ................................ 31 
4.6.1    Financial Services  ................................ ................................ ................................ ....31 
4.6.2    Professional services  ................................ ................................ ................................ 31 
5   GENERAL PROVISIONS OF THE AGREEMENT  ................................ .............................  31 
5.1   Transparency  ................................ ................................ ................................ ............. 31 
5.2   Current payments and capital movements  ................................ ................................ .....31 
5.3   Exceptions  ................................ ................................ ................................ ................. 32 
5.4   Accession and withdrawal  ................................ ................................ ............................ 32 
5.5   Institutional framework  ................................ ................................ ............................... 32 
5.6   Dispute settlement  ................................ ................................ ................................ .....32 
5.6.1    Investor -State Dispute Settlement (Investment)  ................................ ......................... 33 
5.7   Relationship with other agreements concluded by the Parties  ................................ ........... 33 
5.8   Government procurement  ................................ ................................ ............................ 34 
5.9   Intellectual property rights  ................................ ................................ .......................... 34 
5.10   Competition  ................................ ................................ ................................ ............. 35 
5.11   Environment  ................................ ................................ ................................ ............ 35 
5.12   Labour  ................................ ................................ ................................ .................... 35 
5.13   Electronic commerce  ................................ ................................ ................................ .35 
5.14   Small and medium -sized enterpr ises ................................ ................................ ........... 35 
5.15   Gender  ................................ ................................ ................................ .................... 35 
5.16   Economic cooperation  ................................ ................................ ............................... 35 
ANNEX 1  ................................ ................................ ................................ ........................  36 
 
  WT/REG469/1  
 
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Key Facts  
 
Parties to the Agreement:   Indonesia and the Republic of 
Korea  
 
Date of Signature:     18 December 2020  
 
Date of Entry into Force:   01 January 2023  
 
Date of Notification:    15 June 2023  
 
Full implementation:    2042 
 
 
1  TRADE ENVIRONMENT  
1.1.  The Comprehensive Economic Partnership Agreement between Indonesia and the Republic of 
Korea (hereinafter the Agreement ) is the 14th RTA in force notified to the WTO by Indonesia and 
the 22nd by Korea.  
1.2  Merchandise trade  
1.2.  The Republic of Korea (hereinafter Korea)  is the large r economy among the Parties in terms 
of both imports and exports of merchandise ( Chart 1.1). On average, in 2020 -2022, Indonesia's 
imports from and exports to the world were respectively USD 192 billion  and USD 229 billion; in 
the same period, Korea's global imports and exports wer e on average USD 605 billion and 
USD 613 billion. Between 2012 and 2020, imports and exports of goods remained relatively stable 
for both Parties with an increase of the trend starting in 2021. Indonesia's trade balance fluctuated 
around zero until 2019 an d showed an upward positive trend starting from 2020. Korea's trade 
surplus, consistent until 2021, turned into a deficit in 2022  as exports fell . WT/REG469/1  
 
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  Chart 1.1 Merchandise trade with the world (201 2-2022) 
 
Sourc e: UNSD Comtrade database . 
 
1.3.  Bilateral imports and exports between the Parties followed a negative trend between 2012 
and 2020 and increased again starting from 2021 reaching values similar to those at the beginning 
of the period (left panels of Chart 1.2). The right panel of Chart 1.2 shows that the relative 
importance of Korea in Indonesi a's imports and exports registered a negative trend with 8 % of 
Indonesia's global exports going to Korea in 2012 and around 4 % in 2022 , and with 6% of 
Indonesia's global imports coming from Korea in 2012 and 5 % in 2022.1 A similar pattern can be 
detected in the relevance of Indonesia in Korea's trade: in 2012, Indonesia represented 3 % and 
2.5% of Korea's global imports and exports respectively while, in 2022, the corresponding shares 
were 2 and 1.5 %.2 
 
1 In 2022 and excluding intra -EU trade, Korea was the 5th largest source of Indonesian imports and the 
9th destination of Indonesian exports.  
2 In 2022 and excluding intra -EU trade, Indonesia was the 10th largest source of Korean imports and the 
14h destination of Korean exports.  
 $- $250 $500 $750
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022BillionsGlobal trade
Indonesia imports Indonesia exports Korea imports Korea exports
 $-50 $- $50 $100
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022BillionsTrade balance
Indonesia KoreaWT/REG469/1  
 
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  Chart 1.2 Bilateral m erchandise trade (2012 -2022)  
 
Source:  UNSD Comtrade database . 
 
1.4.  In 2021, Indonesia's main merchandise imports and exports were of manufactured goods, 
accounting for around 65% of its imports and 45% of exports.3 In the same year , Korea  mainly 
imported and exported manufactured goods with shares of 61 % and 88 %. Chart 1.3 and Chart 1.4 
provide more details on the composition of global  and bilateral merchandise trade of the Parties by 
HS Section.  
1.5.  The main global imports of Indonesia in the period 20 20-2022 were machinery, mineral 
products and chemicals with shares ranging between 2 6% and 11%. The largest global imports of 
Korea in the same period were machinery, minerals and chemicals (shares between 30% and 9%). 
The main global exports of Indonesia in the period 20 20-2022 were mineral products, base metals 
and animal products with s hares ranging between 2 4% and 13% (Chart 1.3). Korea's  imports from 
Indonesia were also dominated by these products with 43% of its imports being  mineral products 
while base metals and chemicals represented around 9 % each of bilateral imports ( Chart 1.4). As 
described in Section 3.1.3.1   , Indonesia excluded some tariff lines in these Sections from 
liberalization under the Agreement.  
1.6.   The largest global exports of Korea in the same period were machinery, vehicles and 
chemicals with shares between 43% and 10% ( Chart 1.3) of which  machinery  was the largest 
product group  imported by Indonesia from Korea (25%); it was  followed by base metals and 
plastics (18% and 13% ) (Chart 1.4). As described in Section 3.1.3.2   , Korea will eliminate all 
duties in these Sections within ten years of implementation of the Agreement.  
 
3 WTO Trade Profiles 2023.  
 $- $8 $16
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022BillionsIndonesia
Imports from Korea Exports to Korea
 $- $8 $16
2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022BillionsKorea
Imports from Indonesia Exports to Indonesia0%4%8%
0%4%8%
2012 2022Percent of trade with the 
other Party
% of Indonesia imports from Korea
% of Indonesia exports to Korea
% of Korea imports from Indonesia
% of Korea exports to IndonesiaWT/REG469/1  
 
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  Chart 1.3 Composition of global merchandise imports and exports by HS Section 
(average 20 20-2022) 
 
Source:  UNSD Comtrade database . 
Chart 1.4 Composition of bilateral  merchandise imports by HS Section (average 20 20-
2022) 
 
Source:  UNSD Comtrade database . 
I Live Animals; Animal Products
II Vegetable Products
III Animal or Vegetable Fat and Oils
IV Prepared Foodstuffs, Beverages
V Mineral Products
VI Products of Chemical or Allied Industries
VII Plastics and Articles thereof, rubber
VIII Raw Hides and Skins, Leather
IX Wood and Articles of wood
X Pulp of Wood
XI Textiles and Textile Articles
XII Footwear, Headgear, Umbrellas
XIII Articles of Stone, Plaster, Cement
XIV Natural and Cultured Pearls
XV Base Metals & Articles thereof
XVI Machinery & Mechanical Appl.
XVII Vehicles, Aircraft, Vessels
XVIII Optical, Photographic Equipment
XIX Arms and Ammunition
XX  Misc. Manufactured Articles
XXI Works of Art0.0% 10.0% 20.0% 30.0% 40.0% 50.0%Global exports
Korea0.0% 10.0% 20.0% 30.0% 40.0% 50.0%Global imports
Indonesia
I Live Animals; Animal Products
II Vegetable Products
III Animal or Vegetable Fat and Oils
IV Prepared Foodstuffs, Beverages
V Mineral Products
VI Products of Chemical or Allied Industries
VII Plastics and Articles thereof, rubber
VIII Raw Hides and Skins, Leather
IX Wood and Articles of wood
X Pulp of Wood
XI Textiles and Textile Articles
XII Footwear, Headgear, Umbrellas
XIII Articles of Stone, Plaster, Cement
XIV Natural and Cultured Pearls
XV Base Metals & Articles thereof
XVI Machinery & Mechanical Appl.
XVII Vehicles, Aircraft, Vessels
XVIII Optical, Photographic Equipment
XIX Arms and Ammunition
XX  Misc. Manufactured Articles
XXI Works of Art0% 10% 20% 30% 40% 50%Bilateral imports
Indonesia KoreaWT/REG469/1  
 
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  1.3  Trade in services and investment  
1.7.  Korea is the large r of the two  econom ies also in terms of imports and exports of services 
(Chart 1.5). On average, in 2020 -2022, Indonesia's services imports from and exports to the world 
were respectively USD 32 billion and USD 17 billion . In the same period, Korea's global imports 
and expo rts of services were on average USD 120 billion and USD 114 billion.  Bilateral services 
trade between the Parties is relatively small . Indonesia imported USD 800 million from Korea and 
exported USD 600 million respectively representing 2.5% and 3.3 % of its global services imports 
and exports. Korea imported USD 500 million from Indonesia and exported USD 700 million 
respectively representing 0.4 % and 0.6 % of its global services imports and exports.  Both Parties 
registered a global trade deficit while, bilat erally, Korea had a surplus.  
Chart 1.5 Services trade with the world ( average 2020-2022)  
 
Note:  Bilateral trade in services of Korea is averaged over 2020 and 2021 since data for 2022 is not 
available . 
Source:  WTO Statistics database and Parties' authorities . 
 
1.8.  Chart 1.6 and Chart 1.7 show the composition of average global and bilateral services trade 
by category in 2020 -2022.4 Transport services, other business services and telecommunication 
services were the largest global services imports of Indone sia with respective shares of 31%, 28% 
and 14 %. Other business services, travel and transport services were Indonesia's largest exports 
to the world with shares of 32%, 21% and 21%. Other business services , transport and travel  
were also the largest global  services imports of Korea with shares of 30%, 24% and 15% while 
transport (34%), other business services (25%) and telecommunication services (10%) were the 
largest exports . 
 
4 Bilateral trade in services data for Korea in 2022 is not available, therefore the averages are taken 
over the period 2020 -2021.  
32.2 120.2 16.9 113.9
0.8 0.5 0.6 0.7
Imports (USD billion)
 Exports (USD billion)
Imports (USD billion)
 Exports (USD billion)Trade with the world
Bilateral tradeIndonesia Korea
Indonesia KoreaWT/REG469/1  
 
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  Chart 1.6 Global trade in commercial services by category ( average 2020 -2022)  
 
Source:  Parties' authorities . 
 
1.9.  Indonesia's largest imports from and exports to Korea were transport services (58% of 
bilateral imports and 34% of bilateral exports) and other business services (20% and 24%). 
Korea's largest imports from Indonesia were travel services (31%), other business services (24%) 
and transport services (22%) while the largest exports to Indonesia were transport services 
(35%), other business services (20%) and co nstruction services (19%).  
0% 20% 40%Imports
Manufacturing services on physical inputs owned 
by others
Maintenance and repair services n.i.e.
Transport
Travel
Construction
Insurance and pension services
Financial services
Charges for the use of intellectual property n.i.e.
Telecommunications, computer, and information 
services
Other business services
Personal, cultural, and recreational services0% 20% 40%Exports
Indonesia Korea, Rep. ofWT/REG469/1  
 
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  Chart 1.7 Bilateral trade in commercial services by category, (average 2020 -2022 for 
Indonesia and 2020 -2021 for Korea)  
 
Notes:  Bilateral trade in services of Korea is averaged ov er 2020 and 2021 since data for 2022 is not 
available . 
Source:  Parties' authorities . 
 
1.10.   Chart 1.8 shows global FDI stocks and flows of the Parties between 2012 and 2022. 
Indonesia was a net recipient of FDI throughout the period while Korea was a net global source of 
investment. Bilateral FDI data are not available.  
Chart 1.8 FDI stock s and flow s with world (2012 -2022 ) 
 
Source:  UNCTADStat.  
0% 20% 40% 60%Imports
Manufacturing services on physical inputs owned 
by others
Maintenance and repair services n.i.e.
Transport
Travel
Construction
Insurance and pension services
Financial services
Charges for the use of intellectual property n.i.e.
Telecommunications, computer, and information 
services
Other business services
Personal, cultural, and recreational services0% 20% 40% 60%Exports
Indonesia Korea, Rep. of
050100150200250300
2012 2014 2016 2018 2020 2022
Inward Stock Outward StockA.  Indonesia Global FDI StockUSD Billion
-15-10-5051015202530
2012 2014 2016 2018 2020 2022B.  Indonesia Global FDI Flow
0100200300400500600700
2012 2014 2016 2018 2020 2022ThousandsC.  Korea Global FDI Stock
020406080
2012 2014 2016 2018 2020 2022ThousandsD.  Korea Global FDI FlowUSD BillionWT/REG469/1  
 
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  2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Agreement was signed on 18 December 2020 and notified to the WTO on 15 June 2023  
under Article XXIV:7(a) of GATT 1994 and Article V:7(a) of the GATS (see documents 
WT/REG 469/N/1  - S/C/N/ 1135). It entered into force on 01 January 2023 . 
2.2.  The text of the Agreement, together with its annexes, is available on the Parties' official 
websites:  
Indonesia: https://www.kemendag.go.id/s/TeksIKCEPA   
Korea: https://www.fta.go.kr/main/situation/kfta/lov3/id/2/   
2.3.  The Agreement is composed of 13 Chapters , two Annexes and nine Chapter specific Annexes 
(including th e Parties' tariff elimination schedules ) also form part of the Agreement. Box 2.1 below 
summarizes the structure of the Agreement.  
Box 2.1 Structure of the Agreement  
Chapters  Annexes /Appendices  
Preamble   
Chapter  1 – General provisions   
Chapter  2 – National treatment and market 
access for goods  Annex 2 -A – Reduction or elimination of 
customs duties  
Chapter 3 – Rules of origin  and origin 
procedures  Annex 3 -A – Product specific rules  
Annex 3 -B-1 - Certificate of Origin  
Annex 3 -B-2 - Certificate of Origin (Additional 
Pages ) 
Chapter 4 – Customs procedures and trade 
facilitation   
Chapter 5 – Trade remedies   
Chapter 6 – Trade in  services  Annex 6 -A – Financial services  
 Annex 6 -B – Movement of natural persons  
 Annex 6 -C – Professional services  
 Annex 6 -D – Schedule of specific commitments 
of Korea  
 Annex 6 -E - Schedule of specific commitments 
of Indonesia  
Chapter 7 – Investment  Annex  7-A – Customary International law  
Annex 7 -B – Expropriation  
Annex 7 -C – Temporary Safeguard Measures  
Chapter 8 – Economic cooperation   
Chapter 9 – Transparency   
Chapter 10 – Dispute settlement  Annex 10 -A – Rules of procedures for 
arbitrators  WT/REG469/1  
 
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  Chapters  Annexes /Appendices  
 Annex 10 -B – Code of conduct for arbitrators  
Chapter 11 – Exceptions   
Chapter 12 – Institutional provisions   
Chapter 13 – Final provisions   
Annex I   
Annex II   
Source:  WTO Secretariat based on the Agreement . 
2.4.  The Agreement establishes a free trade area between the Parties (Article 1.2). Its objectives 
include, inter alia, the achievement of substantial liberalization of trade in goods and trade in 
services, the promotion of fair competition and the establishment of  a framework for cooperation 
and capacity building (Article 1.3).  
2.5.  The Parties may agree, in writing, to amend the Agreement  (Article 13.2) and i f any provision 
of the WTO Agreement that the Parties have incorporated into the Agreement is amended, the 
Parties shall, upon request, consult to consider amending the relevant provisions of the Agreement  
(Article 13.3) . 
2.6.  The Agreement is also subject to review at any time following one year after its entry into 
force upon the request of a Party, with a view to upda ting and enhancing it to further its 
objectives, through negotiations, as appropriate  (Article 13.5) . 
3  PROVISIONS ON TRADE IN GOODS  
3.1.  Chapter 2 contains provisions specific to national treatment and market access for goods.  
3.1  Import duties and charges, and qua ntitative restrictions  
3.1.1   General provisions  
3.2.  Article 2.3 provides for national treatment to the goods of the Parties in accordance with 
Article III of GATT 1994 which is incorporated into and form s an integral part of the Agreement, 
mutatis mutandis . 
3.3.  Articles 2.6 and 2.7 contain provisions on, respectively, the temporary admission of goods 
and duty -free entry of samples of no commercial value.  
3.4.  Article 2.8 prohibits the Parties from adopt ing or maint aining any non -tariff measure on the 
importation or exportation of any good, except in accordance with their WTO rights and obligations 
or the Agreement. Article 2.9 similarly does not permit restrictions or prohibitions on imports and 
incorporates Article  XI of the GATT 1994 mutatis mutandis into the Agreement. Each Party shall 
ensure the transparency of its non -tariff measures permitted by the Article and shall ensure that 
any such measures are not creating unnecessary obstacles to trade between the Parti es. Article 
2.10 provides for technical consultations on non -tariff measures.  
3.1.2   Liberalization of trade and tariff lines  
3.5.  Except as otherwise provided in this Agreement, neither Party shall increase any existing 
customs duty, or adopt any new customs duty, on  an originating good (Article 2.4).  
3.1.3   Liberalization schedule  
3.6.  The Parties liberalization schedules are contained in Annex 2 -A. The y shall consult, upon 
request, to consider accelerating the reduction or elimination of customs duties set out in their WT/REG469/1  
 
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  schedule s and a Party may unilaterally accelerate the reduction or elimination of customs duties 
set out in its schedule (Article 2.4).  
3.1.3.1   Indonesia  
3.7.  Table 3.1 shows Indonesia's tariff elimination commitments under the Agreement.5 In 202 3, 
Indonesia provided MFN duty -free access for 1,349 (11.8%) of its tariff lines corresponding to 
32.9% of its imports from Korea during 20 20-2022. With the entry into force of the Agreement in 
2023, Indonesia granted preferential duty -free access on an additional 8,459 (74.1%) tariff lines 
corresponding to 56.1% of its imports from Korea . Following ten years of implementation (by 
2032) Indonesia woul d have liberalized 90. 3% of its tariffs corresponding to 91.7% of its imports 
from Korea. By the end of implementation  in 2042 , Indonesia will maintain duties on 965 lines 
(8.5% of tariff lines and 7.3% of imports).  
Table 3.1 Indonesia : Tariff elimination commitments under the Agreement and 
corresponding average trade   
Duty phase -out period  Tariff lines in Indonesia's 
tariff schedule  Indonesia's imports from Korea  
(2020 -2022)  
Number  % Value (USD Million)  % 
MFN 2023  1,349  11.8 3,065.9  32.9 
2023 8,459  74.1 5,238.9  56.1 
2025 29 0.3 27.7 0.3 
2027 71 0.6 11.3 0.1 
2029 90 0.8 49.4 0.5 
2032 314 2.8 163.9  1.8 
2037 113 1.0 89.5 1.0 
2042 24 0.2 0.3 0.0 
Remain dutiable * 965 8.5 684.3  7.3 
Total  11,414  100.0  9,331.3  100.0  
* 112 tariff lines are in staging category EX* where customs duty shall not be applied to originating 
goods imported and used directly by approved manufacturers, approved steel service centres and 
approved supporting industries in such sectors as automotive , motorcycle and components thereof , 
electrical and electronics, construction machinery and heavy equipment, and petroleum, gas and 
electric power.  
Note:   Based on the HS 20 22 nomenclature.  
Source:  WTO estimates based on the data provided by Indonesia authorities.  
3.8.  Table 3.2 shows Indonesia's tariff liberalization by HS Section. The 965 remaining dutiable 
lines for imports from Korea are in thirteen different HS Sections. The average final tariff for those 
lines ranges between 5% (animal or vegetable fats and oils  and mineral products ) and 64.7% 
(prepared foodstuffs).   
Table 3.2 Indonesia : Tariff elimination under the Agreement, by HS Section   
HS 
Section  MFN 202 3 Lines  under the Agreement  
Average 
Dutiable Tariff  Average 
Tariff (%)  
Number  of 
lines  
Duty free 
lines  Duty Free  
Remain 
Dutiable  2023  
2025  
2027  
2029  
2032  
2037  
2042  
I 5.3 624 34 456   2 29 20 19 64 5.4 
II 5.4 513 52 339 1  13 33 11 5 59 9.2 
III 4.3 187 25 152       10 5.0 
IV 23.2 502 12 358  2 1 2   127 64.7 
 
5 Of the 11,414 lines in Indonesia’s MFN tariff schedule, 11,384 (99.7%) had ad valorem  rates while 30 
lines (0.3%) were specific.  WT/REG469/1  
 
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  HS 
Section  MFN 202 3 Lines  under the Agreement  
Average 
Dutiable Tariff  Average 
Tariff (%)  
Number  of 
lines  
Duty free 
lines  Duty Free  
Remain 
Dutiable  2023  
2025  
2027  
2029  
2032  
2037  
2042  
V 3.2 219 84 131  2     2 5.0 
VI 5.0 1,333  203 1,082  1  2 8 1  36 18.1 
VII 9.5 600 8 433  1  14 5  139 12.4 
VIII 8.7 92 31 61         
IX 5.1 267 137 111       19 8.2 
X 4.5 310 47 263         
XI 15.3 1,180  6 1,131    9 21 8  5 19.0 
XII 16.8 92  90    2     
XIII 9.2 266 2 241  23       
XIV 6.3 80 18 60    2     
XV 9.4 1,073  130 542 19 41 46 67 49  179* 16.3 
XVI 5.7 2,212  436 1,696  8 2 16 18 12  24 13.8 
XVII 26.2 1,188  85 682    115 7  299 49.1 
XVIII 5.7 313 29 284         
XIX 5.9 32  32         
XX 10.7 312 7 299   1 3   2 10.0 
XXI 5.3 19 3 16         
Total  10.2 11,414  1,349  8,459  29 71 90 314 113 24 965 30.8 
* 112 tariff lines are in staging category EX* where customs duty shall not be applied to originating 
goods imported and used directly by approved manufacturers, approved steel service centres and 
approved supporting industries in such sectors as automotive , motorcycle and components thereof , 
electrical and electronics, construction machinery and heavy equipment, and petroleum, gas and 
electric power.  
Note:   Based on the HS  2022 nomenclature.  
Source:  WTO estimates based on the data provided by Indonesia authorities.  
3.9.  At the HS Chapter level, the average remaining preferential duties are the same as the 
average MFN rates with the exception of Chapters 03 (fish), 19 (preparat ion of cereals), 
39 (plastics) and 72 (iron and steel) for which Indonesia provides for a small margin of preference  
(Chart 3.1). Average tariffs are highest for Chapters 22 (beverages and spirits), 21 (miscellaneous 
edible preparations), 33 (essential oils and resinoids) and 87 (motor vehicles), ranging from 
between 40% and 100%.  WT/REG469/1  
 
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  Chart 3.1 Average of dutiable rates, by HS Chapter  
 
Note:  Based on the HS 2022 nomenclature . 
Source:  WTO estimates based on the data provided by Indonesia authorities.  
3.1.3.2   Korea  
3.10.   Table 3.3 shows Korea 's tariff elimination commitments under the Agreement.6 In 2023, 
Korea provided MFN duty -free access for 2,239 (19.8%) of its tariff lines corresponding to 41.5% 
of its imports from Indonesia during 2020 -2022. With the entry into force of the Agreement in 
2023, Korea  granted preferential duty -free access on an additional 8, 079 (71.5%) tariff lines 
corresponding to 5 1.9% of its imports from Indonesia . Following te n years of implementation 
Korea would have liberalized 94.7% of the tariff corresponding to 97.1% of its imports from 
Indonesia. By the end of the implementation in 2042, Korea will maintain duties on 560 lines 
(5% of tariff lines and 2.9% of imports).  
Table 3.3 Korea: Tariff elimination commitments under the Agreement and 
corresponding average trade   
Duty phase -out period  Tariff lines in Korea's tariff schedule  Korea's imports from Indonesia  
(2020 -2022)  
Numb er % Value (USD Million)  % 
MFN 2023  2,239  19.8 4,527.5  41.5 
2023 8,079  71.5 5,656.8  51.9 
2025 93 0.8 280.1  2.6 
2027 51 0.5 19.7 0.2 
2029 10 0.1 0.1 0.0 
2032 226 2.0 95.6 0.9 
2037 19 0.2 2.4 0.0 
2042 16 0.1 0.9 0.0 
Remain dutiable  560 5.0 319.8  2.9 
Total  11,293  100.0  10,902.9  100.0  
Note:  Based on the HS 2022 nomenclature.  
Source:  WTO estimates based on the data provided by Korean authorities and the WTO -IDB. 
 
6 Of the 11,293 lines in Korea' s MFN tariff schedule, 11,229 (99.4%) had ad valorem  rates while 
64 lines (0.6%) had mixed duti es. 
020406080100120
02
03
04
06
07
08
10
11
12
13
15
16
17
19
20
21
22
27
28
29
30
33
34
35
39
44
52
62
72
84
85
87
95
96Average Duty Rate (%)
HS ChapterPreferential MFNWT/REG469/1  
 
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  3.11.   Table 3.4 shows Korea 's tariff liberalization by HS Section. The 560 remaining dutiable lines 
for imports from Indonesia are in eight different HS Sections  including Sections I -IV relating to 
agricultu re. The average final tariff for those lines ranges between  8% (textiles and miscellaneous 
manufactured articles ) and 368.9 % (chemicals ).  
Table 3.4 Korea : Tariff elimination under the Agreement, by HS Section   
HS Section  MFN 202 3 Lines  under the Agreement  
Average Dutiable 
Tariff  Average Tariff 
(%) 
Number  of 
lines  
Duty free 
lines  Duty Free  
Remain 
Dutiable  2023  
2025  
2027  
2029  
2032  
2037  
2042  
I 20.6 749 21 442 4  3 87 7  185 29.8 
II 110.7  684 29 400 1 5  36 2 5 206 301.5 
III 13.3 109  93 1 11     4 184.5 
IV 29.3 552 3 376 4 32 5 32 9 11 80 94.0 
V 3.8 385 49 322 14        
VI 7.6 1,870  185 1,627  42 1  3 1  11 368.9 
VII 6.6 364 6 338 16 2  2     
VIII 6.6 179 26 153         
IX 5.5 359 55 176   2 62   64 8.2 
X 0.0 252 252          
XI 9.8 1,113  28 1,074     2   9 8.0 
XII 10.3 82  82         
XIII 7.7 319 1 308 10        
XIV 4.9 106 5 101         
XV 4.0 1,006  415 590 1        
XVI 4.8 1,931  699 1,230     2     
XVII 6.1 401 94 307         
XVIII 4.1 455 209 246         
XIX 3.4 81 47 34         
XX 5.5 263 82 180       1 8.0 
XXI 0.0 33 33          
Total  14.5 11,293  2,239  8,079  93 51 10 226 19 16 560 143.8  
Note:  For the calculation of averages, specific rates are excluded  while the ad valorem  parts of 
alternate rates are included.  
 Based on the HS 2022 nomenclature.  
Source:  WTO estimates based on the data provided by Korean authorities  and the WTO -IDB. 
3.12.   At the HS Chapter level, Korea provides for a margin of preference in 12 Chapters r anging 
from 27 percentage points (HS Chapter 10, cereals) to 0.2 percentage points (HS Chapter 44, 
wood) while average preferential duties are equal to average MFN duties in 15 Chapters ( Chart 
3.2). The highest average rates are found in Chapters 33 (essential oils and resinoids at 754.3%) 
and 18 (cocoa and cocoa preparations at 513%).  WT/REG469/1  
 
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  Chart 3.2 Average of dutiable rates, by HS Chapter  
 
Note:  For the calculation of averages, specific rates are excluded  while the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2022 nomenclature . 
Source:  WTO estimates based on the data provided by Korean authorities and the WTO -IDB. 
 
3.1.4   Tariff rate quota s 
3.13.   There are no tariff -rate quotas under the Agreement.  
3.2  Rules of origin  
3.14.   Chapter 3 covers rules of origin and origin procedures.  
3.15.   A good is deemed to be originating in a Party and eligible for preferential tariff treatment if 
i) it is wholly obtained or produ ced entirely in the exporting country,7 ii) it is produced entirely in 
the territory of the exporting Party exclusively from originating materials, or iii) it is produced 
entirely in the territory of the exporting Party using non -originating materials, provided the good 
satisfies the applicable  requirements in Annex 3 -A (Article 3.2)  including a change in tariff 
classification (CTC) at the Chapter, Sub -heading or Heading levels or regional or qualifying value 
content of at least 40% .8 
3.16.   Article 3.6 provides for cumulation of origin among the Part ies. 
3.17.   Rule 6 of Annex 3 to the Agreement on Trade in Goods under the Framework Agreement on 
Comprehensive Economic Cooperation among the Governments of the Republic of Korea and the 
Member Countries of the Association of Southeast Asian Nations, and the Exc hange of Notes 
between the Korea and the ASEAN member countries regarding the Implementation and 
Monitoring of Rule 6 are incorporated into and made part of Chapter 3 (Article 3.5). Rule 6 
provides that certain goods shall be considered to be originating e ven if the production process or 
operation has been undertaken in an area outside the territories of Korea and ASEAN member 
 
7 Article 3.3 lists what is considered to be wholly obtained or produced entirely in the territory of a 
Party.  
8 Article 3.4 defines a build -up and a build -down method for the calculation of regional/qualifying value 
content when required in Annex 3 -A. 
0100200300400500600700800
01
02
03
04
05
06
07
08
09
10
11
12
13
15
16
17
18
19
20
21
22
23
33
35
44
52
94Average Duty Rate (%)
HS ChapterPreferential MFNWT/REG469/1  
 
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  countries (i.e. industrial zone) on materials exported from a Party and subsequently re -imported to 
that Party. A list of 100 goods subject to such treatment is attached to the Exchange of Notes.9  
3.18.   Article 3.7 lists non -qualifying operations  such as preserving operations, changes of 
packages, washing, mixing of products and slaughtering . Provisions on intermediate goods and 
direct con signment are in Articles 3.8 and 3.9  with Article 3.8 recognizing the absorption principle 
whereby if originating goods are used in the subsequent production of a good, no account shall be 
taken of the non -originating materials in the originating good for determining the origin of the 
subsequently produced good . 
3.19.   A de-minimis rule for goods that do not satisfy an applicable change in tariff classification 
requirement set out in Annex 3 -A is included in Article 3.10. Goods other than HS Chapters 50 -63 
are con sidered as originating if  the value of all non -originating materials used in their production 
that do not undergo the required CTC does not exceed 10 % of the free on board ( FOB) value of 
the good . Goods in Chapter s 50-63 (textiles and clothing) are conside red as originating if the 
weight of all non -originating materials used in their production that do not undergo the required 
CTC does not exceed 10 % of the total weight of the good . 
3.20.   Articles 3.11 through 3.14 provide for treatment of packaging and packing m aterial, 
accessories, spare parts and tools, neutral elements and identical and interchangeable goods or 
materials.  
3.21.   Section B cover origin procedures . Verification of proof of origin may be carried out 
retroactively upon request of the issuing body of the exporting Party following procedures in 
Article  3.23. In exceptional circumstances the importing Party may request verification visits to the 
exporti ng Party. Preferential treatment may be denied if written consent of the visit is not received 
from the producer or exporter concerned within 30 days of receipt of the intention to visit. The 
Agreement has no provisions for  exporters who are denied prefere ntial treatment to appeal the 
decision. Under Article 3.25 the Parties will develop a n electronic system for origin information 
exchange to ensure the effective and efficient implementation of the Chapter.10  
3.3  Export duties and charges, and quantitative res trictions  
3.22.   There are no provisions on export duties.11 Except as otherwise provided in th e Agreement, 
neither Party shall adopt or maintain any prohibition or restriction other than duties, taxes or other 
charges, whether made effective through quotas, impo rt or export licenses or other measures, on 
the (importation or ) exportation of goods, except in accordance with its rights and obligations 
under the relevant provisions of the WTO Agreement (Article 2.9). Where a Party adopts an export 
prohibition or rest riction in accordance with subparagraph 2(a) of Article XI of GATT 1994, it shall, 
upon request inform the other Party and provide the other Party with a reasonable opportunity for 
consultation.  
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.23.   The Parties reaffirm their existing rights and obligations with respect to each other under 
the WTO Agreement on the Application of Sanitary and Phytosanitary Measures ( Article 2.13 ). 
They also encourage technical cooper ation and communication in the field of SPS issues subject to 
the availability of appropriate resources.  
 
9 The Parties shall revise or amend the list of goods within one year from the date of entry into force of 
the Agreement, unless otherwise agreed.  The list provided by the Parties includes 100 products in HS Chapters 
29 (organic chemicals ), 39 ( plastics ), 40 (rubber ), 42 ( leather ), 58 ( special woven fabrics ), 63 ( other made up 
textile articles ), 70 ( glass), 71 ( pearls and precious stones ), 74 ( copper ), 82 ( tools and cutlery ), 84 ( nuclear 
reactors ), 85 ( electrical machinery ), 87 ( vehicles ), 90 ( optical  ins truments ), 91 ( clocks and watches ), 94 
(furniture ) and 95 (toys). 
10 The Parties' relevant authorities are developing a n Electronic Origin Data Exchange System  which is 
scheduled to be implemented  in the first half of 2024.  
11 Neither Party imposes export duties.  WT/REG469/1  
 
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  3.24.   The dispute settlement mechanism of the Agreement is not applicable to any SPS matter 
arising under the Agreement.  
3.4.1.2   Technical barriers to trade  
3.25.   The Part ies reaffirm their existing rights and obligations with respect to each other under 
the WTO Agreement on Technical Barriers to Trade ( Article 2.1 4). They also commit to strengthen 
cooperation in the fields of standards, technical regulations, and conformit y assessment 
procedures with a view to increasing mutual understanding of their respective systems and 
facilitating access to their respective markets.  
3.4.2   Safeguard mechanisms  
3.4.2.1   Global safeguards  
3.26.   The Parties retain their rights and obligations under Article XI X of the GATT 1994 and the 
WTO Agreement on Safeguards (Article 5.6). The Agreement does not confer any additional rights 
or obligations except that a Party may exclude imports of an originating good of the other Party 
from global safeguard measures.  
3.27.   At the request of the other Party, the Party intending to take a global safeguard measure 
may provide written notification with all pertinent information on the initiation of a safeguard 
investigation, the preliminary determination and the final finding of the investigation.  
3.28.   Neither Party may apply, with respect to the same good, and at the same time , a bilateral 
and a global safeguard measure.  
3.4.2.2   Bilateral safeguards  
3.29.   A Party may apply a safeguard measure i f, as a result of the reduction or elimination of a 
customs duty under the Agreement, an originating good of the other Party is being imported into 
the territory of a Party in such increased quantities, in absolute terms or relative to domestic 
production,  and under such conditions that the imports of such originating good of the other Party 
constitute a substantial cause of serious injury, or threat thereof, to a domestic industry producing 
a like or directly competitive good  (Article 5.2). A safeguard mea sure may consist of a suspension 
of the further reduction of customs duties or an increase of customs duties on the good 
concerned.12 
3.30.   Conditions and limitations to the application of safeguard measures are set out in Article 
5.3. A Party must notify the ot her Party immediately after the initiation of an investigation. 
Bilateral safeguard measures are not allowed beyond the expiration of the transition period, except 
with the consent of the other Party.13  
3.31.   Article s 5.4 and 5.5 provide for provisional measure s which shall not exceed 180 days and 
compensation.  Suspension of the application of the Agreement for goods that have trade effects 
substantially equivalent to the safeguard measure are authorized two years after the imposition of 
the safeguard if no agre ement on compensation is reached within 30 days.  
3.4.3   Anti-dumping and countervailing measures  
3.32.   Each Party retains its rights and obligations under the WTO Agreement with regard to the 
application of anti -dumping and countervailing duties  (Article 5.7) . The Arti cle also lists practices 
that the Parties shall follow in anti -dumping or countervailing cases between them, including the 
application of the lesser duty rule,  in order to enhance transparency in the implementation of the 
WTO Agreement . 
 
12 The increase of customs duties shall not exceed the lesser of the MFN applied rate (at the time the 
measure is taken or immediately before the entry into force of the Agreement) or the base rate of the customs 
duty under the Agreement.  
13 Transition period means the ten -year period following the date of entry into force of the Agreement  or 
the tariff elimination period set out in the Parties' schedules if it is longer than ten years.  WT/REG469/1  
 
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  3.33.   Articles 5.8 throug h 5.11 provide for notification and consultations, investigation after 
termination resulting from a review, cumulative assessment and cooperation in anti -circumvention 
investigations.  
3.4.4   Subsidies and State-aid 
3.34.   The Agreement does not contain specific provisi ons on subsidies or other State aid in 
addition to the corresponding disciplines of the WTO SCM Agreement.  
3.4.5   Customs -related procedures  and trade facilitation  
3.35.   Article VII of the GATT 1994 (on customs valuation), as well as the WTO Agreement on 
Customs Valuation, are incorporated into and made part of the Agreement, mutatis mutandis  
(Article  2.5).  
3.36.   Article 2.11 on import licensing provides that all automatic and non-automatic import 
licensing procedures shall be implemented in a transparent and predictable manner, and applied in 
accordance with the Agreement on Import Licensing Procedures in Annex 1A to the WTO 
Agreement  and the Parties shall not adopt or maintain  a measure that is inconsistent with the 
Import Licensing Agreement.  
3.37.   Chapter 4 provides for customs procedures and trade facilitation. It requires publication on 
the internet of laws, regulations and general administrative procedures for imports and exports, 
the maintenance of enquiry points and the possibility to comment on proposed laws or 
amendments  (Article 4.1) . The Parties shall adopt electronic or automated risk management 
systems, focusing inspections on high -risk imports (Article 4.4). The Pa rties shall also ensure that 
importers have access to administrative review or appeal mechanisms including judicial review 
(Article 4.8) as well as provide for civil or administrative penalties and where appropriate criminal 
sanctions (Article 4.9).  
3.38.   Consul tations are also foreseen under Article 4.11 . Differences that cannot be resolved 
through consultations may be referred to the  Committee on Customs and Trade Facilitation which 
is established under Article 4.12 to ensure the proper functioning of Chapter 4  and Chapter 3 on 
rules of origin  and origin procedures . 
3.4.6   Sector -specific provisions on goods  
3.39.   There are no sector -specific provisions on goods  although the Parties agree to cooperate in 
a number of sectors including agriculture and industry in Chapter 8.  
4  PROVISIONS ON TRADE IN SERVICES  
4.1.  Chapter 6 contains disciplines on trade in services, while Chapter 7 covers investment. 
Annexes 6D and 6E  sets out the Parties' schedules of specific commitments on services.  
4.2.  Chapter 7 complements the rules and disciplines on investment (including services 
investments) as applied to measures affecting the temporary entry of business persons of a Party 
into the territory of the other Party. In the event of any inconsistency between Chapters 6 and 7, 
Chapter 6 prevails to the ext ent of any inconsistency (Article 7.3). 
4.1  Scope and definitions  
4.3.  Chapter 6 applies to measures of a Party affecting trade in services (defined as the supply of 
a service in any of the 4 modes  of supply ) by service (Article 6.2) . It does not apply to services 
supplied in the exercise of governmental authority, measures affecting air traffic rights other than 
aircraft repair and maintenance services, the selling and marketing of air transport services, 
computer reservation system services, cabotage in maritime t ransport services, subsidies or 
grants provided by a Party, government procurement and measures regarding seeking access to 
the employment market, citizenship, nationality, residence or employment on a permanent basis.  WT/REG469/1  
 
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  4.4.  Annex es 6A, 6B and 6C include specific provisions on f inancial services, movement of natural 
persons  and professional services . 
4.2  Denial of benefits  
4.5.  Under Article 6.16, a Party may deny the benefits of Chapter 6 to a service supplier of the 
other Party if a person of a non -party owns or controls the service supplier and the denying Party 
adopts or maintains measures with respect to the non -party or a person of the non -party that 
prohibit transactions with the service supplier or that would be violated or circumvented if the 
benefits of th is Chapter were accorded.  In the case of the supply of a maritime transport service, a 
Party may deny benefits if it establishes that the service is supplied by a vessel registered under 
the laws of a non -party and by a by a person of a non -party which ope rates and/or uses the vessel 
in whole or in part. Finally, a  Party may deny benefits to a service supplier of the other Party if the 
service supplier is a juridical person owned or controlled by persons of a non -party or of the 
denying Party that has no su bstantial business activities in the territory of the other Party.  
4.3  General provisions on trade in services  
4.3.1   Market access  
4.6.  In relation to trade in services, a Party shall not adopt or maintain, either on the basis of a 
regional subdivision or of its entire t erritory, measures that impose the types of limitations covered 
by Paragraphs 2(a) to 2(f) of Article XVI of the GATS (Article 6.5). 
4.7.  Chapter 7 on investment does not contain a market access obligation like GATS Article XVI.  
4.3.2   National treatment and MFN  
4.8.  In relation to trade in services, Articles 6.3 contain s national treatment clauses applicable to 
the Parties' service providers  in sectors inscribed in their schedules . Article 6.4 provides that t he 
Parties shall accord, in respect of some services sectors  and subsectors listed in their schedules, 
treatment no less favourable than that accord ed to like services and service suppliers of a non -
party. Table 4.1 lists the services subsectors in which the Parties provide MFN treatment.  
Table 4.1 List of services subsectors with MFN treatment  
Indonesia  
Legal services (only in foreign law 
advisory services)  Assembly and erection of 
prefabricated constructions  Renting services related to 
equipment for construction or 
demolition of building or civil 
engineering works with operator  
Postal services  Installation work  International passenger maritime 
transport  
Courier services  Building completion and finishing 
work International freight maritime 
transport  
Construction work for buildings, 
except for one - and two -dwelling 
buildings  Pre-erection work at construction 
site except site investigation work 
and site formation and clearance 
work  
Construction work for civil 
engineering  Special trade construction   
Korea  
Engineering services  Rental/Leasing services without 
operators relating to other 
machinery and equipment  Tourist Guides Services  
Integrated engineering services  Advertising services  Maritime international Transport 
Services  
Urban planning and landscape 
architectural services  Market research and public opin ion 
polling services  Maritime cargo handling Services  
Consultancy services related to the 
installation of computer hardware  Management consulting services  Maritime agency services  
Software implementation services  Project management services  Maintenance and repair of vessels  
Data processing services  Services incidental to mining  Rental of vessels with crew  WT/REG469/1  
 
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  Data base services  Services incidental to 
manufacturing (only consulting 
services related to manufacturing 
technologies of new products)  Pushing and towing services  
Research and development services 
on social sciences and humanities  Maintenance and repair of 
equipment  Tally, measuring and survey 
services  
Interdisciplinary research and 
development services  Packaging services  Computer reservation system (CRS) 
services  
Rental/Leasing services without 
operators relating to ships  Value -added Services 
(telecommunications)  Maintenance and repair of aircraft  
Rental/Leasing services without 
operators relating to aircraft  Construction services  Pipeline transport (only the 
transportation of oil products, 
excluding the transportation of LPG)  
Rental/Leasing services without 
operators relating to other transport 
equipment  Franchising   
Source:  WTO Secretariat based on the Agr eement.  
 
4.9.  In relation to investment, Articles 7.4 and 7.5 provide for national and MFN treatment for the 
Parties' investors and their investments when the y are related to the establishment, acquisition, 
expansion, management, conduct, operation, and sale or other disposition of investments.  
4.3.3   Commercial presence  
4.10.   Commercial presence is defined in Article 6.1. The Parties' schedules of commitments in 
Annex es 6-D and 6 -E include horizontal commitments, as well as specific market access 
commitments in mode  3. 
4.3.4   Movement of natural persons  
4.11.   Annex  6-B on measures affecting the movement of natural persons including business 
visitors, independent professionals, contractual service supplie rs and intra -corporate transferees . 
4.12.   Each Party shall, in accordance with its schedule of commitments in Appendix 6 -B-1 through 
6-B-4, grant temporary entry or temporary stay to natural persons of the other Party pr ovided 
they follow prescribed application procedures for the immigration formality sought and meet all 
relevant eligibility requirements for temporary entry or stay to the granting Party.  Table 4.2 
summarizes the length of stay for the categories included in Appendix 6 -B-1 to 6 -B-4. 
Table 4.2 Commitments on movement of natural persons (temporary entry of business 
persons)  
Category  Length of stay  
Indonesia  
Intra-corporate transferees  2 years (extendable by a maximum of twice for 2 
years each time)  
Business visitors  60 day s extendable to a maximum of 120 days  
Independent professionals  1 year or the period of the contract, whichever is less 
(extendable , subject to domestic laws and 
regulations ) 
Korea  
Intra-corporate transferees  3 years (extendable)  
Business visitors  90 days  
Contractual service suppliers  Duration of the contract which cannot  exceed 1 year  
Independent professionals  1 year or the period of the contract, whichever is less 
(extendable)  
Source:  WTO Secretariat based on the Agreement . 
 
4.13.   Information on application requirements and procedures relating to  the movement of 
natural persons must be published and each Party must establish contact points to respond to 
inquiries regarding regulations governing the movement of natural persons.14 Dispute settlement 
 
14 The contact points are for Korea , the Director of the Visa and Residence Division of Korea 
Immigration Service (Ministry of Justice) and for Indonesia, the Director of Trade in Services Negotiations of 
the Directorate General of International Trade Negotiations (Ministry of Trade) or the ir respective successors.  WT/REG469/1  
 
- 23 - 
 
  procedures in Chapter 10 of the Agreement do not apply to a refusal to grant temporary entry , 
unless the matter involves a pattern of practice and the natural persons affected have exhausted 
all available administrative remedies regarding th e particular matter .  
4.4  Liberalization commitments  
4.14.   The Parties' commitments in services  are scheduled following a positive list approach . The 
sectors liberalized by each Party are listed in Annexes 6 -D and 6 -E containing market access and 
national treatment limitations and conditions applicable to services and service suppliers of the 
other Party. Neither Party may adopt new or more discriminatory measures compared to those 
listed in the respective schedules of commitment (Article 6.7). Article 6.8 provides f or the 
possibility of holding consultations  to modify the schedules of commitments of a Party.  
4.4.1   Indonesia  
4.4.1.1   MFN and horizontal commitments  
4.15.   Indonesia's GATS MFN exemptions cover measures related to banking services and 
construction services. Under the Agreement, Indonesia does not include MFN exemptions.  
4.16.   In its horizontal commitments under the GATS, Indonesia limits foreign ownership  and/or 
representative office s for commercial presence through limited liability enterprises  of up to 49% . It 
also limits the acquisition of land by foreign juridical and natural persons. Moreover, non -resident 
taxpayers are subject to a withholding tax of 20% and a ny juridical and natural persons should 
meet professional qualification requirements. Indonesia's horizontal commitments under the 
Agreement replicate its GATS commitments and reserves the right to adopt or maintain any 
measure for the protection of Indone sian essential security interests.  
4.4.1.2   Sector specific commitments  
4.17.   Annex 6 -E of the Agreement includes Indonesia's list of commitments for trade in services, 
commercial presence and movement of people. Table 4.3 provides a comparison of Indonesia's 
GATS commitments in modes 1 -3 with those taken under the Agreement. Horizontal limitations 
and MFN reservations are not considered in the table which shou ld be read in conjunction with the 
Annex.  
4.18.   Indonesia's sector -specific commitments under the Agreement expand on its GATS 
commitments with the removal of some limitations and the inclusion of commitments in new 
sectors.  
Table 4.3 Indonesia: comparison between the GATS and Agreement specific 
commitments in trade in services  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Cross -border t rade in 
services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Computer  and Related  Services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Research  and Development  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Real  Estate  Services  --- Same  --- --- --- --- 
E. Rental/Leasing  Services  without   
Operators  --- New Partial  Partial  Partial  Partial  
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Partial  
2. Communication services        
A. Postal  services  --- New Full Full Full Partial  
B. Courier  services  --- New Full Full Full Partial  
C. Telecommunication  services  Partial  Improved  Partial  Full Full Partial  
D. Audiovisual services  --- New Partial  Partial  Partial  Partial  
E. Other  --- Same  --- --- --- --- 
3. Construction and related engineering 
services        
A. General  construction  work for buildings  Partial  Improved  Partial  Partial  Partial  Partial  
B. General  construction  work for civil  
Engineering  Partial  Improved  Partial  Full Full Partial  WT/REG469/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Cross -border t rade in 
services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
C. Installation  and assembly  work  Partial  Improved  Partial  Full Full Partial  
D. Building  completion  and finishing  work  --- New Partial  Full Full Partial  
E. Other  Partial  Improved  Partial  Full Full Partial  
4. Distribution services        
A. Commission  agents'  services  --- Same  --- --- --- --- 
B. Wholesale  trade  services  --- New Partial  Partial  Partial  Partial  
C. Retailing  services  --- New Partial  Partial  Partial  Partial  
D. Franchising  --- New Partial  Partial  Partial  Partial  
E. Other  --- New Partial  Partial  Partial  Partial  
5. Education services        
A. Primary education services  --- Same  --- --- --- --- 
B. Secondary education services  --- New Partial  Full Partial  Partial  
C. Higher education services  --- New Partial  Full Partial  Partial  
D. Adult education  --- New Partial  Full Partial  Partial  
E. Other education services  --- New Partial  Full Partial  Partial  
6. Environmental services        
A. Sewage services  --- New Full Partial  Full Partial  
B. Refuse disposal services  --- New Partial  Partial  Partial  Partial  
C. Sanitation and similar services  --- New Partial  Full Partial  Partial  
D. Other  --- New Partial  Partial  Partial  Partial  
7. Financial services        
A. All insurance  and insurance -related  services  Partial  Same  Partial  Partial  Partial  Partial  
B. Banking  and other  financial  services  Partial  Improved  Partial  Full Partial  Partial  
8. Health related and social services        
A. Hospital services  --- New Partial  Full Partial  Partial  
B. Other Human Health Services  --- New Partial  Partial  Partial  Partial  
C. Social Services  --- New Partial  Full Full Partial  
D. Other  --- Same  --- --- --- --- 
9. Tourism and travel related services        
A. Hotels  and restaurants (including catering)  Partial  Improved  Partial  Full Partial  Partial  
B. Travel  agencies  and tour operators   
services  Partial  Improved  Partial  Full Partial  Partial  
C. Tourist  guides  services  --- New Partial  Full --- --- 
D. Other  --- New Partial  Full Partial  Partial  
10. Recreational and cultural and sporting 
services        
A. Entertainment  services  --- New Partial  Partial  Partial  Partial  
B. News agency services  --- Same  --- --- --- --- 
C. Libraries, archives, museums and other 
cultural services  --- New Partial  Full Partial  Partial  
D. Sporting and other recreational services  --- New Partial  Full Partial  Partial  
E. Other  --- New Partial  Partial  Partial  Partial  
11. Transport services        
A. Maritime Transport Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Internal Waterways Transport  --- New Partial  Partial  Partial  Partial  
C. Air  Transport  Services  --- New Partial  Full Partial  Partial  
D. Space  Transport  --- Same  --- --- --- --- 
E. Rail  Transport  Services  --- Same  --- --- --- --- 
F. Road  Transport  Services  --- New Partial  Partial  Partial  Partial  
G. Pipeline  Transport  --- Same  --- --- --- --- 
H. Services  auxiliary  to all modes  of  
transport  --- Same  --- --- --- --- 
I. Other  Transport  Services  --- Same  --- --- --- --- 
12. Other services not included elsewhere  --- New Partial  Partial  Partial  Partial  
General Note: MFN and Horizontal limitations, as well as mode 4 commitments/limitations are not considered 
in the Table.  
a Information in this column refers only to commitments in sectors or sub -sectors covered under the 
Agreement.  
Full: Commitments not subject to market access or nationa l treatment limitation(s) for any of the three 
modes.  
Partial:  Commitments subject to some market access or national treatment limitations for any of the three 
modes.  
---: No commitments under the GATS or the Agreement.  
Improved: Overall improved commitments under the Agreement as compared to those under the GATS.  
Same:  Commitment identical to those under the GATS.  
Source:  Draft Consolidated GATS Schedule of Specific Commitments (S/DCS/W/IDN) and Indonesia's 
Schedules annexed to the Agreement.  WT/REG469/1  
 
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  4.4.1.2.1   Business services  
4.19.   Indonesia made new commitments for legal services in foreign law advisory services.  It 
improved coverage and commitments for computer and related services by adding new sectors 
such as advanced data base services and by removing limitations on market access and national 
treatment for some services already covered under the GATS.  Commitments in research and 
development and other services are improved with the elimination of limitations for modes 1 and 2 
which, under the GATS , are unbound for Government funded projects , and with the inclusion of 
research and experimental development services on linguistic and foreign languages . Indonesia 
also made commitments on the rental of vessel s without crew and rental services concerning video 
tapes  and a number of other business services.  
4.4.1.2.2   Communication services  
4.20.   Indonesia liberalized mode s 1 and 2 for postal and courier services while limitations, such as 
joint venture and location requirements, remain for mode 3. For telecommunication se rvices, 
commitments under t he Agreement are improved by removing all limitations for mode 1 and 2 
while keeping joint ventures requirements for mode 3. Indonesia also liberalized some audiovisual 
subsectors with some limitations.   
4.4.1.2.3   Construction services  
4.21.   For construction and related engineering services, the Agreement provides wider coverage 
and improved conditions compared to Indonesia's GATS commitments. The capital share of a 
limited liability enterprise that may be owned by foreign partners has been raise d to 67% 
compared to 49% in its GATS schedule.  
4.4.1.2.4   Distribution services  
4.22.   Indonesia made new commitments in wholesale trade services of food, beverages and 
tobacco , and textile, clothing and footwear  (with minimum space above 5,000 square metr es), 
retail trad e services of bread and flour confectionery, and textiles, clothing and footwear (with 
minimum space of 2,000 square metr es) and franchising of wholesale trade services of food, 
beverages and tobacco . Mode 2 for direct selling has no limitations. Covered sectors are subject to 
a maximum foreign equity threshold of 67%. Moreover, wholesale trade services are subject to 
other limitations such as licensing requirements and an obligation to cooperate with at least 100 
Indonesian SMEs yearly as a supplier and re tailer.  
4.4.1.2.5   Education services  
4.23.   Education services are partially liberalized with the exception of primary education. General 
conditions limit liberalization, such as mutual recognition of credits, partnership with local 
partners, and geographical limitations.  
4.4.1.2.6   Environmental services  
4.24.   The Agreement provides for partial liberalization of sewage services (for wastewater 
management only ), some  solid waste disposal services, public sanitation facilities  and other 
environmental services subsectors . These remain howeve r subject to certain limitations, in 
particular on joint ventures and foreign equity. There are no GATS commitments in the sector.  
4.4.1.2.7   Financial services  
4.25.   Indonesia essentially replicates its GATS commitments in non -banking financial sectors. The 
coverage of ba nking services is identical to that under the GATS. Improvements consist of an 
increase in the threshold for the acquisition of local banks through the purchase of shares of locally 
incorporated banks listed on the stock exchange from 49% (under the GATS) to 51% and an 
increase in allowed sub -branches and auxiliary offices for foreign bank branch offices from one to 
two. WT/REG469/1  
 
- 26 - 
 
  4.4.1.2.8   Health services  
4.26.   Indonesia made commitments in specialist and sub -specialist medical services  with some 
limitations for mode 3 includ ing a maximum share of capital share owned by foreigners and 
nationality requirements for the chair of  the board of directors.  Indonesia also made commitments 
in acupuncture services and some social services.  It has no GATS commitments in the sector.  
4.4.1.2.9   Touri sm and travel related services  
4.27.   Under the GATS, Indonesia has commitments in hotels and tourist resorts with at least 
three stars allowing up to 100% of foreign capital only in some regions and subject to higher paid -
up capital requirements . The coverage of  hotels and restaurants under the Agreement is wider 
with new commitments in subsectors such as motel lodging services, meal and beverage serving 
services with no limitations for mode s 1 and 2 and joint venture and geographical requirements for 
mode 3. Regarding travel agents and tour operators, Indonesia removed a geographical limitation 
in mode 3 . Finally, Indonesia made new commitments in tour leader services, tourist resorts, 
international hotel operators and tourism consultancy services.  
4.4.1.2.10   Recreational and cultural and sporting services  
4.28.   Under the Agreement, Indonesia liberalized theatre and opera houses and museums of 
jewellery with some limitations such as joint venture requirement s with no more than 51% of the 
capital share owned by foreigners  and lice nce requirements . Golf courses and other facilities (only 
within the tourist resorts ) are also scheduled with limitations in mode 3 such as economic needs 
test requirements and limitations on the share of capital owned by foreigners. In other sectors, 
Indonesia made commitments in online gaming, marina facilities and hotel management.  
4.4.1.2.11   Transport services  
4.29.   Under the Agreement, Indonesia  improved it s GATS commitments in maritime transport 
services  by allowing joint ventures to operat e at least one Indonesian -flagged vessel with 
Indonesian crew. It also scheduled commitments in a number of other subsectors such as 
maintenance and repair of vessels, pushing and towing, vessel salvage , maritime cargo handling  
and freight forwarding servic es. In internal waterways transport, Indonesia liberalized passenger 
transportation (excluding cabotage) with joint venture requirements and maintenance and repair 
of vessels only in the eastern part of Indonesia.  Indonesia also liberalize d, with a joint v enture 
requirement, aircraft repair and maintenance services , computer reservation systems and selling 
and marketing  which are not covered under the GATS.  New commitments  with some limitations in 
mode 3 were made  for maintenance and repair of road transpor t equipment, support services for 
road transport terminal, support services for highway, bridge and tunnel and operation services 
limited to highway s.  
4.4.1.2.12   Other services  
4.30.   Indonesia makes  new commitments in some energy services with limitations such as on 
foreign equity participation and licensing requirements . It also fully liberalized SPA services.  
4.4.2   Korea  
4.4.2.1   MFN and horizontal commitments  
4.31.   In its horizontal GATS commitments, Korea maintains market access and national treatment 
limitations on commercial presence: i)  the acquisition of outstanding stocks and bonds in existing 
domestic companies is restricted with some specific exceptions, ii) the amount of foreign direct 
investment must be at least 50 million Won, iii) the acquisition of land is unbound with some 
exceptions, iv) only companies established in Korea are eligible for subsidies, including tax 
benefits, and v) research and development subsidies are unbound. Horizontal limitations are also 
scheduled for mode 4.  Under the Agreement, Korea removed the limitati ons on the acquisition of 
outstanding bonds and on the minimum amount of FDI.   WT/REG469/1  
 
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  4.32.   Under the GATS, Korea scheduled an MFN reservation for computerized reservation system. 
Under the Agreement, Korea does not include MFN exemptions.  
4.4.2.2   Sector specific commitments  
4.33.   Annex 6 -D of the Agreement includes Korea 's list of commitments for trade in services, 
commercial presence and the movement of people. Table 4.4 provides a comparison of Korea 's 
GATS commitments in modes 1 -3 with those taken under the Agreement. Horizontal limitations 
and MFN reservations are not considered in the table which should b e read in conjunction with the 
Annex.  
4.34.   Korea 's sector -specific commitments under the Agreement expand on its GATS 
commitments with  the removal of some limitations and the inclusion of  commitments in new 
sectors.  
Table 4.4 Korea: Comparison between the GATS and Agreement specific commitments  
Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Cross border t rade in 
services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
1. Business services        
A. Professional  Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Computer  and Related  Services  Full Same  Full Full Full Full 
C. Research  and Development  Services  Partial  Improved  Full Partial  Partial  Partial  
D. Real  Estate  Services  --- New Partial  Partial  Partial  Full 
E. Rental/Leasing  Services  without   
Operators  Partial  Improved  Partial  Partial  Partial  Partial  
F. Other  Business  Services  Partial  Improved  Partial  Partial  Partial  Partial  
2. Communication services        
A. Postal  services  --- Same  --- --- --- --- 
B. Courier  services  --- New Partial  Partial  Partial  Partial  
C. Telecommunication  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Audiovisual services  Partial  Same  Partial  Full Partial  Full 
E. Other  --- Same  --- --- --- --- 
3. Construction and related 
engineering services        
A. General  construction  work for buildings  Partial  Improved  Full Full Full Full 
B. General  construction  work for civil  
Engineering  Partial  Improved  Full Full Full Full 
C. Installation  and assembly  work  Partial  Improved  Full Full Full Full 
D. Building  completion  and finishing  work  Partial  Improved  Full Full Full Full 
E. Other  Partial  Improved  Full Full Full Full 
4. Distribution services        
A. Commission  agents'  services  Partial  Improved  Partial  Partial  Partial  Full 
B. Wholesale  trade services  Partial  Improved  Partial  Partial  Partial  Partial  
C. Retailing  services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Franchising  Partial  Improved  Partial  Full Partial  Full 
E. Other  --- Same  --- --- --- --- 
5. Education services        
A. Primary education services  --- Same  --- --- --- --- 
B. Secondary education services  --- Same  --- --- --- --- 
C. Higher education services  --- New Partial  Partial  Partial  Partial  
D. Adult education  --- New Partial  Partial  Partial  Partial  
E. Other education services  --- Same  --- --- --- --- 
6. Environmental services        
A. Sewage services  Partial  Improved  Partial  Full Partial  Full 
B. Refuse disposal services  Partial  Improved  Partial  Full Partial  Full 
C. Sanitation and similar services  --- Same  --- --- --- --- 
D. Other  Partial  Improved  Partial  Full Partial  Full 
7. Financial services        
A. All insurance  and insurance -
related  services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Banking  and other financial  services  Partial  Improved  Partial  Partial  Partial  Partial  
8. Health related and social services        
A. Hospital services  --- Same  --- --- --- --- 
B. Other Human Health Services  --- Same  --- --- --- --- 
C. Social Services  --- Same  --- --- --- --- 
D. Other  --- Same  --- --- --- --- WT/REG469/1  
 
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  Sectors / Sub -sectors  GATS  FTA 
Compared 
to GATS  Cross border t rade in 
services  Investment  
Sector 
coverage  Commit -
mentsa Sector 
coverage  Commit -
mentsa 
9. Tourism and travel related services        
A. Hotels  and restaurants (including 
catering)  Partial  Improved  Partial  Partial  Partial  Full 
B. Travel  agencies  and tour operators   
services  Partial  Improved  Full Full Full Full 
C. Tourist  guides  services  Partial  Improved  Full Full Full Full 
D. Other  --- Same  --- --- --- --- 
10. Recreational and cultural and 
sporting services        
A. Entertainment  services  --- New Partial  Partial  Partial  Partial  
B. News agency services  --- New Full Partial  Full Partial  
C. Libraries, archives, museums and other 
cultural services  --- Same  --- --- --- --- 
D. Sporting and other recreational services  --- Same  --- --- --- --- 
E. Other  --- New Partial  Partial  Partial  Full 
11. Transport services        
A. Maritime Transport Services  Partial  Improved  Partial  Partial  Partial  Partial  
B. Internal Waterways Transport  --- Same  --- --- --- --- 
C. Air  Transport  Services  Partial  Improved  Partial  Partial  Partial  Partial  
D. Space  Transport  --- Same  --- --- --- --- 
E. Rail  Transport  Services  --- New Partial  Partial  Partial  Partial  
F. Road  Transport  Services  Partial  Same  Partial  Partial  Partial  Partial  
G. Pipeline  Transport  --- New Partial  Partial  Partial  Full 
H. Services  auxiliary  to all modes  of  
transport  Partial  Same  Partial  Full Partial  Full 
I. Other  Transport  Services  Partial  Improved  Partial  Partial  Partial  Full 
12. Other services not included 
elsewhere  --- New Partial  Full --- --- 
Note:  MFN and Horizontal limitations, as well as Mode 4 commitments/limitations are not included.  
a Information in this column refers only to commitments in sectors or sub -sectors covered under the 
Agreement.  
Full: Specific commitments not subject to limitation(s) under  market access or national treatment.  
Partial:  Specific commitments subject to some limitation(s) under market access or national treatment.  
---: No specific commitment; sector or subsector excluded from the GATS and/or the Agreement.  
New: New commitments full or partial, with or without limitations.  
Improved: Overall improved commitments under the Agreement compared to those under the GATS.  
Source:  Korea's schedules annexed to the Agreement and Korea's Draft consolidated Schedule of Specific 
Commitments (S/DCS/W/KOR/Rev.1).  
 
4.4.2.2.1   Business services  
4.35.   Improvements of commitments in professional services include the addition, with some 
limitations, of legal services, veterinary services, security services, building -cleaning services, 
some publishing serv ices and specialty design services. Cross -border trade and consumption 
abroad of research and development services in the natural sciences , social sciences and 
humanities  and interdisciplinary research and development services are liberalized compared to 
the GATS. New commitments in real estate brokerage and appraisal services are included with 
some limitations in modes 1 and 2. Rental/leasing services without operator s relating to ships, 
market research and public opinion polling services, consulting servi ces related to agriculture, 
fishing and mining are fully liberalized for modes 1 and 2 under the Agreement compared to the 
GATS for which there are  no commitments.  
4.4.2.2.2   Communication services  
4.36.   Some courier services are partially liberalized under the Agreement but limited to being 
provided by air or sea only and requiring a license subject to an economic needs test for trucking 
businesses. In telecommunication services, Korea increased the maximum share of voting rights 
that a foreign person can hold from 33% to 49% in order to be allowed a licence for facilities -
based public telecommunications services. L imitations on resale -based telecommunications 
services are also removed.  WT/REG469/1  
 
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  4.4.2.2.3   Construction and related engineering services  
4.37.   All limitations on market access and n ational treatment scheduled under the GATS for all 
construction services when technically feasible are eliminated under the Agreement.  
4.4.2.2.4   Distribution services  
4.38.   Improvements in distribution services include the removal of all limitations on market 
access for m ode 2 of commission agents services, and the removal of needs test requirements for 
some wholesale services such as large markets and wholesale trade centres. In retail services  
(excluding retail trade and gas station business related to LPG under CPC 613*  and rice, ginseng 
and red ginseng) , the establishment of department stores and shopping centres is allowed under 
the Agreement. Franchising is limited to the items allowed under wholesale trade and retailing 
services.  
4.4.2.2.5   Education services  
4.39.   Korea made commitm ents in certain higher and adult education services provided by private 
institutions which are not included in its GATS schedules.  
4.4.2.2.6   Environmental services  
4.40.   In environmental services, Korea eliminated commercial presence requirements for 
collection and treat ment services for non -industrial wastewater and industrial refuse disposal 
services. It also liberalized other environmental services not included in its GATS schedules such 
as soil remediation and groundwater purification and environment consulting servic es.  
4.4.2.2.7   Financial services  
4.41.   Financial services are subject to a number of provisions listed in the headnotes of the 
specific commitments including, inter alia , the limitation that a financial institution must be 
established for only one business defined in the related law and cannot engage in other business 
activities regulated by other relevant laws, mode 1 and 2 supply of financial services may not be 
settled in Korean currency, assets owned by branches must be kept within the territory of Korea, 
regulated demand deposit interest rates and financial institutions cannot own non -business real 
estate . The coverage of insurance services is the same as under the GATS  with residency 
requirements for t op executive personnel . The coverage and limitations for banking s ervices are 
similar to those under the GATS with improvements such as a higher threshold of the allowed 
ownership of stocks  of a bank . 
4.4.2.2.8   Tourism and travel related services  
4.42.   The coverage of hotels and restaurants under the Agreement is slightly wider with the  
inclusion of beverage serving services without entertainment (except for rail and air transport 
related facilities).  
4.4.2.2.9   Recreational and cultural and sporting services  
4.43.   In entertainment services, Korea liberalized, with some limitations, services provided by 
individual artists or groups and new s agency services. Gaming services  are liberalized  except for 
mode 1 which remains unbound .  
4.4.2.2.10   Transport services  
4.44.   Regarding maritime transport services, cabotage services remain unbound. The cargo 
preference system applicable to certain products in relation to bulk, tramp, and other international 
shipping services have been removed under the Agreement. Additional commitments were made 
for the rental of vessels with crew, pushing and towing, tally, m easuring and survey services, 
maintenance and repair of aircraft and rail , and some services auxiliary to rail transport services, 
which are not included in the GATS. Passenger and freight rail transportation are also partially 
liberalized under the Agreem ent. Coverage for other transport services is the same as under the WT/REG469/1  
 
- 30 - 
 
  GATS but licences and business area restrictions for combined transport services and freight 
forwarding for rail transport are removed.  
4.4.2.2.11   Other services not included elsewhere  
4.45.   Under other s ervices, hairdressing and other beauty services are liberalized except for mode 
3 which remains unbound.  
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.46.   Article 6.10 builds upon Article VI of the GATS . It specifies that if a Party requires 
authorization for the  supply of a service in which specific commitments ha ve been made, its 
competent authorities  shall, inter alia , ensure that fees are reasonable and transparent, inform the 
applicant of the decision concerning the application, to the extent practicable esta blish an 
indicative timeframe for processing an application  and not require physical presence in the 
territory of a Party for the submission of an application for a license or qualification, and 
endeavour  to accept applications in electronic format. Moreov er, if the results of the negotiations 
related to Article VI (4) of the GATS enter into effect, the Parties shall jointly review the results 
and amend Article  6.10 as appropriate . 
4.5.2   Recognition  
4.47.   Article 6.11 of the Agreement mirrors Article VII of the GATS.   
4.5.3   Subsidies  
4.48.   There are no provisions on subsidies in the Agreement.  
4.5.4   Safeguards  
4.49.   The Parties shall review the incorporation of safeguard measures pending any further 
developments in the multilateral fora pursuant to Article X of the GATS (Article 6.14). Moreov er, if 
a Party encounters difficulties in the implementation of commitments in Chapter 6, it may request 
consultation s to address such difficulties.  
4.5.5   Other  investment provisions  
4.50.   Investment is addressed in Chapter 7. It applies to measures by a Party relatin g to 
investors of the other Party  and covered investment  (Article 7.2) . The Chapter does not apply to 
measures relating to government procurement, subsidies and grants, taxation measures, services 
supplied in the exercise of governmental authority or measu res adopted or maintained by a Party 
to the extent that they are covered by Chapter 6 on trade in services . However, Articles 7.6 
(treatment of investment), 7.7 (compensation of losses), 7.11 (transfers), 7.12 (expropriation and 
compensation) and 7.13 (sub rogation) apply to any measure affecting the supply of service by a 
service supplier of a Party through commercial presence in the territory of the other Party 
pursuant to the provisions of Chapter 6, only to the extent that they constitute a covered 
investment.  Article 7.15 includes a denial of benefit provision.  
4.51.   Article 7.4 requires that national treatment be accorded to investors of the other Party and 
to their covered investments while Article 7.5 requires that MFN treatment be accorded to 
investor s of the other Party.  
4.52.   Article 7.10 provides that Articles 7.4 (national treatment), 7.5 (MFN treatment), 7.8 
(performance requirements) and 7.9 (senior management and boards of directors) do not apply to 
i) any existing non -conforming measure that is maintaine d by a Party at central and regional level s 
of government as set out in the Parties' schedule to Annex I and to measure s maintained at a local 
level of government, ii) the continuation or prompt renewal of scheduled non -conforming 
measures, iii) amendments  to scheduled non -conforming measures to the extent that the 
amendment does not decrease the conformity of the measure, as it existed at the date of entry WT/REG469/1  
 
- 31 - 
 
  into force of the Party 's Schedule to Annex I and iv) any measures that a Party adopts or 
maintains w ith respect to sectors, sub -sectors or activities, as set out in its Schedule to Annex II.  
Indonesia scheduled 18 reservations in Annex I and 15 in Annex II while Korea scheduled 4 
reservations in Annex I and 17 in Annex II.15 
4.53.   Chapter 7 also contains disci plines on minimum standards of treatment, which foresees that 
covered investments shall be accorded fair and equitable treatment as well as full protection and 
security (Article 7.6). Compensation shall be paid for investment losses suffered by investments  
owing to war or other armed conflict,  state of national emergency , riot or other civil strife 
(Article  7.7).  
4.54.   Article 7.19  establishes an investor -State dispute settlement mechanism which is 
summarized below (see Dispute Settlement).  
4.55.   In the event of any inconsistency between Chapter 7 (investment) and another Chapter, the 
other Chapter shall prevail to the extent of the inconsistency (Article 7.3).  
4.6  Sector specific provisions on trade in services  
4.6.1    Financial Services  
4.56.   Annex 6 -A applies to measures concerning the supply of financial servi ces. It includes a 
prudential carve -out, a provision on the recognition (achievable through harmonization or 
otherwise) of prudential measures of the other Party in determining how the Party's measures 
relating to financial services shall be applied and th e requirement, for dispute settlement panel 
members, of expertise relevant to the specific financial service under dispute. It also establishes 
contact points.16 
4.6.2    Professional services  
4.57.   Annex 6 -C covers professional services. It foresees consultations among  the Parties to 
identify professional services for which  they are mutually interested in establishing dialogue on 
issues on the recognition of professional qualifications, licensing, or registration . The Parties shall 
encourage their relevant bodies to neg otiate any form of arrangements for mutual recognition of 
professional qualifications, licensing or registration in professional services sectors of mutual 
interest and take into account other relevant multilateral agreements.  
5  GENERAL PROVISIONS OF THE AGR EEMENT  
5.1  Transparency  
5.1.  Transparency provisions are included in Chapter 9 which provides for i) publication of 
domestic laws, regulations, procedures and administrative rulings of general application relating to 
any matter covered by t he Agreement , ii) provisi on of information pertaining to any actual or 
proposed measure , iii) administrative proceedings and iv) review and appeal.  
5.2  Current payments and capital movements  
5.2.  Article s 6.15 and 7.1 1 provide that the Parties shall permit all transfers and payments 
relating to trade in services  and covered investment  in a freely usable currency at the market rate 
 
15 The lists in Annexes I and II of Indonesia include, inter alia , restrictions on acquisition or lease of 
land, registration requirements for the establishment of foreign investment and the form of foreign investment 
("Perseroan T erbatas "), a reservation for public enterprises  and other reservations specific to fishery, mining 
and quarrying, manufacturing, forestry and energy. The lists in Annexes I and II of Korea include, inter alia , a 
reservation to adopt measures to maintain pu blic order, measure s with respect to the defence industry , 
measures that accord rights or preferences to socially or economically disadvantaged groups, restrictions to 
acquisition of land, a cultural heritage reservation and other reservations specific to fishing, agriculture and 
livestock, energy, manufacturing of biological products and of liquor.  
16 The contact points are, for Indonesia, the Ministry of Trade, the Ministry of Finance, the Indonesia 
Financial Services Authority (OJK) and Bank Indonesia an d, for Korea, the Financial Services Commission and 
the Ministry of Trade, Industry and Energy.  WT/REG469/1  
 
- 32 - 
 
  of exchange prevailing at the time of transfer and without delay, into and out of their territor ies. At 
the same time, a Party may prevent or delay  a transfer or payment through the equitable, non -
discriminatory, and good faith application of its laws and regulations relating to , inter alia , 
bankruptcy, trading in securities, futures, options or derivatives, taxation or severance entitlement 
of emplo yees.  
5.3  Exceptions  
5.3.  Regarding general exceptions, Article XX of GATT 1994 and Article XIV of GATS, including 
their interpretive notes, are incorporated into and made part of the Agreement, mutatis mutandis  
(Article  11.1).  
5.4.  Article 11.2 provides for security ex ceptions and replicates the provisions in Article XXI of 
GATT 1994 and in Article XIVbis of GATS for measures related to security.  
5.5.  Nothing in the Agreement applies to taxation measures, except as provided in Article 11.3  
where any tax convention shall prev ail if there is any inconsistency with the Agreement . 
5.4  Accession and withdrawal  
5.6.  There are no provisions on accession to the Agreement.  
5.7.  Either Party may notify the other Party of its intention to terminate the Agreement in writing 
through diplomatic channels , with termination taking effect six months following receipt of the 
notification  (Article 13.6).  
5.5  Institutional framework  
5.8.  Article 12.1 establishes a Joint Committee task ed with the functions listed in Article 12.2. The 
first Joint Committee was held on 12 December in 2023 in Indonesia.  
5.9.  Article 12.4 establishes a Committee on Trade in G oods, a Committee on Trade in Services 
and Investment, a Committee on Economic Cooperation and a Committee on Customs and Trade 
Facilitation. The functions of the Committee on Trade in Goods are included in Article 2.15.   
5.10.   The Joint Committee may establish additional subsidiary bodies, including ad hoc  bodies, as 
it determines necessary to address issues arising under the Agreement and to assist with its 
implementation.17  
5.11.   In order to facilitate communications between the Parties on any trade matter covered by 
the Agreement, the Parties established the following contact points: for Korea, the Ministry of 
Trade, Industry and Energy, for Indonesia, the Ministry of Trade.  
5.6  Dispute settlement  
5.12.   Chapter 10 governs dispute settlement for matters covered under the Agre ement . Article 
10.4 provides that the complaining Party may select the dispute settlement forum, but once a 
dispute has been initiated, the forum selected shall be used to the exclusion of other fora.  
5.13.   Each Party may request, in writing, consultations to resolve differences (Article 1 0.5). 
Article 10.6 provides for good offices, conciliation or mediation.  
5.14.   Under Articles 10.7-10.11, the Agreement establishes disciplines and procedural steps 
applicable to the establishment of arbitration panels , terms of refe rence, composition of the panel, 
panel proceedings, and suspension or termination of proceedings . The interim report shall be 
issued within 90 days unless the period is extended by agreement with the Parties to up to 120 
days from following the date of est ablishment of the panel (Article 10.12). The final report is to be 
issued 30 days following the issuance of the interim report with the panel taking into consideration 
any comments received from the Parties on the interim report. If the Parties fail to agr ee on a 
 
17 No additional subsidiary body  have been established as of 20 February 2024.  WT/REG469/1  
 
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  reasonable period of time to implement the findings of the report within 45 days, either Party may 
refer the matter to the original panel (Article 10.14). Compensation or suspension of the 
application of the Agreement is authorized by Article 10.15  and shall be equivalent to the level of 
the nullification or impairment and  should ideally be in the same sector or sectors affected but  can 
cover other sectors if the Party considers it impractical or not effective to suspend application in 
the same sect ors. 
5.6.1   Investor -State Dispute Settlement (Investment)  
5.15.   Article 7.19 provides for an investor -State dispute settlement mechanism (ISDS). No claim 
may be brought under the Article for an alleged breach of Article 7.5 (MFN treatment) on the basis 
that another international agreement contains more favourable rights or obligations, in relation to : 
a measure that is designed and implemented to protect or promote public health,  an investmen t 
that has been established through illegal conduct,  and investment disputes which have occurred 
prior to the entry into force of the Agreement, or if the claim is frivolous or manifestly without 
merit, or by a natural person possessing the nationality or citizenship of a disputing Party .  
5.16.   The disputing parties shall , as far as possible , resolve the dispute through consultation and 
negotiation.  The Article also provides for mediation.  If the dispute is not resolved by consultation, 
negotiation or mediation,  it may be submitted to the courts or administrative tribunals of the 
disputing Party, provided they have jurisdiction over such claims, or to arbitration  (including ICSID 
or UNCITRAL) . Once the investor has submitted the dispute to either the courts or ad ministrative 
tribunals of the disputing Party or an arbitration mechanism, the choice of forum is final.  
5.17.   An award made by a tribunal is final and binding upon the disputing parties . If a tribunal 
makes a final award against either of the disputing parties,  it may award, separately or in 
combination only monetary damages and any applicable interest and restitution of property , in 
which case the award shall provide that the disputing Party may pay monetary damages and any 
applicable interest in lieu of restit ution. 
5.7  Relationship with other agreements concluded by the Parties  
5.18.   The Parties reaffirm their rights and obligations under the WTO Agreement and any other 
international agreement to which they are party (Article 1.4). In the event of any inconsistency 
between the Agreement and any other agreement to which both Parties are party, they shall, upon 
request, consult with each other with a view to finding a mutually satisfactory solution.  
5.19.   Table 5.1 below shows the Parties' participation in RTAs, notified and non -notified, other 
than the Agreement.  
Table 5.1 Participation in other RTAs (notified and non -notified in force), as of 26 
February  2024  
RTA Name  Entry into 
forcea Coverageb GATT/WTO Notification  
Year WTO Provision  
INDONESIA  
Mozambique - Indonesia  06-Jun-22 G 2023 GATT Art. XXIV  
EFTA - Indonesia  01-Nov-21 G & S  2022 GATT Art. XXIV & GATS Art. V  
Indonesia - Australia  05-Jul-20 G & S  2021 GATT Art. XXIV & GATS Art. V  
Chile - Indonesia  10-Aug-19 G 2020 GATT Art. XXIV  
ASEAN - Hong Kong, China  11-Jun-19 G & S  2021 GATT Art. XXIV & GATS Art. V  
Indonesia - Pakistan  01-Sep-13 G 2019 Enabling Clause  
ASEAN Free Trade Area (AFTA)  
- ATIGA  
- AFAS 
- ATISA   
17-May-10 
12-Aug-98 
05-Apr-21  
G 
S 
S  
2021 
2022  
GATT Art. XXIV  
GATS Art. V  
Not notified  
ASEAN - Republic of Korea  01-Jan-10 
01-May-09 G  
S 2010 GATT Art. XXIV, Enabling Clause  
GATS Art. V  
ASEAN - Australia - New Zealand  01-Jan-10 G & S  2010 GATT Art. XXIV & GATS Art. V  
ASEAN - India 01-Jan-10 
01-Jul-15 G  
S 2010 
2015 Enabling Clause  
GATS Art. V  WT/REG469/1  
 
- 34 - 
 
  RTA Name  Entry into 
forcea Coverageb GATT/WTO Notification  
Year WTO Provision  
ASEAN - Japan  01-Dec-08 
01-Aug-20 G 
S 2009 
2022 GATT Art. XXIV  
GATS Art. V  
Japan - Indonesia  01-Jul-08 G & S  2008 GATT Art. XXIV & GATS Art. V  
ASEAN - China  01-Jan-05 
01-Jul-07 G 
S 2005 
2008 Enabling Clause  
GATS Art. V  
Global System of Trade Preferences 
among Developing Countries 
(GSTP)  19-Apr-89 G 1989 Enabling Clause  
United Arab Emirates - Indonesia  01-Sep-23 G & S  Not notified  
Regional Comprehensive Economic 
Partnership (RCEP) Agreement  01-Jan-22 G & S  Not notified  
Developing -8 PTA  01-Sep-17 G Not notified  
REPUBLIC OF KOREA  
Republic of Korea - Cambodia  01-Dec-22 G 2023 GATT Art. XXIV  
United Kingdom - Republic of Korea  01-Jan-21 G & S  2020 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Central America  01-Oct-19 G & S  2021 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Colombia  15-Jul-16 G & S  2016 GATT Art. XXIV & GATS Art. V  
Republic of Korea - New Zealand  20-Dec-15 G & S  2015 GATT Art. XXIV & GATS Art. V  
China - Republic of Korea  20-Dec-15 G & S  2016 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Viet Nam  20-Dec-15 G & S  2016 GATT Art. XXIV & GATS Art. V  
Canada - Republic of Korea  01-Jan-15 G & S  2015 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Australia  12-Dec-14 G & S  2014 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Türkiye  01-May-13 
01-Aug-18 G  
S 2013 
2022 GATT Art. XXIV  
GATS Art. V  
Republic of Korea - United States  15-Mar-12 G & S  2012 GATT Art. XXIV & GATS Art. V  
Peru - Republic of Korea  01-Aug-11 G & S  2011 GATT Art. XXIV & GATS Art. V  
EU - Republic of Korea  01-Jul-11 G & S  2011 GATT Art. XXIV & GATS Art. V  
ASEAN - Republic of Korea  01-Jan-10 
01-May-09 G 
S 2010 GATT Art. XXIV, Enabling Clause 
GATS Art. V  
Republic of Korea - India 01-Jan-10 G & S  2010 GATT Art. XXIV, Enabling Clause & 
GATS Art. V  
EFTA - Republic of Korea  01-Sep-06 G & S  2006 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Singapore  02-Mar-06 G & S  2006 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Chile 01-Apr-04 G & S  2004 GATT Art. XXIV & GATS Art. V  
Global System of Trade Preferences 
among Developing Countries 
(GSTP)  19-Apr-89 G 1989 Enabling Clause  
Asia Pacific Trade Agreement 
(APTA)  17-Jun-76 
17-Sep-13 G 
S 1976 
2019 Enabling Clause  
GATS Art. V  
- APTA - Accession of China  01-Jan-02 G 2004 Enabling Clause  
- APTA - Accession of Mongolia  01-Jan-21 G & S  Not notified  
Protocol on Trade Negotiations 
(PTN)  11-Feb-73 G 1971 Enabling Clause  
Republic of Korea - Israel  01-Dec-22 G & S  Not notified  
Regional Comprehensive Economic 
Partnership (RCEP) Agreement  01-Jan-22 G & S  Not notified  
a Dates of the first entry into force/provisional application for at least one of the Parties.  
b G stands for trade in goods and S for trade in services.  
Source:  WTO Secretariat. Further information on these Agreements and on specific dates of entry into 
force/provisional applications may be found in the WTO Database on RTAs: http://rtais.wto.org . 
 
5.8  Government procurement  
5.20.   There are no provisions in the Agreement concerning government procurement.  
5.9  Intellectual property rights  
5.21.   There are no specific provisions on intellectual property rights except that Chapter 7 
(investment) shall be construed so a s to derogate from rights and obligations under international WT/REG469/1  
 
- 35 - 
 
  agreements in respect of protection of intellectual property rights to which the Parties are party, 
including the TRIPS Agreement and other treaties concluded under the auspices of the World 
Intellectual Property Organization.  
5.22.   Article 8.2 includes intellectual property as a sector for cooperation.  
5.10  Competition  
5.23.   There are no provisions in the Agreement concerning competition .  
5.11  Environment  
5.24.   Article 7.16 recognizes that environmental laws should not be relaxed for investment 
purposes.   
5.12  Labour  
5.25.   There are no provisions in the Agreement concerning labour .  
5.13  Electronic commerce  
5.26.   There are no provisions in the Agreement concerning electronic commerce .  
5.14  Small and medium -sized enterprises  
5.27.   Article 8.2 lists a number of areas of cooperation including supporting policy for s mall and 
medium -sized enterprises .  
5.15  Gender  
5.28.   There are no provisions in the Agreement concerning gender . 
5.16  Economic cooperation  
5.29.   Chapter 8 provides a list of areas in which the Parties could cooper ate including individual 
sectors, but also on issues such as SPS, TBT, customs procedures, rules of origin, intellectual 
property rights, SMEs, and fair competition. A Committee on Economic Cooperation is to ensure 
the effective implementation and operatio n of the Chapter which is not subject to dispute 
settlement under the Agreement.   WT/REG469/1  
 
- 36 - 
 
  ANNEX 1  
1. A comparison between the scheduled elimination of tariffs applied to the Parties' mutual 
imports and the dut ies applied by them on MFN imports in 2023 is shown in Table A1. 1 and Error! 
Reference source not found. , by HS Chapters 1 -24 (agricultural products), 25 -97 (industrial 
products) and total products.  
2. Indonesia 's overall average applied MFN tariff rate in 202 3 was 10.2%. The average MFN 
applied tariff on agricultural goods was 10.1% and the average MFN applied tariff on industrial 
goods was 10.3 %. With the entry into force of the Agreement , the overall average tariff for 
imports from Korea fell to 2.9%, while the average tariff for agricu ltural and industrial products 
was respectively 5% and 2.5%. As a result, exporters from Korea had a relative margin of 
preference of 72% overall, and 51% and 76% respectively for agricultural and industrial products. 
The share of MFN d uty-free tariff line s was 11.8 % overall , 6.7% for agricultural products and 
12.8% for industrial products. Under the Agreement, the share of duty -free tariff lines overall in 
2023 was 85 .9% (78.2% for agricultural products and 87.4% for industrial products). By the end 
of imp lementation in 20 42, Korean exporters will face zero duties on 91.5% of Indonesia 's tariff 
lines ( 85.8% for agricultural products and 92.6% for industrial products).  
Table A1. 1 Indonesia : Indicators of MFN and preferential rates  for imports from Korea  
Origin of 
goods  Year ALL PRODUCTS  HS Chapters 01 -24 HS Chapters 25 -97 
Average 
applied tariff  Share 
of duty -
free 
tariff 
lines 
(%) Average 
applied tariff  Share 
of duty -
free 
tariff 
lines 
(%) Average 
applied tariff  
Share of 
duty-free 
tariff lines 
(%) Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
Overall (%)  
On dutiable 
(%) 
MFN 2023 10.2 11.6 11.8 10.1 10.8 6.7 10.3 11.8 12.8 
Korea  2023 2.9 20.6 85.9 5.0 24.3 78.2 2.5 19.5 87.4 
 2024 2.8 20.3 85.9 5.0 24.1 78.2 2.4 19.1 87.4 
 2025 2.8 20.4 86.2 5.0 24.0 78.3 2.4 19.2 87.7 
 2026 2.7 20.1 86.2 4.9 23.8 78.3 2.3 18.9 87.7 
 2027 2.7 20.8 86.8 4.9 23.7 78.4 2.3 19.8 88.4 
 2028 2.7 20.5 86.8 4.8 23.5 78.4 2.3 19.5 88.4 
 2029 2.6 21.6 87.6 4.8 24.4 79.2 2.2 20.7 89.2 
 2030 2.6 21.4 87.6 4.8 24.3 79.2 2.2 20.5 89.2 
 2031 2.6 21.3 87.6 4.8 24.1 79.2 2.2 20.3 89.2 
 2032 2.6 27.2 90.3 4.7 29.2 82.7 2.2 26.5 91.8 
 2033 2.6 27.2 90.3 4.7 29.2 82.7 2.2 26.4 91.8 
 2034 2.6 27.1 90.3 4.7 29.1 82.7 2.2 26.4 91.8 
 2035 2.6 27.0 90.3 4.7 29.1 82.7 2.2 26.3 91.8 
 2036 2.6 27.0 90.3 4.7 29.0 82.7 2.2 26.2 91.8 
 2037 2.5 30.1 91.3 4.7 32.4 84.4 2.1 29.2 92.6 
 2038 2.5 30.1 91.3 4.7 32.4 84.4 2.1 29.2 92.6 
 2039 2.5 30.1 91.3 4.7 32.3 84.4 2.1 29.2 92.6 
 2040 2.5 30.0 91.3 4.7 32.3 84.4 2.1 29.2 92.6 
 2041 2.5 30.0 91.3 4.7 32.3 84.4 2.1 29.2 92.6 
 2042 2.5 30.8 91.5 4.7 35.5 85.8 2.1 29.2 92.6 
Note:   Based on the HS 20 22 nomenclature.  
Source:  WTO estimates based on the data provided by the Indonesia authorities.  
3. Korea's overall average applied MFN tariff rate in 2023 was 14.5%. The average MFN 
applied tariff on agricultural goods was 51.9% and the average MFN applied tariff on industrial 
goods was 6%. With the entry into force of the Agreeme nt, the overall average tariff for imports 
from Indonesia fell to 7.5%, while the average tariff for agricultural and industrial products was 
respectively 37.8% and 0.6%. As a result, exporters from Korea had a relative margin of 
preference of 48% overall,  and 27% and 90% respectively for agricultural and industrial products. 
The share of MFN duty -free tariff lines was 19.8% overall, 2.5% for agricultural products and 
23.8% for industrial products. Under the Agreement, the share of duty -free tariff lines ov erall in WT/REG469/1  
 
- 37 - 
 
  2023 was 91.4% (65.1% for agricultural products and 97.3% for industrial products). By the end 
of implementation in 2042, Indonesian exporters will face zero duties on 95% of Korea's tariff lines 
(77.3% for agricultural products and 99.1% for indu strial products).  
Table A1. 2 Korea: Indicators of MFN and preferential rates for imports from Indonesia  
Origin of 
goods  Year ALL PRODUCTS  HS Chapters 01 -24 HS Chapters 25 -97 
Average 
applied tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied 
tariff  Share 
of 
duty-
free 
tariff 
lines 
(%) Average 
applied tariff  Share of 
duty-
free 
tariff 
lines 
(%) Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
Overall 
(%) 
On 
dutiable 
(%) 
MFN 2023 14.5 18.1 19.8 51.9 53.3 2.5 6.0 7.9 23.8 
Indonesia  2023 7.5 86.6 91.4 37.8 108.5  65.1 0.6 21.5 97.3 
 2024 7.4 86.1 91.4 37.7 108.0  65.1 0.6 20.8 97.3 
 2025 7.4 94.6 92.2 37.5 109.0  65.6 0.5 30.5 98.2 
 2026 7.4 94.2 92.2 37.3 108.5  65.6 0.5 30.2 98.2 
 2027 7.3 99.5 92.6 37.2 115.8  67.9 0.5 30.5 98.3 
 2028 7.3 99.1 92.6 37.0 115.4  67.9 0.5 30.3 98.3 
 2029 7.3 99.9 92.7 36.9 116.3  68.3 0.5 30.4 98.3 
 2030 7.2 99.5 92.7 36.8 115.9  68.3 0.5 30.2 98.3 
 2031 7.2 99.1 92.7 36.6 115.5  68.3 0.5 30.0 98.3 
 2032 7.2 136.2  94.7 36.5 150.1  75.7 0.5 54.3 99.1 
 2033 7.2 136.1  94.7 36.5 150.0  75.7 0.5 54.3 99.1 
 2034 7.2 136.0  94.7 36.4 149.8  75.7 0.5 54.2 99.1 
 2035 7.2 135.9  94.7 36.4 149.7  75.7 0.5 54.2 99.1 
 2036 7.2 135.8  94.7 36.4 149.6  75.7 0.5 54.2 99.1 
 2037 7.1 140.2  94.9 36.3 154.9  76.6 0.5 54.9 99.1 
 2038 7.1 140.1  94.9 36.3 154.9  76.6 0.5 54.9 99.1 
 2039 7.1 140.0  94.9 36.3 154.8  76.6 0.5 54.9 99.1 
 2040 7.1 140.0  94.9 36.3 154.7  76.6 0.5 54.9 99.1 
 2041 7.1 139.9  94.9 36.3 154.6  76.6 0.5 54.9 99.1 
 2042 7.1 143.8  95.0 36.2 159.8  77.3 0.5 54.9 99.1 
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem  parts of 
alternate rates are included.  
 Based on the HS 2022 nomenclature.  
Source:  WTO estimates based on the data provided by the Korean authorities.  
 
4. Table A1. 3 shows the market access opportunities in Indonesia for Korea 's top 25 exports, 
which , in 2020-2022, accounted for 46.4% of Korea 's global exports and covered 283 lines. 82 of 
those lines were  already duty free on an MFN basis in  2023 while 126 lines became duty free in 
2023, while 2 will be duty free in 2027 and 14 in 2032. At the end of implementation, 59 lines will 
remain dutiable under the Agreement  relating to motor vehicles and petroleum,  whose applied 
MFN tariff in 2023 ranged from 1.5% for petroleum to 40.6% . 
Table A1. 3 Indonesia: Market access opportunities under the agreement for Korea's top 
25 exports to the world  
Korea's top export products  
in 2020 - 2022  Access Conditions to Indonesia's import 
markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2023  Duty -free lines 
under the 
Agreement  
Remain 
Dutiable  Average 
Tariff (%)  Number of 
lines  duty-
free  
duti-
able 
2023  
2027  
2032  
854232  Electronic integrated circuits as 
memories  10.0 0.0 1      
854231  Electronic integrated circuits as 
processors and controllers, whether or 
not combined with memories, 5.0 0.0 1      WT/REG469/1  
 
- 38 - 
 
  Korea's top export products  
in 2020 - 2022  Access Conditions to Indonesia's import 
markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2023  Duty -free lines 
under the 
Agreement  
Remain 
Dutiable  Average 
Tariff (%)  Number of 
lines  duty-
free  
duti-
able 
2023  
2027  
2032  
converters, logic circuits, amplifiers, 
clock and timing circuits, or other 
circuits  
271019  Medium oils and preparations, of 
petroleum or bituminous minerals, not 
containing biodiesel, n.e.s.  4.9 1.5 12 5 1 2  2 
870323  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons, incl. station wagons 
and racing cars, with only spark -
ignition internal combustion 
reciprocating piston engine of a 
cylinder capacity > 1.500 cm³ but <= 
3.000 cm³  2.7 36.1  36 18  2 16 
847330  Parts and accessories of automatic 
data-processing machines or for other 
machines of heading 8471, n.e.s.  2.2 0.0 2      
852351  Solid-state, non -volatile data storage 
devices for recording data from an 
external source [flash memory cards or 
flash electronic storage cards]  2.0 2.9 5 3 3    
271012  Light oils and preparations, of 
petroleum or bituminous minerals 
which >= 90% by volume "incl. losses" 
distil at 210°c "astm d 86 method"  1.7 0.0 22      
890120  Tankers  1.6 0.0 5      
854239  Electronic integrated circuits  1.5 0.0 1      
870899  Parts and accessories, for tractors, 
motor vehicles for the transport of ten 
or more persons, motor cars and other 
motor vehicles principally designed for 
the transport of persons, motor 
vehicles for the transport of goods and 
special purpose motor vehicle s, n.e.s.  1.4 10.0  15 15    
852990  Parts suitable for use solely or 
principally with flat panel display 
modules, transmission and reception 
apparatus for radio -broadcasting or 
television, television cameras,  digital 
cameras, video camera recorders, 
radar apparatus, radio navigational aid 
apparatus or radio remote control 
apparatus, monitors and projectors, 
n.e.s.  1.2 0.0 11      
890190  Vessels for the transport of goods and 
vessels for the transport of both 
persons and goods  1.1 2.0 6 4 4    
330499  Beauty or make -up preparations and 
preparations for the care of the skin 
(other than medicaments), incl. 
sunscreen or suntan preparations  1.0 15.0  3 3    
284190  Salts of oxometallic or peroxometallic 
acids  1.0 5.0  1 1    
850760  Lithium -ion accumulators  1.0 10.0  5 5    
870380  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons, incl. station wagons 
and racing cars, with only electric 
motor for propulsion  1.0 34.4  18 11  2 5 WT/REG469/1  
 
- 39 - 
 
  Korea's top export products  
in 2020 - 2022  Access Conditions to Indonesia's import 
markets  
HS number and description of the product  
Share in global 
exports (%)  MFN 2023  Duty -free lines 
under the 
Agreement  
Remain 
Dutiable  Average 
Tariff (%)  Number of 
lines  duty-
free  
duti-
able 
2023  
2027  
2032  
851779  Parts of telephone sets, telephones for 
cellular networks or for other wireless 
networks and of other apparatus for 
the transmission or reception of voice, 
images or other data, n.e.s.  0.9 0.0 9      
853400  Printed circuits  0.9 0.0 4      
870322  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons, incl. station wagons 
and racing cars, with only spark -
ignition internal combustion 
reciprocating piston engine of a 
cylinder capacity > 1.000 cm³ but <= 
1.500 cm³  0.9 30.0  20 10  3 7 
870324  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons, incl. station wagons 
and racing cars, with only spark -
ignition internal combustion 
reciprocating piston engine of a 
cylinder capacity > 3.000 cm³  0.9 40.0  18 18    
852412  Flat panel display modules, whether or 
not incorporating touch -sensitive 
screens, without drivers or control 
circuits, of organic light -emitting 
diodes "oled"  0.8 0.0 1      
851771  Aerials and aerial reflectors of all 
kinds, of telephone sets, telephones 
for cellular networks or for other 
wireless networks and of other 
apparatus for the transmission or 
reception of voice, images or other 
data; parts suitable for use therewith  0.8 0.0 1      
290243  p-xylene  0.8 0.0 1      
870340  Motor cars and other motor vehicles 
principally designed for the transport 
of <10 persons, incl. station wagons 
and racing cars, with both spark -
ignition internal combustion 
reciprocating piston engine and electric 
motor as motors for propulsion  0.7 40.6  68 32  7 29 
847989  Machines and mechanical appliances, 
n.e.s.  0.6 5.0  5 5    
 Total of above  46.4  82 201 126 2 14 59 
Note:  Based on the HS 2022 nomenclature.  
Source:  WTO estimates based on the data provided by the Indonesian authorities and UNSD, Comtrade 
database.  
 
5. Table A1. 4 shows the market access opportunities in Korea  for Indonesia 's top 25 exports, 
which , in 2020 -2022, accounted for 49.9% of Indonesia 's global exports and covered 96 lines. 16 
of those lines were already duty free on an MFN basis in 2023 while 73 lines became duty free in 
2023, and 7 will be duty free in 2032. At the end of implementation, no lines will remain dutiable 
under the Agreement.  WT/REG469/1  
 
- 40 - 
 
  Table A1. 4 Korea: Market access opportunities under the agreement for Indonesia's top 
25 exports to the world  
Indonesia's top export products  
in 2020 - 2022  Access Conditions to Korea's import 
markets  
HS number and description of the product  
Share in global 
exports  (%) MFN 2023  Duty -free 
lines under 
the 
Agreement  
Remain 
Dutiable  Average 
Tariff (%)  Number 
of lines  duty-
free  
duti-
able 
2023  2032  
270119  Coal, whether or not pulverised, non -
agglomerated  9.5 0.0 1     
151190  Palm oil and its fractions, whether or not 
refined  8.9 2.0  3 3   
720260  Ferro-nickel  3.7 3.0  1 1   
270112  Bituminous coal, whether or not pulverised, 
non-agglomerated  3.2 0.0 4     
260300  Copper ores and concentrates  2.5 0.0 1     
271111  Natural gas, liquefied  2.2 3.0  1 1   
270210  Lignite, whether or not pulverised, non -
agglomerated  2.1 1.0  1 1   
151110  Crude palm oil  1.6 3.0  1 1   
400122  Technically specified natural rubber "tsnr"  1.5 0.0 1     
382319  Fatty acids, industrial, monocarboxylic; acid oils 
from refining  1.2 8.0  3 2 1  
710812  Gold, incl. gold plated with platinum, 
unwrought, for non -monetary purposes  1.2 3.0  2 2   
271121  Natural gas in gaseous state  1.1 3.0  1 1   
711319  Articles of jewellery and parts thereof, of 
precious metal other than silver, whether or not 
plated or clad with precious metal  1.1 8.0  3 3   
470329  Semi-bleached or bleached non -coniferous 
chemical wood pulp, soda or sulphate  1.1 0.0 2     
640411  Sports footwear, incl. tennis shoes, basketball 
shoes, gym shoes, training shoes and the like, 
with outer soles of rubber or plastics and 
uppers of textile materials  1.0 13.0  1 1   
721899  Semi-finished products of stainless steel  1.0 0.0 3     
800110  Unwrought tin, not alloyed  0.9 2.0  1 1   
640319  Sports footwear, with outer soles of rubber, 
plastics, leather or composition leather and 
uppers of leather  0.9 13.0  1 1   
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  0.8 3.0  10 10   
721913  Flat-rolled products of stainless steel, of a width 
of >= 600 mm, not further worked than hot -
rolled, in coils, of a thickness of >= 3 mm and 
< 4,75 mm  0.8 0.0 3     
750110  Nickel mattes  0.8 0.0 1     
870323  Motor cars and other motor vehicles principally 
designed for the transport of <10 persons, incl. 
station wagons and racing cars, with only 
spark -ignition internal combustion reciprocating 
piston engine of a cylinder capacity > 1.500 
cm³ but <= 3.000 cm³  0.8 8.0  4 4   
870322  Motor cars and other motor vehicles principally 
designed for the transport of <10 persons, incl. 
station wagons and racing cars, with only 
spark -ignition internal combustion reciprocating 
piston engine of a cylinder capacity > 1.000 
cm³ but <= 1.500 cm³  0.7 8.0  2 2   
271019  Medium oils and preparations, of petroleum or 
bituminous minerals, not containing biodiesel, 
n.e.s.  0.7 6.4  42 36 6  WT/REG469/1  
 
- 41 - 
 
  Indonesia's top export products  
in 2020 - 2022  Access Conditions to Korea's import 
markets  
HS number and description of the product  
Share in global 
exports  (%) MFN 2023  Duty -free 
lines under 
the 
Agreement  
Remain 
Dutiable  Average 
Tariff (%)  Number 
of lines  duty-
free  
duti-
able 
2023  2032  
151329  Palm kernel and babassu oil and their fractions, 
whether or not refined, but not chemically 
modified  0.7 7.0  3 3   
 Total of above  49.9  16 80 73 7 0 
Note:  Based on the HS 2022 nomenclature.  
Source:  WTO estimates based on the data provided by the Korean authorities and UNSD, Comtrade 
database.  
 
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