WT/REG446/1  
 
23 August 2021  
(21-6376) Page: 1/42 
Committee on Regional Trade Agreements   
 
FACTUAL PRESENTATION  
COMPREHENSIVE ECONOMIC PARTNERSHIP AGREEMENT BETWEEN INDONESIA AND AUSTRALIA 
(GOODS AND SERVICES)  
 Report by the Secretariat   
 This report, prepared for the consideration of the  Comprehensive Economic Partnership 
Agreement between Indonesia and Australia, goods and services, 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 and 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 
Maria  Donner  Abreu (tel: +41 22 739 5244). Any statistical questions arising from this 
report may be addressed Thakur Parajuli (tel: +41 22 739 5 473). 
 
 
 
  WT/REG446/1  
 
- 2 - 
 
  Table of Contents  
Page 
1  TRADE ENVIRONMENT  ................................ ................................ ................................ . 4 
1.1  Merchandise trade  ................................ ................................ ................................ ........  4 
1.2  Trade in services and investment  ................................ ................................ ...................  6 
2  CHARACTERISTIC ELEMEN TS OF THE AGREEMENT  ................................ .......................  8 
2.1  Background information  ................................ ................................ ................................  8 
3  PROVISIONS ON TRADE IN GOODS  ................................ ................................ ..............  9 
3.1  Import duties and charges, and quantitative restrictions  ................................ ...................  9 
3.1.1   General provisions  ................................ ................................ ................................ ..... 9 
3.1.2   Liberalization of trade and tariff lines  ................................ ................................ .........  10 
3.1.3   Liberalization schedule  ................................ ................................ .............................  11 
3.1.3.1  Australia  ................................ ................................ ................................ ..............  11 
3.1.3.2   Indonesia  ................................ ................................ ................................ .............  12 
3.1.4   Tariff rate quotas  ................................ ................................ ................................ ..... 14 
3.2  Rules of origin  ................................ ................................ ................................ ............  14 
3.3  Export duties and charges, and quantitative restrictions  ................................ ..................  15 
3.4  Regulatory provisions on trade in goods  ................................ ................................ ........  15 
3.4.1   Standards  ................................ ................................ ................................ ...............  15 
3.4.1.1   Sanitary an d phytosanitary measures  ................................ ................................ ...... 15 
3.4.1.2   Technical barriers to trade  ................................ ................................ .....................  16 
3.4.2   Safeguard mechanisms  ................................ ................................ ............................  16 
3.4.2.1   Global safeguards  ................................ ................................ ................................ . 16 
3.4.2.2   Bilateral safeguards ................................ ................................ ...............................  17 
3.4.3   Anti-dumping and countervailing measures  ................................ ................................ . 17 
3.4.4   Subsidies and state -aid ................................ ................................ ............................  17 
3.4.5   Customs -related procedures and trade facilitation  ................................ ........................  17 
3.4.6   Other regulat ions ................................ ................................ ................................ ..... 18 
3.5  Sector -specific provisions on trade in goods  ................................ ................................ ... 18 
4  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  ................................ ..........  18 
4.1  Scope and definitions  ................................ ................................ ................................ .. 18 
4.2  Denial of benefits  ................................ ................................ ................................ ....... 19 
4.3  General provisions on trade in services and investment  ................................ ...................  19 
4.3.1   Market access  ................................ ................................ ................................ .........  19 
4.3.2   National treatment and MFN ................................ ................................ ......................  20 
4.3.3   Commercial presence  ................................ ................................ ...............................  20 
4.3.4   Performance requirements  ................................ ................................ ........................  20 
4.3.5   Senior Management and Boards of Directors  ................................ ...............................  20 
4.3.6   Movement of natural persons  ................................ ................................ ....................  21 
4.3.7   Other measures on Investment  ................................ ................................ .................  22 WT/REG446/1  
 
- 3 - 
 
  4.4  Liberalization commitments on services and investment  ................................ ..................  22 
4.4.1   Australia  ................................ ................................ ................................ .................  23 
4.4.2   Indonesia  ................................ ................................ ................................ ...............  26 
4.5  Regulatory provisions  ................................ ................................ ................................ .. 31 
4.5.1   Domestic regulation  ................................ ................................ ................................ . 31 
4.5.2   Recognition  ................................ ................................ ................................ .............  31 
4.5.3   Subsidies  ................................ ................................ ................................ ................  31 
4.5.4   Safeguards  ................................ ................................ ................................ .............  31 
4.5.5   Other  ................................ ................................ ................................ .....................  32 
4.6  Sector specific provisions on trade in services  ................................ ................................  32 
4.6.1   Financial services  ................................ ................................ ................................ ..... 32 
4.6.2   Telecommunications  ................................ ................................ ................................ . 32 
5  GENERAL PROVISIONS OF THE AGREEMENT  ................................ ..............................  33 
5.1  Transparency  ................................ ................................ ................................ .............  33 
5.2  Current payments and capital movements  ................................ ................................ ..... 33 
5.3  Exceptions  ................................ ................................ ................................ .................  33 
5.3.1   General exceptions  ................................ ................................ ................................ .. 33 
5.3.2   Security exceptions  ................................ ................................ ................................ .. 34 
5.3.3   Balance -of-payments safeguard provisions  ................................ ................................ . 34 
5.4  Accession and withdrawal  ................................ ................................ ............................  34 
5.5  Institutional framework  ................................ ................................ ...............................  34 
5.6  Dispute settlement  ................................ ................................ ................................ ..... 34 
5.7  Relationship with other agreements concluded by the parties  ................................ ...........  35 
5.8  Government procurement  ................................ ................................ ............................  37 
5.9  Intellectual property r ights ................................ ................................ ..........................  37 
5.10  Competition  ................................ ................................ ................................ .............  37 
5.11  Environment  ................................ ................................ ................................ ............  37 
5.12  Labour  ................................ ................................ ................................ ....................  37 
5.13  Electronic commerce  ................................ ................................ ................................ . 37 
5.14  Small and medium -sized enterprises  ................................ ................................ ...........  38 
5.15  Cooperation  ................................ ................................ ................................ .............  38 
ANNEX 1  ................................ ................................ ................................ ........................  39 
ANNEX 2  ................................ ................................ ................................ ........................  42 
 
  WT/REG446/1  
 
- 4 - 
 
   
 
Key Facts  
 
Parties to the Agreement:  Australia and Indonesia  
 
Date of Signature:    4 March 2019  
 
Date of Entry into Force:  5 July 2020  
 
Date of Notification:   27 January 2021  
 
Full implementation:   2040 
 
1  TRADE ENVIRONMENT  
1.1  Merchandise trade  
1.1.  In 2019, the GDP of Australia totalled USD 1,396.6  billion and that of Indonesia USD 1,119.2  
billion.1 
1.2.  World trade ranking s2 place Australia  as 24th and 21st largest importer and export er (including 
intra-EU trade) and Indonesia the 30th and 32nd largest importer and exporter in 2019 . In 2018 
imports of both Parties were dominated by manufacturing (around 73% for Australia and 65% for 
Indonesia ); manufacturing also account ed for the majority of Indonesia's exports (43%) while the 
top exports of Australia were fuels and mining products ( 66%). In 2019, Indonesia  was Australia 's 
13th largest export market and 12th supplier of imports. In turn, Australia ranked 14th in terms of 
export  market  for Indonesia and 9th for origin of imports.  
Chart 1.1 Australia and Indonesia: Merchandise bilateral trade and with world (2012 -19) 
 
Source:  UNSD Comtrade database.  
 
1.3.  Chart 1.1 presents the trends in global and intra -Party merchandise trade between 2012 and 
2019. Over the period Australia maintained a global  trade surplus except in 2015. Indonesia 
maintained an overall balance in its global trade until 2014  followed by  periods of trade surplus 
 
1 Statistics in this Section are from the WTO Trade Profiles (2020) and the WTO Statistics Database. 
GDP data, sourced from the World Bank, are given in current prices. Data in merchandise trade charts are from 
Comtrade.  
2 Global ranking includes intra -EU trade; bilateral ranking aggregates EU(28) (member States in 2019).  
024681012
050100150200250300
2012 2013 2014 2015 2016 2017 2018 2019Indonesia
Imports from Australia (Right Axis)
Export to Australia (Right Axis)
Total Imports
Total Exports
024681012
050100150200250300
2012 2013 2014 2015 2016 2017 2018 2019Australia  
Imports from Indonesia (Right Axis)
Export to Indonesia (Right Axis)
Total Imports
Total ExportsWT/REG446/1  
 
- 5 - 
 
  (2015 -2017) and trade deficit (2018 -2019). Figures on bilateral trade show a trade surplus in favour 
of Australia as from 2016; prior to that, the picture differs: data from Australia shows a trade deficit 
for Australia, but the opposite is shown using data from Indonesia.3 
1.4.  Chart 1.2 shows merchandise trade between the Parties and with the world by broad HS Section  
during the period 2017 -2019. Out of the three  main exports of Indonesia (accounting for 44% of its 
exports), two – minerals and machinery - were Australia's main imports from Indonesia (accounting 
for 41% of the bilateral imports) . Similarly, out of Australia' s top three exports – minerals, animal 
products and pearls, accounting for 59% of its exports, the first two categories correspond to 
Indonesia's main imports from Australia, totalling 49% of the bila teral imports.  
Chart 1.2 Australia -Indonesia:  Product composition of merchandise trade, annual 
average (2017 -2019)  
 
Source:  UNSD Comtrade database.  
 
3 Australia indicates that its merchandise import and export statistics are compiled on an international 
merchandise trade basis. Indonesia indicates that  the statistical discrepancy might be due to conceptual and 
methodological differences in the collection and processing of trade data, e.g. timing of recording, territory 
definitions such as free trade zones, and the inclusion of re -exports or transit in e xport statistics.  
31
10
10 7775433328Australia's imports from Indonesia (%)
24
16
138544444312Australia's Global Imports (%)
47
6644332222Australia's Global Exports (%)
31
18
1511765224Indonesia's imports from Australia 
(%)
26
16
1110665542225Indonesia's Global Imports (%)24
12
8
77755443322222Indonesia's Global Exports (%)
Total: USD 3.6 billion Total: USD 228.6 billion
Total: USD 172.3 billionTotal: USD 172.2 billion
Total:  USD 249.8 billion Total: USD 5.8 billion
WT/REG446/1  
 
- 6 - 
 
  1.2  Trade in services and investment  
1.5.  In 2019 Australia ranked 14th in the world for exports and imports of commercial services 
(excluding intra -EU trade)  while Indonesia ranked 24th for exports and 21st for imports.  
1.6.  Chart 1.3 shows Australia's global  and bilateral trade in commercial services during 2012-2019. 
Throughout  this period , it has had a deficit in its  services trade  globally and with Indonesia . In 2019 
Australia's  total exports of commercial services reached USD 6 70.1 billion and imports USD 70.6 
billion.  The main sector for both exports and imports was travel s ervices, followed by transport for 
imports and business services for exports.  
Chart 1.3 Australia: Trade in commercial services with world and Indonesia (2012 -2019)  
 
 
Source:  Australia's trade with world and Indonesia for 2017-2019 was provided by Australia . Other data from 
WTO Statistics database, based on BPM6.  
1.7.  Chart 1.4 presents  Indonesi a's trade in commercial services with the world during 2012 -2019; 
bilateral trade data is not available. Indonesia has run a services trade deficit for the period. In 2019 
its total exports of commercial services reached USD 30.9 billion and imports USD 39.3 billion. The 
2012 2013 2014 2015 2016 2017 2018 2019Imports
01020304050607080
2012 2013 2014 2015 2016 2017 2018 2019Exports 
2012 2013 2014 2015 2016 2017 2018 2019Imports 
0.00.40.81.21.62.02.42.83.2
2012 2013 2014 2015 2016 2017 2018 2019Exports Australia's trade with the world (USD billion)
Australia's trade with Indonesia (USD billion)WT/REG446/1  
 
- 7 - 
 
  main sectors of export  were travel and business services, while for imports transport and travel 
services  led the ranking . 
Chart 1.4 Indonesia: Trade in commercial services with world (2012 -2019) 
 
Source:  WTO Statistics database based on BPM6.  
1.8.  Chart 1.5 depicts Australia's foreign direct investment (FDI ) with the world (2012 -2019) and 
with Indonesia (partial data for 2017 -2019). Despite the fluctuation of annual inward flow s of FDI, 
Australia was a net recipient  in terms of both stocks and flows over th e period , with a differential of 
around 20% in terms  of inward and outward stock of FDI . Partial data on FDI with Indonesia shows 
Australia as a net FDI investor, and low levels of investments from Indonesia. In 2019, Indonesia's 
stock of FDI in Australia  was USD 11.8 million , compared to Australia's  stock of USD 2,465.1  million  
in Indonesia . 
Chart 1.5 Australia: FDI stock and flow with world  and Indonesia , 2012 -2019  
 
Note:  For FDI with Indonesia, no data available for FDI's inward stock 2017 -2018 nor for flow 2017 and 
2019; nor for outward flow of FDI, 2018.  
Source:  FDI with the world, UNCTAD; FDI with Indonesia, data from Australia.  
1.9.  Chart 1.6 shows Indonesia's FDI with the world (2012 -2019) and with Australia  (partial data 
for 2017 -2019). Indonesia  was a net recipient in terms of both stocks and flows over that period . 
The differential between inward and outward stock of FDI  decreased consistently during the period, 
2012 2013 2014 2015 2016 2017 2018 2019Imports 
0510152025303540
2012 2013 2014 2015 2016 2017 2018 2019Exports 
Indonesia's trade with world (USD billion)
0100200300400500600700800
2012 2013 2014 2015 2016 2017 2018 2019Stock  
-20-1001020304050607080
2012 2013 2014 2015 2016 2017 2018 2019Flow 
Inward
OutwardFDI with world (USD billion)
02,0004,0006,0008,000
2017 2018 2019StockFDI with Indonesia  (USD million)
0100200300
2017 2018 2019Flow WT/REG446/1  
 
- 8 - 
 
  being at around 66% in 2019 . FDI flows were constant during  the period except for a drop in 2016. 
Partial data shows that inward FDI flow s from Australia  in 2019 w ere around one -third smaller than 
that in 2017. 
Chart 1.6 Indonesia: FDI stock and flow with world  and Au stralia , 2012 -2019  
 
Note:  For FDI with Australia, no data available for stock of FDI nor for outward flow of FDI.  
Source:  FDI with the world, UNCTAD; FDI with Australia, data from Indonesia.  
2  CHARACTERISTIC ELEMENTS OF THE AGREEMENT  
2.1  Background information  
2.1.  The Indonesia -Australia Comprehensive Economic Partnership Agreement (IA -CEPA, hereafter 
the "Agreement") was signed on 4 March 2019 . The Agreement was notified to the WTO jointly by 
its Parties on 27 January 2021, under Article XXIV:7(a) of th e GATT 1994 for its goods aspects, and 
Article V of the GATS for its services aspects (WT/REG446/N/1 -S/C/N/1040). The Parties state d that 
the Agreement "establishes a free trade area consistent with Article XXIV of GATT 1994 and Article   V 
of GATS." The te xt of the Agreement is available at:  
https://www.dfat.gov.au/trade/agreements/in -force/iacepa/iacepa -text/Pages/default  (Australia ) 
http://ditjenppi.kemendag.go.id/index.php/bilateral/asia -tenggara -dan-pasifik/australia  
(Indonesia)  
 
2.2.  The Agreement contains 21 Chapters and four Annexes – on tariff schedules, rules of origin 
and services and investment. The Agreement has also associated instruments  – namely side letters 
or Memorand a of Understandings  (MoUs). Box 2.1 provides the structur e of the Agreement.  
Box 2.1 Indonesia -Australia Comprehensive Economic Partnership Agreement  
 Preamble  
Chapter 1  Initial Provisions and General Definitions  
Chapter 2  Trade in Goods  
Chapter 3  Non-Tariff Measures  
Chapter 4  Rules of Origin  
Chapter 5  Customs Procedures  
Chapter 6  Trade Facilitation  
Chapter 7  Sanitary and Phytosanitary Measures  
050100150200250300
2012 2013 2014 2015 2016 2017 2018 2019FDI stock with world
(USD billion ) 
Inward
Outward-15-10-5051015202530
2012 2013 2014 2015 2016 2017 2018 2019FDI flow with world
(USD billion) 
0150300450600750
2017 2018 2019FDI flow with Australia (USD million) WT/REG446/1  
 
- 9 - 
 
  Chapter 8  Technical Barriers to Trade  
Chapter 9  Trade in Services  
Chapter 10  Financial Services  
Chapter 11  Telecommunications  
Chapter 12  Movement of Natural Persons  
Chapter 13  Electronic Commerce  
Chapter 14  Investment  
Chapter 15  Economic Cooperation  
Chapter 16  Competition  
Chapter 17  General Provisions and Exceptions  
Chapter 18  Institutional Provisions  
Chapter 19  Transparency  
Chapter 20  Consultations and Dispute Settlement  
Chapter 21  Final Provisions  
Annexes   
Annex 2 -A: Australia's and Indonesia's Tariff Schedules  
Appendix 2 -A.1: Tariff Rate Quotas  
Annex 4 -C: Product -Specific Rules of Origin  
Annex I  (Services and Investment) Australia's and Indonesia's Schedules to Annex I  
Annex II  (Services and Investment): Australia's and Indonesia's Schedules to Annex II  
Associated documents  
 Side Letter on Technical and Vocational Education and Training  
 Side Letter on Economic Cooperation, and its Attachment  
 Side Letter on Work and Holiday Visas  
 Side Letter on Mutual Recognition of Professional Engineers  
 Side Letter on Improving Health Professional Stand ards and Access to Health Services  
 Memorandum of Understanding on the Indonesia -Australia Skills Development Exchange Pilot Project  
 Memorandum of Understanding on a Pilot Workplace -Based Training Visa Arrangement  
 
2.3.  A general review of the Agreement will be undertaken in 2025 (and every five years thereafter) 
with a view to updating and enhancing the Agreement and to further its objectives, through 
negotiations, as appropriate (Article 21.5) . 
3  PROVISIONS ON TRADE IN GOODS  
3.1  Import duties and charges, and quantitative restrictions  
3.1.1   General provisions  
3.1.  Customs duties are reduced or eliminated in accordance with the Parties' Schedules of tariff 
commitments (Annex 2 -A) within a maximum transition period of 2 0 years for Indonesia; no 
transition perio d applies to Australia . The initial tariff reduction was implemented upon entry into 
force on 5 July 2020 ; due to  the Agreement's catch -up mechanism, at that date Indonesia 
implemented three tariff reductions ( those  originally scheduled for 1 January 2018 -2019-2020). 
However, the catch -up mechanism does not apply to tariff -rate quotas (TRQs) .4 From 2021, 
reductions will take place  on 1 January  of each year , with  the last reduction being implemented on 
1 January 20 40. 
 
4 The catch -up mechanism is provided for on paragraph 4 of the General Notes in Annex 2 -A. In 
accordance with paragraph 7 of Appendix 2 -A.1, the catch -up mechanism does not apply to TRQs.  WT/REG446/1  
 
- 10 - 
 
  3.2.  Tariffs are reduced from the base rate specified in the Parties' schedules – namely the MFN 
rates o n 1 January 201 7 (using  Harmonized System (HS) 201 7). Article 2.2 prohibits the application 
of customs duties on originating products  above the rates specified in the schedules, unless 
otherw ise specified . Upon request, consultations on the acceleration or improvement of tariff 
commitments are to take place; these may also be implemented unilaterally (Article 2.6).  
3.3.  National treatment on trade in goods  in terms of GATT Article III - which is in corporated in to 
the Agreement - applies as per Article 2.4. Goods are valued in accordance with Part I of the WTO 
Agreement on Customs Valuation (Article 2.5).  Article VIII of the GATT 1994 is incorporated into the 
Agreement  (Article 2.8) ; information on f ees and charges imposed in relation to importation and 
exportation are to be made publicly available, if feasible through the Internet.  Neither Party shall 
require c onsular transactions, including related fees and charges in connection with importation  of 
any good of the other Party . 
3.4.  Except as otherwise provided for in the Agreement  or in accordance with WTO disciplines - 
including Article XI of GATT 1994 which is incorporated into the Agreement, mutatis mutandis  - non-
tariff measures on the import of any g ood of the other Party are prohibited (Articles 3.1 and 3.3). 
Upon the request of a Party, the Committee on Trade in Goods is to review whether a non -tariff 
measure of the other Party is an unnecessary obstacle to trade (Article 3.2). As of July 2021, the 
Committee had not yet met and thus t he procedures for such a review  had not yet been adopted . 
Dispute settlement provisions do not apply to this mechanism.  
3.5.  The Parties agree to a pply import licensing measures in a predictable and transparent manner 
and in accordance with the Agreement on Import Licensing Procedures  (Article 3.4). Existing import 
licensing procedure s were to be notified promptly after the Agreement's entry into for ce;5 thereafter, 
any new or modified procedures are to be notified within specified time limits (if possible 60 days 
before, but in no case later than, its entry into force).6 A Party has 60 days to provide additional 
information requested by the other P arty. 
3.6.  A Committee on Trade in Goods is established as per Article 2.11. One of its functions is to 
determine procedures for Parties' cooperation on exchanging trade in goods data (Article 2.12).  
3.1.2   Liberalization of trade and tariff lines  
3.7.  In 2020, Australia's applied MFN tariff comprised 6,480 lines at the eight -digit level, of which 
9 lines were non -ad valorem  (specific or mixed).  
3.8.  Table 3.1 shows tariff and trade liberalization by Australia under the Agreement. Prior to its 
entry into forc e, 49.4% of Australia's tariff lines were duty -free on an MFN basis , accounting for 
52.5% of imports from Indonesia  during 2017 -19. All the remaining dutiable lines became duty -free 
for imports from Indonesia as from the Agreement's entry into force.7 
Table 3.1 Australia: Tariff elimination commitments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Tariff lines in Australia's 
tariff schedule  Australia's imports from Indonesia (201 7-19)a 
Number  % Value (USD million)  % 
2020 (MFN)  3,201 49.4 1,761.4  52.5 
2020 3,279 50.6 1,592.2  47.5 
Remain dutiable  - - - - 
TOTAL  6,480  100.0  3,353.6  100.0  
a Import coverage is from HS Chapters 1 -97. 
Note:  Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data from WTO -IDB. 
 
5 Australia indicates it complies with this obliga tion through notifications to the WTO Committee on 
Import Licensing per Article 3.4. para 4.1; for Indonesia, notification was made during the establishment of the 
Agreement's tariff rate quota system.  
6 Paragraph 4 of Article 3.4 specifies when a Party is  deemed to be in compliance with these 
transparency requirements.  
7 That is also the case under AANZFTA for imports as of 2020.  WT/REG446/1  
 
- 11 - 
 
  3.9.  In 2020, Indonesia's applied MFN tariff comprised 10,813 lines at the eight -digit level, of which 
27 lines were non -ad valorem  (specific).  
3.10.   Table 3.2 shows tariff and trade liberalization by Indonesia under the Agreement. Prior to the 
entry into force  of the Agreement , 12% of Indonesia 's tariff lines was duty -free on an MFN basis , 
accounting for average imports from Australia of 46.7% during 2017 -19. Following the Agreement's 
entry into force, Indonesia  liberalized an additional 8,934 lines representing 82.7% of its tariff, 
corresponding to 39.4% of imports from Australia . Additional liberalization during the reminder of 
the transition period concern s 23 lines accounting for less than 1% of bilateral trade; upon full 
implementation , 555 lines will remain dutiable, accounting for 13% of imports from Australia.8 
Table 3.2 Indonesia : Tariff elimination comm itments under the Agreement and 
corresponding average trade  
Duty phase -out 
period  Tariff lines in Indonesia's 
tariff schedule  Indonesia's imports from Australia (2017 -19)a 
Number  % Value (USD million)  % 
2020 (MFN)  1,301  12.0 2,701.9  46.7 
2020 8,934  82.7 2,273.4  39.4 
2023 7 0.1 48.2 0.8 
2025 1 0.0 - - 
2026 8 0.1 0.4 0.0 
2033 3 0.0 0.3 0.0 
2035 1 0.0 - - 
2040 3 0.0 6.7 0.1 
Remain dutiable  555 5.1 752.2  13.0 
TOTAL  10,813  100.0  5,783.2  100.0  
a Import coverage is from HS Chapters 1 -97. 
Note:  Tariff lines subject to in -quota rates are excluded in the computation.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Indonesia.  
 
3.1.3   Liberalization schedule  
3.1.3.1   Australia  
3.11.   Chart 3.1 shows Australia's tariff liberalization by HS section. All MFN dutiable lines became  
duty-free at the Agreement's entry into force (p reviously, only lines in Section XXI were duty-free).  
 
8 Under AANZFTA, 532 tariff lines (HS 2007) remained dutiable at the expire of the transition period in 
2025.  WT/REG446/1  
 
- 12 - 
 
  Chart 3.1 Australia: Tariff elimination under the Agreement, by HS Section
 
EIF Entry into force.  
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data from WTO -IDB. 
 
3.1.3.2   Indonesia  
3.12.   Chart  3.2 shows Indonesia's tariff libe ralization by HS section. Products of e leven HS Sections 
– agricultural and industrial - will remain subject to duties following the Agreement 's full 
implement ation.9 The 23 lines that will be liberalized between 2023 and 2040 are from Sections I, 
II, VII  and XV . For products remaining dutiable, the average preferential tariff will vary from 4.1% 
to 82.4%, with the corresponding average MFN rate ranging from 9.4% to 23.6%. It can be seen 
from Chart 3.3 that lines remaining dutiable cover 22 HS Chapters; for 15 of these, preferences are 
however in place. For products of Chapters 5, 10, 22, 27 and 30 the preferential and MFN average 
tariffs are the same.  
 
9 Under AANZFTA, S ections VIII, I, XII and XX also had products remaining dutiable.  
0%10%20%30%40%50%60%70%80%90%100%
I II III IV V VI VII VIII IX X XI XII XIII XIV XV XVI XVII XVIII XIX XX XXI Total% tariff lines
HS Section
Free MFN, 2020 All free EIF, 2020 Avg. MFN Tariff (%)WT/REG446/1  
 
- 13 - 
 
  Chart 3.2 Indonesia: Tariff elimination under the Agreement, by HS Section  
 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded.  
 Based on the HS 2017 nomenclature.  
EIF Entry into force . 
Source:  WTO estimates based on data provided by Indonesia.  
Chart 3.3 Indonesia: Average of dutiable rates, by HS Chapter  
 
*  Specific rates.  
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Indonesia.  
0%10%20%30%40%50%60%70%80%90%100%
I II III IV V VI VII VIII IX X XI XII XIII XIV XV XVI XVII XVIII XIX XX XXI Total% tariff lines
HS Section
Free MFN, 2020 Free EIF, 2020 Free 2023-2040 Remain Dutiable Avg. MFN tariff (%)
0%20%40%60%80%100%120%140%160%
01 02 03 05 06 07 08 10 11 17 21 22 24 27 30 33 39 71 72 73 84 87Preferential MFNAverage Duty Rate
HS Chapter*       *WT/REG446/1  
 
- 14 - 
 
  3.1.4   Tariff rate quotas  
3.13.   Australia does not have tariff rate quotas (TRQs). Disciplines on Indonesia's TRQs are included 
in Article 2.3 and Appendix 2 -A.1 to its tariff Schedule . The catch -up mechanism does not apply for 
TRQs; thus,  "Year 1" is  2020 (paragraph 7 of Appendix 2 -A). TRQs will be reviewed as part  of the 
Agreement's ge neral review from mid-2025 (Article 21.5 and paragraph 5 of Appendix 2 -A). 
3.14.   Indonesia  has TRQs for  eight products : 
a. out-of-quota rates for three products – oranges ; lemons and limes ; feed grains  - are 
those applicable under the ASEAN -Australia -New Zealand Fr ee Trade Area ( AANZFTA ) 
(duty -free since 2020); 
b. carrots and mandarins, clementines, wilkings and similar citrus hybrids will be fully 
liberalized in 2035 or 2040 respectively ; 
c. live cattle, potatoes and hot/cold rolled steel coil will remain dutiable.  
3.15.   Some products have  duty-free in-quota rates ; for other  products  these are dutiable . Some 
products have out-of-quota rates that are either fixed or correspond to those applied under the 
AANZFTA. In-quota quantities increase , unpacking and repackin g, over time. Detailed information 
can be found in Annex 2.  
3.16.   TRQ-related import permits shall be issued automatically and on an annual basis without 
seasonality  (paragraph 6 of Appendix 2 -A.1). Unused amounts cannot be carried over into the next 
calendar ye ar. 
3.2  Rules of origin  
3.17.   Rules of origin disciplines are included in Chapter 4. A good qualifies as originating (Article  4.2) 
if it: 
a. is wholly obtained or produced in a Party;  
b. satisfies the product -specific rules of Annex 4 -C. These include criteria requiring a  
change in tariff classification (CTC), a minimum qualifying value content (QVC), or that 
specific processing takes place in a Party;  
c. is produced in a Party exclusively from originating materials; or  
d. otherwise qualifies as an originating good under Chapter  4; 
e. and meets all other applicable requirements of this Chapter.  
3.18.   The Agreement provides exporters a choice of rules from (Article 4.4):  
a. either a CTC, generally at the HS heading level. Requirements at the chapter or 
subheading levels are also frequent; or  
b. a 40% QVC; for a few automotive products a threshold of 35% applies instead.  10 The 
QVC is calculated on the basis of either a build -up method (based on domestic costs 
including of originating materials) or a build -down method (based on the f.o.b. value of  
the good and of the non -originating materials). There is a provision for intermediate 
materials to benefit vertically integrated producers (Article 4.5).  
c. In a few cases, the choice of criteria also involves a processing operation requirement.  
 
10 8703.40 -8703.80 and 8704.90.  WT/REG446/1  
 
- 15 - 
 
  3.19.   Bilateral cumulation applies between the Parties (Article 4.7).  
3.20.   While the Agreement does not explicitly incorporate the absorption principle, the principle 
itself is taken into account through the definitions of material costs (which includes self -produced  
materials) and of value on non -originating materials (which does not include the value of a material 
that is self -produced). Therefore, when a self -produced good becomes originating, it remains 
originating when considering the origin of the final good.  
3.21.   A de minimis  rule (Article 4.9) applies so that the good is considered originating if the value 
of all non -originating materials that do not comply with the required CTC do not exceed 10% of the 
f.o.b. value of the good. For textiles in HS Chapters 50 to 63,  the tolerance refers to either non -
complying materials that account for a maximum weight of 10% of the good, or 10% of the adjusted 
(f.o.b.) value of the good. Additional QVC requirements will apply without any change.  
3.22.   No outward -processing is authorized under the Protocol. Transit through non -parties is 
authorized if does not undergo operations other than unloading, reloading, unpacking and repacking, 
labelling, or any other operation to preserve it in good condition; the good has not entered the 
commerce  of a non -Party; and the transit can be explained by geographical, economic or logistical 
reasons (Article 4.15).  
3.23.   Article 4.8 provides a list of minimal operations and processes that do not confer origin.  
3.24.    A Sub -Committee on Rules of Origin is established in Article 4.28.  
Box 3.1 Rules of Origin at a Glance  
• Product -specific rules:  
o CTC, generally a change of heading; alternatively  
o QVC at 40% (35% in few cases)  
o Processing operation requirements in fewer cases  
• Bilateral cumulation only.  
• Tolerance rules.  
• No outward -processing authorized.  
• Territoriality provisions.  
 
3.3  Export duties and charges, and quantitative restrictions  
3.25.   Unless  otherwise provided, neither Party shall adopt or maintain any prohibition or restriction 
or any other non -tariff measure on the export of any good destined to the territory of the other Party 
except in accordance with WTO disciplines, including Article XI of GATT 1994 (Articles 3.1 and 3.3).  
As of July 2021, only Indonesia applied export duties - on palm oil and its derivatives, leather, wood, 
cocoa beans, and mineral ore  
3.4  Regulatory provisions on trade in goods  
3.4.1   Standards  
3.4.1.1   Sanitary and phytosanitary measures  
3.26.   Chapter 7 of the Agreement covers Sanit ary and Phytosanitary Measures (SPS) and affirms 
the Parties' rights and obligations under the WTO SPS Agreement (Article 7.4).  
3.27.   Neither harmonization nor mutual recognition are made mandatory under the Agreement.  
3.28.   As regards equivalence, procedures followed  are those of the WTO SPS Committee and 
relevant international standard setting bodies . Even if equivalence is granted, the good is to comply 
with any other relevant mandatory requirement of the importing Party.  
3.29.   Transparency provisions build upon those of the SPS Agreement and in particular specify 
timeframes for commenting on proposed SPS measures.  There are also provisions on cooperation 
including on the provisions of technical assistance for trade facilitation.  WT/REG446/1  
 
- 16 - 
 
  3.30.   A "technical consultations" mechanism (Arti cle 7.10) allows a Party to request consultations 
on an urgent basis if it considers that there is a disruption to trade on  SPS grounds , with a mutually 
satisfactory resolution expected within 60 days from the request. The Agreement's dispute 
settlement do es not apply to the SPS Chapter (Article 7.12).  
3.31.   A Sub -Committee on SPS Matters is established under Article 7.11.  The Sub -Committee may 
set up subsidiary working groups. The Sub -Committee or any subsidiary body established by it 
reports to the Committee on Trade in Goods.  
3.4.1.2   Technical barriers to trade  
3.32.   Chapter 8 of the Agreement covers Technical Barriers to Trade (TBT) and affirms the Parties' 
rights and oblig ations under the WTO TBT Agreement (Article 8.4) . 
3.33.   Neither harmonization nor mutual recognition are made mandatory under the Agreement.  
3.34.   A few disciplines are added to those  in the TBT Agreement : 
a. upon request of the other Party, a Party shall explain why the  former's technical 
regulation is not considered equivalent  to its own  (paragraph 3 of Article 8.6), or the 
reasons for not accepting the results of any conformity assessment procedures 
performed in the territory of that other Party (paragraph 4, Article 8 .7); 
b. there is an illustrative list of approaches for enhancing mutual acceptance of conformity 
assessment  (paragraph 2 of Article 8.7 , including developing mutual recognition of 
conformity assessment procedures  and suppliers' declaration of conformity ); 
c. encouraging the identification of trade -facilitating initiatives on TBT issues (Article 
8.10), including the possibility of extending existing agreements or implementing 
arrangements to the other Party . 
3.35.   Transparency provisions are those of the TBT Agreement . In addition,  the Parties are to 
publish information relating to standards, technical regulations and conformity assessment 
procedures electronic ally and, where possible, in printed form  (Article 8.11) . 
3.36.   Cooperation provisions are further developed  in Article 8.8. and in  side letters - on Economic 
Cooperation and on Improving Health Professional Standards and Access to Health Services. A 
common element in both letters is the  promotion of standards ' harmonisation and support ing product 
compliance  on an indicative list of sectors  which include pharmaceutical  products and medical 
devices .11 
3.37.   A Sub -Committee on TBT  (TBT Sub -Committee)  is established under Article 8.13.  
3.38.   Where a matter covered under this Chapter cannot be clarified or resolved as a result o f 
consultations, the Parties shall refer it to the TBT Sub -Committee to identify a workable and practical 
solution to facilitate trade  (Article 8.9) . 
3.39.   The Agreement's dispute settlement do es not apply to the TBT Chapter (Article 8.14).  
3.4.2   Safeguard mechanisms  
3.4.2.1   Global safeguards  
3.40.   For global safeguards, Parties retain their rights and obligations under Article XIX of GATT 
1994, the WTO Safeguards Agreement and Article 5 of the WTO Agreement on Agriculture  
(Article  2.13).  
 
11 The letter has also health services -related components.  WT/REG446/1  
 
- 17 - 
 
  3.41.   On the request of the other Party, a Party that initiates a safeguard investigatory process shall 
provide to the other Party  an electronic copy of the notification given to the WTO Committee on 
Safeguards under Article 12.1(a) of the Safeguards Agreement  (Article 2.13) . 
3.4.2.2   Bilateral safeguards  
3.42.   The Agreement has no provision on bilateral safeguards.  
3.4.3   Anti-dumping and countervailing measures  
3.43.   Parties retain their rights and obligations under Article VI of the GATT 1994 and the WTO 
Agreements  on Anti -dumping and on Subsidies and cou ntervailing measures  (Article  2.14).  
3.4.4   Subsidies and state -aid 
3.44.   Export subsidies on any good destined for the territory of the other Party is forbidden 
(Article  2.7). 
3.4.5   Customs -related procedures  and trade facilitation  
3.45.   Customs procedures related to origin are dealt with in Sections D -F of Chapter  4 whilst trade 
facilitation provisions are found in Chapters 5 and 6. The m ain provisions are summarized in  
Table  3.3. 
3.46.   Preferential treatment i s granted upon presentation of a proof of origin, either  a Declaration 
of Origin (DoO) or a Certificate of Origin (CoO). DoOs are only valid once the exporting Party has 
notified the importing Party that it has implemented that option.  Both Parties have not ified the other 
of its implementation of DoOs.  Verification procedures include both written exchange of information 
and verification visits. A response to a request for a verification visit shall be made  within 30 days 
failing wh ich the customs administrat ion of the importing Party may deny preferential treatment  
(Article 4.23) . 
3.47.   WTO requirements of uniformity, transparency and avoidance of arbitrary procedural 
obstacles in relation to customs regulations are restated, whilst best endeavour provisions call f or 
their conformity with international standards and recommended practices established by the World 
Customs Organization and other relevant international agreements to which the Parties are party  
(Chapter 5) . Best endeavour provisions call for the Parties'  customs administration to cooperate on 
the implementation and operation of customs -related matters. Transparency disciplines require the 
establishment of enquiry points ; Article 6.4 specifies information to be published . 
3.48.   The m ain differences vis-à-vis the WTO Trade Facilitation Agreement  (TFA)  are: 
a. going beyon d the TFA , Chapter 5 provisions state that : 
i. an advance ruling  has a three -year validity  from the date of that ruling or such 
other period as specified in the laws, regulations or administrative determinations 
of that Party (TFA: "reasonable period of time") and , if requested by the applicant, 
a ruling on the application of the Customs Valuat ion Agreement is made 
mandatory (TFA: best endeavour) ; 
ii. risk management systems are mandatory (TFA: best endeavour);  
iii. the release of goods  is allowed at the point of arrival without temporary transfer 
to warehouses or other facilities (not included in the TFA), and any required 
security  is to be discharged "as soon as possible after its customs administration 
is satisfied that the obligations arising from the importation of the goods have 
been fulfilled" (TFA: " when it is no longer required") ; and  WT/REG446/1  
 
- 18 - 
 
  b. adapting th e TFA support measures for developing countries, Article 6.7 grants a grace 
period of 90 days for implementing the measures of Chapter 6 - Publication and Enquiry 
Points ; Perishable Goods ; Acceptance of Copies  - all of which have the same 
commitments as un der the TFA.  This period can be extended if any of the Parties so 
request ; no Party has request ed such an extension . 
Table 3.3 Summary of Customs procedures  
Subject  Agreement's Provisions  
Origin -related  
Proof of origin  DoO, s elf-declaration for certified or registered exporters , or 
CoO, i ssued by Issuing Body of the exporting Party .12 
Declaration of Origin  Both Parties have implemented the paragraph on DoOs . 
DoO s elf-issued by a certified or registered  exporter. No prescribed 
format; see attachment C in the following link:  
https://www.dfat.gov.au/sites/default /files/guide -to-using -ia-cepa-
to-export -or-import.pdf  
Valid for at least 12 months from its date.  
Certificate of Origin  Standard form , see attachment s A-B in the above -listed link. 
Valid for 12 months from date of issuance.   
Certifi ed exporters  Yes. Self-declaration (DoO). 
Certified/registered exporters in accordance with domestic law.  
Waiving of proof of origin  Imports under AUD 1,000 (Australia) - USD 200 (Indonesia); or  
If expressly provided that no proof is required for a certain good.  
Verification procedures  Written request and verification  visits. 
Final determination by the customs administration of the importing 
Party within 150 days of its request for verification  visit. 
On-site verification  by Customs administration of the i mportin g Party , upon written prior 
consent from the exporter/producer.  
Trade facilitation  
Advanced ruling provisions  Article 5.7.  
Risk management provisions  Article 5.10.  
Release of goods provisions  Article 5.11  
Both 
Review and appeal , Penalties provisions  Articles 4.25, 5.8 -5.9 
Source:  Chapter s 4-6 of the Australia -Indonesia Agreement.  
 
3.49.   A Trade Facilitation Sub -Committee is established in Article 6.8.  
3.4.6   Other regulations  
3.5  Sector -specific provisions on trade in goods  
3.50.   The Agreement contains no sector -specific provisions on trade in goods.  
4  PROVISIONS ON TRADE IN SERVICES AND INVESTMENT  
4.1  Scope and definitions  
4.1.  Trade in services is governed by Chapter 9 and Investment is covered by Chapter 14. Sector -
specific disciplines on financial services and tel ecommunications are included in Chapters 10 and 11, 
respectively. Measures affecting the temporary entry of natural persons of a Party into the territory 
of the other Party is regulated by Chapter  12 on Movement of Natural Persons.  
4.2.  Disciplines apply at cen tral, regional, or local level of governments (unless otherwise specified 
in the Chapters 9, 10, 11, 12 and 14) and to delegated non -governmental bodies in the exercise of 
powers delegated by central, regional, or local governments or authorities (as per A rticle 9.1). The 
 
12 After 11 February 2020, benefits from the Australian Trusted Trader (ATT) Origin Waiver have been 
extended to the Agreement, thus waiving the requirement for CoO or DoO for ATT importing originating goods. 
Australian Customs Notice No.2020/43 (abf.gov.au) . WT/REG446/1  
 
- 19 - 
 
  Trade in Services’ Chapter definitions generally follow those under the GATS, unless otherwise 
specified in this Section.  
4.3.  Chapter 9 applies to measures adopted or maintained by a Party affecting trade in services 
supplied by the other Part y's suppliers under the four GATS modes of supply. As in the GATS, 
services supplied in the exercise of governmental authority are outside the Agreement's scope. 
Government procurement, subsidies and grants as well as measures affecting citizenship, 
nation ality, residence and permanent employment of natural persons are also carved out.  
4.4.  Sectoral coverage under the Trade in Services Chapter  mirrors that of the GATS, except for air 
transport services which has a wider scope. Additional sectors are specialty ai r services, airport 
operation services and ground handling services. As under the GATS, air traffic rights are carved 
out. In case of inconsistency between Chapter 9 and an air services agreement to which the Parties 
are party, the latter shall prevail.  
4.5.  Disciplines of Chapter 14 on investment apply to measures adopted or maintained by a Party 
relating to investors of the other Party and covered investments and state -owned enterprises (SOEs) 
exercising a government -delegated authority (Article 14.2:2), but n ot to government procurement 
nor subsides and grants. Right of establishment (GATS mode 3) is regulated by Chapter 9. 
Article  14.3 establishes the relationship of the Investment Chapter to other Chapters of the 
Agreement.  
4.2  Denial of benefits  
4.6.  A Party may den y the benefits of Chapters 9 (under Article 9.10) and 14 (under Article 14.13) 
to the other Party's service supplier/investor (and its investment) that is an enterprise:  
a. owned or controlled by persons of a non -party and the denying Party adopts or 
maintain s measures prohibiting transactions with the non -party or a person of the non -
party that would be circumvented if the benefits of the Chapter were extended to the 
person; or  
b. owned or controlled by persons of a non -party or of the denying Party that has no 
substantial business activities in the territory of the other Party.  
4.7.  A Party may also deny the benefits to an investor of the other Party if a person of a non -party 
with whom the denying Party does not maintain diplomatic relations owns or controls the ent erprise.  
4.3  General provisions on trade in services and investment  
4.8.  Australia uses a "negative list approach" for scheduling its commitments, while Indonesia uses 
a hybrid approach.  
4.9.  The following non -conforming measures (Articles 9.7 and 14.14, as appropriate) constitute 
exceptions to the disciplines described in the sub -sections 4.3.2 -4.3.6 below:  
a. existing measures as well as their continuation, renewal or modification, provided their 
level of non -conformity is not increased and  they were listed in  Annex I for measures 
at the central or regional level of government. Non -conforming measures at the local 
level of government are not subject to these obligations; and  
b. existing and future measures listed in Annex II.  
4.3.1   Market access  
4.10.   Article 9.5 on market access  prohibits similar  market access limitations as under GATS 
Article  XVI.2. Exemptions from these prohibitions are specified in the Parties' reservations 
(Annexes  I and II, as per Article 9.7).  WT/REG446/1  
 
- 20 - 
 
  4.3.2   National treatment and MFN  
4.11.   A Party shall grant, for all services , service suppliers , investors and covered investments of 
the other Party  in its territory ( in relation to establishment, acquisition, expansion, management, 
conduct, operation, and sale or other disposition of their investments ): 
a. national tre atment  (Articles 9.3 and 14.4) . At a regional level of government, this 
means  granting treatment no less favourable than the most favourable treatment 
accorded, in like circumstances, by that regional government to services/service 
suppliers/investors/cove red investments of the Party of which it forms a part;  
b. most-favoured nation (MFN) treatment (Articles 9.4 and 14.5).13 
4.12.   National treatment and MFN obligations  do not apply  to Parties' reservations in Annexes I and 
II (Articles 9.7 and 14.14) nor to investment -related exceptions under the TRIPS Agreement 
(Article  14.14 , paragraph 3 ). 
4.13.   The MFN provision  does not apply to dispute settlement mechanisms  agreed under other 
international agreements,  such as Investor -State Dispute Settlement (ISDS ) - (paragraph 3 of 
Article 14.5 ; see Section  5.6). 
4.3.3   Commercial  presence  
4.14.   Neither Party can  require a covered service supplier of the other Party to establish or maintain 
a representative office or any form of enterprise, or to be resident in its territory as a c ondition for 
the cross -border supply of a service (Article 9.6). Exemptions from these obligations are specified 
in the Parties' lists of reservations (Articles 9.7).  
4.3.4   Performance requirements  
4.15.   Article 14.6 prohibits the application of performance requiremen ts with respect to the 
establishment, acquisition, expansion, management, conduct, operation or sale or other disposition 
of all investments (both of a Party and of a non -party).14 Detailed provisions and applicable 
exceptions are found in that Article . 
4.16.   Exceptions include  use of an intellectual property right in accordance with the TRIPS 
Agreement, or a requirement imposed or enforced to remedy an anticompetitive practice.  Other 
exceptions include some GATT Article XX -type measures; requirements in the context of export 
promotion and foreign aid programmes; and qualification for preferential treatment (paragraphs 4, 
6-8 of Article 14.6) . 
4.17.   The following are c arved -out from this obliga tion: 
a. financial services, in accordance with paragraph 3 of Article 10.2; and  
b. existing measures  or reservations listed in Annex I or II by the Parties (see Section  4.4.2 
of this document ). 
4.18.   Article 14.6 is not subject to the provisions on ISDS. 
4.3.5   Senior Manag ement and Boards of Directors  
4.19.   The Parties cannot impose nationality requirements for senior management positions of a 
company that is a covered investment, but can require that a majority (or less than) of its board of 
directors, or any committee thereof,  be of a particular nationality, or resident in the territory of the 
 
13 The Agreement's definitions of both national treatment and MFN are in line with the equivalent GATS 
definitions. MFN does not encompass dispute mechani sms provided in other international legal instruments.  
14 That contrasts to other provisions that do not apply to investments from non -parties.  WT/REG446/1  
 
- 21 - 
 
  Party, provided that the requirement does not materially impair the ability of the investor to exercise 
control over its investment (Article 14.10 ). 
4.3.6   Movement of natural persons  
4.20.   Chapter 12 of the Agreement on the Movement of Natural Persons builds on the respective 
GATS Annex  and increases the liberalization of temporary entry . The s cope of and principles used in 
both agreements are similar.15 
4.21.   The g rant of temporary entry is regulated under Article 12.4  and the Parties' commitments 
are set out in Annex 12 -A and summarized  in Table 4.1 below.  
Table 4.1 Comparison of categories and length of stay for temporary entry of business 
persons under the Agreement and the GATS  
Category  Maximum length of stay  
Agreement  GATS  
Australia  
A. Intra-corporate transferees ( ICTs) 
▪ Executives and senior managers  
▪ Specialistsa  
4 years, extendable  
2 years, extendable   
4 years  
2 years, extendable for a 
maximum of 2 more years  
B. Independent Executives  2 years  2 years  
C. Business visitors  
▪ Service sellers  
▪ Others  
3 to 12 months  
3 months   
6 to 12 months  
No commitments  
D. Spouses and/or dependents of A -B Same period as under A -B No 
Indonesia  
Section A  
A. ICTs  
▪ Directors, managers, technical 
experts/advisers  
 
 
 
 
 
▪ Technical experts/advisors  
(short -term)   
2 years, extendable two times 
for 2 more years each time  
 
 
 
 
 
2 years, extendable two times 
for 2 more years each time   
2 years, extendable for 1 year.  For 
non-banking financial sector, 3 
years extendable.  
Economic needs test  for managers 
and experts . 
May limit the number per sector.  
 
Banking sector only , 3 months  
B. Business visitors  60 days, extendable to 120 
days maximum  No 
C. Independent Professional for Legal 
Services (only on foreign and 
international law)  1 year extendable, each time 
for a maximum of one year  No 
D. Spouses and/or dependents of A  Same period as under A  No 
Section B  
Sectoral limitations applicable to ICTs , e.g.  nationality, licensing, expertise  
a The GATS schedule specifies that commitments for this category are not strictly limited to ICTs. 
Source:  Australia's and Indonesia's Annex 12 -A Schedules of Movement of natural perso ns commitments.  
 
4.22.   In the case of Indonesia, the economic needs test horizontally applied in its GATS schedule is 
eliminated for certain sectors.  Section A provides commitments for different categories of natural 
persons; for Intra -corporate transferees, additional sectoral limitations are listed in Section B. These 
may reserve certain positions to Indonesians only, require certain licensing or expe rtise. Numeric 
limitations are generally removed ; under the GATS they exist for certain sectors.  
 
15 E.g. access to employment market and right of residence is carved out, and the right of entry of 
natural persons of the other Party, including by establishing eligibility requirements, is authorized provided 
they are not applied in a manner that nullifies  or impairs the Agreement's benefits.  WT/REG446/1  
 
- 22 - 
 
  4.23.   In addition to the GATS disciplines, the Chapter sets out the Parties' obligations relating to 
the application procedure for temporary immigration – e.g. the n eed to inform applicants of the 
progress of the application and for fees to be reasonable; timeframes are however not set. The 
Parties agree on a number of transparency measures relating to the publication of information 
concerning immigration formalities relevant to the Chapter and the maintenance of appropriate 
mechanisms to respond to inquiries from the other Party.  
4.24.   The Parties reaffirm their APEC commitments to each other to enhance the mobility of natural 
persons and their support for efforts to enhanc e the APEC Business Travel Card programme.  
4.25.   The Parties have signed an MoU on the Indonesia -Australia Skills Development Exchange Pilot 
Project establishing a pilot project to enable appropriately skilled individuals to undertake short -
term Workplace Placem ents for the purpose of skills training, an MoU on a Pilot Workplace -based 
Training Visa Arrangement in Australia in selected services sectors, and a Side Letter on Work and 
Holiday Visas. These three instruments detail the procedures to be followed and se t a yearly quota 
for beneficiaries. The Parties have also signed other Side Letters, i.e., Side Letter on Technical and 
Vocational Education and Training, Side Letter on Economic Cooperation, Side Letter on Mutual 
Recognition of Professional Engineers, and  Side Letter on Improving Health Professional Standards 
and Access to Health Services . 
4.26.   Recourse to the Agreement's dispute settlement mechanism is possible if the matter involves 
a pattern of practice and the natural persons affected have exhausted all available domestic 
remedies.  
4.3.7   Other measures on Investment  
4.27.   A Chapter on Investment sets out disciplines on investment that go beyond GATS mode 3 -
related disciplines. These guarantee e.g., the application of generally accepted international leg al 
standards regarding the minimum standard of treatment; treatment in case of armed conflict or civil 
strife; expropriation and compensation; subrogation. The Parties also reaffirm the importance of 
encouraging their enterprises to act in accordance with internationally recognized principles of 
corporate social responsibility . 
4.28.   Section B of Chapter 14 on Investment provides arbitral proceedings under an ISDS 
mechanism  (see Section 5.6) . 
4.29.   The monitoring and review of the Chapter is delegated to a Committee on  Investment.  
4.4  Liberalization commitments  on services and investment  
4.30.   This Section summarizes Parties' commitments16 while also relating them to those under the 
GATS ; for each Party, two tables – covering modes 1 -3 - accompany a summary of their liberalizatio n 
commitments, as follows :17 
a. horizontal non-conforming measures , and for Indonesia also pluri -sectoral limitations, 
are presented in the first table.  
b. sectoral non -conforming measures  under the Agreement and the GATS are listed in the 
second table. The abse nce of sectoral non -conforming measures does not entail full 
liberalization of the sector concerned, given that it may be subject to horizontal 
limitations.  
 
16 Based on the WTO Services Sectoral Classification, document MTN.GNS/W/120.  
17 The source for the tables are the Parties' GATS Schedule of Specific Commitments and the 
Agreement's Annexes I and II.  WT/REG446/1  
 
- 23 - 
 
  4.31.   While these elements are presented separately, their possible overlap needs to be taken into 
accoun t when analysing  the liberalization brought by the Agreement.  Also of relevance to analysing 
the Agreement's liberalization  are temporary entry  commitments, addressed in Section 4.3.7. above.  
4.32.   Two similar horizontal reservations , also present in the GATS,  are listed by both Parties:  
a. a reservation for national security; and  
b. a grandfather reservation for existing international agreements covering trade in 
services. This is extended to selected future  agreements – ANZCERTA in the case 
Australia , ASEAN in the case of Indonesia , as well as  agreements covering aviation, 
fisheries and maritime matters . However, both Parties have agreed to subject the sub -
sectors listed in their respective Appendix B to Ann ex II to the Agreement 's disciplines. 
The l ists are similar and include around 30 sub -sectors of business, construction, 
education and health services.  
4.4.1   Australia  
4.33.   Australia's commitments follow a negative list approach , except for those of regional 
governme nts which use a positive list . Australia has 13 horizontal and 24 sectoral reservations , of 
which 25 relate to services and investment, nine to services only and three to investment only.  
4.34.   In its explanatory notes to Annex I (but not to Annex II), Australia notes that a measure that 
is reserv ed for local presence need not be reserved for national treatment.  
4.35.   Horizontal reservation s are presented in Table 4.2. They incorporate those under the GATS – 
in particular the screening /approval of FDI exceeding specific thresholds (without preferential 
screening thresholds to Indonesia) and, in light of the Agreement's wider scope, add a number of 
new restrictions . Compared to those under the GATS, n ew horizontal reservations include  land 
acquisition and exploitation . Existing measures at the regional level of government are carve d out 
from the Agreement's disciplines  under Annex I , with specific services commitments then made on 
a positive list basis.18 
Table 4.2 Australia: Horizontal non -conforming measures, Annexes I and II  
No.a Subject  Type  Reservation  
NT MFN MA LP PR SMBD  
Annex I  
1 Foreign  Investment  Framework  S&I       
2 Existing non-conforming measures at the 
regional level of government  S&I       
3 Company Directors and Officers  S&I       
Annex II  
1 Undeveloped Land S&I       
2 Land and agribusiness  S&I       
3 National s ecurity  S&I       
4 Mode 4  S       
5 Indigenous persons/organizations  S&I       
6 Services in the exercise of governmental 
authority & privatization  S&I       
7 Social services for a p ublic purpose : law 
enforcement  and correctional services , 
social security and income security, social 
welfare, public training and  education, 
health, child care, public utilities , public 
transport and public housing  S&I       
14 Regional level of government . 
However, commitments are undertaken on 
certain  sectors including financial services19 S       
 
18 According to Austr alia, these meet or exceed Australia's GAT commitments.  
19 According to Australia, these are GATS -plus commitments.  WT/REG446/1  
 
- 24 - 
 
  No.a Subject  Type  Reservation  
NT MFN MA LP PR SMBD  
15 Grandfather  clause for  international 
agreements , except for sub -sectors in 
Appendix B  S       
16 Grandfather clause  I       
a Number of the reservation under each respective Annex.  
I Investment.  
L Local presence.  
MA Market access.  
MFN Most-favoured nation.  
NT National treatment.  
PR Performance requirements  
S Services.  
SMBD  Senior managers and Board of directors.  
Note:  Reservations to the Agreement's specific disciplines are indicated in grey.  
 
4.36.   Accordingly, Australia's regional levels of government commitments are as follows:  
a. those included in the positive list of sectors/sub -sectors in Appendix A to Annex II, 
subject to limitations and conditions included therein  (generally replicating those under 
the GATS) ;20 and 
b. for financial services, those included in Australia 's 2005 Revised Services Offer made in 
the context of the WTO/Doha Development Agenda (DDA) .21 
4.37.   Collectively, c ommitments undertaken at the regional level of government improve those 
made under the GATS . Additional liberalization i n some sectors – financial, business (legal, R&D, 
rental/leasing of ships without operators), telecommunications, construction and relat ed engineering 
services, and rail and road transport  - derive from commitments in additional sub -sectors.  
4.38.   Under the GATS Australia ha s taken MFN exemptions on audiovisual services. Australia has 
listed a cultural reservation in its Annex II  (reservation 8) , exempting non -conforming measures on 
audiovisual services and recreational and cultural and sporting services  from the Agreement's 
disciplines . 
4.39.   Sectoral commitments under the Agreement and the GATS (modes 1 -3), including at the 
regional level of governme nt, are presented in Table 4.3. The paragraphs that follow highlight 
liberalization applying at the central level of government in some sectors.  
4.40.   Commitments are made in most services sectors, except for sectors such as primary education  
and audiovisual  services. 
4.41.   Postal and courier services are fully liberalized to the extent that they are not covered by the 
horizontal limitation number 6 on services supplied in the exercise of governmental authority.  
4.42.   Educational services, environmental services and health-related and social services are 
restricted under the horizontal limitation on social services for a public purpose  (reservation 7), 
which affects social services established or maintained for public purposes. Singled out in the 
reservations are income secu rity or insurance, social security or insurance, social welfare, public 
education, public training, health, childcare , public utilities, public transport, and public housing.  
4.43.   All of the construction  and related engineering services (except for public housi ng), and 
tourism and travel services  sub-sectors  are fully liberalized  (at the central level of government) 
under the Agreement.  
 
20 Appendix A also provides for other forms of commercial presence for the supply of international 
maritime transport services.  
21 See TN/S/O/A US/Rev.1.  WT/REG446/1  
 
- 25 - 
 
  Table 4.3 Australia: Commitments under the Agreement and the GATS (modes 1 -3 onl y) 
Sectors  Agreement's Commitments  & 
Level of Government  
GATS  
commitments  Reservation s at 
Central level  Regional 
level  
(App. A) Existing  
(Ann. I)  Future  
(Ann.  II) 
1. Business services      
A. Professional  Services  4, 5, 6, 7  - Partial  Partial  
B. Computer  and Related  Services  - - Partial  Partial  
C. Research  and Development  Services  - - Full Partial  
D. Real  Estate  Services  - - Partial  Partial  
E. Rental/Leasing  Services  without  Operators  - - Partial  Partial  
F. Other  Business  Services  8 - Partial  Partial  
2. Communication services      
A. Postal  services  - - None None 
B. Courier  services  - - None None 
C. Telecommunication  services  9 - Full Partial  
D. Audiovisual  services  - 8 None None 
E. Other  - - None None 
3. Construction and related engineering services  
A. General  construction  work for buildings  - - Full Partial  
B. General  construction  work for civil engineering  - - Full Partial  
C. Installation  and assembly  work - - Full Partial  
D. Building  completion  and finishing  work - - Full Partial  
E. Other  - - Full None 
4. Distribution services      
A. Commission  agents'  services  - - Partial  Partial  
B. Wholesale  trade services  - 9 Partial  Partial  
C. Retailing  services  - 9 Partial  Partial  
D. Franchising  - - Full Full 
E. Other  - - None None 
5. Educational services      
A. Primary education services  - 10 None None 
B. Secondary education services  - - Full Partial  
C. Higher education services  - - Full Partial  
D. Adult education  - - None None 
E. Other education services  - - Partial  Partial  
6. Environmental services      
A. Sewage services  - - Full Full 
B. Refuse disposal services  - - Full Full 
C. Sanitation and similar services  - - Full Full 
D. Other  - - Full None 
7. Financial services      
A. All insurance  and insurance -
related  services  16 17, 19, 21  Partial  Partial  
B. Banking  and other  financial  services  14, 15  17, 18, 20, 
21 Partial  Partial  
C. Other  - 17, 18, 21  None None 
8. Health related and social services      
A. Hospital services  - - Partial  None 
B. Other Human Health Services  10 - Partial  Partial  
C. Social Services  - - None None 
D. Other  - - None None 
9. Tourism and travel related services      
A. Hotels  and restaurants (incl. catering)  - - Full Full 
B. Travel  agencies  and tour operators  services  - - Partial  Partial  
C. Tourist  guides  services  - - Full Full 
D. Other  - - None None 
10. Recreational and cultural and sporting services  
A. Entertainment  services  - 8 None None 
B. News agency services  - 8 Full Full WT/REG446/1  
 
- 26 - 
 
  Sectors  Agreement's Commitments  & 
Level of Government  
GATS  
commitments  Reservation s at 
Central level  Regional 
level  
(App. A) Existing  
(Ann. I)  Future  
(Ann.  II) 
C. Libraries, archives, museums and other 
cultural services  - 8 None None 
D. Sporting and other recreational services  - 8, 11 Partial  Partial  
E. Other  - - None None 
11. Transport services      
A. Maritime Transport Services  11 12 Partial  Partial  
B. Internal Waterways Transport services  - - None None 
C. Air  Transport  Services  12, 13  13 Partial  Partial  
D. Space  Transport services  - - None None 
E. Rail Transport  Services  - - Partial  None 
F. Road  Transport  Services  - - Partial  Partial  
G. Pipeline  Transport services  - - Full Full 
H. Services  auxiliary  to all modes  of transport  - - Partial  Partial  
I. Other  Transport  Services  - - None None 
Note:  Excludes horizontal reservations and mode 4.  
Full No sector -specific limitation/reservation and all sub -sector covered.  
None No commitments.  
Partial  Sector -specific limitations/reservations or not all sub -sector covered.  
 
4.44.   Liberalization of business services also goes beyond th at under the GATS, and the offer made 
in the DDA context.  Reservations affect patent law attorneys  – requiring previous experience in 
Australia or New Zealand -; migration agencies  – requiring nationality of, or permanent reside nt in, 
Australia, or New Zealand nationality with a special visa -; auditors , liquidators  and customs brokers  
– for whom residency  is required -; and fishing services , which require authorization and the 
payment of a levy . 
4.45.   Regarding distribution services, market access limitations may be applied with respect to 
wholesale and retail trade services of tobacco products, alcoholic beverages or firearms. Similarly to 
the GATS, dispensing of pharmaceuticals is carved out at the re gional level of government.  
4.46.   While financial services remain subject to numerous restrictions, liberalization under the 
Agreement improves that under the GATS and mirror s the liberalization offered in the DDA context. 
For example, liberalization includes th e waiving of local presence for suppliers of insurance services  
and liberalization of dealings in foreign exchange . 
4.47.   Recreational and cultural and sporting services are subject to the broad  cultural reservation 
and also limited with respect to gambling and betting related services.  
4.48.   In transport services, Australia broadens its GATS commitments. In maritime services, 
Australia  lists reservations for international liner cargo shipping services and ships. It also reserves 
the right to adopt or maintain any meas ure with respect to maritime cabotage services and offshore 
transport services. In air transport services, Australia places restrictions on the equity ownership of 
Australian international airlines (including Qantas), and reserves the right to adopt or mai ntain any 
measure with respect to investment in federal leased airports . The "public service" horizontal 
limitation applies to public transportation.  
4.4.2   Indonesia  
4.49.   The scheduling of Indonesia's services and investment commitments is sui generis : the  
services  commitments are based on  positive list s which have been integrated in the overall negative 
list architecture  of the Agreement , with a broad horizontal reservation limit ing disciplines on national 
treatment, market access and local presence  in sectors committed in Annex I and Appendix A to 
Annex II . WT/REG446/1  
 
- 27 - 
 
  4.50.   Non-conforming measures relating to trade in services are listed in Section A of Annexes I 
and II  (five); those applying to investment are listed in  Section B  (32). 
4.51.   Indonesia has 1 9 horizontal , 15 pluri-sectoral and three single -sector reservations  – 22 are 
listed in  Annex I and 15 in Annex II . Single -sector reservations are presented in  Table4.5 , the others 
are listed in  Table 4.4 . Out of the 34 horizontal and pluri -sectoral reservations, two relate to services 
and the other to investment.  
4.52.   Under the Agreement, foreign equity for Australian investment has been generally increased 
to 67%, up from 49% und er the GATS.22 Other horizontal reservations listed in the GATS are also 
replicated in the Agreement  for those sectors committed thorough the positive list , e.g. requiring 
commercial presence in the form of a limited liability company and a withholding tax  of 20% for 
non-residents. There are a number of new reservations as compared to the GATS given the 
Agreement's wider scope.  The national security reservation also extends to any new sector.  
4.53.   The Agreement's disciplines under the Investment Chapter only app ly to Australia's 
investments in manufacturing, agriculture, fisheries, forestry, mining and quarrying, energy 
infrastructure and transport infrastructure . However,  under the 1 5 pluri-sectoral reservations, 
investments in many products do not benefit from national treatment . For example, foreign 
investment in capturing of fish, manufacturing of certain clothing, certain crop cultivation in areas 
of less than 25 hectares is prohibited. As regards mining and quarrying and energy infrastructure, 
foreign invest ment is restricted in term of size/output ;23 FDI on transport infrastructure is only open 
as regards  highway s, bridge s and tunnel s concessions.  
Table 4.4 Indonesia: Horizontal and pluri -sectoral non-conforming measures, Annexes I 
and II  
No.a Subject  Level 
of 
Gov. Type  Reservation  
NT MFN MA LP PR SMBD  
HORIZONTAL RESERVATIONS  
Annex I  
 Section B  
1 Acquisition or lease of l and C&R I       
2 FDI Registration  C I       
3 Juridical form of investment  C I       
4 Local distribution agent  C I       
5 Positions reserved for Indonesians  C I       
8 Public Enterprise  C I       
9 Grandfather clause for existing 
companies/projects  C I       
13 Mandatory s ale of shares if 100% FDI  C I       
16 All sectors  C&R I       
19 Withholding tax of 20% for non -
residents  for sectors committed in 
App. A  C I       
Annex II  
 Section A  
1 All sectors except in An. I and App. A  .. S       
2 Grandfather  clause for  international 
agreements , except for  sub-sectors in 
Appendix B  C S       
 Section B  
4 Privatization  C&R I       
5 MSMEs  C&R I       
8 New and unregulated services sectors  C I       
9 All sectors, overlooked measures in 
force C I       
 
22 Lower or higher thresholds may apply in specific sectors, but also in these cases those under the 
Agreement provide increased liberalization towards Australia.  
23 Metallic mineral and coal with a size equal or above 500 Hectares Power plants of more than 
10 Megawatts and geothermal power plants of less than or equal to 10 Megawatts.  WT/REG446/1  
 
- 28 - 
 
  No.a Subject  Level 
of 
Gov. Type  Reservation  
NT MFN MA LP PR SMBD  
10 Investment licence by Regional level 
of government  C I       
12 Grandfather clause for  international 
agreements  C&R I       
13 National security  C I       
PLURI -SECTORAL RESERVATIONS  
Annex I  
 Section B  
6 Capture fisheries  C I       
7 Mining & Quarrying: sea sand 
extraction  C I       
10 Manufacturing in numerous sectors  C I       
11 Agriculture: numerous lines of 
business  C I       
12 Forestry: certain lines of business  C I       
14 Mining & Quarrying: size limitation for 
metallic minerals and coal extraction  C I       
15 Manufacturing, agriculture, fishery, 
forestry , numerous lines of business  C I       
17 Energy infrastructure: size limitation 
of output  C I       
18 Transport infrastructure - highway, 
bridge and tunnel  C I       
Annex II  
 Section B  
1 Manufacturing , numerous sectors : 
foreign equity  limitation , partnership, 
sourcing and other requirements  C I       
2 Agriculture , numerous sectors : foreign 
equity limitation and locational 
requirement  C I       
3 Forestry , numerous sectors: foreign 
equity limitation, partnership and 
other requirements  C I       
6 Fishery , numerous sectors : 
partnership and other requirements  C I       
7 Agriculture and manufacturing: 
horticulture , establishment and 
operation  C I       
11 Manufacturing, agriculture, fishery, 
forestry: Food security emergency  C I       
a Number of the reservation under each respective Annex.  
C Central . 
I Investment.  
L Local presence.  
MA Market access.  
MFN Most-favoured nation.  
MSME  Micro, Small and Medium Enterprises.  
NT National treatment.  
PR Performance requirements . 
R Regional . 
S Services.  
SMBD  Senior managers and Board of directors.  
.. Not specified.  
Note:  Reservations to the Agreement's specific disciplines are indicated in grey.  
Source:  Annexes I and II to the Agreement.  
 
4.54.   Sectoral commitments under the Agreement and the GATS (modes 1 -3) are presented in  
Table 4.5  Indonesia undertook commitments on numerous services sectors for which it has no  
commit ments  under the GATS , and improved existing GATS commitments in particular for modes 1 
and 2.  WT/REG446/1  
 
- 29 - 
 
  4.55.   Commitments are made in all services sectors, except real estate services; commission 
agents' services; primary education; social services; news agency services and libraries, archives, 
museums and other cultural services; and pipeline services . In many cases, the liberalization is 
partial because of the overall foreign equity li mitation. No service sector is fully liberalized under the 
Agreement.  
Table 4.5 Indonesia: Commitments under the Agreement and the GATS (modes 1 -3 only)  
Sectors  Agreement's Commitments &  
Level of Government  
GATS  
commitments  Reservations at  
Central level  Positive 
List 
(App. A,  
Ann. I)  Existing  
(Ann. I)  Future  
(Ann.  II) 
1. Business services      
A. Professional  Services  A.1 - Partial  Partial  
B. Computer  and Related  Services    Partial  Partial  
C. Research  and Development  Services    Partial  Partial  
D. Real  Estate  Services    None None 
E. Rental/Leasing  Services  without  Operators    Partial  None 
F. Other  Business  Services    Partial  Partial  
2. Communication services      
A. Postal  services  A.2  Partial  None 
B. Courier  services  A.2  Partial  None 
C. Telecommunication  services    Partial  Partial  
D. Audiovisual  services    Partial  None 
E. Other    None None 
3. Construction and related engineering services  
A. General  construction  work for buildings    Partial  Partial  
B. General  construction  work for civil engineering    Partial  Partial  
C. Installation  and assembly  work   Partial  Partial  
D. Building  completion  and finishing  work   Partial  None 
E. Other    Partial  Partial  
4. Distribution services      
A. Commission  agents'  services    None None 
B. Wholesale  trade services    Partial  None 
C. Retailing  services    Partial  None 
D. Franchising    Partial  None 
E. Other    None None 
5. Educational services      
A. Primary education services    None None 
B. Secondary education services    Partial  None 
C. Higher education services    Partial  None 
D. Adult education    Partial  None 
E. Other education services    Partial  None 
6. Environmental services      
A. Sewage services    Partial  None 
B. Refuse disposal services    Partial  None 
C. Sanitation and similar services    Partial  None 
D. Other    Partial  None 
7. Financial services      
A. All insurance  and insurance -related  services    Partial  Partial  
B. Banking  and other  financial  services    Partial  Partial  
C. Other    None None 
8. Health related and social services      
A. Hospital services    Partial  None 
B. Other Human Health Services    Partial  None 
C. Social Services    None None 
D. Other    None None 
9. Tourism and travel related services      
A. Hotels  and restaurants (incl. catering)    Partial  Partial  
B. Travel  agencies  and tour operators  services    Partial  Partial  
C. Tourist  guides  services    Partial  None WT/REG446/1  
 
- 30 - 
 
  Sectors  Agreement's Commitments &  
Level of Government  
GATS  
commitments  Reservations at  
Central level  Positive 
List 
(App. A,  
Ann. I)  Existing  
(Ann. I)  Future  
(Ann.  II) 
D. Other    Partial   
10. Recreational and cultural and sporting services  
A. Entertainment  services    Partial  None 
B. News agency services    None None 
C. Libraries, archives, museums and other 
cultural services    None None 
D. Sporting and other recreational services    Partial  None 
E. Other    Partial   
11. Transport services      
A. Maritime Transport Services  A.3  Partial  Partial  
B. Internal Waterways Transport services    Partial  None 
C. Air  Transport  Services    Partial  None 
D. Space  Transport services    Partial  None 
E. Rail  Transport  Services    Partial  None 
F. Road  Transport  Services    Partial  None 
G. Pipeline  Transport services    None None 
H. Services  auxiliary  to all modes  of transport    Partial  None 
I. Other  Transport  Services    None None 
Note:  Excludes horizontal reservations and mode 4.  
None No commitments.  
Partial  Sector -specific limitations/reservations or not all sub -sector covered.  
 
4.56.   New commitments are made for a  number of business services , including legal services as 
regards ad visory services in foreign and international law, and engineering services , computer and 
related services, and other business services. The commercial presence of foreign law firms is 
however prohibited.  
4.57.   Partial commitments are made in p ostal and courier services. Limitations include a joint 
venture with a fully Indonesian owned provider, foreign equity at 49% (instead of the general 67%) 
and covers only international post and courier . The provision of some telecommunication services, 
through modes 1 and 2, unbound under the GATS, are covered under the Agreement.  
4.58.   Distribution services and h ealth services, including hospitals, have been opened up to 
Australia subject to the 67% foreign equity requirement.  
4.59.   Education services  has been partially liberalized with the exception of primary education; 
there are no commitments for the  sector under th e GATS.  General conditions limit the liberalization, 
e.g. mutual recognition of credits, partnership with local partners, and geographical limitation s. Work 
training education services - the top services export to Indonesia - benefits from the highest leve l 
of liberalization among education services, in particular because of the lifting of the general 
conditions. Foreign equity remains  limited to 67% . 
4.60.   The Agreement provides for a partial liberalization of all environmental services subsectors, 
for which there are no GATS commit ments . These remain however subject to certain limitations, in 
particular on joint venture s and foreign equity. Sewage services are opened as regards wastewater 
management with the general foreign equity limitation of 67%; the threshold of foreign equity for 
all other subsectors are either 49% or 51%.  
4.61.   Indonesia incorporates into the Agreement its f inancial services commitments unde r the 
AANZFTA , which go beyond those under the GATS . The threshold of foreign equity is explicitly 
stipulated at 80% for insurance and increased to 51% for the acquisition of local banks through the 
purchase of shares of locally incorporated bank listed in  the stock exchange; in the GATS it is limited 
to 49%. The AANZFTA commitment to eliminate by 2020 other limitations on market access and WT/REG446/1  
 
- 31 - 
 
  national treatment on modes 1 -3 imposed in non -banking financial services on the basis of 
reciprocity is incorporated into the Agreement.24 
4.62.   Transport services are further liberalized compared to  the GATS , with new sub -sectors being 
partially opened to Australia . The Agreement's overall 67% foreign equity limitation is only 
maintained for highway, bridge and tunnel operati on services and parking services; for other sectors 
it is generally 49%, though different thresholds (30%, 35%, 51 %) are also foreseen . 
4.5  Regulatory provisions  
4.5.1   Domestic regulation  
4.63.   Article 9.8 on domestic regulation replicates some of the provisions of GATS  Article VI and 
foresees the incorporation , as appropriate,  into the Agreement of any new disciplines agreed under 
the GATS or other multilateral fora in which the Parties participate . Additional disciplines beyond 
those of the GATS include:  
a. a best endeavour clause invit ing Parties to ensure that domestic regulation measures  
are based on objective and transparent criteria , and, in the case of licensing procedures , 
are not in themselves a restriction on the supply of the service ; 
b. requirements re lating to the granting of authorisation , either of a mandatory or best 
endeavour nature. They regulate elements that require publication, timeframes, the 
need to keep applicants informed of progress, use of authenticated copies of documents 
in place of ori ginals, required examination, transparency provisions, etc.  
4.64.   Financial services are only subject to the GATS -replicated provisions (paragraph 3 of 
Article  10.2).  
4.65.   Services sectors exempted under Annexes I and II are not subject to domestic regulation 
discipl ines. 
4.5.2   Recognition  
4.66.   Article 9.9 on recognition of service suppliers  incorporates GATS Article VII. A best endeavour 
clause  foresees  trade facilita tion for professional services . This is further developed in Annex 9-A, 
which encourages the development of mutu ally acceptable standards and criteria for certification 
and licensing and establishes a Professional Services Working Group , due to  meet annually. As of 
July 2021  the Working Group had not yet met. 
4.67.   No mandatory recognition of qualifications is foreseen. The Article expressly states that no 
MFN treatment  applies with respect to mutual recognition instruments concluded between a Party 
and a non -party. 
4.5.3   Subsidies  
4.68.   Subsidies and grants are outside the scop e of Chapters 9 and 14 on trade in services and 
investment.  
4.5.4   Safeguards  
4.69.   The only safeguard provision on trade in services are those for balance -of-payments reasons 
(see Section 5.3.1).  
 
24 Indonesia states that by 2021 the said clause is seemingly no longer relevant since the conditionality 
was due in 2020.  WT/REG446/1  
 
- 32 - 
 
  4.5.5   Other  
4.6  Sector specific provisions on trade in services  
4.6.1   Financial services  
4.70.   Disciplines and definitions of Chapter 10 on Financial Services builds upon those of the GATS  
and its Annex on Financial Services . In particular, it extend s to Indonesia, with modifications, some 
of the provisions included in the GATS Understanding on Com mitments in Financial Services  
(hereafter the "Understanding") , signed off by Australia but not by Indonesia during the Uruguay 
Round. These include disciplines regarding new financial services, treatment and processing of 
financial information, access to self-regulatory organizations, payments and clearing systems . 
4.71.   The list of exceptions  to financial services  (Article 10.5) builds upon those of the GATS and its 
Annex on Financial Services,25 and includes the ability for a Party to prevent or limit transfer s by a 
financial service supplier through the implementation of equitable and non -discriminatory measures.  
4.72.   In case of inconsistency between Chapter 10 and the Chapters on Trade in Services, 
Telecommunications, Electronic Commerce, Investment or Transparenc y (Chapters 9, 11, 13, 14 or 
19, respectively), the provisions of the Financial services Chapter shall prevail.  
4.73.   The following disciplines apply with respect to dispute settlement on measures affecting 
financial services (See also Section 5.6) : 
a. financial services are carved out from a number of the Agreement's novel disciplines 
(see paragraphs  4.17 a nd 4.63); 
b. specific qualifications and expertise in financial law or practice may be re quired of the 
panellists /arbitrators  intervening at any time of the procedure;  
c. the disputed issue may refer to whether and to what extent the exceptions of Article 
10.5 Article 10.5 were a valid defence to a claim;  
d. the Panel's report shall be binding on an y ISDS tribunal established to consider the 
same measure , and its decision or award must be consistent with the Panel's report ; 
and 
e. arbitration under ISDS is adapted to the particularities of the financial services sector 
(Article 10.12) ; and 
f. given the Chapter's carve -outs and exceptions, restricting ISDS arbitration to certain 
disciplines .26 
4.74.   For general exceptions applying to financial services, see Section 5.3. 
4.6.2   Telecommunications  
4.75.   Chapter 11 on Telecommunications  builds upon the GATS and its Annexes on 
Telecommunications and on Negotiations on Basic Telecommunications as well as the WTO's 
Reference Paper, to which both Australia and Indonesia have committed to as regards its regulatory 
principles.  
 
25 Article XIV(c)(i) and Annex on Financial S ervices list exceptions for prudential reasons; monetary, 
credit and exchange rate policies; and for prevention of deceptive and fraudulent practices. These exceptions 
are with respect to different Chapters, including Chapters 9, 11, 13 and 14.  
26 Namely Mi nimum Standard of Treatment; Treatment in Case of Armed Conflict or Civil Strife; 
Transfers; Expropriation and Compensation; Denial of Benefits; and Special Formalities and Disclosure of 
Information; respectively Articles 14.7 -14.9, 14.11, 14.13 and 14.15.  WT/REG446/1  
 
- 33 - 
 
  4.76.   The Chapter's sc ope goes beyond that of the GATS , in particular  by extending transparency 
obligations and the non -discriminatory access to and use of public telecommunications networks and 
services to measures relating to broadcast or cable distribution of radio or televi sion programming , 
which are fully excluded under the GATS.  
4.77.   Additional disciplines building upon the regulatory framework of the WTO's Reference Paper 
impose obligations on Parties with respect in particular to the practices of major suppliers of public 
telecommunications networks and services , while also addressing issues such as the Parties' 
regulatory bodies and allocation and use of scarce resources. Obligations to be abided by major 
suppliers aim in particular to prevent anti -competitive practices ;27 those applying to regulatory 
bodies also include the right of enterprises to have recourse to these bodies in order to resolve 
disputes with other enterprises. New disciplines on e.g. international roaming (not requiring the 
elimination of roaming fees), int ernational submarine cable systems , and universal service are also 
provided for. Requirements relating to licensing process are detailed.  
5  GENERAL PROVISIONS OF THE AGREEMENT  
5.1  Transparency  
5.1.  The provisions of Chapter 19 on Transparency deal with publication, p rovision of information, 
administrative proceedings and the existence of review and appeal; they are in line with those of 
the WTO.  
5.2.  In addition to  specific transparency measures  presented elsewhere in this document, the 
following can be highlighted:  
a. Partie s shall cooperate with a view to conducting periodic exchange of data relating to 
trade in goods between the Parties. R elevant procedures may be agreed upon in the 
Committee on Trade in Goods (Article 2.12);  
b. in order to enhance transparency and mutual understanding on trade remedies including 
on their respective  trade remed ies system s and practices , the Parties agree to establish 
a High Level Dialogue (Article 2.15) . The first meeting shall be  within one year from the 
Agreement's  entry into force; subsequent meetings shall be as agreed by the Parties . 
As of July 2021 no such meeting had taken place.  
c. transparency of permitted non -tariff measure s is expressly provided for (Article 3.1) . 
5.2  Current payments and capital movements  
5.3.  With re spect to the supply of services, including financial services, and investment, each Party 
shall permit all transfers relating to these supply of services and/or a covered investment to be made 
freely and without delay into and out of its territory (Article s 9.12 and 14.9 respectively). Limitations 
are however possible in certain conditions, such as when payments and capital movements cause 
or threaten to cause serious difficulties for macroeconomic management and will be applied only 
through equitable and n on-discriminatory measures and are specified in the relevant articles (e.g. 
in cases of bankruptcy ). 
5.3  Exceptions  
5.3.1   General exceptions  
5.4.  Article s XX of the GATT 1994 and XIV of the GATS are  incorporated into the Agreement and 
made applicable to the trade  relatio ns between the Parties with respect to provisions govern ing trade 
in goods and services, respectively (Article s 17.2). Equivalent exceptions apply with respect to 
investment. Cultural goods and cultural -related services also benefit from these general exce ptions; 
 
27 A transition period lasting until 31 December 2020 was provided for Indonesia with respect to some of 
these obligations; which were accordingly implemented. By that date, Indonesia had implemented the 
obligations under Articles 11.7 and 11.12 . WT/REG446/1  
 
- 34 - 
 
  however, invocation of any such exception may require compensation as regards commitments 
undertaken with respect to trade in services and investment.  Exceptions in relation to financial 
services are presented in Section 4.6.1  of this document . 
5.5.  As regards  to taxation, rights and obligations going beyond those of the WTO only apply to the 
extent the relevant investment measures are covered under Chapter 14. Applicable taxation 
disciplines are specified in Article 17.4.  Tax convention s are carved out from the A greement . If in 
the context of a dispute under the Agreement, including ISDS, the issue of a possible inconsistency 
between the Agreement and the convention appears, the Parties' competent authorities shall make 
a determination within 180 days, during whic h the dispute  shall be halted. The Agreement does not 
provide for any MFN treatment  with respect to existing tax conventions.  
5.3.2   Security exceptions  
5.6.  Article 17.3 incorporates into the Agreement the security exceptions modelled off  Articles XXI 
of the GATT and  XIV bis  of the GATS ; it also includes an express reference to action to protect critical 
public infrastructure . 
5.3.3   Balance -of-payments safeguard provisions  
5.7.  Article 17.5 allows the Parties to adopt or maintain temporary measures restricting imports  of 
trade i n goods in accordance with GATT 1994 and the Understanding on Balance -of-Payments 
Provisions of GATT 1994 . Restrictions on trade in services and investment are authorized in a manner 
and under conditions similar to those of GATS Article XII.  
5.8.  Any such balan ce-of-payments safeguard measures shall be promptly notified to the other 
Party. In the case of trade in services, if consultations are not being held in the WTO, they shall 
promptly be commenced upon request from the other Party. In the case of investment , the Party is 
to respond to any request for consultations from the other Party if such consultations are not 
otherwise taking place outside the Agreement . 
5.4  Accession and withdrawal  
5.9.  The Agreement has no accession provisions.  
5.10.   Article 21.6 provides for a 180 days advance notice for a Party wishing to terminate the 
Agreement.  
5.5  Institutional framework  
5.11.   The Agreement's governing body is the Joint Committee, established in Chapter 18 on 
"Institutional Provisions". The Committee is tas ked with the implementation and operation of the 
Agreement, including providing for its general review foreseen every five years. In so doing, the 
Committee shall take into account the work of all committees and subsidiary bodies established 
under this Agr eement, developments in international fora and input from experts as appropriate.  
The Joint Committee shall meet at the level of Ministers on an annual basis , unless the Parties agree 
otherwise. A s of July 2021, the Joint Committee had not met . 
5.12.   Numerous other Sub -Committees have also been established under the Agreement; these 
have been referred to elsewhere in this document.  
5.6  Dispute settlement  
5.13.   The Agreement's dispute settlement process is contained in Chapter 20, divided into five 
Sections (A -E) and contains two Annexes (Annex 20 -A on Rules of Procedures and Annex 20 -B on 
Code of Conduct). It applies to avoidance or settlement of disputes arising under the Agreement 
(Article 20.2). Non -violation complaints are not permitted (Article  20.2) . 
5.14.   The Ch apter does not apply to the settlement of disputes relating to SPS, TBT, Economic 
Cooperation and C ompetition (Chapters 7, 8 and 15  and 16 , respectively).  WT/REG446/1  
 
- 35 - 
 
  5.15.   Forum selection is provided for by Article 20.4, with the forum deemed to have been selected 
upon the  request to establish a panel or referral of the matter to a dispute settlement panel or 
arbitral tribunal under another international agreement. Unless otherwise agreed, the panel is 
composed of three panellists.  
5.16.   As a general rule, the panel process shoul d not exceed a period of 270 days from the date of 
establishment of the panel. The panel report shall be issued within 180 days from its establishment; 
in cases of urgency that timeline is reduced to 90 days. If the panel considers that it cannot provide 
the report within these timeframes, it shall inform the Parties in writing of the reasons for the delay.  
Good offices, conciliation and mediation remain possible at any time.  
5.17.   The Parties may agree for a panel to suspend its work for a period not exceeding 3 65 days. 
Termination of proceedings is possible at any time if the Parties find a mutually satisfactory solution 
to the dispute . 
5.18.   The dispute settlement mechanism does not provide the right to appeal the panel report.  
5.19.   Detailed disciplines, including timefra mes, regulate the implementation of the conclusions of 
the panel report. Immediate implementation is preferable; however, a period of time  may be granted 
instead, either by mutual agreement or by determination of the Chair of the panel – in which case 
it should not exceed 455 days from the date of presentation of the final panel report  as regulated 
under paragraph 6 of Article 20.12 . 
5.20.   Disagreement between the Parties regarding the implementation of measures shall be decided 
through recourse to a "Compliance Review Panel". The Compliance Review Panel shall, if possible, 
provide its interim report to the Parties within 75 days of the date it convenes and its final report 15 
days thereafter. The submission of the final report shall not exceed 120 days from the d ate of the 
request for the panel to reconvene (Article 20.13.6 ). 
5.21.   Failure to eliminate the inconsistent measure(s) opens the door to compensation to be 
mutually agreed. Should no such agreement be found, the affected Party is authorized to suspend 
concessio ns or other obligations. Cross -sectoral retaliation is authorized as a second resort. 
Retaliation may also be challenged; in that case, the Compliance Review Panel is to reconvene, and 
it shall issue its report within a maximum of 30 days. The Agreement pr ovides for post -suspension 
review; in that case, the Compliance Review Panel is to reconvene, and provide its final report in 
accordance with the timeframes outlined in the paragraph  above . 
5.22.   Chapter 14 provides for an ISDS mechanism to settle disputes betwe en an investor of a Party 
and the other Party. Investment disputes which occurred prior to the date of entry into force of the 
Agreement cannot be brought under this mechanism, nor can it be used by nationals in their own 
country.  
5.7  Relationship with other a greements concluded by the parties  
5.23.   In Article 1.3 the Parties reaffirm their rights and obligations under the WTO Agreement and 
other agreements to which both Parties are party. A footnote makes clear that the Agreement's 
schedules are without prejudice to  the Parties' rights and obligations under the AANZFTA.  
5.24.   In the event of an inconsistency between a provision under this and any other agreement to 
which both Parties are party, they shall consult with a view to finding a mutually satisfactory solution. 
The Agreement makes clear that such question may be subject to dispute settlement. A footnote  
also clarifies that more favourable treatment under another agreement does not constitute an 
inconsistency.  
5.25.   Article 21.3 provides that if any international agreement  or part thereof referred to or 
incorporated in the Agreement is amended the Parties shall consult on whether it is necessary to 
amend the Agreement unless the Agreement provides otherwise.  
5.26.   Table 5.1 below sets out other regional trade agreements to which the Parties are party . WT/REG446/1  
 
- 36 - 
 
  Table 5.1 Indonesia and Australia: Participation in other RTAs (notified and non -notified 
in force), as of 6 August 2021  
RTA Name  Date of 
entry into 
forcea Coverage  GATT/WTO Notification  
Year WTO Provision  
AUSTRALIA  
Pacific Agreement on Closer 
Economic Relations Plus (PACER 
Plus) 13-Dec-20 Goods & Services  2021 GATT Art. XXIV & GATS Art. V  
Peru - Australia  11-Feb-20 Goods & Services  2020 GATT Art. XXIV & GATS Art. V  
Hong Kong, China - Australia  17-Jan-20 Goods & Services  2020 GATT Art. XXIV & GATS Art. V  
Comprehensive and Progressive 
Agreement for Trans -Pacific 
Partnership (CPTPP)  30-Dec-18 Goods & Services  2018 GATT Art. XXIV & GATS Art. V  
Australia - China  20-Dec-15 Goods & Services  2016 GATT Art. XXIV & GATS Art. V  
Japan - Australia  15-Jan-15 Goods & Services  2015 GATT Art. XXIV & GATS Art. V  
Republic of Korea - Australia  12-Dec-14 Goods & Services  2014 GATT Art. XXIV & GATS Art. V  
Malaysia - Australia  01-Jan-13 Goods & Services  2013 GATT Art. XXIV & GATS Art. V  
ASEAN - Australia - New 
Zealand  01-Jan-10 Goods & Services  2010 GATT Art. XXIV & GATS Art. V  
Australia - Chile 06-Mar-09 Goods & Services  2009 GATT Art. XXIV & GATS Art. V  
Thailand - Australia  01-Jan-05 Goods & Services  2004 GATT Art. XXIV & GATS Art. V  
United States - Australia  01-Jan-05 Goods & Services  2004 GATT Art. XXIV & GATS Art. V  
Singapore - Australia  28-Jul-03 Goods & Services  2003 GATT Art. XXIV & GATS Art. V  
Australia - New Zealand Closer 
Economic Relations Trade 
Agreement (ANZCERTA)  01-Jan-83 
01-Jan-89 Goods  
Services  1983 
1995 GATT Art. XXIV  
GATS Art. V  
South Pacific Regional Trade 
and Economic Cooperation 
Agreement (SPARTECA)  01-Jan-81 Goods  1981 Enabling Clause  
Australia - Papua New Guinea 
(PATCRA)  01-Feb-77 Goods  1976 GATT Art. XXIV  
INDONESIA  
Chile - Indonesia  10-Aug-19 Goods  2020 GATT Art. XXIV  
ASEAN - Hong Kong, China  11-Jun-19 Goods & Services  2021 GATT Art. XXIV & GATS Art. V  
Indonesia - Pakistan  01-Sep-13 Goods  2019 Enabling Clause  
ASEAN - Republic of Korea  01-Jan-10 
14-Oct-10 Goods  
Services  2010 GATT Art. XXIV, Enabling 
Clause & GATS Art. V  
AANZFTA  01-Jan-10 Goods & Services  2010 GATT Art. XXIV & GATS Art. V  
ASEAN - India 01-Jan-10 
01-Jul-15 Goods  
Services  2010 
2015 Enabling Clause  
GATS Art. V  
ASEAN - Japan  01-Dec-08 Goods  2009 GATT Art. XXIV  
Japan - Indonesia  01-Jul-08 Goods & Services  2008 GATT Art. XXIV & GATS Art. V  
ASEAN - China  01-Jan-05 
01-Jul-07 Goods  
Services  2005 
2008 Enabling Clause  
GATS Art. V  
ASEAN Free Trade Area (AFTA)  01-Jan-93 Goods  1992 Enabling Clause  
Global System of Trade 
Preferences among Developing 
Countries (GSTP)  19-Apr-89 Goods  1989 Enabling Clause  
ASEAN - Japan  01-Aug-20 Services  Not notified  
Developing -8 PTAb 2016 Goods  Not notified  
ASEAN Framework Agreement 
on Services (AFAS)  12-Aug-98 Services  Not notified  
a  Dates of the first entry into force for at least one of the Parties.  
b Developing -8 is an organization for development cooperation among the following countries: 
Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan and Turkey.  
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 . WT/REG446/1  
 
- 37 - 
 
  5.8  Government procurement  
5.27.   There ar e no provisions on Government procurement in the Agreement.  
5.9  Intellectual property rights  
5.28.   There are no provisions on intellectual property rights in the Agreement.  
5.10  Competition  
5.29.   Chapter 16 requires the Parties to adopt or maintain and enforce, in a non -discriminatory 
manner in terms of nationality, national competition laws that proscribe anticompetitive practices. 
Procedural fairness , including access to an independent review  or appeal, is required. The Parties 
shall also  adopt or maintain consumer protection  laws and ensure that confidential information is 
dealt with in manner that maintains confidentiality except to comply with domestic legislation. 
Transparency provisions are also included in the Chapter . 
5.30.   The provisions of the Chapter will be reviewed as pa rt of the Agreement's General Review, 
aiming at improving the provisions in relation to all entities regardless of their ownership.  
5.31.   The Agreement's dispute settlement mechanism does not apply to the Competition Chapter 
(Article 16.12).  
5.11  Environment  
5.32.   There ar e no provisions on environment in the Agreement.  
5.12  Labour  
5.33.   There are no provisions on labour in the Agreement.  
5.13  Electronic commerce  
5.34.   Chapter 13 on electronic commerce applies to measures adopted or maintained by a Party 
that affect trade by electronic means; go vernment procurement and information held or processed 
by or on behalf of a Party, or measures related to such information, including its collection, are 
outside the Chapter's scope . 
5.35.   Acceptance of electronic versions of trade administration documents is made mandatory, 
except if specified otherwise in domestic or international law, or if this would reduce the effectiveness 
of the trade administration process. The Parties are not to den y the legal validity of an electronic 
signature, except in circumstances otherwise provided for under their laws. The Parties are to adopt 
measures based on international norms with respect to electronic authentication. A best endeavour 
provision provides for the Parties to make electronic versions of trade administration documents 
publicly available . 
5.36.   The Parties are to adopt/maintain laws for the protection of personal information and 
electronic transactions consistent with principles that have been adopte d internationally. Protection 
of personal information is subject to best endeavour disciplines calling for application of non -
discriminatory practices in cases of violations of these rights; and making the Parties' different 
regimes compatible . 
5.37.   The cross -border transfer of information by electronic means linked to the conduct of business 
of a covered person shall be allowed, subject to limitations needed for achieving a legitimate public 
policy objective or for national security reasons.  WT/REG446/1  
 
- 38 - 
 
  5.38.   Local requirements for computing facilities as a condition for conducting business in that 
territory is forbidden unless any such measure was in force at the Agreement's entry into force.28 
Renewal or amendments of any such law are only possible if it results in less -restric tive measures. 
The same limitations as described in the paragraph above also apply vis-à-vis these disciplines.  
5.39.   The Agreement prohibits requiring the transfer of, or access to, the source code of software 
owned by a person of another Party as a condition f or the import, distribution, sale or use of such 
software, or of products containing such software in the territory of the Party. Certain conditionalities 
may be however maintained by Parties in the application of this principle and is subject to any 
neede d national security limitations. Moreover, this prohibition shall not affect requirements for 
patent applications or grants, subject to safeguards against unauthorised disclosure under the law 
or practice of a Party.  
5.40.   The Chapter does not provide for a cust oms duty exemption for digital products transmitted 
electronically.  
5.14  Small and medium -sized enterprises  
5.41.   There are no provisions on Small and medium -sized Enterprises (SMEs) in the Agreement. 
However, the Side letter on Economic Cooperation lists improv ing the capacity of SMEs to utili ze the 
Agreement as one of the nine priority areas for cooperation under the Agreement.  
5.15  Cooperation  
5.42.   Under Chapter 15 on Economic C ooperation , Annual Work Programmes are to specify the 
trade and investment activities designed for supporting the implementation of the Agreement . A 
Side Letter to the Chapter establishes medium -term objectives for nine priority areas and 
14 indicative focused secto rs.29 
5.43.   Implementation of th e Chapter involves the designation of focal points and the establishment 
of a Committee on Economic Cooperation, tasked with the development of the Annual Work 
Programme to be adopted (and modified  if needed) by the Agreement's Joint Committee.  
5.44.   The Agreemen t's dispute settlement mechanism does not apply to the Economic Cooperation 
Chapter (Article 20.2).  
 
28 Austral ia notes it "had a number of measures requiring the localisation of computing facilities at entry 
into force of the Agreement. These measures fall within the permissible exceptions set out in Article 13.12(3)". 
Indonesia notes "it did not implement any mea sure regarding local requirements for computing facilities on the 
Agreement’s entry into force".  
29 The Side letter can be found under the heading "Associated documents" in: 
https://www.dfat.gov.au/trade/agreements/in -force/iacepa/iacepa -text/Pages/default  (Australia ). WT/REG446/1  
 
- 39 - 
 
  ANNEX 1  
1. Table A1.1 shows tariff liberalization by Australia and Indonesia under the Agreement by total, 
agricultural and industrial products.  
2. Upon the Agreement's entry into force in 2020 , Australia liberalized  all lines for Indonesia. 
Under MFN trade, Australia ha s dutiable lines on 21.5% of agricultural products and 46.2% of 
industrial products, and the applied MFN average is 2.5%.  
3. In the case of Indonesia , the share of duty -free tariff lines applied on all products from 
Australia  in 2020 was 94.7% , compared to 12% for imports carried under MFN rates. The average 
preferential tariff faced by overall imports  from Australia in Indonesia's market was 1.6% (compared 
with an overall MFN rate of 10.1%). Exporters from Australia  faced an average tariff rate of 4.5% 
for agricultural goods and 1.1% for industrial goods, instead of the MFN average rate of 10.1% for 
both categories.  Australia thus benefitted from a relative margin of preference of 84.2% overall, 
55.4% for agricultural products and 89.1% for industrial products.  At the end of liberalization, the 
share of duty -free lines for imports from Australia  is expe cted to increase to 94.9% overall, 90% for 
agricultural products and 9 5.8% for industrial products.  
Table A1.1 Australia and Indonesia: Indicators of MFN and preferential rates for imports 
from Indonesia and Australia  
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 
(%) 
AUSTRALIA  
MFN 2020 2.5 5.0 49.4 1.0 5.0 78.5 2.8 5.0 43.8 
Indonesia  2020  0.0 0.0 100.0  0.0 0.0 100.0  0.0 0.0 100.0  
INDONESIA  
MFN 2020 10.1 11.4 12.0 10.1 10.9 7.0 10.1 11.6 13.0 
Australia  2020 1.6 31.7 94.7 4.5 44.4 88.8 1.1 25.9 95.8 
 2021 1.6 31.2 94.7 4.5 43.9 88.8 1.1 25.4 95.8 
 2022 1.6 30.7 94.7 4.4 43.4 88.8 1.1 24.9 95.8 
 2023 1.5 29.7 94.7 4.4 44.1 89.1 1.0 23.3 95.8 
 2024 1.4 28.0 94.7 4.3 43.6 89.1 0.9 21.1 95.8 
 2025 1.2 24.1 94.7 4.2 42.8 89.1 0.7 15.9 95.8 
 2026-
2029 1.2 24.4 94.8 4.2 44.7 89.6 0.7 15.9 95.8 
 2030-
2032 1.2 24.4 94.8 4.2 44.5 89.6 0.7 15.9 95.8 
 2033-
2034 1.2 24.5 94.8 4.2 45.3 89.7 0.7 15.9 95.8 
 2035-
2036 1.2 24.5 94.8 4.2 45.5 89.8 0.7 15.9 95.8 
 2040  1.2 24.6 94.9 4.2 46.2 90.0 0.7 15.9 95.8 
Note:  Tariff lines subject to in -quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded, and the ad valorem  parts of alternate rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based  on data from WTO -IDB (Australia) and data provided by Indonesia.  
 
4. Table A1.2 shows the market access opportunities in Australia for Indonesia's top 25 exports, 
which in 2017 -2019 covered 35 HS lines and accounted for 47.8% of Indonesia global exports. 
19 HS lines were already duty free on an MFN basis in Australia's market in 2020; the remin ing 16 
lines were liberalized in 2020.  WT/REG446/1  
 
- 40 - 
 
  Table A1.2 Australia: Market access opportunities under the agreement for Indonesia's 
top 25 exports to the world  
Indonesia's top export products in 2017 -19 Access Conditions to Australia's markets  
HS number and description  Share in 
global 
exports 
(%) MFN 2020  
No. of duty 
free lines 
under  
the Agr ee-
ment , 2020  
Remain 
Dutiable  Average 
Tariff (%)  Number  of 
lines  
Duty -
free Dutia -
ble 
270119  Coal 7.4 0 1    
151190  Palm oil and its fractions  7.3 0 1    
270112  Bituminous coal  3.7 0 1    
271111  Natural gas, liquefied  3.6 0 1    
400122  Technically specified natural rubber "tsnr"  2.4 0 1    
270900  Petroleum oils and oils obtained from 
bituminous minerals, crude  2.3 0 2    
151110  Crude palm oil  2.3 0 1    
271121  Natural gas in gaseous state  1.8 0 2    
260300  Copper ores and concentrates  1.7 0 1    
270210  Lignite  1.7 0 1    
710812  Gold 1.4 0 1    
470329  Semi-bleached or bleached non -coniferous 
chemical wood pulp, soda or  1.4 0 1    
711319  Articles of jewellery and parts thereof  1.2 5  1 1  
720260  Ferro-nickel  1.0 0 1    
382319  Fatty acids, industrial, monocarboxylic; acid 
oils from refining  1.0 5  1 1  
800110  Unwrought tin, not alloyed  0.8 0 1    
870322  Motor cars and other motor vehicles 
principally designed for the transport  0.8 5  4 4  
151329  Palm kernel and babassu oil and their 
fractions  0.8 0 1    
030617  Frozen shrimps and prawns  0.8 0 1    
401110  New pneumatic tyres, of rubber, of a kind 
used for motor cars  0.8 5  1 1  
441231  Plywood consisting solely of sheets of wood  0.8 5  1 1  
640319  Sports footwear  0.7 5  1 1  
870323  Motor cars and other motor vehicles 
principally designed for the transport  0.7 5  4 4  
480256  Uncoated paper and paperboard  0.7 5  2 2  
640411  Sports footwear  0.6 2.5 1 1 1  
Total of above  47.8 1.7 19 16 16 - 
Note:  For the calculation of averages, specific rates are excluded, and the ad valorem  parts of alternate 
rates are included.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data from WTO -IDB and UNSD Comtrade Database.  
 
5. Table A1.3 shows the market access opportunities in Indonesia for Australia's top 25 exports, 
which in 2017 -2019 covered 110 HS lines and accounted for 62.8% of Australia global exports. 
29 HS lines were already duty free on an MFN basis in Indonesia's market in 2020. 64 lines  were 
liberalized in 2020 and one line is scheduled for liberalization in 2023. At the end of implementation, 
16 lines representing three products – wine, medium oils and food preparations  - will remain dutiable 
for imports from Australia ; in 2020 these products faced an average MFN tariff ranging from 1.3% 
to 90% . WT/REG446/1  
 
- 41 - 
 
  Table A1.3 Indonesia: Market access opportunities under the agreement for Australia's 
top 25 exports to the world  
Australia's top export products  
in 2017 -19 Access Conditions to Indonesia 's markets  
HS number and description  Share in 
global 
exports 
(%) MFN 2020  Number  of duty 
free lines under 
the agreement  
Remain 
Dutiable  
Average 
Tariff 
(%) No. of 
duty-
free 
lines  No. of 
dutia -
ble 
lines  2020  2023  
260111  Non-agglomerated iron 
ores and concentrates  21.6 0.0 2     
270112  Bituminous coal  18.3 5.0  2 2   
710813  Gold 5.8 5.0  1 1   
270900  Petroleum oils and oils 
obtained from  1.7 0.0 3     
260300  Copper ores and 
concentrates  1.7 0.0 1     
020230  Frozen, boneless meat 
of bovine animals  1.5 5.0  1 1   
100199  Wheat and meslin  1.3 3.0 2 3 3   
510111  Greasy shorn wool  1.0 5.0  1 1   
020130  Fresh or chilled bovine 
meat, boneless  1.0 5.0  1 1   
740311  Copper  1.0 5.0  1 1   
760110  Aluminium  0.9 0.0 1     
260800  Zinc ores and 
concentrates  0.7 5.0  1 1   
220421  Wine of fresh grapes  0.7 90.0  5   5 
271019  Medium oils and 
preparations  0.6 1.3 12 4 1  3 
300490  Medicaments  0.6 4.5 3 26 26   
281820  Aluminium oxide  0.6 0.0 1     
880330  Parts of aeroplanes or 
helicopters  0.5 0.0 1     
020442  Frozen cuts of sheep, 
with bone in  0.5 5.0  1  1  
790111  Unwrought zinc  0.5 0.0 1     
520100  Cotton  0.5 0.0 1     
210690  Food preparations  0.4 44.0  30 22  8 
261690  Precious -metal ores 
and concentrates  0.4 5.0  1 1   
100390  Barley  0.4 0.0 1     
253090  Arsenic sulfides, 
alunite, pozzuolana,  0.4 5.0  2 2   
120510  Low erucic acid rape or 
colza seeds  0.4 5.0  1 1   
Total of above  62.8 7.9 29 81 64 1 16 
Note:  Tariff lines subject to in-quota rates are excluded in the computation. For the calculation of 
averages, specific rates are excluded.  
 Based on the HS 2017 nomenclature.  
Source:  WTO estimates based on data provided by Indonesia and UNSD Comtrade Database.  
  
  WT/REG446/1  
 
- 42 - ANNEX 2  
Table A2.1 Indonesia TRQs  under the Agreement (8)a 
Product  Year and Quantity  
(metric tonnes unless stated)a Quota Rate  
Remarks  In-
quota  Out-of-quota  
Live cattle (TRQ1)  
0102.29.19  2020: 281,215 head of cattle  
2021: 598,000  head of cattle  
2024: 672,669 head of cattle  
2025 onwards: 700,000 head of cattle  Free 2.5%  2020-2024: Quantity increased annually by 4%  
TRQ to be reviewed in 2025  
Potatoes (TRQ2)  
0701.90.10 and 0701.90.90   
2020: 4,890.71  
2021-2024: 10,000  
2025: 12,500  
2029: 13,798  
2030 onwards: annual increase of 2.5%   
10% 
10% 
5% 
5% 
5% (AANZFTA rate ) 
25% 
25% 
18.75%  
18.75%  
18.75%  As from 2025, quantity increased annually by 
2.5%  
TRQ to be reviewed in accordance with 
Article  21.5 
Carrots (TRQ3)  
0706.10.10  2020: 2,445.35  
2021-2024: 5,000  
2025-2029: 7,500  
2030-2034: 10,000  
As from 2035, fully liberalized  10% 
10% 
5% 
Free 
- 12.5%  
12.5%  
10% 
7.5%  
- TRQ to be reviewed in accordance with Article 
21.5 
Oranges (TRQ4)  
0805.10.10  2020: 4,890.71  
2021: 10,500  
2030: 15,513  Free (AANZFTA rate)  
Free In practice free from entry into force  (AANZFTA 
rate) 
Starting in 2031, the quantity shall increase at 
a compounded annual growth rate of 5%.  
Mandarins, Clementines, Wilkings  
and similar citrus hybrids (TRQ5)  
0805.21.00 - 0805.22.00 - 
0805.29.00   2020: 3,668.03  
2021-2029: 7,500  
2030-2034: 7,500  
2035-2039: 10,000  
As from 2040, fully liberalized  10% 
10% 
5% 
Free 
- 18.75%  
18.75%  
10% 
5% 
- TRQ to be reviewed in accordance with Article 
21.5 
Lemons and Limes (TRQ6)  
0805.50.10 - 0805.50.20  2020: 2,445.35  
2021: 5,125  
2030: 6,244  Free (AANZFTA rate)  
Free In practice free from entry into force  (AANZFTA 
rate) 
Starting in 2031, the quantity shall increase at 
a compounded annual growth rate of 2.5%.  
Feed grains (TRQ7)  
1001.99.99 - 1003.90.00 - 
1007.90.00  2020: 244,535  
2021: 525,250  
2030: 775,664  Free (AANZFTA rate)  
Free In practice free from entry into force  (AANZFTA 
rate) 
Starting in 2031, the quantity shall increase at 
a compounded annual growth rate of 5 % 
Hot/cold rolled steel coil (TRQ8)  
7208.39.90 - 7209.17.10 - 
7209.18.99  2020: 122,267  
2021: 262,500  
2029: 387,832  
2030 onwards: annual increase of 5%  Free (AANZFTA rate)  
2.5%  
5% for HS 
7209.17.10  Quantity increased annually by 5% TRQ to be 
reviewed in accordance with Article 21.5  
a Pro-rata quantity as from 5 July 2020  (date of entry into force).  
__________