G/LIC/Q/IDN/47  
 
26 April 2022  
(22-3311) Page: 1/2 
Committee on Import Licensing  Original: English  
 
IMPORT LICENSING SYSTEM OF INDONESIA  
REPLIES BY INDONESIA TO THE QUESTIONS FROM JAPAN1  
Import Restriction: Compulsory Registration by Importers of Steel Products  
The following communication , dated 20 April 2022, is being circulated at the request of the 
delegation of Indonesia.  
 
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Under the Ministry of Trade Regulation No. 3/2020, which stipulates the import license of steel 
products, Indonesia issues import licenses in limited quantities th at do not meet the quantities 
applied for by importers in some cases. Japan is concerned that this import licensing system is a 
non-automatic licensing system with trade -restrictive and trade -distortive effects on imports and an 
import restriction and  is accordingly inconsistent with Article 3.2 of the Agreement on Import 
Licensing Procedures and Article XI:1 of the GATT 1994.  
In addition, the Ministry of Industry Regulation No. 1/2019, which stipulates requirements of 
Technical Consideration to be provided  by the Ministry of Industry that the Ministry of Trade requires 
to issue the aforementioned import licenses of steel products, was amended in 2021 by the Ministry 
of Industry Regulation No. 4/2021. Article 12.A amended by the Ministry of Industry Regulati on 
No. 4/2021 stipulates that the Director General of the Ministry of Industry takes into account 
domestic supply -demand balance when deciding whether or not to issue a Technical Consideration. 
Japan is concerned that this article also demonstrates that th e measure is an import restriction with 
trade -restrictive and –distortive effects on imports and is itself inconsistent with Article 3.2 of the 
Agreement on Import Licensing Procedures and Article XI:1 of the GATT 1994. Therefore, Japan 
would like to reque st that Indonesia ensure that the import licensing system of steel products is 
implemented in a manner that is consistent with the relevant WTO Agreements.       
Japan would also like to submit to Indonesia the following specific request and questions rega rding 
this import licensing system.  
Request  
Japan requests that the Government of Indonesia ensure that the import licenses are issued 
automatically, without delays, and without limiting the quantities applied for by the importers.  
Question  
Could Indonesia please explain the respective specific rea sons and concrete criteria for 
restricting the quantities applied for when issuing the import licenses for steel products 
(for both the API -P license and the API -U license)? Could Indonesia also kindly clarify the 
particular provisions of the relevant laws  and regulations in which such reasons and 
criteria are provided?  
 
 
1 Circulated on 9 July  2021 in document G /LIC/Q/IDN/45 . G/LIC/Q/IDN/47  
 
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  Reply :  
 
The main aim of the regulation is to ensure that all steel products entering the Indonesian Market 
comply with the standards, specifications, and qualifications related to health and safety aspects for 
the use of the imported steel products. Indonesia also ensure s that the implementation of the 
regulation s align to the WTO requirements on trade barriers, as the licensing process is done 
electronically with transparent inform ation and clear rule. Th e import approval is processed in a 
relatively short time-period and  within the timeframe in line with the Import Licensing Agreement . 
 
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