WT/TPR/M/401/Add.1  
17 February 2021  
(21-1322) Page: 1/317 
Trade Policy Review Body  
9 and 11 December 2020  Original: English/Spanish  
anglais/espagnol  
inglés/español  
 
  
TRADE POLICY REVIEW  
INDONESIA  
MINUTES  OF THE MEETING  
Addendum  
Chairperson: H.E. Mr. Harald Aspelund (Iceland)  
This document contains the advance written questions  and additional questions by WTO 
Members , and replies provided by  Indonesia .1 
 
 
Organe d'examen des politiques commerciales  
9 et 11 décembre 2020  
EXAMEN DES POLITIQUES COMMERCIALES  
INDONESIE  
COMPTE RENDU DE LA REUNION  
Addendum  
Président : S.E.  M. Harald Aspelund (Islande)  
Le présent document contient les questions écrites communiquées à l'avance par les 
Membres de l'OMC, leurs questions additionnelles, et les réponses  fournies par  Indonésie .1 
 
 
Órgano de Examen de las Políticas Comerciales  
9 y 11 de diciembre de 2020  
EXAMEN DE LAS POLÍTICAS COMERCIALES  
INDONESIA  
ACTA DE LA REUNIÓN  
Addendum  
Presidente: Excmo.  Sr. Harald Aspelund (Islandia)  
En el presente documento figuran las preguntas presentadas anticipadamente por escrito  y 
las preguntas adicionales de los Miembros de la OMC,  así como las respues tas facilitadas por  
Indonesia .1 
 
1 In English and Spanish only./En anglais et espagnol seulement./En inglés y español solamente.  WT/TPR/M/401/Add.1  
 
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  Contents  
DOMINICAN REPUBLIC  ................................ ................................ ................................ .........  4 
BRAZIL  ................................ ................................ ................................ ................................ .. 6 
REPUBLIC OF KOREA  ................................ ................................ ................................ ...........  16 
ADDITIONAL QUESTIONS REPUBLIC OF KOREA  ................................ ................................ .. 19 
CANADA  ................................ ................................ ................................ ..............................  20 
ARGENTINA  ................................ ................................ ................................ .........................  45 
PERU  ................................ ................................ ................................ ................................ ... 47 
CHILE  ................................ ................................ ................................ ................................ .. 48 
AUSTRALIA  ................................ ................................ ................................ .........................  59 
UNITED STATES  ................................ ................................ ................................ ..................  74 
COLOMBIA  ................................ ................................ ................................ ..........................  92 
UNITED KINGDOM  ................................ ................................ ................................ .............  112  
CHINESE TAIPEI  ................................ ................................ ................................ ...............  126  
NEW ZEALAND  ................................ ................................ ................................ ..................  132  
MALAYSIA  ................................ ................................ ................................ .........................  138  
ADDITIONAL QUESTIONS MALAYSIA_1  ................................ ................................ ............  144  
ADDITIONAL QUESTIONS MALAYSIA_2  ................................ ................................ ............  149  
SINGAPORE  ................................ ................................ ................................ .......................  151  
EUROPEAN UNION  ................................ ................................ ................................ ............  160  
SWITZERLAND  ................................ ................................ ................................ ..................  190  
NORWAY  ................................ ................................ ................................ ...........................  194  
JAPAN  ................................ ................................ ................................ ...............................  197  
PHILLIPINES  ................................ ................................ ................................ .....................  213  
RUSSIAN FEDERATION  ................................ ................................ ................................ ...... 240  
INDIA  ................................ ................................ ................................ ...............................  251  
ADDITIONAL QUESTIONS INDIA  ................................ ................................ .......................  253  
UKRAINE  ................................ ................................ ................................ ...........................  261  
KAZAKHSTAN  ................................ ................................ ................................ ....................  272  
SAUDI ARABIA  ................................ ................................ ................................ ..................  276  
CHINA  ................................ ................................ ................................ ...............................  277  
THAILAND  ................................ ................................ ................................ .........................  293  
ADDITIONAL QUESTIONS THA ILAND  ................................ ................................ ................  301  
TURKEY  ................................ ................................ ................................ .............................  305  
ADDITIONAL QUESTIONS TURKEY  ................................ ................................ ....................  306  
ICELAND  ................................ ................................ ................................ ...........................  311  
CAMBODIA  ................................ ................................ ................................ ........................  312  WT/TPR/M/401/Add.1  
 
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  MEXICO (TPRQA)  ................................ ................................ ................................ ..............  313  
PAKISTAN (TPRQA)  ................................ ................................ ................................ ..........  317  
 
  WT/TPR/M/401/Add.1  
 
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  DOMINICAN REPUBLIC  
PREGUNTAS  
RESUMEN  
Pág. 13  
 
Párrafo 18 "En 2014 se promulgó una ley sobre la normalización y evaluación de la conformidad que 
abarca la metrología. A principios de mayo de 2020, Indonesi a contaba con un total de 10.858 normas 
nacionales (SNI), de las cuales cerca del 18% estaban armonizadas con normas internacionales. En 
febrero de 2020 había 205 reglamentos técnicos en vigor, la mayoría de ellos publicados por el Ministerio 
de Industria.  Varias Miembros han planteado preocupaciones comerciales específicas sobre la evaluación 
de la conformidad en relación con medidas aplicadas a diversos alimentas elaborados y sin elaborar (en 
particular con respecto a las prescripciones halal), juguetes, productos cerámicos, teléfonos móviles y 
computadoras, equipos de banda ancha y bebidas alcohólicas. Se han introducido nuevos requisitos de 
etiquetado para los productos alimenticios, los productos halal, el tabaco, los motores eléctricos, los 
acondiciona dores de aire, los refrigeradores y las lámparas fluorescentes. Además, en el caso de 
determinados productos importados, esos requisitos se han modificado para que resulten menos 
onerosos."  
 
Question:  
1. !Podrían ampliar la información correspondiente a los requisitos referidos a los productos importados?  
 
Answer:  
 
The Indonesian Standardization and Conformity Assessment technical regulation is based on Law No. 
20/2014 and Government Regulation No. 34/2018. For the safety, security reaso n, public health, 
environmental functions and/or economic considerations, as well as, efficient management of natural 
resources, Indonesian National Standard (SNI) may become mandatory through technical regulations.  
 
As of February 2020, there are 205 mand atory technical regulation of SNI. Imported product types not 
listed in the 205 technical regulations are voluntary.  
 
More information about the list of technical regulation in Indonesia, please visit: 
https://www.bsn.go.id/main/bsn/isi_bsn/20054/regulasi -teknis -sni-yang-diwajibkan .  
 
1.2 EVOLUCIÓN ECONÓMICA RECIENTE  
1.2.4 Políticas estructurales  
1.2.4.5 Otros asuntos  
Pág.32  
 
Párrafo 1.18.  "Se han adoptado m edidas tanto a nivel central como regional para desarrollar las 
mipymes integrándolas en grupos, lo que permite que se formen redes de empresas similares y así se 
generen mayores economías de escala y se favorezca una creación de capacidad más eficaz (secc iones 
3.2.4, 3.2.5 y 3.3.1.2).49 Varios programas de incentivos están destinados a las mipymes (sección 
3.3.1.2). En el marco de la Estrategia Nacional de Desarrollo de las Cooperativas y las Mipymes 
2020-2024, el programa de desarrollo de grupos de mipyme s del BI tiene por objeto reducir el déficit 
por cuenta corriente, fomentar el crecimiento inclusivo y reducir las presiones inflacionistas.50 Esta 
centrado en tres actividades principales: agricultura, pesca y ganadería y economía creativa. El BI 
fomenta el desarrollo de las mipymes orientadas a la exportación centrándose en los principales 
productos de las regiones con alto potencial de exportación, así como en los productos relacionados con 
el turismo, como los tejidos, la artesanía y el café."  
 
Question : 
 
2. !Sería posible tener acceso a más información respecta a la Estrategia Nacional de Desarrollo de las 
Cooperativas y las Mipymes 2020 -2024?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
The information is available in Bahasa and can be accessed on www.depkop.go.id or social media of 
Ministry of Cooperatives and SME Republic of Indonesia @KemenkopUKM (Instagram).  
 
The National Strategy of Cooperative and MSMEs 2020 –24 is currently under review.  The existing 
national framework on Cooperative and MSMEs comprise of:  
a. 3 pillar on enhancing: capacity and competence, availability of friendly financial institution; and 
coordination among related ministry and or national institution in supporting MSMEs ecosystem.  
b. 6 strategy: market access expansion of trade in goods and services; incre asing competitiveness; 
accelerating investment and financing; development of management and MSMEs business capacity; 
easy doing business; and coordination among Ministerial Sector on MSMEs.  
c. 18 national action plan and 75 activities which among other are:   enhancing consumption of MSMEs 
products; promoting MSMEs local brand globally; developing MSME joint production house; 
assistance for MSMEs in obtaining national and international standard and certification; enhancing 
business matching and partnership amo ng larger enterprise and MSMEs; and developing MSME 
logistical system  
 
On 5th March 2020, Ministry of Cooperatives and MSMEs initiated the formation of a national strategic 
plan (Stranas) related to the development of MSMEs in Indonesia. This formation inv olved 18 (eighteen) 
Ministry and or National Institution dealing with their own sectoral MSMEs.  WT/TPR/M/401/Add.1  
 
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  BRAZIL  
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
II TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES  
 
Page 16 (Para 35)  
 
The COVID -19 pandemic has had  a serious impact on the sector; as at end -June 2020, more than 
2,000  hotels were closed, and almost all tourism destinations, amenities and facilities had been stopped. 
Indonesia saw a 45% drop in visitor arrivals over the period from January to April 202 0, compared with 
the same period in 2019.  
 
Questions:  
 
1. Has there been any econometric simulation - by means, for example, of a computable general 
equilibrium (CGE) model - to quantify the impact of the COVID -19 pandemic shock on the tourism 
sector and over all Indonesian economy?  
2. If so, what were the main assumptions made in order to structure the COVID -19 external shock?  
 
Answer:  
 
Currently, Indonesia has not conducted any econometric simulation regarding the impact of COVID -19 
pandemic on tourism sector.  
 
Overall, the Covid -19 pandemic gives impacts to the decline of economic growth in many sectors, 
reflected through its second quarter economic growth of minus 5.32%, followed by the third quarter of 
minus 3.49%, one of which is tourism services sector.  
 
Page 22 (Para 1.4)  
 
According to UNCTAD estimates, in 2017, Indonesia ranked 13th (15th in 2010) among the world's 
25 top exporting developing economies by GVC participation rate; its GVC participation in exports (50%, 
mostly downstream) stood below the average of both the developed (60%) and developing (56%) 
exporting economies.  
 
Questions:  
 
3. Which factors lie behind the alleged limited integration of the Indonesian economy into regional and 
global value chains (RVCs and GVCs)?  
4. What is the  reason for the relative stability of the GVC participation rate of the Indonesian export 
sector during the period under review?  
5. What are the main sectors/products of the Indonesian economy when participation in GVCs or RVCs 
is accounted for?  
 
Answers:  
 
3. According to UNCTAD definition, GVC participation indicates the portion of a country 's exports that 
is part of a multi -stage trade process, by adding to the foreign value added used in a country 's own 
exports also the value added supplied to other countries ' exports. In other words, it is the foreign 
value added used in a country 's exports (upstream perspective) plus the value added supplied to 
other countries ' exports (downstream perspective), divided by total exports.  
The factor lies behind the limited int egration of the Indonesian economy into Regional and Global 
Value Chains (RVCs and GVCs) is due to the fact that Indonesia 's export products are high in 
domestic value added (downstream perspective/downstream component) and low in foreign value 
added. It m eans that Indonesia has quite a high percentage of GVC 's forward participation instead 
of backward participation, which shows that Indonesia exports is more on raw materials / 
intermediate products.  
 WT/TPR/M/401/Add.1  
 
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  Indonesia 's export structure is dominated by primary pro ducts with a share of 51.3% in 2019 
compared to manufactured products which have a share of 48.7%. The total share of exports of 
primary and manufactured products (in category of labour -intensive and resource -intensive and 
low-skill and technology -intensiv e) in 2019 reached 75.7%. Therefore, export for the other products 
which relatively having high GVC category is only about 24.3%.  
 
4. There are three reasons for the relative stability of the GVC participation rate of the Indonesian 
export sector. First, Indo nesia is a large economy whose GDP depends mostly on domestic 
consumption. Second, there are no significant changes in the Indonesia 's export structure during 
the period under review. Third, Indonesia 's FDI trend during period 2015 -2019 are negative both i n 
manufactured as well as primary sector which are respectively grew about -4.39% and -7.0%. These 
two factors are considered the reason why Indonesia 's GVC is still relatively stable.  
 
5. Based on UNCTAD -EORA GVC Database, there are several commodities/secto rs that have the 
highest percentage of domestic value added in 2015 out of the 77 commodities such as: Food Crops, 
Fish Products, Beverages and others.  
 
Page 25 (Para 1.7)  
 
During the review period, an accommodative monetary policy mix, adapted to changing external 
conditions, focused on maintaining macroeconomic stability and sustaining economic growth momentum 
amid heightened global uncertainty. Various instruments were used, including lowering the monetary 
policy rate, reducing the statutory rese rve requirement, exchange rate flexibility, and foreign exchange 
intervention.  
 
Question:  
 
6. While setting the policy interest rate does the Bank of Indonesia (BI) take into account - formally or 
not - the effect of its decision on its major trading partners , more specifically the ASEAN economies?  
 
Answer:  
 
While setting the policy interest rate Bank Indonesia always monitors the dynamics and interaction of 
the global economy and financial markets, including members countries from ASEAN and its impact on 
the Indonesian economy.  
 
Page 25 (Para 1.8)  
 
Since 14 August 1997, the rupiah has had a de jure free floating exchange arrangement, and the de 
facto arrangement remains floating. Indonesia maintains an exchange rate system free of restrictions 
on payments and transfers for current international transactions. According to the IMF, exchange rate 
flexibility remains critical to the economy's resilience to external shocks. During the review period, 
exchange rate policy was focused on maintaining exchan ge rate stability at about the level of 
fundamentals, so as to serve as a tool for mitigating shocks from external factors.  
 
Question:  
 
7. Is there any formal or informal rule to the Indonesian rupiah in order to avoid its REER from moving 
along an unstable o r random trajectory, thereby deviating from its ASEAN major trading partners?  
 
Answer:  
 
BI practices prudent policy and close formal coordination with the government and other authorities to 
ensure macroeconomic and financial stability are intact while try ing to mitigate the negative impact of 
the global pandemic. In this regard, BI conducts pre -emptive assessment ahead of the curve monetary 
stabilization to prevent the risks of crisis and global economic headwinds.  
 WT/TPR/M/401/Add.1  
 
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  To stabilise the rupiah exchange rates, Bank Indonesia has consistently pursued an exchange rate policy 
to keep the Rupiah in line with its fundamental value while maintaining the operations of the market 
mechanism. The Rupiah stabilization policy was adopted to prevent excessive rupiah volatili ty so as to 
support the expectations and facilitate decision making of economic agents.  
 
In addition, international cooperation is essential to tackle this extraordinary global crisis. Therefore, 
Bank Indonesia also continues to strengthen the Internationa l Financial Safety Net (JPKI) as a second 
line of defense.  
 
Page 40 (Para 2.11)  
 
During the review period, Indonesia's trade and investment policy vision was set within the broader 
framework of the Master Plan of National Industry Development 2015-35. The Master Plan's objective 
is international industry cooperation, with the aim of: protecting and increasing market access for local 
industry products; opening industrial resource access to support the enhancement of local industry 
productivity a nd competitiveness; increasing the integration of local industry into the global supply 
chain; and increasing industrial investment cooperation to develop local industry. The targets of 
developing international industry cooperation include increasing: the number of countries as export 
destinations of industrial products; the access of national industry to the utilization of industrial 
resources through technical cooperation; the utilization of global supply chain networks; and the number 
of industrial inves tment forums in foreign countries.  
 
Questions:  
 
8. Has the objective of "increasing the integration of local industry into de global supply chain" been 
part of Indonesia's industrial policy?  
9. What policy measures have been advanced/proposed/implemented to guar antee the fulfilment of 
that objective?  
 
Answer:  
 
8. The objective of developing the integration of local industry into the global supply chain has been 
part of the Master Plan of National Industry Development 2015 -35. 
9. In order to support the local industry t o achieve certain Member's national standard, Indonesia has 
been cooperating with relevant international body/standards such as CBI Netherland, CIPO 
Switzerland, and Bandung Institute of Technology -Germany. This cooperation aims at enabling 
Member to be a supplier of end -user such as cocoa, coffee, etc.  
 
Page 46 (Para 2.26)  
 
During the review period, Indonesia remained active in WTO dispute settlement activities. As at January 
2020, its involvement in new cases comprised: 6 complaints by Indonesia (1 case i n consultation); 
10 complaints against it (4 cases in consultation); and its participation as a third party in 39 cases.  
 
Questions:  
 
10. Could you please indicate whether Indonesia is negotiating arbitration agreements or alternative 
dispute settlement arrang ements in the context of the current crisis of the Appellate Body?  
 
Answer:  
 
As a supporter of the rule -based multilateral trading system and an active user of the WTO dispute 
resolution system, Indonesia is open to jointly develop solutions, so that the rights and obligations of 
WTO members are protected. Indonesia remains open to any solutions, including namely Multi -party 
Interim Appeal Arbitration Arrangement (MPIA), and is studying the initiative seriously in particular as 
to how MPIA would be operati onalized.  
 
 WT/TPR/M/401/Add.1  
 
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  Page 62 (Para 3.4)  
 
During the review period, export taxes on certain commodities remained a tool for attaining several 
policy objectives, and a withholding tax was introduced; the export taxes' product coverage remained 
relatively unchanged, but the rates were revised. The scope of export prohibitions and licensing was 
slightly expanded, and some new requirements were added. Indonesia continued to support exports 
through tax and non -tax incentives available via free trade zones, bon ded zones, export -orientated 
production entrepôts and special economic zones (SEZs) schemes, two of which allow for corporate tax 
holidays.  
 
Questions:  
 
11. To what extent has the constitution of free trade zones, bonded zones, export -oriented production 
entre pôts and special economic zones (SEZs) been instrumental to the Indonesian economic 
development process, through product and export diversification and trade integration with regional 
partners (mainly in ASEAN)?  
12. In the same vein, has the creation of free t raded zones, bonded zones, export -orientated production 
entrepôts and SEZs schemes in Indonesia been organic to its participation in GVCs or RVCs?  
 
Answer:  
 
11. The constitution of those zones has been instrumental to the Indonesian economic development 
proces s to the extent that they provide support needed by domestic businesses to expand their 
production or commercial activities.  
12. The creation of those zones has been organic for Indonesia 's participation in GVCs or RVCs in the 
sense that the zones provide supp orts needed by domestic businesses to expand their production 
or commercial activities.  
 
Page 74 (Para 3.37)  
 
As indicated by the World Bank, while Southeast Asian countries have exhibited an overall trend toward 
tariff reduction, Indonesia has hiked impor t tariff rates further, increasing the cost and/or reducing the 
quality of productive inputs and consumer goods; empirical evidence has shown that increasing tariff 
rates tends to reduce the productivity and output of firms in protected sectors, as diminis hed import 
competition weakens incentives to invest and increase efficiency.  
 
Question:  
 
13. How to reconcile the movement toward increased import tariff rates in Indonesia with the overall 
trend toward tariff reduction in other ASEAN partner countries when allowance is made for the 
growing trade integration between these economies?  
 
Answer:  
 
Indonesia 's commitment under its regional trade agreement (ASEAN) prevails. As of 2020, ASEAN is 
virtually tariff -free, with tariffs on 98.6% of products fully eliminated under the ASEAN Trade in Goods 
Agreement (ATIGA). The ASEAN -6 have eliminated tariffs on 99.3% of their tariff lines, while the CLMV 
have eliminated tariffs on 97.7% of their tariff lines.  
 
In conclusion, Indonesia still keeps its  trade integration commitment with ASEAN while exercising our 
rights as a WTO member to adjust the tariff rates accordingly. In terms of Indonesia 's commitments 
under the ASEAN FTA agreements with its partners, Indonesia abides with the rules of the schedu le of 
tariff commitments.  
 
Page 199 (Para 4.196)  
 
Furthermore, in 2019, the BI issued the Indonesia 2025 Payment System Vision, which contains 
five elements: (i) supporting the integration of national digital economy and finance; (ii) supporting WT/TPR/M/401/Add.1  
 
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  banking di gitalization; (iii) guaranteeing the interlink between fintech and banking; (iv) ensuring the 
balance between innovation, consumer protection and healthy business competition; and (v) 
safeguarding national interests in cross -border digital economy and fina nce. It was followed up by the 
issuance of the Indonesia Payment Systems Blueprint (IPSB), which contains five initiatives to achieve 
the Vision, namely: (i) open banking; (ii) retail payment systems; (iii) financial market infrastructure; 
(iv) data; and ( v) regulatory, licensing and supervision elements. These initiatives are to be 
implemented simultaneously by five working groups under the BI. The IPSB 2025 set the course for the 
development of the digital economy and finance, seeking to ensure continuity  in the functions performed 
by the BI and in support of economic and financial inclusion. As indicated by the authorities, one initiative 
that has already been implemented was the launch, in August 2019, of the Quick Response Code 
standard (the QR Code Ind onesian Standard (QRIS)) for payments through server -based e -money 
applications, electronic wallets and mobile banking; this has been fully implemented since January 2020.  
 
Questions:  
 
14. How is the supervision structure and who is primarily responsible for e nsuring the confidentiality of 
personal data for digital operations?  
15. Which are the prospects for QRIS for cross -border operations? Is there legislation and infrastructure 
that allows these operations for specific countries or economic blocs?  
 
Answer:  
 
14. As stipulated in Bank Indonesia Act, the task of regulating and safeguarding the payment system is 
the authorization of Bank of Indonesia (BI). Moreover, with regards to the implementation of the 
QRIS standards, BI has the authority to supervise the Payment Sy stem Service Provider and 
Switching agency, and if necessary, BI may also conduct supervision in relation with QRIS trasaction 
processing, to a party cooperating with the Payment System Service Provider. In this case the 
supervision activities conducted by  the Financial System Surveillance Department in BI. The 
supervision includes off site and on -site supervision.  
 
BI regulations require the payment systems provider to ensure the safe and robustness of the 
system, including the safety and confidentiality o f the data, IT audit, standard operating procedure 
and certification. Keeping the confidentiality of the data is one of the obligations of the payment 
systems provider. However, all parties in payment transaction processing have responsibilities for 
confid entiality of personal data. Each party has different duties to ensure the confidentiality of data.  
 
15. BI has plans to facilitate the interoperability of cross border QRIS. It is currently in pilot with Thailand 
and expected to go live in the short term. QRIS  is developed based on the European Master Visa 
Co. (EMV Co) standard which facilitates interoperability between providers and instruments for 
cross-border interoperability.  
 
Page 201 (Para 4.201)  
 
As at the time of the previous Review, foreign banks seeking to establish operations, including opening 
a branch in the country, must be rated "A" by a leading international rating agency; rank among the 
200 largest banks in the world, by total assets; have paid -up operating funds of at least IDR 3 trillion;  
and have permission from their home market regulator. Foreign banks may establish branches and 
sub-branches in 12 major cities in Indonesia. However, in line with the banking consolidation policy, the 
OJK imposed a moratorium on new banking licences for b oth domestic and foreign investors. Instead, 
investors are directed to invest in existing banks, in accordance with relevant regulations. In order to 
support these initiatives, banks are exempt from both the Single Presence Policy, and limitations on 
comme rcial bank share ownership.  
 
Questions:  
 
16. Are there any restrictions on mergers and acquisitions in the operation of foreign institutions?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
There are several criteria that must be fulfilled by foreign institutions wishing to invest in Indonesian 
banking sector.  
 
According to Government Regulation No. 29 of 1999, foreign institutions are only allowed to own up to 
99% of the Bank's shares and must also comply with the shareholding limit based on OJK Regulation 
(Peraturan OJK/POJK) No. 56/POJK.03/2016 concerning Shares Ownership in Commercial Banks.  
 
In addition, institutions which are interested in conducting merger and acquisition shall also comply with 
requirements set out in POJK No. 41/POJK.03/2019 concerning Merger, Consolidation, Acquisition, 
Integration and Conversion of Commercial Banks. Both regulations are implemented in 
non-discriminatory basis.  
 
When controlling shareholders own more than one bank, OJK encourages shareholders to consolidate 
the banks or form a banking group and appoint a par ent bank in the banking group according to POJK 
No. 12/POJK.03/2020 concerning Commercial Banking Consolidation.  
 
17. Is there a limitation for foreign organizations to carry out cross -border operations?  
 
Answer:  
 
According to the Banking Law (Law No. 10 of 19 98 Concerning Amendment of Law No. 7 of 1992 
Concerning Banking), every institution who wishes to carry out a banking service in Indonesia shall 
establish a commercial presence in the territory of Indonesia, including any cross -border banking 
services.  
 
Page 202 (Para 4.202)  
 
Key developments in the banking sector over the review period included (…) additionally, in response 
to COVID -19, the OJK provided stimulus through the issuance of new regulations for banking, capital 
markets, and the nonbanking financial industry. 279 These stipulate, inter alia, provisions on finance 
restructuring for debtors affected by COVID -19; the conduct of relaxation  
policies for credit quality assessment; written orders for handling bank and non -bank financial institution 
problems; banning short -sell transactions; allowing buy -back without prior approval from the 
Shareholders General Meeting, for issuers and public companies; implementing trading halts; and 
modifying the auto rejection threshold.  
 
Question:  
 
18. Was there any problem with the distribution of liquidity, that is, resources for credit to companies 
and individuals were not made available and were retained in banks?  
 
Answer:  
 
Currently, the liquidity of banks in Indonesia remains ample. Banks are able to continue disbursing 
loans. However, the year -on-year credit growth is growing slowly due to the diminishing demand from 
the real sector. As a prevention measure in order to ensure the banks ' liquidity, the Government has 
placed some funds in several ban ks. 
 
Page 205 (Para 4.209)  
 
Over the review period, several regulations were issued to govern the fintech segment (Table 4.9). The 
IMF indicated that pursuing the Bali Fintech agenda, as developed by the World Bank and the IMF, 
including enhancing foundati onal infrastructures such as broadband Internet, mobile data services, data 
repositories, and payment and settlement services, will support financial inclusion, higher productivity 
and exports. However, to mitigate any resulting possible risks to financial  stability and integrity, WT/TPR/M/401/Add.1  
 
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  particularly exposure to cyberattacks, supervisors should include cybersecurity in the regular monitoring 
and audits of financial institutions.  
 
Questions:  
 
19. What are the procedures required regarding location of computer servers a nd cross -border transfer 
of personal information?  
 
Answer:  
 
Procedures required regarding location of computer servers and cross -border transfer of personal 
information.  
 
For peer -to-peer lending (P2PL), on Article 35 of OJK Regulation (POJK) No. 77/POJK.0 1/2016 on Fintech 
P2PL, P2PL companies are obliged to place their data center and data recovery center in Indonesia. 
Furthermore, article 39 (2) stipulates that the P2PL companies should get agreement from the users 
when they want to provide data and/or in formation about Users to third parties.  
 
The Government opens the possibility to place the data center and data recovery center outside of 
Indonesia's territory based on Government Regulation (GR) No. 71 of 2019 on the Implementation of 
Electronic System and Transaction. To respond to this GR, OJK is currently drafting new regulation 
regarding information technology risk management, which will open the possibility for the P2PL 
companies to place the data center and data recovery center outside of Indonesia 's territory, under 
certain circumstances.  
 
Meanwhile, for financial innovators, according to POJK 13/POJK.02/2018, on Article 29, Financial 
Innovator shall be obliged to place the data center and disaster recovery center in the territory of 
Indonesia.  
 
Recently, the Government of Indonesia is composing a draft regulation regarding data protection, this 
regulation also regulates the provision regarding cross -border transfer of personal information.  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
Page 5 (Para 2.4)  
 
On the other hand, investment in 2019 experienced a slowdown, growing at below 5%. The US -China 
trade war, which caused global economic uncertainty, contributed to this slowdown. Meanwhile, net 
exports contributed positively, dri ven by the contracted growth of imports relative to export growth.  
 
Questions:  
 
1. How and through which channels has the trade war between the US and China impacted the 
Indonesian economy?  
2. Have the Indonesian officials been able to quantify the economic impact of the trade war in terms 
of (real) GDP growth, and the trade and current account balances?  
3. If so, any computable general equilibrium (CGE) or other model was used in the simulation exercise?  
4. What were the main assumptions used to quantify the external shock stemming from the trade war 
on the Indonesian economy?  
 
Answers:  
 
1. The trade war between the US and China has brought negative impact to global economy, including 
Indonesia.  As a small, open economy with high dependency on USD and shallo w domestic financial 
market, Indonesia's economy is vulnerable to global shocks. Trade war exerts influence on the 
Indonesian economy through trade and financial channels. Slowing global economic growth due to 
trade wars will reduce demand for domestic pro ducts through trade channels.  This hit Indonesian 
economy directly and indirectly through export and import and commodity price. the growth in WT/TPR/M/401/Add.1  
 
- 13 - 
 
  investment also declined, affected by building investment slowdown. The Government 's stimulus 
response through t he Government 's consumption restrain deeper domestic demand slowdown.  
2. Bank Indonesia always makes regular projections to measure the impact of global economic 
dynamics on the domestic economy, including the variable of GDP growth, trade balance, and 
curren t account balance.  
3. Bank Indonesia uses several models in making projections, with the core model in the form of a 
DSGE model and a satellite model in the form of an econometric model.  
4. In calculating the impact of the trade war on the global economy, Bank I ndonesia takes into account 
not only the direct impact on trade tensions, but also the indirect impact, namely the increase in 
uncertainty and decreased confidence which has a continuing impact on investment activities, as 
well as decreased productivity du e to reallocation of resources between sectors in the economy. The 
impact of the trade war on the global economy is transmitted to the domestic economy through the 
trade and financial channels  
 
Page 7 (Para 2.9)  
 
The rupiah exchange rate was stable and consistent with its fundamentals, despite pressure caused by 
external factors. Indonesia has adopted a free -floating exchange rate system since August 1997, under 
which market forces determine the exchange rate. Since the last review, the Rupiah exchange r ate 
tends to depreciate due to the increasing global uncertainty mainly from the impact of the US 
normalization policy and slowing global economic condition.  
 
Question:  
 
5. Is there any scope for official interventions in the FX market under the free -floating  exchange rate 
system in Indonesia? Under which conditions?  
 
Answer:  
 
The determination of exchange rate is monetary policy whose authority is attaching to Bank Indonesia. 
Bank Indonesia has apparently conducted a monetary policy potentially violating the constitution. It 
relates to the change of controlled floating exchange rate system to free floating exchange rate. The 
implementation of this free -floating exchange rate is entirely submitted to the market mechanism.  
 
Page 7 (Para 2.10)  
 
Sets of policy mix  managed to maintain the Rupiah exchange rate to move in line with its fundamental. 
To further maintain the stability of Rupiah, Bank Indonesia has implemented several measures. First, a 
pre-emptive, front -loading and ahead -of-the-curve policy response to stabilizes the Rupiah and 
consistently anchor inflation expectation. Second, conducting dual intervention in the FX market and 
government securities secondary market to encourage fair prices in the financial markets and maintain 
adequate liquidity in the m oney market. Third, the monetary operations in the foreign exchange and 
money markets were also strengthened to maintain adequate liquidity. Finally, through intensive 
communication, especially to market players, banks, businesses, and economists.  
 
Questio n: 
 
6. Should the Indonesian rupiah REER deviate considerably from its fundamentals (e.g., in relation to 
the ASEAN main trading partners), would the BI intervene in the FX market in order to maintain its 
relative stability?  
 
Answer:  
 
Bank Indonesia is necess ary to intervene on a small scale to demonstrate that Bank Indonesia is always 
there for Indonesia market. BI executes this by measuring assessed market sentiment (factor 
psychological) that is going on among market participants.  
 
Page 11 (Para 3.7)  WT/TPR/M/401/Add.1  
 
- 14 - 
 
   
Beyon d, the ASEAN and their six free trade agreement partners (China, Korea, Japan, Australia, 
New Zealand, and India) have worked together in negotiations on Regional Comprehensive Economic 
Partnership (RCEP). As the lead, Indonesia works to ensure that negoti ations move toward more 
ambitious goals within the RCEP cooperation framework, which covered many issues, inter alia , trade in 
goods, trade in services, investment, economic and technical cooperation, e -commerce, intellectual 
property, competition, and dis pute settlement.  
 
Questions:  
 
7. What are the expected economic gains (general and sectorial) for Indonesia from its participation in 
the RCEP?  
8. Has any econometric simulation been made using e.g., a computable general equilibrium (CGE) 
model to gauge the likely economic impact of the RCEP on the Indonesian economy in terms of real 
GDP, industrial/sectorial adjustments, and the BOP?  
9. If so, what were the main assumptions made when 'calibrating ' the external shock represented by 
the formation of the free trad e area (FTA) (through an outright or paced tariffs reduction, for 
instance)?  
 
Answers:  
 
7. There are ample expected economic gains from Indonesia 's perspective which are: First, the 
Agreement consolidates five FTAs between ASEAN and its partners under the ASE AN Plus One FTA, 
which will provide more certainty and uniformity of trade rules across its members. Secondly, the 
RCEP agreement can increase export and strengthen the regional and global value chain. In the 
next five years, RCEP is predicted to contribut e from an 8 to 11 percent increase in Indonesia 's 
export, and between an 18 to 22 percent increase for Indonesia 's foreign direct investment. Third, 
RCEP includes chapters that do not exist in previous FTAs, such as e -commerce, competition, 
intellectual pr operty rights, and MSMEs, and therefore are more relevant to the current global 
economic environment. There are also potentials of a "spill-over effects " from FTAs that RCEP 
member countries have with non -RCEP countries, which will increase export by 7.2%.  
8. It must be noted that CGE is not an econometric simulation. There is one study conducted by 
Indonesian 's researcher using CGE model to estimate the impact of RCEP on the GDP, industrial 
outputs and the trade balance of Indonesia. The scope of the study is  quite general not only focus 
on the Indonesian economy but also on other RCEP Participating Country. Please kindly check 
https://onlinelibrary.wiley.com/doi/abs/10.1111/twec.12851 for further information.  
9. The study uses real data of tariffs between RCEP P articipating Countries (in the 6 digits HS Code 
classification) as the shock in the model. Therefore, there is no assumption in the shock of the 
model. However, the model has its own assumption such as perfect competition, the constant return 
to scale, and  imperfect substitution between domestic and imported commodities.  
 
Page 11 (Para 3.9)  
 
Through APEC, Indonesia has continuously put forward diverse initiatives to promote and facilitate trade 
with the aim to achieve sustainable and inclusive growth. These  include supporting the implementation 
of WTO's TFA, enhancing Economies' cooperation to better participate in the GVCs and regional 
connectivity, optimizing the benefit of digital economy for all society and collaborating efforts to bridge 
the digital gap , addressing non -tariff measures that hinder trade in agriculture products, and promoting 
the internationalization of and enhancing access for MSMEs in the Asia -Pacific Region.  
 
Questions:  
 
10. To what extent the participation in GVCs or RVCs has been instrumental to support the integration 
of the Indonesian economy into ASEAN and other regional integration agreements (RIAs)?  
11. On which terms (i.e. products and sectors) has the participation of the Indonesian economy in GVCs 
or RVCs been grounded?  
12. Has the Indonesian economy participation in GVCs or RVCs been more of a backward or forward 
linkage nature?  WT/TPR/M/401/Add.1  
 
- 15 - 
 
  13. Has the relative position of the Indonesian economy in GVCs or RVCs (upstream or downstream) 
changed over time lately?  
 
Answer:  
 
The parti cipation in GVCs or RVCs has been instrumental to support the integration of the Indonesian 
economy into ASEAN and other RIAs to the extent that Indonesian businesses can provide the demands 
of the consumers in ASEAN region and in the region of other Indon esia's trade partners.  
 
The participation of Indonesian economy in GVCs or RVCs has been focused on the production of 
value -added goods that can generate a large number of workforces.  
 
At the present moment, the Indonesian economy participation in GVCs  has been more of a backward 
linkage nature. However, we are aiming to participate more in forward linkage nature in the future.WT/TPR/M/401/Add.1  
 
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  REPUBLIC OF  KOREA  
PART I: Questions Regarding the Secretariat Report   
 
Page 66 -67 (Para 3.21)  
 
During the review period, prior import verification requirements remained in place to ensure compliance 
of certain goods with the relevant legislative/regulatory provisions. Its legal framework was last changed 
in 2018.20 Since November 2002, KSO Sucofindo - Surveyor Indonesia (KSO  SCISI) on Import 
Verification Program (VPTI) (www.scisi.co.id), an operational cooperation between two SOEs (PT 
Sucofindo (or PT Superintending Company of Indonesia) and PT Surveyor Indonesia), has undertaken 
these procedures on behalf of the MoT. The KSO  SCISI maintains seven branch offices abroad (China; 
Singapore; Malaysia; Hong Kong, China; Thailand; Republic of Korea; and Viet Nam) and cooperates 
with nine affiliate surveyor firms (Bureau Veritas, Cotecna, SGS, Baltic Control, CIC, Alex Stewart 
Intern ational, Intertek, CWM, and OMIC). A surveyor report outlining the surveyor firm's inspection 
results is a documentary requirement for certain goods . The verification requirements' (VPTI) 
product coverage was expanded to 29 (19 in 2013) product categories (338 items in 2020) , 
to cover: textiles and textile products; nitrocellulose; rice; salt; precursors; sugar; ceramics; 
multifunction colour copiers and printers; non -hazardous and toxic waste; electronics; food and  
 
Question 1  
 
Could Indonesia please prov ide reasons for the increase in the coverage of prior import verification 
requirements?  
 
Answer:  
 
VPTI is part of the import administration procedure to ensure that imported goods meet administrative 
requirements and at the same time serve as administrativ e facilitation to speed up the process on 
imported goods. As the additional products relate to the health and safety aspect in particular for the 
consumer, the expansion is necessary to ensure the imported products are inline with the related 
technical reg ulations and standards in Indonesia.  
 
The increase in the use of VPTI occurred because of the need to accelerate the completion of the customs 
process for these goods.  
 
Page 87 (Para 3.70)  
 
During the period under review, recourse to safeguard action dropped but Indonesia remained one 
of the most frequent initiators of investigations and resulting actions .(footnote 103) Between 
2013 and 2019, it initiated 11 safeguard investigations (20 in 20 06-12), and imposed 9 measures ( 11 in 
2006-12); virtually all measures were in the form of customs duty (one quota) (Table 3.5). As at 
February 2020, one provisional and four (of which one extended) definitive safeguard measures were 
in place, and two inve stigations were underway (Table 3.5). At its previous Review, Indonesia's relatively 
frequent recourse to safeguards was attributed to greater industry awareness of the availability of trade 
remedies to counter the negative effects of trade liberalization.  (footnote 104)  
  
(footnote 103) With 34 cases initiated between 1995 and 2019, Indonesia was the WTO's 2nd largest user 
of safeguard action.  
 
(footnote 104) WTO document WT/TPR/S/278/Rev.1, 16 July 2013.  
 
Question 2  
 
Does Indonesia intend to take more pru dent approaches in initiating safeguard investigations and 
actions? Please explain if Indonesia has any relevant plans.  
 WT/TPR/M/401/Add.1  
 
- 17 - 
 
  Answer:  
 
Indonesia has implemented the precautionary principle by analyzing preliminary evidence in every 
application for safeguards in vestigation with the aim of knowing whether it has met the requirements, 
namely an increase in imports and there is a serious injury or threat of serious injury.  
 
Page 125 (Para 3.159)  
 
Objections to KPPU decisions may be taken first to the District Court and, thereafter, appealed to the 
Supreme Court. Over the period 2014 -18: 58 decisions were taken to the District Court (of which, 
34 were affirmed and 24 rescinded); 45 appeals were made to the Supreme Court (27 affirmed and 
18 rescinded); a nd 22 went to judicial review (22 affirmed and none rescinded).  
 
Question 3  
 
In light of such a high percentage of court rulings made against KPPU decisions, can this be interpreted 
that Indonesia 's competent authorities have initiated investigations in an  overly expansive manner, 
based upon which administrative measures being taken are ultimately to be rescinded by the courts? 
Could Indonesia please share its position on this issue and, if any, a future plan to lower the number of 
annulled cases?  
 
Answer:  
 
Indonesia maintains robust competition law for which every KPPU 's decision is subject for review by the 
Court. It is normal practice for the court to review, examine and rule on a case -by-case basis. The 
statistics can only be interpreted that both KPPU a nd courts are playing an active and essential role in 
ensuring the certainty and fairness of competition law in Indonesia.  
 
Pages 88 -89 (Para 3.73)  
 
During the review period, Indonesia continued to use local content requirements (LCRs) to 
protect and develop domestic industries . Domestic legislation in several areas enforces LCRs. Law 
No. 7/2014 sets a framework for promoting the use of locally produced goods (Section 3.1.5).107 Law 
No. 3/2014 (Articles 85 -86) mandates the use of LCRs in government pro curement, and is further 
regulated by PR No. 16/2018 (Article 66) which requires the use of suppliers of goods or services with 
a local content plus a corporate contribution value exceeding 40% (Section 3.3.6).108 Extension of the 
import duty exemption sch eme for the establishment or modernization of a factory in an industrial 
development area is conditional upon the use of at least 30% LCRs (Section 3.1.3.6). Product - or 
activity -specific LCRs apply to, inter alia: oil and gas projects (from 61% in 2012 to  64% by 2024); 
power generation (varying levels on goods and services used in power plants, including steam, 
hydroelectric, geothermal (with a combined value of minimum local contents in goods and services 
varying from 28.95% to 42%, depending on the devel opment capacity), gas, solar (60% in solar 
modules and 100% in services, since 2019), and in the transmission and distribution network); 4G Long -
Term Evolution (LTE) enabled devices (30%) and base stations (40%) (base stations, cell phones, 
tablets, and pa lmtop computers) since January 2017; equipment used in certain wireless broadband 
services (30% for subscriber stations, 40% for base stations) and all wireless equipment (50%); 
telecommunication operators' capital expenditures on components or services fo r network development 
(minimum 50%); Indonesian film broadcasting/projection (60% of all hours for a consecutive period of 
six months); franchising (80% of equipment and inventory, unless waiver granted); and modern retail 
establishments (at least 80% of t he total amount and types of goods sold).  
 
Question 4  
 
Indonesia appears to maintain a number of local content requirements (LCRs) or "Tingkat Komponen 
Dalam Negeri (TKDN) " to protect and develop domestic industries across sectors. In light of footnote 
106 of the WTO Secretariat report on Indonesia 's Trade Policy Review (WT/TPR/S/401), could Indonesia 
please explain its positions on the WTO consistency of such measures, particularly in terms of GATT Art. 
III:4, III:5 and the TRIMs Agreement?  WT/TPR/M/401/Add.1  
 
- 18 - 
 
  Answer:  
 
With regard to concern with Indonesia's localization measures, we convey that those provision are put 
in place either:  First, in relation to government procurement; Second, in relation to policies which 
involve fulfilling the needs to maintain all of Indonesia  people's welfare and their life necessities; and 
Third, in relation to policies which involve state -managed strategic resources  
 
Pages 115 (Para 3.126)  
 
The National Accreditation Body (Komite Akreditasi Nasional (KAN)) remains responsible for accrediting  
conformity assessment bodies (CBs), including laboratories, inspection bodies and certification bodies. 
Where SNIs are mandatory, conformity assessment is undertaken by KAN -accredited CBs, 
designated by the respective regulators . As at April 2020, there w ere 1,402 accredited laboratories 
(314 calibration laboratories, 71 medical laboratories, and 24 proficiency testing providers); 
162 accredited inspection bodies; 74 accredited product certification bodies; 50 accredited quality 
management certification bo dies; 22 accredited environmental management certification bodies; 
10 accredited anti -bribery certification bodies; 10 accredited information security management 
certification bodies; 3 accredited energy management certification bodies; and 8 food safety 
management certification bodies. According to the authorities, the recognition of foreign CBs occurs 
through bilateral or multilateral recognition agreements following the reciprocal principle. The KAN is a 
signatory of the International Laboratory Accredit ation Cooperation (ILAC) and Asia -Pacific Laboratory 
Accreditation Cooperation (APLAC) mutual recognition agreements (MRAs), and the International 
Accreditation Forum (IAF) and Pacific Accreditation Cooperation (PAC) multilateral recognition 
agreements (ML As). Over the review period, conformity assessment issues were raised regularly by 
WTO Members in their STCs regarding Indonesia's technical regulations.  
 
Question 5  
 
Despite the current, unprecedented situation caused by COVID -19, Indonesia is adhering to  its principle 
of on-site inspection for SNI approval. This is causing difficulties for companies of which SNIs are just 
close to maturity, as on -site inspections raise the risk of infection and thus are at a virtual standstill. 
Does Indonesia have plans t o temporarily adopt 'remote inspection ' and allow the extension of expiry 
for previous approvals with imminent expiry dates?  
 
Answer:  
 
The National Accreditation Body (KAN) has imposed the Protocol on Audit by Remote to Anticipate 
COVID -19 Pandemic and allowing extension of expiry date of certification in accordance with IAF ID 3 
and related IAF documents, but the protocol applies mainly to non -mandatory certification of products. 
For mandatory SNI, it is regulated by Regulators that may als o include policy on the implementation of 
remote assessment.  
 
Pages 113 (Para 3.121)  
 
As set out in law, the Government, through its relevant technical agencies, may issue a policy to make 
SNIs compulsory in cases where they relate to interests of national  security, safety, security, public 
health, environmental conservation, or economic reasons.198  
 
Question 6  
 
Where SNIs are compulsory, companies face much administrative burden due to procedural issues such 
as frequent ex post assessment, excessive request for samples, etc. Does Indonesia have plans to 
improve the relevant procedures for mandatory SNIs to make it more business -friendly?  
 
Answer:  
 
SNI is used to protect human life or health, environmental damage, and natural resources. Confo rmity 
Assessment Procedures for mandatory SNI is under the supervision of ministries as regulators.  WT/TPR/M/401/Add.1  
 
- 19 - 
 
  Indonesia has also implemented it in accordance with WTO provisions and is open to WTO Members. 
Indonesia ensured that the SNI conformity assessment procedu re is business -friendly because it is in 
accordance with ISO 17065: 2012.  
 
Pages 64 (Para 3.17)  
 
The Indonesia National Single Window (INSW) (www.insw.go.id), in place since 2007, continues to allow 
for, inter alia, the single submission of customs documen ts and applications for trade licences, the 
payment of duties, synchronized processing, and a final decision by Customs. Since 31 May 2018, the 
use of the INSW system is compulsory under PR No. 44/2018 on Indonesia National Single Window.9 
This Regulation expanded the INSW coverage to quarantine and port documents (sea and air).10 It 
now integrates all customs documents, quarantine documents, licensing documents, 
port/airport documents, and other documents relating to export and/or import to be 
submitted by  service users to relevant ministries/institutions . 
 
Question 7  
 
Does Indonesia have plans to improve the INSW system so that changes in its trade regulations are 
reflected to the system without delay? (There have been some cases where companies faced setbacks 
during customs clearance due to gaps between up -to-date regulations and those upon which the INSW 
are operated.)  
 
Answer:  
 
Currently, the INSW system already intagrated with all the ministry. Indonesia is commited to improve 
INSW system in order t o boost bussines activity.  
 
ADDITIONAL QUESTIONS REPUBLIC OF  KOREA  
PART III: Other Questions  
 
Question 1: Requirement for Indonesia 's Financial Market  
 
There are various difficulties faced by foreign insurance or securities companies that seek to enter int o 
Indonesian market, such as foreign ownership ceiling, fees for relevant authorities, qualifications, 
approval process, etc. Does Indonesia have any plan or idea to make its domestic laws and regulations 
more business -friendly on this issue?  
 
Answer:  
 
Indonesia has implemented the Job Creation law (known as Omnibus Bill) to deregulate the investment 
procedures and harmonize the licensing regulation. this law is aimed to improve investment and 
business environment, labour, empowering small mediu m enterprise, ease of doing business, research 
and innovation support, land acquisition, economic zone, accelerating strategic investment, government 
administration.  
 WT/TPR/M/401/Add.1  
 
- 20 - 
 
  CANADA  
SECTION I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
  
SUMMARY  
 
Page 13 (Para graph 22)  
  
"Government procurement in Indonesia remains centralized in terms of regulations and systems but 
decentralized for procurement execution. Overall procurement spending in FY2019 by local and 
sub-central governments was IDR 2,173 trillion. The re gulatory framework for government procurement 
was revised in 2018, with the stated objective of achieving value for money, contributing to the 
increased use of domestic products, increasing MSMEs ' participation, and sustainable development. " 
  
Questions:  
 
1. Since revising the regulatory framework, has MSMEs ' participation in government procurement 
increased?  
2. What are the barriers that MSMEs face in participating in government procurement?  
 
Answer:  
 
1. The participation of MSMEs has been increasing si nce the revision of the regulatory framework. This 
can be seen from the MSME 's participation in the tender, e -catalogue, and also direct procurement.  
2. The barrier that MSME's face are, among others, information gap and technical competencies.  
 
SECTION I: QUESTIONS REGARDING THE SECRETARIAT REPORT  
PART 1 – ECONOMIC ENVIRONMENT: 1.2.4.5 STRUCTURAL POLICIES – OTHER   
Page 29 (Paragraph 1.17)  
 
"Indonesia continued to integrate gender perspectives into its economic policies, including through the 
Ministerial Strategic Plan 2015 -19 on gender equality and women empowerment. In response to a 
moratorium policy on sending Indonesian migrant workers abroad (of which almost 70% were women) 
under Ministerial Regulation No. 2/2016 on General Guidance of Hom e-Based Industry for Improving 
Family Welfare, emphasis was placed on economically empowering women, and also strengthening 
family resilience. "  
 
Questions:  
 
3. Can Indonesia provide additional information on some of the achievements from the Ministerial 
Strategic Plan 2015 -19 on gender equality and women empowerment?  
4. What information can Indonesia provide regarding targeted support programs and/or policies to 
encourage women -owned MSMEs to grow domestically and/or export internationally?  
5. Moving forward, how d oes Indonesia plan to integrate gender perspectives into other economic and 
trade policies, or domestic policies to support women 's participation in the economy and trade?  
 
Answers:  
 
3. Government conducted home -based industry development program which has been stipulated in 
Ministerial Regulation No.2/2016 regarding Guideline Development of Home -based Industry in 
Improving Family Welfare through Empowering Women. This program has reached more than 
3,700  business players in 21 districts and 16 provinces in 2 016-2018.  
4. Government has facilitated the development of a home -based industry model for women through 
home -based industry development program. The program includes identifying industry players in 
the villages, facilitating capacity building and technical a ssistance, and assisting to promote business 
and others.  WT/TPR/M/401/Add.1  
 
- 21 - 
 
  5. Indonesia has a development model of the village for Advanced Indonesia Women (PRIMA) in an 
effort to reduce the burden of poor families. This model was included on Ministerial Strategic Plan 
2020-2024 that under review.  
 
Page 29 (Paragraph 1.18)  
 
"Action at both central and regional levels was taken to develop MSMEs by corporatizing them in the 
form of clusters, enabling the formation of networks of similar businesses, thus creating larger 
economies of scale and facilitating more effective capacity building. Various incentive schemes target 
MSMEs. Under the National Strategy of Cooperatives and MSME Development 2020 -24, the BI MSME 
cluster programme is aimed at reducing the current account deficit, fu rthering inclusive growth, and 
reducing inflationary pressures. "  
 
Questions:  
 
6. Can Indonesia provide additional information on some of the achievements to date of the BI MSME 
cluster programme?  
 
Answer:  
 
One of the MSME development strategies is to corporatize MSMEs in the form of clusters. Bank Indonesia 
develops MSME clusters, both in the food and non -food sector (potential for export). Clusters have a 
positive impact on improving institutional aspects (backward and forward linkages), increasing 
competitiveness of MSMEs, as well as increasing MSMEs ' average income, access to market and finance. 
The success of these programs would have broader implications, for example, to further inclusive 
economic growth; and to support food security.  
 
PART 1 – ECONOMIC ENVIRONMENT: 1.2.5 BALANCE OF PAYMENTS  
Page 30 (Paragraph 1.20)  
 
The Report states Indonesia has faced a decline in imports of primary raw materials, fuels, (mostly 
infrastructure -related) capital or consumer goods, exchange rate moveme nts or foreign capital inflows. 
The import decline has been also linked to policies instituted to manage the current account deficit, 
including import substitution through expanding B20 biofuel domestic capacity.  
 
7. Can Indonesia provide more detail regardi ng its policy objectives for import substitution, including 
the recently announced policy objective to reduce Indonesia 's imports by 35% by 2022, and explain 
how it is consistent with WTO obligations?  
 
Answer:  
 
The utilization of the industrial sector in I ndonesia is around 56% due to the impact of the pandemic, 
whereas previously it was able to touch 70%. Indonesia does not pass import restrictions because these 
raw and auxiliary materials are needed by our industrial sector to increase their added value. Indonesia 
is still discussing with relevant stakeholders for the sustainability of the national industrial business.  
 
PART 2 – TRADE AND INVESTMENT REGIMES: 2.2 TRADE AND RELATED POLICY OBJECTIVES  
Page 41 (Paragraph 2.14)  
 
According to the Report, "increas ing the availability, access, and quality of food for consumption " is one 
of the goals under Indonesia 's National Medium -Term Development Plan. However, in June 2020, 
Indonesia 's Ministry of Industry announced that the food and beverages sector among the t argeted 
sectors under the Government of Indonesia 's plans to reduce imports by 35% by 2022.  
 
8. Can Indonesia explain how its new goal of reducing food and beverage imports by 2022 would 
support its goal of increasing the availability and access to quality food?  
9. Can Indonesia advise as to the specific trade measures and/or policies it is using in th e food and 
beverage sector to reach its import -reduction target?  WT/TPR/M/401/Add.1  
 
- 22 - 
 
  Answer:  
 
8. Indonesia is still conducting discussions with multiple stakeholders. The government is obliged to 
guarantee the availability of imported raw materials as well as to increase the availability and access 
to quality food by applying SPS provisions for public  health and safety reasons  
9. Indonesia does not apply the terminology of reducing imports. We need imports but they need to 
be well -managed, including for food and beverage by implementing good regulatory practices and 
pecautious safety measures that are in  line with the WTO Principles.  
 
Page 42 (Paragraph 2.16)  
 
"In 2018, the Making Indonesia 4.0 roadmap was launched. […] The roadmap aims to use these sectors 
to boost Indonesia 's growth prospects over the period 2018 -30, and to upgrade the country 's positio n 
in GVCs. The Government set ten national priorities for Making Indonesia 4.0: reform material flows; 
redesign industrial zones; embrace sustainability; technologically empower 3.7 million SMEs (e.g. build 
an SME e -commerce and technology bank) […]. "  
 
Questions:  
 
10. Can Indonesia  provide additional information on the work that has been done to date to achieve the 
national priority to technologically empower 3.7 million SMEs?  
a. Does this priority only focus on building an SME e -commerce and technology bank or does it 
include other ac tivities to support technologically empowering 3.7 million SMEs?  
b. Are there any particular considerations to ensure that women owned SMEs are integrated into 
this strategy?  
 
Answer:  
 
There are 4 programs that have been implemented in order to empowering 3.7  million SMEs, namely: 
1) Increasing the capacity of SMEs through workshops for the Industrial Revolution 4.0; 2) bringing 
together SMEs with technology -based start -up industries; 3) restructuring machines and equipment in 
order to increasing the competiti veness; 4) building a market place platform for SMEs by collaborating 
with existing e -commerce (9 e -commerce).  
 
Indonesia has a Digital MSME Training Program to strengthen and empower MSME players in the 
country. The program is aimed at utilizing internet access productively to accelerate national digital 
transformation. The Digital MSME Training was initiated by the Information and Telecommunication 
Accessibility Agency (BAKTI) of the Ministry of Communication and Information Technology together 
with the I ndonesian E -Commerce Association (idEA).  
 
The program is prioritized for underdeveloped, outermost, and frontier areas (3T) and Super Priority 
Tourism Areas (DPSP). The BAKTI Online Digital MSME Training Program is a mentoring program for 
MSMEs/UMi to car ry out on -boarding, especially those outside Java, especially in disadvantaged, 
outermost and frontier (3T) areas and Super Priority Tourism Areas (DPSP). to expand access to 
empowerment fairly and equitably, especially in strengthening the digital economy . 
 
There are several SMEs empowerment programs that collaborate with women entrepreneurial 
associations/organizations such as coaching SMEs for fishermen's wives and women's prisons, as well 
as a collaboration with Dekranas in the handicraft sector.  
 
PART  2 – TRADE AND INVESTMENT REGIMES: 2.3.1.1 TRADE AGREEMENTS AND 
ARRANGEMENTS – WTO – FEATURES  
Page 46 (Paragraph 2.26)  
 
"During the review period, Indonesia remained active in WTO dispute settlement activities. As at 
January  2020, its involvement in new cases comprised: 6 complaints by Indonesia (1 case in 
consultation); 10  complaints against it (4 cases in consultation); and its participation as a third party in 
39 cases (Table  2.4)."  WT/TPR/M/401/Add.1  
 
- 23 - 
 
  Question:   
 
11. Taking into account that the Appellate Body cannot hear new appeals as of December 11, 2019, has 
Indonesia considered alternative mechanisms, for example the Multi -Party Interim Appeal 
Arbitration Arrangement (MPIA) established under DSU Article 25, to enable prompt and binding 
resolu tion of its WTO disputes?  
 
Answer:  
 
As a supporter of the multilateral rules -based trade system and an active user of the WTO dispute 
settlement system, Indonesia is open for the solution to protect Members' rights and obligations.  
 
Indonesia remains open to the MPIA initiative. Since Indonesia has yet join to the initiative, Indonesia 
will continue to monitor the update closely, especially the operation of the MPIA.  
 
PART 2 – TRADE AND INVESTMENT REGIMES: 2.3.1.1 TRADE AGREEMENTS AND 
ARRANGEMENTS – WTO – FEATURES  
Page 47 (Paragraphs 2.27 and 2.28)  
 
The Economic Cooperation Chapter of the Indonesia -Australia Comprehensive Economic Partnership 
Agreement (I -A CEPA) aims to support the use and implementation of the Agreement by establishin g a 
Committee on Economic Cooperation and the development of an Annual Work Program, as agreed by 
the Parties.  
 
Questions:  
 
12. Can Indonesia provide information on the establishment of the Committee on Economic Cooperation 
and Work Plan, particularly related to the issue areas expected to be covered in the Work Plan and 
the level and type of resources the Parties will provide?  
13. If the Committee on Economic  Cooperation and Work Plan have not been established can Indonesia 
indicate when they are expected to be operational and if the information requested in the above 
question will be publicly available?  
 
Answers:  
 
Based on Article 15.3 of the IA -CEPA, the Committee on Economic Cooperation shall meet within 
one year of the date of entry into force, so that the Economic Cooperation will be operational before 
5 July 2021.  
 
The Information regarding the scope of the Work Plan, the level and type of resources as well as other 
related information regarding Economic Co operation can be accessed publicly at the following link: 
https://www.dfat.gov.au/about -us/business -opportunities/Pages/indonesia -australia -comprehensive -
economic -partnership -agreement -ia-cepa 
 
PART 2 – TRADE AND INVESTMENT REGIMES: 2.3.1.1 TRADE AGREEMENTS AND 
ARRANGEMENTS – WTO – FEATURES  
Page 48 (Paragraph 2.31)  
 
"The broad -based EFTA -Indonesia Comprehensive Economic Partnership Agreement (CEPA) covering 
trade in goods, trade in services, investment, intellectual property rights, government proc urement, 
competition, trade and sustainable development, and cooperation was signed on 16 December 2018 ".  
 
Questions:  
 
14. Would Indonesia elaborate on the trade and sustainable development chapter it has included in its 
FTA with EFTA?  
15. Are environment provisions included in any other FTAs Indonesia has negotiated, and are 
environment provisions part of Indonesia 's typical approach to FTA negotiations?  WT/TPR/M/401/Add.1  
 
- 24 - 
 
  Answer:  
 
14. The commitments of the two parties related to sustainable economic development are  inscribed in 
Chapter 8: Trade and Sustainable Development EFTA -Indonesia CEPA, which includes sustainable 
economic development; social development; international labour standards and agreements; 
multilateral environmental agreements and environmental prin ciples; sustainable forest 
management and associated trade; sustainable management of fisheries and aquaculture and 
associated trade; sustainable management of the vegetable oils sector and associated trade; and 
cooperation in international fora.  
15. Among the  bilateral negotiations that have been concluded, only IE -CEPA which includes 
environmental provisions. Environmental provisions depend on the needs of the parties and are not 
part of Indonesia 's typical approach in FTA negotiations. Nevertheless, the abse nce of a chapter 
dealing with environmental issues does not exclude the existence of an economic cooperation 
program on environmental issues under the PTA/CEPA.  
 
PART 2 – TRADE AND INVESTMENT REGIMES: 2.4.2 RESTRICTED ACTIVITIES  
Page 58 (Paragraph 2.49)  
  
The Report references Indonesia 's plans to revise the 2016 Negative Investment List by opening new 
sectors to 100% foreign participation.  
  
Question:  
  
16. What is in the anticipated timeframe for the completion of the revision process?  
 
Answer:  
 
Presidential Regulation No. 44 of 2016 regarding the Negative Investment List (DNI) is currently under 
revision process under the coordination of Indonesia Coordinating Ministry of Economic Affairs which 
involve ministries, business and other relevant stak eholders. Term of DNI to be revised into investor's 
friendlier "Investment Priority List", as part of implementing regulations of Law No. 11 of 2020 or 
Omnibus Law for Job Creation which is expected to be issued by early next year.  
 
Page 61 (Paragraph 2.60 ) 
  
The Report makes reference to Indonesia 's finalization of Bilateral Investment Treaties (BITs) with 
Singapore and the United Arab Emirates, and notes that these are the first BITs to be signed by 
Indonesia since 2008.  
  
Question:  
  
17. When does Indonesia expect these treaties to enter into force?  
18. What, if any, significant changes have been made by Indonesia to its BIT model since the last 
investment treaties were signed in 2008?  
 
Answer:  
 
17. The Bilateral Investment Treaties (BITs) with Singapore is expected to be in force in December 2020 
while the draft of BITs with the United Arab Emirates has been discussed with the relevant ministries 
and stakeholder and in the process to be signed by President.  
18. The significant changes in recent BITs were the sustainable development provision that was playing 
more significant roles and there was more balance between the Governments right to regulate and 
the protection of foreign investors and their investments.  
 
PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE:  3.1.3.2 APPLIED MFN TARIFFS  
Page 74 (Paragraph 3.37)  
 WT/TPR/M/401/Add.1  
 
- 25 - 
 
  The Report states that Indonesia has increased import tariff rates further, raising Indonesia 's simple 
average applied MFN rate from 7.8% in 2012 to 10.1% in 2020.   
 
19. Can Indonesia explain its policy objective for the increase in import tariff rates?  
 
Answer:  
 
The increase of tariff rates in this period is due to the emerging differences on applie d tariff rate after 
the transposition of HS Classification from HS 2012 to HS 2017.  
 
Page 74 (Paragraph 3.37 and Table 3.2)  
 
According to the Report, from 2012 to 2020, Indonesia increased its applied MFN tariff rates for several 
products, including for wo od articles (HS Chapter 44). Table 3.2 shows that tariffs for HS 25 -97 
increased from 7.5% in 2012 to 10.1% in 2020.  
 
20. Would Indonesia provide further details as to the circumstances that led to these applied tariff 
increases, including for wood products?  
21. Does Indonesia have any plans to decrease applied MFN tariffs for wood products in the future?  
 
Answer:  
 
20. The increase of tariff rates in this period is due to the emerging differences on applied tariff rate 
after the transposition of HS Classific ation from HS 2012 to HS 2017.  
21. Until now, Indonesia does not plan to make any changes regarding this matter.  
 
PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE: 3.1.5.1 IMPORT PROHIBITIONS 
AND QUANTITATIVE RESTRICTIONS  
Page 84 (Paragraph 3.57)  
 
According to the Report, Indonesia maintains quantitative restrictions on animals and animal products, 
sugar and rice, among other products.   
 
22. Can Indonesia advise on the legal basis of these quantitative restrictions?  
 
23. Can Indonesia confirm whether it h as notified these quantitative restrictions? If not, when does 
Indonesia intend to do so?  
 
Answer:  
 
22. Indonesia would like to reaffirm that we do not have such regulation as quantitative restriction of 
import of the said products. However, we put in place ce rtain procedures for the importation of the 
said products for good administration purposes.  
23. Referring to our answer to your question no.22, we have notified the said import regulations to the 
WTO secretariat.  
 
Page 85, Paragraph 3.60  
 
According to the Repo rt, the number of product categories subject to import licensing has increased 
significantly over the review period from 30 to 40, of which many of the new requirements are for food 
and agricultural products.  
 
24. Can Indonesia advise on the policy basis for this significant increase?  
 
25. Are these new arrangements consistent with Indonesia's food security objectives given the role of 
imports in ensuring that consumers can access a broader range of products at more competitive 
prices?  
 WT/TPR/M/401/Add.1  
 
- 26 - 
 
  Answer:  
 
24. We put in place import regulations for the sake of good administration process on the importation 
of certain products.  
25. As stated in the previous answers we regulate import of certain products in order to have a good 
administration and monitoring purposes.  
 
PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE: 3.1.7 OTHER MEASURES AFFECTING 
IMPORTS  
Page 88 (Paragraph 3.73)  
 
The Report mentions that local content requirements continue to apply for both products and activities 
in certain domestic industries, including oil a nd gas projects (set to increase from 61% in 2012 to 64% 
by 2024), power generation (varying levels on goods and services used in power plants, including steam, 
hydroelectric, geothermal with a combined value of minimum local contents in goods and services  
varying from 28.95% to 42%, depending on the development capacity), and solar industries (60% in 
solar modules and 100% in services, since 2019).  
 
26. Would Indonesia explain how these local content requirements align with the WTO 's 
non-discriminatory principles?  
 
27. Would Indonesia provide further details on the policy objectives these local content requirements 
these are meant to fulfill?  
 
Answer for Question No. 26 and 27:  
 
Indonesia 's local content requirements policy is undertaken for s everal purposes, namely: (1) in relation 
to government procurement matters, (2) in relation to matters which involve fulfilling the needs to 
ensure the Indonesian people 's noble objectives such as their life necessities, or (3) in relation to matters 
which  involve state -managed strategic resources.  
 
28. Has Indonesia considered alternative measures that would be equally effective, and less 
trade -restrictive in meeting these objectives?  
 
29. Does Indonesia have any plans to reduce either product or activity -specific  local content 
requirements for oil and gas projects, solar, and power generation in the future?  
 
Answer:  
 
28. Indonesia does not have any intention to put in place any measure that has trade -restrictive issues.  
29. Currently, Indonesia does not have any plan regarding this matter.  
 
PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE: 3.2.2 TAXES, CHARGES AND LEVIES  
Page 90 (Paragraph 3.77)  
 
The Report mentions that export taxes are levied on wood products and palm oil amongst other 
products. The Report also mentions that export tax revenue from palm oil is directed to a 
state-administered fund, which is used to finance biofuel subsidies and rejuvenate plantations.  
 
30. Is export -tax revenue from wood products also directed to a state -administered fund? If so, for  what 
purposes?  
31. Do export taxes on wood products help to ensure a sustainable domestic supply for local processing?  
32. Does the government foresee reducing or eliminating the current 1.5% withholding tax for certain 
mineral ores?  
 
Answer:  
 WT/TPR/M/401/Add.1  
 
- 27 - 
 
  30. The export -tax reve nue from wood products is not directed to a state -administered fund. The 
purpose of the export tax is to rejuvenate state forest plantations and to combat illegal logging.  
31. In principle, export taxes are imposed to ensure supply to local processors. However , the export tax 
is also an instrument to ensure a sustainable supply so it is hoped that this policy will be 
environmentally friendly. The domestic log supply arrangement has been determined through the 
Annual Allowable Cut (AAC) accompanied by a Sustaina ble Forest Management (PHL) certification 
policy.  
32. Currently Indonesia does not intend to alter the aforementioned tax.  
 
PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE: 3.2.3.2 EXPORT RESTRICTIONS 
AND LICENSING  
Pages 94 -96 (Table 3.8 – Export Restrictions  and Licensing, 2012 & 2020)  
 
33. Which minerals continue to be subject to the 60% export tax?  
34. In reviewing the Report, there is no mention of export licensing requirements for arms, ammunition, 
military/strategic goods or dual -use items. Would Indonesia please provide details of its export 
licensing requirements for these types of goods and/or link s to the relevant laws and regulations? 
In addition, would Indonesia confirm whether the phrase in Paragraph 3.82 reading "During the 
review period, the regulatory framework governing export licensing was updated/amended in 
several areas… " would also apply  to the export licensing requirements for arms, ammunition, 
military/strategic goods or dual -use items?  
 
Answer:  
 
33. Based on the latest regulation of 2020 there are no more 60% export tax put in place on minerals 
products (Regulation of Minister of Finance No.166/PMK.010/2020).  
34. In principle, the export regulations put in place are consistent with WTO rules including the 
exceptions provided therein.  
 
Follow -Up Question No. 34:  
 
Canada would welcome additional clarifications from Indonesia regarding details of its export -licensing 
requirements for these types of goods and/or links to the relevant laws and regulations, and as to 
whether the "regulatory framework " referred to in Par agraph 3.82 of the Secretariat Report would also 
apply to the export licensing requirements for arms, ammunition, military/strategic goods or dual -use 
items.  
 
Answer:  
 
Indonesia is not a party to the exclusive Export Control regime, in order to ensure the rights of 
developing countries to access technology and materials that are dual -use items (sensitive). However, 
Indonesia agrees that the ultimate goal of Export Control is to eradicate the use of sensitive materials 
and technology for non -peaceful purpose s by irresponsible parties (non -state actors).  
 
PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE: 3.3.1.2 MEASURES AFFECTING 
PRODUCTION AND TRADE – NON-FISCAL INCENTIVES  
Page 110 (Paragraph 3.111)  
 
"Various interest rate subsidies and loan schemes provided by the central Government are in place to 
assist MSMEs. They include: […]  
 
• under the SOE corporate social responsibility programme ( Program Kemitraan dan Bina 
Lingkungan  (PKBL), low -interest loans are available for MSMEs; the maximum term is 
three  years, and the interest rates are set by the company itself (but apparently may be as low 
as 3% per annum). […] " 
 
Questions:  
 WT/TPR/M/401/Add.1  
 
- 28 - 
 
  35. Of the interest -rate subsidies and loan schemes provided by the central Government, which have 
had the best engagement from MSMEs to date?  
36. Does Indonesia collect sex -disaggregated data on the companies that receive support from these 
incentives?  
37. Can Indonesia provide additional information on some of the achievements to date under the SOE 
Corporate Social Responsibility program me? 
a. How many MSMEs have engaged with this programme in comparison to the other interest rate 
subsidies and loan schemes aimed at assisting MSMEs?  
 
Answer:  
 
35. Based on the interest -rate subsidies and loan schemes provided by the central government, Kredit 
Usaha Rakyat (KUR - Credit for People 's Business) programme had the best engagement from 
MSMEs.  
36. Gov of Indonesia (GoI) collects sex -disaggregated data on companies that receive support incentive. 
MSME in all sectors receives incentives from Ministry of Cooperati ves and SMEs and SOEs. Regarding 
the Partnership Programme (CSR), SOE conducts a survey to ensure the incentive is right on target, 
including, collecting sex aggregated data.  
35. Our Achievements to date of SOEs Corporate Social Responsibility programme such a s Top CSR 
Awards 2020 for 27 SOEs held by Top business Magazine in collaboration with the Committee of 
National Governance Policy (Komite Nasional Kebijakan Governance) and the NawaCita study 
institute (Lembaga Kajian Nawacita). Also, The Indonesian World Record Museum (MURI) granted 
world -record to the Sales of Cheap Food Packages at the Location and the Highest Amount achieved, 
and MURI granted world -record on The Most Distribution of Al -Quran.  
36. The number of MSMEs which are involved with the SOEs Corporat e Social Responsibility programme 
to date is approximately 161.016 MSMEs.  
 
PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE: 3.3.2 STANDARDS AND OTHER 
TECHNICAL REQUIREMENTS  
Pages 111 to 117  
 
Questions:  
 
38. What provision is made for non-discriminatory foreign participation in the creation of standards, 
technical regulations and conformity assessment procedures?  
 
39. Does Indonesia publish information about, and explain the non -acceptance of, foreign technical 
regulations?  
 
40. Does Indonesia provide national treatment regarding the accreditation of Conformity Assessment 
Bodies?  
 
41. With regard to the use of international standards, does Indonesia avail itself of WTO TBT Agreement 
Article 12.4?  
 
Answer:  
 
38. Based on Law No. 20/2014 and BSN Regulation No. 3/2018, public and related stakeholders could 
participate and provide inputs on the draft SNI through e -balloting.  
39. The information related to the non -acceptance of foreign technical regulation is communicated 
through enquiry point.  
40. Both loca l and foreign Conformity Assessment Body are treated equally in the accreditation process 
as long as they meet the requirements.  
41. With regard to the use of international standards, Indonesia avails with Article 12.4 of the TBT 
Agreement. According to Law No . 20/2014 Article 13.2, the national standard (SNI) is developed by 
aligning with the international standards. Furthermore, Article 13.3 stated that for the national 
interest purposes, SNI can be developed not in line with international standards.  
 WT/TPR/M/401/Add.1  
 
- 29 - 
 
  PART 3  – TRADE POLICIES AND PRACTICES BY MEASURE: 3.3.2.3 TECHNICAL REGULATIONS  
Page 113 (Paragraph 3.121)  
 
The Report indicates that:  
 
"As set out in law, the Government, through its relevant technical agencies, may issue a policy to make 
SNIs compulsory in ca ses where they relate to interests of national security, safety, security, public 
health, environmental conservation, or economic reasons. "   
 
Question:  
 
42. Would Indonesia describe the legitimate objectives that compulsory SNIs related to 'economic 
reasons ' achieve?  
 
Answer:  
 
42.  Law No. 20/2014 Article 24.3 clearly states that the Government of Indonesia impose mandatory 
SNI when it is related to safety, security, health, and environmental protection.  
 
Page 113 (Paragraph 3.121)  
 
The Report indicates that Indonesia has, over the review period, been subject to concerns expressed by 
Members regarding the lack of notifications for which Indonesia has created a National Committee on 
TBT. 
 
Question:  
 
43. Can Indonesia provide more details about the a ctivities of this National Committee, and how it will 
help increase Indonesia 's transparency at the WTO?  
 
Answer:  
 
The National Committee on Technical Barriers to Trade consists of 13 working groups involving 
government, industry associations, and experts. In terms of supporting transparency, the Working 
Groups hold regular coordination meetings, of which to discuss and provide input regarding the draft of 
Indonesian regulations which will be notified to the WTO TBT Secretariat as well as providing comments 
on inquiries related to standards, regulations, and conformity assessment procedures.  
 
PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE: 3.3.2.4 CONFORMITY ASSESSMENT 
AND MARKET SURVEILLANCE  
Page 115 (Paragraph 3.126)  
 
Question:  
 
44. Can Indonesia ex plain why International Laboratory Accreditation Cooperation (ILAC) accredited 
conformity assessment bodies are only recognized on a reciprocal basis?  
 
Answer:  
 
Indonesia can accept a certificate of conformance from any foreign Conformity Assessment Body (CAB) 
that has been accredited by the Accreditation Body which is a signatory of MLA/MRA at the IAF/ILAC 
and is reciprocal in accordance with the agreement between National Accreditation Committee (Komite 
Akreditasi Nasional -KAN) and foreig n CAB. During the process of formulating technical regulation, BSN 
encourages regulators to harmonize the conformity assessment between local and imported products.  
 
PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE: 3.3.2.5 LABELLING  
Page 116 (Paragraph 3 .128)  
 WT/TPR/M/401/Add.1  
 
- 30 - 
 
  Indonesia notes that under the Halal Product Assurance Law No. 33 of 2014 and implementing 
regulations non -halal, information is also required for these products. The intent is not to be a burden 
on businesses but to provide clear information to Muslim cus tomers.   
  
Question:  
 
45. Can Indonesia provide more information on how it intends to strike a balance between the provision 
of clear information to Muslim customers and ensuring this requirement to label goods as non -halal 
does not make it difficult for bus inesses to export products that are clearly non -halal to Indonesia?  
 
Answer:  
 
For halal products that have been certified in Indonesia or certified by foreign halal institutions which 
have collaborated with the Indonesian government, they must include a halal label and/or registration 
number. However, for non -halal products that wil l enter and be circulated in Indonesia, they are 
obligated to include non -halal information in the form of pictures, signs, or writing (Minister of Religious 
Affairs  Regulation No. 2/2019).  
 
PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE: 3.3.3.2.6 SPS M EASURES – HALAL 
REQUIREMENTS   
Page 122 (Paragraph 3.151)  
 
Canada notes that a number of implementing regulations under Halal Product Assurance Law No. 33 of 
2014 are still under development.  
 
Canada further notes that Paragraph 3.151 states that "all hala l certificates issued by foreign halal 
certifier bodies (LHLNs) that cooperate with the BPJPH can be accepted " in Indonesia.  
 
Questions:  
 
46. Canada encourages Indonesia to provide timely information as further implementing regulations are 
developed to provide trading partners with sufficient time to comment and seek clarifications on 
them. Could Indonesia assure WTO Members that it intends to notify all further implementing 
regulations that are developed under Halal Product Assurance Law No. 33 of 2014?  
 
Answer:  
 
As a WTO member, Indonesia is committed to fulfil its notification obligation under WTO agreements 
including issues with regard to Halal requirements.  
 
Questions:  
 
47. Could Indonesia provide additional information on the accreditation process for foreign halal 
certifying organizations, in particular organizations that use third party or non -governmental 
accreditation? When does Indonesia intend to publish further guidance in this area?  
 
Answer:  
 
Foreign halal institutions that can have cooperation should be established by the government or state -
recognized Islamic religious institutions. The foreign halal institution is accredited by an accreditation 
agency in the country that obtain recognition from a regional or international accredita tion cooperation 
organization. The accreditation agency in the country is an institution that has collaborated to develop 
mutual recognition scheme and mutual acceptance of the conformity assessment. Accreditation in the 
country is carried out in accordanc e with Indonesian halal standards set by non -ministerial government 
agencies that carry out government tasks in the field of standardization and conformity assessment.  
Subject related to international cooperation have been regulated by Minister of Religio us Affairs  
Regulation No. 26 of 2019.  
 WT/TPR/M/401/Add.1  
 
- 31 - 
 
  PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE: 3.3.6 GOVERNMENT PROCUREMENT  
Page 131 (Paragraph 3.179)  
 
"According to the authorities, overall government spending on procurement in FY2019 was 
IDR 2,173  trillion (both by central and sub -central governments). Government procurement is 
centralized in terms of regulations and systems but decentralized for procurement execution. The 
authorities indicated that there are no plans to move to a centralized system  for procurement execution 
in the foreseeable future. Public procurement is undertaken by numerous entities, including 87 national 
ministries and agencies; 34 provincial authorities; and 508 regency/city municipalities. " 
 
Question:  
 
48. Does Indonesia have sta tistics on the annual amount of government procurement expenditures 
broken down according to the different entities  listed here?  
 
Answer:  
 
This information can be accessed through inaproc.id/rup.  
  
Page 131 (Paragraph 3.181)  
 
"All procuring entities must operate their own electronic procurement system (LPSE), on which they 
must post information on individual tenders up until the signing of the contract; the LPSEs can be 
accessed through the portal http://inaproc.id/lpse. Provide rs of goods and services that want to take 
part in bidding processes must register with these LPSEs (this is free of charge). Almost all central 
government ministries and agencies as well as local governments have established their LPSEs, except 
some in th e eastern part of Indonesia. " 
 
Question:  
 
49. Is there a timeline in place for universal adoption of LPSEs by Indonesian central government 
ministries/agencies and local governments?  
 
Answer:  
 
There is no specific timeline to have LPSE. For example, if district governments cannot establish their 
own LPSEs due to lack of capacity, they can use LPSEs in their provincial level or nearest LPSE.  
  
Page 131 (Paragraph 3.183)  
 
"Reportedly, some of the main public procurement system challenges relate to: the NPP A's 
(Section  3.3.6.2) reliance on technical institutions to provide it with accurate and complete information, 
so it can carry out its monitoring function effectively; procurement exemptions (notably SOE purchases 
which do not use the state budget, and defence spending); and a lack of accountability of some aspects 
of the electronic system, including a non -transparent mechanism for determining which companies can 
enter the e -catalogue system. It has also been noted that although there is increased transp arency of 
public procurement information at the tendering phase through information posted at the various 
electronic portals, this is not the case for the post -tendering phase. " 
 
Question:  
 
50. What efforts are being made to increase the transparency of electr onic procurement systems?  
 
Answer:  
 
Procurement regulations urge the procurement process to be conducted via electronic means to create 
a more transparent, open, and efficient procurement process. For example, the integration (end to end) 
of the e -procure ment system (planning – execution - contract management – monitoring and WT/TPR/M/401/Add.1  
 
- 32 - 
 
  evaluation) would increase transparency. The Government of Indonesia commits and encourages the 
integration of budget planning and budget treasury with the procurement system. Further more, any 
interested bidder can download and access the bidding document freely without any charge.  
 
Page 132 (Paragraph 3.185)  
 
"The legislative framework for government procurement, including procurement methods, was revised 
by PR No. 16 of 2018 on Publi c Procurement of Goods/Services, that entered into force on 
22 March  2018.276 As set out in the preamble to the Regulation, the overall objectives of the new 
regulatory framework are to achieve value for money and contribute to: the increased use of domestic 
products; the increasing role of MSMEs; and sustainable development. The structure of the Regulation 
has been simplified as compared with its predecessor; it now only regulates normative aspects, leaving 
standard matters/procedures to be regulated  under NPPA regulations and related technical ministry 
regulations. " 
 
Question:  
 
51. Since the 2018 entry into force of new legislation on the public procurement of goods and services, 
what progress has been made in achieving the objectives of increasing t he use of domestic 
products; increasing the role of MSMEs; and sustainable development?  
 
Answer:  
 
1. Technical specification and document selection that use domestic product is one of the 
considerations in preparing procurement planning.  
2. The budget authority broadens the opportunities MSMEs to participate in Government Procurement 
(GP), through, inter alia, packaging mechanism for MSMEs without neglecting the principle of 
efficiency, fair business competition, and technical quality. There is a new sy stem to broaden 
participation of MSMEs, especially for direct procurement package. Furthermore, products of MSMEs 
are also published in the e -catalogue.  
3. NPPA circular letter has been issued regarding green products that can be used in GP.  
 
Page 134 (Paragr aph 3.194)  
 
"Under PR No. 16/2018, foreign companies may bid for international tenders/selection over certain 
thresholds (IDR 1 trillion for construction services; IDR 50 billion for goods and other services; and 
IDR 25 billion for consultancy services, in creased from IDR 100 billion for construction; IDR 20 billion 
for other goods/services; and IDR 10 billion for consulting, under PR No. 54/2010. " 
 
Question:  
 
52. Does Indonesia have statistics on the value and number of contracts awarded to foreign suppli ers 
above the thresholds set out under PR No. 16/2018?  
 
Answer:  
 
Since the procurement execution is distributed, such data can be found in each ministries/agencies/and 
local governments. Data of all tenders can be found in inaproc.id/tender.  
 
PART 3 – TRADE POLICIES AND PRACTICES BY MEASURE: 3.3.7 INTELLECTUAL PROPERTY 
RIGHTS  
Page 138 (Paragraph 3.210)  
  
Indonesia 's revised Patent Law, enacted in 2016, included new provisions requiring that inventions 
related to genetic resources and/or derived from tra ditional knowledge clearly specify the origin of the 
generic resources and/or traditional knowledge in the patent.  
 
Questions:  WT/TPR/M/401/Add.1  
 
- 33 - 
 
  53. Will Indonesia track the outcomes of this legislative change, to monitor the impact on innovation, 
and on holders of traditional knowledge?  
54. If so, would Indonesia please elaborate on how monitoring will occur and the anticipated 
timeframes?  
 
Answer:  
 
Monitoring will occur, among others, through advance application form in the event of inventions related 
to genetic re sources and/or derived from traditional knowledge, particularly in order to specify the origin 
of the genetic resources and/or traditional knowledge the anticipated timeframes is by the year of 2022.  
 
Page 139 (Paragraph 3.211)  
  
We note that Indonesia has  issued MLHR Regulation No. 30 of 2019, which states that in the event that 
the patent holder has not been able to implement his patent in Indonesia, he may suspend the 
manufacture of the patented products or the use of the patented processes in Indonesia.   
   
Question:  
  
55. What evidence does a patent holder need to provide in order to show that he has not been able to 
implement his patent in Indonesia?  
 
Answer:  
 
According to Article 41 MLHR No.30 of 2019, the patent holder should request the delay to ou r Minister 
with reason. The reason can be varied as circumstances allowed.  
 
56. Would Indonesia please elaborate on the standard a patent holder must meet in order to not be 
required to manufacture patented products or implement patented processes in Indon esia? 
 
Answer:  
 
According to our amended Law (Article 107 of Law No.11 of 2020), the patent holder still needs to 
implement the registered patent in Indonesia. One of the additions to our amended law is through 
importation.  
 
Page 141 (Paragraph 3.219) and page 144 (Paragraph 3.227)  
 
Indonesia 's new law on marks and geographical indications (GIs) entered into force in 2016 (Law No.  20 
of 2016). It includes more severe criminal sanctions, to provide protection for registered trademark 
owners from t rademark infringement. We note that criminal sanctions were also increased in Law No.  28 
of 2014 on Copyright.  
 
Questions:  
  
57. Has Indonesia noted a reduction in trademark and copyright infringement as a result of these 
increased criminal sanctions?  
 
Answer:  
 
Indonesia 's Copyright Law and Trademark Law are based on complaint offense because it is private and 
civil. Thus, the right owner has an absolute right whether to file a complaint or not for any infringements 
of their copyright or trademark. Howeve r, according to data from Directorate of Investigation and 
Dispute Settlement of DG of Intellectual Property, the number of reports for criminal infringement of 
copyright and trademark continues to decrease since the new laws enter into force.  
 
Questions:  
 WT/TPR/M/401/Add.1  
 
- 34 - 
 
  58. If so, would Indonesia please elaborate on the impact that increased criminal sanctions has had on 
trademark and copyright infringement?  
 
Answer:  
 
Since 2014 until 2020, the number of reports of Copyright infringement is about 1 to seven cases 
annuall y. On the other hand, the number of trademark infringement reports significantly decrease 
annually. The highest number is 40 cases of infringement reports in 2016 and 6 cases in 2020 (data per 
30 November 2020).  
 
Nonetheless, during the preliminary investi gation to investigation process, those cases ends by the 
issuance of Order for Termination of Investigation due to: lack of evidence to prosecute suspect, 
insufficient evidence to prove the infringement, the case being reported does not constitute a crimin al 
offense, investigation is null and void for certain reason such as nebis in idem, the suspect is deceased, 
and the case is expired.  
 
Page 144 (Paragraph 3.228)  
  
Per the Report, three new copyright -related regulations were issued over the review period, including 
the Joint Regulations of Minister of Law and Human Rights and Minister of Communication and 
Information Technology No. 14/2015 and No. 26/2015 on Taking Down Content and/or User's Access 
Right Infringing Copyright and Related Rights in El ectronic System.  
  
The noted regulations implement provisions on "procedures of filing reports on copyright infringement; 
procedures for report verification; taking down content and/or access rights; re -opening content and/or 
user's access rights; and lega l remedies. " 
 
Questions:  
 
59. Would Indonesia provide information on the feedback received from stakeholders (e.g., 
national/foreign rights holders/users) of the implementation and/or successes/challenges of the 
new provisions?  
 
Answer:  
 
We have received feedback from the Supreme Court suggesting to provide straightforward and simple 
enforcement procedures.   
We also received feedback from the US and EU conveyed informally during a meeting and negotiation. 
Both suggested that Indonesia nee d to provide more comprehensive enforcement against infringement 
on the internet. Therefore, enforcement would not only constitute blocking access or closing infringing 
sites. In doing so, Indonesia need to collaborate with other countries.  
 
PART 4 – TRAD E POLICIES BY SECTOR: 4.1.1 AGRICULTURE, FORESTRY, AND FISHERIES – 
FEATURES  
Page 148 (Paragraph 4.10)  
 
Indonesia 's Food Law of 2012 identifies self -sufficiency targets for several agricultural commodities 
including beef, soybeans and maize.   
 
60. Would Indonesia explain how its policy of self -sufficiency for certain agricultural products will not 
impact the domestic price or access to these products?    
 
Answer:  
 
Changes in domestic market prices for agricultural products have more impact on world prices in terms 
of demand and supply, not the impact of self -sufficiency policies.  
 WT/TPR/M/401/Add.1  
 
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  PART 4 – TRADE POLICIES BY SECTOR: 4.1.1 AGRICULTURE, FORESTRY, AND FISHERIES – 
POLICY, REGULATORY AND INSTITUTIONAL DEVELOPMENTS  
Page 150 (Paragraph 4.12)  
 
The Report notes that "Agricultural production would be determined by consumption needs, to fulfil a 
Desirable Dietary Pattern (DDP score 95.2 in 2024) ". 
 
61. Would Indonesia explain the significance of the Desirable Dietary Pattern and its score?  
 
Answer:  
 
Fulfilling food consumption is not only fulfilling in terms of quantity which is reflected in the total energy 
and protein, but also fulfilling aspects of diversity and nutrient balance, which is shown through the 
Desirable Dietary Pattern (PPH). The PPH sco re tends to increase and in 2018 the PPH score achieved 
was 91.3.  
 
Page 150 (Paragraph 4.12)  
 
Under Paragraph 4.12, the Report states that Indonesia programs aim at increasing production focus 
on rice, corn, soybeans, meat, chilis, and shallots.  
 
62. Would Indonesia specify through which specific programs it intends to use to focus production of 
each of these five products?  
 
Answer:  
 
Program to increase the production of agricultural products through the "Food Estate" program in 
Kalimantan (based on FAO rules).  
 
PART 4 – TRADE POLICIES BY SECTOR: 4.1.3 AGRICULTURE, FORESTRY, AND FISHERIES – 
BORDER MEASURES  
Page 153 (Paragraph 4.23)  
 
It is stated on Paragraph 4.23 of the Report that: "It seems that an import quota of 100,000 tonnes of 
water buffalo meat was issued for 2019, and BULOG has used 80% of it; no data on this measure was 
available from the  authorities. " 
 
63. Would Indonesia clarify if this import quota for water buffalo meat was issued for 2019, and if so, 
why no data was available from the authorities on it?  
 
Answer:  
 
Total imports of buffalo meat in 2019 by Perum BULOG amounted to 80% of the buffalo meat import 
quota of 100,000 tonnes. This is based on the decision of the coordination meeting chaired by the 
Coordinating Minister of Economy Affairs in July 2019.  
 
PART 4 – TRADE POLICIES BY SECTOR: 4.1.4 AGRICULTURE, FORESTRY, AND FISHERIES – 
DOMESTIC SUPPORT MEASURES  
Page 153 (Paragraph 4.26)  
 
There seems to be an error on the units used to describe WTO support under Paragraph 4.26. In order 
to reflect the 2018 and  2013 domestic support notifications, and programs numbers provided in this 
Report, Canada suggest that the unit "million " should be replaced by "trillion " throughout this Paragraph.  
 
Pages 153 -154 (Paragraph 4.26 and 4.27)  
 WT/TPR/M/401/Add.1  
 
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  Paragraph 4.26 (page 153) in the Report lists Indonesia 's domestic support commitments for calendar 
year 2018. However, in Paragraph 4.27, OECD producer support data for the period between 2011 and 
2015 is referenced.  
 
64. Would the significance of changes in agricultural support be bett er explained by using the same 
years to discuss these indicators?  
 
Answer:  
There might be some data discrepancies as the OECD uses the PSE calculation method while domestic 
support data is real data.  
Page 154 (Paragraph 4.27)  
 
Paragraph 4.27 references a table containing PSE statistics, however, the table referenced includes 
economic indicators rather than PSE indicators.  
 
"According to OECD data, between 2011 and 2015, Indonesia 's producer support estimate, representing 
transfers to producers, increased from an estimated USD 19 billion to about USD 36 billion, equivalent 
to 4.2% of GDP (Table 1.2). " 
 
The above statement refers to producer support as a percentage of GDP. However, the OECD Producer 
Support Estimate is usually expressed as a percentage of gr oss farm receipts, i.e., the percentage PSE, 
rather than as a percentage of GDP.  
 
65. Would Indonesia review this statement and the accompanying table and clarify the interpretation of 
the data in it?  
 
Answer:  
 
In 2018, Indonesia's producer support estimate (PSE), the annual monetary value of gross transfers to 
farmers was around IDR 409.6 trillion. PSE measured at the farm gate, includes policy measures that 
support farmers. Indonesia's PSE is calculated based on market price support, where policies  maintain 
domestic market prices for farm goods above those at the border and budget revenue foregone, where 
policies lower the price of inputs paid by farmers.  
 
PART 4 – TRADE POLICIES BY SECTOR: 4.1.5 AGRICULTURE, FORESTRY, AND FISHERIES – 
RICE  
Page 158  (Paragraph 4.47)  
 
Paragraph 4.47 of the Report states. "According to an external source, the average domestic price of 
medium quality rice exceeded the average world price over the period 2010 to mid -2018 by a big gap ". 
Canada notes that the name of the external source could be added to this sentence to add validity to 
this statement.  
 
66. Would Indonesia review this statement and consider including the names of the sources?  
 
Answer:  
 
The average domestic price of medium quality rice exceeded the average world price over the period 
2010 to mid -2018 by a big gap. This was caused by scarcity in fertilizer and climate change which 
caused a decline in production and demand imbalances. The data is sourced from BPS.  
 
PART 4 – TRADE POLICIES BY SECTOR: 4.1.7 AGRICULTURE, FORESTRY, AND FISHERIES – 
FORESTRY  
Page 166 (Paragraph 4.78)  
 WT/TPR/M/401/Add.1  
 
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  The Report details the ownership of forest land, stating that forest is mostly owned by the State (86.9%) 
and is classified into three categories: conservation forests, protecti on forests, and production forests. 
It also mentions that more than half of the total forest area is production forest, consisting of permanent 
production forest, limited production forest, and convertible production forest.  
 
67. What share of timber products sourced  from conservation and protection forests through domestic 
capital is directed to the domestic market, as opposed to those directed to exports (cf. Paragraph 
4.87 p.169)2? What about timber sourced from production forest areas: what proportion is e xported 
vs used domestically?  
 
Answer:  
 
There is no timber sourced from conservation and protection forest areas as there is a regulation which 
prohibits timber harvesting, especially for commercial uses, from those areas.  
 
68. Which category of production forests (permanent, limited and convertible) is the most used for 
timber harvesting?  
 
Answer:  
 
Permanent production forest.  
 
Page 167 (Paragraph 4.80)  
 
According to the Report, reduction of the deforestation rate is one of the forestry policy objectives that 
were prioritized during the review period.  
 
69. What is the rate of deforestation that is caused specifically by timber harvesting and how has it 
evolved in the past years, in comparison with the decrease/overall trend of total deforesta tion rate?  
 
Answer:  
 
In the period of 2018 -2019 the rate of deforestation caused by timber harvesting was recorded at 
0.27 million hectares, whereby the total rate of deforestation is 0.46 million hectares.  
 
Page 168 (Paragraph 4.84)  
 
The Report indicates that the rate of deforestation in areas covered by the licensing ban dropped by 
38% between 2011 and 2018, according to MoEF data. In the same Paragraph, the Report mentions 
that analysis of satellite imagery by Greenpeace, based on a different a pproach for defining the condition 
of primary forest and tree cover loss, showed the opposite.  
 
70. To what extent were enforcement laws and practices adapted to the 2018 moratorium on new 
licences for oil palm plantations and the subsequent permanent licensin g ban in 2019?  Did those 
policies result in a surge in illegal cutting/clearing in conservation and protected forests?  
 
Answer:  
 
So far, the enforcement laws and practices adapted to the 2018 moratorium on new licenses for oil palm 
plantations and the subsequent permanent licensing ban in 2019 have been well -implemented. There is 
no illegal cutting/clearing in conservation and protected forests as long as the the policies are in effect. 
Indonesia has been practicing environmental sustainability accordin g to the United Nations -SDGs.  
 
Page 168 (Paragraph 4.86)  
  
 
2 Paragraph 4.87 p. 169  : “Under the 2016 negative investment list, the upstream exploitation of timber 
forest products from natural forests is entirely reserved  for domestic capital (Section 2.4.2, Table 2.5).”  WT/TPR/M/401/Add.1  
 
- 38 - 
 
  The Report underscores the outcomes of the social forestry programme, which, according to the MoEF, 
had distributed permits for 6,622 groups, covering 4.2 million ha for about 857,819 households, a s of 
May 30, 2020. In the same Paragraph, it is also mentioned that deforestation dropped from 1.09 million 
ha in 2015 to 0.479 million ha in 2017, and that more than 2 million trees, including teak, mahogany, 
and sengon, were saved from illegal logging.  
 
71. Knowing that the social forestry programme targeted 4.6% of forestland so far (4.2 million ha out 
of 91 million ha), how did it influence the drop of deforestation? In other words, what proportion of 
the overall deforestation drop (i.e. 0.611 million ha be tween 2015 and 2017) is directly tied to the 
outcomes of this programme?  
 
Answer:  
 
The Social forestry program targeted 12.7 million ha out of 120 million ha of state forest areas. The 
progress so far is recorded at 4.2 million ha. The social forestry pro gram is designed to provide 
community access to the state forests especially in the degraded forest areas so that the forests can be 
rehabilitated to prevent further degradation that may lead to deforestation. Thus, it is difficult to relate 
the proportion  of social forestry program in the reduction of deforestation.  
 
72. How was the estimation/assessment of 2 million trees saved from illegal logging made? Is it 
exclusively an outcome of the social forestry programme or does the scope of this estimation cover 
the entire forest land?  
 
Answer:  
 
The estimation was made by calculating the average stands that can be saved from clear cutting. This 
is an outcome from only part of the social forestry program conducted in Java.  
 
Page 170 (Paragraph 4.93)   
 
The Report out lines the unbalanced ratio between the number of officers and the size of the forest area 
to be supervised.  
 
73. Question: Given the abovementioned unbalanced ratio, is there any prioritization strategy to oversee 
and supervise the different areas/categories o f forest land?  
 
Answer:  
 
Priority is given to conservation and protection forests. In the event the number of officers is limited a 
strategy to involve local communities in forest management and protection is conducted.  
 
Page 192 (Paragraph 4.168)  
 
"The bulk of manufacturing firms continue to be micro and small firms (99.3%), with only a small and 
diminishing percentage accounted for or by medium and large firms (less than 1%); SMEs are not 
linked to GVCs, and face numerous obstacles to growth. " 
 
Question s: 
 
74. What types of barriers do Indonesian MSMEs face in accessing/joining GVCs?  
75. Do women face unique barriers to accessing/joining GVCs in Indonesia?  
 
Answer:  
 
74. MSMEs relatively get less exposure relating to information to engage in international trade.  
75. Some barriers to access and join GVCs faced by SMEs led by woman are: a) socio -economic disparity 
(lack of support from family to do business, difficult to manage time between their household and 
business, heavy household responsibilit ies, religious, cultural, traditional and legal norms barriers); WT/TPR/M/401/Add.1  
 
- 39 - 
 
  b) infrastructural challenges (affordability of connectivity and handset devices since women have 
relatively lower incomes and less financial independence, difficult to get business license);  c) limited 
understanding on digital platform (lack of digital literacy, technical and social skills); d) lack of 
access to finance; and e) barriers to participating in e -commerce.  
 
PART 4 – TRADE POLICIES BY SECTOR: 4.2.1 MINING  
Page 171 (Paragraph 4.96)  
 
The Report outlines that under the Mining Law, which removed some of the distinctions between 
domestic and foreign investors, and the 2016 negative investment list (Section 2.4.2, Table 2.6, which 
does not refer to mining (except for oil and gas)), it appears that less than 100% foreign investment in 
the mining sector is allowed, subject to the foreign share ownership divestment rules on the transition 
from the pre -2009 licensing regime to the current one (i.e. conversion of CoWs and Coal Contracts of 
Work (CCoWs) to the new licensing system).  
 
Question:  
 
76. Is it mandatory to form a joint venture with a local partner for foreign companies wishing to invest 
in the Indonesian mining sector?  
 
Answer:  
 
It is not mandatory to form a Joint Venture with a local partner for foreign companies wishing to 
invest in Indonesian mining sector.  
 
Question:  
 
77. Beyond what is set out in the Mining Law and the 2016 negative investment list, are there any 
further current or planned investment -related requir ements.  
 
Answer:  
 
All requirements are in accordance with the Mining Law and negative investment list.  
 
PART 4 – TRADE POLICIES BY SECTOR: 4.2.2.1.1 HYDROCARBONS – UPSTREAM  
Page 180 (Paragraph 4.123)  
 
The Report describes Indonesia 's 2016 negative investment list, stating the restrictions imposed on 
foreign investment companies for oil and gas, and replaced the 2014 list. Restrictions include a ban on 
onshore drilling, a maximum foreign shareholding of 75% or offshore drilling, and describes other a reas 
where there is an investment ownership cap.  
 
Question:  
 
78. Has the new 2016 negative investment list have any effects or results on boosting domestic 
production in Indonesia?  
 
Answer:  
 
The 2016 negative list investment attracts more investors.  
 
Question:  
 
79. Given the latest list is almost 5 years old, are there any upcoming plans to further protect or 
liberalize the sector?  
 
Answer:  
 WT/TPR/M/401/Add.1  
 
- 40 - 
 
  Updating of the negative list is still under process.  
 
PART 4 – TRADE POLICIES BY SECTOR: 4.2.2.1.2 HYDROCARBONS – DOWNSTREAM  
Page 183 (Paragraph 4.138)  
 
The Report states that as of June 2020 Indonesia is preparing a programme to reduce imports of LPG 
by substituting with dimethyl ether from coal. No further  information is given.  
 
Question:  
 
80. Does Indonesia have additional details on the scope of their LPG substitution program and 
implementation timeline, as well as targets on how much LPG will be replaced by dimethyl ether?  
 
Answer:  
 
The LPG substitution program is still in preparation and still under study.  
 
PART 4 – TRADE POLICIES BY SECTOR: 4.2.2.2 ELECTRICITY  
Page 186 (Paragraph 4.149)  
 
During the review period, the main legislation governing electricity, Law No. 30/2009, remained 
unchanged but several new or amended implementing regulations were issued.  
 
Questio n: 
 
81. Would Indonesia provide an overview of the changes brought about by the identified new or 
amended implementing regulations?  
 
Answer:  
 
There is no plan to revise the Law No. 30/2009.  
 
PART 4 – TRADE POLICIES BY SECTOR: 4.3.6 MANUFACTURING – AUTOMOTIVE  
Page 197 (Paragraph 4.188)  
 
The Report states that Indonesia introduced a presidential regulation (PR No. 55/2019) on Electric 
vehicles. This PR places a mini mum domestic content of 40% for two -wheeled or three -wheeled EVs 
manufactured between 2019 and 2023, a minimum of 60% if the EVs are produced between 2024 and 
2025, and a minimum of 80% if they are manufactured after 2026.  
 
82. Can Indonesia explain how PR No. 55/2019 is consistent with the obligations of national treatment?  
 
Answer:  
 
Indonesia is committed to reducing CO2 emission. The ultimate goals of the policy are to improve the 
environment (CO2 and Pollutant reduction), to enhance science & technology for CASE era, human 
capital (Research & Development), and capacity building of Domestic EV Maker. This policy also treats 
both domestic and foreign investors equally.  
 
PART 4 – TRADE POLICIES BY SECTOR: 4.4.3.2 SERVICES – FINTECH  
Page 205 (Paragraph 4.4.3.2, Table 4.9 Fintech Regulations, May 2020)  
 
No.13/POJK.02/2018 on Digital Financial Innovation in the Financial Services Sector: "Any fintech 
companies that are not y et regulated by other authorities must apply to the OJK to go through the 
regulatory sandbox process and get registered. "  
 
Question:  
 WT/TPR/M/401/Add.1  
 
- 41 - 
 
  83. Do you have any examples of fintechs regulated by other authorities?  
 
Answer:  
 
There are several regulators supervising fintech in Indonesia.  For instance, Bank Indonesia is the 
regulator for the payment system and e -money. Bank Indonesia Regulation No. 19/10/PBI/2017 on 
Fintech Companies is intended to support the fintech ecosystem and the Indonesian economy, i n 
particular, payment system providers. Payment system providers are obliged to register at Bank of 
Indonesia and cannot offer cryptocurrency. They are all required to be tested in the regulatory sandbox 
for around a year before they apply for a license.  Bank Indonesia Regulation No. 20/6/PBI/2018 on 
Electronic Money (E -money). The regulation is intended to accommodate the development of business 
model of e -money. The institutional capacity of e -money issuers is enhanced, including capital and 
ownership com position.  
 
Question:  
 
84. Can Indonesia please provide more information on what its "regulatory sandbox process " entails?  
 
Answer:  
 
According to OJK Regulation (Peraturan OJK/POJK) 13 /POJK.02/2018 on Digital Finance Innovation, 
Regulatory Sandbox shall be the examination mechanism carried out by OJK to assess the reliability of 
business process, business model, financial instrument, and governance of the Financial Innovator.  OJK 
shall perform Regulatory Sandbox to ensure that Financial Innovator fulfils the  criteria. Regulatory 
Sandbox shall be performed within a maximum period of 1 (one) year and can be extended for 6 (six) 
months, if required. The result of Regulatory Sandbox on the Financial Innovator shall be stated with 
the status of: a. recommended; b.  to be rectified; or c. not recommended.  
 
Question:  
  
85. Is a fintech company that goes through the regulatory sandbox and registration process subject to 
prudential regulation?  
 
Answer:  
 
It may be subject to prudential or market conduct regulations, depending on the result of sandbox 
examination scenarios, such as business model and the risk mitigation.  
  
Page 207 (Paragraph 4.213)  
 
"Since then, GR No. 3 of 2020 was issued, which stipulates that, if foreign ownership in an insurance 
company, which is not a public company, exceeded 80% at the time that the Regulation entered into 
force, the insurance company was excluded from the foreign ownership ceiling but may not increase its 
foreign ownership share. "  
 
Question:  
 
86. How do the foreign ownership rules apply to grandfathered entities seeking to acquire or merge with 
a domestic or foreign -owned insurance company?  
 
Answer:  
 
Insurance company that is eligible to obtain the grandfathering measure (foreign ownership of more 
than 80%), may carry out acquisitions by retaining the portion of their previous ownership.  
If the insurance company carries out a merger, the limit of fore ign ownership will depend on, whether 
or not, the other company is eligible to obtain grandfathering measures.  
 
Question:  WT/TPR/M/401/Add.1  
 
- 42 - 
 
  87. Does the GR No. 3 existing ownership exemption apply to the ownership of a separate Sharia division 
or business line?  
 
Answer:  
 
Yes, the GR No.3 also applies to the ownership of a separate sharia division.  
 
Page 207 (Paragraph 4.215)  
 
"As noted by an external source, other key developments from the 2014 Insurance Law are: […] (i) 
insurance and reinsurance companies must separated into a stand -alone entity all sharia divisions within 
10 years of the enactment of the Law, or when the sharia component exceeds 50%, whichever is earlier 
[…]" 
 
Question:  
 
88. Are foreign entities able to both hold and acquire Sharia financial instit utions?  
 
Answer:  
 
Yes, foreign entities are able to both hold and acquire Sharia financial institutions.  
 
Page 207 (Paragraph 4.215)  
 
"As noted by an external source, other key developments from the 2014 Insurance Law are: […] (iv) 
insurance and reinsurance companies must optimize domestic capacity (i.e. they must provide local 
reinsurance coverage "as far as possible "); apparently the id ea is to encourage all insurers and 
reinsurers to assist in the expansion of the local market. " 
 
Question:  
 
89. What does an insurance or reinsurance company have to do to meet the requirement of providing 
local reinsurance coverage "as far as possible "?  
 
Answer:  
 
Local insurance and reinsurance companies shall maximize their own retention capacity, before they 
reinsure with international reinsurance companies, with due observance of the risk management.  
 
Priorities in determining reinsurance company to reinsure is regulated in OJK Regulation 
No. 14/POJK.05/2015 concerning Own Retention and Reinsurance.  
 
Question:  
 
90. Under what circumstances would it be permissible for companies to reinsure with companies outside 
of Indonesia?  
 
Answer:  
 
Indonesian insurance companies may reinsure with international reinsurance companies, as long as they 
comply with the requirements set out in OJK Regulation No. 14/POJK.05/2015 concerning Own Retention 
and Reinsurance, and its amendment (OJK Regulation 39/POJK.05/2020).  
 
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
PART 3 – TRADE AND TRADE RELATED POLICY: 3.2 INTER NATIONAL TRADE ENGAGEMENT – 
BILATERAL   
Page 11 (Paragraphs 3.2 and 3.3)  WT/TPR/M/401/Add.1  
 
- 43 - 
 
  "By the end of the time period covered in this trade policy review, Indonesia had implemented four 
bilateral trade negotiations, namely the Indonesia -Pakistan PTA, the trade in goods component of the 
Indonesia -Chile CEPA, the Indonesia -Japan EPA, and the Indonesia -Australia CEPA. Three bilateral 
negotiations were in the ratification stage, namely Indonesia -EFTA CEPA, Indonesia -Mozambique PTA, 
and Indonesia -Korea CEPA. " 
 
Question:  
 
91. Recent media reports suggest that Indonesia and Korea have completed negotiations, but have not 
yet signed the Indonesia -Korea Comprehensive Economic Partnership Agreement (IK -CEPA), 
however, the Report indicates that the agreement is in the ratifica tion stage. Would Indonesia please 
clarify the status of the agreement?  
 
Answer:  
 
Indonesia and South Korea agreed to sign the IK -CEPA in mid -December 2020. The ratification process 
will begin after the agreement is signed.  
 
92. If the agreement has not yet been signed, what is Indonesia 's expected timeline for signature, 
ratification, and entry into force?  
 
Answer:  
 
The IK -CEPA will be signed in mid -December 2020. The ratification process will begin in early 2021 and 
is expected to be completed in the t hird quarter of 2021 so that it can be implemented/entered into 
force thereafter.  
 
93. At what stage does Indonesia intend to publish the full text of the IK -CEPA?  
 
Answer:  
 
Indonesia will publish the full text of the IK -CEPA agreement after the agreement is entry into force.  
 
PART 3 – TRADE AND TRADE RELATED POLICY: 4.2.7 SECTORAL POLICIES – MICRO, SMALL 
AND MEDIUM -SIZED ENTERPRISES (MSMES)  
Page 19 (Paragraph 4.31)  
 
According to the data from the Ministry of Cooperatives and SMEs, there are approximately 64.19 million 
units of MSMEs in Indonesia.   
 
Questions:  
 
94. How are MSMEs defined for the purposes of statistical and policy analysis?  
95. How are cooperatives defined?  
96. Canada would welcome any readily available statistics on the role of SMEs in Ind onesia 's economy 
and participation in international trade, specifically: (i) percentage of businesses that are SMEs; (ii) 
employment profiles of SMEs, e.g., percentage of total employment generate by SMEs; and (iii) 
exports and imports by SMEs, e.g., perce ntage of all exports and imports for SMEs, total number of 
SMEs that are exporting and importing.   
97. Does Indonesia collect statistics on SME or cooperative ownership by diverse groups (e.g., women, 
youth, etc.)? If so, please provide that information.   
 
Answer:  
 
94. Government defines SMEs based on Law No. 20/2008, however the criteria will be revised in 
implementing regulation of Job Creation Law  
 WT/TPR/M/401/Add.1  
 
- 44 - 
 
  95. That cooperatives, both as a people's economic movement as well as business entities participate 
in creating a developed society, fair and prosperous based on Pancasila and the Constitution of 
1945 in the national economic order which is structured as a business partnership based on the 
principles of collaboration and economic democracy (C hapeau);  
 
Cooperatives are business entities whose membership are those individuals or cooperative legal 
entities which their activities based on principles of cooperative, people's based economic 
movement and collaboration all at once. (Article 1.1 Cooper ative Law No. 25/1992)  
 
96. SMEs Contribution to Percentage of businesses that are SMEs (99%); National GDP (61.07%); 
National Employment (97%); and National Export (14.37%).  
 
97. Indonesia 's cooperative ownership by women is 11,375 units and by the youth is 288 units.  
 
Page 19 (Paragraph 4.34)  
 
Indonesia recognizes MSMEs as an engine of Indonesia 's economic growth.   
 
Question:  
 
98. Does Indonesia include provisions in its trade agreements that support SMEs in cross -border 
trade, e.g., cooperation, investment? If so, please provide an overview of these provisions.   
 
Answer:  
 
Provisions to support MSMEs are existed in several Indonesia's bilateral trade agreements. It can be in 
Economic Cooperation, TIS, or Investment.  WT/TPR/M/401/Add.1  
 
- 45 - 
 
  ARGENTINA  
PREGUNTAS FORMULADAS POR LA REPÚBLICA ARGENTINA  
 
Question:  
 
a- Bajo el párrafo 3.128, el Informe menciona la introducción progresiva de nuevos requisitos 
obligatorios de etiquetado y certificación para productos halal en virtud de la Ley No 33/2014 de Garantía 
de los Productos Halal y su reglamento de aplicación GR No 31/2019. Se apreciará contar con mayores 
detalles sobre los mecanismos regulatorios de la certificación halal, en particular en lo referente al 
organismo de aplicación y a los productos qu e abarcará.  
 
Answer:  
 
In accordance with the provisions of Article 37 of the JPH Law and Article 139 Minister of Religious Affairs  
Regulation 26 of 2019, BPJPH establishes a national halal label. The implementation of the obligation to 
include MUI's halal label with the halal label from BPJPH is stipulated with a 5 -year transition period 
from 2019. The product coverage as notified under G/TBT/N/IDN/123 are: a) food and beverages; b) 
traditional medicine and health supplement; c) medicine (free medicine or o ver the counter drugs and 
limited free medicine); d) prescription drug, excluding psychotropic; e) cosmetic, chemical product and 
genetically engineered product; f) clothing, headgear and accessories; g) household appliances, Muslim 
worship equipment, stat ionery and office equipment; and h) goods for medical devices risk.  
 
Question:  
 
b- En el párrafo 1.17, el Informe se refiere al Plan Estratégico Ministerial 2015 -2019 sobre igualdad de 
género y empoderamiento de las mujeres, y a lo dispuesto en el Reglamen to Ministerial No 2/2016 
sobre orientaciones generales destinadas a las actividades industriales realizadas en el hogar para 
mejorar el bienestar familiar. Se agradecerá contar con mayor información sobre las principales líneas 
del plan y los avances más s ignificativos registrados hasta ahora.  
  
Answer:  
 
Home -based industry development is a priority program which three objectives are:  1) end violence to 
women and children; 2) end human trafficking; 3) end the gap of economic access for women. This 
programme facilitates development home -based industry model including mapping industry players in 
villages, facilitating capacity building and technical assistance, and assisting to promote business. In 
2016-2018, counted more than 3,700 business players i n 21 districts and 16 provinces.  
 
Question:  
 
c- En el párrafo 4.271 del Informe se hace referencia el Movimiento Nacional de las Pymes en favor de 
los Servicios en Línea, lanzado en abril de 2018, y se dan precisiones sobre su alcance y objetivos, que 
abarcan no solo un aumento de la comercialización digital de productos y servicios, sino también la 
introducción de la tecnología más reciente dentro de esa esfera a los procesos productivos y 
operacionales de las Pymes. Mucho se agradecerá recibir información  sobre las principales 
características del Movimiento, así como los resultados obtenidos en esta primera etapa en materia de 
adopción de plataformas digitales por parte de las Pymes del país, y los desafíos que se han presentado 
hasta ahora para la consecu ción de los objetivos buscados.  
 
Answer:  
 
There is a program MSMEs Go Online which is conducted by Ministry of Cooperatives and SMEs with 
Ministry of Communication and Information Technology 's assistance to take advantage of existing digital 
platforms, for example utilizing Tokopedia or other Marketplaces, and the Social Media Shop; 
photo -taking training to be uploaded on the Marketplace. The main thing is to improve digital literacy 
for MSMEs. The challenges of the level of digital literacy are, inter alia, low availability of internet access 
(infrastructure), transaction security due to marketplace -related matters, and capital.  WT/TPR/M/401/Add.1  
 
- 46 - 
 
  d- Bajo el párrafo 4.11, el Informe describe el Plan Nacional de Desarrollo a Medio Plazo (RPJMN) 
2015-2019, al que se refiere como el marco más amplio sobre el cual se basó la política agropecuaria 
de Indonesia durante el período bajo examen. Luego en el párrafo 4.12 se adelantan los principales 
aspectos del Programa de Desarrollo 2020 -2024. Se apreciará cont ar con mayores detalles sobre los 
resultados alcanzados y las lecciones aprendidas luego de la implementación del Plan Nacional de 
Desarrollo 2015 -2019, así como la manera en que dicha experiencia fue volcada al nuevo plan.  
 
Answer:  
 
Programs that focus on  improving agricultural production which has succeeded in building dams for 
irrigation in many provinces such as Rajui dam in Aceh Province, Jatigede dam in West Java Province, 
Bajulmati Dam and Nipah dam in East Java Province and Titab dam in Bali Provinc e, etc.  
 
Up until 2017, the achievement of irrigation development reaches around 328,988 ha or 32.90% from 
the target in RPJMN 2015 -2019.  
 
Question:  
 
e- El párrafo 2.18 se refiere a varios aspectos de la Ley General de Creación de Empleo (también 
conocida  como Ley Ómnibus), entre ellos, que afectaría directamente a la política comercial y abarcaría 
once esferas, siendo una de ellas la aplicación de trámites para la obtención de licencias. Mucho se 
agradecerá contar con mayor información acerca del modo y l a fecha de implementación de la 
mencionada Ley, así como sobre el tipo de protección que brindará a los sectores de producción 
priorizados por el gobierno.  
 
Answer:  
 
The implementing regulations of Job Creation Law (Omnibus Law) is under discussion.WT/TPR/M/401/Add.1  
 
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  PERU  
Preguntas del Perú – Examen de las Políticas Comerciales de Indonesia  
 
Informe de la Secretaría de la OMC (WT/TPR/S/401)  
 
1.17. Indonesia ha seguido incorporando una perspectiva de género en sus políticas económicas, en 
particular mediante  el Plan Estratégico Ministerial 2015 -2019 sobre la igualdad de género y el 
empoderamiento de las mujeres. En respuesta a la política de moratoria con respecto al envío de 
trabajadores migrantes indonesios al extranjero (de los cuales casi el 70% eran muje res), en virtud de 
lo dispuesto en el Reglamento Ministerial Nº 2/2016 sobre orientaciones generales destinadas a las 
actividades industriales realizadas en el hogar para mejorar el bienestar familiar, se ha hecho hincapié 
en el empoderamiento económico de  las mujeres y el aumento de la resiliencia de las familias.  
 
Question s: 
 
1.- ¿Podría Indonesia indicar las demás acciones, proyectos o prácticas para fomentar el 
empoderamiento económico de la mujer que fueron parte del Plan Estratégico Ministerial 2015 -2019, 
especialmente las relacionadas con el comercio?  
 
Answer:  
 
Government has home -based industry development has stipulated Ministerial Regulation No. 2/2016 
regarding Guideline Development of Home -based Industry to Improving Family Welfare through 
Empowering Women. Indonesia will renew the Ministerial Strategic Plan 2015 -2019 on gender equality 
and the empowerment of women. Trade -related issues are in the process of discussion with 
stakeholders.  
 
2.- ¿Se tiene prevista la reno vación del Plan Estratégico Ministerial 2015 -2019 sobre la igualdad de 
género y el empoderamiento de las mujeres? De ser el caso, ¿contendrá dicho Plan acciones en el ámbito 
del empoderamiento económico de la mujer a través del comercio? De ser el caso, ¿q ué acciones?  
 
Answer:  
 
Indonesia will renew the Ministerial Strategic Plan 2015 -2019 on gender equality and the empowerment 
of women and currently is under review. Trade -related issues are in the process of discussion with 
stakeholders.  
 
3.- ¿Qué porcenta je de los trabajadores de las empresas indonesias que se involucran en el comercio 
internacional, es mujer? ¿Qué puestos/cargos son ocupados predominantemente por mujeres dentro de 
dichas empresas?  
 
Answer:  
 
Globally, there are about 51 percent of women wh o are involved in the workforce including in the trade 
sector, compared to men, is around 82 percent. Basically, this figure has not changed in the last 
20 years.  
 
4.- ¿Qué otras acciones públicas y/o privadas, internacionales o nacionales, se han llevado a cabo en 
Indonesia durante el período bajo examen para fomentar una mayor participación de la mujer en la 
economía y en particular en el comercio internacional? ¿Cuáles fueron sus resultados?  
 
Answer:  
 
Indonesia has conducted cooperation with various Int ernational/national organizations to empower 
women in economy, such as cooperation between Indonesia -UK Tech Hub from UK Embassy in Jakarta 
to conduct Digital Literacy and Business Training to home -based women's industry players.  
 WT/TPR/M/401/Add.1  
 
- 48 - 
 
  CHILE  
WT/TPR/S/401 – Indonesia (informe de Secretaría OMC)  
 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
3.1 Medidas que afectan directamente a las importaciones  
3.1.3 Aranceles  
3.1.6.2 Salvaguardias  
 
Párrafo 3.69, páginas 97 -98 
 
"El GR Nº 34 prevé la "consideración del interés nacional", en virtud de la cual el Ministerio de Comercio 
examina las recomendaciones del KPPI para asegurarse de que la medida prevista es de interés nacional 
(102). La rama de producción puede presentar un plan de reajuste estr uctural al KPPI como parte del 
proceso de investigación; durante el período objeto de examen, el KPPI supervisó y evaluó anualmente 
esos planes, pero las autoridades no facilitaron más información sobre casos específicos ".  
[Nota al pie 102: Por "considera ciones de interés nacional" se entienden las consideraciones relativas a 
los intereses generales que tengan relación directa o indirecta con la medida de salvaguardia, como las 
siguientes: consideraciones relativas a la existencia de la rama de producción del solicitante en el país 
como parte directamente perjudicada debido al aumento de las importaciones causante del daño grave 
o la amenaza de daño grave, ya sea financiero o en forma de disminución de la parte del mercado, de 
reducción del número de emplea dos, de pérdidas, etc.; y consideraciones relativas a los efectos de la 
medida de salvaguardia en las ramas de producción del país teniendo en cuenta el interés en desarrollar 
la rama de producción nacional, la seguridad alimentaria nacional y la estabilid ad de los precios de los 
alimentos y en aumentar el empleo, así como los intereses fiscales. Documento G/SG/N/1/IDN/3 de la 
OMC, de 22 de diciembre de 2011. En el documento WT/TPR/S/278/Rev.1 de la OMC, de 16 de julio de 
2013, figura más información sobre el marco reglamentario y de procedimiento en esta esfera].   
 
Pregunta: en relación con el término "consideración del interés nacional ", mencionado en el contexto de 
la evaluación de las recomendaciones del KPPI en investigaciones por Salvaguardias Globale s (párrafo 
3.69 y nota al pie 102), Chile agradecería si Indonesia pudiera aclarar si el Ministro de Comercio podría 
tomar en consideración argumentos de organismos externo a su Gobierno, tales como organizaciones 
de consumidores o ONGs, para las determina ciones de consideración del interés nacional.  
 
Answer:  
 
According to Government Regulation no. 34/2011 article 81 paragraph 1, it is stated that in order to 
obtain consideration in the framework of the national interest, Minister of Trade submits the Indonesian 
Safeguards Committee's (KPPI) recommendations to the ministers and/or heads of non -ministerial 
government agencies related to the products under investigation, and ask them to respond on it. 
Therefore, it can be referred that, there is no consum er organizations or NGO's at the national interest, 
only the minister and/or heads of non -ministerial government related to the products under 
investigation.  
 
3.3 Medidas que afectan a la producción y al comercio  
3.3.3 Prescripciones sanitarias y fitosanit arias  
3.3.3.2 Medidas sanitarias y fitosanitarias  
3.3.3.2.3 Horticultura  
Párrafo 3.143, página 138  
 
"El reconocimiento de los sistemas de control de la inocuidad de los alimentos y las  prescripciones de 
registro de los laboratorios para la importación en I ndonesia de alimentos frescos de origen vegetal se 
rigen por el Reglamento Nº 55/2016 del MoA sobre el control de la inocuidad de los alimentos frescos 
de origen vegetal importados o exportados, que se notificó a la OMC. En él se estipula que solo podrán 
importarse en Indonesia alimentos frescos de origen vegetal procedentes de países cuyos sistemas de 
control de la inocuidad de los alimentos hayan sido reconocidos por Indonesia o de países con 
laboratorios de pruebas de inocuidad de los alimentos registrad os. Según las autoridades, los cambios 
introducidos mediante el Reglamento tenían por objeto simplificar el procedimiento de importación. A WT/TPR/M/401/Add.1  
 
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  finales de abril de 2020, se había concedido acceso al mercado indonesio a 36 interlocutores 
comerciales. El Centro de Cuarentena Fitosanitaria y Seguridad Biológica lleva a cabo un análisis del 
riesgo de plagas de los productos vegetales que se van a importar por primera vez en Indonesia. La 
lista de estas evaluaciones del riesgo está a disposición del público. Según h an indicado las autoridades, 
el tiempo necesario para completar una evaluación del riesgo suele oscilar entre seis meses y dos años, 
dependiendo de si la documentación presentada por el país exportador está completa. No se cobra 
ninguna tasa ". 
 
Pregunta:  En el párrafo 3.143 Indonesia señala que se estipula que solo podrán importarse en Indonesia 
alimentos frescos de origen vegetal procedentes de países cuyos sistemas de control de la inocuidad de 
los alimentos hayan sido reconocidos por Indonesia  o de países con laboratorios de pruebas de inocuidad 
de los alimentos registrados. Al respecto, Chile agradecería a Indonesia compartir información sobre la 
relación del reconocimiento del sistema de inocuidad de sus socios comerciales, con la regulación local 
que además obliga a exportadores a solicitar recomendaciones al Ministerio de Agricultura para tener 
obtener determinadas licencias de exportación por parte del Ministerio de Comercio.  
 
Answer:  
 
Basically, PSAT and lab registration are not related to import licenses but rather to SPS Measures. 
Regarding PSAT recognition and lab registration, Indonesia cq. Barantan will re -examine.  
 
3.3.3.2.6 Prescripciones halal  
Párrafo 3.151, página 140  
 
"De conformidad con la Ley de Garantía de los Productos Halal de 2014 y su reglamento de aplicación 
(GR Nº 31/2019), todos los productos halal vendidos en el mercado indonesio deben contar con un 
certificado del Organismo de Certificación de Productos Halal (BPJPH), recientemente establecido en el 
Ministerio de Asuntos Religiosos. Antes, la certificación era voluntaria y estaba a cargo del Consejo 
Ulema de Indonesia. Desde 2019 se aplican prescripciones en materia de certificación halal a los 
alimentos y las bebidas; en el período comprendido entre 202 1 y 2026 también se introducirán para 
otros productos (sección 3.3.2.5). Según han indicado las autoridades, pueden aceptarse todos los 
certificados halal expedidos por organismos de certificación halal extranjeros que cooperen con el BPJPH; 
a mediados de 2020 había 45 organismos de ese tipo en 26 países. Los importadores deben registrar 
los certificados halal en el BPJPH y colocar el número de registro en el envase antes de que el producto 
pueda distribuirse en Indonesia. Como se indica en la sección 3.3.2 .5, en el Comité OTC de la OMC se 
plantearon varias preocupaciones acerca de la aplicación de esta Ley, en particular con respecto a las 
prescripciones en materia de etiquetado y certificación ".  
 
Pregunta: En el párrafo 3.151 se indica que, a mediados del año 2020, había 45 organismos de 
certificación halal extranjeros que cooperaban con BPJPH. Al respecto, Chile agradecería a Indonesia si 
pudiera explicar cuál es el proceso que llevaron a cabo esos organismos para alcanzar este estatus de 
cooperación, junto con indicar si actualmente Indonesia reconoce los certificados emitidos por esos 45 
organismos.  
 
Pregunta: Chile agradecería a Indonesia compartir si tiene contemplado establecer un proceso de 
reconocimiento directo entre los centros certifi cadores en terceros países y el BPJPH.  
 
Answer:  
 
Foreign halal institutions that can have cooperation should be established by the government or 
state-recognized Islamic religious institutions. The foreign halal institution is accredited by an 
accreditati on agency in the country that obtain recognition from a regional or international accreditation 
cooperation organization. The accreditation agency in the country is an institution that has collaborated 
to develop mutual recognition scheme and mutual accept ance of the conformity assessment. 
Accreditation in the country is carried out in accordance with Indonesian halal standards set by 
non-ministerial government agencies that carry out government tasks in the field of standardization and 
conformity assessmen t.  Subject related to international cooperation have been regulated by Minister 
of Religious Affairs  Regulation No. 26 of 2019.  WT/TPR/M/401/Add.1  
 
- 50 - 
 
  Pregunta : Chile agradecería a Indonesia esclarecer las etapas del proceso de cooperación en asegurar 
la garantía de los productos halal, compartiendo la información sobre las etapas sucesivas a la firma del 
MdE. 
 
Answer:  
 
BPJPH will carry out a verification process for foreign halal institutions that have applied for halal 
certification cooperation by taking into account th e provisions in accordance with PMA 26/2019.  
 
3.3.4.2 Controles de precios  
Párrafo 3.166, página 145  
 
"El precio de venta del carbón para el suministro de electricidad con fines públicos está regulado desde 
2018. Para 2020, el precio fijo es de USD 70 por tonelada. Esta regulación de precios se aplica 
únicamente al carbón utilizado por la Compañía Estatal de Electricidad para generar electricidad. El 
objetivo de esta medida es cumplir la obligación de servicio público del Gobierno de suministrar 
electri cidad a todas las regiones de Indonesia, así como garantizar la seguridad energética y la igualdad 
de acceso a la electricidad, en particular para la población pobre ".  
 
Pregunta: En relación con lo indicado en el párrafo 3.166, y considerando que la gener ación de 
electricidad por medio de carbón es considerada una de las más perjudiciales para el medio ambiente, 
Chile agradecería si Indonesia pudiera compartir si ha considerado o tiene programas para promover el 
uso de fuentes de energía más amigables con el medio ambiente  
 
Answer:  
 
The national energy policy has targeted the use of renewable energy that will increase to 25% and coal 
energy decrease to 35% by 2025. Several programs that support this effort include the National 
Movement of One Million Solar Roofs, the use of environmentally friendly coal generation technology 
and others. Then, the draft presidential regulation related to New and Renewable Energy will also include 
a new energy scheme with the aim of attracting investors to use th e alternative energy.  
 
4 POLÍTICAS COMERCIALES, POR SECTORES  
4.4 Servicios  
4.1.4 Medidas de ayuda interna  
Concesiones de tierras  
Párrafo 4.30, página 177  
 
"En virtud de una Instrucción Presidencial, desde el 19 de septiembre de 2018 existe una moratoria de 
tres años sobre la concesión de nuevas licencias para plantaciones de palma aceitera. Se aplica 
explícitamente no solo a las nuevas solicitudes de licencias, sino también a los proyectos que ya han 
obtenido algunos de los permisos necesarios p ara empezar a funcionar, pero no todos. También se 
evalúan las plantaciones en funcionamiento que no cumplen algunas normas, como las zonas que 
pasaron de ser tierras forestales a dedicarse a otros usos y han de recuperar su condición de tierras 
forestales  o constituirse como bosques de gran valor ecológico (cuando el volumen maderero estimado 
es considerablemente elevado). Esta política supone no solo una suspensión de la concesión de nuevas 
licencias, sino también una orden a los ministerios competentes d el Gobierno central y a los gobiernos 
regionales de revisar los datos de las licencias relativas a la palma aceitera ".  
 
Pregunta: En el párrafo 4.30 se menciona una moratoria de tres años sobre la concesión de nuevas 
licencias para plantaciones de palma a ceitera, existente desde septiembre de 2018. Al respecto, Chile 
agradecería si Indonesia pudiera indicar si se extenderá o no la moratoria de tres años - y que 
entendemos cuya duración vencería el año 2021 - para la concesión de nuevas licencias para 
planta ciones de palma aceitera.  
 WT/TPR/M/401/Add.1  
 
- 51 - 
 
  Answer:  
 
There is no information/decision regarding the extension of the moratorium.  
 
4.1.6 Pesca  
Marco normativo e institucional  
Párrafo 4.60, páginas 184 -185 
 
"El MMAF sigue un enfoque ecosistémico de la ordenación pesquera (EAFM) para la sostenibilidad a largo 
plazo de la pesca y los servicios ecosistémicos prestados a la sociedad (seguridad alimentaria, medios 
de subsistencia, seguridad económica, protección costera, y salud y bienestar de las personas). Desde 
2010, la Dirección de Recursos Pesqueros del MMAF viene elaborando indicadores de resultados del 
EAFM para apoyar los reglamentos relacionados con el sector de la pesca. Las hojas de ruta para la 
aplicación del EAFM se elaboran para períodos quinquenales, por ejemplo 2010 -2014 y 2015 -2019. El 
EAFM de 2014 dio lugar a las Directrices Técnicas. En 2019, los resultados fueron los siguientes: 
certificación de la rastreabilidad de los productos pesqueros, y del etiquetado ecológico; ampliación de 
las zonas marinas p rotegidas; aplicación por el Organismo de Ordenación Pesquera del Plan de 
Ordenación Pesquera para 11 zonas de ordenación pesquera (Wilayah Pengelolaan Perikanan (WPP)); 
aplicación de la estrategia de captura de determinadas especies (atún, pargo y mero); rastreabilidad de 
los productos pesqueros relacionados con las actividades de pesca INDNR; y aplicación de tecnología 
digital para la presentación de documentación ".  
 
Pregunta: En relación a lo indicado en el párrafo 4.60, Chile agradecería si Indonesia pudiera compartir 
mayores detalles respecto a la certificación de la rastreabilidad de los productos pesqueros, y del 
etiquetado ecológico, rastreabilidad de los productos pesqueros relacionados con las actividades de 
pesca INDNR, y aplicación de  tecnología digital para la presentación de documentación.  
 
Answer:  
 
Indonesia have implemented traceability system through STELINA program and Catch Certification. 
STELINA (Sistem Telusur and Logistik Ikan Nasional/National Fish Traceability and Logistic  System) is a 
fish and fisheries product traceability information system which were built and developed to facilitate 
fisheries sector businesses in fulfilling international traceability policies and regulations. On IUU Fishing, 
Indonesia mandated Catch Ce rtification (Sertifikat Hasil Tangkapan Ikan/SHTI) as a required document 
for export. SHTI is a letter which state that the exported fisheries product is not from an IUU -F activity.  
 
4.4.3 Servicios financieros  
Párrafo 4.196, página 229  
 
"Además, en 2019 el Banco de Indonesia publicó la Visión del Sistema de Pagos de Indonesia para 2025, 
cuyos cinco objetivos son los siguientes: i) respaldar la integración de la economía y las finanzas digitales 
del país; ii) apoyar la digitalización del se ctor bancario; iii) asegurar la conexión entre la tecnología 
financiera y el sector bancario; iv) asegurar el equilibrio entre la innovación, la protección de los 
consumidores y una competencia empresarial sana; y v) salvaguardar los intereses nacionales e n la 
economía y las finanzas digitales transfronterizas. A ello siguió la publicación del Plan de Sistemas de 
Pago de Indonesia (IPSB), que prevé cinco iniciativas para hacer realidad la Visión: i) banca abierta; ii) 
sistemas de pago minoristas; iii) infra estructura del mercado financiero; iv) datos; y v) aspectos 
relacionados con la reglamentación, la concesión de licencias y la supervisión. Estas iniciativas las 
llevarán a cabo simultáneamente cinco grupos de trabajo constituidos en el Banco de Indonesia.  El IPSB 
2025 marcó el camino para el desarrollo de la economía y las finanzas digitales, tratando de garantizar 
la continuidad de las funciones desempeñadas por el Banco de Indonesia y del apoyo a la inclusión 
económica y financiera. Según las autoridades , una de las iniciativas ya iniciadas ha sido la aprobación, 
en agosto de 2019, de la norma sobre el código de respuesta rápida (norma indonesia sobre el código 
QR (QRIS)) para los pagos realizados por medio de aplicaciones de dinero electrónico en servido res, 
billeteras electrónicas y banca móvil; esta norma se aplica plenamente desde enero de 2020. El objetivo 
de la QRIS es mejorar la eficiencia de las transacciones, acelerar la inclusión financiera y promover las 
mipymes. La norma se diseñó sobre la base  de las normas internacionales de EMV Co. para reforzar la WT/TPR/M/401/Add.1  
 
- 52 - 
 
  interconexión de los instrumentos del sistema de pagos en general y responder a las necesidades 
específicas de Indonesia, facilitando la interoperabilidad entre proveedores, instrumentos y países. "  
 
Pregunta: El párrafo 4.196 establece que, en el marco del Plan de Sistemas de Pago de Indonesia (IPSB), 
se ha iniciado una iniciativa aprobada en agosto de 2019, de la norma sobre el código de respuesta 
rápida (norma indonesia sobre el código QR (QRIS) para los pagos realizados por medio de aplicaciones 
de dinero electrónico en servidores, billeteras electrónicas y banca móvil). Al respecto, Chile agradecería 
si Indonesia pudiese explicar con mayor detalle los objetivos de la QRIS y cómo ha sido la 
imple mentación de esta iniciativa en el marco del IPSB.  
 
Answer:  
 
QRIS (QR Code Indonesian Standard) developed to allow QR – code facilitated payments to be 
interconnected and interoperable through a single standardized code. QRIS is developed in collaboration  
between Bank Indonesia with Indonesia payment systems association and payment system industry 
and is based on EMV Co Standard.  
 
QRIS, which carries the spirit of UNGGUL (Universal, Simple, Profitable, Direct), aims to enhance 
transaction efficiency, accel erate financial inclusion and advance MSMEs, thus ultimately stimulating 
economic growth for the betterment of Indonesia. QRIS UNGGUL carries meaning, namely Universal, 
QRIS use is inclusive for all and can be used for domestic and international payment tr ansactions. 
Second, Simple, QRIS offers secure and convenient transactions through mobile phones. Third, 
Profitable, QRIS transactions are profitable for merchants and customers due to efficient payments 
through one QR code that can be used for all mobile phone payment applications. Fourth, Direct, QRIS 
transactions are processed in real time, thereby supporting the uninterrupted operation of the payment 
system. This program is one of the key deliverables of IPSB initiative 2 (strengthening the configuratio n 
of retail payment systems) which aims to provide easy, comfortable, mobile, and affordable payment 
services for everyone.  
 
QRIS implementation aims to encourage transaction efficiency, accelerate financial inclusion, and 
advance MSMEs. QRIS, which is als o implemented by Fintech, is expected to increase public financial 
inclusion because by using QRIS, people will have financial accounts that are not only used for payment 
transactions but also for other financial transactions such as transfers.  
 
QRIS will encourage the progress of the MSME sector to accelerate financial access for business actors, 
thus helping to increase economic activity where the business actor is located. In addition, transaction 
patterns and data that are recorded electronically will a ssist MSMEs in obtaining financing from financial 
institutions (banking and Fintech). Since it launched, the implementation of QRIS is increasing rapidly 
and now reach more than 4,6 million merchants are using QRIS.  
 
4.4.3.1 Servicios bancarios  
Párrafo 4.201, p. 231  
 
"Al igual que cuando se realizó el examen anterior, los bancos extranjeros que quieran establecerse en 
el país, incluso mediante la apertura de una sucursal, deben haber obtenido una calificación "A" de una 
de las principales entidad es internacionales de calificación; ser uno de los 200 bancos más grandes del 
mundo, por activos totales; contar con fondos operativos desembolsados no inferiores a IDR 3 billones; 
y tener permiso del regulador de su mercado nacional. Los bancos extranjero s pueden establecer 
sucursales y oficinas secundarias en las 12 ciudades más importantes de Indonesia. Sin embargo, de 
acuerdo con la política de consolidación bancaria, la OJK impuso una moratoria sobre la concesión de 
nuevas licencias bancarias (tanto pa ra los inversores nacionales como para los extranjeros), lo que 
obliga a los inversores a invertir en bancos ya existentes con arreglo a los reglamentos pertinentes. A 
fin de apoyar estas iniciativas, los bancos están exentos tanto de la Política de Presen cia Única como de 
las limitaciones a la participación en la propiedad de los bancos comerciales. "  
 
Pregunta: el párrafo 4.201 dispone que la OJK impuso una moratoria sobre la concesión de nuevas 
licencias bancarias (tanto para los inversores nacionales co mo para los extranjeros), lo que obliga a los 
inversores a invertir en bancos ya existentes con arreglo a los reglamentos pertinentes. Al respecto, WT/TPR/M/401/Add.1  
 
- 53 - 
 
  Chile agradecería a Indonesia compartir información acerca de los plazos para futuras revisiones de esta 
moratoria.  
 
Answer:  
 
OJK does not have a plan on lifting the new license moratorium as we aim to strengthen our banking 
sector through our consolidation policy as stipulated in OJK Regulation No. 12/POJK.03/2020 regarding 
Consolidation of Commercial Banks.  
 
4.4.3.2 Tecnología financiera  
Cuadro 4.9 - "Reglamentos relativos a la tecnología financiera, mayo de 2020 ", p.236  
 
 
 
Pregunta: el párrafo 4.4.3.2 señala en su cuadro 4.9 "Reglamentos relativos a la tecnología financiera, 
mayo de 2020" que el Reglamento de la OJK N° 77/POJK.01/2016 sobre la concesión de préstamos 
basada en la Tecnología de la Información, tiene por objetivo apoyar el crecimiento de las plataformas 
de tecnología financiera que ofrezcan préstamos entre pares o P2P, y  que las plataformas P2P se 
consideran una institución de servicios financieros más. Al respecto, Chile agradecería si Indonesia 
pudiese brindar mayores detalles sobre la regulación a las plataformas P2P y cómo se está protegiendo 
a los clientes de estos s ervicios.  
 
Answer:  
 
In its implementation, OJK Regulation No. 77/POJK.01/2016 imposes provisions on registration and 
licensing. It requires fintech providers to register themselves prior to submitting any applications. During 
registration period, provide rs are allowed to operate in full scale —with counselling from the OJK. Further, 
providers are also required to apply for their licenses from the OJK no later than one year after they are 
registered at the Authority.  
 
WT/TPR/M/401/Add.1  
 
- 54 - 
 
  On the other hand, to protect consumers ' interests, providers are required to use escrow and virtual 
accounts in banks and set up data centers within the country. Further, the maximum amount of money 
that a provider can lend to a customer is limited to IDR 2 billion, in order to protect nationa l financial 
system's stability.  
 
4.4.3.4 Valores  
Párrafo 4.128, p. 239  
 
"Entre las principales novedades registradas desde 2013 cabe mencionar la introducción de diversas 
mejoras/ajustes técnicos (como un sistema de negociación mejorado y un nuevo centro de datos; 
ajustes en el tamaño de los lotes y las variaciones mínimas de precio (tick); y acortamiento del ciclo de 
liquidación de las transacciones, de tres días a dos); la puesta en marcha del Canal IDX (el canal de 
televisión oficial de la Bolsa de Indonesia); la flexibilización de la reglamentación relativa a las 
operaciones de compra y venta al descubierto; la asistencia a las empresas que realizan ofertas públicas 
iniciales (OPI) (por ejemplo, mediante el "centro de promoción de ofertas pública s" y la Incubadora IDX, 
que ayuda a las nuevas empresas digitales que desean hacer una OPI); y la puesta en marcha de nuevos 
instrumentos (como los futuros sobre el índice LQ45, los futuros sobre obligaciones emitidas por el 
Gobierno de Indonesia y el Fond o de Inversión en Bienes Raíces). En respuesta a la pandemia de COVID -
19, la IDX adoptó diversas medidas para limitar sus efectos en el mercado de capitales y mantener la 
estabilidad de este " 
 
Pregunta: El párrafo 4.218 establece que la IDX habría adoptado  diversas medidas para limitar sus 
efectos en el mercado de capitales y mantener la estabilidad de este. Al respecto, Chile agradecería si 
Indonesia pudiese compartir mayores detalles sobre el tipo de medidas adoptadas, junto con enumerar 
alguna de ellas.  
 
Answer:  
 
There are several measures that have been taken by IDX in order to limit its effect on the capital market 
and maintain its stability. Some of those measures are as follows:  
1. Extension of the deadline for the submission of Annual Financial Statem ents, Interim Financial 
Statements Q1 2020 and Annual Reports for Listed Companies through SPE -IDXnet, which is for 
2 (two) months from the deadline for reporting as referred to in the IDX Regulations.  
2. The Indonesian Stock Exchange shortens trading hours o n the Stock Exchange and in the Alternative 
Market Operator System, and shortens the reporting time in the Receiver of Securities Transaction 
Reports, as follows:  
a. Trading time on the Stock Exchange from Monday to Friday becomes session I: 09.00 - 11.30, 
and session II: 13.30 - 15.00.  
b. The Alternative Market Operator System trading time is 09.00 to 15.00.  
c. The Securities Transaction Reports operating time is 09:30 to 15:30.  Indonesian Clearing and 
Guarantee Corporation (PT KPEI) and PT Indonesian Cent ral Securities Depository (PT KSEI) 
provide adjustments to the time of the settlement process and other operational activities if 
needed. These provisions are effective from March 30th, 2020 or from the schedule adjustments 
of operational activities and Ba nk Indonesia public services until the end of the deadline set later 
by the Financial Services Authority.  
3. In regards to extend the information transmission to the public by company so that could provide 
benefit to company as well as public, IDX provide sup port through:  
a. To disseminate Company 's Press Release through IDX Media Relation;  
b. In terms of company 's video recording exposure, IDX will spread the recording information 
through Official Social Media owned by IDX (YouTube/Instagram Story/Facebook/Twitter) . For 
further information, the Company may contact their PIC at IDX Listing Division or email to 
listing@idx.co.id  
 
4.4.5 Transporte  
Párrafo 230, p. 244  
 
"El Ministerio de Transporte tiene la responsabilidad general del sector del transporte en Indonesia. Al 
igual que cuando se realizó el examen anterior, la principal estrategia que está aplicando el Ministerio WT/TPR/M/401/Add.1  
 
- 55 - 
 
  de Transporte es el Plan Sistranas (establecido  en el Reglamento Nº KM49/2005 del Ministerio de 
Transporte sobre el Sistema Nacional de Transporte). El Ministerio de Transporte también está aplicando 
su plan estratégico quinquenal para el período 2015 -2019, que abarca el transporte aéreo, marítimo, 
terrestre y ferroviario y que se está actualizando. La mejora de la gestión marítima y del medio marino 
constituye uno de los siete programas de desarrollo que figuran en el Plan Nacional de Desarrollo a 
Medio Plazo 2020 -2024, y se establece como proyecto pri oritario nacional la mejora de la infraestructura 
de transporte (sección 2.2.2) ".  
 
Pregunta: El párrafo 4.230 dispone que el Ministerio de Transporte, como entidad responsable del 
transporte en Indonesia, se encontraría ejecutando el Plan Sistranas. Al re specto,  Chile agradecería si 
Indonesia pudiese explicar en qué consiste esta estrategia, cuáles sería sus principales ejes de acción y 
qué resultados pretende obtener.  
 
Answer:  
 
Sistranas is organized transportation system to ensure effectivity and efficiency transportation to drive 
development; improve people mobility, goods, and services; ensure the smooth of national distribution. 
Sistranas has function for transportation guideline in the aspect of rule, development, and operation. 
The strategy of  Sistranas is developing equal services and infrastructure, safety and security equipment, 
transportation service provider, high quality human resources related to transportation, safe energy and 
environmentally friendly infrastructure. There are six devel opment transportation networks consist of 
Sumatera, Java and Bali, Kalimantan, Sulawesi, Nusa Tenggara, Maluku, Papua.  
 
4.4.5.1 Transporte marítimo  
Párrafo 4.239, p. 247  
 
"Desde el punto de vista geográfico, Indonesia está situada en una de las rutas marít imas más activas 
(Estrecho de Malaca), que conecta el tráfico marítimo mundial con cuatro líneas marítimas de 
comunicación. Aspira a ser un "nodo marítimo mundial" y sigue teniendo como prioridad a largo plazo 
el desarrollo de la conectividad marítima. Act ualmente, la mayor parte de la carga de contenedores y la 
carga a granel se transborda en Singapur a buques destinados a Indonesia. Como han indicado las 
autoridades, un objetivo fundamental es realizar envíos directos a Indonesia, a fin de ahorrar costos al 
eliminar la doble manipulación. Se han establecido conexiones directas entre el puerto de Tanjung Priok, 
en Yakarta, y los Estados Unidos (de 2017 a abril de 2020); y con puertos de la República de Corea 
(desde 2018) y China (desde 2019) ".  
 
Pregunta: el  párrafo 4.239 señala que en lo relativo a los servicios de transporte marítimo, uno de los 
objetivos fundamentales es la realización de envíos directos a Indonesia, a fin de ahorrar costos al 
eliminar la doble manipulación. Al respecto , Chile agradecería si Indonesia pudiese indicar si, en el corto 
plazo, tendrían previsto establecer otras conexiones directas distintas a aquellas ya existentes en los 
puertos de Yakarta, EE.UU., Corea y China.  
 
Answer:  
 
Indonesia is planning to enhance direct s hipments to and from Indonesia, nevertheless we still need to 
create better infrastructure and cooperation with our trading partner.  
 
4.4.5.2 Transporte aéreo  
Párrafo 4.248, p. 249  
 
"Corresponde a la Dirección General de Aviación Civil (DGCA), dependiente del Ministerio de Transporte, 
fijar las políticas de aviación y administrar este sector. En 2020, en respuesta a la pandemia de 
COVID -19, se adoptaron reglamentos para limitar el número de pasajeros y de asientos, aplicando 
medidas de distancia miento físico y ajustando las franjas horarias de los aeropuertos. El número de 
salidas y llegadas diarias en el aeropuerto de Yakarta durante el período comprendido entre el 15 de 
marzo y el 30 de abril disminuyó un 69% y un 67,3%, respectivamente ".  
 WT/TPR/M/401/Add.1  
 
- 56 - 
 
  Pregunta: El párrafo 4.248 indica que, en el año 2020, en respuesta a la pandemia de COVID -19, se 
adoptaron reglamentos para limitar el número de pasajeros y de asientos, aplicando medidas de 
distanciamiento físico y ajustando las franjas horarias de los aero puertos. Al respecto, Chile agradecería 
si Indonesia pudiese compartir mayores detalles sobre como esta política es compatible con sus 
acuerdos de servicios aéreos.  
 
Answer:  
 
Based on Directorate General of Air Transport Circular Letter No.13 of 2020 regarding Air Transportation 
Policy in a Productive and Safe Community Activity Period from Covid -19. Airline operators are required 
to implement health protocols, limit the number of passengers from the number of seats and apply 
physical distancing from t he time of travel preparation, during the trip, and the time of arrival. The 
maximum capacity allowed for wide body aircraft is 70 percent of the maximum capacity. Meanwhile, 
for smaller aircraft, such as ATR. there are no restrictions on maximum passenger s. Those requirements 
refer to the provisions stipulated by the international aviation organizations ICAO, EASA, CASA, CAA 
and other international aviation authorities.  The total number of aircraft passengers will be gradually 
improved by setting more str ict health protocols, both at the airport and aircraft cabin. Regarding the 
air service agreement with Chile, all of these policies are still being examined as Indonesia currently has 
not reopened their international flights  
 
Párrafo 4.252, p. 250  
 
"Desde 2013, Indonesia también ha ratificado varios instrumentos de transporte aéreo de la ASEAN: el 
Acuerdo Multilateral de la ASEAN sobre la Plena Liberalización del Transporte Aéreo de Carga y sus 
protocolos anexos (en 2015); los protocolos 5 y 6 del Acuerdo M ultilateral de la ASEAN sobre Servicios 
Aéreos (en 2014); el Acuerdo Multilateral de la ASEAN sobre la Plena Liberalización de los Servicios de 
Transporte Aéreo de Pasajeros y sus protocolos 1 y 2 (en 2016); los protocolos de aplicación del séptimo 
(en 201 4), el octavo y el undécimo (en 2019) paquetes de compromisos relativos a los servicios de 
transporte aéreo establecidos en el marco del Acuerdo Marco sobre Servicios de la ASEAN (AFAS); y el 
Acuerdo sobre Transporte Aéreo entre los Gobiernos de los Estado s miembros de la ASEAN y la República 
Popular China y sus protocolos 1 y 2 (en 2016) y 3 (en 2019). La ASEAN está negociando acuerdos 
sobre servicios aéreos con la Unión Europea, la República de Corea, Nueva Zelandia y el Japón ".  
 
Pregunta: En el párrafo 4.252 se indican varios acuerdos de servicios aéreos firmados por Indonesia en 
el último tiempo. Al respecto, Chile agradecería si Indonesia podría indicar cómo estos acuerdos se 
implementan en el contexto de las medidas adoptadas en la conti ngencia del COVID -19, como por 
ejemplo establecer precios (párrafo 4.249) o número de vuelos (párrafo 4.248).  
 
Answer:  
 
These agreements are still in place with some measures in regards to COVID -19 situation. While, the 
Indonesian Ministry of Transportatio n has issued circulate letter No. 13 of 2020 which regulates the 
operation procedure for air transportation in the midst of COVID -19.  Regarding tariff during COVID -19, 
Minister of Transportation regulated the Ministerial Decree No. 88/2020.  
 
4.4.7 Servici os de distribución centrados específicamente en el comercio electrónico  
Párrafo 4.265, p. 253  
 
"El Ministerio de Comercio tiene la responsabilidad general sobre el sector de la distribución, y 
determinados aspectos habilitadores del comercio electrónico son competencia de varios ministerios: el 
Ministerio de Comercio es competente en materia de ética empresarial en el comercio electrónico; el 
Ministerio de Hacienda, en materia de cuestiones fiscales y aduaneras; el Ministerio de Comunicaciones  
y Tecnología de la Información, en materia de aspectos del comercio electrónico relacionados con las 
TIC y las transacciones de datos; y el BI y la Autoridad de Servicios Financieros, en materia de sistemas 
de pagos. Indonesia participa en la iniciativa r elativa a la Declaración Conjunta sobre el Comercio 
Electrónico de la OMC ".  
 WT/TPR/M/401/Add.1  
 
- 57 - 
 
  Pregunta: En el párrafo 4.265 se indica que el Ministerio de Comercio de Indonesia es el competente en 
materias de ética empresarial en el comercio electrónico. Al respecto, Chil e agradecería si Indonesia 
pudiera compartir mayores detalles sobre a qué se refiere con "materia de ética empresarial ". ¿Se 
refiere, por ejemplo, a manuales de buenas prácticas o leyes de protección al consumidor?  
 
Answer:  
 
The Government has issued regulations that encourage the creation of a healthy business climate in the 
field of commerce through electronic systems, for example, protection of privacy, personal data, and 
consumer rights, which is realized through rules on electronic contract s, electronic advertising, obliging 
business actors to protect consumer personal data, dispute resolution, etc.  
 
Párrafo 4.267, p. 253 -254 
 
"En 2019, el Gobierno dictó el GR Nº 80/2019 sobre el Comercio por medio de Sistemas Electrónicos, 
que regula el comercio electrónico, incluidos los mercados y las prácticas de comercio electrónico al por 
menor. Como ha indicado una fuente externa, el Reglamento contiene varias disposiciones específicas 
para la práctica del comercio electrónico, a saber: descripción detallada de los agentes empresariales 
que participan en actividades de comercio electrónico; lista de verificación del cumplimiento para los 
operadores de comercio electrónico; pruebas y contratos electrónicos; protección de datos personales; 
y prácticas comerciales (por ejemplo, en materia de fiscalidad, pagos, contratos comerciales, protección 
de los consumidores, y transporte marítimo y logística). El Reglamento se aplica tanto a las empresas 
nacionales como a las extranjeras, incluidas las personas fís icas o jurídicas extranjeras constituidas en 
sociedades anónimas y ubicadas fuera de Indonesia que realizan actividades de comercio electrónico en 
Indonesia. Todas las empresas (nacionales y extranjeras) deben obtener una licencia comercial para 
llevar a c abo actividades de comercio electrónico en Indonesia ". 
 
Pregunta: El párrafo 4.267 indica que en Indonesia todas las empresas (nacionales y extranjeras) deben 
obtener una licencia comercial para llevar a cabo actividades de comercio electrónico en el país.  Al 
respecto, Chile agradecería si Indonesia pudiera compartir mayores detalles sobre cuáles son los 
requisitos para dicha licencia, junto con indicar si son diferentes cuando se trata de empresas nacionales, 
al compararlos con los requisitos para las empr esas extranjeras.  
 
Answer:  
 
Business licenses for e -commerce is stipulated under MoT Regulation No. 50 of 2020 concerning 
Provisions for Business Licensing, Advertising, Guidance and Supervision of Business Actors in Trade 
Through Electronic Systems both foreign and local electronic businesses that conducting e -commerce 
business activities in Indonesia are required to obtain E -Commerce Trade Business License (Surat Izin 
Usaha Perdagangan melalui Sistem Elektronik or "SIUPMSE "). 
 
Párrafo 4.272, p. 255  
 
"Desde 2018, Indonesia ha reducido drásticamente el valor de minimis de las exenciones de derechos 
de importación para los envíos y las mercancías objeto de comercio electrónico de empresa a cliente 
(sección 3.1.3.6). Como han indicado las autoridades, la m ayoría de las mercancías adquiridas a través 
de plataformas de comercio electrónico se envía a Indonesia utilizando servicios postales. Estos servicios 
de envío postal se tramitan a través del "tipo de despacho de aviso de envío", que se rige por el 
Reglam ento Nº 199/PMK.010/2019 del MoF sobre las disposiciones relativas al trato aduanero, los 
impuestos especiales y demás impuestos aplicables al envío de mercancías. En virtud de este 
Reglamento, los envíos de importación cuyo valor f.o.b. es inferior a USD 3 de minimis están exentos 
de los derechos de importación. Los envíos cuyo valor f.o.b. oscila entre USD 3 y USD 1.500 están 
sujetos a un tipo arancelario de importación uniforme del 7,5% del valor f.o.b. del envío (se aplican 
excepciones a los bolsos, el calzado y los textiles y productos textiles, a los que se aplican tipos NMF). 
Los envíos cuyo valor f.o.b. es superior a USD 1.500 están sujetos al tipo arancelario NMF ".  
 
Pregunta: El párrafo 4.272 indica que desde 2018, Indonesia ha reducido drásticamente el valor de 
minimis de las exenciones de derechos de importación para los envíos y las mercancías objeto de WT/TPR/M/401/Add.1  
 
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  comercio electrónico de empresa a cliente. En virtud de lo ant erior, los envíos de importación cuyo valor 
f.o.b. es inferior a USD 3 de minimis están exentos de los derechos de importación. Al respecto, Chile 
agradecería si Indonesia pudiera indicar si se han presentado cambios en la recaudación tributaria desde 
que se inició la reducción del de minimis.  
 
Answer:  
 
Since the end of January 2020, Indonesia has levied a flat 7.5% charge customs duty; VAT (10%); or 
VAT and luxury tax on "consignment goods" which customs value is more than the de minimis fob 
USD 3 up to USD 1,500 that are sent by business entities/Individuals abroad and imported through a 
postal/courier service in accordance with the postal laws and regulations, regardless of the relevant 
customs tariff rate.  
 
Consignment goods under fob USD 3 are exempte d from customs duty and income tax is not applicable 
but are imposed on VAT; or VAT and Luxury. Since the end of January 2020, the general taxation level 
for these goods has been reduced from a range of 27.5% to 37.5% to a rate of 17.5%, consisting of 
the 7.5% customs duty -equivalent charge, 10% VAT, and zero corporate income tax (for consignment 
goods with f.o.b USD 3 - USD 1.500).  
 
Since the same date, certain commodities in high demand have been subjected to the normal applied 
MFN tariff rates (i.e., bag s 15% -20%, shoes 25% -30%, and textile products 15% -25%), VAT of 10%, 
and the withholding corporate income tax of 7.5% -10%.  
 
WT/TPR/G/401 – Informe del Gobierno de Indonesia  
5 CAMINO A SEGUIR  
Párrafo 5.5., página 25  
 
"En el Plan Nacional de Desarrollo a Medio Plazo de Indonesia, uno de los objetivos para alcanzar la 
expansión económica en 2020 -2024 es aumentar la inversión (formación bruta de capital fijo). Para 
alcanzar este objetivo, se fomentará la inversión privada (extranjera y nacional)  mediante la 
desregulación de los procedimientos de inversión y la sincronización y armonización de los reglamentos 
en materia de licencias, así como el ascenso de Indonesia del puesto 73º en 2018 al puesto 40º en 2024 
en el índice de facilidad para hacer negocios. Además, el Gobierno contribuirá también al aumento de 
las inversiones, en particular a través de las empresas de propiedad estatal, especialmente en el 
desarrollo de infraestructura. De ese modo, el coeficiente infraestructura/PIB aumentará. El i ncremento 
de las inversiones y de su rendimiento servirán para aumentar la productividad, generar empleo y 
mejorar el bienestar de todos los indonesios ".  
 
Pregunta: El párrafo 5.5 del informe de Gobierno indica que uno de los objetivos del Plan Nacional d e 
Desarrollo a Medio Plazo de Indonesia para alcanzar la expansión económica en 2020 -2024 es aumentar 
la inversión (formación bruta de capital fijo). Para alcanzar este objetivo, se fomentará la inversión 
privada (extranjera y nacional) mediante la desregu lación de los procedimientos de inversión y la 
sincronización y armonización de los reglamentos en materia de licencias. Al respecto, Chile agradecería 
a Indonesia compartir antecedentes sobre cómo la nueva legislación de reforma económica - denominada 
"Omnibus Bill "- se enmarca con el objetivo mencionado de aumentar la inversión privada (extranjera y 
nacional). Adicionalmente, Chile agradecería a Indonesia compartir información sobre cuales serían los 
próximos pasos que el Gobierno adoptaría para la impl ementación de la "Omnibus Bill ". 
 
Answer:  
 
Job Creation law (known as Omnibus Bill) has become one big achievement for Indonesia government 
to deregulate the investment procedures and harmonize the licensing regulation. It has 11 clusters of 
regulations i ncluding improving investment and business environment, labour, empowering small 
medium enterprise, ease of doing business, research and innovation support, land acquisition, economic 
zone, accelerating strategic investment, government administration. The government is improving the 
transparency and public communication of the development of the implementing regulations.  
 WT/TPR/M/401/Add.1  
 
- 59 - 
 
  AUSTRALIA  
WTO Secretariat Report (WT/TPR/S/401)  
  
1 ECONOMIC ENVIRONMENT  
1.2 Recent Economic Developments  
1.2.4 Structural policies  
1.2.4.4 Labour market policies  
Page 29, Paragraph 1.17  
 
The report recognises women 's economic empowerment as a Ministerial priority. Specifically, it states 
that the Indonesian Government is integrating gender perspectives into economic policy through the 
Ministerial Strategic Plan 2015 -19 on gender equality and women empowerment.  
 
Question 1  
 
How does the Indonesian government integrate gender perspectives into its economic policy in 
accordance with its Ministe rial Strategic Plan 2015 -19 [on gender equality and women 's economic 
empowerment]? In particular, does the Indonesian government have fiscal policies or programs in place 
aiming to ensure that women, including women led businesses and women entrepreneurs, have 
equitable access to finance so they may participate fully in the economy and potentially gain access to 
international trading opportunities?  
 
Answer:  
 
The Development of home -based industry is stipulated under Minister of Women Empowerment and 
Child P rotection Regulation No. 2/2016 regarding Guideline Development of Home -based Industry to 
Improving Family Welfare through Empowering Women. This programme is more focused on capacity 
building and technical assistance for women empowerment.  
 
1.2 Recent Eco nomic Developments  
1.2.5 Balance of payments  
Pages 29, Paragraph 1.20 and Page 30, Paragraph 1.22  
 
The report states that Indonesia is exposed to balance of payments risk, due to its reliance on commodity 
production. Notwithstanding this, the report also recognises that Indonesia 's foreign exchange reserves 
are well above the international adequacy standard.  
 
Question 2  
 
Given Indonesia 's official reserves have consistently remained above international adequacy standards, 
reflected in the end -Septembe r 2020 position equivalent to 9.1 months of imports and servicing external 
debt, how acute is the risk posed by reliance on commodity production?    
 
Answer:  
 
External resilience is maintained with controlled stability risks underpinned by the positive per formance 
of the Indonesian Balance of Payments (BOP) and high foreign exchange reserves. One of the factors 
supporting the positive performance of the balance of payments is the low current account deficit, even 
recorded a surplus in the third quarter of 2 020 in line with the improvement in exports and import 
adjustments due to weak domestic demand. The improvement in exports of various non -oil and gas 
export commodities indicated controlled risks related to the export structure dominated by primary 
commodi ties and natural resource -based products. The improvement of non -oil and gas exports in the 
third quarter of 2020 was mainly driven by the improvement in manufacturing exports ' performance. 
This has almost occurred in almost all of its components, such as automotive, clothing and footwear, 
machinery and transportation, iron and steel, and pulp & waste paper. The maintained export 
performance is inseparable from the efforts of Bank Indonesia to coordinate with the Government in 
accelerating structural reform s to strengthen the structure of the economy, including the structure of WT/TPR/M/401/Add.1  
 
- 60 - 
 
  the goods and services balance. In this regard, to boost export prospects, the strengthening of the 
manufacturing industry will be continued, particularly in priority industries that are highly competitive 
and support increased added value.  
 
1.3 Developments in trade and investment  
1.3.1 Trends and patterns in merchandise and services trade  
Page 31, Paragraph 1.23  
 
The report states the ratio of Indonesia 's trade in goods and services to GDP has experienced a 
significant decrease since 2013, reflecting its weak integration into global value chains.  
 
Question 3  
 
With disruptions to international supply chains and depressed consumer confidence due to COVID -19, 
what sectors could we expect to drive Indonesia 's trade and investment going forward?  
 
Answer:  
 
Covid -19 has massively impacted the global economy from demand and supply side. As the global 
economy has been predicted to be recovered in 2021, we expected that the increased i n global demand, 
including Indonesia 's main trade partner countries, will drive the increased in Indonesia 's trade and 
investment. Some sectors that have become the comparative advantages of Indonesia, such as textile 
and garments, footwear, electronics, a utomotive, iron and steel, food and beverages, fisheries and 
agricultural products, are expected to grow. Based on WTO report until Q3 2020, these sectors have 
been also experienced quite positive growth. Other sectors that are expected to grow are pharmac eutical 
and medical appliances as the global demand of these sectors have increased significantly.  
 
1.3 Developments in Trade and Investment  
1.3.1 Trends and patterns in merchandise and services trades  
Page 33, Para 1.26  
 
The report states that Indonesia has seen improved competitiveness in iron and steel, automotive, pulp 
and wastepaper, gold and textile exports in 2019.  
 
Question 4  
 
What are the key sectors we could expect Indonesia to gain a genuine comparative advantage in the 
global economy?  
 
Answer:  
 
One of measures to calculate international trade specialization is Revealed Comparative Advantage 
(RCA) Index. The formula of RCA is as shown as the below formula, which the numerator represents 
the percentage share of a given sector in nationa l export (Xij are exports of sector or products i from 
country j) and the denominator represents the percentage share of a given sector or products i in the 
world exports.  
 
Based on the above formula, RCA index provides a comparison of the national export  structure (the 
numerator) with the world export structure (the denominator). If the RCA of a given sector in a given 
country equals 1, the percentage share of that sector is the same as the world average. If the RCA 
Index is above 1 the country is said to  be specialized in that sector and if the RCA is below 1 it is said 
not to be specialized (or 'under -specialized '). However, since the RCA results in an output cannot be 
compared on both sides of 1 (its neutral value), then it would be easier to see the in dex in a symmetric 
way with formula as (RCA - 1)/(RCA + 1); then this measure ranges from -1 to +1.  
WT/TPR/M/401/Add.1  
 
- 61 - 
 
  This formula is well known as Revealed Symmetric Comparative Advantage (RCA) Index. Therefore, if 
the RSCA Index is positive, then the country is said to be  specialized in that sector and if the RSCA is 
negative it is said not to be specialized (or 'under -specialized '). 
 
Using the formulas, there are several Indonesia 's export products or sectors which gain comparative 
advantage or specialization in the world: HS Chapter 80; 15; 14; 92; 55; 47;67; 46; 09; 40; 75; 64; 
44; 03; 24; 48; 16; 18; 72; 13; 38; 62; 27; 21; 54; 61; 34; 52; 19; 26; 74; 23; 31; 71.  
 
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy formulation and objectives  
2.2.3  Trade laws and regulations  
Page 43, Paragraph 2.18   
 
Question 5  
 
Can Indonesia provide an update on the impact of the Omnibus Law on Job Creation on import and 
export licensing.  
 
Answer:  
 
The Omnibus Law on Job Creations focuses on nine broad areas, such as simplification of business 
permits and ease of doing business. Job Creation Law is improving business import licencing regime, 
currently, Indonesia is still under process of discussing the implementation of the regulation.  
 
2.4 Investment Re gime  
2.4.1 Restricted activities  
Page 54, Paragraph 2.48  
 
The report by the secretariat notes that there are a number of business lines closed for investment or 
have a minimum project value requirement that is intended to provide protection for SMEs.  
 
Question 6  
 
Can Indonesia provide information on whether this has reduced the ability of SMEs to attract capital, 
particularly, for example those who wish to scale up their investments over time, or are not engaged in 
capital intensive manufacturing.  
 
Answer : 
 
Some programs GOI have established in regard to SMEs 's access to finance for escalating their business:  
1. Start-up Capital from Ministry of Cooperatives and SMEs  
2. KUR, managed by national banks.  
3. Capital loan from Permodalan Nasional Madani/PNM (Mekaar, ULAMM).  
4. Ultra Mikro Credit managed by Indonesia Investment Agency and disbursed by non -bank financial 
institutions.  
5. Revolving Fund from LPDB -KUMKM for SMEs as Cooperative members.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly A ffecting Imports  
3.1.1 Customs procedures, valuation and requirements  
3.1.1.2 Customs valuation  
Page 72, Paragraph 3.31  
 
Indonesia has indicated it uses the transaction value as the basis for customs valuation. Indonesia has 
also indicated that authorities maintain a database of reference prices for the purpose of customs 
valuations.  
 
Question 7  WT/TPR/M/401/Add.1  
 
- 62 - 
 
  We would greatly appreciate information on the percentage of valuation cases considered by Indonesian 
Customs that use the transaction value method, i.e. , what percentage of the total number of valuation 
cases considered by Indonesian Customs, per year, use the transaction value method?  
 
Answer:  
 
In example, on 2018 there were 398.014 Import Declarations of goods imported from ASEAN countries 
and 7.822 of them (or 1,96%) were given Decision Letter on Tariff Classification and Customs Valuations 
Assessment. It means, Indonesian customs determined customs value using the transaction value 
method by 98,04% of customs declaration.  
 
Question 8  
 
Could Indonesia o utline the sources used to compile this database? Under what kind of circumstances 
does Indonesia use the database?  
 
Answer:  
 
The data source for the Customs Value Database II is import declaration with the customs value 
determined based on transaction value imported to Indonesia with the date of Bill of Lading (B/L) or Air 
Way Bill (AWB) at the latest 60 (sixty) days before stipulating of Customs Value Database II.  
 
Indonesia uses the database to examine the risk of undervaluation and/or abn ormality of the declared 
value during customs clearance stage only.  
 
Question 9  
 
Can Indonesia clarify the process for raising concerns about customs valuations?  
 
Answer:  
 
DGCE always urge the importers to declare the transaction value in their customs imp ort documents 
and also conduct the socialize the information throughout Indonesian customs offices. In addition, DGCE 
also provide assistance and consultation for the importers who request information regarding the 
customs valuation provided by information  service unit in each customs office.  
 
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.1 Import prohibitions and quantitative restrictions  
Page 84, Paragraph 3.57  
 
Australia is seeking further information on the explicit or implicit measures as identified in the Secretariat 
report used by Indonesia to restrict imports for a range of products, including products that Australia 
has a long -term history in supplying to Indonesia. The Secretariat 's report also notes that import 
volumes are determined annually at ministerial level coordination meetings and take into account 
domestic production and consumption forecasts.  
 
Question 10  
 
Can Indonesia provide advice on the legal basis of its quantitative restrictions as identified in the 
Secretariat Report, including for carcass meat, horticulture products, alcoholic beverages, milk, sugar 
and salt? Can Indonesia confirm whether it has notified these quantitative restrictions? If not, when 
does Indonesia i ntend to do so?  
 WT/TPR/M/401/Add.1  
 
- 63 - 
 
  Answer:  
 
Indonesia would like to reaffirm that Indonesia does not issue a regulation on restriction quotas for 
imports. Indonesia only regulates the procedures/requirements for imported products for the carcass, 
meat, animal products, rice , and horticulture.  
 
Question 11  
 
Can Indonesia provide advice on the policy intent behind the use of quantitative restrictions as identified 
in the Secretariat Report, including for carcass meat, horticulture products, alcoholic beverages, milk, 
sugar and salt?  
 
Answer:  
 
Indonesia would like to reaffirm that Indonesia does not issue a regulation on restriction quotas for 
imports. Indonesia only regulates the procedures/requirements for imported products for the carcass, 
meat, animal products, rice , and horticulture.  
 
Question 12  
 
Can Indonesia provide further information about how it determines the volume of imports and where it 
publishes this information?  
 
Answer:  
 
There is no regulation to set up the quota for imports. Import data can be accessed  on the Trademap 
platform.  
 
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions and licensing  
3.1.5.2 Import licensing  
Page 85, Paragraph 3.60.  
 
The Secretariat Report states that, according to the authorities, the product categories subject to import 
licensing increased from 30 to 40 over the review period, with new requirements being introduced on 
dairy; fisheries and forestry products; feed corn ; saccharin; cement (and clinker cement); textile and 
batik textile products and batik motifs; iron, steel or alloy, and derivative products; hand tools; 
refrigeration and cooling system -based goods; and tyres.  
 
Question 13  
 
Can Indonesia provide advice o n the policy basis for this significant increase? Are these new 
arrangements consistent with Indonesia 's policy objective under Law No. 7/2014 to structure licensing 
procedures for the smooth flow of goods?  
 
Answer:  
 
The policy basis with regard to import licensing in Indonesia are to provide business certainty, accelerate 
administrative process, and to support smoother importation process. The increase in product categories 
subject to import licensing is aimed to further smooth the flow of imported products.  
 
Page 85, Paragraph 3.62  
 
The Secretariat 's report notes that the import licensing process is done through the INSW.  
 
Question 14  
 
Can Indonesia clarify whether businesses can also apply for an import licenses through OSS?  WT/TPR/M/401/Add.1  
 
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  Answer:  
 
Some of the import licenses are available in OSS.  
 
Page 85, Paragraph 3.63  
 
WTO Members continue to raise concerns about the complexity, lack of transparency, and trade 
impairing effects of Indonesia 's import licensing requirements.  
 
Question 15  
 
Has Indonesia made a  study of the impacts of the licensing system on inflation, particularly food 
inflation, and the competitiveness of its exports?  
 
Answer:  
 
To maintain CPI inflation within the target range, one of the strategic measures was the maintaining of 
volatile food inflation at certain level. This policy was pursued through the four main strategies, namely 
Price Affordability, Supply Availability, smooth Distribution and Effective Communication. If there is a 
projection of a poor harvests, natural distu rbances, or factors affecting the development of domestic 
food commodity prices and the development of international food commodity prices, Indonesia can 
implement the policy to optimize the allocation of imports.  
 
3.1 Measures Directly Affecting Imports  
3.1.6 Anti -Dumping, countervailing, and safeguard measures  
3.1.6.1 Anti -dumping and countervailing  
Page 86, Paragraph 3.67  
 
The last sentence of this paragraph states that "Eighteen measures were reviewed and, in most cases, 
extended at least once for periods of up to six years " 
 
Question 16  
 
Could Indonesia please outline the process by which measures are extended, particularly, how the length 
of the extension is determined?  
 
Answer:  
 
The process to determine the extension of measures is conducted thro ugh the sunset review 
investigation. The application for sunset review should be submitted to KADI at the latest 15 (fifteen) 
months before the elapse of any anti -dumping duty. The length for the sunset review investigation 
should be no more than 12 (twelv e) months after the initiation of the sunset review; and to ensure 
trade fairness, additional 3 (three) months is given for the national interest consideration. The length of 
the extension is determined under Article 11.3 of the anti -dumping agreement (ADA ). 
 
3.2 Measures Directly Affecting Exports  
3.2.3 Export prohibitions, restrictions, and licensing  
3.2.3.1 Export prohibitions  
Page 92, Paragraph 3.80  
 
The Secretariat 's report states that the scope of export prohibitions increased slightly and that the ba n 
on exports of nickel ore remains.  
 
Question 17  
 
Can Indonesia state whether it proposes to increase the number of products subject to export bans?  
 
Answer:  WT/TPR/M/401/Add.1  
 
- 65 - 
 
  The dynamic of export policy in accordance with health, safety, security and environment considerations 
as well as international provisions which Indonesia participates in it. There is still no discussion about 
increasing the number of products that subject to export bans.  
 
3.3 Measures Affecting Production and Trade  
3.3.2 Standard s and other technical requirements  
3.3.2.5 Labelling  
Page 116, Paragraph 3.128  
 
Question 18  
 
Can Indonesia provide further information on the labelling and certification requirements for certain 
products, including the requirement for non -halal information on labels.  
 
Answer:  
 
For halal products that have been certified in Indonesia or certified by foreign halal institutions which 
have collaborated with the Indonesian government, they must include a halal label and/or registration 
number. However, for non -halal products that will enter and circulate in Indonesia is obligated to include 
non-halal i nformation in the form of pictures, signs, or writing  
 
3.3 Measures affecting production and trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.2 SPS Measures  
3.3.3.2.6 Halal Requirements  
Page 122, Paragraph 3.151  
 
The report states that, under the 2014 Halal Product Assurance Law and its implementing regulation, 
GR No. 31 of 2019, all halal products sold on the Indonesian market must obtain certificates from the 
newly established Halal Products Certification Agency (BPJPH), under the Ministry of Rel igious Affairs.  
 
Question 19  
 
Will Indonesia ensure implementation of the law is no more trade restrictive than necessary?  
 
Answer:  
 
The application of stated regulation does not intend to limit trade, because non -halal products can still 
be circulated in Indonesia by providing non -halal information on packaging that is easy for consumers 
to read / see.  
 
Question 20  
 
Could Indonesia clarify the Halal Law and its implementation, including the full scope of products 
requiring certification, as w ell as labelling requirements for non -halal products?  
 
Answer:  
 
For halal products that have been certified in Indonesia or certified by foreign halal institutions which 
have collaborated with the Indonesian government, they must include a halal label and/or registration 
number. However, for non -halal products that will enter and circulate in Indonesia is obligated to include 
non-halal information in the form of pictures, signs, or writing. The products coverage for halal 
certification requirement s has already notified under TBT Secretariat (G/TBT/N/IDN/123).  
 WT/TPR/M/401/Add.1  
 
- 66 - 
 
  Question 21  
 
What level of segregation of halal and non -halal products does the law require at each point of the 
supply chain?  
 
Answer:  
 
It has been regulated From Article 43 to Article 60 G overnment Regulation No. 31 of 2019.  
 
3.3 Measures affecting production and trade  
3.3.6 Government procurement  
Page 131, paragraph 3.181  
 
The Secretariat report states that, all procuring entities must operate their own electronic procurement 
system (LPSE ), on which they must post information on individual tenders up until the signing of the 
contract; the LPSEs can be accessed through the portal http://inaproc.id/lpse. Providers of goods and 
services that want to take part in bidding processes must registe r with these LPSEs (this is free of 
charge). Almost all central government ministries and agencies as well as local governments have 
established their LPSEs, except some in the eastern part of Indonesia. A distributed procurement 
database is installed with  the LPSEs, and aggregates all their procurement announcements and 
accompanying tender documentation. In turn, tender announcements are publicly available through the 
single national e -portal INAPROC (http://inaproc.id/tender).  
 
Question 22  
 
How do the eastern parts of Indonesia, that have been identified as not having established LPSEs 
(electronic procurement systems), make tender information available for providers of goods and services 
to take part in bidding processes?  
 
Answer:  
 
District governments who have not established LPSEs can use the LPSE in the provincial level or nearest 
LPSE to announce tender information.  
 
3.3 Measures affecting production and trade  
3.3.6 Government procurement  
Page 133, paragraph 3.190  
 
The report makes reference to 'procurement packages ', that PR No. 16/2018 continues to reserve 
procurement packages for goods, construction services and other services up to a value of IDR  2.5 billion 
for small businesses (unless they cannot be undertaken by such entities because they are too technically 
demanding).  
 
Question 23  
 
Could Indonesia please provide further information on what constitutes a procurement package?  
 
Answer:  
 
A procurement package is a package of goods, services, other services, co nstruction work or combined 
that would be procured through certain procurement method under one contract.  
 
3.2 Measures Affecting Production and Trade  
3.3.7 Intellectual Property Rights  
Page 137, Paragraph 3.206  
 
The report outlines the DGIP role in receiv ing IP applications. In response to the COVID -19 pandemic, 
the DGIP is reported to have taken steps to provide more services online or remotely.  WT/TPR/M/401/Add.1  
 
- 67 - 
 
  Question 24  
 
Are you able to expand on any trends in copyright applications to the DGIP in the wake of COVID -19? 
 
Answer:  
 
In response to the COVID -19, all IP services, including copyright recordation system can be accessed 
online. The system will continue to improve and expand from recordation/registration to post -filing 
services, such as cancellation of c opyright because of court order, copyright invalidation based on 
copyright holder 's initiative, etc.  
 
3.2 Measures Affecting Production and Trade  
3.3.7 Intellectual Property Rights  
Page 137, Paragraph 3.208  
 
The report states that over the review period Indonesia acceded to the WIPO -administered Beijing 
Treaty on Audiovisual Performances in April 2020.  
 
Question 25  
 
How does Indonesia plan to implement the Beijing Treaty and how does it interact with existing  rights 
under copyright law?  
 
Answer:  
 
Provisions under the Beijing Treaty have been fully accommodated in Indonesian Copyright Law (fully 
complied). However, provisions related to technology protection measures to protect performer 's rights 
have not inco rporated in detailed. Future revision of copyright law shall include such provisions.  
 
3.2 Measures Affecting Production and Trade  
3.3.7 Intellectual Property Rights  
3.3.7.2 Copyright  
Page 143, Paragraph 3.226  
 
The report outline the new Law No. 28 of 2014  that administers provisions on copyright and related 
rights. This includes reference to traditional cultural expression, and the establishment of Collective 
Management Organisations (CMOs)  
 
Question 26  
 
Could you please provide detail on what constitutes traditional cultural expression under this law, and 
how does this interact with traditional culture in Indonesia? (e.g., is it targeted at certain people groups 
or certain forms of expression?)  
 
Answer:  
 
Traditional cultural expressions target all forms of expressions in Indonesia.  
 
Question 27  
 
Could you please provide detail on how CMOs are established and regulated under Indonesia 's copyright 
law? 
 WT/TPR/M/401/Add.1  
 
- 68 - 
 
  Answer:  
 
CMOs in Indonesia is administered by National Collective Management Organization. CMO has function 
to collect and distribute royalty for music and/or songs. Upon request to the Minister, operational permit 
is granted subject to certain requirements to fulfil upon.  
 
3.2 Measures Affecting Production and Trade  
3.3.7 Intellec tual Property Rights  
3.3.7.2 Copyright  
Page 144, Paragraph 3.228  
 
One of the three new copyright -related regulations outlined in the report is GR No. 27/2019 on 
Facilitating Access to Works for Persons with Print Disabilities and Using Braille, Audio Books  and Other 
Media covers persons with disabilities who benefit from access facilitation.  
 
Question 28  
 
Could you please provide detail on how this regulation operates, with any procedural and technical detail 
you can provide on how institutions are to seek permission from the Indonesian Government?  
 
Answer:  
 
The procedure to obtain authorization is by submitting a request; Applicant may also request digital 
Copies of books or papers kept in national library, by providing authorization from the Minister of La w 
and Human Rights.  
 
Question 29  
 
What factors must the Government take into account in determining whether to grant permission to the 
institution?  
 
Answer:  
 
a) Libraries with facilities for persons with disabilities;  
b) Government agencies or regional institutions with tasks and duties to facilitate persons with 
disabilities;  
c) Community development organizations and social welfare agencies that facilitate persons with 
disabilities; and  
d) Persons voluntarily assisting person s with disabilities to have self -access to entire or substantial part 
of Works in braille, audio books, or other devices, provided that it is non -commercial.  
 
3.2 Measures Affecting Production and Trade  
3.3.7 Intellectual Property Rights  
3.3.7.2 Copyright  
Page 144, Paragraph 3.228  
 
Another of the three new copyright -related regulations outlined in the report is the 2015 Joint 
Regulations on Taking Down Content and/or User 's Access Right Infringing Copyright and Related Rights 
in Electronic System.  Australia notes that we have had a similar scheme in place since 2015.  
 
Question 30  
 
Could you please provide detail on how this regulation operates, with any procedural and technical detail 
you can provide, as well as information about how many sites or  other content has been taken down or 
access restricted under this scheme?  
 WT/TPR/M/401/Add.1  
 
- 69 - 
 
  Answer:  
 
Regulation stated contains provisions on: procedures of filing report on Copyright infringement; 
procedures for report verification; taking down content and/or access righ ts; re -opening content and/or 
user's access rights; and, legal remedies.  
 
Statistic of Enforcement to Copyright Infringement (Closing Down Websites Content), as of 
30 November 2020  
 
Year Number of Websites Being Closed Note  
2018 390  
2019 66  
2020 148  
 
3.2 Measures Affecting Production and Trade  
3.3.7 Intellectual Property Rights  
3.3.7.2 Copyright  
Page 144, Paragraph 3.229  
 
The report notes concerns expressed about the absence of effective policies and procedures to ensure 
that government agencies do not use unlicensed software, and the continued prevalence of unlicensed 
software.  
 
Question 31  
 
Does Indonesia plan to put in place any measures to curtail the proliferation of unlicensed software?  
 
Answer:  
 
Indonesian Copyright Law is based on complaint offense and only copyright holders, his representative, 
and/or licensee are entitled to file complaint for any allegation of software infringement.  
 
3.2 Measures Affecting Production and Trade  
3.3.7 Intellectual Property  Rights  
3.3.7.3 Enforcement  
Page 144 -5, Paragraph 3.230  
 
The report notes that since 2019 IP infringements can be reported through DGIP online.  
 
Question 32  
 
Could you please provide more detail on how many infringements have been reported since 2019, and 
how this data has been used or may be used into the future to improve IP enforcement?  
 
Answer:  
 
Since 2019, reports on IP infringement can be filed online using application e -penguin or through website 
https://pengaduan.dgip.go.id/. Online reporting system  is apparently effective for public to report IP 
infringements. The table below shows the number of reports since 2019:  
 
Year Types of infringement  
Total  Report status  
Keterangan  Trade
mark  Patent  Copyright  Industrial 
design  Dropped  Processed  Reports  
2019 9 1 12 0 22 22 0 0  
2020 21 3 35 2 61 47 11 3  
Source:  Internal Data Internal of Sub directorate of Reports and Administration of IP Civil Servant Investigator, 
Directorate of Investigation and Dispute Settlement . WT/TPR/M/401/Add.1  
 
- 70 - 
 
  3.2 Measures Affecting Production and Trade  
3.3.7 Intellectual Property Rights  
3.3.7.2 Copyright  
Page 145, Paragraph 3.234  
 
The report provides an overview of IP -related cases and enforcement actions undertaken by Indonesian 
authorities over the review period.  
 
Question 33  
 
Have any of these cases or enforcement activities related to 'illicit streaming devices ' (ISDs)? Is this a 
known piracy issue in Indonesia?  
 
Answer:  
 
Directorate of Investigation and Dispute Settlement is a dedicated unit under Directorate Gen eral of 
Intellectual Property to handle IP infringements and investigations.  
 
Question 34  
 
Could you please provide more details about campaigns and prevention measures undertaken, and if 
possible information about the effectiveness of these programs?  
 
Answer: 
 
Prevention measures are handled by "Section of Prevention ". Prevention measures are conducted in 
2 ways: first, by public dissemination such as seminar or workshop to discuss about IP infringement 
prevention and the second is direct public outreach programs.  
 
3.2 Measures Affecting Production and Trade  
3.3.7 Intellectual Property Rights  
3.3.7.2 Copyright  
Page 146, Paragraph 3.237  
 
The report describes a system called CEISA HKI DJBC to provide facilities for right holders recording 
their IPRs . Features include interlinking with the courts, and automatic push notifications in terms of 
suspension of goods with infringe IPRs  
 
Question 35  
 
Could you please provide more detail about how this system operates and how it improves enforcement 
of IP rights?  
 
Answer:  
 
CEISA HKI has push notification system which is interlinked with DG Intellectual Property Right (DGIP) 
system, when there are suspension of import IPR infringement goods, Customs officers will submit the 
notification and  the system will immediately send notification to DGIP. This kind of mechanism surely 
will help DGCE and DGIP team to enforce the IPR regulations.  
 
4 TRADE POLICIES BY SECTOR  
4.2 Mining and Energy  
4.2.1 Mining  
Page 174, Paragraph 4.104  
 
The report notes th at the foreign divestment requirement in the mining sector has reverted to the 
position whereby foreign shareholders must divest their interest in stages, currently commencing from WT/TPR/M/401/Add.1  
 
- 71 - 
 
  the fifth year of production, so that foreign shareholders have a maximum s hareholding of 49 % by the 
tenth year of production.  
 
Question 36  
 
Could Indonesia provide an update on the process for the divestment of mining shares?  
 
Answer:  
 
The obligation to divest mining shares remains unchanged as per Law No. 4/2009. In divesting shares, 
Mining Business License (IUP) and Special Mining Business License (IUPK) holders are required to offer 
51% of shares in stages to the central government, local governments, state -owned enterprises, 
regional -owned enterprises, or national private enterprises.  
 
Indonesian Government Report for the TPR (WT -TPR-G-401)  
 
4 TRADE AND TRADE RELATED POLICY  
4.2 Sectoral Policies  
4.2.8 Intellectual Property Rights  
Page 20  
 
The revised 2016 Patent Law includes localisation provisions that require the manufacture of patented 
products and use of patented processes in Indonesia. Australia understands this is a serious concern, 
particularly for foreign patent rights holder and welcomes the Indonesian government 's steps in 
addressing these conce rns. 
 
Question 37  
 
Can Indonesia please clarify what steps the government is taking to address the concerns of foreign 
patent rights holders regarding the local use and manufacture provision in its 2016 Patent Law?  
 
Answer:  
 
The provision has been revised so importation can be considered as an implementation by patent holder 
(Article 107 Law No 11 of 2020).  
 
4.2 Sectoral Policies  
4.2.8 Intellectual Property Rights  
Page 20, paragraph 4.43  
 
Indonesia has introduced a customs recordation system in 2018 to allow Indonesian Customs to suspend 
goods that infringe registered trademark or copyright rights in Indonesia.  
 
Question 38  
 
Can foreign applicants who hold a trademark or copyright register ed in Indonesia, but do not have a 
local subsidiary in Indonesia, access the customs recordation system, noting there is a local domicile 
requirement for applicants in Article 3(5) of the Minister of Finance Regulation No. 40.PMK.04/2018.  
 
Answer:  
 
Accordi ng to the Ministry of Finance Regulation 40/PMK.04/2018, the Owner or the Right holder is owner 
or right holder of the IPR protected in Indonesia based on the regulation regarding the IPR. In order to 
apply for the recordation system, the owner or the righ t holder must be a legal entity and located in 
Indonesia.   
 WT/TPR/M/401/Add.1  
 
- 72 - 
 
  Question 39  
 
If foreign trademark or copyright holders are unable to access the Indonesian Customs recordation and 
temporary suspension system, can Indonesia please clarify how it would ensure th e national treatment 
principle outlined in Article 3(1) of the TRIPS agreement is observed in its new Customs recordation 
system, to allow foreign applicants the same access provided to Indonesian applicants in its Intellectual 
Property border enforcement system.  
 
Answer:  
 
We believe that the regulation would not violate the Article 3(1) of the TRIPS, but rather the local 
subsidiary requirement for recordation and suspension system will provide more benefit to the right 
holders in protecting their IPRs.  
 
According to the Mi nistry of Finance Regulation No. 40/PMK.04/2018, the foreign applicants must have 
a permanent establishment or local subsidiary in Indonesia in order to apply for recordation system.  
 
Question 40  
 
Would parties to a dispute over Customs -suspended goods be able to resolve their dispute out of Court 
or do they have to go to the Commercial Court (Pengadilan Niaga)?  
 
Answer:  
 
The first step to resolve the dispute is through Commercial Court, then if the decision from the Court 
has been issued, the parties could  choose any kind of method to further resolve the dispute according 
the commercial court tribunal.  
 
Australia notes that Indonesia is planning on reinstating the export ban on raw ore in 2022.  
 
Question 41  
 
Could Indonesia explain how it will ensure that t his measure will be consistent with paragraph 1 of GATT 
Article XI (General Elimination of Quantitative Restrictions) noting that a previous export ban already 
took place from 2014 -16? 
 
Answer:  
 
Indonesia impose export ban for certain mineral products due  to the limited stock of such exhaustive 
non-renewable natural resources. This policy than accompanied with several mitigation approaches in 
order to minimize the negative impact of environmental degradation as the result of unsustainable 
business practice . One of the accompanying policies is ensuring that the local price of ores is in line with 
the international price, that makes miners conducting their practices reasonably and in accordance with 
the principles of good mining practices.  
 
Question 42  
 
Why d oes Indonesia see a need to reinstate a raw ore export ban? In what conditions will the ban be 
eased?  
 
Answer:  
 
Regulations on trade of raw materials have changed from time to time in line with the prevailing 
situations because raw materials are exhaustible non -renewable natural resource that is very important 
for Indonesia.  
 WT/TPR/M/401/Add.1  
 
- 73 - 
 
  Question 43  
 
If this ban takes place, is this measure designed to be temporary or permanent? If temporary, how long 
is it expected to last?  
 
Answer:  
 
This measure is temporary because of the limited number of mineral reserves in Indonesia, and in order 
to provide supp ly-guarantee for smelters which is planned to operate at the beginning of the year 2022, 
so the process of refining and processing activity will be carried out well. It should be noted that this 
measure applied to not only foreign investment company but al so to domestic producers as well.  
 
Question 44  
 
What kind of raw ores will the anticipated 2022 export ban cover?  
 
Answer:  
 
Indonesia's policy adjusts with the development of the mining practices in Indonesia. So, Indonesia is 
not having a long -term antici pation of such policies. It indicates the dynamic of the policy reform.  WT/TPR/M/401/Add.1  
 
- 74 - 
 
  UNITED STATES  
Questions from based on the Secretariat Report (WT/TPR/S/401)  
 
1 ECONOMIC ENVIRONMENT  
1.1 Main Features of the Economy  
 
Page 20, Box 1.1 :  The Secretariat notes that, under Government Regulation (PP) No. 23/2020, 
Indonesia is seeking, among other things, to "provide support to ailing state -owned enterprises " through 
state capital injections, fund placements at banks, government investment,  and state guarantees. 
IDR 3 trillion has been allocated under this program for working capacity for the state -owned steelmaker 
PT Krakatau Steel.  
 
1. In what respect was PT Krakatau Steel determined by Indonesia to be "ailing, " such that it 
qualified for fin ancial support under this program?  Relatedly, and more generally, what was the 
policy rationale for allocating support specifically to PT Krakatau?  
2. In what form(s) did the government provide the allocated IDR 3 trillion to PT Krakatau Steel 
(i.e., was the  support in the form of a cash injection, fund placement, government investment, 
or other mechanism)?   
3. Has additional support been provided by the government to PT Krakatau Steel under the national 
economic recovery program (PEN), beyond the IDR 3 trillio n specifically allocated to the 
company under Government Regulation (PP) No 23/2020?  
 
Answers:  
 
1. Krakatau Steel does not have any support through National Recoveries Program (PEN) during 
pandemic. However, since steel industry is considered as the backbone of all industries, there are 
funds reserved as government investment funds (bailouts) which can only be realized when the 
Company issues Bonds.  
2. Government provide the allocated budget for Krakatau steel as the government investment.  
3. The government  does not provide any additional support to Krakatau Steel.  
 
Follow -up Question:  
 
1. Could Indonesia elaborate on the support Krakatau Steel has received other than through the 
National Recoveries Program? What "government investment funds (bailouts)" exist f or Krakatau 
Steel, how much is available in those funds, and how are those funds dispersed when the Company 
issues bonds? Have any such bailout funds been dispersed to the Company in the last year?  
2. Did the Government of Indonesia acquire additional equity or shares from Krakatau steel in exchange 
for its investment?  Was any Krakatau debt converted into equity as part of this investment?  
3. What support does the Government of Indonesia currently supply to Krakatau Steel, whether 
additional or not?  
 
Answer:  
 
1. Krakatau (KRAS) receives no other support other than through the National Recoveries Program. The 
available government investment fund (in corporate bonds) for Krakatau is a maximum value of 
IDR 3 trillion. This fund will be disbursed twice when Krakatau i ssues mandatory convertible bonds. 
For the last year, there was no other fund dispersed to Krakatau Steel.  
2. IDR 3 trillion has been allocated by the government. KRAS is expected to issue a 7 -year mandatory 
convertible bond and the government will be the sol e standby buyer.  
3. The government has no provided additional support for KRAS under the PEN scheme. However, 
several banks ' lending to KRAS, have supported KRAS by restructuring its debt.  
 WT/TPR/M/401/Add.1  
 
- 75 - 
 
  2 TRADE AND INVESTMENT REGIMES  
2.2.3 Trade laws and regulations  
Page  43, Paragraph 2.19  
 
4. The Secretariat notes that public consultation mechanisms, such as the publication of comments 
and other practices that allow wide access, are being used.  Please provide examples of "other 
practices ".  Additionally, please confirm whe ther such "other practices " include the online 
publication of draft regulations and other measures.  
5. The report notes that Good Regulatory Practices (GRPs) have been implemented in several 
agencies.  What is being done to ensure that GRPs are applied unifor mly across all agencies, 
including the Ministry of Trade? Does the National Development Planning Agency (BAPPENAS) 
have a role in ensuring agency compliance with GRPs?  
 
Answer:  
 
4. Indonesia provide public consultation mechanisms, i.e., public consultation me chanisms for the draft 
of the Implementing Regulations on Job Creation Law which is available on 
www.ciptakerja.go.id/category/draft -rpp/.  
5. To ensure GRP, government enacted President Instruct ion No. 7/2017 which every policy and 
regulation whose big impact in society will be coordinated with Coordinating Ministries.  
 
2.2.4 Transparency  
Page 44, Paragraph 2.20  
 
6. Please clarify further how the Government Service Bus application, facilitates interagency 
coordination on regulatory measures.  
 
Answer:  
 
Indonesia is to clarify that the said GSB Application (MANTRA) supports the system interoperability to 
support data and information exchange among electronic information system users in  the governmental 
field. The system has been implemented by 20 Central/Regional Government Institutions.  
 
2.3.1.3 Notifications  
Page 48, Paragraph 2.29  
 
7. The Secretariat indicates that notifications to the WTO on TRIMs, pre -shipment inspection, and 
quantita tive restrictions are outstanding.  These omissions weaken transparency and create 
challenges for traders to comply with Indonesian requirements. Please provide a timeline for 
submitting the notifications, which are past due.  
 
Answer:  
 
Indonesia has not been able to provide a timeline related to the notifications since the provisions and/or 
amendments regarding the aforementioned regulations is still under discussions among government 
agencies.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1.1 Customs proc edures, valuation, and requirements  
3.1.1.1 Customs procedures  
 
Page 63, Paragraph 3.11:   According to the Secretariat, Indonesia undertook work on several trade 
facilitation initiatives during the review period, including the Post -Border Import Supervisio n Policy and 
integration of the Indonesia Single Risk Management (ISRM) system into the Indonesia National Single 
Window (INSW) platform.    
 WT/TPR/M/401/Add.1  
 
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  8. Please explain what percentages of trade are being processed through the Post -Border Import 
Supervision system, inc luding statistics that highlight the volumes and percentages of trade being 
processed in the system.  
 
Answer:  
 
There were 4.48% of the total licenses issued with 18,607 transactions.  
 
9. Please explain the results of the ISRM system implementation in 2016, including examples of how 
integration into the INSW platform has improved the import/export process.  
 
Answer:  
 
The implementation of ISRM is still needs to be done in stages and its implementation is still in the form 
of a pilot pro ject. 
 
Page 66, Paragraph 3.21:   The Secretariat notes that Indonesia has never submitted a pre -shipment 
inspection notification to the WTO.  
 
10. When does Indonesia intend to submit this notification?  
 
Answer:  
 
We committed to notify the regulations in accordance to WTO Agreement.  
 
Page 71, Paragraph 3.30:  The Secretariat notes that during the review period, the basic customs 
valuation legislation of Indonesia remained unchanged, but implementing regulations were amended.  
 
Follow -up Ques tion 10:  We appreciate Indonesia for their commitment to notify the regulations in 
accordance with the WTO Pre -Shipment Inspection Agreement. Does Indonesia intend to submit their 
notification of pre -shipment inspection requirements before the next WTO Com mittee on Customs 
Valuation meeting?  
 
Answer:  
 
In the context of import verification, the VPTI verification conducted by Indonesia is not under PSI 
Arrangement, due to several different aspects.  
 
11. Could Indonesia provide an estimate on when it will submit its amended regulations to the WTO 
Secretariat, consistent with Article 22 of the Agreement on Customs Valuation? When will Indonesia 
further submit its replies to the standard set of questions found in the Checklist of Issues? This 
notification has  been an obligation for all WTO Members implementing the WTO Customs Valuation 
Agreement since 1995.  
 
Answer:  
 
We believe that Indonesia Regulations already comply with the customs valuation agreement. We are 
of the view that the Checklist Issue is not an obligation because it will be used only as a supporting 
document for initial examination of national legislation.  
 
We will further be coordinating with Ministry of Trade and other government agencies to notify to The 
WTO several Regulations regarding the C ustoms Valuation.  
 
Follow -up Question 11:   
 
At its first meeting, on 12 May 1995, the WTO Committee on Customs Valuation agreed on procedures 
requiring all Members to submit their national legislation on customs valuation. The Committee also 
decided that M embers should submit replies to the "Checklist of Issues " contained in G/VAL/5.  The WTO WT/TPR/M/401/Add.1  
 
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  Committee on Customs Valuation also noted Indonesia 's lack of replies to the Checklist of Issues in their 
report to the Council on Trade in Goods. Will Indonesia submi t its replies to the standard set of questions 
found in the Checklist of Issues by the next WTO Committee on Customs Valuation meeting?  
 
Answer:  
 
Indonesia would like to restate that we would further be coordinating with the Ministry of Trade and 
other gov ernment agencies to notify The WTO of several Regulations regarding the Customs Valuation.  
 
Page 72, Paragraph 3.31:   The Secretariat notes the DGCE relies on a schedule of reference prices to 
assess duties on some imports rather than using transaction val ues. 
 
12. Please explain how is this practice is consistent with Article 7 of the Agreement on Customs 
Valuation?      
 
Answer:  
 
DGCE uses the transaction value as the basis for customs valuation. The examination of customs value 
does not depend on the reference prices related to imported goods and always adhere to the principle 
of Article 7 of the Agreement on Customs Valuation.  
 
Moreover, Indonesia doesn 't use price database to determine customs value under identical or similar 
goods and fallback method. Price data base is built and only used as a risk -assessment tool for customs 
officer.  
 
Other measures affecting imports 3.1.7  
 
Page 88, Paragraph 3.73:  The Secretariat notes that during the review period, Indonesia continued 
to use local content requirements (LCRs) to protect and develop domestic industries.  
As the Secretariat report notes, there is long -standing and predominately negative evidence of the 
impact of LCRs on economic development and trade. We would again urge Indonesia to co nsider its 
obligations  as a party of the WTO Agreement on Trade Related Investment Measures (TRIMs) and how 
these local content requirements may conflict with those obligations.  In bilateral meetings Indonesia 
has told us that it will undertake a "compreh ensive review " of its local content policies.  
 
13. Please provide an update on this review and a timeframe for when it will be completed . 
 
Follow -up Question 13:  
 
The United States notes that Indonesia 's reply did not sufficiently address the question that was asked.  
Could Indonesia please elaborate on this response?  Does this mean that Indonesia has conducted the 
review already? If so, could it communicate the results?  If it has yet to conduct the re view, please 
provide a timeline for when it will be undertaken.   
 
Answer:  
 
The review of Indonesia's localization measures is still under discussion within related institutions and 
stakeholders. Due to the covid -19 pandemic, the discussion is slightly del ayed.  
 
14. Additionally, please indicate if there are any plans to remove any of these local content 
requirements  in the near future?  
 
Answer:  
 
At the moment, Indonesia does not have any plan to revise the local content requirement regulation in 
the near futur e. 
 WT/TPR/M/401/Add.1  
 
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  15. Please provide an update on how Law 11 of 2020 (also known as, "The Job Creation Law " and "The 
Indonesia Omnibus Law ") addresses LCRs and clarify when we can expect implementation of these 
changes?  
 
Answer:  
 
At the moment, the Government of Indonesia is still working to establish the implementing regulation 
of Job Creation Law.  
 
3.2 Measures Directly Affecting Exports  
3.2.3.1 Export prohibitions  
 
Page 92, Table 3.7 :  The Secretariat notes that the rationale for Indonesia 's prohibition on expo rts of 
certain raw materials, including nickel ore, is to "develop and accelerate certain downstream industry 
sectors, including stainless steel production. " 
 
16. Indonesia is currently the world 's second largest exporter of stainless steel, second only to China.  
In the last five years, Indonesia 's exports of stainless steel increased by over 3,000%, from under 
70,000 metric tons in 2015 to nearly 2.3 million metric tons in 2019 (data from Statistics 
Indonesia).   
17. What is Indonesia 's exact goal with respect  to the "development and acceleration of stainless steel 
production "?  How much further is Indonesia seeking to develop/accelerate its stainless steel 
production, given the already immense increase in Indonesia 's exports of these products?  
 
Answer:  
 
As a d eveloping country, Indonesia is on the verge to develop and to build infrastructure that 
significantly helped by the development and acceleration of stainless -steel production. Indonesia is also 
determined to fulfil the demand of world's market toward stai nless steel product.  
 
3.3.2 Standards and other  technical requirements  
Technical Regulations 3.3.2.3  
 
Page 113, Paragraph 3.122:  The Secretariat notes, "most technical regulations in force are available 
online. "  
 
18. Please explain why all technical regulations are not available online. Are draft regulations available 
or only regulations in force?  
 
Answer:  
 
All technical regulations in force are available on the regulator's website. However, not all draft 
regulations are available online.  
 
Follow -up Question 18:  
 
The United States notes that Indonesia 's reply did not sufficiently address the question that was asked.  
Could Indonesia please also explain why all technical regulations are not available online?    
 
Answer:  
 
Basically, all technical regulations are disseminated/published. In majority most Ministries has specific 
website to facilitate the publications of technical regulation.  
 
Since the technical regulation is still under discussion, it is not available online. All technical regulations 
that have been promulgated and are already in effect can be access through the BSN portal 
sispk.bsn.go.id.  
 WT/TPR/M/401/Add.1  
 
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  Page 113, Paragraph 3.122:  The Secretariat notes that as of February 2020, 205 technical 
regulations were in force (most of which were issued by the Ministry of Industry) and of these, 134 were 
notified to the WTO.  
 
19. Please explain why the 71 other technical regulations in force were not notified  to the WTO?  
 
Answer:  
 
Some technical regulations are not notified as they are not related to international trade and only enforce 
in the domestic market.  
 
Follow -up Question 19:   
 
How does Indonesia determine that a domestically targeted regulation will have no impact on 
international trade?  Could Indonesia also identify the regulations that pert ain to the domestic market 
only?  
 
Answer:  
 
These technical regulations are enforced as mandatory both for domestic producers or stakeholders, 
and are not related to export and import activities.  The provisions of technical regulation notified to 
TBT WTO Secretariat are based on BSN Regulation No. 8/2020.  
 
20. Can Indonesia please indicate when they will notify the remaining regulations?  
 
Answer:  
 
It is not necessary to notify the technical regulations that are not related to international trade.  
 
Page 11 3, Paragraph 3.123:  The Secretariat notes that 57 of the 58 regular notifications to the WTO 
TBT Committee observed the 60 -day comment period. The IDN/123 notification for the Implementation 
of the Halal Product Assurance Law was notified on October 14, 2 019 with a 60 -day comment period.  
Those implementing regulations went into effect on October 17, 2019.   
 
21. How does Indonesia reconcile a 60 -day comment period when the draft measures are implemented 
before that period is closed?  How are comments submitte d during that period taken into account?  
 
Answer:  
 
Comments received after the 60 -days period are still taken into consideration and are further 
coordinated with related regulators.  
 
Follow -up Question 21:   
 
If the regulation has already entered force, how  does Indonesia review and rewrite those regulations 
based on these comments?  Why does Indonesia not simply delay implementation until after the 60 day 
period has ended and they have had adequate time to assess all the comments?  Can Indonesia also 
give a concrete example of a time they have made adjustments to a regulation that has entered into 
force before the end of the comment period?  
 
Answer:  
 
All comments received after 60 days period, are taken into consideration for review of the 
implementati on of the technical regulation by related institutions. Some draft regulations are pending 
or delayed to come into force as the ministries consider comments from stakeholders i.e., technical 
regulations related to biscuits and towel.  
 WT/TPR/M/401/Add.1  
 
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  22. Will Indonesia  adjust the timeline of notifications and comment periods on future regulations to 
better allow the spirit of the 60 -day comment period to be observed?  
 
Answer:  
 
Indonesia will adjust the timeline of notifications and comment periods on future reg ulations . 
 
Page 113, Paragraph 3.121:  According to the Secretariat, GOI has implemented several activities to 
improve the timeliness of its draft notifications in response to concerns about the lack of draft 
notifications.  While it is commendable for GOI  to implement these activities, during the review period, 
a number of technical regulations were still published domestically, but not notified to the TBT 
Committee Members.  One area of concern is that the majority of these new activities are focused on 
departments/ministries that primarily deal with international trade.  However, many trade -significant 
technical regulations are released by ministries/departments not usually involved in international trade.  
For example, the Ministry of Religion released a  draft regulation regarding the product scope for the 
Halal Product Assurance Law.  This measure was published domestically, but not to Committee Members.  
 
23. Please explain in more detail the GOI 's interagency process to notify TBT measures, including the 
process to notify measures from agencies that are not traditionally involved in trade, such as the 
Ministry of Religious Affairs .  
 
Answer:  
 
BSN has stipulated BSN Regulation No. 7/2020 on Procedu res of Mandatory SNI and BSN Regulation 
No. 8/2020 on Procedures of Regulatory Impact Assessment and International Compliance. In these two 
regulations, it is stated that the process of notifying the draft technical regulation to the WTO TBT 
Committee is t hrough BSN as Notification Body.  BSN makes coordination with related ministries with 
regard to the implementation of mandatory SNI or other measures such as halal by The Ministry of 
Religious Affairs. As for halal, Indonesia has notified the Draft Technic al Regulation on Halal Product 
Assurance i.e., G/TBT/N/IDN/123 on 14 October 2019.  Prior to notifying to WTO TBT Secretariat, BSN 
and The Ministry of Religious Affairs have made intensive discussion in the TBT National Committee.  
 
Conformity Assessment an d Market Surveillance 3.3.2.4  
 
Page 115, Paragraph 3.126:  The Secretariat notes that Indonesia 's National Accreditation Body 
(KAN) is an ILAC signatory.  
 
24. There are widespread reports of Indonesia no longer accepting test reports from ILAC-certified labs 
outside of Indonesia. Does Indonesia no longer recognize these agreements?  
 
Answer:  
 
Based on Law No. 20/2014, Article 34 Para 36 (1), all conformity assessment activities are conducted 
in accordance with the requirements of internation al competency recognized at the international level. 
All conformity assessment activities such as testing, inspection, and certification are conducted by CAB 
accredited by the National Accreditation Committee (KAN). In the case that it has not been accredi ted, 
the Regulator can assign the CAB.  
 
Follow -up Question 24:  Will Indonesia confirm that it does accept ILAC accredited lab testing, as KAN 
is an ILAC signatory?  
 
Answer:  
 
In addition to the requirements ILAC signatory, there is requirement for bilateral or multilateral 
agreements (G2G agreement).  
 
25. In addition, con formity assessment procedures often differ for imported versus domestic products. 
How does Indonesia plan to harmonize conformity assessment for all products?  WT/TPR/M/401/Add.1  
 
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  Answer:  
 
In formulating technical regulations, Indonesia attempts to make the relevant regulatory  regulators 
harmonize the conformity assessment between domestic and imported products.  
 
Follow -up Question 25:  The United States notes that Indonesia 's reply did not sufficiently address 
the question that was asked.  Could Indonesia please explain how it plans to harmonize conformity 
assessment for all products?  Indonesia has indicated that it "attempts to make the relevant regulatory 
regulators harmonize the conformity assessment between domestic and imported products. "  However, 
how does Indonesia ensur e that there is no difference between the treatment of imported and domestic 
products?  
 
Answer:  
 
Indonesia still abides to the best practice of international trade such as ISO/IEC 17067:2013 Conformity 
Assessment -Fundamentals of Product Certification and Guidelines for Product Certification Schemes.  
 
Page 116, Paragraph 3.128:   According to the Secretariat, GOI identified several labeling -related 
developments that are trade significant.  Identified developments include MoH Regulation 30/2 013 (as 
amended by MoH Regulation 63/2015) and the Halal Product Assurance Law (and its implementing 
regulations).  The United States notes these measures are still being developed, or revised. For example, 
the Halal Product Assurance Law remains unclear r egarding which products must comply with the new 
labeling requirements.  Although the United States is aware that GOI has released draft measures 
intended to clarify the scope of the labeling requirements, these measures have not been notified to the 
Commi ttee.  
 
26. Please  explain  when the revised MOH Regulation 30/2013 will be notified to the WTO.  
 
Answer:  
 
The Regulation is under review by the Ministry of Health with related stakeholders.  
 
Follow -up Question 26:   
 
Is there a timeline for this review and the eventual notification?  
 
Answer:  
 
Referred to the answer before, the regulation is still under review.  
 
27. Please explain if all measures/regulations/standards related to Halal Product Assurance Law labeling  
have been notified to the WTO, prior to entry in to force.  
 
Answer:  
 
Labelling of halal products refers to NFDA Regulation No. 31 Year 2018 on Label for Processed Food, 
and it has been notified in G/TBT/N/IDN/124/Rev.1 on 17 December 2019.  
 
Follow -up Question 27 :  
 
Can Indonesia confirm that there are no other measures/regulations/standards related to Halal Product 
Assurance Law labelling?  
 
Answer:  
 
There are no other measures/regulations/standards related to Halal Product Assurance Law labelling.  
 WT/TPR/M/401/Add.1  
 
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  3.3.3 Sanitary an d phytosanitary  requirements  
3.3.3.1 Institutional and legislative framework  
 
Page 117,  Paragraph 3.129:   According to the Secretariat, Indonesia 's national enquiry points are 
the IAQA, the FQIA, and the Director of Standardization for Processed Food. The enquiry point is the 
single contact point to which any relevant enquiries can be made.    
 
28. Please  explain why several points of contact are listed for Indonesia.  
 
Answer:  
 
Indonesia have different contact points because each Ministry and/or Agency has different main tasks 
and functions.  
 
Page 118, Paragraph 3.134:  The Secretariat notes that, between January 2013 and April 16, 2020, 
Indonesia submit ted 134 regular notifications to the WTO Committee on Sanitary and Phytosanitary 
Measures, but that the 60 -day period for comments was applied to only 18 regular notifications.  
 
29. Can Indonesia explain why a 60 -day comment period was not applied to the othe r 116 regular 
notifications ?  
 
Answer:  
 
Indonesia always put best efforts to comply with WTO provisions.  
 
Follow -up Question 29:   
 
The United States notes that Indonesia 's reply did not sufficiently address the question that was asked.  
Can Indonesia provide a deeper explanation identifying the reasons for why a 60 -day comment period 
was not applied to 116 of the 134 notifications to the WTO Committee on Sanitary and Phytosanitary 
Measures?  
 
Answer:  
 
Since the 116 regular notifications are a lready in the form of ministerial regulations that have been 
enacted and have been signed, there is no response period.  
 
Page 118, Paragraph 3.134:  The Secretariat notes that 97% of Indonesian standards conform to the 
relevant international standards.  
 
30. Can Indonesia identify the remaining standards which do not conform to the relevant international  
standards? Please provide a rationale explaining why these standards are not in compliance with 
relevant international standards.  
 
Answer:  
 
Based on Article 13 Law No. 20/2014, SNI may not harmonize with international standard to the extent 
that the stan dard is required to accommodate the conditions of equality of technology, environment, 
geography, climate, religious perspective, or other special conditions, that differ with the requirement 
in international standard.  
 
Pages 119 -120, Paragraph 3.139:  The Secretariat states that Indonesia 's Food and Drug Authority 
(BPOM) is responsible for determining which food additives are permitted and prohibited, and for setting 
maximum limits for their use. The Secretariat also notes that, "if food additives are not regulated, 
stakeholders may nevertheless request permission to import/circulate them; they must submit a request 
to the BPOM who will assess and decide. "  
 WT/TPR/M/401/Add.1  
 
- 83 - 
 
  31. Please identify and explain procedures in place for the submission and assessment of requests for 
permission to import/circulate food additives for which BPOM does not yet have regulation . 
 
Answer:  
 
If the food additives are not listed in Head of Indonesian Food and Drugs Agency (BPOM) Regulation 
No. 11/2019 (a new type of food additives), the importers should have to applying for a permit, and 
apply for an assessment of food additives.  
 
32. Please provide further information on the criteria by which it will evaluate requests to 
import /circulate food additives for which BPOM does not yet have regulation. Does Indonesia 
publicize such criteria, and if so, where?  
 
Follow -up Question 32:   
 
The United States notes that Indonesia 's reply did not sufficiently address the question that was as ked.  
Can Indonesia please provide further information on the criteria by which it will evaluate requests to 
import/circulate food additives for which BPOM does not yet have regulation?  
 
Answer:  
 
Based on the Head of BPOM Regulation No. 11/2019, No. 13/2020, and No. 27/2018, permit application 
requirements for food additives as follows: composition of food additives, specification and purity of 
food additives, the function/purpose of using food additives, the level to be used, comparison of 
regulation s from other countries, and the safety of food additives.  
 
For the use of food additives that are not yet listed in the regulations, importers can request them, 
which will be reviewed by BPOM.  
 
33. Please confirm that BPOM will base the criteria by which it as sesses requests to import/circulate 
food additives  that are not regulated on the existing criteria and guidelines of international standard 
setting bodies, such as OIE, IPPC and Codex.  
 
Answer:  
 
In principle, Indonesian regulation regarding importation/ci rculation of food additives is in conformity 
with the guidelines and international standards, since the references used in compiling regulations 
related to food additives are Codex General Standards for Food Additives and CAC/GL 66 -2008 on 
Guidelines for T he Use of Flavourings.  
 
Page 120, Paragraph 3.140:   According to the Secretariat, authorities indicated that Indonesia always 
follows Codex standards for the setting of MRLs.  
 
34. Please  explain further the process Indonesia uses to set MRL standards.    
 
Answer:  
 
Due to the reference codex, BPOM determines MR L to be benchmarked with other countries and 
assessed with exposure simulations, adjusted for Indonesian consumption.  
 
Follow -up Question 34:   
 
Can Indonesia explain the methodology and criteria used to adjust for Indonesian consumption?   
 
Answer:  
 
BPOM determines MRL based on a study of estimated exposure to the ADI (Acceptable Daily Intake) 
value determined by WHO and also considers the amount of daily food consumption owned by BPOM WT/TPR/M/401/Add.1  
 
- 84 - 
 
  and the Ministry of Health, for example: 1 day/person/day usually consumes 60 grams of bread (BPOM 
Regulation No. 30/2018 on Food Consumption Figures). These data are both needed and in line with 
Codex.  
 
35. Please  explain if independently established MRLs are all harmonized with Codex.  
 
Answer:  
 
One of the references that we refer to in determining MRLs is Codex standard. However, we also took 
other references that have been proven by scientific justification and a djusted to the consumption in 
Indonesia as consideration.  
 
Follow -up Question 35:   
 
The United States notes that Indonesia 's reply did not sufficiently address the question that was asked.  
Can Indonesia please explain if independently established MRLs are  all harmonized with Codex?  
 
Answer:  
 
BPOM not only refers to the Codex, but also exposure consideration; international regulations from 
Australia, New Zealand, Malaysia, Brunei, EU, Japan, South Korea, China, Canada as a benchmark; as 
well as scientific j ustification.  
 
Page 122, Paragraph 3.148:  According to the Secretariat, Ministry of Marine Affairs and Fisheries 
(MOMAF) Regulation No. 41/2014 extends the list of live species banned from import from 30 to 
152 species.  The rationale for the ban is to preserve fish resources and their environment, and to 
protect human health.  
 
36. Please  clarify the basis of the inclusion of the additional 122 species. Please provide further 
information about the risk assessment us ed to identify the additional 122 species included in 
the list of live species banned from import.  
 
Follow -up Question:  
 
36. We look forward to Indonesia's response and explanation.   
 
Answer:  
 
The inclusion of additional 122 was identified through a scientific based Invasive Species risk assessment 
by the Indonesian MMAF and Indonesian Institute of Sciences (LIPI).  Species categorized as invasive 
species if fulfil one of these 10 behaviour categories of: 1) predator; 2) competitor; 3) dominating; 
4) quick reproduction cycle; 5) fast growing; 6) adaptive; 7) omnivore; 8) hybridizing and transferring 
genetic characteristics; 9) negative impact to fish health; and 10) negative impact to human health.  
 
Indonesia also have risk analysis mechanism in establ ishing the list, namely hazard identification, risk 
assessment, risk management, and risk communication.  
 
37. Please confirm that the criteria used to identify these species are based on existing criteria and 
guidelines  of international standard -setting bodies , such as OIE, IPPC and Codex.  
38. Please clarify if there is a process to review the list of live species banned from import.  If so, 
please  explain which regulatory body and/or bodies will perform the review and make a 
determination.  
 
Answer:  
 
36. The risk assessment analysis uses Convention on Biological Diversity (CBD), Invasive Species 
Specialist Group (http://www.issg.org), Office International des Epizooties ' (OIE), and 
www.fishbase.org as reference.  WT/TPR/M/401/Add.1  
 
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  37. The review process is conducted by MMAF and Indonesia n Institute of Sciences.  
 
Page 122, Paragraph 3.149 :  The Secretariat states that MOMAF Regulation No. 74/2016 covers 
quality control and safety for those imported fish products which are allowed and intended for human 
consumption. The Secretariat further states that Regulation No. 74/2016 "inter alia, sets out importer 
registration requirements; import permit requirements; labelling requirements; documentary 
requirements; quarantine, testing and sampling. "  
 
39. Please clarify that the requirements in MOMAF Re gulation No. 74/2016 are consistent with the 
guidelines , criteria, and recommendations of international standard setting bodies, such as OIE, 
IPPC and Codex.  
 
Answer:  
 
MOMAF Regulation No. 74/2016 on quality control and safety for fisheries products enteri ng the territory 
of Republic of Indonesia is in accordance and consistent with guidelines and recommendation of 
international standards such as OIE and Codex.  
 
Follow -up Question 39:   
 
The United States notes that Indonesia did not answer the question.  Please clarify that the requirements 
in MOMAF Regulation No. 74/2016 are consistent with the guidelines, criteria, and recommendations of 
international standard setting bodies, such as OI E, IPPC and Codex.  
 
Answer:  
 
As Indonesia has mentioned, the requirements in MOMAF Regulation No. 74/2016 are consistent with 
international standards.  
 
Page 122, Paragraph 3.151 :  According to The Secretariat, "all halal products sold on the Indonesian 
market must obtain certificates from the newly established Halal Products Certification Agency (BPJPH), 
under the Ministry of Religious Affairs.  Previously, certification was voluntary, and was undertaken by 
the Indonesian Ulema Council.  Since 2019, halal c ertification requirements have applied to food and 
beverages..."  
 
40. Please explain what the different phase in periods are for applying the new halal certification 
standards .   
 
Answer:  
 
In accordance with Article 232 para h Regulation of MoRA No. 26/2019, the transitional provision 
standard in the form of halal system documents will begin in three years starting October 2019.  
 
41. Please  identify all the agricultural and food products (including HS codes) that must meet the new 
halal certification stan dards.  
 
Answer:  
 
The provisions for the types of products are regulated in the Decree of the Minister of Religious Affairs  
No. 464/2020.  
 
42. Please  explain in -depth the differences between the old and new standards for "halal products".   
 
Answer:  
 
The previous standard was based on HAS 23000 set by LPPOM MUI. Currently, Indonesian Halal 
Standard is stipulated by the National Standardization Body as a standardization institution appointed 
by the government.  WT/TPR/M/401/Add.1  
 
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  3.3.6 Government  procurement  
3.3.6.2 Institutio nal and Regulatory Framework  
 
Page 133, Paragraph 3.188:  The Secretariat notes that PR No. 16/2018 mandates the use of 
domestic products in government procurement if there are providers offering goods or services with a 
local content plus corporate contribution value exceeding 40%.  
 
43. Please clarify what constitu tes a corporate contribution. Is this an investment requirement?  
 
Answer:  
 
Any activities on CSR can be said as corporate contribution.  
 
Follow -up Question 43:   
 
Thank you.  Could Indonesia please clarify, since any activities on corporate social responsib ility (CSR) 
can be deemed a corporate contribution, does Indonesia have any criteria or additional requirements 
for determining the value of the contribution?  
 
Answer:  
 
CSR only regulated in the Limited Liability Company Law and Government Regulation No. 47/2013 on 
Social and Environmental Responsibility of Limited Liability Companies. CSR is not an investment 
requirement nor there are additional requirements, CSR standards that apply generally to all companies, 
especially those related to social issues.  
 
44. Is the 40% value assessed through a combination of the total local content percentage of a good 
with a provider 's corporate contribution, or is the value 40% of each?  
 
Answer:  
 
The percentage value can be said is assessed through a combination of the total local content percentage 
of a good with a provider 's corporate contribution.  
 
3.3.7.2 Copyright  
 
Page 143, paragraph 3.226:   The Secretariat states that "new Law No. 28 of 2014 on Copyright 
entered into force in October 2014 " including subject matter "consisting of the economic right of the 
author or copyright holder to obtain economic benefit from his/her works; . . . consisting of economic 
rights of performers, phonogram producers, and broadcasting organizations; and traditi onal cultural 
expression and protected works, unprotected works and copyright exceptions and limitations. "  With 
respect to the economic rights of performers, please provide additional information, namely:  
 
45. Are there provisions under the new law to protect  against illegal camcording? If so, how is it 
enforced?  
 
Answer:  
 
That provision included in our law on copyright. Indonesia will significantly increase enforcement actions 
against IPR infringements, and devote sufficient resources within existing law enfo rcement entities, 
including specially trained personnel, and encourage creation or maintenance of specialized units with 
appropriate authority to focus primarily on combating piracy over the Internet, and promoting 
coordination between such law enforcement  entities. Special attention will be directed to the prosecution 
of criminal syndicates promoting IPR violations, counterfeit medicines, and notorious markets . These 
efforts will include:  
a. improved coordination among departments and agencies, including the National Inter -Ministerial IPR 
Task Force, Directorate General for Intellectual Property, Attorney General 's Office, Creative 
Economic Agency, and National Agency for Food and Drug Control;  WT/TPR/M/401/Add.1  
 
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  b. enforcement actions, including through public -private partnerships, to prevent and to eradicate 
counterfeiting, piracy (including software piracy and unauthorized cam -cording), and the 
circumvention of technological protection measures, and encouraging the imposition of penalties and 
sentences that deter further violations;  
c. unannounced raids of production facilities, retail outlets, and warehouses to detect, seize and, where 
appropriate, destroy goods that violate intellectual property rights; and  
d. the seizure and destruction of goods that viola te intellectual property rights and the equipment and 
materials used to produce them.  
 
The implementing regulation has not specifically addressed the issue.  
 
46. If the law does not contain provisions against illegal camcording, does Indonesia intend to adopt 
amendments to the law to cover such activities in the future? If so, is there a timeline?  
 
Answer:  
 
Illegal camcording becomes one of the provisions to address in our future regulation.  
 
Page 144, Paragraph 3.230:  The Secretariat notes that the Indo nesian "National Task Force on 
Tackling IPR Infringement remains valid; however, it is being reviewed with the aim of revitalizing the 
task force, " as "IP enforcement [in Indonesia] remains weak. "  Please provide additional information 
regarding the National Task Force on Tackling IPR Infringement, namely:  
 
47. What training and steps are being considered to "revitalize " the National Task Force and ensure 
that it adequately tackles intellectual propert y infringement to help increase Indonesia 's intellectual 
property enforcement efforts?   
48. With the growing presence of the digital world, how does the National Task Force plan to hold those 
accountable that disregard rights management information and techno logical protection measures, 
besides potentially blocking access to websites that infringe?  
 
Answer:  
 
47. Indonesia will significantly increase enforcement actions against IPR infringements, and devote 
sufficient resources within existing law enforcement enti ties, including specially trained personnel, 
and encourage the creation or maintenance of specialized units with appropriate authority to focus 
primarily on combating piracy over the Internet, and promoting coordination between such law 
enforcement entitie s. Special attention will be directed to the prosecution of criminal syndicates 
promoting IPR violations, counterfeit medicines, and notorious markets These efforts will include:  
a. improved coordination among departments and agencies, including the National Inter-Ministerial 
IPR Task Force, Directorate -General for Intellectual Property, Attorney General 's Office, Creative 
Economic Agency, and National Agency for Food and Drug Control;  
b. enforcement actions, including through public -private partnerships, to prev ent and to eradicate 
counterfeiting, piracy (including software piracy and unauthorized cam -cording), and the 
circumvention of technological protection measures, and encouraging the imposition of penalties 
and sentences that deter further violations;  
c. unann ounced raids of production facilities, retail outlets, and warehouses to detect, seize and, 
where appropriate, destroy goods that violate intellectual property rights; and  
d. the seizure and destruction of goods that violate intellectual property rights and the equipment 
and materials used to produce them.  
 
48. In terms of regulation, the Minister of Communication and Informatics has issued a Circular Letter 
No. 5/2016 on Limitation and Liability of Platform Provider and Merchants in Electronic Commerce 
in The Form of User -Generated Content. The government also issued Government Regulation 
No. 71/2019 on the Implementation of Electronic System and Transaction as the implementing 
regulation of Law No. 19 of 2016.  
 
The Government has Internet Sehat dan Aman (INSA N) Programme, one of its functions is to 
provide information to the public regarding how to use the internet, its use and its impacts.  WT/TPR/M/401/Add.1  
 
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  Page 146, paragraph 3.235 – 3.238:  The Secretariat states that "to implement provisions under the 
Customs Law, GR No. 20 of 2017 on Controlling Import or Export of Goods Suspected of Infringing or 
Derived from Intellectual Property Infringement was issued " and includes provision on "notice of 
suspension; exception of suspension; and termination of suspension. "  Please pro vide additional 
information on the operation of the customs laws. Specifically:  
 
49. When is a party subject to a notice of suspension versus an exception of suspension or a termination 
of suspension?   
 
Answer:  
 
A party is subject to notice of suspension when  there is a court order against it.  
 
50. If a party continues to import or export infringing goods, does Customs eliminate any of these 
options?   
 
Answer:  
 
Customs does not eliminate any of those option.  
 
51. How will/did Indonesia alter provisions of GR No. 20 o f 2017 after Indonesia ratified the Marrakesh 
Treaty in the beginning of 2020?   
 
Answer:  
 
Indonesia cannot speculate on possible future measures or policy changes.  
 
52. What happens if the "institution intending to facilitate access " does not obtain permission from the 
government?  
 
Answer:  
 
In principle, if the said institutions does not obtain the permission then in principle import or export can 
not be conducted.  
 
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.3 Financial services  
 
Page 199, Paragraph 4.194: The paragraph notes the OJK 's objectives for 2017 -22 include developing 
and conducting IT -based supervision of the financial services sector.  We recall that both OJK and Bank 
Indonesia issued measures during the review  period that appear to require data localization for a variety 
of financial services companies, including payments companies, insurance and reinsurance companies, 
and commercial banks.   We are aware that Indonesia 's overall policy with respect to data tran sfer and 
storage issues was revised in 2019 with the issuance of GR71, which allows all data, including financial 
services data, to be transferred and stored outside of Indonesia.    
 
53. Can you confirm that these regulations that required data localization is sued during the review 
period will be amended to conform with the overall policy of GR71?  
 
Answer:  
 
Even though GR71 allows electronic data and/or electronic systems to be located offshore, financial 
regulators (OJK and BI) have the right to regulate elect ronic data and electronic systems management, 
processing, and storage for financial sector (Article 21 (4) GR71). OJK has relaxed electronic systems 
offshoring requirements by issuing POJK No. 13/POJK.03/2020 which amends the previous offshoring 
requiremen ts found in the Application of Risk Management in the Use of Information Technology by 
Commercial Banks regulation issued in 2016 (POJK No.38/POJK.03/2016).  WT/TPR/M/401/Add.1  
 
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  Aligned with GR71, OJK also issued POJK 38/POJK.05/2020 which amends the previous POJK 
69/POJK.05/2 016 on the Business Conduct of Insurance Companies, Sharia Insurance Companies, 
Reinsurance Companies, and Sharia Reinsurance Company.  
 
Insurance companies can manage, process, and/or store Electronic Systems and Electronic Data in 
Indonesian territory and /or outside the territory of Indonesia by following the provisions and approval 
of OJK.  
 
Page 202, Paragraph 4.203:  "The review period saw a decrease in the total number of banks (from 
120 in December 2013 to 110 in December 2019), no change in the number of foreign -controlled banks 
(30), and a reduction in the number of branches of foreign banks, from 10 to 8. " 
 
54. To what do you attribute no change in the number of foreign -controlled banks and the reduction  in 
the number of branches of foreign banks o ver the review period?  
 
Answer:  
 
We encourage banks to do merger, consolidation and acquisition, especially for small banks, in order to 
solidify its capital and governance. However, during that period, the process of merger and consolidation 
solely depen ds on the market 's decision.  
 
One foreign bank branch closed purely due to business decisions and the other merged with an existing 
locally incorporated bank with the locally incorporated bank becoming the surviving entity.  
 
Page 207, Paragraph 4.215:  The Secretariat 's report mentions that reinsurance companies "must 
optimize the domestic capacity ".  We understand that Indonesia 's OJK issued Regulation No. 14 and 
OJK Circular Letter No. 31 in 2015, and that these measures require a 100 -percent mandatory  cession 
for reinsurance of simple risks (such as life, accident, auto, and health insurance policies) and a 
minimum of 25 -percent mandatory cession for reinsurance of non -simple risks (such as certain  property, 
casualty, and transport insurance policies) to be ceded to Indonesian domestic reinsurance 
companies.   We further understand that Indonesia reformed this mandatory cession policy in 2020 for 
purchase of reinsurance from companies headquartered in countries with whom Indonesia has a bilateral 
trade a greement.   
  
55. What changes  were made to the mandatory cession policy, and what is the timeline for the OJK to 
implement these changes?  How does the OJK intend to ensure that domestic and foreign 
stakeholders are aware of these changes?  
 
Answer:  
 
OJK Regula tion (POJK) No. 39/POJK.05/2020 concerning the Second Amendment to POJK No. 
14/POJK.05/2015 concerning Own Retention and Reinsurance. Amendment to POJK concerning Own 
Retention and Reinsurance has amended some articles regarding the compulsory of domestic 
reinsurance as follows:  
a. Insurance companies can obtain reinsurance support for simple risk from foreign reinsurer after 
31 December 2020, without any percentage limitation;  
b. Insurance companies can get reinsurance support for a non -simple risk from foreign reinsurers after 
31 December 2022, without any percentage limitation;  
c. The provision regarding reinsurance from foreign reinsurers, as stated in (i) and (ii), can only be 
applied if the insurers obtains reinsurance from foreign reinsurers domiciled in partner countries 
have a bilateral agreement with Indonesia.  
 
4.4.7 Distribution services with a specific focus on e -commerce  
Page 221, Paragraph 4.267:  The Secretariat notes that, "All business actors (domestic and foreign) 
must obtain a business licence in order to carry out e -commerce business activities in Indonesia. "  
Paragraph 4.269 indicates that all retail sale through mail order and the Internet must be conducted 
through a joint venture (JV).  
 WT/TPR/M/401/Add.1  
 
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  56. Is the required business license for e-commerce the same license that may be required of all 
retailers, or is it a license specific to e -commerce?  Are the requirements for these licenses 
non-discriminatory?  
 
Answer:  
 
Each retailer is required to have a Trading Business License (SIUP), but th e Indonesian Standard 
Business Classification Number (KBLI) for online and offline traders is different. This is because each 
merchant is subject to different rules, for example, offline retail merchants need to pay attention to the 
rules in setting up a s hop, while online merchants need to maintain the confidentiality of customer data.  
 
57. Which e -commerce activities can a foreign business actor provide without having to establish a JV?   
 
Answer:  
 
Foreign business actors are required to appoint representativ es domiciled in the jurisdiction in Indonesia 
if they meet certain criteria, namely having made transactions with more than 1 ,000 (one thousand) 
consumers and/or have delivered more than 1 ,000 (one thousand) packages to consumers.  
 
Page 221, Table 4.22:  The table implies that supermarkets larger than 1 ,200 square meters and 
department stores larger than 2 ,000 square meters are not subject to JV requirements.  It also indicates 
that apparel and shoe stores must be domestically owned.  
 
58. Is it correct that very large supermarkets and department stores can be fully foreign owned?  
 
Answer:  
 
Based on the Attachment to Presidential Regulation Number 44 of 2016, all foreign -owned retail that 
are allowed to operate in Indonesia are supermarket s with a sales floor area of more than 1,200 m2, 
department stores with a sales floor area of more than 2,000 m2 and hypermarkets (large 
supermarkets, i.e., sales floor above 5,000m2).  
 
59. Are single -brand retailers of apparel and shoes required to be domesti cally owned?  
 
Answer:  
 
Foreign single -brand retailers of apparel and shoes can also conduct business in Indonesia.  
 
WTO TPR: Indonesia  
Questions based on the Government Report (WT/TPR/G/401)  
4 TRADE AND TRADE RELATED POLICY  
 
Page 16, paragraph 4.7:   Indonesia states that "for the upcoming years from 2020 to 2024, the 
Government has set its policies toward strengthening agriculture human resources; improving 
agriculture modernization; optimizing utilization of land resources for food; and strengtheni ng 
agriculture competitiveness and export. " 
 
60. Please explain  what policies are being established for strengthening agricultural competitiveness 
and exports.  
 
Answer:  
  
For that purposes, Indonesia has issued the Minister of Agriculture Regulation No.19/2019  
 
Page 17, Paragraph 4.16 :  The government of Indonesia notes that is has specifically targeted the 
metal industry for additional development.  It notes that it provides "incentives " for investment in 
smelters, and that is expects domestic steelm aking capacity to increase by 42% in the next five years 
(from 12 million to 17 million metric tons).  WT/TPR/M/401/Add.1  
 
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  61. What specific incentives is Indonesia providing to encourage or enable investment in new 
metal -making capacity in the country?  
 
Answer:  
 
The incentives are generally provided to all sectors and not to specific sector.  
 
62. Indonesia 's exports of steel have increased significantly in recent years.  How much of the new 
steelmaking  capacity that Indonesia expects will come online in the next five year s is targeted 
at producing steel for export, rather than for domestic consumption?  
 
Answer:  
 
The Government of Indonesia does not limit or target certain amount of the new steelmaking capacity 
for a mere export or domestic consumption purpose. Instead, it is up to the business decision of related 
industries.   
 
Page 18, Paragraph 4.28:  According to the GOI, Presidential Regulation (Perpres) No. 48/2016 
defined the type of staple food that must be maintained for Public Stockholding (PSH) in terms of supply 
availability and price stability, namely rice, corn, soybean, sugar, cooking oil, wheat flour , red onion, 
chili, beef, chicken meat, and eggs. The United States would like to learn more about how Presidential 
Regulation (Perpres) No. 48/2016 operates.  
 
63. Please explain in more detail how the GOI determines which products need to be maintained for 
PSH purposes by Perum BULOG and any other state -owned entities.  
64. Please explain how the quantities and prices of the products maintained are determined, and 
when and how this information is re -assessed by the government.  
 
Answer:  
 
63. The GOI determines which products need to be maintained for PSH based on Technical Minist er's 
Instruction  
64. The quantities and prices are determined based on The Coordination Meeting Chaired by The 
Coordinating Minister of Economics and the prices of product especially rice is based on The 
Presidential Instruction No. 5 of 2015.  WT/TPR/M/401/Add.1  
 
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  COLOMBIA  
RESUMEN  
 
La Secretaría manifestó en el párrafo 12 que "sigue habiendo prohibiciones, restricciones y licencias de 
importación, entre otros fines, para proteger los intereses nacionales relacionados con la moral pública, 
la salud y la vida de las personas, los recursos naturales, el medio ambiente, la utilización de productos 
de fabricación local, la protección y el desarrollo de las ramas de producción nacionales, y para hacer 
cumplir las obligaciones contraídas en virtud de acuerdos internacional es. Ha variado el alcance de las 
prohibiciones de importación, que pasó de 143 partidas a nivel de 10 dígitos del SA (2013) a 124 partidas 
a nivel de 8 dígitos del SA (febrero de 2020). Se trataba en su mayor parte de productos industriales. 
La cobertura d e las autorizaciones de licencias de importación pasó de 30 a 40 categorías de productos, 
o de 2.060 líneas arancelarias a nivel de 8 dígitos (2012) a 3.308 líneas a nivel de 10 dígitos del SA 
(julio de 2020). En determinados casos, las autorizaciones de i mportación de algunos productos siguen 
sujetas a restricciones cuantitativas por motivos relacionados con el uso (por ejemplo, de carne de 
canales y horticultura), la compra de productos nacionales (como leche y sal), la autosuficiencia (por 
ejemplo, arroz , azúcar y horticultura) y el comercio de Estado (como maíz forrajero y abonos) ". 
 
1. ¿Podría el Gobierno de Indonesia explicar los parámetros que tuvo en cuenta para aumentar el 
número de partidas arancelarias de prohibida importación en febrero de 2020, que  según el párrafo 
indica fueron mayormente de productos industriales?  
 
2. ¿Podría el Gobierno de Indonesia explicar los parámetros que tuvo en cuenta para aumentar el 
número de partidas arancelarias cubiertas por licencias de importación? ¿Cuáles fueron las 
10 categorías de productos adicionales cubiertas por licencias de importación?  
 
Answer for Question No. 1 and 2:  
 
The increase of tariff rates in this period due to the emerging differences on applied tariff after the 
transposition of HS Classificatio n from HS 2012 to HS 2017.  
 
The government of Indonesia take careful steps in establishing import licenses. Such measures in tariff 
items covered by import licenses will be taking into account the domestic and international markets 
situation. Indonesia committed with the WTO agreemen t in the import licenses.  
 
En el párrafo 23 se indicó que ley de Patentes de 2016 introdujo varias disposiciones nuevas, entre ellas 
las siguientes: (…) Con respecto a la observancia, entre las novedades positivas cabe mencionar la 
promulgación de reglame ntos para bloquear los sitios web que infringen la propiedad intelectual y el 
establecimiento de un servicio en línea para comunicar las infracciones de la propiedad intelectual.  
 
3. Podría Indonesia informar con mayor detalle cómo funciona el procedimiento y ¿Qué resultados se 
han obtenido desde la implementación de éste?  
 
Answer:  
 
Indonesia has established an online platform facility to report IP Infringement. For information, please 
visit https://e -pengaduan.dgip.go.id/ . 
 
INFORME DE LA SECRETARÍA - Documento WT/TPR/S/401  
2.2.2 Objetivos de política comercial y relacionada con el comercio  
 
En el párrafo 2.11 se plantea que "durante el período objeto de examen, la visión de la política comercial 
y de inversiones de Indonesia se estableció en el contexto más general del Plan Rector de Desarrollo de 
la Industria Nacional 2015 -2035. El objetivo del Plan Rector es promover la coop eración industrial 
internacional con el fin de: proteger y aumentar el acceso a los mercados para los productos de la 
industria local; permitir el acceso a recursos industriales para potenciar la productividad y la 
competitividad de la industria local; aum entar el grado de integración de la industria local en la cadena 
de suministro mundial; e intensificar la cooperación en materia de inversión industrial para desarrollar WT/TPR/M/401/Add.1  
 
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  la industria local. El desarrollo de la cooperación industrial internacional tiene por  objeto aumentar el 
número de países a los que se exportan productos industriales, mejorar el acceso de la industria nacional 
a recursos industriales mediante la cooperación técnica, fomentar la utilización de las redes de cadenas 
de suministro mundiales y  aumentar el número de foros de inversión industrial en países extranjeros ". 
 
4. Podría el Gobierno de Indonesia precisar el alcance del Plan Rector de Desarrollo de la Industria 
Nacional 2015 -2035 (RIPIN), especialmente en relación con el objeto de "conve rtir a la industria nacional 
en un pilar y motor de la economía nacional ". En particular, ¿Este plan afecta en alguna medida las 
obligaciones contraídas por Indonesia bajo el artículo XI del GATT?2.2.3 Leyes y reglamentos 
comerciales.  
 
Answer:  
 
The Masterplan for the Development of the National Industry 2015 -2035 will be inline with WTO 
Provision especially with the obligation under GATT Article XI related to General elimination of 
Quantitative restriction.  
 
En el párrafo 2.15 se indica "entre 2015 y 2018 se introdujeron 16 paquetes de políticas económicas 
(EPP), que siguen en curso (cuadro 2.2). Cada uno de ellos tiene una fase de aplicación diferente y se 
centra en mejorar el clima de inversión, aumentar la competitividad y acelerar el desarro llo de la 
infraestructura. Los EPP están a cargo de un Equipo de Tareas para la Aceleración y la Eficacia de la 
Aplicación de las Políticas Económicas, integrado por cuatro grupos de trabajo y una unidad de apoyo y 
dirigido por el Ministerio Coordinador de  Asuntos Económicos (cuadro 2.3). Entre sus objetivos figuran 
la armonización de los reglamentos, la simplificación del proceso burocrático y el cumplimiento de la 
ley. Las políticas de desreglamentación tienen por objeto reducir la duplicación, armonizar los 
reglamentos y eliminar incoherencias. Los EPP comportan la revisión y/o anulación de 225 reglamentos 
(54 a nivel presidencial y 171 a nivel ministerial). Según las autoridades, las medidas relacionadas con 
el comercio previstas en esos paquetes incluye n: el suministro de datos de importación y exportación a 
los ministerios e instituciones a través de la Ventanilla Única Nacional de Indonesia (INSW); la 
disponibilidad de información de partes interesadas específicas en el portal de la INSW en el marco de l 
Sistema Único de Gestión de Riesgos de Indonesia; la generalización del uso de formularios de 
declaración de importaciones y exportaciones y su incorporación al portal de la INSW para aplicar la 
INSW en 21 oficinas de inspección y servicios de aduanas e impuestos del país con el fin de mejorar la 
eficiencia de utilización y la eficacia de la supervisión.  
 
5. Agradecemos a Indonesia ampliar información sobre las ventajas y los beneficios que se han 
obtenido con un Sistema Único de Gestión de Riesgos.  
 
Answ er: 
 
Indonesia introduce Risk Management System for the imported product into 3 (three) categories, green, 
yellow and red line. The application of the risk management system will speed up the movement of 
goods in the seaport and will reduce the cost and pr ocedure for the importers.  
 
En el párrafo 2.19 se indica que "los objetivos de Indonesia en materia de buenas prácticas de 
reglamentación son los siguientes: coordinación interna de la actividad de elaboración de normas 
(gestión de la reforma normativa y c oordinación con los funcionarios encargados del comercio y la 
competencia); evaluaciones del impacto de la reglamentación (elegir mejores opciones de política, 
estableciendo un marco sistemático y estable para evaluar el posible impacto de las acciones del  
Gobierno, incluido el impacto en el comercio); y mecanismos de consulta pública destinados a mejorar 
la transparencia (tales como la publicación de observaciones y otras prácticas que permitan un mayor 
acceso a la información y la mejora de la calidad de los mecanismos de consulta). Según las autoridades, 
se han implantado buenas prácticas de reglamentación en varios ministerios/organismos pertinentes 
con los siguientes instrumentos: Instrucción Presidencial Nº 7/2017 sobre la adopción, supervisión, 
vigila ncia y aplicación de políticas en los órganos ministeriales y gubernamentales; Reglamento 
Nº 40/2017 del Ministro de Industria sobre las Directrices para la Elaboración de Reglamentos en el 
Ministerio de Industria; Reglamento Nº 123/PMK.01/2012 del Ministr o de Hacienda y Circular 
Nº SE-3/MK.01/2016 del Ministerio de Hacienda; Reglamento Nº 9/2016 del Organismo Nacional de WT/TPR/M/401/Add.1  
 
- 94 - 
 
  Normalización sobre el Procedimiento de Elaboración de Leyes en el Organismo Nacional de 
Normalización de la República de Indonesia; y Reglamento Nº 6/2018 del Ministro de Planificación 
Nacional sobre las Normas para la Adopción de Decisiones ". 
 
6. ¿Para qué fecha tienen estimada la expedición de los dos proyectos de ley, a saber: Ley General 
de Creación de Empleo, y Ley Gene ral Tributaria?  
 
Answer:  
 
The Job Creation law and the general tax law is expected to be enforce at the end of 2020 after the 
implementing regulation is signed by the President.  
 
2.2.3 Leyes y reglamentos comerciales  
 
En el párrafo 2.19 se indica que "los objetivos de Indonesia en materia de buenas prácticas de 
reglamentación son los siguientes: coordinación interna de la actividad de elaboración de normas 
(gestión de la reforma normativa y coordinación con los funcionarios encargados del comercio y la 
competencia); evaluaciones del impacto de la reglamentación (elegir mejores opciones de política, 
estableciendo un marco sistemático y estable para evaluar el posible impacto de las acciones del 
Gobierno, incluido el impacto en el comercio); y mecanismos de c onsulta pública destinados a mejorar 
la transparencia (tales como la publicación de observaciones y otras prácticas que permitan un mayor 
acceso a la información y la mejora de la calidad de los mecanismos de consulta). Según las autoridades, 
se han implan tado buenas prácticas de reglamentación en varios ministerios/organismos pertinentes 
con los siguientes instrumentos: Instrucción Presidencial Nº 7/2017 sobre la adopción, supervisión, 
vigilancia y aplicación de políticas en los órganos ministeriales y gub ernamentales; Reglamento 
Nº 40/2017 del Ministro de Industria sobre las Directrices para la Elaboración de Reglamentos en el 
Ministerio de Industria; Reglamento Nº 123/PMK.01/2012 del Ministro de Hacienda y Circular 
Nº SE-3/MK.01/2016 del Ministerio de Hacienda; Reglamento Nº 9/2016 del Organismo Nacional de 
Normalización sobre el Procedimiento de Elaboración de Leyes en el Organismo Nacional de 
Normalización de la República de Indonesia; y Reglamento Nº 6/2018 del Ministro de Planificación  
Nacional sobre las Normas para la Adopción de Decisiones ". 
 
7 ¿Qué normas adicionales se están tramitando actualmente para complementar las ya implantadas 
en buenas prácticas de reglamentación, expedidas por varios ministerios/organismos pertinentes?  
 
Answe r: 
 
In order to achieve good regulatory practice, Government of Indonesia performs, among others, 
coordination among governmental and non -governmental stakeholders; regulatory impact assessment; 
and public consultation procedures to improve transparency.  
 
2.3 Acuerdos y arreglos comerciales   
2.3.1 OMC  
2.3.1.3 Notificaciones  
 
En el párrafo 2.29 se informa que "durante el período objeto de examen, Indonesia presentó varias 
notificaciones a la OMC. Del 1 de enero de 2013 a agosto de 2020, sus notificaciones guardaban relación 
con las disposiciones del Acuerdo sobre la Agricultura (40), el Acuerdo sobre Subvenciones y Medidas 
Compensatorias (13), el Acuerdo sobre la Aplicación de Medidas Sanitarias y Fitosanitarias (81), el 
Acuerdo sobre Obstácu los Técnicos al Comercio (79), el Acuerdo relativo a los Acuerdos Comerciales 
Regionales (3) y el Acuerdo sobre Procedimientos para el Trámite de Licencias de Importación (38) 
(cuadro A2.1). No obstante, hay notificaciones pendientes en esferas como las de  las medidas en 
materia de inversiones relacionadas con el comercio (MIC), y las restricciones cuantitativas. En abril de 
2020, las autoridades indicaron que ya se había presentado una notificación relativa a las normas de 
origen pero que todavía no se hab ía registrado en la Base de Datos de la OMC; en lo concerniente a las 
relativas a las MIC y la inspección previa a la expedición, todavía se estaban examinando en los 
Ministerios competentes ". 
 WT/TPR/M/401/Add.1  
 
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  8 ¿Cuenta Indonesia con un procedimiento que permita revisar las  notificaciones previstas de medidas 
sobre Obstáculos Técnicos al Comercio OTC, por otros países?   
 
Answer:  
 
Review related to the notification of WTO Member policies is carried out through a meeting of the related 
Working Group at the National Committee o n Technical Barriers to Trade involving government and 
business associations.  
 
9. De acuerdo con el Informe de Gobierno, Indonesia ha venido introduciendo medidas encaminadas 
a facilitar el clima de inversión, por ejemplo, a través de la reducción de los tiempos para el trámite de 
licencias y la concesión de las mismas en línea (Sección  2.2 "Mejora del clima de inversión ", documento 
WT/TPR/G/401). No obstante, y de acuerdo con el Informe de la Secretaría, Indonesia continúa 
ocupando un lugar relativamente bajo en los rankings internacionales sobre facilidad para hacer 
negocios. Entre tan to, en septiembre de 2020 Indonesia se unió formalmente a la Iniciativa Conjunta 
sobre Facilitación de las Inversiones para el Desarrollo (Joint Statement on Investment Facilitation for 
Development – JSI) que viene negociándose en el marco de la OMC. ¿Cómo  visualizaría Indonesia que 
la negociación de la referida iniciativa podría ser una herramienta que ayude a todos los participantes 
de la misma a facilitar la inversión extranjera, que a la vez permita a los gobiernos preservar los espacios 
regulatorios qu e consideren necesarios en sus políticas internas de atracción de inversión extranjera?  
 
Answer:  
 
The Indonesian Government has enacted Law No. 11 of 2020 or Omnibus Law on Job Creation On 
2nd November 2020. This Omnibus Law revised number of important Art icles from 77 existed Laws with 
job creation as its main purpose by improving "ease of doing business (EODB)". The implementing 
regulations of this Omnibus Law are aimed, among others, to simplify & harmonize investment 
regulations, to banish red tapes, an d to reform the investment licensing procedures with the improved 
risk-based Online Single Submission (OSS) system.  
 
10. De acuerdo con el Informe de la Secretaría, Indonesia cuenta actualmente con 24 tratados 
bilaterales de inversión. A su vez, en 2014 se introdujeron normas más estrictas para los inversionistas 
extranjeros en algunos sectores. ¿Podría Indonesia detallar cómo la introducción de esas normas más 
estrictas se hizo de forma tal que fuera consistente con los compromisos asumidos en virtu d de sus 
tratados bilaterales de inversión así como de sus ACRs vigentes?  
 
Answer:  
 
Currently Indonesia have only 21 BIT, while the others 3 BIT (Ukraine, Tunisia, dan Uzbekistan) has not 
been ratified by the parties. Indonesia doesn 't apply any new retroa ctive investment policy to the 
investors that have been operated in Indonesia and ensure the application of the principle related to 
grandfathering clause in the investment negative list to ensure business certainty and its operation in 
Indonesia.  
 
11. Podría el Gobierno de Indonesia profundizar sobre las actividades económicas explícitamente 
cerradas en Indonesia a la Inversión Extranjera. Especialmente en relación con la industria metalúrgica, 
donde se otorgan incentivos a la inversión en fundiciones m etálicas, especialmente las que apoyan una 
mayor utilización de productos nacionales ¿Cómo estas disposiciones resultan compatibles con el Artículo 
III del GATT y las disposiciones del acuerdo TRIMS?  
 
Answer:  
 
With regard to the support a greater use of national products. the policy was being put in place either 
in relation to government procurement policy, in relation to policies which involve fulfilling the needs to 
maintain all of Indonesian people 's welfare and their life necessities, or in relation t o policies which 
involve state -managed strategic resources.  
 
 WT/TPR/M/401/Add.1  
 
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  3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
 
En el párrafo 3.6 se señala que "en 2014 se promulgó una ley sobre la normalización y evaluación de la 
conformidad que, entre otras cosas, abarc a la metrología. Varios Miembros han planteado 
preocupaciones comerciales específicas sobre la evaluación de la conformidad en relación con medidas 
aplicadas a diversos alimentos elaborados y sin elaborar (en particular con respecto a las prescripciones 
halal), juguetes, productos cerámicos, teléfonos móviles y computadoras, equipos de banda ancha y 
bebidas alcohólicas. Se han introducido nuevos requisitos de etiquetado. Durante el período objeto de 
examen, las principales novedades en el ámbito sanitario y  fitosanitario han sido la entrada en vigor de 
nuevas leyes sobre la cuarentena de animales, peces y plantas; los servicios ganaderos y la salud 
animal; la garantía de los productos halal; la protección y el empoderamiento de los agricultores y 
ganaderos; y la modificación de la Ley de los Cultivos de Plantación. Las medidas sanitarias y 
fitosanitarias sobre la carne de bovino y de pollo y los productos de pollo, así como sobre los productos 
del reino animal y vegetales/hortícolas han motivado preocupacione s de los Miembros de la OMC en el 
Comité MSF y/o en procedimientos de solución de diferencias ". 
 
12 ¿La ley promulgada en el 2014 define la forma como debe establecerse el procedimiento de 
evaluación de la conformidad en los reglamentos técnicos?, y ¿Qué infr aestructura de la calidad 
tienen para hacerlo?   
 
Answer:  
 
Law No. 20/2014 Article 24 and 36, in general, regulates the mandatory SNI and Conformity Assessment 
Procedures. In addition, the conformity assessment procedures are conducted by conformity assessment 
bodies accredited by the National Accreditation Committee (KAN).  
 
13 ¿Cuentan con una infraestructura de la calidad suficientemente robusta para evaluar la conformidad 
de todos los reglamentos técnicos?   
 
Answer:  
 
Based on the Procedures  of Mandatory Indonesian National Standard, the availability of a conformity 
assessment body (CAB) is a prerequisite when formulating technical regulation for mandatory 
Indonesian National Standard.  
 
14 ¿Aceptan certificados de conformidad obtenidos en el ext erior?, en caso afirmativo ¿bajo qué 
condiciones lo hacen?  
 
Answer:  
 
Indonesia accepts the said certificate as long as it is issued by Conformity Assessment Body (CAB) that 
has been accredited by Accreditation Body (AB) or has MRA/MLA in ILAC and IAF.  
 
15 ¿Tienen ARM (acuerdos de reconocimiento mutuo) firmados y vigentes? ¿Con qué países tienen esos 
ARM?  
 
Answer:  
 
Under the ACCSQ, Indonesia has 3 MRAs in force:  
1. ASEAN Sectoral MRA for Inspection and Certification Systems on Food (PFPWG);  
2. ASEAN Sectoral MRA -Bio Equivalence study report of generic medicinal products;  
3. ASEAN Sectoral Mutual Recognition Arrangement for Electrical and Electronic Equipment;  
 
With regard to the acceptance of halal certificate, BSN i.e., KAN has a MRA with Emirates Authority for 
Stand ardization& Metrology (ESMA).  
 
16 ¿Requieren organismos acreditados o solo designados?   
 WT/TPR/M/401/Add.1  
 
- 97 - 
 
  Answer:  
 
Based on Law No. 20/2014 Article 34, all conformity assessment activities are conducted in accordance 
with the requirements of international competency recognize d at the international level. All conformity 
assessment activities such as testing, inspection, and certification are conducted by CAB accredited by 
the National Accreditation Committee (KAN).  
 
17 ¿Aplican alguna norma ISO para evaluar la conformidad?  
 
Answer:  
 
Indonesia applies ISO standards such as ISO IEC 17021, ISO IEC 17025, ISO IEC 17065, ISO IEC 
17020.  
 
3.1 Medidas que afectan directamente a las importaciones  
3.1.1 Procedimientos y requisitos aduaneros y valoración en aduana  
3.1.1.1 Procedimientos aduaneros  
 
En el párrafo 3.11 se platea que "durante el período objeto de examen, de conformidad con sus 
compromisos en materia de facilitación del comercio en el ma rco de la OMC, Indonesia emprendió varias 
iniciativas (véase infra), como las siguientes: la aceptación del Acuerdo sobre Facilitación del Comercio; 
la puesta en marcha del Programa de Operadores Económicos Autorizados; la política de supervisión de 
las im portaciones tras el cruce de la frontera; la participación en la Ventanilla Única de la ASEAN; y la 
integración del Sistema Único de Gestión de Riesgos de Indonesia en la plataforma de la Ventanilla 
Única Nacional de Indonesia ". 
 
18. ¿Cómo funciona la inte gración, entre la Ventanilla Única de Indonesia con la de la Asociación de 
Naciones del Sudeste Asiático (ASEAN)?  
 
Answer:  
 
ASEAN has a Single Window site which can be accessed on the following link asw.asean.org. The 
Indonesian National Single Window can be accessed through the ASEAN site.  
 
19. ¿Cómo es la integración del Sistema Único de Gestión de Riesgos de Indonesia en la plataforma 
de la Ventanilla Única Nacional de Indonesia?.  
 
To be able to integrate risk management in the Indonesian Nati onal Single Window, three stages of the 
Indonesia Single Risk Management process are needed, namely:  
a. risk implementation in each ministry/institution participating in Indonesia National Single Window;  
b.  collecting all values for each risk area of conc ern from all ministries/agencies to the Indonesia 
National Single Window portal, to be combined as a single risk reference for each risk area;  
c.  carrying out normalization/harmonization based on risk variance on the risk value between 
ministries/agencies  from each risk area, to become a shared risk value  
 
20. Se menciona que la ventanilla única de indonesia permite la presentación única de documentos 
aduaneros y solicitudes de licencias comerciales, el pago de derechos, la tramitación sincronizada y la 
adopción de las decisiones finales por la Administración de Aduanas. ¿Puede Indonesia ampliar 
información si todas las entidades inherentes al proceso tienen interoperabilidad en la Ventanilla Única 
para estos procesos?  
 
Answer:  
 
Under the National Single Window, all the related ministries/government agencies ' online 
registration/licensing system are integrated and interoperable with one another.  
 WT/TPR/M/401/Add.1  
 
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  Requisitos de documentación  
 
En el párrafo 3.17 la Secretaria informa que  "La Ventan illa Única Nacional de Indonesia (INSW) 
(www.insw.go.id), establecida en 2007, sigue permitiendo, entre otras cosas, la presentación única de 
documentos aduaneros y solicitudes de licencias comerciales, el pago de derechos, la tramitación 
sincronizada y la  adopción de las decisiones finales por la Administración de Aduanas. Desde el 31 de 
mayo de 2018, el uso del sistema INSW es obligatorio en virtud del PR Nº 44/2018 sobre la Ventanilla 
Única Nacional de Indonesia, que ha ampliado la cobertura del sistema a los documentos de cuarentena 
y portuarios (marítimos y aéreos). Ahora integra todos los documentos aduaneros, de cuarentena, de 
licencia, portuarios y aeroportuarios y otros documentos relativos a la exportación y/o la importación 
que deben presentar los  usuarios de los servicios a los ministerios e instituciones pertinentes. En 2018 
se creó en el sitio web de la INSW una base de datos única con información sobre las partes 
interesadas… ".  
 
21. Se hace mención de la integración de los documentos de cuarentena y portuarios (marítimos y 
aéreos).  ¿Puede Indonesia ampliar la información cuáles documentos se integraron y cómo ha 
impactado a los diferentes usuarios?  
 
22. ¿Cuánto tiempo tarda un organismo o una entidad en emitir un visto bueno y aprobar una li cencia 
de importación?  
 
23. ¿Qué entidades participan en la Ventanilla Única Nacional de Indonesia?  
 
Answer:  
 
21. The Integration of quarantine and port documents are intended to speed up and simplifying the 
import procedure. This requirements only applies to the importation of goods related to SPS 
measures.      
22. As long as the document required for the application of import license is complete and correct, the 
process wil take approximately 10 days.  
23. The authority who handle the document required on import and exp ort (National Single Window 
Body) is under the Ministry of Finance.  
 
3.18. A nivel regional, Indonesia participa en la Ventanilla Única de la ASEAN (ASW), una iniciativa 
regional acordada en 2005 que conecta e integra las ventanillas únicas nacionales de l os Estados 
miembros de la ASEAN, y que comenzó a funcionar a principios de 2020. El objetivo de la ASW es 
acelerar el despacho de las mercancías y promover la integración económica de la ASEAN permitiendo 
el intercambio electrónico de documentos relacionad os con el comercio transfronterizo entre los Estados 
miembros de la ASEAN. El 1 de enero de 2018 se inició la fase de entrada en funcionamiento de la ASW 
(ASW Live Operation) en cinco países, a saber, Indonesia, Malasia, Singapur, Tailandia y Viet Nam; el 
30 de diciembre de 2019, todos los Estados miembros de la ASEAN (Brunei Darussalam, Camboya, 
Indonesia, República Democrática Popular Lao, Malasia, Myanmar, Filipinas, Singapur, Tailandia y 
Viet Nam) se habían sumado a la fase de funcionamiento, en la cual  la concesión del trato arancelario 
preferencial se basa en la presentación del certificado electrónico de origen (formulario electrónico D 
del Acuerdo sobre el Comercio de Mercancías de la ASEAN (ATIGA)) a través de la ASW. Actualmente 
se está trabajando para que en un futuro próximo puedan intercambiarse más documentos a través de 
la ASW. Es probable que se puedan presentar a través de la ASW los siguientes documentos, siempre 
que los Estados miembros de que se trate estén listos: documento de declaración  en aduana de la 
ASEAN, certificado fitosanitario electrónico, certificado zoosanitario electrónico y certificado de inocuidad 
de los alimentos electrónico.  
 
24. En consideración a que la Ventanilla Única de la ASEAN (ASW), comenzó a funcionar a principios de 
2020; agradecemos a Indonesia ampliar información sobre las buenas prácticas y las dificultades 
que ha presentado la implementación de la misma.  
 
25. Se menciona que a un futuro se busca la integración del documento de declaración en aduana de la 
ASEAN, certif icado fitosanitario electrónico, certificado zoosanitario electrónico y certificado de 
inocuidad de los alimentos electrónico. ¿Puede Indonesia ampliar información sobre cuáles son las WT/TPR/M/401/Add.1  
 
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  dificultades para que no se haya realizado la interoperabilidad para lo s procesos citados cuando 
comenzó a funcionar la ventanilla única?  
 
Answer for Question No. 24 and 25:  
 
The challenges are in the process of coordination across government bodies, manpower and financial 
resources to implement single window in regional economies.  
Cooperación internacional, evaluación y otras cuestiones  
 
En el párrafo 3.28 se plante que "desde su anterior examen y antes de la introducción de las recientes 
iniciativas de facilitación del comercio, Indonesia ha perdido muchos puestos en varios índices sobre la 
facilidad para comerciar. Según los datos del Informe Doing Business del Banco Mundial, en 2019 
Indonesia ocupó el 116º puesto entre 190 economías en lo que respecta a la facilidad del comercio 
transfronterizo, por debajo  de varias economías de la región de Asia Oriental y el Pacífico (15º entre 
25 economías) y del 54º puesto (entre 189 economías) que había ocupado en 2013.39 Además, ocupó 
el 70º puesto entre un total de 136 economías en el Índice de Facilitación del Comer cio 2016 del Foro 
Económico Mundial, frente al 58º puesto entre 138 economías de 2014. En cuanto al acceso a los 
mercados internos, ocupó los puestos 30º y 20º, respectivamente. En términos de eficiencia y 
transparencia de la administración de las frontera s, ocupó los puestos 79º y 69º, respectivamente. 
Según los datos del Índice Doing Business 2019 del Banco Mundial, para importar un envío de 
mercancías (partes de automóviles) eran necesarias en promedio 106 horas para los trámites 
documentales y 99 horas para los trámites en la frontera, con un costo de USD 164 y USD 383, 
respectivamente, y hacían falta nueve documentos. En 2013, la importación de un envío requería ocho 
documentos y 23 días y costaba USD 660. Según la evaluación realizada en 2015 por el Fo ro Económico 
Mundial, los procedimientos de importación siguen siendo gravosos, si bien Indonesia ha logrado 
algunas mejoras en cuanto a la previsibilidad de esos procedimientos tras la modernización de las 
funciones esenciales de la INSW. La infraestructu ra era también un obstáculo al comercio debido a la 
geografía del país; aunque Indonesia ocupaba un buen puesto en términos de conectividad 
aeroportuaria, las tasas de conectividad a Internet seguían siendo relativamente bajas para la región. 
Al mismo tiem po, se indicaba que, en 2015, los factores más problemáticos para la importación eran: 
la corrupción en la frontera; los obstáculos arancelarios y no arancelarios; el alto costo o las demoras 
causadas por el transporte nacional y/o internacional; las presc ripciones técnicas internas y normas; y 
los procedimientos de importación gravosos.  
 
26. Podría Indonesia compartir información sobre las mejoras que se han realizado a las funciones 
de la Ventanilla Única Nacional. ¿Cuáles son los organismos que emiten vistos  buenos previos a 
las importaciones, en la Ventanilla Única Nacional de Indonesia?  
 
Answer:  
 
Currently, the INSW system already integrated with all the ministries. Indonesia is committed to improve 
INSW system in order to boost bussines activity. The Institution who manage the INSW system is 
National Single Window Body.  
 
3.1.4. Otras cargas que afectan a las importaciones  
 
En el párrafo 11 del Resumen se informa que "durante el período objeto de examen, hubo novedades 
en Indonesia en lo que respecta a la facilitación del comercio, entre ellas: la aceptación del AFC de la 
OMC en 2017; la puesta en marcha del Programa de Operadores Económicos Autorizados y de una 
política de supervisión de las importaciones tras el cruce de la frontera; la participación e n la Ventanilla 
Única de la ASEAN (ASW); y la integración del Sistema Único de Gestión de Riesgos de Indonesia en la 
plataforma de la Ventanilla Única Nacional de Indonesia… Además de los derechos de aduana, las cargas 
relacionadas con las importaciones y los impuestos directos internos, existe un impuesto en origen para 
las importaciones, cuyos tipos se aumentaron en 2018; en 2016, los derechos portuarios parecían ser 
mucho más elevados para las rutas internacionales que para las rutas internas ". 
 
Por otra  parte, en el párrafo 3.54 se señala que "además de los derechos de aduana, las importaciones 
siguen sujetas al impuesto en origen, el IVA, el impuesto sobre los productos de lujo y el impuesto WT/TPR/M/401/Add.1  
 
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  especial sobre el consumo (sección 3.3.1). Tras ampliar el núm ero de productos comprendidos en 2015, 
a fin de frenar las importaciones, reducir el déficit por cuenta corriente y detener la depreciación de la 
rupia, en septiembre de 2018, Indonesia elevó los tipos del impuesto en origen aplicables a 
determinadas merca ncías importadas (y exportadas) (en total, 1.147), a saber: los tipos pasaron del 
2,5% al 7,5% en el caso de 719 bienes de consumo (por ejemplo, equipo audiovisual y textiles); del 
2,5% al 7,2% en el caso de 218 artículos de uso diario (por ejemplo, champú  y cosméticos); y del 7,5% 
al 10% en el caso de 210 productos de lujo. La política del impuesto en origen permite al Gobierno 
recaudar más ingresos fiscales de manera anticipada, pero puede dar lugar a un pago de impuestos en 
exceso por los importadores ". 
 
27. Podría el Gobierno de Indonesia explicar ampliamente el objetivo de imponer a ciertos productos 
importados el "impuesto de origen "?   
• ¿En qué consiste el impuesto de origen? ¿Sobre qué valor se liquida?  
• ¿Cuáles son los parámetros  para elegir el listado de productos a los cuales se les cobra dicho 
impuesto?  
• ¿Cuál es la periodicidad de revisión del listado de productos a los cuales se les aplica dicho 
impuesto?  
• ¿Cuáles fueron los argumentos y parámetros para aumentar el impuesto en origen en septiembre 
de 2018?  
• ¿En dónde se puede consultar el listado de las 1.147 partidas arancelarias (preferiblemente con 
su descripción en inglés) a las cuales se les aplica el impuesto de origen?  
• ¿Cuáles son los tipos o niveles del impuesto de origen y cuáles los criterios para aplicar cada nivel 
a los productos incluidos en cada nivel?  
• ¿Debe interpretarse que el impuesto de origen es un arancel adicional? En caso negativo, Cuál es 
la justificación para que ello no se interprete de esa forma?  
• ¿Cuál normatividad de la OMC que justifica la imposición del impuesto de Origen?  
 
Answer:  
 
All duties related to imported products  in Indonesia are put in place in line with our commitment under 
the WTO.  
 
3.1.5 Prohibiciones, restricciones y licencias de importación  
 
En el párrafo 3.55 se indica que "durante el período examinado, se actualizó el marco normativo que 
rige el comercio exterior, incluidas las prohibiciones, restricciones y licencias de importación (véase 
infra), mediante, entre otras cosas, la Ley Nº 7/2014 y los Reglamentos Nº 48/2015 y Nº 70/2015 del 
Ministerio de Comercio, modificados por el Reglamento Nº 75/ 2018 del Ministerio de Comercio. En virtud 
de la Ley Nº 7/2014, el Gobierno puede establecer una prohibición o restricción del comercio de bienes 
y/o servicios de interés nacional para proteger: la soberanía económica; la seguridad nacional; la moral 
pública y la cultura; la salud y la seguridad de las personas, los animales, los peces, las plantas y el 
medio ambiente; los recursos naturales del uso excesivo para la producción y el consumo; y la balanza 
de pagos y/o la balanza comercial. Además, también pue de hacerlo para: aplicar la legislación en varias 
esferas; y/o de conformidad con las obligaciones del Gobierno.  La misma Ley promueve el uso de bienes 
de producción nacional para proteger y desarrollar las ramas de producción nacionales… " 
 
28. En este pá rrafo se menciona que el Gobierno de Indonesia puede establecer una prohibición o 
restricción del comercio de bienes y/o servicios para entre otras cosas proteger "la balanza comercial ". 
¿Podría el Gobierno de Indonesia indicar si ha adoptado medidas de re stricción al comercio por razones 
de balanza comercial, y en caso de hacerlo como explicaría su compatibilidad con la normatividad de la 
OMC?  
 
Answer:  
 
Indonesia has not adopted trade -restrictive measures for trade balance reasons.  
 
29. En el informe se de scriben algunos mecanismos de estabilización de precios al arroz y la carne, 
para que se satisfaga la demanda de materias primas en el mercado de Indonesia para las ramas de WT/TPR/M/401/Add.1  
 
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  producción nacionales, impedir la escasez en el mercado interno y proteger al país  frente a los grandes 
aumentos de precio en los mercados mundiales de productos esenciales. Podría Indonesia compartir con 
Colombia ¿Cómo garantiza que estos mecanismos se encuentran acordes con el Artículo 9.1 del Acuerdo 
de Agricultura?  
 
Answer:  
 
Indonesia is committed to fulfill its commitment under the WTO agreements including the exceptions 
provided therein.  
 
30. Colombia quisiera preguntar a Indonesia sobre los apoyos a las exportaciones mediante los 
incentivos disponibles a través de sus progr amas sobre zonas francas, zonas bajo control aduanero, 
almacenes de productos orientados a la exportación (EPTE) (hasta 2015) y ZEE. Además, en virtud de 
los Reglamentos Nº 176/2009 y Nº 188/2015 del MoF, las empresas que operan en zonas francas, ZEE 
y zon as bajo control aduanero pueden importar en régimen de exención de derechos los bienes de 
capital que no encuentren en Indonesia en cantidades suficientes o con las especificaciones precisas por 
un período de dos años durante la ejecución del proyecto de i nversión ¿Cómo Indonesia asegura que 
los apoyos en mención no constituyen subvenciones en el marco del Artículo 5 del Acuerdo de 
Subvenciones?  
 
Answer:  
 
"Specificity" as mentioned in article 2 of the WTO Agreement on Subsidies and Countervailing Measures, 
is not subject to the SCM Agreement unless it has been specifically provided to an enterprise or industry 
or group of enterprises or industries.  
 
In thi s case PMK 176/PMK.001/2009 which has been amended by PMK 188/2015 states that these 
facilities can be used by all of the companies and industry sectors in Indonesia and not limited to 
companies located in SEZs., thus that the accusation of specificity can not be proven. Therefore, we 
believe that the facilities do not violate the Article 5 of SCM Agreement.  
 
3.3 Medidas que afectan a la producción y al comercio  
3.3.2. Normas y otras prescripciones técnicas  
3.3.2.1 Marco jurídico, institucional y normativo  
 
En el párrafo 3.113 se plantea que   "el Organismo Nacional de Normalización de Indonesia (Badan 
Standardisasi Nasional (BSN)), una institución gubernamental no ministerial, sigue encargándose de 
coordinar y facilitar todas las actividades relaci onadas con la normalización y la evaluación de la 
conformidad en Indonesia.188 El Comité de Política de Elaboración de Normas (KKPS (anteriormente 
MTPS)) se encarga de formular recomendaciones de política de elaboración de normas al Presidente del 
BSN para  su aprobación, entre ellas recomendaciones sobre el Programa Nacional de Elaboración de 
Normas. El KKPS está integrado por expertos y representantes del Gobierno/organismos de 
reglamentación y de asociaciones de consumidores y productores. El BSN también es el punto de 
contacto para la cooperación con los organismos internacionales de normalización, y es el servicio de 
información y el organismo de notificación encargado de la aplicación del Acuerdo OTC de la OMC ". 
 
31 ¿Cómo es la estructura del BSN como punt o de contacto y organismo encargado de la notificación 
del Acuerdo OTC de la OMC?  
 
Answer:  
 
BSN c.q. Directorate of Implementation System on Standard and Conformity Assessment has been 
officially assigned as the Indonesian Notification Body and Enquiry Poi nt in accordance with Article 15.2 
WTO TBT Agreement.  
 WT/TPR/M/401/Add.1  
 
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  3.3.2.3 Reglamentos técnicos  
 
En el párrafo 3.121 la Secretaria manifiesta que "como establece la legislación, el Gobierno, a través de 
sus organismos técnicos competentes, puede publicar una política para que las normas nacionales de 
Indonesia sean obligatorias en los casos en que guarden relación con intereses de seguridad nacional, 
inocuidad, seguridad, salud pública, conservación del medio ambiente o razones económicas. Durante 
el período objeto de examen, los Miembros de la OMC expresaron su preocupación por la falta de 
notificaciones a la OMC de proyectos de reglamentos técnicos (véase infra). Como han indicado las 
autoridades, entre las actividades encaminadas a mejorar la puntualidad de las notif icaciones figuran 
las siguientes: establecimiento de un Comité Nacional OTC, integrado por representantes de las partes 
directamente interesadas pertinentes (tanto los organismos de reglamentación como el sector privado) 
para facilitar la coordinación; act ividades sobre diversas cuestiones relacionadas con la aplicación del 
Acuerdo OTC de la OMC; y creación de un sitio web (https://tbt.bsn.go.id) como medio integrado de 
información y comunicación para las partes interesadas, con el fin de mejorar las tareas  de notificación 
e información ". 
 
32 ¿Cuáles son las razones para no realizar las notificaciones internacionales de los reglamentos 
técnicos?  
 
Answer:  
 
As a WTO member, Indonesia is committed to fulfill its notification obligation under WTO agreements.  
 
3.3.2.4 Evaluación de la conformidad y vigilancia del mercado  
3.3.2.5 Etiquetado  
 
Sobre los numerales 3.3.2.3 (Reglamentos técnicos), 3.3.2.4 (Evaluación de la conformidad y vigilancia 
del mercado) y 3.3.2.5 (Etiquetado), tenemos las siguiente s preguntas:  
 
33 ¿Cómo han sido ó están siendo atendidas las preocupaciones comerciales específicas con respecto 
a las medidas relativas a diversos productos alimenticios elaborados y no elaborados, en particular 
en lo que respecta a las prescripciones halal;  los juguetes; los productos cerámicos; los teléfonos 
móviles y las computadoras; el equipo de banda ancha; y las bebidas alcohólicas, presentadas desde 
2013?  
 
Answer:  
 
Indonesia takes into consideration the reviews and comments from WTO Members submitted through 
STC at the WTO TBT Committee Meeting and coordinates further with related institutions at the TBT 
National Committee. Several regulations have been adjusted based on reviews and comments.  
 
34 ¿Cómo es el paso a paso del procedimiento para llevar a cab o la vigilancia y control de los 
reglamentos técnicos?  
 
Answer:  
 
Every compulsory SNI issued will be recorded in the information system at the Ministry of Industry. For 
the control mechanism, the Ministry of Industry supervises conformity assessment agenci es (LSPro) and 
companies (SNI certificate recipients), either periodically (at least once a year) or at any time.  
 
The step -by-step procedures to carry out the monitoring and control of technical regulations on medical 
devices standard are by:  
 
1. Supervising through conformity audits of the application of local GMP and GDP standards for the 
medical device industry and PKRT as well as medical device distributors in Indonesia;  
 
2. Supervising standard activities related to the production of medical devi ces and / or PKRT and 
distribution of medical devices through inspection.  WT/TPR/M/401/Add.1  
 
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  3. Supervising the fulfillment of the standard requirements for medical device and PKRT distribution 
permits through sampling and testing of medical device products and PKRT.  
 
35 ¿En qué m omentos de la producción de productos y servicios realizan el control del cumplimiento 
de los reglamentos técnicos?  
 
Answer:  
 
Assessment of compliance with technical regulation of a product is conducted based on the requirements 
as stated in the regulation  including the standard requirement.  The Conformity assessment procedure 
is based on the certification scheme for the whole production process for a product or services by 
observing its critical point.  
 
36 ¿Cómo verifican que la información contenida en las etiquetas es verdadera?  
 
Answer:  
 
Indonesia conducts regular verification regarding the information of the label by taking samples for 
further laboratory assessment.  
 
37. ¿En el caso que se niegue la aprobación de registro de un producto, el BPMO indica los motivos 
de esa determinación? ¿Podría el Gobierno de Indonesia indicar cuál es la instancia superior a la que 
deben recurrir los importadores en caso que el Director de BPOM no apruebe el registro de un producto 
y el importador considere que cumple con los requisitos?  
¿Puede un importador de un producto cubierto por este párrafo volver a solicitar el registro en el BPOM? 
¿Cuánto cuesta el registro de un producto y cuánto  tiempo se requiere para su aprobación? ¿Cada envío 
requiere el registro que se menciona en este párrafo?  
 
Answer:  
 
BPOM Licensing Registration Process is handled directly by the Directorate of Food Safety Assessment, 
BPOM. The product registration approval is denied when the importer is unable to complete the 
requirement within 50 days. But, the importer can re -apply the registration by paying registration fee 
required by its regulation.  
 
38. ¿Qué tipo de metodología ex post utiliza la KPPU para realizar estas evaluaciones de impacto?   
 
Answer:  
 
The initiation of policy analysis usually comes through; (i) relevant news in media, (ii) report by our 
stakeholders, (iii) information obtained at ou r meeting with the Ministries/Institutions, (iv) information 
obtained from internal market study. In analyzing the impact, we are conducting limited discussion 
forums and hearings with various related parties, inter alia, government agencies 
(Ministries/In stitutions), business actors and other parties as stakeholders of Law No. 5/1999. Such 
discussion activities are needed to hear the opinions of various parties on the substance as proposed in 
the policy recommendations. In addition to the above, coordinati on with stakeholders with regard to the 
proposed policy recommendations which include the essence, urgency, benefits, and consequences that 
must be faced with the existence of the policies is also needed.  
 
39. Teniendo en cuenta que el Gobierno de indonesi a solo ha acatado el 42% de las recomendaciones 
que, en materia de competencia ha efectuado la KPPU, surge la siguiente inquietud: ¿En el proyecto de 
Ley que amplía el espectro de la protección a la libre competencia, se incluye el carácter vinculante de 
sus recomendaciones al Gobierno indonés? En caso de una respuesta negativa, ¿es posible que, al 
menos el Gobierno deba justificar técnicamente las razones por las cuales se aparta de dichas 
recomendaciones por parte de la KPPU?  
 WT/TPR/M/401/Add.1  
 
- 104 - 
 
  Answer:  
 
The Indonesian Competition Law stipulates policy recommendation as not legally binding. However, in 
the formulation of our policy recommendation, we invite the relevant Ministries/Institutions to discuss 
the specific regulation and its impact to competition in  the market, and as a follow up, we ask them to 
convey their responses to our policy recommendations. Should there is no responses, we may bring the 
issues to mass media to gather larger attention.  
 
40. Que metodología emplea el Ministerio de Comercio para  la fijación de los precios de referencia de 
los alimentos de primera necesidad? Se realizan consultas con los productores? Qué papel tiene el 
Ministerio de Agricultura en la estimación de "costos razonables de agricultores y minoristas " de los 
precios de los alimentos? Cómo se controla el efecto de los precios fijos y las compras estatales en la 
inflación?  
 
Answer:  
 
The reference price for staple food is stipulated in Minister of Trade Regulation No. 7/2020, based on 
production input from related ministrie s/agencies and the real conditions as conveyed by business 
associations. The price is evaluated every 4 months.  
 
The reference price is an indicator for the Government to undertake price stabilization where if there is 
price fluctuation above/below the re ference price at the farmer and/or consumer level. The 
government 's capability to maintain price stability will impact to the inflation control.  
 
41. ¿Cuál es la metodología utilizada para determinar el costo razonable de los agricultores y 
minoristas?  
 
Answer:  
 
The determination of the reference price as the Government's reference fair price is determined through 
a joint coordination meeting with the related technical ministries/agencies and the association of staple 
goods business actors. The reference p rice is formed based on reasonable conditions consist of: the 
components of production inputs (such as seeds, feed, etc.); the margin; and the balance of supply and 
demand.  
 
42. ¿Cuál es el alcance de lo que se considera razonable?  
 
Answer:  
 
Because it considers the inputs from related stakeholder.  
 
43. ¿Se controlan los precios de los insumos para los productos agrícolas y de primera necesidad?   
 
Answer:  
 
Basically, the pricing related to any agriculture products is driven market.  The Government receives 
input for instance from poultry business actors,  especially smallholder breeders/independent breeders.  
 
44. ¿Bajo qué metodología establecen el precio máximo de los medicamentos que se comercializan 
en Indonesia?  
 
Answer:  
 
The Maximum Retail Price (MRP) of medicines is the highest selling price of medic ines in pharmacies, 
drug- stores and hospital / clinic pharmacies. MRP is calculated based on the Pharmacy Net Price (PNP) 
and the pharmaceutical service fee.  
 WT/TPR/M/401/Add.1  
 
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  Pharmacy Net Price (PNP) is the selling price including VAT from pharmaceutical wholesalers to 
pharmacies, drugstores and hospital / clinic pharmacies. The components included in the PNP calculation 
are the cost of raw materials and packaging materials, labor cost, overhead cost marketing cost, general 
and administrative cost, research and developmen t cost, profit and distribution cost.  
 
45. Dado el aumento considerable del costo de las importaciones de insumos agropecuarios y cereales 
que se genera por realizarse a través de una empresa estatal, sumado a las subvenciones públicas 
concedidas y sus efe ctos negativos en la competencia y en la eficiencia operativa, agradecemos a 
Indonesia nos dé a conocer las razones para no privatizar esta actividad? Existe algún plan para 
privatizarla en el mediano plazo?  
 
Answer:  
 
One of Government of Indonesia (GoI) strategic objectives, as stated in the Rencana Pembangunan 
Jangka Menengah Nasional (RPJMN) 2020 -2024, is to strengthen economy through Food Security and 
Sovereignty (availability, quality, affordability, and continuity) by building an effi cient value chain and 
integrated upstream to downstream industry. Import of agriculture products is to fill the supply and 
demand gap in order to meet these objectives. Therefore, we have no plan on privatizing this activity 
yet. 
 
46. Podría Indonesia info rmar con mayor detalle cómo funciona el régimen de supervisión de las 
indicaciones geográficas.  
 
Answer:  
 
Geographical Indication Supervision is carried out to:  
a. ensures the reputation, quality, and characteristics of a registered Geographical Indication; and  
b. prevents unauthorized use of Geographical Indications  
 
The supervision of Geographical Indications is carried out by the central government and regional 
governments in accordance with their respective authorities. Monitoring of Geographical  Indications as 
intended can also be carried out by the public. To carry out Geographical Indication Supervision by the 
central government, the Minister forms a Geographical Indication Supervision team consisting of the 
following elements: Geographical Ind ication Expert Team and competent experts in accordance with the 
Geographical Indication product being supervised. In the event that the Geographical Indication 
supervision is carried out by the Regional Government, the results of the supervision are conve yed to 
the Minister of Law and Human Rights to be forwarded to the Geographical Indication Expert Team. In 
terms of monitoring of Geographical Indications carried out by the public, the public can submit a report 
accompanied by evidence to the Minister to be forwarded to the Geographical Indication Expert Team.  
 
4 POLÍTICAS COMERCIALES, POR SECTORES  
4.1 Agricultura, silvicultura y pesca  
4.1.1. Características  
 
Se indica en el párrafo 4.10 del Informe que "desde 2008, cuando el precio de los productos alimenticios 
alcanzó su máximo nivel, Indonesia ha hecho hincapié en la seguridad, la autosuficiencia y la soberanía 
alimentarias. Las autoridades han indicado que mantienen el compromiso de que el 90% de la oferta de 
alimentos básicos y fuentes de proteínas se produzca en el país " dando prioridad al arroz, el maíz, las 
habas de soja, el azúcar y la carne de bovino ".  
 
Según las autoridades, "en junio de 2020 la producción de arroz había cubierto el consumo interno, 
mientras que en el caso del maí z, las habas de soja, el azúcar y la carne de bovino no se había alcanzado 
la autosuficiencia ".  
 
47. Dado que se ha cuestionado la eficacia del programa del arroz, ya que la promoción de la producción 
mediante el sostenimiento de los precios también da lugar a precios altos y agrava la desnutrición 
y el acceso a los alimentos sigue siendo desigual, y la inseguridad alimentaria continúa siendo un  WT/TPR/M/401/Add.1  
 
- 106 - 
 
  problema para algunos hogares, cuáles políticas han aplicado las autoridades para tratar de 
solucionar este problema ? 
 
Answer:  
 
Low-income households are supported by social assistance rice in order to access the ideal number of 
calories. This is a government effort to reduce stunting rates.  
 
4.1.3 Medidas en frontera  
 
Según los párrafos 4.23, 4.24, Indonesia aplica un régimen restrictivo de concesión de licencias para la 
importación de animales y productos de origen animal, productos de la pesca, maíz forrajero, arroz, 
azúcar, productos hortícolas, bebidas alcohólicas y  productos forestales, entre otros, como parte del 
Programa de Verificación de las Importaciones (VPTI) con el fin de promover la autosuficiencia. También 
aplica impuestos a las exportaciones de aceite de palma, aceite de palma en bruto y sus derivados, 
cacao en bruto.  
 
La información anterior se complementa con lo indicado en el Capítulo 3 del Informe, párrafos 3.57 y 
3.61, en el que se menciona que "durante el período objeto de examen, Indonesia siguió restringiendo 
explícita o implícitamente las importaciones de alguno s productos (por ejemplo, carne en canales, maíz 
forrajero, productos hortícolas, arroz, clavo (hasta 2015), azúcar, leche, sal, bebidas alcohólicas y, 
abonos, mediante prescripciones en materia de licencias y comercio de Estado.  
 
Así mismo, se menciona q ue "la expedición de autorizaciones de importación para algunos productos 
sigue sujeta, entre otras cosas, a requisitos relativos al uso (por ejemplo, de carne en canales, productos 
hortícolas, maíz forrajero, a la compra de productos nacionales (por ejemp lo,), al comercio de Estado 
(por ejemplo, arroz y maíz forrajero) o a arreglos de distribución (por ejemplo, bebidas alcohólicas para 
restringir cuantitativamente, de forma explícita o implícita, su importación.  
 
48. Podría Indonesia indicar los resultados que  se han obtenido con la aplicación de distintos 
instrumentos de control no automático de las importaciones (licencias, prohibiciones y, 
autorizaciones de importación) sobre la libre competencia y los objetivos de la política de seguridad 
alimentaria y crec imiento del sector agropecuario?  
 
Answer:  
 
There is no government intervention in domestic market. The Recommendation to Import Horticultural 
Products (RIPH) license is related to food safety. As the results, Indonesia creates free competitions 
with the objective all the agriculture product fulfill  the good agriculture practices while maintain the 
growth of the agricultural sector.  
 
49. Considera Indonesia que el requisito de compra de la cosecha nacional exigido por las autoridades 
para autorizar las importaciones de algunos productos como leche, maíz  forrajero, azúcar y sal, es 
compatible con las disposiciones de la OMC, en particular, las contenidas en el Acuerdo de Medidas 
de Inversión relacionadas con el Comercio?  Son aplicadas en virtud de algún "waiver " autorizado 
por la OMC?   
 
Answer:  
 
Indone sia is certain that this is not inconsistent with the TRIM's Agreement.  
 
50. Cuáles son las razones de política comercial para aplicar impuestos y licencias a la exportación de 
productos en los que Indonesia es uno de los principales productores mundiales con competitividad 
elevada, como el aceite de palma y sus derivados?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
The rationale for applying taxes and licensing to the export inter alia is to provide business certainty 
and administer exportation.  
 
4.1.6 Pesca  
El informe de la Secretaría, párrafo 4.56 indica "Según se ha informado, la sobrepesca se debe a las 
actividades de las embarcaciones extranjeras ilegales y a la inexistencia de un marco reglamentario 
suficientemente sólido para las actividades pesqueras n acionales; las autoridades no aceptan esta 
evaluación. La presión ejercida sobre las poblaciones de peces por la flota nacional parece haber 
aumentado, y el número de embarcaciones pequeñas está creciendo, con el estímulo de la política 
nacional (véase inf ra); las autoridades no opinan lo mismo. "  
 
51. Podría Indonesia detallar cuales considera que son las razones que explican la sobrepesca de ciertas 
poblaciones en sus aguas jurisdiccionales?  
52. Qué metodologías utiliza Indonesia para realizar la evaluación del estado de las poblaciones de 
peces? (stock assessment)  
53. Qué medidas implementa el gobierno Indonesio para reducir la sobrepesca de los recursos y para 
reducir la sobrecapacidad? Qué medidas se han adoptado para hacer frente a las actividades de 
embarcacion es extranjeras ilegales?  
 
Answers:  
 
51. The main reason of overfishing in Indonesia jurisdictional waters is IUU Fishing activities.  
52. Main technical areas (methods) of stock assessment in Indonesia are population dynamics; surplus 
yield; catch/effort; analysis of catch rates; trawl and other fishing surveys; tagging; and acoustic 
surveys.  
53. The Government of Indonesia's policy to reduce overfishing and overcapacity includes deterrence 
and management aspect, such as:  
a. potential and allowable c atch regulation;  
b. fishing gear, fishing routes and fishing effort allocation management;  
c. strengthening of documentation through logbook programs, port sampling and on -board 
observers;  
d. eradication of IUU Fishing.  
All policies above are formulated by consid ering the status of fish stock.  
 
El párrafo 4.58 señala que "El Ministerio de Pesca y Asuntos Marítimos (MMAF) se ocupa de aplicar la 
Política de Desarrollo de la Pesca y el Mar 2020 -2024, que tiene cinco objetivos principales: […] 
ordenación de la pesca e n la zona económica exclusiva (ZEE) y en alta mar, […] "  
 
54. Podría Indonesia indicar qué políticas aplica actualmente en lo relacionado con la pesca en Alta Mar?  
55. Qué porcentaje de la captura marina total proviene de faenas en aguas distantes y en alta mar? 
Cuantas embarcaciones con pabellón de Indonesia realizan pesca en altamar o en aguas distantes?  
 
Answers:  
 
54. Government of Indonesia 's policy on high seas fishing  is in line with RFMO regulations through 
binding resolutions. Indonesia is currently a member of IOTC, CCSBT and WCPFC, while also a 
contracting non -member on IATTC.  
 
55. Indonesia does not conduct distant water fishing.  
 
El párrafo 4.72 afirma que "Se sigue proporcionando diésel subvencionado, pero de manera más 
concreta. Desde 2015, el acceso a esta subvención está limitado a los barcos de menos de 30 TB. "  
 
56. Podría Indonesia indicar si las faenas de pesca en alta mar y en aguas distantes se benefician de 
esta subvención al diésel?  
 WT/TPR/M/401/Add.1  
 
- 108 - 
 
  Answer:  
 
Distant water fishing vessels are not recipient to the diesel fuel subsidy. The subsidy recipient is only 
small fishing vessels (under 30 GT).  
 
57. Colombia desearía  conocer más sobre los 16 paquetes nacionales de políticas económicas (NEPP) 
para fomentar la industria y la competitividad. En particular, nos gustaría saber con más detalle 
¿Estos paquetes incluyen incentivos para aumentar las exportaciones? Y en caso af irmativo ¿Cómo 
estos serían compatibles con el Artículo 5 del Acuerdo de Subvenciones de la OMC?  
 
Colombia would like to know more about the 16 National Economic Policy Packages (NEPP) to promote 
industry and competitiveness. In particular, we would like t o know in more detail. Do these packages 
include incentives to increase exports? And if so, how would these be consistent with Article 5 of the 
WTO Subsidies Agreement?  
 
Answer:  
 
The 16 National Economic Policy Packages are focussing on deregulation and ease of doing business to 
ensure a smooth inflow of investment into Indonesia and also to support small and medium Enterprise 
among others by providing ease of Access to credit facility. Since the credit is not contingent to export 
perform ance, and credit terms and interest are based on market, no benefit is conferred, thus it is 
consistent with Article 5 of the WTO Subsidies Agreement.  
 
4.4 Servicios  
4.4.7   Servicios de distribución centrados específicamente en el comercio electrónico  
 
En el párrafo 4.264 se señala que "no se disponía de datos sobre el tamaño del sector de la distribución 
en Indonesia ni sobre la presencia extranjera en ese sector. Según se informa, el país ha registrado un 
rápido crecimiento del comercio en línea en los  últimos años y, concretamente, la proporción de las 
ventas en línea en relación con el total de las ventas al por menor aumentó de menos del 1% en 2014 
a alrededor del 3% en 2017. En Indonesia operan cinco principales proveedores nacionales de compra 
y venta en línea ". 
 
58. Teniendo en cuenta que el país ha registrado un rápido crecimiento del comercio electrónico, ¿a qué 
factores se debe este desarrollo?, ¿se han impuesto medidas regulatorias, fiscales o empresariales  
que tengan una incidencia directa o indir ecta en este crecimiento?  
 
Answer:  
 
Several factors inducing the growth of the e -commerce industry in Indonesia, such as the increasing 
number of mobile phone users that have access to internet; more than one -third of internet users are 
young consumers wh o are technology literate; online shopping is more convenient with supporting on 
financing which increasing consumer 's trust and confidence in the safety of online shopping. The 
government supports the development of electronic commerce through the followi ng efforts: making 
fair, inclusive and trustworthy regulations, establishing business incubators, improving digital 
infrastructure, and so on.  
 
59. ¿A la fecha, se tienen datos disponibles sobre el comercio electrónico nacional y transfronterizo en 
Indonesia? Si sí, ¿quién es la entidad encargada de recolectarlos y analizarlos?  
 
Answer:  
 
Currently, domestic and cross -border e -commerce data are still not available. The Government is 
working on providing this data through Statistics Indonesia who is in charge to collect data on 
e-commerce from Digital Platform and Market Place (According to Government Decree No. 80/2019). 
BPS is in the process of issuing BPS Decree on the mechanism of data submission, fields and 
interoperability.  
 WT/TPR/M/401/Add.1  
 
- 109 - 
 
  En el párrafo 4.267 se informa que "en 2019, el Gobierno dictó el GR Nº 80/2019 sobre el Comercio por 
medio de Sistemas Electrónicos, que regula el comercio electrónico, incluidos los mercados y las 
prácticas de comercio electrónico al por menor. Como ha indicado una fuente exte rna, el Reglamento 
contiene varias disposiciones específicas para la práctica del comercio electrónico, a saber: descripción 
detallada de los agentes empresariales que participan en actividades de comercio electrónico; lista de 
verificación del cumplimient o para los operadores de comercio electrónico; pruebas y contratos 
electrónicos; protección de datos personales; y prácticas comerciales (por ejemplo, en materia de 
fiscalidad, pagos, contratos comerciales, protección de los consumidores, y transporte marí timo y 
logística). El Reglamento se aplica tanto a las empresas nacionales como a las extranjeras, incluidas las 
personas físicas o jurídicas extranjeras constituidas en sociedades anónimas y ubicadas fuera de 
Indonesia que realizan actividades de comercio  electrónico en Indonesia. Todas las empresas 
(nacionales y extranjeras) deben obtener una licencia comercial para llevar a cabo actividades de 
comercio electrónico en Indonesia".  
 
60. ¿Qué tipo de impuestos aplicables a las transacciones electrónicas contempl a la reglamentación GR 
Nº 80/2019 sobre el Comercio por medio de Sistemas Electrónicos?  
 
Answer:  
 
The Government Regulation No. 80/2019 doesn 't specifically regulate tax for electronic transaction. 
Tax-related provisions refer to the applicable tax laws and regulations.  
 
INFORME DEL GOBIERNO - Documento WT/TPR/G/401  
4. POLÍTICAS COMERCIALES Y RELACIONADAS CON EL COMERCIO  
4.2.2 Pesca  
 
En el párrafo 4.9 se plantea que "en su empeño por combatir la pesca INDNR, Indonesia establece 
medidas muy estrictas y mantiene una política de tolerancia cero respecto de la pesca INDNR, como se 
dispone en la Ley Nº 31/2004, modificada por la Ley Nº 45/2009 de Pesca. Además, el Acuerdo sobre 
Medidas del Estado Rector del Puerto Destinadas a Prevenir, Desalenta r y Eliminar la Pesca Ilegal, 
No Declarada y No Reglamentada, constituye un instrumento jurídico adicional que desalienta las 
actividades de pesca INDNR. Los efectos positivos de la lucha contra la pesca INDNR se tradujeron en 
un aumento de las poblaciones  de peces, que en 2016 ascendieron a 12,54 millones de toneladas, y en 
una mayor prosperidad para los pescadores. En la lucha contra la pesca INDNR Indonesia también ha 
cooperado con numerosos países y entidades asociados, tanto a nivel bilateral como mult ilateral, y a 
través de foros internacionales ". 
 
61. Podría el Gobierno de Indonesia compartir información más detallada sobre el alcance y mecanismos 
de implementación de la "política de tolerancia cero respecto de la pesca INDNR".  
 
Answer:  
 
"Zero tolerance p olicy" was meant to convey Indonesia's firm action on illegal fishing both for Indonesian 
fishers and foreign fishers.  
 
It also convey a comprehensive approach (from upstream to downstream) in preventing and deterring 
IUU Fishing activiities.  
 
4.2.10 Facilitación del comercio  
 
En el párrafo 4.48 se indica que "Indonesia apoya plenamente las iniciativas de facilitación del comercio 
para ayudar a generar oportunidades duraderas de inversión y, de ese modo, fomentar el crecimiento 
económico, simplificando  los procedimientos comerciales en la frontera y reduciendo los costos 
comerciales innecesarios para la exportación e importación mediante la incorporación de las 
disposiciones del Convenio de Kyoto Revisado de la Organización Mundial de Aduanas (OMA) en l a 
legislación nacional de Indonesia ". 
 WT/TPR/M/401/Add.1  
 
- 110 - 
 
  62. Podía Indonesia compartir información sobre ¿Cuáles son los procedimientos comerciales que han 
sido simplificados? Y ¿de qué forma se han desarrollado?  
 
Answer:  
 
Trade procedures simplification is implemented inter alia by developing online system. Licence can be 
submitted anytime and anywhere.  
 
En el párrafo 4.49 Indonesia señala que "durante el período 2015 -2017, el Gobierno se esforzó por 
mejorar la posición de Indonesia en el índice de facilidad para hacer negocios mediante la aplicación de 
varios programas, como, por ejemplo: los sistemas electrónicos de facturación única para impuestos, 
derechos de aduana, impuestos especiales y otros gravámenes en todas las o ficinas de aduanas; el 
sistema de gestión de riesgos en la frontera; y el sistema Inaportnet, para apoyar el movimiento 
(seguimiento y rastreo) de mercancías dentro y fuera de la zona portuaria, e integrarlo en el sistema 
en línea de orden de entrega para la manipulación de mercancías y el acceso a las carreteras de peaje. 
Estos programas y sistemas han mejorado la eficiencia (reduciendo al mínimo el tiempo de permanencia 
en el puerto) de la entrada y salida de mercancías en el puerto de Tanjung ". 
 
63. Cómo funciona el sistema de gestión de riesgos? y  ¿qué entes participan en este sistema?  
 
Answer:  
 
There are 3 types of customs channel (lane) which are implemented in customs risk management 
process for imported goods, namely:  
1. Green Lane which is document ver ification and physical examination are not required prior to the 
issuance of Customs Approval (SPPB).  
2. Yellow Lane which is physical examination are not conducted, but document examination is still 
required before the issuance of Customs Approval (SPPB).  
3. Red Lane which is physical examination and document verification must be conducted prior to 
issuance of Customs Approval (SPPB).  
 
The importers will obtain their risk management status (channel/lane) based on certain elements 
regarding their track record com pliance. The risk management applied in the system is formulated 
through several parameters stated by Director General decree.  
 
En el párrafo 4.51 Indonesia informa que "estos programas designados se aplicaron satisfactoriamente 
y dieron resultados positiv os en cuanto a la clasificación de Indonesia en el índice de facilidad para hacer 
negocios, especialmente en lo que respecta a los indicadores del comercio transfronterizo relativos al 
tiempo necesario para el cumplimiento de los requisitos de documentació n (importación y exportación), 
que se ha reducido considerablemente desde 2015, como se muestra en el cuadro que figura a 
continuación ". 
 
64. Podría Indonesia ampliar información sobre cuánto tiempo tarda en generar el documento de 
intención de importación o e xportación, después de que el importador o el exportador  ha cumplido 
con todos los requisitos previos exigidos.  
 
Answer:  
 
If it is submitted complete and correct, documents will generally be issued in 2 -3 working days, depends 
on the products.  
 
4.2.3 Manufacturas  
 
En el párrafo 4.17 el Gobierno de Indonesia informa que "en el sector del automóvil, gracias a la política 
de producción de vehículos automóviles eficientes desde el punto de vista energético y asequibles 
(LCGC), el nicho de Indonesia en el g ran mercado de los países de ingresos medios bajos ha pasado de 
ser el de los vehículos de dos ruedas al de los de cuatro ruedas. Además, estos automóviles LCGC se 
han convertido también en los productos estrella indonesios en los mercados de exportación. En los WT/TPR/M/401/Add.1  
 
- 111 - 
 
  próximos cinco años, Indonesia se propone iniciar la producción local de vehículos eléctricos de dos y 
cuatro ruedas y de sus componentes; para ello construirá la infraestructura necesaria y ofrecerá 
incentivos (moratoria fiscal y deducciones extrao rdinarias) a la inversión en investigación y desarrollo, 
transferencia de tecnología y desarrollo de la industria de baterías de vehículos eléctricos a fin de 
asegurar su concatenación en la cadena de suministro ". 
 
65. Entendemos que Indonesia busca iniciar la  producción local de vehículos eléctricos de dos y cuatro 
ruedas y de sus componentes y, entre otras, va a otorgar ciertos incentivos para el desarrollo de la 
industria (moratoria fiscal y deducciones extraordinarias). Colombia quisiera conocer más 
informa ción sobre la compatibilidad de estos incentivos con las disciplinas multilaterales sobre 
subvenciones.  
 
Answer:  
 
Indonesia is committed to reducing CO2 emission. The ultimate goals of the policy are to improve the 
environment (CO2 and Pollutant reduction ), enhance science & technology for CASE era, human capital 
(Research & Development), and capacity building of Domestic EV Maker. This policy also treats equally 
both domestic and foreign investors.  
 WT/TPR/M/401/Add.1  
 
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  UNITED KINGDOM  
UK QUESTIONS ON SECRETARIAT REPORT (S401)  
 
1 ECONOMIC ENVIRONMENT  
1.1 Main Features of the Economy  
 
Box 1.1 Indonesia 's response to the COVID -19 challenge  
 
Question 1:  The Indonesian economic recovery programme included support for businesses through 
state capital injecti ons. What long -term support is Indonesia planning for SMEs affected by Covid -19? 
 
Answer:  
 
Indonesia has policy development to accelerate economic recovery regarding COVID -19 for MSMEs. The 
long-term goals are promoting digitalization for MSMEs and escalating their business through capacity 
building for MSMEs. For example, government encourages MSMEs to make Personal Protective 
Equipment based on national standard.  
 
Follow -up Question 1:  Please could the Indonesian Government clarify as to whether the national 
standard on PPE is based on an international standard or specifically domestic -only requirements?  
 
Answer:  
 
The national standard (SNI) on PPE refers to international standard such  as ISO 10282:2010, ISO 
11193 -1:2010 and ISO 11193 -2:2010.  
 
Question 2:  Indonesia recently issued BPOM Regulation 8/2020 on the monitoring of online distribution 
of commodities including traditional drugs; the Regulation imposes an additional requirement o n the 
pharmaceutical industry to obtain a PSEF license in order to distribute drugs online and does not allow 
products containing precursors to be sold via e -commerce. Does Indonesia plan to lift these measures 
in line with the easing of the effects of the  Covid -19 pandemic?  
 
Answer:  
 
Currently Indonesia does not have any plan to lift any of those measure.  
 
1.2 Recent Economic Developments  
1.2.4 Structural Policies  
1.2.4.4 Labour Market Policies  
Paragraph 1.16  
 
Question 3:  Could Indonesia provide an update on the online submission system for obtaining a foreign 
employment permit? How will this reduce the complexity, time and cost of the current process for 
obtaining certificates of good standing from PERADI each year?  
 
Answ er: 
 
Indonesia has established Foreign Employment Online System for obtaining foreign employment permit 
that allows online registration. The result can also be accessed online which reduce the complexity, time 
and cost. This online system is under developm ent to be integrated into the Online Submission System 
(OSS).  
 
Question 4:  Will the reforms to the regulatory framework regarding certain positions that may be 
occupied by foreign workers remove or reduce the mandatory requirement imposed on Foreign Lawyer s, 
to provide free legal services to a government or research institution for 120 hours per year or 10 hours 
per month? Does Indonesia plan to remove this requirement?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
Currently Indonesia does not have any plan to remove the mentioned requirements.  
 
Question 5:  Could Indonesia expand on foreign -to-domestic worker ratios, in particular relating to the 
provision of legal services, where there is a ratio of four Indonesian lawyers compared to one foreign 
lawyer (4:1) in place. Would Indone sia consider removing the cap on the ratio of Foreign Lawyers to 
Indonesian Lawyers?  
 
Answer:  
 
Currently Indonesia does not have any consideration regarding this matter.  
 
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation  
2.2.3 Trade Laws and Regu lations  
Paragraph 2.17 Local Content Requirement  
 
Question 6:  Ministry of Health (MOH) Decree 1010 places local manufacturing and technology transfer 
requirements on market access authorization for pharmaceutical products.  Does Indonesia plan to lift 
the requirement that pharmaceutical products be manufactured in I ndonesia, through the Job Creation 
Law or otherwise?  
 
Answer:  
 
Currently, Indonesia has no plan to amend Ministry of Health Decree 1010 regarding registration 
medicine.  
 
Question 7:  Does Indonesia plan to lift the local content requirement for pharmaceutic als contained in 
Presidential Instruction No. 6/2016 and Ministry of Industry Regulation No. 16/2020? Will the Job 
Creation Law or any other law reduce the required proportion of raw  material components made up of 
local content, which has been increased fr om 30% to 50%, and/or the increase in the Research and 
Development local content requirement?  
 
Answer:  
 
The Ministry of Industry regulation No. 16/2020 does not regulate the local content requirement on 
retails and it only contains on the procedures to calculate the local content for pharmaceutical products.  
 
Follow -up Question 7:  Will the Job Creation Law or any other law reduce the required proportion of 
raw material components made up of local content, which has been increased from 30% t o 50%, and/or 
the increase in the Research and Development local content requirement?  
 
Answer:  
 
At the present moment, Indonesia does not have any plans in this regard.  
 
Paragraph 2.18  
 
Question 8:  It is noted that Indonesia has introduced the Job Creation Law. Could Indonesia please 
explain why provisions for the education sector, which were included in previous drafts, are now 
excluded?  
 
Answer:  
 
Indonesian Government and the house of representatives agreed that the reformation the educational 
sector will be done separately and will not be covered in Law No.11/2020 regarding the Job Creation 
Law. WT/TPR/M/401/Add.1  
 
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  Follow -up Question 8: Could the Indonesian government please provide information on expected 
timing and content of planned reformation of the education sector.  
 
Answer:  
 
Education sector were excluded from Job Creation Law to maintain its non -profit principle which different 
with licensing procedures in another sectors. In regards to education development target the Ministry 
of Education and Culture carries the theme "Merdeka Learning" which consists of 6 episodes which have 
been launched are part of the strategic plan of the Me rdeka Learning target to be achieved. Currently 
GOI is in the discussion to arrange Road Map of Education until 2035 with objective to create qualified 
human resources in 2045.  
 
Paragraph 2.42   
 
Question 9:  Could Indonesia provide further information on the functioning of the Investor Relations 
Unit in addressing the concerns of investors in areas such as investor rights? Could Indonesia provide 
information on the domestic regulations relevant to companies opening subsidiaries in Indonesia 
(Mode  3 of GATS)?  
 
Answer:  
 
Regulations related to the formation of subsidiaries in Indonesia are regulated in Regulation of the Head 
of the Investment Coordinating Board of the Republic of Indonesia Number 6 of 2018 concerning 
Guidelines and Procedures for Licensing and Investment Facilities contained in Chapter V Provisions and 
Procedures for Licensing Representative Offices and Branch Offices, with Part One regulates the 
provisions for KPPA (Foreign Company Representative Office) Permits, an d the Second Part regulates 
the Provisions and Procedures for Application for Opening of Branch Offices.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Import Prohibitions, Restrictions and Licensing  
3.1.5.1 Import Prohibitions and Quantitative Restrictions  
Paragraph 3.57  
 
Question 10: We understand that an alcohol prohibition bill is again under discussion in the House of 
Representatives. Can Indonesia please advise on the content of this bill, e.g. is it the intention to prohibit 
trade and consumption altogether, or to better regulate the market?  
 
Follow -up Question 10:  Would Indonesia be able to clarify the specific regulations planned to address 
these policy concerns? Would Indonesia confirm that there w ill be a public consultation process as these 
regulations are formulated, allowing business to contribute to the discussion?  
 
Answer:  
 
The regulations regarding alcohol beverages are aimed to protect public moral and to better regulate 
the market. To this moment, the regulations remain unchanged. According to our Law on establishment 
of laws and regulations, public consultation should be held before any regulations are promulgated.  
 
3.3 Measures Affecting Production and Trade  
3.3.1 Incentives  
3.3.1.1 Taxat ion 
3.3.1.1.1 Central Government Taxes and Related Tax Incentives  
3.3.1.1.1.4 Excise Taxes  
Paragraph 3.107  
 
Question 11: The high level of import duty (150% ad valorem) and internal taxation applicable to 
imported spirits has served to fuel the illicit market.  How does Indonesia justify the differential between WT/TPR/M/401/Add.1  
 
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  the excise tax payable on imported spirit drinks (INR130,000 pe r litre) and local products (INR 80,000 
per litre)?  
 
Answer:  
 
The difference in the amount of excise tariffs on imported MMEAs and domestic MMEAs is due to 
significant differences in quality and price between imported products and local products.  
 
3.3.3 Standards and Other Technical Requirements  
3.3.3.2.6 Halal Requirements  
Paragraph 3.151  
 
Question 12: Could Indonesia provide an update on the planned roll out of the Halal regulations, 
including implementation?  
 
Answer:  
 
Based on Indonesia 's notification to WTO under G/TBT/N/IDN/123 regarding the Implementation of 
Halal Product Assurance, Indonesia has clearly stated the coverage products and the transition period 
of the new halal regime. The transition period are as followed:  
a. Food and beverag es products: 17 October 2019 -17 October 2024  
b. Traditional medicine and health supplement: 17 October 2021 -17 October 2026  
c. Medicine (free medicine or over the counter drugs and limited free medicine): 17 October 2021 -17 
October 2029  
d. Prescription drug, exclud ing psychotropic: 17 October 2021 -17 October 2034  
e. Cosmetic, chemical product and genetically engineered product: 17 October 2021 -17 October 2026  
f. Clothing, headgear and accessories: 17 October 2021 -17 October 2026  
g. Household appliances, Muslim worship equi pment, stationery and office equipment: 17 October 
2021-17 October 2026  
h. Goods for medical devices risk class A: 17 October 2021 -17 October 2026  
i. Goods for medical devices risk class B: 17 October 2021 -17 October 2029  
j. Goods for medical devices risk class C: 17 October 2021 -17 October 2034  
 
Indonesia is willing that Member has a smooth adjustment to the new regulation.  
 
Question 13: Could Indonesia provide an acceptable alternative to the required government -to-
government agreement for accepting foreign halal certifier bodies, where the overseas party is restricted 
by national law and unable to fully comply with the requirements?  
 
Answer:  
 
If there is no foreign halal institution that has cooperation with the Indonesian government, then the 
halal product will be certified directly in Indonesia based on the halal certification mechanism that 
applies.  
 
Follow -up Question 13: We would appreciate a more detailed response to our Question 13 (Could 
Indonesia provide an acceptable alternative to the requi red government -to-government agreement for 
accepting foreign halal certifier bodies, where the overseas party is restricted by national law and unable 
to fully comply with the requirements?)  Can Indonesia please explain how a halal product can be 
certifie d directly in Indonesia?  What avenues of international cooperation are available for BPJPH to 
cooperate with foreign halal certifying organizations, in particular organizations that use third party or 
non-governmental accreditation, to recognise halal cer tification?  
 
Answer:  
 
The information regarding foreign halal product certification can be accessed through 
http://www.halal.go.id/layanan/ln . Based on Minister of Religious Affairs Regulation No. 26/2019, the 
accreditation can be given only to the governmental organizations and non -governmental organizations WT/TPR/M/401/Add.1  
 
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  authorized by the government of the origin country, therefore any halal certificate is sued by 
unauthorized non -governmental organizations will not be recognized by the BPJPH.  
 
If there is no foreign accreditation agency related to halal, then it can be certified by Indonesia Halal 
Assessment Body (LPH).  
 
3.3.5 State Trading, SOEs, and Priva tisation  
3.3.5.2 SOEs and Privatisation  
Paragraph 3.170 - 171 
 
Question 14: To what extent are the procurement activities of State -Owned Enterprises open to 
overseas competition? Please detail any procedures that overseas businesses would have to undertake 
to bid for SOE procurements.  
 
Answer:  
 
Ministry of SOE 's has issued the Regulation of the Minister of SOE 's No. PER -08/MBU/12/2019 
concerning General Guidelines for the Procurement of Goods and Services for State -Owned Enterprises.  
 
Based on that  Regulation, the procurement activities of State -Owned Enterprises open to any provider 
of goods and services, including from overseas. The procedures for SOE procurement are regulated by 
each SOE.  
 
3.3.6 Government Procurement  
3.3.6.1 Features  
Paragraph 3.178  
 
Question 15: It is noted that Indonesia became an Observer to the WTO Agreement on Government 
Procurement (GPA) in 2012. Please elaborate on any considerations relevant to deciding whether to 
commence an accession application.   
 
Answer:  
 
Indonesia needs consideration for several aspects, such as the readiness of its domestic suppliers to 
compete with foreign suppliers inside and outside Indonesia as well as political approval that involve 
many stakeholders.  
 
Question 16: In order to suppor t foreign companies to help facilitate Indonesia 's Infrastructure plan, 
does Indonesia plan to lift preferences used to encourage domestic sourcing and to maximize the use 
of local content in government procurement (Presidential Regulation No 38/2015)?  
 
Answer:  
 
The Presidential Regulation No. 38/2015 does not specifically regulate domestic sourcing and the use of 
local content in government procurement.  
 
Paragraph 3.180  
 
Question 17: Does Indonesia plan to change its bidding system for public contracts to better align with 
international guidelines, so that listing decisions better reflect multiple sources of evidence, which 
include scientific data, demonstrating drug safety and drug efficacy?  
 
Answer:  
 
The bidding system in Indonesia has been c onsidered and aligned with international best practices.  
 WT/TPR/M/401/Add.1  
 
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  Paragraphs 3.182 -3.183  
 
Question 18: Does Indonesia plan to issue comprehensive guidelines and a timeline on the process of  
Public -Private -Partnerships (PPP) for airport projects?  
 
Follow -up Question 18:  Would the Indonesian government be able to provide further detail on its 
plans to issue these guidelines and timelines?  
 
Answer:  
 
As an effort to accelerate the implementation of infrastructure projects under the PPP scheme, currently 
the Indonesian government has a legal basis, namely Presidential Decree No. 38 of 2015 concerning 
Government Cooperation with Business Entities in Infrastructure Procurement. Followi ng up on this, 
Bappenas has established a derivative regulation, namely Regulation of the Minister of National 
Development Planning No. 4/2015 j.o. Regulation of the Minister of National Development Planning No. 
2/2020 concerning PPP Implementation Procedu res in Indonesia, which serves as a general guide in PPP 
implementation in Indonesia.  
 
Regarding the implementation of PPP, especially in the transportation sector, currently the Ministry of 
Transportation has stipulated Regulation of the Minister of Trans portation No. 58 of 2018 concerning 
Procedures for PPP Implementation in the Provision of Transportation Infrastructure, which serves as a 
general guide for PPP implementation within the Ministry of Transportation. The said regulation also 
regulates airpor t sector.  
 
To support the planning and preparation stages of PPP projects in the airport sector, Bappenas has 
currently compiled a PPP toolkit which functions to assist the PIC of Cooperation Project (PJPK) in 
preparing preliminary study documents and pre -feasibility studies.  
 
To date, Indonesia has four airport development PPP projects that are in the process of PPP preparation 
and transaction stages, namely: Hang Nadim Airport, Komodo Airport - Labuan Bajo, Kediri Airport, and 
Singkawang Airport. Therefor e, supposed the project succeeds to the financing fulfillment stage 
(financial close), it is expected that the lessons learned from these projects can become input in the 
preparation of specific airport sector guidelines.  
 
Regarding the timeline for PPP project implementation, the regulations regarding PPP implementation 
procedures basically do not regulate how long a project should take, considering that there are many 
factors that can support PPP project implementation, such as PJPK commitments and the land acquisition 
process. However, in an unwritten, there is a rule of thumb for the period of normative PPP 
implementation, with the following details:  
 
Stages  Implementation Duration (Normative)  
Preliminary Studies  2 – 4 months  
Preliminary Pre -Feasibil ity Study 
(Outline Business Case)  4 – 6 months  
Final Pre -Feasibility Study (FBC)  4 – 6 months  
Pre Qualification  2 months  
Proposal Request  3 months  
Appointment of the Auction 's Winner  1 month  
PPP Agreement Signis  1 month  
Fulfillment of Financing  6 months (could be extended according to the approval and 
consideration of PJPK)  
 
Question 19: Does Indonesia plan to use the new Job Creation Law to change the practice of prioritising 
generic drugs in governmental healthcare fa cilities and in the National Health Insurance? How does 
Indonesia plan to encourage the use of trademarked drugs, originators and patented drugs (Ministry of 
Health Regulation 68/2010)?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
The Job Creation law is intended to generate productive workforce through various sectors including 
health sectors.  
 
Paragraph 3.194  
 
Question 20: Please elaborate on the types of procurement activities that the e -catalogue is used for. 
What types of goods / services can be procured from the e -catalo gue? Are there any thresholds that 
apply to purchases made through the e -catalogue?  
 
Answer:  
 
E-catalogue is lists of products/services published in e -katalog.lkpp.go.id. Type of products listed in 
e-catalogue: standard goods/services or could be standardized and repetitive needs of such goods and 
services. The threshold is regulated in PR 16/2018.  
 
3.3.6 Government Procurement  
3.3.6.2 Institutional and Regulatory Framework  
Paragraph 3.187  
 
Question 21:  The regulatory framework for government procurement was revised in 2018 to (among 
other things) increase MSME participation. How does Indonesia encourage foreign SME participation in 
procurement? What proportion of SMEs winning public procurement contract s are foreign SMEs?  
 
Answer:  
 
Indonesia encourages foreign SME participation to participate in the government procurement in the 
event that: a) the goods cannot be produced domestically; or b) domestic production volume is unable 
to meet the demand.  
 
Follow-up Question 21:  What proportion of SMEs winning public procurement contracts are foreign 
SMEs? What measures does Indonesia take to encourage this?  
 
Answer:  
 
At the moment, we are still monitoring the exact number of MSME's participation in government 
procurement.  
 
Based on PR No. 16/2018, procurement packages for goods, construction services, and other services 
up to a value of IDR 2.5 billion are allocated for small businesses (unless they cannot be undertaken by 
such entities because they are too technically demanding). They are also permitted to bid for contracts 
above this value.  
 
3.3.7 Intellectual Property Rights  
Paragraph 3.203 – 3.208  
 
Question 22:  What is Indonesia doing to support the protection of IP rights for SMEs and to improve 
advice and access to justice for SMEs?  
 
Answer:  
 
In order to support the protection of IP rights for SMES and to improve advice and access to justice for 
SMEs, the Gov ernment of Indonesia provides assistance for SMEs to register their IP rights and also 
undertakes some programs to raise awareness regarding IP rights for SMEs.  
 WT/TPR/M/401/Add.1  
 
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  Paragraph 3.209  
 
Question 23:  The UK was interested to see the changes contained in the recent Job Creation Law to 
Article 20 Patent Restriction Law 2016, whereby companies wishing to register patents in Indonesia are 
required to have a manufacturing facility in the country. Could Ind onesia clarify the new requirements 
and explain how they will enable foreign producers to obtain patents in Indonesia?  
 
Answer:  
 
Based on the recent Job Creation Law, revision of Patent Law, patent required in Indonesia with 
implementation:  
a. patent -product involves making, importing, or licensing patent product;  
b. patent -process involves making, licencing, or importing product from the patent process;  
c. patent -method, system, and used involves making, importing, or licensing product from the method, 
system, and used patent.  
 
Follow -up Question 23:  Indonesia did not provide a full response to our Question 23 (The UK was 
interested to see the changes contained in the recent Job Creation Law to Article 20 Patent Restriction 
Law 2016, whereby companies wishing to reg ister patents in Indonesia are required to have a 
manufacturing facility in the country. Could Indonesia clarify the new requirements and explain how 
they will enable foreign producers to obtain patents in Indonesia?).  Can Indonesia please provide 
detaile d information on the new requirements?  Please also provide an explanation of how the changes 
affect the ability of foreign producers to obtain patents in Indonesia and what foreign producers must 
do to obtain a patent.   
 
Answer:  
 
1. According to Article 41 MLHR No 30 of 2019, the patent holder should request the delay to our 
Minister with reason. The reasons may vary based on the circumstances allowed, the reasons are 
listed in the Application Form for implementation delay provided on  our website, applicant may 
choose from this list.    
2. According to Article 39 to 45 MLHR No. 30 of 2019, the Patent Holder must manufacture the product 
or use the process in Indonesia. Manufacturing products or using the process as referred to in 
paragraph  (1) must encourage technology transfer, investment, and/or job provision. If Patent 
Holder cannot manufacture the product or use the process in Indonesia, Patent Holder may request 
for postponement to the Minister stating the reason. The request for postp onement must be filed 
no later than 3 (three) years as of the date of granting a Patent. The postponement to implement 
Patent in Indonesian may be granted for up to 5 (five) years as of the date of the decision to grant 
postponement and can be extended wit h the reason thereof.   
3. In principle there is no substantive check of the reasons provided by the applicants. The request will 
be automatically agreed upon.  
4. According to our amended Law of Job Creation or Omnibus Law (Article 107 Law No 11 of 2020), 
paten t holders still need to implement the registered patent in Indonesia; however, implementation 
of the patent based on this amended law, includes also importation and licensing.  
 
4 TRADE POLICIES BY SECTOR  
Paragraph 4.5  
 
Question 24: Has Indonesia taken input from foreign businesses into consideration in formulating the 
data localisation regulation based on Government Regulation No. 71/2019?  
 
Answer:  
 
Indonesia has taken into account various stakeholders' interests in formulating the regulation, including  
foreign businesses.  
 WT/TPR/M/401/Add.1  
 
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  4.1 Agriculture, Forestry, and Fisheries  
4.1.3 Agriculture  
Paragraph 4.23  
 
Question  25: How does Indonesia seek to address the prohibitively long registration process and 
expensive inspection fees required for the import of animal products?  Does Indonesia plan to institute 
a processing timeline for foreign companies wishing to enter the Indonesian market?  
 
Follow -up Question 25:  Would Indonesia consider instituting a processing timeline for foreign 
companies wishing to impor t animal products into the Indonesian market?  
 
Answer:  
 
For the importation of animal products, through MoA 42 of 2019, has drafted a state approval process 
timeline and the animal products import business unit to enter the Indonesian market. Inspection fees 
follow the standard input costs from the Ministry of Finance, as information related to travel costs varies 
depending on the country to be carried out the onsite review.  
 
4.2 Mining and Energy  
4.2.2.3 Renewable Energy  
Paragraph 4.158 – 4.161  
 
Question  26: Indonesia has stated policy objectives relating to encouraging the use of renewables and 
meeting emissions targets. Simplifying the complex and unclear PLN procurement scheme could 
contribute significantly to meeting these objectives. W hat improvements to the PLN procurement 
scheme are being considered?  
 
Answer:  
 
1. On February 2020 Gov of Indonesia (GoI) has issued regulation on the Utilisation of Renewable 
Energy ( 'RE") Resources for Electricity Supply MEMR ESDM no 04/ 2020;  
2. As part of SOE, PLN 's procurement guideline will refer to MEMR No. 04/2020. such improvement in 
simplifying the complex and unclear procurement scheme is through adjusting method of selection 
and removal of the requirement;  
 
Question  27: Would Indonesia consider rela xing the restrictive local content requirements for solar 
panels, aiding the electrification of rural/hard to reach regions?  
 
Answer:  
 
Indonesia believes that current requirements strike balance between domestic and foreign access. 
However, Indonesia woul d consider any change of requirements in the future that could benefit 
Indonesian people 's welfare.  
 
Question 28: Does Indonesia plan to change the requirement that foreign companies must have 
established office in Indonesia for a minimum of 3 years in order to compete in the procurement process 
with PLN?  
 
Answer:  
 
PT PLN applies requires non -reputable service provid ers to establish an office in Indonesia for a minimum 
of 3 years in order to ensure that service providers are willing and able to work on projects, from a 
technical, legal and financial perspective.  
 
Question  29: Does Indonesia plan to adjust tariff ceiling caps for renewable energy, so they are 
determined on the basis of forward -looking economic value and the social benefits of renewable energy, 
making projects economically viable for foreign investors?  
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- 121 - 
 
  Answer:  
 
GoI currently working on the framework for adjusting and renewing tariffs in order to attract foreign 
investment.  
 
Follow -up Question 29:  Would the Indonesian Government be able to provide further detail on its 
plans to issue these revised frameworks and timelines.  Will businesses (domestic and foreign) be 
consulted as part of this process?  
 
Answer:  
 
PLN as single off -taker in electricity energy in Indonesia shall refer to GoI policy, as GoI currently 
evaluate the impact of tariff for RE for both purpose e.g to attract investor 's investment as well as for 
the sustainability of PLN business as off -taker. GoI clearly understood that some RE p rojects require a 
higher investment cost than others. Therefore, GoI currently working in the framework of looking at an 
optimum point especially for renewing tariffs and providing incentives in order to attract foreign 
investment.  
 
As the global trend wi ll change the playing field as the renewable cost is getting affordable, especially 
PV Solar that has a massive deployment globally which will contribute to lowering the cost of equipment 
and finally impact on lowering electricity tariff. It is one conditi on that shall be considered in the 
Indonesian market as well.  
 
Question  30: Does Indonesia plan to change the foreign ownership cap for small scale renewable 
energy projects under the implementing regulation of the Job Creation law?  
 
Answer:  
 
GoI currently working on the framework for adjusting and renewing tariffs in order to attract foreign 
investment.  
 
4.4 Services  
4.4.3 Financial Services  
4.4.3.1 Banking  
Paragraph 4.201  
 
Question  31: Does Indonesia plan to review the current restrictions on the number of foreign staff 
permitted to work in foreign banks operating in Indonesia, following consultation with foreign banks?  
 
Answer:  
 
OJK Regulation No.37/POJK.03/2017 on the Utilization of Foreign Workers and the Transfer of 
Knowledge in the Banking Sector does not specify a quantitative limit on the number of foreign staff 
permitted to be utilized in either foreign -owned or domestic banks operating in Indonesia.  
 
Follow -up Question 31:  Can you confirm no such quantitative res triction for foreign staff working in 
foreign banks operating in Indonesia is in place?  
 
Answer:  
 
We could confirm there are no quantitative limits for foreign staff working in foreign banks in Indonesia 
stipulated in the regulation (OJK Regulation No.37/P OJK.03/2017). Foreign banks in Indonesia shall 
submit their plans to utilize foreign workers in their business plans submitted annually to OJK and 
supervisors will assess their plans by considering the availability of Indonesian domestic workers.  
 WT/TPR/M/401/Add.1  
 
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  4.4.3.2 Fintech  
Paragraph 4.209  
 
Question  32: Does Indonesia plan to issue comprehensive guidance to Financial Services companies 
on the registration and licencing of new fintech products?  
 
Answer:  
 
Currently, the regulation on new products of financial services companies (banks/insurance 
companies/f intech companies), which include fintech, are following the regulations in the respective 
sectors. If it is new fintech products, they also shall comply to OJK regulations regarding Fintech (POJK 
77/POJK.01/2016, POJK 37/POJK.04/2018 and POJK 13/POJK.02/20 18) that incorporated the basic 
rules on fintech.  
 
It also depends on the result of the regulatory sandbox. If there is a new business model that needs to 
be regulated, OJK will issue a new regulation.  
 
In the future, Indonesia may consider to set up a co mprehensive guidance for new fintech products ' 
registration and licensing, issued by FS companies.  
 
Follow -up Question 32:  Would the Indonesian Government be able to provide further details on its 
plans and the timelines they are working to?  
 
Referring to our previous response, in the future, Indonesia may consider to establish a comprehensive 
guidance for new fintech product s' registration and licensing. At this stage we have not set up detailed 
plan and timeline on the said guidance.   
 
This is because our current focus is on drafting regulations related to the registration and licensing of 
new fintech products, based on res ult of our regulatory sandbox. We prioritize a few business models 
such as aggregator/financial marketplace, project financing, innovative credit scoring, and financial 
planner.  
 
4.4.3.3 Insurance  
Paragraph 4.210 - 4.211  
 
Question  33: Does Indonesia plan to change the current restrictions on the virtual sales of life 
insurance, in accordance with OJK instruction for all financial services institutions to make adjustment 
to the operation of financial institutions and/or minimise the int eraction between people during 
COVID -19, without disrupting the provision of financial services given to the community?  
 
Answer:  
 
As stipulated in the Article 47 OJK Regulation 23/2015, insurance company is allowed to sell insurance 
products through long distance communication devices. Especially for investment linked insurance 
product (or PAYDI in Indonesia acronym), the long -distance marketing should be followed by direct face 
to face meeting.  
 
Taking into account the COVID -19 pandemic and the imple mentation of a large -scale social restriction/ 
distancing policy by the Government, OJK provides relaxation related to marketing of investment linked 
insurance products (PAYDI). During large scale social distancing, insurance companies, and sharia 
insuranc e companies including the sharia business unit may adjust marketing activities for investment 
link insurance product in the form of:  
a. Implementation of face -to-face meeting requirement for marketing of investment linked insurance 
product as stipulated in th e OJK Regulation 23/2015 can be done through digital means or electronic 
media such as video conferencing, video calls or the combination of the media referred to;  
b. Wet signature of prospective policy holders on a form containing a statement that the prospe ctive 
policy holder, the insured, or the participant has received an explanation and understanding the 
benefits, costs, and risks of the insurance product offered can be replaced with an electronic WT/TPR/M/401/Add.1  
 
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  signature as stipulated in the provisions legislation rega rding information and electronic transactions 
(ITE).  
 
Paragraph 4.212 – 4.216  
 
Question  34: Would Indonesia consider extending the duration of its four -year rule, whereby a new 
product designed by a foreign reinsurer can be reinsured with the foreign reinsurer for a maximum of 
four years, after which new policies are subject to Indonesia 's mandatory cession rules?  
 
Answer:  
 
There is no provision changes regarding the extension period of new insurance products development 
by a foreign reinsurer in OJK Regulation No. 39/POJK.05/2020 concerning the Second Amendment to 
OJK Regulation number 14/POJK.05/2015 concerning Own Retention and Reinsurance.  
 
Question  35: Would Indonesia consider reducing foreign ownership restrictions for insurers who can 
provide access to capital for cover for natural catastrophes and reduce the amount of capital that ceding 
insurers need to hold in order to meet their obligations?  
 
Answer:  
 
The regulation on foreign ownership of insurance companies in Indonesia is referring to GR 14/2018 and 
its amendment GR 3/2020.  
 
Question  36: Could Indonesia provide an update on the Ministry of Finance 's future intentions for 
regulations GR3/2020 on Foreign Ownership of Insurance Companies?  
 
Follow -up Question 36: The UK Government would welcome further clarification on this matter.  
 
Answer:  
 
Government Regulation No. 3 of 2020 on Foreign Ownership of Insurance Company regulated an 
exemption for a certain condition where foreign ownership could exceed the limitations of 80% as in 
Government Regulation No. 14 of 2018, but in general, this regulation is still in line with Presidential 
Regulation No. 44 of 2016 2016 where for insurance companies, maximum foreign ownership is 80%.  
 
 
4.4.4 Telecommunications  
Paragraph 4.225  
 
Question 37:  The promotion of local "Over-the-top" services (telecoms, internet services, e -commerce) 
places limitations on foreign participation, including FDI limitation and local presence and data 
localisation requirements. How does Indone sia plan to evaluate the impact of these measures on SMEs?  
 
Follow -up Question 37:  The UK Government would welcome further clarification on this matter.  
 
Answer:  
 
According to the Presidential Regulation No. 44/2016, the foreign participation for "Over-the-top" 
services (telecoms, internet services, e -commerce) is open 100% for investment value above 
IDR 100 billion; if it is below IDR 100 billion, the maximum 49% are in the form of joint ventures with 
local companies.  
 
Currently, Indonesia is still  discussing the implementing regulation regarding "Over-the-top" services.  
 WT/TPR/M/401/Add.1  
 
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  4.4.6 Tourism   
Paragraph 4.259   
 
Question 38 : Could Indonesia provide further information on the National Working Competency 
Standards implemented in 2015, and how these apply to individuals travelling to Indonesia on 
short-term work contracts or through intra -company transfers (mobility, Mode 4 of GATS)?  
 
Follow -up Question 38:  The UK Government would welcome further clarification on this matter.  
 
Answer:  
 
National Working Competency Standards was implemented in 2015 designed for individuals to have 
competency standards based on their level of competencies. Both any foreign individuals who travel on 
short-term contracts and intracompany transfers should apply to Presidential Regulation on Foreign 
Workers (20/2018).  
  
4.4.7 Distribution services with a specific focus on e -commerce   
Paragraph 4.267   
 
Question 39:  Could Indonesia provide further details on GR No. 80 of 2019 on 'Trading Through 
Electronic Systems ', and how it relates to areas such as  data localisation, digital trade taxes and 
protection of personal data and consumer rights?  
 
Answer:  
 
There is no pr ovisions regarding data localization, but the Minister may foster trading through electronic 
system, one of them by providing Business Entity Database and Domestic Product (Article 77 GR 
No. 80/2020 PSME)  
 
UK QUESTIONS ON GOVERNMENT REPORT (G401)  
 
4 TRADE AND TRADE RELATED POLICY   
4.2.3 Manufacture    
Paragraph 4.17   
 
Question 40:  Could Indonesia  provide an update on its targets to initiate local production of electric 
vehicles (EV)? In addition, could Indonesia provide details on any regulations neede d to effect this 
policy, and on how international trade is likely to be affected?    
 
Follow -up Question 40:  The UK Government would welcome further clarification on this matter.  
 
Answer:  
 
Indonesia targets that 30% of the total production of 4 and 2-wheeled vehicles in 2035 are electric 
vehicles that are more environmentally friendly. Some of the regulations offered include energy reform 
(periodically eliminating subsidized fuel - premium), the use of electric vehicles for public transportation, 
etc. 
 
Paragraph 4.19  
 
UK Question 41: The Making Indonesia 4.0 roadmap for developing the manufacturing sector outlines 
10 national initiatives including "to empower MSMEs ". What specific initiatives does Indonesia plan to 
introduce to empower MSMEs in the manufacturing industry?  
 
Answer:  
 
Government facilitates digitalization program for SMEs through the provision of a) capacity building for 
SMEs which enable them to utilize technology and e -commerce as their tool of business; b) technical WT/TPR/M/401/Add.1  
 
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  assistance for business management; c) mar ket access development (e.g digital catalogue, e -catalogue 
in LKPP, virtual exhibition facilitation, and digital market place).  
 
4.2.8 Intellectual Property Rights    
Paragraphs 4.39 - 4.43   
 
Question 42:  Has Indonesia progressed any plans to adopt the Art ist Resale Right?  
 
Answer:  
 
Artist Resale Right is to be addressed in the amendment of Copyright Law in the future.  
 
Follow -up Question 42:  Would Indonesia be able to clarify when the Copyright Law would be amended 
and will there be business consultation in the drafting of the new regulations?  
 
Answer:  
 
Amendment of Copyright Law is not listed in the National Legislation Program 2021, howeve r, the 
discussion, preparation to draft academic review, and relevant studies for the amendment have been 
started.   
 
As set out in Indonesia law on the establishment of laws and regulations, arrangement and improvement 
to the mechanism are necessary to is sue a sustainable and applicable law and regulation. Thus, each 
stage should be followed starting from planning, evaluation, and review, and a public hearing to collect 
inputs and consult with relevant stakeholders.  
 
Question 43:  Could Indonesia provide further details on two of its new online systems: firstly for the 
registration of patent, trademark, and industrial design launched on 17 August 2019, and secondly for 
the online copyright recording system? Please provide detail on the implications  for creator 's rights, 
broadcasting and audio visual.   
 
Answer:  
 
Registration of patent, trademark, copyright and industrial design is conducted electronically (e -filing) 
as it can be seen in our website, www.dgip.go.id fully functioned. Manual booklets ar e available to 
download so the applicant should find no problem going through it. The system will continue to develop, 
particularly amid the pandemic of COVID 19 in order to minimize physical interactions. The implication 
of online copyright recording syst em for creator 's rights, broadcasting and audiovisual has been 
accommodated under the Copyright Law, especially in relation to the economic rights.  
 
Paragraph 4.42 -4.43 
 
Question  44: Indonesian Law requires companies to pay a costly annual fee to register their patents. 
Will Indonesia adjust this requirement to bring it in line with global norms?  
 
Answer:  
 
The annual fee is already adjusted to the global norms, respectively.  WT/TPR/M/401/Add.1  
 
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  CHINE SE TAIPEI  
PART  I: REGARDING  THE  SECRETARIAT  REPORT  (WT/TPR/S/401)  
 
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.4 Transparency  
 
Page 43 (Para 2.20)  
The Secretariat Report notes that Indonesia attaches importance to making laws more transparent and 
readily accessible. However, most laws are still published in the Bahasa Indonesia language only (some 
are translated into English, depending on the need or interest) in the Official Gazette. In addition, the 
websites of re levant ministries and agencies contain information mostly in the Bahasa Indonesia 
language.  
 
Question(s):  
In order to facilitate the ease of doing business by foreigners in Indonesia, does Indonesia plan to 
provide English versions of laws and related info rmation on websites of relevant ministries and agencies?  
 
Answer:  
 
Indonesia does not have any plan to provide the official English translation, due to English is not the 
official language in Indonesia. However, for several commercial regulations and information 's, the 
unofficial English version have been provided through each ministries/agencies' website.  
 
2 TRADE AND INVESTMENT REGIMES  
2.3 Trade Agreements and Arrangements  
2.3.2 Regional and preferential agreements  
 
Page 51 (Para 2.36) 
In 2012, ASEAN countries initiated the negotiation of the Regional Comprehensive Economic Partnership 
(RCEP) with their six ASEAN FTA partners (Australia, China, India, Japan, the Republic of Korea, and 
New Zealand). The RCEP were finally sign ed on 15 November 2020.  
 
Question(s):  
When does Indonesia expect to complete its domestic procedures and repository procedures for the 
Secretary -General of ASEAN?  
 
Answer:  
 
Indonesia need to seek further clarification on what agreement that Chinese Taipei refers to.  Regarding 
the ASEAN Agreement on ecommerce the draft is currently being discussed in the house of 
representative.  
 
3 TRADE POLICIES AND PRCTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restri ctions, and licensing  
3.1.5.2 Import licensing  
 
Page 85 (Para 3.60) 
The Secretariat Report notes that according to the authorities, the product categories subject to import 
licensing increased from 30 to 40 over the review period (Table A3.4), with new req uirements being 
introduced on, inter alia : dairy; fisheries and forestry products; feed corn; saccharin; cement (and 
clinker cement); textile and batik textile products and batik motifs; iron, steel or alloy, and derivative 
products; hand tools; refrigeration and cooling system -based goods; and t yres.  
 WT/TPR/M/401/Add.1  
 
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  Question(s):  
1. Could Indonesia explain how it ensures  that its import licensing system remains simple, transparent 
and predictable in accordance with the Agreement on Import Licensing  Procedures?  
2. Could Indonesia provide the rationale for its import licensing requirements for the following 
products: textiles; iron, steel or alloy and their derivative products; and hand tools?  
 
Answer:  
 
1. The import licensing is aimed to further smooth the flow of imported products.  
2. The policy basis with re gard to import licensing in Indonesia are to provide business certainty, 
accelerate administrative process, and to support smoother importation process.  
 
3 TRADE POLICIES AND PRCTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.6 Anti-dumping, countervailing, and safeguard measures  
3.1.6.1 Anti -dumping and countervailing  
 
Page 86 (Para 3.67)  
During the period under review, recourse to anti -dumping action dropped slightly but measures in force 
rose. Between 2013 and 2019 (end -June),  Indonesia initiated 40 anti -dumping investigations (46 in 
2006-12) involving hot -rolled (steel) coil (China, Belarus, India, Kazakhstan, Republic of Korea, 
Malaysia, Russian Federation, Thailand, and Chinese Taipei), cold -rolled (steel) coil/sheet (China,  Japan, 
Chinese Taipei, Republic of Korea, and Viet Nam), hot -rolled (steel) plate (China, Singapore, and 
Ukraine), tinplate (steel) (China, Republic of Korea, and Chinese Taipei), I and H section (China), 
ammonium nitrate and polyethylene terephthalate (C hina, Republic of Korea, and Malaysia), wheat flour 
(India, Sri Lanka, and Turkey), cavendish bananas (the Philippines), spin drawn yarn (China), polyester 
staple fibre (China, India, and Chinese Taipei), and biaxially oriented polypropylene (Thailand, and  
Viet Nam).100 As at end -June 2019, 27 anti -dumping measures were in force on nine products, mainly 
hot-rolled coil (7 cases), biaxially oriented polypropylene (5), hot -rolled plate (3), tinplate coil/sheet (3) 
and polyester staple fibre (3); 20 measures w ere in place in June 2013.101 Action affected mostly 
products originating in Asia (23, China (8), Thailand (4), India (3), Chinese Taipei (3), and Malaysia (2)) 
and, to a lesser extent, Commonwealth of Independent States countries (Belarus, Kazakhstan, Rus sian 
Federation, and Ukraine). All final measures consisted of definitive duties. Eighteen measures were 
reviewed and, in most cases, extended at least once for periods of up to six years.  
 
3.1.6.2 Safeguards  
 
Page 86 (Para 3.70)  
During the period under r eview, recourse to safeguard action dropped but Indonesia remained one of 
the most frequent initiators of investigations and resulting actions. Between 2013 and 2019, it initiated 
11 safeguard investigations (20 in 2006 -12), and imposed 9 measures (11 in 2 006-12); virtually all 
measures were in the form of customs duty (one quota) (Table 3.5). As at February 2020, 
one provisional and four (of which one extended) definitive safeguard measures were in place, and 
two investigations were underway (Table 3.5). At its previous Review, Indonesia's relatively frequent 
recourse to safeguards was attributed to greater industry awareness of the availability of trade remedies 
to counter the negative effects of trade liberalization.  
 
Question(s):  
1. Could Indonesia provide justification for the still relatively high number of investigations it has 
initiated, as well as safeguard measures and anti -dumping measures it has imposed?  
 
Answer:  
 
a. In accordance with the provisions of the WTO Agreement on Saf eguards, Members are required to 
apply safeguard measures only to extent necessary to prevent or remedy serious injury. So there 
is no limitation on the number of safeguards imposed as long as it aims to prevent or remedy serious 
injury and meet the requir ements of Safeguards investigations and Safeguards imposition 
requirements.  WT/TPR/M/401/Add.1  
 
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  b. Indonesia has evaluated the unforeseen developments as a result of an increase in imports according 
to the provisions of Article XIX of GATT 1994. In the safeguard investigation pr ocess, the evaluation 
of increased imports is to determine the existence of the unforeseen developments as a reasoned 
and adequate explanations  
 
The number of the investigation is (mostly) based on the application received from the domestic 
industry. Most of the imposition is continuation of the measures.  
 
2. Has Indonesia considered that "Unforeseen Development," as stipulated in Article XIX of GATT, is a 
legal requirement for imposing safeguard measures? If so, how does I ndonesia  evaluate "unforeseen 
development "? 
 
Answer:  
 
Indonesia has evaluated the unforeseen developments as a result of an increase in imports according 
to the provisions of Article XIX of GATT 1994. In the safeguard investigation process, the evaluation of 
increased impor ts is to determine the existence of the unforeseen developments with a reasoned and 
adequate explanation  
 
3 TRADE POLICIES AND PRCTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.7 Other measures affecting imports  
 
Page 88 (Para 3.73)  
During the review period, Indonesia continued to use local content requirements (LCRs) to protect and 
develop domestic industries. Domestic legislation in several areas enforces LCRs. Law No. 7/2014 sets 
a framework for promoting the use of locally produce d goods. Law No. 3/2014 (Articles 85 -86) mandates 
the use of LCRs in government procurement, and is further regulated by PR No.16/2018 (Article 66) 
which requires the use of suppliers of goods or services with a local content plus a corporate contribution 
value exceeding 40%. Extension of the import duty exemption scheme for the establishment or 
modernization of a factory in an industrial development area is conditional upon the use of at least 30% 
LCRs. Product - or activity -specific LCRs apply to, inter al ia: oil and gas projects (from 61% in 2012 to 
64% by 2024); power generation (varying levels on goods and services used in power plants, including 
steam, hydroelectric, geothermal (with a combined value of minimum local contents in goods and 
services varyi ng from 28.95% to 42%, depending on the development capacity), gas, solar (60% in 
solar modules and 100% in services, since 2019), and in the transmission and distribution network); 
4G Long -Term Evolution (LTE) enabled devices (30%) and base stations (4 -%) (base stations, cell 
phones, tablets, and palmtop computers) since January 2017; equipment used in certain wireless 
broadband services (30% for subscriber stations, 40% for base stations) and all wireless equipment 
(50%); telecommunication operators ' capital expenditures on components or services for network 
development (minimum 50%); Indonesian film broadcasting/projection (60% of all hours for a 
consecutive period of six months); franchising (80% of equipment and inventory, unless waiver 
granted); and mo dern retail establishments (at least 80% of the total amount and types of goods sold).  
 
Question(s):  
Indonesia 's existing laws regulate local content requirements (LCRs), such as a framework for promoting 
the use of locally produced goods, the use of LCRs in government procurement, and the use of suppliers 
of goods or services with a local content plus a corporate contribution value exceeding 40%. These high 
LCRs have greatly impacted foreign firms in Indonesia. Will Indonesia consider easing certain l ocal 
content limitations in order to improve its investment environment?  
 
Answer:  
 
In terms of GP, the obligation to use domestic products is performed if there are participants that offer 
goods/services with the national contribution value plus the corpo rate contribution value of a minimum 
of 40%. However, it should be noted that the procurement of imported goods may be conducted if the 
goods cannot be produced domestically or domestic production volume is unable to meet the demand.  
 WT/TPR/M/401/Add.1  
 
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  Question(s):  
Could In donesia indicate when it intends to modify LCRs for government procurement and launch its 
accession process to the GPA?  
 
Answer:  
 
Currently, the discussion regarding the obligation to use domestic products emerges in certain 
government meetings; however, it has not been talked about the modification as it requires a political 
decision from many stakeholders. In terms of accession, Indonesia needs several considerations from 
several aspects, including the competitiveness of its domestic suppliers.  
 
3 TRADE POLICIES AND PRCTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.1 Industrial property  
3.3.7.1.1 Patents  
 
Page 140 (Para 3.213 ) 
Under the 2016 Law, parties are required first to settle patent infringement disputes through mediation 
with the Patent Appeal Commission, prior to filing an appeal with the Commercial Court.  
 
Question(s):  
Article 154 of Law No. 13 of 2016 on Patents states that "in the event of a criminal charge  against a 
simple Patent or Patent infringement, the parties must first settle it through mediation. " If the patent 
holder, however, only requests  compensation for infringement via a civil lawsuit without filing a criminal 
charge, is he/she still required to first settle  the dispute  through mediation?  
 
Answer:  
 
Under Article 154 of Law No.13 of 2016, in the event of criminal lawsuit against Patent or Simple Patent 
infringement, mediation must be the first course taken to settle the dispute. If Report of Co mplaint is 
addressed to the PPNS of Intellectual Property, the parties must first settle the dispute through 
mediation, before the case is presented to the Public Prosecutor.  
 
However, to file a claim for compensation, the Patent Holder may file to the Com mercial Court in 
accordance with the authority and position of the commercial court as a special court (Law Number 48 
of 2009 concerning Judicial Power). A lawsuit for infringement in the field of patents is filed with the 
Chief Justice of the Commercial C ourt and is in accordance with the lawsuit procedure in Article 144 of 
Law Number 13 of 2016 concerning Patents.  
 
Under Regulation of the Supreme Court of the Republic of Indonesian Number 1 of 2016 on Mediation 
Procedures in Court, before the commencement  of proceeding, Judge, Mediator, the parties and/or their 
attorneys must follow the procedures for settling dispute through mediation.  
 
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.1 Industrial property  
3.3.7.1.1 Patents   
 
Page 1 40 (Para 3.214 ) 
Regarding to paragraph 3.214 on page 140 of the WTO Secretariat report (WT/TPR/S/401), Table 3.7, 
last year 's patent approvals showed a significant upward trend compared to 2013 -2018.  
 
Question(s):  
According to Tab le 3.7 of paragraph 3.214 of the above -mentioned report, last year 's patent approvals 
showed a significant increase compared to 2013 -2018. Is this due to accelerated processing? If so, what 
measures did Indonesia adopt to speed up processing?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
One of the measures is going online. We are also going to university and giving feedback for their 
application.   
 
3 TRADE POLICIES AND PRCTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.2 Copyright  
 
Page 144 (Para 3.228)  
Three new copyright -related regulations were issued over the review period: ……  
Joint Regulations of Minister of Law and Human Rights and Minister of Communication and Information 
Technology No. 14/2015 and No. 26/20 15 on Taking Down Content and/or User's Access Right Infringing 
Copyright and Related Rights in Electronic System implement provisions under Article 56(2) of Law 
No. 28/2018. They contain provisions on: procedures of filing reports on copyright infringement; 
procedures for report verification; taking down content and/or access rights; re -opening content and/or 
user's access rights; and legal remedies.  
 
Page 145 -146 (P ara 3.234)  
Additionally, in 2018, the DGIP's Directorate of Investigation and Dispute Settlement commenced the 
pre-emptive programme of IP, by issuing recommendations to the Ministry of Communication and 
Informatics to block access to websites infringing I P. From January 2018 to end -February 2020, it 
recommended closing 604 websites.  
 
Question(s):  
1. Could Indonesia please provide some background information about the reasons for revising  Articles 
55 and 56 of the Copyright Act and the Joint Regulations of  the Ministry of Law and Human Rights and 
Ministry of Communication and Information Technology mentioned in paragraph 3.228?  
 
2. How effective have the provisions been? What are the stakeholders ' opinions about these provisions?  
 
Answer for Question No. 1 and 2:  
 
Article 55 and Article 56 of Copyright Law are by far effective to block access rights; therefore, there is 
no reason to revise the provisions.  
 
It is effective enough to block access rights. In this regard, Ministry of L aw and Human Rights only give 
recommendation and the closing down or blocking of access will be carried out by the Ministry of 
Communication and Informatics.  
 
3. According to Articles 55 and 56 of the Copyright Act, under what circumstances should the Mini stry 
of Law and Human Rights file a claim with the court within 14 days? How does the court conduct the 
review process? Will the court  determine whether  or not  the blocked website infringes  copyright?   
 
Answer:  
 
It needs to be clarified that based on article 55 section (4) the Minister of Law and Human Rights does 
not file a claim with the court within 14 days. According to article 55 section (3) "……Upon request of the 
complainant the Minister will recommend the minister administering government affairs  in the field of 
telecommunications and information to block in part or in whole the Copyrights infringing the content in 
the electronic system or make the services of the electronic system inaccessible. " 
Followed by that in section (4), In the event of th e blocking of Internet sites as referred to in section  (3) 
is done entirely, within a period of 14 (fourteen) Days after the blocking, the Minister is obligated to 
request a court provision, not to file a claim to the court.  
 
Whether a website infringes co pyright or not is determined in the verification meeting conducted by the 
two Ministries. Further provisions regarding the implementation on blocking content and/or user 's access WT/TPR/M/401/Add.1  
 
- 131 - 
 
  right that infringes Copyrights and/or Related Rights in the electronic syste m or rendering the electronic 
service system are stipulated in Joint Regulations of Minister of Law and Human Rights and Minister of 
Communication and Information Technology No. 14/2015 and No. 26/2015 on Taking Down Content 
and/or User's Access Right Infr inging Copyright and Related Rights in Electronic System.  
 
3.1.6.1 Anti -dumping and countervailing  
 
Regarding to the current steel trading between the Separate Customs Territory of Taiwan, Penghu, 
Kinmen and Matsu (TPKM) and Indonesia, our main competitors are from Japan and South Korea and 
their import tax rates have been improved and adjusted to 0% year by year such that our products 
suffer from relatively high tax rate 15~20% since 2015. Apart from tariff barriers, tax exemption quotas 
also ma kes our situation harder.  
 
Question(s):  
Could Indonesia elaborate on the procedures and related regulations concerning tax exemption quotas 
for steel products? We suggest that Indonesia allocate tax exemption quotas for steel products fairly to 
facilitate the importation of steel products to the Indonesian market.  
 
Answer:  
 
Indonesia doesn 't apply any quota for steel products.  
 
 WT/TPR/M/401/Add.1  
 
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  NEW ZEALAND  
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/ 401) 
 
SECTION 3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, valuation and requirements  
3.1.1.1 Customs procedures  
WT/TPR/G/401, page 66, paragraph 3.21  
 
Background  
Paragraph 3.21 of the Secretariat 's Report states, "So far Indonesia has never submitted a pre -shipment 
inspection notification per se  to the WTO " and paragraph 2.3.1.3 on page 48 notes that notifications on 
pre-shipment inspection "…were still under discussion at the relevant ministries. " 
 
Question(s):  
• New Zealand notes that the transition to elect ronic certification and direct government to 
government exchange of assurances has removed the rationale for pre -shipment inspections. Can 
Indonesia confirm it is reviewing this measure in light of these developments?  
• If not, can Indonesia provide a timefr ame on notification to the WTO and risk justification for the 
duplication of inspection of horticultural products, both in the country of export and again on arrival 
in Indonesia?   
 
Answer:  
 
The VPTI verification conducted by Indonesia is not under PSI arr angement, but under TFA (Art. 10.5). 
Indonesia did not conduct duplication of inspection on horticultural products. The inspection is either in 
the country of export or on arrival in Indonesia.  
 
3.1.5 Import prohibitions, restrictions and licencing  
3.1.5.2 Import licencing  
WT/TPR/G/401, page 84, paragraph 3.58 to 3.63  
 
Background  
Paragraph 3.58 of the Secretariat 's Report states "Indonesia 's policy objective has been to structure 
licencing procedures for the smooth flow of goods ". New Zealand notes Indonesia 's progress towards 
simplified licencing online and digital signature however further progress is required to remove trade 
constraining effects resulting from the implementation of the policy.  
 
Paragraph 3.62 notes that some products need both an  import recommendation from a relevant 
technical ministry and an import license from the Ministry of Trade.  
 
Paragraph 3.63 of the Secretariat 's Report notes that there are continued concerns raised regularly by 
WTO Members regarding the complexity, lack o f transparency, and trade -impairing effects of Indonesia 's 
import licencing system.  
 
Para 3.61 references Table A3.4  which notes the legislative basis for import licensing being to only 
allow imports of meat and horticulture products when domestic production is deemed to be insufficient. 
New Zealand understands that the Omnibus Law on Job Creation will remove this trade restrictive link.  
 
New Zealand has previously expressed concerns about the failure to issue import recommendations 
(RIPHs) from the  Ministry of Agriculture (MoA) and import approvals/licenses from the Ministry of Trade 
(MoT) for horticultural products.  
 
Question(s):  
• Could Indonesia provide further details on the policy objective behind its efforts to structure licencing 
procedures for the smooth flow of goods, and the measures it is using to ensure implementation 
does not have trade limiting effects?  
 WT/TPR/M/401/Add.1  
 
- 133 - 
 
  Answer:  
 
Indonesia views that the structure of licensing procedures intends to ensure the quality, conformity and 
safety o f the imported goods, as well as streamlining the licensing of import procedures.  
 
• What steps is Indonesia taking to ensure that both import recommendations from ministries with 
technical competence and import licenses from the Ministry of Trade can be pro cessed in a timely 
manner and enable improved flows of imported products?  
 
Answer:  
 
Several imported products required certain advanced examination in order to obtain import 
recommendation which is timely consumed. It affects the timely manner regarding on  obtaining both 
import recommendation and import licensing.  
 
• What steps is Indonesia taking to ensure that horticultural import recommendation (RIPH) 
applications for the upcoming import season are processed in a timely manner to ensure RIPH does 
not have a negative impact on trade?  
 
Answer:  
 
The process of issuing import recommendations should accordance with applicable regulations and 
within the approval of the Minister of Agriculture.  
 
• In parallel, how will Indonesia ensure the effective issuance of horticultural import approvals from 
MoT to ensure their issuance does not have a negative impact on trade?  
 
Answer:  
 
Indonesia will be examining the impact of RIPH in the near future.  
 
• Could Indonesia please provide an update on progress toward addressing WTO Members concerns 
regarding Indonesia 's import licencing system and ensuring full compliance with WTO obligations?  
 
Answer:  
 
Indonesia is improving the import licensing regime to comply with WTO regulations, i.e. import licensing 
regulations regarding the importation of animals and animal products as well as the importation of 
horticultural products.  
 
• Will the Omnibus Law on Job Creation change any of the current regulatory settings for Import 
licensing?  
 
Answer:  
 
Job Creation Law is improving business import licensing regime, currently, Indonesia is still under 
process of discussing the implementation of the regulation.  
 
• How will the Omnibus Law on Job Creation remove the trade restrictive link between import licensing 
and domestic pr oduction calculations found in the legislation listed in Table A3.4?  
 
Answer:  
 
The Omnibus Law on Job Creations focuses on nine broad areas, such as simplification of business 
permits and ease of doing business.  
 WT/TPR/M/401/Add.1  
 
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  SECTION 3.3 Measures Affecting Production a nd Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.2 SPS Measures  
3.3.3.2.4 Live animals, meat and dairy products  
WT/TPR/S/401 page 121, paragraph 3.145  
 
Background  
Paragraph 3.145 of the Secretariat 's Report notes that "Since 2017, fees have been levied for the 
inspection of animal products under GR No. 35/2016 (previously, the costs were borne by the Indonesian 
Government); fees charged depend on the number of establishments to be inspected, the number of 
auditors, and the number of audi t days. According to the authorities, they are usually more -or-less 
USD 10,000, depending on the distance the auditors must travel, and air -fare and accommodation 
costs. " 
 
We understand that the objective of the Ministry of Finance 's Government Regulation 35/2016 on Types 
and Rates of Non -Tax Sate Revenue Applicable to the Ministry of Agriculture is to reduce the financial 
burden upon the State Budget created by the need to approve and inspect foreign companies in order 
to export animal products to Indonesi a. 
 
While 'cost-recovery ' fees may be charged for measures justified as necessary to manage identified SPS 
risks as specifically identified as relevant to the bilateral trade, such fees must reflect real and actual 
costs.  
 
We are concerned that regulation  35/2016 not only imposes processes not otherwise justified as 
necessary for the management of SPS risks as relevant to the bilateral trade, but also goes beyond only 
recovering costs to the point that it generates revenue and places a financial burden on exporters.  
 
The regulation would appear to be designed to generate revenue as opposed to recover reasonable costs 
and both the process and the cost is having a significant trade restricting effect on our animal product 
exports.  
 
Question(s):  
• Can Indonesia provide all relevant information on the basis for the fees stipulated in regulation 
35/2016 and how they are determined as reflecting real and actual costs .    
 
Answer:  
 
The fees for public services are formulated based on the following considerations:  
a. the impact of imposed fees to the general public and business;  
b. the actual costs incurred to deliver such services;  
c. fairness; and/or  
d. Government policy.  
 
3.3.3 Sanitary and phytosanitary requirements   
3.3.3.2 SPS Measures  
3.3.3.2.6 Halal requirements   
WT/TPR/G/401, page 122, paragraph 3.151  
 
Background  
Paragraph 3.151 of the Secretariat 's Report notes that certificates for halal products "must be obtained 
from the newly established Halal Products Certification Agency (BPJPH ) under the Ministry of Religious 
affairs ", and that "All halal certificates issued by foreign halal certifier bodies (LHLNs) that cooperate 
with the BPJPH can be accepted ". The report also notes that "Importers must register halal certificates 
with the BP JPH, and place the registration number on the package before the product may be distributed 
in Indonesia. " 
 WT/TPR/M/401/Add.1  
 
- 135 - 
 
  Question(s):  
• Could Indonesia elaborate on the process for cooperation that foreign halal certification bodies need 
to undertake with BPJPH?  
 
Answer:  
 
Foreign halal institutions that can hold a cooperation should be established by the government or 
state-recognized Islamic religious institutions. The foreign halal institution is accredited by an 
accreditation agency in the country that obtain re cognition from a regional or international accreditation 
cooperation organization. The accreditation agency in the country is an institution that has collaborated 
to develop mutual recognition scheme and mutual acceptance of the conformity assessment.  
 
Accreditation in the country is carried out in accordance with Indonesia 's halal standards set by 
non-ministerial government agencies that carry out government tasks in the field of standardization and 
conformity assessment.  
 
Question(s):  
• Could Indonesia elaborate on the process importers will need to undertake to register their halal 
certificates with BPJPH, and confirm whether this applies only to retail ready product which is 
intended for direct distribution into commerce (not for bulk manufac turing product)?  
 
Answer:  
 
Products that are included in the compulsory halal category in accordance with the provisions of the 
halal assurance Law, must be halal certifed when entering, circulating and being traded in the territory 
of Indonesia, either in the form of products that are directly received by consumers or B to B products.  
 
SECTION 3.3.6 Government Procurement  
WT/TPR/S/401, page 130, paragraph 3.178  
 
Background  
Paragraph 3.178 of the Secretariat 's Report indicates that Indonesian authorities need to consider 
various aspects before joining the Government Procurement Agreement (GPA).  
 
Question(s):  
• What specific aspects are the Indonesian authorities considering and what is Indonesia 's timeline 
for considering these aspects?  
 
Answer:  
 
Indonesia needs consideration for several aspects, such as the readiness of its domestic suppliers to 
compete with foreign suppliers inside and outside Indonesia as well as political approval that involve 
many stakeholders.  
 
SECTION 3.3.6 Government Procurement  
WT/TPR/S/401, page 133, paragraph 3.188  
 
Background  
Paragraph 3.188 of the Secretariat 's Report indicates that procurement of imported goods can be carried 
out if the goods are not yet produced in Indones ia or the volume of domestic production is insufficient.  
 
Question(s):  
• Are these opportunities for foreign companies to supply goods to the Indonesian government 
publicly advertised and if so, where?  
 
Answer:  
 
The all tenders are publicly advertised in inaproc.id/tender.  WT/TPR/M/401/Add.1  
 
- 136 - 
 
  • What procedures are followed by government authorities where they intend to obtain imported 
goods as a result of the circumstances described in paragraph 3.188?  
 
Answer:  
 
General Provision on Import licensing procedures ap plied in obtaining imported goods for government 
procurement.  
 
REPORT BY INDONESIA (WT/TPR/S/401)  
SECTION 4  
WT/TPR/S/401, page 143, paragraph 4.151  
 
Background  
WT/TPR/S/401, section 4, page 183, para 4.151 states that "During the review period, very significant 
changes to Indonesia 's fuel subsidy policy were made. "  
 
While Indoensia made significant changes to its fossil fuel subsidy policy in 2017, some policies  have 
since been reintroduced with subsidies on low grade petroleum gasoline and deisel, LPG (gas), and 
kerosene fuel. We note the Indonesian Government justifies these subsidies as necessary to target 
poverty. The Indonesian Government also provides fundi ng to its sole state -owned electricity company 
that supports coal fired power production. Under the WTO definition this support is classified as a 
subsidy, but Indonesia 's own definition does not include indirect subsidies. Apart from the environmental 
concerns, the lack of competiton in the market and support for fossil fuels has a negative impact on 
New Zealand 's commercial interests in the renewable energy sector.  
 
Question(s):  
• What have been the economic, social, and environmental impacts of Indonesia 's fossil fuel subsidy 
policy changes?  
 
Answer:  
 
Indonesian fossil fuel policy changes resulted in a reduction in fuel subsidy amount disbursed. In 
addition, the Kerosene to 3 Kg Cylinder LPG conversion program also aims to replace Kerosene fuel with 
cleaner fuel.  
 
• What have been the key drivers of fossil fuel subsidy policy change in Indonesia?  
 
Answer:  
 
The fossil fuel policy change is intended to reach the right consumers and to increase the efficiency of 
the use of the State Revenue and Expenditure Budget.   
 
• What are the key lessons from Indonesia 's experience implementing these policy changes? This ma y 
aid other countries to adopt similar policy settings on fossil fuel subsidies.  
 
Answer:  
 
Key lessons from Indonesia's experience implementing these policy changes i.e Government has to 
considers some aspects such as Indonesia's finance capacity, customer 's purchasing parity, and social 
factors.  
 
• What is the rationale for keeping diesel, LPG (gas), petroleum gasoline, and kerosene fuel retail 
prices below world market prices?  
 WT/TPR/M/401/Add.1  
 
- 137 - 
 
  Answer:  
 
The rationale of the said policy is intended to ensure easier access f or diesel, LPG, petroleum gasoline 
and kerosene for the right consumers (lower income people society).  
 WT/TPR/M/401/Add.1  
 
- 138 - 
 
  MALAYSIA  
Government Report  
 
Page 3  
 
1.3. During the same 2015 -2018 timeframe, the Indonesian economy grew steadily at an average rate 
of 5.0% per year, higher than the 4.5% per year average incurred by other developing countries. 
Amongst the factors contributing to this achievement were the implementation of various structural 
reforms, including policies that improve the investment climate, enhance industrial competitiveness, 
upgrade logistics efficiency, stimulate export, promote tourism, and strengthen people's purchasing 
power.  
 
Question  
 
1. Appreciate if Indonesia could indicate on how to strengthen people 's purchasing parity?  
 
Answer:  
 
During the Covid -19 Pandemic, Indonesia provide social support for the lower middle -income people in 
terms of distribution of basic food stuff to eliminate the negative impact of the pandemic.  
 
Page 7 -8 
 
2.11. In general, state budget realization – i.e. its use r elative to its declared commitments – showed 
good performance in the years between 2014 to June 2019. In terms of state income and revenue 
including grants, there incurred a positive trend until the end of June 2019. In the 2019 state budget, 
revenues and grants were estimated at IDR 2,165.11 trillion, an increase of 11.39% from the 2018 
figure. As of June 2019, income from state revenues and grants reached IDR 898.76 trillion or 41.51% 
of the 2019 estimate or an increase by 7.84% compared to that in the pr evious year. Tax revenue, 
which reached IDR 688.94 trillion or 76.65% of total state revenue and grants, contributed to the 
increase.   
 
Question  
 
2. There are some concerns over Indonesia 's budget realization and disbursement pace during the 
COVID -19 pandemic, what are the new measures or practise implemented by Indonesia to speed 
up the process?  
 
Answer:  
 
Related to Covid -19 pandemic mitigation over Indonesia's budget realization and disbursement, 
Government through Ministry of Finance has formed a Mo nitoring and Evaluation team to measure and 
take into action as well as to monitor and to evaluate the state budget disbursement on C OVID -19 
mitigation program which is known as National Economic Recovery Program (PEN).  
 
The Monitoring and evaluation team  regularly conducts meetings to monitor and evaluate state budget 
realization and its disbursement including budget through the line ministries' budget allocation. It is to 
assure that PEN program work effectively and achieve the target that this program m ust be supported 
during the pandemic. Team also works to figure out if there are obstacles and bottlenecking problems 
over budget disbursement so it can be handled properly and correctly as soon as possible. They can 
calibrate the PEN if there are problems  occur during program implementation by improving the 
regulation and procedure needed to support the program  
 
The monitoring and evaluation over PEN can be used as a tool to clearly find if there are some parts of 
PEN program needed to be reinforced, recalibrated, and reallocated, or also if it needs a new formulation.  
 WT/TPR/M/401/Add.1  
 
- 139 - 
 
  Page 8  
 
2.16. Moreover, in order to further facilitate investors, licensing procedure started online services in 
July 2017, by offering Izin Prinsip in digital format. Then in January 2018, the digital format of Izin 
Usaha followed suit and allowed for further optimize of the online licensing services by synergizing 
various sectoral licensing regime of line ministries/government bodies under the One -Stop Service 
Center ( Pelayanan Terpadu Satu Pintu /PTSP). The OSS is a web -based investment licensing system that 
was implemented through the Government Regulation No. 24 of 2018 on the Electronically Integrated 
Business Licensing Service.  
 
Question  
 
3. It was reported that the OSS is not applicable to most of provinces in Indonesia even in Jakarta. 
This would undermine the objectives of OSS. Why is it happening?  
 
4. There is a number of overlapping rules and regulations between the central and provincial 
governmen ts that might cause inconvenience to the investors. What are the contributing factors 
to this issue?  
 
Answer:  
 
3. OSS (Online Single Submission) has been well integrated by system to Capital Investment and 
One-stop Integrated Services Department in each region including with Jakarta Capital Investment 
and One -stop Integrated Services. Currently the OSS system has been running well so far, if there 
any trouble arises, investor can follow up to OSS portal or through Jakarta Capital Investment and 
One-stop I ntegrated Services Department.  
4. The implementation of regional autonomy might have contributed to the different regulation under 
different authorities, however this issue has been addressed through the Law No. 11 of 2020 or 
Omnibus Law on Job Creation.  
 
Page 8 
 
2.19. Numerous sectors that had been previously closed or conditionally open to foreign investment 
were removed from the 2016 NIL. These sectors are now 100% open to foreign investment. Notable 
sectors which are now entirely open to investment include, among others, trade activities (such as direct 
selling, distribution affiliated with production and futures brokerage), and hospitality and health services 
(such as production of pharmaceutical raw materials and hospital management serv ices).  
 
Question  
 
5. As stated, a 100% open for foreign investment, please provide us which sector and why?  
 
Answer:  
 
Based on Presidential Regulation No. 44 of 2016 (Negative Investment List), Article 1 para 2 :"Open 
business acitivity" means a business acti vity which is performed without any condition in the context of 
investment". In this context, business activities which are not part of the attachment list of this 
regulation are open for 100% foreign investors. As addition, this regulation is currently un der revision 
to be investors' friendlier Presidential Regulation on "Investment Priority List", as part of implementing 
regulations of Law No. 11 of 2020 or Omnibus Law for Job Creation which is expected to be issued by 
early next year.  
 
Page 13  
 
3.22. Through regular meetings of the Sanitary and Phytosanitary (SPS) Committee, Indonesia has been 
conveying concerns (to members) as well as responding to concerns (from members) over SPS 
measures that are deemed more trade restrictive than necessary. W ith agricultural products playing an WT/TPR/M/401/Add.1  
 
- 140 - 
 
  important role in overall trade, Indonesia supports and participates in review processes that aim to 
facilitate better operation and implementation of the SPS Agreement.  
 
Question  
 
6. Appreciate if Indonesia could clarify whether Halal is also governed under the SPS agreement? If 
yes, which agency/competent authorities for regulating SPS should be joining the SPS committee?   
 
Answer:  
 
The Halal is not under SPS measures. The Ministry of Agriculture only regulates the SPS. The Halal's 
focal point is in the Ministry of Religious Affairs cq. BPJPH.  
 
Page 14  
 
3.31. Indonesia believes in a balanced approach to sustainable palm oil management, taking into 
account the sector's contribution in absorbing 17 million local workers, as well as the accompanying law 
enforcement against deforestation efforts. This approach has been Indonesia's commitment to the 2030 
Agenda, which Indonesia presented at the WTO Committee on Trade and Environment (CTE) regular 
meeting in June 2018  in Geneva.  
 
Question  
 
7. Indonesia imposed the licensing moratorium in 2018 in order to comply with the Roundtable on 
Sustainable Palm Oil. In this regard, appreciate if Indonesia could explain whether the initiative is 
progressive or merely a stumbling -blocks due to lack of data and transparency.  
 
Answer:  
 
President Instruction No. 8/2018 regarding the moratorium and evaluation of licensing of palm oil crops 
and increasing productivity palm oil crops is still on going. The objectives are to improve sustaina ble 
palm oil management, to ensure the legal certainty, to save and protect the environment sustainability 
including to reduce greenhouse emission, and to improve empowerment of palm oil farmers as well as 
to increase their productivity. Coordinating Minis try for Economic Affairs with related ministries 
synchronizes the data by One Map Policy.  
 
Secretariat Report  
 
Page 15  
 
4.1. Between 2015 and 2018, the Government has issued 16 national economic policy packages (NEPP) 
to encourage national industry and competitiveness amid the global economic slowdown. There are 
five NEPP which focus on trade -related policy development, especially on harmonizing exports and 
imports.  
 
4.2. One of the focus of the NEPP is to encourage the competitiveness of national indus tries through 
deregulation, bureaucratization, and law enforcement and business certainty. Policy deregulation is 
intended to rationalize regulations by eliminating duplication, harmonizing regulations, and eliminating 
regulatory inconsistencies. There are  134 regulations that are reviewed to cut regulations that are 
considered to hamper the competitiveness of national industries.  
 
Question  
 
8. What is the status of actual implementation and major achievements of 16 national economic policy  
packages (NEPP)?  
 WT/TPR/M/401/Add.1  
 
- 141 - 
 
  Answer:  
 
There are several achievements in implementing 16 National Economic Policy Packages:  
a. Improving business climate in Indonesia with increasing rank of ease of doing business from 114 in 
2014 to 73 in 2020 and also IMD competitiveness index from 42 i n 2015 to 32 in 2019.  
b. Developing 15 Special Economic Zone (SEZ) where 11 have been operated and 4 are still being 
developed (as of 17 February 2020).  
c. Developing 138 bonded logistic centre in 182 locations.  
 
Page 21  
 
4.49. During the 2015 -2017 period, the Government has made efforts to boost Indonesia's standing in 
the Ease of Doing Business Ranking (EoDB), through: implementing several programs such as the Single 
Billing Electronic Systems for Taxes, Customs Duties, Excise and other charges in all Customs Office; 
implementing Risk Management system at the border; and implementing Inaportnet System to support 
the movement (tracking and tracing) of goods in and out of the port area, and integrate the system 
with the Delivery Order (DO) Online syst em for handling goods and operation of Toll Road access. These 
programs and systems have improved the efficiency (i.e. minimizing port dwelling time) of the flow of 
goods in and out the Port of Tanjung.  
 
Question  
 
9. Indonesia has done great approach and init iatives in facilitating trade and business regulations. 
Appreciate if Indonesia could indicate additional initiatives to become more friendly for businesses 
in the future as targeted by the President to be ranked 40?   
 
Answer:  
 
Government has issued 27 re gulations for 11 indicators and made a survey guideline in each indicator.  
Job Creation law is projected to give improvement EODB indicators, such as:  
a. Starting Business through simplified licensing for MSMEs.  
b. Trading Across Borders by Implementing risk -based analysis in licensing that will give positive 
impact to trading across border. Efficiency management of trade restrictions and prohibitions will 
improve dwelling time.  
c. Registering Property by Integrating procedure for registering property that will decrease 
miscalculation property data and simplify verification property.  
d. Enforcing Contracts by improving several laws related to enforcing contract indicators which in turn 
will improve investment climate.  
e. Dealing with Construction by replacing buil ding construction permit with building standard that will 
improve DWCP indicator. The regulation ensures the process of obtaining building approval can be 
submitted online.  
 
Page 103  
 
3.97. The legislative basis for income tax remains the Income Tax Law No . 7 of 1983 as amended by 
Law No. 36 of 2008.164 Taxation policies are also regulated by Government Regulation in Lieu of Law 
No. 1 of 2020, which was issued to help manage the impact of the COVID -19 pandemic. The standard 
corporate tax rate is 22% (reduce d from 25% as from the tax year 2020). It will be reduced further to 
20% from 2022. Certain reductions apply to MSMEs (Section 2.4.4) and public companies achieving a 
minimum listing requirement of 40% on the Indonesia Stock Exchange. Depreciation and amor tization 
deductions are provided. A withholding tax is raised on many import items and some exports 
(Sections  3.1.4 and 3.2.2). Personal income tax rates range from 5% to 30%, depending on the amount 
of annual taxable income.165  
 
Question  
 
10. In 2019, Indonesia 's tax ratio was 10.7 percent of the country 's gross domestic product (GDP) and 
considered low compared to regional peers. According to the International Monetary Fund, WT/TPR/M/401/Add.1  
 
- 142 - 
 
  developing countries should have a tax -to-GDP ratio of at least 15 percent to ensure they have the 
resources necessary to invest in the future and achieve sustainable economic growth. What is 
Indonesia 's plan to improve the situation?  
 
Answer:  
 
Indonesia's tax ratio has been relatively low in the last few years which can be partly explained by the 
decline in commodity prices in 2008 -2009 and partly due to structural problems. To improve this 
situation there must be a number of reforms in terms of both tax policy and tax administration. On the 
administrative side, GOI have made many changes to improve taxpayer compliance. The improvements 
started from, among others, simplified tax form/return, electronic tax payments, to the existence of a 
tax office for large taxpayers. The tax base also expanded which will not only focus on commodity -based 
companies but will also expand coverage to other potential sectors such as digital taxation. To support 
the expansion of this tax base, we must improve the tax database system that we have implemented, 
including through the tax amnesty program, access to financial information for tax purposes through 
Automatic Exchange of Information (AEOI) and by building an  information database system to 
strengthen taxation or the Core Tax Administration System. Then, we continue to review the tax 
expenditures that we have provided to evaluate whether the tax expenditures are in accordance with 
our stated objectives, namely to encourage economic growth.  
 
In addition, tax advocacy and dissemination to the public are needed so that people understand the 
importance of taxes as a constitutional obligation to develop the nation and state. All of the 
aforementioned efforts are aime d at achieving an Efficient, Fairness and Certainty taxation system.  
 
We estimate that the tax ratio this year and the next three years (2021 -2023) will still be low due to 
the impact of the Covid -19 pandemic and the Job Creation Law. However, we believe t hat with the 
recovery of the global and domestic economy, the tax ratio will gradually increase again starting in 
2024.  
 
Page 121  
 
3.146. MoA Regulation No. 42 of 2019 regarding the Importation of Carcass, Meat, Offal and/or their 
Processed Products into t he Territory of the Republic of Indonesia and MoT Regulation No. 29/2019 
regarding the Provisions of Export and Import of Animal and Products of Animal Origin (as amended by 
MoT Regulation No. 72/2019), detail the meat products eligible for import.228 Impo rters must apply for 
an import recommendation from the MoA in order to receive an import permit from the MoT. Import 
permits are valid for six months. Requirements to have a distribution plan, contained in earlier 
regulations (MoA Regulation No. 58 of 2015  as amended by MoA Regulation No. 34 of 2016) are no 
longer in place. Halal certificates, from a halal certifier recognized by the Indonesian halal authority, 
must be provided. In 2020, new regulations were issued requiring confirmation (though laboratory tests) 
that imports of live animals are free from COVID -19229; according to the authorities, these 
requirements are being revised and are no longer valid. MoA Regulation No. 33/2018 on the Supply and 
Distribution of Milk removes the pre -existing requiremen ts for dairy processers and importers to 
establish partnerships with local dairy farmers as one of the requirements to obtain an import permit.  
 
Question  
 
11. What is the time frame to get import recommendation from MoA and import permit for the above 
related products?  
12. Is palm -based condensed and evaporated milk still considered as dairy products and subject to 
regulation as per above?  
 
Answer:  
 
11. Import recommendation and import permit can be obtained within 10 working days of the receipt 
of an application in an appropriate and complete form by an importer.  
 WT/TPR/M/401/Add.1  
 
- 143 - 
 
  12. The palm-based condensed and evaporated milk still considered as dairy products and subject to 
regulation as per above. Sweetened condensed milk products use palm -oil as an emulsifier. 
Furthermore, the regulation is at the Ministry of Industry . 
 
Page 122 -123 
 
3.151. Under the 2014 Halal Product Assurance Law and its implementing regulation, GR No. 31 of 
2019, all halal products sold on the Indonesian market must obtain certificates from th e newly 
established Halal Products Certification Agency (BPJPH), under the Ministry of Religious Affairs. 
Previously, certification was voluntary, and was undertaken by the Indonesian Ulema Council. Since 
2019, halal certification requirements have applied  to food and beverages, and will be introduced for 
other products over the period 2021 -26 (Section 3.3.2.5). As indicated by the authorities, all halal 
certificates issued by foreign halal certifier bodies (LHLNs) that cooperate with the BPJPH can be 
accep ted; as at mid -2020, there were 45 LHLNs in 26 countries.240 Importers must register halal 
certificates with the BPJPH, and place the registration number on the package before the product may 
be distributed in Indonesia. As noted in Section 3.3.2.5, variou s concerns about the implementation of 
this law were raised in the WTO TBT Committee, including with respect to labeling requirements and 
certification requirements.  
 
Question  
 
13. Does this law apply to pharmaceuticals as well?  
 
Answer:  
 
The pharmaceuticals are included in the mandatory product category for halal certification as stated in 
the Halal Assurance Law.  
 
Question  
 
14. Appreciate if Indonesia could indicate when Indonesia under BPJPH start to accept and recognize 
other countries Halal certificate including their Halal logo?  
 
Answer:  
 
Currently Indonesia has received the required documents submitted by several foreign halal institutions.  
 
Question  
 
15. With the incoming Omnibus Law Implementing Regulation in January 2021, how does this affect the 
current Implementing Regulation of 2014 Halal Product Assurance Law?  
 
Answer:  
 
The Job Creation Law (Omnibus Law) will shorten the certification period from 97 working days to 21 
working days and regulate the MUI's authority in determining halal fatwa.  
 
Question  
 
16. What are the main challenges to authorise BPJPH as the focal point for Indonesia 's Halal certification 
process?  
 
Answer:  
 
The appointment of BPJPH as the focal point for Indonesia 's halal certification is to more ease the process 
and procedures of halal certification. BPJPH will do coordination internally and externally as well as with 
relevant ministries/agencies and stakeholders.  
 WT/TPR/M/401/Add.1  
 
- 144 - 
 
  Question  
 
17. For the Halal certification recognition from other countries, does it only need notification to BPJPH 
or still need for normal Halal registration process as implemented before?  
 
Answer:  
 
Provided that the foreign halal certification bodies have been approved by the Indonesian government, 
the halal certificate registration process  only needs to be notified to BPJPH.  
 
Question  
 
18. Appreciate if Indonesia could share the list of other products (other than food and beverages) to be 
extended for halal certification requirement.  
 
Answer:  
 
The products coverage for halal certification requirements has been notified under TBT Secretariat 
(G/TBT/N/IDN/123) as follows:  
a. Food and beverages products  
b. Traditional medicine and health supplement  
c. Medicine (free medicine or over the counter drugs and limited free medicine)  
d. Prescripti on drug, excluding psychotropic  
e. Cosmetic, chemical product and genetically engineered product  
f. Clothing, headgear and accessories  
g. Household appliances, Muslim worship equipment, stationery and office equipment  
h. Goods for medical devices risk class A  
i. Goods f or medical devices risk class B  
j. Goods for medical devices risk class C  
 
ADDITIONAL QUESTIONS MALAYSIA_1  
Government Report  
 
Page 8  
 
2.15. In addition, the Government introduced the Ease of Direct Investment on Construction 
(Kemudahan Investasi Langsung Konstruksi/KLIK) in Specific Industrial Areas scheme through the 
Chairman of BKPM Decree No. 24 of 2016, and as amended by the Chairman of BKPM Decree No. 41 of 
2018. The KLIK is available to investors in 47  industrial areas or bonded zone (includ ing industrial 
parks), and allows them to directly jump into the construction stage following the issuance Izin Prinsip.  
 
Question  
 
1. How is the evaluation and screening mechanism for investors for KLIK? Will there be additional 
requirement to the Izin Prins ip? 
 
2. Has there been many investors taking up the KLIK?  
 
Answer:  
 
1. Program Kemudahan Layanan Investasi Langsung Konstruksi /The Ease of Direct Investment for 
Construction Services (KLIK) Program is a program that makes it easy for investors to invest directly in 
industrial area. The launch of this program was started in 2 016 in conjunction with the 3 Hours 
Investment License service. There is no minimum investment value limit or the number of workers in 
this program, as long as the investment is made in a designated industrial area. Through the KLIK 
program, investors who have obtained a principal permit or investment permit are allowed to 
immediately begin construction of their factory while taking care of local permits (for example building WT/TPR/M/401/Add.1  
 
- 145 - 
 
  permits, environmental permits and various implementation permits, it is necessary  to be noted that 
during the commencement of construction, investors are required to maintain these permits. These 
licenses must be completed before all construction for production activities is completed and business 
is started.  
 
Currently, BKPM no longer  issue Izin Prinsip. Starting from 2018, based on Government Regulation 
Number 24 Year 2018, business licenses (in the form of Single Business Number/NIB and Business 
Permit) are issued and published digitally through Online Single Submission (OSS) system.  
 
2. In total, until 2018 there were 47 industrial areas where KLIK was implemented with a total available 
land area of 14,996.85 Ha. Industrial areas that are part of KLIK are established through the Decree of 
the Head of BKPM number 41 of 2018 concerning  the Second Amendment to the Decree of the Head of 
BKPM number 24 of 2016 concerning the Establishment of Certain Industrial Zones for KLIK. During the 
2 years that the KLIK program has been running, this facility has been utilized by 
115 projects/companie s with an investment value of Rp. 130.62 trillion using an area of 1,322.96 ha. 
(In 2018)  
 
Page 8  
 
2.20. Domestic and foreign investment in the non -oil and gas sectors has been increasing during the 
period of 2014 -2018. In 2018, direct investment reached a total value of IDR  721.3 trillion, increasing 
4.1% from the previous year's value.  
 
Question  
 
3. What are the factors behind the increase in domestic and foreign investment in the non -oil and 
gas sectors from 2014 to 2018?  
 
Answer:  
 
The realization of domestic investment (PMDN) and foreign investment (PMA) continued to increase 
from IDR 463.1 trillion in 2014 to IDR 545.4 trillion in 2015, IDR 612.8 trillion in 2016, IDR 692.8 trillion 
in 2017, IDR 721.3 trillion in 2018 and IDR 809.6  trillion in 2019. On average, investment realization in 
the 2015 -2019 period grew by 11.9 percent. The actual value of investment in 2015 -2017 has exceeded 
the target set in the 2015 -2019 National Medium -Term Development Plan (RPJMN), namely 
105.0  percent  of the target in 2015, 103.0 percent of the target in 2016, and 102.1 percent of the target 
in 2017. However, in 2018, there was a slowdown in which investment growth was only 4.1 percent so 
that the actual value of investment in that year only reached 94 .3 percent of the target. In 2019, the 
realized value of reinvestment exceeded the target of 102.2 percent of the target of IDR 792.0 trillion. 
There are several factors that we think play a role in increasing investment flows, including:  
 
1. Economic and pol itical stability, based on a survey released in 2014 by the Japan Bank for 
International Cooperation (JBIC), Indonesia is ranked first in the country of interest to invest. The 
rating is higher than Thailand and several other ASEAN countries.  
2. In the 2018 A SEAN Business Outlook Survey (ABOS) report issued by the US Chamber of 
Commerce, Indonesia is also the best destination country for investment besides Singapore, 
Malaysia and Vietnam. There are at least two factors that have increased satisfaction by Ameri can 
investors, namely infrastructure and government incentives. This shows that the acceleration of 
infrastructure development has a positive effect on the flow of investment into the country.  
3. Shifting interest in investment due to technological developmen ts. Based on data, the secondary 
sector has the highest contribution to investment realization and continues to increase from 
43.0 percent in 2014 (realized value Rp199.1 trillion) to 43.3 percent in 2015 (realized value 
Rp.236.0 trillion), and 54.8. perce nt in 2016 (realized value IDR 335.8 trillion). However, the highest 
contribution to investment realization began to shift to the tertiary sector since 2017 with a 
contribution of 42.3 percent (realized value IDR 293.3 trillion) and continued to increase t o 
50.9 percent in 2018 (realized value IDR 366.9 trillion) and 57, 5 percent in 2019 (realized value 
IDR465.3 trillion). Cumulatively in 2015 -2019, the tertiary sector was also the largest contributor 
to the realization of investment with a contribution of  45.2 percent, followed by the secondary sector WT/TPR/M/401/Add.1  
 
- 146 - 
 
  with a contribution of 38.0 percent, and the primary sector with a contribution of 16.8 percent. The 
shift in the realization of investment from the secondary sector to the secondary sector is partly due 
to the rapid development of the digital economy.  
4. Government efforts to improve policies that support the investment climate and increase investment 
flows. Based on a survey by the CEO of World Magazine (2019), Indonesia is still ranked 4th out of 
67 countries as a country that has a strong appeal in the investment sector with a score of 84.4. 
The best indicator for Indonesia is government policy with a score of 82, while the lowest indicator 
for Indonesia is institutional with a score of 50. The high score for government policy shows that 
the formula for government policy in the investment sector shows very good performance. This 
condition is a potential in an effort to increase investment.  
5. Review of the negative list of investment against the realizat ion of foreign investment. In order to 
create legal certainty, the Government issued a Presidential Regulation on Business Fields that are 
Closed and Business Fields that are Open with Conditions, known as the Negative Investment List 
(DNI). The list of cl osed business fields and open business fields subject to regular evaluation and 
refinement in accordance with economic developments and national interests based on studies, 
findings and investors' suggestions. In 2014 the Government issued Presidential Reg ulation Number 
39 of 2014. This Presidential Regulation is a substitute for the previous regulation aimed at further 
increasing investment activities in Indonesia and in implementing Indonesia's commitments in 
relation to the Association of Southeast Asian  Nations / ASEAN Economic Community (AEC). In 
2016, the Government revised the negative investment list by issuing Presidential Regulation 
Number 44 of 2016 by relaxing around 141 business fields. Some of these relationships cover 
business services and ser vices such as construction services, tourism, e -commerce, cold storage 
and film. The opening of these service sectors also contributed to an increase in the realization of 
investment in the tertiary sector compared to the realization of other sectors in th e 2015 -2019.  
 
Secretariat Report  
 
Page 122 -123 
 
3.151. Under the 2014 Halal Product Assurance Law and its implementing regulation, GR  No. 31 of 
2019, all halal products sold on the Indonesian market must obtain certificates from the newly 
established Halal Products Certification Agency (BPJPH), under th e Ministry of Religious Affairs. 
Previously, certification was voluntary, and was undertaken by the Indonesian Ulema Council. Since 
2019, halal certification requirements have applied to food and beverages, and will be introduced for 
other products over th e period 2021 -26 (Section 3.3.2.5). As indicated by the authorities, all halal 
certificates issued by foreign halal certifier bodies (LHLNs) that cooperate with the BPJPH can be 
accepted; as at mid -2020, there were 45 LHLNs in 26 countries.240 Importers mu st register halal 
certificates with the BPJPH, and place the registration number on the package before the product may 
be distributed in Indonesia. As noted in Section 3.3.2.5, various concerns about the implementation of 
this law were raised in the WTO TB T Committee, including with respect to labeling requirements and 
certification requirements.  
 
Question  
 
4. Appreciate if Indonesia could indicate the list of other products needed to obtain BPJPH certificate 
over the period 2021 -26. 
 
Answer:  
 
In accordance with the provisions of Minister of Religious Affairs No. 26 of 2019 Article 33, the products 
for which certification obligations are enacted from 2021 -2026 are: traditional medicines and health 
supplements; cosmetics, chemical products, and gene tic engineering products; goods that are used in 
the category of clothing, headgear and accessories; used goods that are used in the category of 
household health supplies, household utensils, religious supplies for Muslims, stationery and office 
supplies; as well as used goods that are used in the category of risk class A medical devices in 
accordance with the provisions of the legislation. This information can be seen on the bpjph.go.id 
website.  
 WT/TPR/M/401/Add.1  
 
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  5. Currently, is Malaysia 's HALAL certification by Jabatan Kema juan Islam Malaysia (JAKIM) 
recognised by BPJPH one of the LHLNs?  
 
Answer:  
 
Not yet, because there is no Government -to-Government MoU (because JAKIM is under the Malaysian 
Government).  
 
6. The Article 4 of the Halal Product Assurance Law stipulates products d istributed and sold in 
Indonesia are required to be halal -certified. Does it cover halal products only or all products?  
 
Answer:  
 
It only covers products that meet Indonesia 's Halal Assurance Product standards. For non -halal products 
can enter and can be c irculated in Indonesia in accordance with article 26 of Law 33/2014.  
 
Page 132 -134 
 
3.186. PR No. 16/2018 covers the procurement of goods and services at the central and local 
government levels that are financed (wholly or partially) through the state or regional budgets, as well 
as procurement financed by domestic or foreign loans or grants. It does not apply to: procurement for 
public service agencies; procurement carried out based on a publicly published tariff; procurement 
carried out in accordance wit h an established business practice; or procurement stipulated under other 
prevailing laws and regulations.278 Procurements by SOEs and their subsidiaries and affiliated 
companies are not covered by this Regulation.  
 
Question  
 
7. Appreciate if Indonesia could explain what are the other procurement scope that is not covered 
by Regulation PR No 16/2018?  
 
8. Can Indonesia provide further clarifications and examples for procurement for public service 
agencies; procurement carried out based on a publicly published tar iff; procurement carried out 
in accordance with an established business practice?  
 
Answer:  
 
As it has been mentioned on 3.186 in the Secretariat Report, PR 16/2018 excludes procurement for 
public service agencies; procurement carried out based on a publicly published tariff; procurement 
carried out in accordance with an established business pract ice; and procurement stipulated under other 
prevailing laws and regulations. Further explanations on the procurement that excluded from PR 
16/2018 are explained in National Public Procurement Agency (NPPA) Regulation No. 12 Year 2018 
regarding Guidelines f or Procurement Excluded from Government Procurement.  
 
a. Public services agencies means agencies which are established to give services to the public by 
providing goods/services without prioritizing profits and in carrying out its activities based on 
efficie ncy and productivity principles (such as hospitals).  
b. Procurement carried out based on publicy publish tariff, such as electricity, clean water and gasoline.  
c. Procurement carried out in accordance with an establised business practice, such as certain 
profess ional services which have standard remuneration, expert services, honorarium stipulated by 
their professional associations.  
 
Above information are explained in National Public Procurement Agency (NPPA) Regulation No. 12 Year 
2018 regarding Guidelines for P rocurement Excluded from Government Procurement. The procurement 
of SOEs and their subsidiaries and affiliated companies are also not covered in the PR 16/2018.  
 
3.188. Government policy remains focused on promoting domestic suppliers and producers via several 
procurement requirements. As under previous rules, foreign companies may only bid in tenders that WT/TPR/M/401/Add.1  
 
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  exceed certain thresholds (Section 3.3.6.3). Similar to pre vious practice, PR No. 16/2018 mandates the 
use of domestic products (including design and engineering services) in government procurement if 
there are providers offering goods or services with a local content plus corporate contribution value 
exceeding 40 %. Procurement of imported goods can be carried out if the goods are not yet produced in 
Indonesia or the volume of domestic production is insufficient.  
 
Question  
 
9. Appreciate if Indonesia could further explain 'corporate contribution value exceeding 40% ' and 
what does it refer to?  
 
Answer:  
 
In this context, the value of 40% is calculated by the total of local content plus corporate contribution 
value. The term "corporate contribution value " is different from the local content. Meanwhile, according 
to Minis ter of Industry Regulation No. 3/2014, the corporate contribution value is determined by:  
 
a. the existence of partnership with micro and small enterprises as well as cooperative;  
b. providing the health and safety of the workplace and environment;  
c. attainning the quality management certificate(s); and  
d. providing service and after sales facilities.  
 
Page 134 - 135 
 
3.195. The tendering process for selection/tenders involves the following steps: implementation of 
qualifications; annou ncement and/or invitation; registration and collection of election documents; 
briefing; submission of bid documents; evaluation of bid documents; determination and announcement 
of winners; and objections. For the selection of providers for construction wor ks, there is an additional 
appeal stage.283  
 
Question  
 
10. Are there any specific criteria for the entitlement of plea? Are there any threshold value applicable? 
How long is an appeal stage is allowed? Which authority decides on the plea?  
 
Answer:  
 
As it has been mentioned in Secretariat Report 3.195, objections are pleas from selection participants 
to the procurement working unit when they assumed being unfairly treated by the results of the tender.  
 
Bidders (selection participants) can submit obje ction if they find:  
1. Mistakes in evaluation process  
2. Irrelevance or deviation towards PR 16/2018 as well as selection document  
3. Conspiracy that avoids fair business competition, and/or   
4. Abuse of power of selection committee, commitment officer, and/or budget  authority.   
 
Objection mechanism applies to all procurement using tender/selection methods. Objection can be 
submitted to selection committe in 5 working days after the announcement of qualification 
result/announcement of winners. The selection committe is responsible to respond the objection.  
 
3.197. E -purchasing must be made for the goods/services related to the fulfilment of national and/or 
strategic needs determined by the minister, head of institution, or head of region.  
 
Question  
 
11. Could Indonesia ex plain further on what are the procurement that are not subjected to use 
e-purchasing? If it does not use e -purchasing, does it mean that it does not have to fulfil similar 
needs?  WT/TPR/M/401/Add.1  
 
- 149 - 
 
  Answer:  
 
As it has been mentioned on 3.194 in the Secretariat Report, E -purch asing is a procurement method 
when the procuring entity buys the goods/services from the e -catalogue. Procuring entities are strongly 
encouraged to use e -purchasing when the goods/services listed in e -catalogue and available.  
 
Please note that e-catalogue currently provides more goods rather than services. Therefore, when 
procuring entities need to procure goods/services that is not available in e -catalogue, they have to use 
other procurement methods stipulated in PR 16/2018 and select the metho d based on professional 
judgement.  
 
3.198. Direct procurement is conducted using the following methods: (i) direct purchase/payment to 
the provider for the procurement of goods/services using proof of purchase or receipts; or (ii) request 
for a proposal, a long with a clarification and technical and price negotiation, from the economic operator 
for direct procurement using a work order.  
 
3.199. Direct appointment involves the appointment of one selected business actor, and involves 
technical and price negoti ations.  
 
Question  
 
12. Could Indonesia explain if there is any technical and price negotiation conducted under open 
tender, quick tender or e -purchasing method?  
 
Answer:  
 
Open tender (for consultancy services; for other type of procurement, it can be conducted if there is 
only one bidder passing technical evaluation).  
 
ADDITIONAL QUESTIONS MALAYSIA_2  
SECRETARIAT REPORT  
 
Page 176, 214  
4.2.1 Mining  
Coal 
 
4.109 Under MoT Regulation No. 82/2017, coal exporters are required to use Indonesian -owned sea 
transportation companies, and insurance from domestically owned insurance companies, except when 
no national provider is available or when an exemption has been approved by the Minister of Trade; 
following strong reaction from the coal industry relating to the readiness of the national shipping to 
support coal exports and the fact that most coal is exported free -on-board with the buyer bearing the 
cost of insurance and freight, implementation was delayed until May 2019 for insurance and May 2020 
for shipping.  
 
4.4.5.1 Maritime transport  
Since May 2020, coal exporters have been required to use Indonesian -owned sea transportation 
companies, with certain exceptions (Section 4.2.1)  
 
Question:  
 
1. Appreciate if Indonesia can take into consideration of the impact in terms of economy and 
neighbouring countries' loss due to the implementation of this restriction.  
 
Answer:  
 
MoT Regulation No. 82/2017 has been revoked and replaced with MoT Regulation No. 40/2020 with the 
issuance of MoT Regulation No. 65/2020 concerning t he Obligation to Use National Sea Transportation WT/TPR/M/401/Add.1  
 
- 150 - 
 
  and National Insurance for the Export and Import of Certain Goods for Government Needs. The 
amendment takes into account the interests of stakeholders involved in the coal export business 
process.  
 
2. Currently , would like to know about the status of MOT Malaysia's request as well as other ASEAN 
neighbouring countries' through letter from our Minister to Indonesian Transport Minister on 
exception towards this restriction policy.  
 
Answer:  
 
The Malaysian Minist ry of Transport 's request is still being discussed internally. The related institution 
will reply accordingly.WT/TPR/M/401/Add.1  
 
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  SINGAPORE  
PART  I:  QUESTIONS  REGARDING  THE  SECRETARIAT  REPORT  
 
QUESTION:  
 
2.2 Trade Policy Formulation and Objectives  
Page 39 (Para 2.8)   
 
1. How does Indonesia plan to make its laws more transparent and readily accessible, especially to 
foreign investors?  
 
Answer:  
 
Indonesia has already developed the website of the National Legal Documentation and Information 
Network (JDIHN) to provide laws and reg ulations at the national level. Meanwhile, some Ministries and 
Agencies are providing an English version of laws and regulations on their JDIHN website. In an addition, 
Law No. 12 of 2011 as amended with Law No. 15 of 2019 of Formation of Laws & Regulation s, mandated 
public participation during the drafting of laws and regulations, therefore to facilitate the public including 
investors to provide input verbally and/or written. As intended in the paragraph, any Draft of Laws & 
Regulations should be easily ac cessible by the public.  
 
2.2.2 Trade and related policy objectives  
Page 40 (Para 2.12)   
 
2. For Indonesia 's National Masterplan Development, to what extent has Indonesia achieved the aim 
of "increasing the added value of natural resources in agricultural, mineral, and oil processing upstream 
industries "? In addition, how did Indonesia select which industries t o support and develop? How does 
Indonesia plan to strengthen the industrial structure and train their human resources for the second 
phase?  
 
Answer:  
 
The effort to increase the added value of natural resources in agricultural, mineral, and oil processing 
upstream industries is still on going. Indonesia develop the food industries and raw material industries 
with the view to increase the people 's welfare. Indonesia is commited to attract foreign investors to 
strengthen the industrial structure and to train the human resources by transfer of knowledge.  
 
2.4.2 Restricted Activities   
Page 54 (Para 2.47)   
 
3. We note that revisions have been made to In donesia 's negative investment list, in 2014 and 2016. 
How often does Indonesia revise the negative investment list? Is the list, as well as additional 
information on investing in the various sectors readily available in the English language?  
 
Answer:  
 
Based on Presidential Regulation No. 77 of 2007 which was later revised by Presidential Regulation No. 
44 of 2016 which is currently in effect, the Negative Investment List is reviewed every 3 (three) years 
since its promulgation or if deemed necessary can  be reviewed according to the needs and developments 
in the conditions stipulated by Presidential decree. The English version of the Presidential Regulation of 
Negative Investment List is readily available whether official translation version or non offici al 
translation. In an addition, this regulation is currently under revision to be investors' friendlier 
Presidential Regulation on "Investment Priority List", as part of implementing regulations of Law No. 11 
of 2020 or Omnibus Law for Job Creation which i s expected to be issued by early next year.  
 WT/TPR/M/401/Add.1  
 
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  Page 55 (Table 2.6)  
 
4. Under the 2016 list, caps on foreign capital for the following activities – International and domestic 
sea transportation, and Maritime cargo handling services, remain in place. Are there an y plans or 
timeline to remove or relax these caps? What are the considerations when applying the foreign 
investment caps on these activities?  
 
Answer:  
 
According to Presidential Regulation No. 44 of 2016 (Negative Investment List), business activities of 
domestic sea transportation and international sea transportation are opened for 49% maximum foreign 
capital ownership. Meanwhile, the business activity of goods' loading and unloading services (or 
maritime cargo handling services under CPC 7412) are opened for foreign capital ownership with 
conditions: a). maximum foreign capital ownership of 67%; b). maximum foreign capital ownership of 
70% applicable only for ASEAN investors, and only at 4 (four) ports in the East part of Indonesia, i.e., 
Bitung Seaport, A mbon Seaport, Kupang Seaport, and Sorong Seaport.  
 
2.4.3 Registration and Approval   
Page 58 (Para 2.51)  
 
5. Could Indonesia share if there are plans for all Government -related services to be made online, 
via the Online Single Submission (OSS) platform? Which Government services are already on OSS and 
which other Government services will be on OSS? What are the service standards with regard to the 
processing time for applications?    
 
Answer:  
 
All government institutions which are related to busi ness licensing, are already integrated electronically 
in OSS. The service standards of OSS is contained in the Head of BKPM Regulation No. 1/2020.  
  
3.0 Trade Policies and Practices By Measure   
Page 63 (Para 3.9)  
 
6. Could Indonesia please explain the necessi ty of a minimum local content on bids for over a certain 
threshold. What is the process of placing bids and how are bids assessed?  
 
Answer:  
 
The minimum local content of 25% on bids above IDR 1 billion is used for price preference. The price 
preference for goods/services is a maximum of 25% while construction is 7.5%. The determination of 
the winner is based on the lowest price order of final evaluation price (HEA). HEA: (1 -KP) x HP, where 
KP is maximum local content preference and HP is the B id Price after the arithmetic correction.  
 
3.1.1.1 Customs procedures   
Page 64 (Para 3.17)  
 
7. Could Indonesia share how applications are processed on the Indonesia National Single Window 
(INSW) and how long it takes to process a typical application?  
 
Answer:  
 
INSW compares data between customs declarations and import/export permit/licenses, reconciles, and 
validates them. It only takes several minutes to process it (the data is complete and correct, if it is 
incomplete and correct, the sy stem will reject it). (The permit/license applications are currently done in 
agencies' in -house system).  
 WT/TPR/M/401/Add.1  
 
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  Page 66 (Para 3.21)   
 
8. Could Indonesia please explain the rationale for pre -import verification for only certain goods.  
 
Answer:  
 
Indonesia has adminis tered the pre -import verification measures in order to preserve our committment 
as a WTO member as well as to preserve our interest regarding health, safety, environment and quality 
as mentioned in GATT XX  
 
Page 68 (Para 3.23)  
 
9. What are the agencies that w ill be using the Indonesia Single Risk Management (ISRM)? Could 
Indonesia share how the ISRM interacts with the INSW and how this contributes to trade facilitation?  
 
Answer:  
 
All agencies related to export -import licensing will use ISRM. They will use ISRM gradually. Ministry of 
Health is now using ISRM to inspect "post border" importation.  
 
In the future, ISRM will become one of the features in INSW, where later there will be a risk score from 
an institution, but it is not ready yet, and only the Minis try of Health will use it. In the future, when 
there is an institution that states that one of the companies is at risk, then all institutions can know the 
company profile and can make certain policies related to the company.  
 
Page 70 (Para 3.26)   
 
10. Could  Indonesia share if the Indonesia National Trade Repository (INTR) will be available in other 
languages other than Bahasa Indonesia?   
 
Answer:  
 
Currently, INTR is only in Bahasa Indonesia, however ASEAN Trade Repository is available in English.  
 
Page 79 (P ara 3.46)   
 
11. Could Indonesia share if the Import Duty Borne by Government (IDBG) is still in force? What are 
the items that are eligible for waiver of import duties? What are the steps needed to obtain this waiver?   
 
Answer:  
 
According to MoF Regulation 14/ PMK.010/2018 the facility is still valid.  
 
The facility of IDBG is granted to the import of goods and materials to produce goods and / or services 
of public interest and increase the competitiveness of Certain Industry Sectors with Government -Borned 
Import Duty Subsidiary Budget User Authority (KPA BM DTP) and budget ceiling allocation stipulated in 
the Minister of Finance Regulation which regulates the provisions of Import Duty Borne by Goverment 
in Certain Industrial Sectors for th e current fiscal year.  
 
To obtain IDBG, the company must meet the following terms/conditions:  
1.  The company has never made an error in notifying the amount and / or type of goods in the 
Import Customs Declaration with IDBG facility which caused a shortage of import duty payment 
for the last 1 (one) year.  
2.  The company does not have any import duty, excise and import taxes debt which is exceeding 
the date maturity;  
3.  The company has a plan to import goods that has been approved and validated by the industrial 
sector supervisor (Ministry of Industry); and  
4.  The company apply to the Director General of Customs and Excise . WT/TPR/M/401/Add.1  
 
- 154 - 
 
  Page 82 (Para 3.50)   
 
12. The de minimis exemption is usually intended to facilitate trade and ensure that administrative 
costs do  not outweigh any additional customs revenue from goods below this threshold. Could Indonesia 
share the proportion of goods affected by the decrease in de minimis threshold from USD 75 to USD 3 
in value terms, and has there been any impact on customs proce ssing time?  
 
Answer:  
 
The stipulating of current the de minimis threshold from FOB USD 75 to USD 3 based on several reasons 
namely:  
1. To support products which are produced by Micro, Small, Medium Enterprises (MSMe);  
2. There was a significant increase of consignment goods shipments with more than 200% in 2019 (58 
million Document) compared with 2018 (19 million Document).  
3. To create the fair level playing field and there wwere suggestions from Asocciation and Handycraft 
Producers.  
 
In the process of making the new policy for the de minimis threshold, we already conducted the research 
as comparison in which several countries have implemented de minimis value less than USD 10 such as 
Switzerland (USD 5), Liberia (USD 2), Ghana (USD 2) and there are countries w hich do not implement 
the de minimis value at all such as Costarica, Bangladesh, El Savador and Paraguay.  
 
In order to expedite the customs clearence process for consignment goods, DGCE has also implemented 
the advanced automation system for consignment g oods.  
 
3.1.5.1 Import prohibitions and quantitative restrictions  
Page 84 (Para 3.57)  
 
13. Could Indonesia clarify if the Halal Products Certification Agency (BPJPH) continues to recognise 
the halal certificates of the foreign halal certifier bodies (LHLNs) that were negotiated with the 
Indonesian Ulema Council (MUI)? If so, what is the application process; is approval automatic; and what 
are the costs involved, if any?  
 
Answer:  
 
It has been regulated in Minister of Religious Affairs  Regulation No. 26  of 2019 Article 232 letter an all 
forms of cooperation with foreign halal institutions and accreditation agencies in other countries before 
this Ministerial Regulation is enacted, remain in effect until the period of cooperation ends, and must 
comply with  the provisions of this Regulations no later than 3 (three) months before the end of the 
cooperation period.  
 
14. Could Indonesia clarify the procedure for the importation of such products?  
 
Answer:  
 
Any regulation on imports is put in place to facilitate the smooth flow import activity coming in to 
Indonesia. Based on MoT Regulation No. 48/2015, in general all imported products should be in new 
condition, importation can be done by companies who hold importer identification number or API's 
holder. All the impo rt procedures can be accessed through inatrade.kemendag.go.id.  
 
15. Could Indonesia explain the rationale of restricting imports of agriculture products – carcass meat, 
feed corn, horticulture products, rice, cloves, sugar, salt, alcoholic beverages, fertiliz er and ozone 
depleting substances.  
 WT/TPR/M/401/Add.1  
 
- 155 - 
 
  Answer:  
 
The said requirement is put in place to achieve the objective of good administrative practices not to 
hinder import.   
 
16. Could Indonesia explain how the quantitative restrictions on imports of the items listed, especially 
those of food products such as rice, sugar, and animal products, are consistent with GATT Article XI?  
 
Answer:  
 
Indonesia may impose necessary restrictions in the implementation of imports, including prohibiting, 
regulating, stipulating, imposing limited restrictions, preventing, and even exempting. As WTO member, 
Indonesia has the right to impose quantitative restrictions under the provision of safeguards, tariff -rate 
quota, special safeguard measures, and the unbound. The de termination of importation of foreign 
product is based on the rationality of K3LM (health, safety, security, environment, and morals) as well 
as international trade agreements.  
 
Indonesia would like to reaffirm that Indonesia does not issue a regulation on  restriction quotas for 
imports. Indonesia only regulates the procedures/requirements for imported products for the carcass, 
meat, animal products, rice, and horticulture.  
 
3.1.5.2 Import licensing  
Page 85 (Para 3.62)   
 
17. Could Indonesia explain how the import licensing requirements, especially for industrial goods, 
are consistent with GATT Article XI?  
 
Answer:  
 
Laws and regulations on Indonesian import licensing procedures are consistently implemented according 
to the WTO agreements. Our import licensing  requirement is put in place to achieve the objective of 
good administrative practices not to hinder import.  
 
3.1.6 Anti -dumping, countervailing, and safeguard measures  
Page 86 (Para 3.65)   
 
18. We note that anti -dumping and safeguard measures are currently in  force across a wide range of 
sectors from steel to textiles. We would appreciate it if Indonesia could explain if any other policies are 
being implemented to increase the competitiveness and performance of the domestic companies in these 
sectors to foster  their independence from these measures in the long run.  
 
Answer:  
 
Indonesia does not implement trade remedies with the aim of increasing the competitiveness and 
performance of domestic companies in dealing with imported products. Indonesia implements trade 
remedy measures necessary to ensure the elimination of excessive impacts caused by unfair trade 
practices from dumping and/or subsidies and to prevent further injury or serious threats under 
conditions specified in the Safeguard Agreement.  
 
3.2.4.2.1 Free trade zones (FTZs)  
Page 97 (Para 3.85)  
 
19. Could Indonesia provide an update on the process of converting BBK from FTZ to SEZ? What are 
the regulatory and legal implications for foreign investors keen on setting up in BBK?   
 WT/TPR/M/401/Add.1  
 
- 156 - 
 
  Answer:  
 
BBK will retain its status as FTZ within pre -determined period set in the current applicable regulations 
for FTZ. However, it is possible to transform part or all area of FTZ into SEZ according to Law Number 
11/2020 and Government Regulation Number 1/2020. In case there is transformation from FTZ to SEZ, 
regulatory and legal implications for operating companies and prospective investors are as follows: (1) 
During transition from FTZ to SEZ (up to 3 years after officially declared as SEZ), companies can still 
get the fiscal and non -fiscal facilities that have been granted, according to Government Regulation 
Number 1/2020; (2) During transition period, companies intending to invest may still have to apply for 
permit/business license to Badan Pengusahaan (BP) of th e FTZ as the SEZ administrator and SEZ 
management Business Entity.  
 
3.2.4.2.2 Bonded zones  
Page 98 (Para 3.86)   
 
20. We note that since 2013, "the sale of products from a bonded zone to domestic customers may 
not exceed 50% of the total value of exports plus s ales to other bonded zones, FTZs and other economic 
areas in the previous year. " We also note that the 50% limit may be increased upon the approval of the 
DGCE and based on a recommendation by the Ministry of Industry. Could we understand from Indonesia 
under what circumstances may this 50% limit be increased, and what are the considerations of the 
Indonesian government when approving the increase of this limit?  
 
Answer:  
 
Releasing of Production Results to other places in the customs area can be done in an amount of more 
than 50% (fifty percent) of the sum of the realization value of the previous year which includes export 
value, sales value of Production Results to other Bonded Zones, sales value of Production Results to 
Free Trade Zones, and sales value  of Production Results to other designated economic areas by the 
Government in case Bonded Zone Companies or PDKB get approval from the DGCE.  
 
Based on Director General of Customs and Excise Regulation No. 19/BC/2018 the consideration of 
approval to increa se the 50% limitation stipulated as follow:  
1. Completeness and validity of administrative requirements;  
2. Bonded zone risk profile;  
3. Fairness of selling price (submission price);  
4. Reasons for releasing raw materials and/remaining raw materials and auxiliary mate rials and/or 
remaining auxiliary materials;  
5. Fairness of the number of goods issued;  
6. Time of storage in bonded zone.  
 
3.3.1.1.1 Central government taxes and related tax incentives  
Page 102 (Para 3.95)  
 
21. Could Indonesia explain what the Omnibus Bill on Taxation entails and what it aims to achieve?  
 
Answer:  
 
Taxation issues are among many aspects included in Omnibus Law on job creation. The omnibus law 
itself is meant to promote betterment in business climate in Indonesia. There are several changes of 
tax laws that included in Omnibus Law on job creation and are clustered into four objectives as follows:  
 
1. Mobilizing funding for expansion  
The policy aims to attract more funding from domestic and overseas. There are several changes in 
income tax code and Value added tax (VAT) code that fall into this objective, such as tax exemption 
for dividend received by domestic taxpayers, lower tax rate for interest paid to foreign bondholders, 
and VAT exemption for noncash contribution to a company share.  WT/TPR/M/401/Add.1  
 
- 157 - 
 
  2. Increasing tax compliance and fairness  
The policy is meant to encourage compliance by adjusting rate for administrative fines following cost 
of borrowing. Previously, the rate for administrative fine is 2% flat, with the maximum penalty is 
24 months. In the new law, the rate is adjustable periodically by ministerial decree. In addition, 
there are also some adjustment in treatment of tax input for VAT in order to create fairness to 
taxpayer.  
 
3. Increasing legal certainty  
There are several changes in addressing legal base  issue, such as expiration period for penalty, 
review treatment of several goods and transaction (coal, consignment transaction), and expatriate 
regime.  
 
4. Creating level playing field  
The law regulates treatment for citizenship ID number as a substitute for  tax payer ID for VAT; 
hence can be treated equally in tax invoice for VAT purposes.  
 
4.4.5.1 Maritime transport   
Page 214 (Para 4.238)  
 
22. The WTO Secretariat report notes that Indonesia 's 2008 shipping law requires domestic sea 
transportation to be carried out by national shipping companies, using Indonesian -flagged vessels 
manned by Indonesian crew. The Indonesian MoT 's Regulation No. 92 of 2018, as amended by 
Regulation No. 46 of 2019, provides a further extension on the exemption on the use of for eign-flagged 
vessels until December 2020. Could Indonesia elaborate on whether there are any plans to continue 
extending the exemption after December 2020, and what will happen to foreign -flagged vessels on the 
exemption list after 2020? Would Indonesia co nsider expanding the exemption to more vessel types in 
future?  
 
Answer:  
 
As of now, the regulation regarding the use of foreign -flagged vessels is The Indonesian MoT 's 
Regulation No. 92 of 2018, as amended by Regulation No. 46 of 2019.  
 
PART II:   QUESTIONS REGARDING THE GOVERNMENT REPORT  
 
3.4.6 Trade Facilitation  
Page 14 (Para 3.32)   
 
1. On the Trade Facilitation Agreement, noted that Indonesia has "implemented all provisions, 
except Advance Rulings, Risk Management and Notifications for Enhance Contr ols or Inspections ". When 
does Indonesia intend to implement the abovementioned provisions?  
 
Answer:  
 
We committed to implement all of those provisions by 22 February 2022.  
 
4.2.3 Manufacture  
Page 17 (Para 4.15 – 4.16)  
 
2. Indonesia aims to "increase the value -added of natural resources in the upstream industry, 
especially industry based on agriculture and natural resources ". To do so, Indonesia has from time to 
time announced the imposition of export bans on commodities such as nickel. Could Indonesia share 
about its plans to develop the natural resources in the upstream industry, in the absence of export bans?  
 
Answer:  
 
Indonesia plans to develop a stainless -steel industry and electric vehicle battery (eV) for downstream 
nickel products.  WT/TPR/M/401/Add.1  
 
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  4.2.4 Services   
Page 18 (Para 4.23)  
 
3. The Government Report states that Indonesia intends to 'encourage the participation of domestic 
service providers in foreign trade, amongst others by increasing the quantity and quality of the exports 
of priority services t hrough: (1) increasing the utilisation of priority services produced by domestic 
businesses, in order to provide incentives for the development of national service industries '. Could 
Indonesia elaborate on the types of priority services that the Government  is targeting, and what types 
of incentives will be provided for national service industries that are providing these services?  
 
Answer:  
 
Trade in services plays a very important role in economic development. Indonesia encourages service 
suppliers to take advantage of opportunities in international trade, especially for suppliers in the 
Construction Services Sector and Distribution Services. The incentives provided can be in the form of 
tax relief.  
 
Page 18 (Para 4.24)   
 
4. To support the development strategy for services sector, we noted that the Indonesian 
government has made effort to (1) increase promotion of Indonesian tourism; (2) increase the quality 
and quantity of exports of Tourism Services and Maritime Transportation Services; an d (3) improve the 
quality and skill of Indonesian workers. On (3), can Indonesia elaborate on what initiatives are underway 
to improve the quality and skill of Indonesian workers?  
 
Answer:  
 
Improving the quality of the workforce/labor is important in order  to prepare the competence of 
Indonesian workers. Various things have been done by the government regarding this matter, including:  
a. Improvement of practice -based vocational education institutions;  
b. Empowerment of vocational training centers that adapt to th e needs of the world of work;  
c. Apprenticeship program for Indonesian workers abroad;  
d. Performing labor certification; and  
e. Utilization of the capacity building program from various international agreements that Indonesia 
has followed and agreed upon.  
 
4.2.7 Micro, Small and Medium -Sized Enterprises (MSMEs)  
Page 19 (Para 4.35)   
 
5. Indonesia has developed Presidential Regulation No. 74 of 2017 concerning the Road Map of the 
2017-2019 Electronic -Based National Trading System, with the goal of "creating 1000 technopreneurs 
by 2020, with a valuation of USD 10 billion and e -commerce tran sactions of USD 130 billion ". Could 
Indonesia provide an update on the current status? Is Indonesia on track to meeting the targets? And 
in which aspects have these fallen short?   
 
Answer:  
 
The mentioned target could not be achieved due to the economic rec ession caused by C OVID -19. 
Therefore, the increase of trade through the electronic system can be seen during the pandemic which 
encourages many business entities to shift their businesses to electronic form.  
 
4.2.10 Trade Facilitation  
Page 21 (Para 4.48)  
 
6. The Government Report notes that Indonesia "fully supports trade facilitation initiatives to 
encourage the presence of long -standing opportunities for investment and, consequently, economic 
growth through simplifying business procedures at the borde r and reducing unnecessary trade cost for 
export and import by implementing the provisions of the Revised Kyoto Convention of World Customs WT/TPR/M/401/Add.1  
 
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  Organization (WCO) into Indonesia's national law ". How would the transboundary movements of 
recyclable wastes be aff ected or even encouraged through the implementation of these policies?  
 
Answer:  
 
The importer/exporter of the waste products must comply with certain regulations, including safety and 
environmental issue. The movement of the waste will be facilitated and handled in accordance with the 
existing laws and regulations so that the trade -in waste products are expected to be less risky.   
 
 WT/TPR/M/401/Add.1  
 
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  EUROPEAN UNION  
WT/TPR/S/401 – WTO Secretariat's Report  
 
SUMMARY   
Paragraph 7, Page 10   
"Indonesia remains committed to the multilateral trading system. During the review period, it improved 
its WTO commitments by ratifying the Trade Facilitation Agreement (TFA) on 5 December 2017. At the 
same time, it continued to focus on strengthening regio nal economic integration ties, through the 
implementation, and/or participation in the negotiation, of several ASEAN agreements, including the 
Regional Comprehensive Economic Partnership (RCEP). "   
 
EU Question N° 1:   
In order to update the report to take into account the signing of the RCEP plurilateral free 
trade agreement on 15 November 2020, can Indonesia specify the expected economic impact 
and the areas covered by said agreement? Will Indonesia need to revise its regulations and 
procedures in ord er to implement the RCEP Agreement? If so, could Indonesia specify in 
which areas or sectors regulations and procedures need to be revised?  
 
Answer:  
 
Coverage.  The RCEP Agreement is a modern, comprehensive, high -quality, and mutually beneficial 
economic pa rtnership that will facilitate the expansion of regional trade and investment and contribute 
to global economic growth and development. It consists of 20 Chapters, 17 Annexes and 54 market 
access schedules, with 14.367 total pages. The scope of RCEP Agreem ent include:  
 
a. Market access commitment for trade in goods which covers 92% of tariff liberalization;  
b. Market access commitment for trade in services which also covers financial services, 
telecommunication services, professional services, and temporary Movem ent of Natural Person;  
c. Market access commitment for investment which facilitate investment in the RCEP Participating 
Countries; and  
d. Other rules that are not included in the existing FTAs ASEAN has with its partners individually, such 
as E-Commerce, competi tion, intellectual property rights, and MSME, so that the Agreement are more 
relevant to the current global economic situation.  
 
Benefits. There are ample of economic opportunities that the RCEP Agreement may bring:  
 
a. The Agreement consolidates five FTAs between ASEAN and its partners under the ASEAN Plus One 
FTA, which will provide more certainty and uniformity of trade rules across its members.  
b. RCEP agreement can increase export and strengthen the regional and global value chain. In the next 
five ye ars, RCEP is predicted to contribute to 8 to 11 percent increase of Indonesia 's export, and 
between 18 to 22 percent increase for Indonesia 's foreign direct investment.  
c. RCEP includes chapters that does not exist in previous FTAs, such as e -commerce, compet ition, 
intellectual property rights, and MSMEs, and therefore are more relevant to the current global 
economic environment.  
d. There is also potentials of a "spill-over effects " from FTAs that RCEP member countries have with 
non-RCEP countries, which will inc rease export by 7.2%.  
 
Policy Adjustment.  There are some technical regulations related to the export -import administrative 
procedures that will need to be adjusted based on what has been agreed in the RCEP Agreement. 
However, such procedures will only be related to the trade activities under the RCEP Agreement. Other 
areas of policy adjustment may be implemented in order to increase Indonesia 's competitiveness.  
 
While the Agreement does not conflict with any existing rules and regulation in Indonesia, ther e are 
some of Indonesia 's regulations and procedures that will need to be adjust. In particular those related 
to the preferential tariff implementation as well as customs procedures and documentations. Some 
policy adjustment might also be needed in order f or Indonesia to acquire maximum benefit of the 
Agreement.  WT/TPR/M/401/Add.1  
 
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  Paragraph 9, Page 10   
"The tariff remains one of the main trade policy instruments, albeit a slightly declining source of tax 
revenue (2.6% of total tax revenue in 2018). Although 99.8% of tariff li nes are ad valorem, and 
therefore transparent, the tariff involves a multiplicity of rates (17 ad valorem duties and 5 specific 
duties), four more than in 2012... "  
 
EU Question N° 2:  
We note that the simple average MFN tariff increased from 7.8% in 2012 to 10.1% in 2020. 
Could Indonesia please explain the increase and indicate if this was the result of a deliberate 
policy choice.  
 
Answer:  
 
Changes in simple average of MFN tariffs are due to HS transposition, in the form of merging, splitting 
and/or c reating new tariff posts. HS transposition by Indonesia has been done in line with the WCO 
amendments and the WTO guidelines.  
 
Paragraph 13, Page 11 (See also Paragraph 4.158, Paragraph 4.162)  
 "Indonesia continues to use LCRs in certain areas (e.g. impor t duty exemptions, and government 
procurement), to protect and/or develop domestic industries (e.g. factory establishment or 
modernization, salt, dairy, pharmaceuticals, telecom equipment, energy, broadcasting, franchising, and 
modern retail trade)."   
 
EU Question N°3:  
Can the Indonesian authorities draw any conclusions from its deliberate local content 
requirements policies on how these impact on consumer prices, international 
competitiveness, and attractiveness for foreign investment?   
 
EU Question N°4:  
Could the Indonesian authorities further specify the form and justification of such local 
content requirements (LCR) in the energy sector? How, considering the challenges they pose, 
can they support Indonesia meeting its RES target and fulfilling its Paris Agreement 
commitments?  
 
Answer for Questions No. 3 and No. 4:  
 
With regard to concern with Indonesia's localization measures in accordance with Trade Law, we convey 
that those provisions are put in place either: first, in the relation to government procurement; second, 
in relation to policies which involve fulfilling the needs to maintain all of Indonesia people's welfare and 
their life necessities; and third, in relation to policies which involve state -managed strategic resources.  
 
Paragraph 18, Page 12   
In 2014, standardization and conformity assessment legislation was enacted to cover metrology. As at 
May 2020, Indonesia had 10,858 national standards (SNIs), nearly 18% of which were harmonized with 
international standards. As at Fe bruary 2020, it had 205 technical regulations in force, most of which 
were issued by the Ministry of Industry. Specific trade concerns involving conformity assessment have 
been raised by several Members regarding measures on various processed and unprocess ed foods 
(particularly with respect to halal requirements); toys; ceramics; cell phones and computers; broadband 
equipment; and alcoholic beverages   
 
EU Question N° 5:  
The report notes, for May 2020, a rate of 18% of national standards harmonised with 
international standards (which means 82% are not). Can the Indonesian authorities clarify 
their intentions and give a possible timeline for the goal of further aligning and harmonizing 
with international standards?   
 
Answer:  
 WT/TPR/M/401/Add.1  
 
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  Indonesia has annual national prog ram on standard development. The program includes the plan to 
align national standard with international standard. Although many SNIs published before 2000 might 
not be harmonized with international standards, however the trend for harmonization to interna tional 
standards in recent years were increasing.  In fact, Tabel 3.19 shows that in average, over 40% of SNI 
published annually were harmonized to international standards. This is in line with the policy of 
increasing the proportion of harmonized SNI.  
 
EU Question N° 6:   
Almost half of the number of TBT -related Special Trade Concerns raised against Indonesia 
since January 2013 include, in addition to other concerns, the issue of an insufficient period 
to adapt to the new requirements and insufficient use o f international standards as a basis 
for introduced technical regulations or conformity assessment procedures. Could Indonesia 
elaborate on how it intends to address these concerns and thus support the multilateral 
trading system of which it is an importan t part.  
 
Answer:  
 
Indonesia has established the National Committee (NC) on TBT in 2017 to improve transparency with 
regard to notification obligation. The NC consists of representatives from related ministries who are 
expected to coordinate issues related to notification obligation within their ministries.  
 
Paragraph 21, Page 12   
"SOEs continue to operate in a wide range of economic activities and, in numerical terms, are most 
active in manufacturing, financial services, and transport/warehousing. Over the review period, there 
was privatization activity in the areas of mining, construction/engineering; development, maintenance 
and management of toll roads; steel; airlines; and cement. As of 2019, Indonesia had 112 SOEs under 
the Ministry of State -Owned Enter prises, 4 SOEs under the Ministry of Finance, 341 SOE subsidiaries, 
and 317 SOE -affiliated companies, most of which operate at a profit, according to the authorities. It is 
estimated that there are also 782 regional SOEs operating in the country. One state -trading entity 
(Perum BULOG) continues to import rice as well as other staple goods when instructed by the 
Government. "  
 
EU Question N° 7:  
In 2019, the newly appointed Minister of SOEs planned to reorganize this sector, through a 
concentration of SOEs on  12 sectors essential for the state (as opposed to 27 today). The 
creation of a public health holding company for the management of hospitals was notably 
mentioned at that time. Is the Government still considering major structural reforms in the 
public ent erprise sector, for example with the creation of holdings or privatizations, in 
particular in the context of the Covid -19 crisis, which has increased the difficulties of many 
public enterprises?   
 
Answer:  
 
Currently, Indonesia does not have any consideration regarding the above mentioned matters.  
 
Paragraph 36, Page 16   
36. Distribution services are a major generator of employment and contributor to economic activity in 
Indonesia. In 2014, Law No. 7 of 2014 on Trade was enacted to, inter alia, go vern distribution services; 
it contains general rules regarding e -commerce. FDI restrictions were eased with respect to distribution 
affiliated with production; direct selling through marketing networks; department stores; distribution 
not affiliated with production; warehousing; and retail trading via mail or Internet order. Additionally, 
new FDI limits were set for certain e -commerce activities; 100% FDI is permitted in certain 
e-commerce activities involving investments of more than IDR 100 billion , and for those 
activities under the IDR 100 billion threshold, FDI is capped at 49%. The retail e -commerce segment 
grew rapidly over the review period, and a new regulation was issued in 2019 to govern the e -commerce 
marketplace and e -retail practices. In line with the Government's E -Commerce Roadmap for the period 
2017-19, government measures to support SME e -commerce activities were initiated.   
 WT/TPR/M/401/Add.1  
 
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  EU Question N° 8:  
Could Indonesia clarify elaborate which activities fall under 'certain e -commerce activities ' 
covered by the following statement: "100% FDI is permitted in certain e -commerce activities, 
involving investments of more than IDR 100 billion "?  
 
Answer:  
 
Based  on our Investment Regulation Number 44 -year 2016, we allow ecommerce platforms who 
established market place, platform -based, daily deals, price grabber, online running text -advertisement 
with total investment more than 100 billion rupiahs to operate with 100% foreign equity participation.  
 
Economic Environment   
1.2.4.4 Labour Market Policies   
Paragraph 1.16, Page 29   
"1.16….In 2018, procedures for the employment of foreigners were simplified; these were implemented 
on 11 July 2018 (Minister of Manpower Reg ulation No. 10/2018). The Government aims to integrate the 
foreign employment permit process, including approval by the RPTKA, into an online single submission 
system (Section 2.4) in the near future . Furthermore, the regulatory framework regarding certain 
positions that may be occupied by foreign workers in several sectors was revised; previous relevant 
Decrees of the Minister of Manpower were revoked, and a list of positions in various business fields 
where foreign employees can be employ ed, to be evaluated every two years or when needed, was put 
in place. " 
 
EU Question N°9:  
Could the Indonesian government specify when it is going to implement the single 
submission system process for foreign employment permits?   
 
Answer:  
 
Indonesia has est ablished Foreign Employment Online System for obtaining foreign employment permit 
that allows online registration, furthermore the result also can be accessed online which reduce the 
complexity, time and cost. This online system is under development to be integrated to the Online 
Submission Submission (OSS) system.  
 
EU Question N° 10:  
European investors often mention the difficulties of hiring foreign workers as a limitation for 
their plans of investing or expanding investments in Indonesia. Does Indonesia have a plan 
to open more positions for foreign workers, such as the important function of Director of 
Human Resources?  
 
Answer:  
 
Indonesia welcomes foreign investors who wish to hire foreign workers in Indonesia. Certain position 
might have different consideration by the Government.  
 
2.2.3 Trade laws and regulations   
Paragraph 2.18, Page 43   
"During the review period, the law -making  regulatory framework remained broadly unchanged. 26 The 
EPPs (Section 2.2.2) are key to the regulatory reform process, and remain important for the 
development of a stronger rule of law and an effective rules -based system. According to the authorities, 
the Government also initiated the simplification of regulations, through the preparation of omnibus laws 
aimed at improving the investment environment, boosting competitiveness in MSMEs, and generating 
employment. As at June 2020, the Government was preparin g to submit two draft laws to Parliament, 
namely the Omnibus Law on Job Creation, intended to facilitate business to create more jobs, and the 
Omnibus Law on Taxation… " 
 
EU Question N° 11:  WT/TPR/M/401/Add.1  
 
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  As Indonesia is one of the G20 countries, how does it foresee the new omnibus legislation 
concurring with the international requirements for climate actions (the Paris Agreement) and 
biodiversity protection, as well as due diligence (e.g. from OECD on multinational 
enterprises) related to forest, agricultural  and other products, in particular as regards 
activities related to Hevea (natural rubber) and palm oil cultivation?  
 
Answer:  
 
Omnibus law organizes regulation to be more adaptable for current issues, including environment.  
 
2.3 Trade Agreements and Arrang ements  
2.3.2 Regional and preferential agreements   
Paragraph 2.31, Page 48   
In November 2019, the MoT prioritized the prompt conclusion of several international trade negotiations, 
including the Indonesia -Tunisia PTA (4th round of negotiations was to be he ld in July 2020), the 
Indonesia -Morocco PTA (1st round of negotiations was to be held in the first half of 2020), the Indonesia -
Bangladesh PTA (3rd round of negotiations was to be held in the first half of 2020), the Indonesia -
Mauritius PTA (2nd round of n egotiations was to be held in the first half of 2020), the Indonesia -Iran 
PTA (five rounds of negotiations held), the Indonesia -European Union CEPA (IEU -CEPA) (10th round of 
negotiations was to be held on 16 -20 March 2020), and the Indonesia -Turkey CEPA (I T-CEPA) (5th 
round of negotiations was to be held on 21 -23 April 2020). However, the meetings of the IEU -CEPA and 
the IT -CEPA had to be postponed due to the COVID -19 outbreak, and a new schedule was to be 
determined. In addition, in June 2020, Indonesia an d Colombia agreed to initiate and complete a joint 
feasibility study for increasing the access of several export goods to both markets.   
 
EU Question N°12:  
Is Indonesia aware that under the Customs Union Agreement with the EU, Turkey will not be 
able to im plement the 'trade in goods ' part of a future Turkey – Indonesia FTA, until the 
conclusion of the EU Indonesia CEPA? In case of earlier conclusion of the Turkey – indonesia 
FTA, will the Parties postpone entry into force of the "trade in goods part " until the conclusion 
and entry into force of the EU Indonesia CEPA?  
 
Answer:  
 
Indonesia is aware that Turkey has a Customs Union Agreement with the EU, so negotiations related to 
tariffs and ROO in the IT -CEPA negotiations must be in line with Turkey's commitmen t to the EU. 
Currently, the IT -CEPA negotiations are carried out in parallel with the IEU -CEPA negotiations and both 
are targeted for completion in 2021. TIG -related commitments between IT -CEPA and IEU -CEPA are 
expected to be aligned.  
 
2. TRADE AND INVESTM ENT REGIME  
2.4 Investment regime   
Paragraph 2.41, Page 53    
According to the OECD, Indonesia´s current investment framework remains restrictive. The signature 
on 2 November 2020 of the Omnibus Law on Job creation is expected to further liberalize and streamline 
the investment framework. This law provides general guidelines that need to be further developed by 
implementing regulation within three months.  
 
EU Question N°13:  
Could the Indonesian government clarify which business lines will experience an e limination 
or a reduction of FDI restrictions under the Omnibus Law implementing regulation? Could 
Indonesia provide an update on the state of play and timing of the implementing regulation? 
Will this be subject to comments by stakeholders?   
 WT/TPR/M/401/Add.1  
 
- 165 - 
 
  Answer:  
 
Based on Law 11 of 2020 on Job Creation Article 12 amended Law 25 of 2007 on Investment stated all 
of business acitivity are open to investment, except for business activty that are declared closed for 
investment oractivities that can only be carried out by Ce ntral Government. Further provisions on the  
capital requirements shall be stipulated in Presidential Regulation. This Presidential Regulation will 
changed the current Presidential Regulation on Negative Investment List into Investment Priority List, 
the Pr esidential Regulation of Investment Priority List still in the drafting process and to get input form 
related Ministeries under coordination of Coordinating Ministry of Economic Affairs of Indonesia. the 
Investment Priority List will be implementing regula tions of Omnibus Law Job Cretation which mandated 
that all requirement/ conditions for business activity prioritized for investment will be regulated in the 
Presidential Regulation of Investment Priority List, the list will covers: a) Business Activity Pri oritized 
with Fiscal Incentive; b)Business Activity with Non Fiscal Incentives; c) Business Acivity allocated for 
MSMEs and with partnership requirements between large business and MSMEs; d) Business activity 
open with requirements.  
 
3.1 Measures Directly Affecting Imports   
3.1.1 Customs procedures, valuation, and requirements   
3.1.1.1 Customs procedures   
Paragraph 3.16, Page 64  
The import of goods remains subject to the verification of documentation by the DGCE, and physical 
inspection in certain specific circumstances . Documentation requirements remain unchanged, and 
include an import declaration form, a pro -forma invoice, a commercial invoice, a bill of lading, and a 
packing list. A certificate of origin (e.g. for tariff preferences, prohibitions, and res trictions measures 
(lartas)), an insurance certificate, and other relevant documents may be required for certain items 
subject to certain conditions.Additional certificates are often required by technical agencies with an 
interest in the content and confor mity of the imported product, such as food, pharmaceuticals, seeds, 
or chemicals (Sections 3.1.5.2 and 3.3.2).    
 
EU Question N° 14:  
Could Indonesia detail what the "specific circumstances " mentioned in Par 3.16 are, and what 
the link, if any, with risk management is?  
 
Answer:  
 
Specific circumstances regarding the physical inspection means:  
a. The importers obtain the Red Line channel for the customs import documents submitted; or   
b. The importe rs obtain Red Line channel by random checking  
 
Both through the automation system which applies risk management.  
 
Authorized Economic Operator programme   
Paragraph 3.19, Page 66 (See also Paragraph 3.20)   
Following preparatory work since 2010, Indonesia launched the Authorized Economic Operator (AEO) 
programme in February 2015.15 The programme is aimed at ensuring: a safe supply chain; the active 
participation of AEO participants in securing the trade chain; efficient business practices for AEO 
participants; simplification of customs procedures; and compliance and recognition of international 
standards. Upon compliance with certain conditions and criteria, the DGCE may grant AEO status to 
seven categories of operators in the supply chain: importe rs; exporters; customs service management 
company PPJK (Perusahaan Pengurusan Jasa Kepabeanan); temporary storage TPS (Tempat 
Penimbunan Sementara) entrepreneurs; TPB (Tempat Penimbunan Berikat) entrepreneurs; carriers; 
and other parties.16 The expected be nefits of the programme consist of: speeding up the process of 
releasing goods with a minimum of document verification and/or physical inspection, thus reducing 
logistics costs; worldwide recognition of AEO companies as safe, secure and compliant business partners 
in international trade; increasing the effectiveness of DGCE supervision, service and efficiency of 
resource allocation; and recognition of Indonesia as a trustworthy country in international trade, 
resulting in a positive impact on the national e conomy. As at February 2020, there were 126 AEO -WT/TPR/M/401/Add.1  
 
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  certified companies, and 144 AEO certificates had been issued.17 AEO companies undertook from 8.63% 
(2015) to 33.33% (2018) of total imports in value terms.   
 
EU Question N° 15:  
What are the differences betwe en AEO programme and MITA facilities? Could Indonesia 
elaborate further?  
 
Answer:  
 
This AEO level is arguably above the Main Partner Facility (MITA). Regarding customs clearance, both 
of them get less document and/or physical examination. The difference is  that for AEO, companies can 
actively submit themselves to obtain the AEO Certificate, while for MITA it is more of an appointment 
from DJBC to certain company as that is considered both good and trusted according to MITA 
requirements on doing internationa l trade business.  
 
Import verification   
Paragraph 3.21, Page 66   
…A surveyor report outlining the surveyor firm's inspection results is a documentary requirement for 
certain goods. The verification requirements' (VPTI) product coverage was expanded to 29 ( 19 in 2013) 
product categories (338 items in 2020) that include "textile, rice, computers " to mention a few…   
 
EU Question N° 16:  
What is the share of imports that are subject to pre -shipment inspections? Are the 
pre-shipment inspections also applied to im ports from ASEAN members? Are any trading 
partners exempted and if so, which ones? To what extent do those measures extend the time 
for clearance of goods given that in the para 3.28 the Secretariat stresses the fall of 
Indonesia 's ranking in terms of ease of doing business since last review?   
 
Answer:  
 
"Indonesia's regulation related to VPTI/verification inspection can be found on MoT No. 46/2014 and 
MoT No. 116/2018. It applied to all Indonesia's trading partners. The VPTI verification process does no t 
affect clearance time, because it is conducted at the loading port of the origin country.  
 
EU Follow up questions to EU Question 16:   
The EU would appreciate if Indonesia could reply to all the elements of its question 16. In 
particular, can Indonesia g ive information about the relative share of imports that are subject 
of Preshipment inspections? This element of the question has not been replied to and the EU 
would appreciate if a reply could be given beyond the text of the legislation itself.   The EU 
question as to other imports than EU imports being subject to PSI has not been replied and 
the EU would appreciate very much receiving an answer. Finally, the EU notes also that 
Indonesia has not yet notified the WTO of its PSI legislation and would apprec iate if 
Indonesia could clarify its intentions in this regard.  
 
Answer:  
 
Indonesia does not consider VPTI as PSI activities.  
 
3.1.1.2 Customs valuation   
The latest update on the status of notifications of national legislation (G/VAL/W/232/Rev.12) only 
references one legislative notification by Indonesia (G/VAL/N/1/IDN/1, dated 27 September 2001). The 
Report by the Secretariat mentions certain amendments to implementing regulations governing customs 
value (WT TPR S 401, pages 71 -72).  
 
EU Question N°17:  
Could Indonesia please indicate if it will notify these Regulations to the WTO?   
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
Indonesia is still under coordination among related government agencies to notify the regulations.  
 
EU follow up question to question 17:  
Could Indonesia indicate when those legislations will be notified given the extreme 
importance of transparency in the area of customs, and Indonesia 's commitments under the 
TFA to implement article 1.4 in particular a nd make all legislation publicly available and 
preferably on internet.  
 
Answer : 
 
Indonesia recognizes its commitments under the WTO TFA Article 1.4 and is committed to fulfill the 
obligation to notify the regulations.  
 
The publication regarding customs related matters can be accessed through Indonesian Customs 
Website (www.beacukai.go.id) and Indonesia National Trade Repository -INTR (intr.insw.go.id) which 
are provided both in Bahasa Indonesia and in English. In addition, DGCE also provides the C ontact 
Center known as Bravo Bea Cukai that can be accessed by dialing 1500 225.  
 
The Report by the Secretariat provides that Indonesia relies on customs value databases (WT TPR S 
401, pages 72). In its replies to advance written questions in 2013 (WT/TPR/ M/278/Add.1, page 143), 
Indonesia provided that a database of prices "is also used as one of the data resources for determining 
customs value based on method II (identical goods), method III (similar goods), and method VI 
(fallback) ".  
 
EU Question N°18:  
Could Indonesia please indicate if it stills uses databases to determine the customs value 
under the identical goods, similar goods and fallback methods? If so, could Indonesia please 
elaborate on its methodology to use databases to determine the cus toms value under such 
methods?  
 
Answer:  
 
Indonesia uses database as a tool to assist customs officers during customs clearance process to 
examine the risk of undervaluation and/or abnormality of the declared value.  
 
Further, the reasonable customs value testing is carried out on all types of imported commodities whose 
customs value has been notified in an import customs notification based on risk management.  
 
DGCE does not depend on sources related to imported goods; DJBC still adheres to the princi ple of value 
transactions of imported goods that meet certain conditions for the calculation of import duties and 
PDRI.  
 
DGCE making an assessment based on the risk of the importer and the average price of the same or 
similar products imported during the p revious 60 days or 90 days, it can be stated that in determining 
the customs value if using the identical goods method or similar goods, the regulated period is 30 (thirty) 
days before or after the date of the transport document of the imported goods being  examined for 
customs value, whereas if using the repetition method the period is 90 (ninety) days before or after the 
date of the transport document of the imported goods being examined the customs.  
 
Paragraph 3.32, Page 72   
"…Mis-invoicing remains an are a of concern for Indonesia… "  
 
EU Question N° 19:    
Does Indonesia intend to solve this problem of mis -invoicing and if so, how?   
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
Regarding the data on percentage of transaction value as basis for customs valuation in 2020, we believe 
that it does not reflect the whole year because the data shown is only from January to June 2020 period.  
However, the decrease in the use of the transaction value is occured because there were some 
importations which could not use the transaction value method due  to failure to fulfill the requirement 
such as the goods were not commercial goods or there was a personal connection between buyer and 
seller which affected the price. In addition, the importers still have the rights to apply for objection and 
appeal for the decision made by customs.  
 
3.1.4 Other charges affecting imports  
Paragraph  3.5.4, Page 83   
The withholding tax policy allows the government to collect more tax revenue in advance but can result 
in tax overpayment by importers.   
 
EU Question N° 20:  
Is Indonesia considering eliminating this discriminatory policy, which is contrary to the 
principle of National Treatment in the WTO?  
 
Answer:  
 
Indonesia is a member of WTO that comply to WTO's National Treatment principles.  
 
3.1.5 Import prohibitions, restrictions, and licensing   
3.1.5.2 Import licensing   
Paragraph 3.58, Page 84 (See also Paragraphs 3.59 -3.63)   
 
Under Law No. 7/2014, Indonesia's policy objective has been to structure licensing procedures for the 
smooth flow of goods. Accor ding to the authorities, Indonesia simplified import (and export) licensing 
through online and digital signature, thus improving its efficiency and centralization.   
 
EU Question N°21:  
Please explain what Indonesia will do to ensure that the license procedu res are transparent, 
simplified and efficient in use, thus avoiding using the license system to block or delay import 
of certain type of products.   
 
Answer:  
 
Indonesia continues to improve and develop online system for import permit applications, inter ali a, by 
synchronizing applications between ministries (issuance of recommendations are automatically 
transfered to ministry of trade system). Import permits are requested and issued via online and can be 
done at anytime and anywhere. Indonesia continues to imp rove and develop the policy in accordance 
with the Agreement on Import Licensing Procedures.  
 
EU Question N°22:   
Could Indonesia explain how the Omnibus Law will improve the license procedures and give 
a timeline for its implementation?  
 
Answer:  
 
Job Creat ion Law is improving business import licencing regime. Currently, Indonesia is still under 
process of discussing the implementation of the regulation.  
 
Paragraph 3.59 to 3.63   
The report indicates an increasing use of import licensing requirements, which a re applied to almost one 
third (30,6%) of all tariff lines compared to one fifth in 2012. In the case of horticulture products, import 
authorisations are subject to use -related requirements that further restrict imports for trading and 
distribution purpose s (as opposed for imports meant to be used as inputs in the production process). WT/TPR/M/401/Add.1  
 
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  These obstacles often result in product shortages and higher prices for consumers, which could not be 
compatible with some of the stated objectives of the licensing system acc ording to the Indonesian 
Government such as food security and protection of consumers (table A3.4 of the report, page 240).   
 
EU Question N°23:  
Does Indonesia consider that licensing requirements for horticulture and animal products 
have contributed to foo d price inflation and product shortages within Indonesia?   
 
Answer:  
 
Licensing requirements for horticulture and animal products do not contribute to food price inflation and 
product shortages within Indonesia.  
 
EU Question N°24:  
Are these requirements consistent with Indonesia 's rationale for introducing the licensing 
system for horticulture products, in particular the objectives of food security and protection 
of consumers?   
 
Answer:  
 
Indonesia policy maintains the role of imports as assur ance for Indonesian consumers to access a 
broader range of products in accordance with food security at more competitive prices.  
 
 
3.1 Measures directly affecting import  
3.1.6 Anti -dumping, countervailing and safeguard measures  
3.1.6.2 Safeguards   
Paragrap h 3.69, Page 86 -88  
During the period under review, Indonesia has reduced the initiation of the safeguards investigation. 
However, it remains a WTO member who relies the most on, and implements measures on the basis of 
this, trade defence instrument.   
 
EU Question N°25:  
Could we be confident that Indonesia will reduce the initiation and imposition of safeguard 
measures, using this instrument only in exceptional circumstances?  
 
Answer:  
 
In terms of carrying out a safeguard investigation, KPPI is always su bject to the applicable provisions. 
In its investigation, KPPI is objective and measurable in relation to the condition of the Domestic Industry 
as stipulated in the Safeguard Agreement Articel 4.2 and Government Regulation No.34 of 2011 article 
75. Indone sia retains rights and obligations under Article XIX of GATT 1994 and WTO Agreement on 
Safeguards on the initiation and imposition of safeguard measure.  
 
EU follow up questions to question 25:  
The Commission recognises the right of Indonesia to make use of  safeguards, but the 
question was rather focused on the number of cases. Safeguard is an emergency/temporary 
measure to allow domestic producers to adjust to situations and should only be used in 
exceptional cases. Could Indonesia explain to what step they  are undertaking to rather use 
country specific trade defence instruments such as anti -dumping to solve potential issues 
without unnecessarily affecting all countries of origin?   
Could Indonesia explain how they ensure due process during these investigatio ns and in 
particular how it allows exporters to submit information, data or questionnaire replies and 
how this is taken into consideration by the investigating authorities?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
Indonesia is open for any petitions by domestic industry to initiate investigation regardless of 
safeguard/anti -dumping/anti -subsidy as long as it is supported by prima facie evidence to do so, and 
Indonesia is committed to adhere to WTO regulation in cond ucting investigation.  
 
Based on article 72 GR No. 34/2011 the domestic industry requests the investigating authority to initiate 
investigation on safeguard. The investigation is to provide a level of playing field for domestic industries 
to compete on a f airer basis. Indonesia is committed to using trade remedies more prudently and in 
compliance with the WTO rules.  
 
Based on Article 3.1 Agreement on Safeguards that the investigation shall include reasonable public 
notice to all interested parties and publi c hearings or other appropriate means in which importers, 
exporters and other interested parties could present evidence and their views. Therefore, the exporters 
have rights to submit their views on the safeguard investigation start on the date of initiati on of 
safeguard investigation until the end of safeguard investigation.  
 
EU Question N°26:  
It would be interesting to have an assessment of the effectiveness of the safeguards 
measures in place in the light of the structural adjustment plans that the indus try may 
submit. Are these plans being submitted to the authorities as part of the SG investigation 
processes?  
 
Answer:  
 
The Domestic industry as an applicant should provide structural adjustment plans as one of the 
requirements during the process of invest igation in accordance with WTO Agreement on Safeguards 
Article 5. Moreover, domestic industry as applicants is also required to draw up a structural adjustment 
plan as an obligation for them when the safeguard measures are implemented.  
 
3.2.3.1 Export proh ibitions  
Table 3.7 Export prohibitions, Page 92   
 
EU Question N°27:  
How successful have the export restrictions been, as Indonesia still exports more than 80% 
of its raw rubber production?   Have they intensified the production of domestic tyres and 
other rubber products, and has this lead to better income in the form of higher producer 
prices of raw rubber for smallholder farmers, and thus made them more resilient against 
economic shocks? Or have the restrictions shifted to the establishment of large  rubber 
plantations, either state owned or private ones?    
 
Answer:  
 
Indonesia believes that current regulation will maintain international and domestic supply at the same 
level of market price for the whole stakeholders.  
 
3.3.2.2 Standards  
3.3.2.3 Techni cal regulations   
Paragraph 3.125, Page 113   
Since January 2013, specific trade concerns (STCs) were raised by several Members regarding 
Indonesia's measures on: various processed and unprocessed foods, particularly with respect to halal 
requirements; toys;  ceramics; cell phones and computers; broadband equipment; and alcoholic 
beverages (Table 3.21). All of these STCs were raised for the first time during the review period, with 
the exception of the one related to toy safety requirements, which was first ra ised in 2011 and continues 
to be of concern to several WTO Members.   
 WT/TPR/M/401/Add.1  
 
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  EU Question N°28:  
The EU continues to have specific trade concerns raised about the implementation of the Halal 
Law in Indonesia, more particularly questioning the necessity of concluding a Government -
to-Government agreement in order to establish the recognition of halal certification in EU 
Member States.  
 
Why does Indonesia require a Government -to-Government agreement in order to establish 
the recognition of halal certification in EU Member States?  
 
The EU would also like to understand the rationale of asking for a cooperation agreement 
between foreign Halal certification bodies and the Indonesian Halal Products Assurance 
Agency (BPJPH) as a pre -condition for recognition of Halal  certificates, which represents an 
excessive burden for economic operators.  
 
Can Indonesia please explain the modifications made by the new Omnibus Law on Job 
Creation to the Indonesian Halal Guarantee Law 33 of September 2014?  
 
Moreover, the EU asks Indonesia to explain the necessity of requiring the indication of 
"non-Halal " substances for non -Halal products, which is a very cumbersome requirement and 
appears redundant.  
 
Finally, Indonesia appears to be the only country willing to negotiate a Government -to-
Government agreement to implement its regulations and apply them to the p roducts it 
imports. Can the Indonesian authorities clarify the reasons for this choice rather than 
favouring a more flexible approach involving private sector actors and not foreign 
governments? Can the secretariat clarify the status of the specific commer cial concern (STC) 
treatment regarding Indonesian halal law?  
 
Answer:  
 
• Indonesia needs assurance that foreign halal institutions that are recognized and cooperated with 
Indonesia are legal recognized by the foreign country.  
• There are no changes to the prov isions related to international cooperation in the legal products of 
Law No. 11/2020 on Job Creation.  
• Non-halal products are products that prohibited according to Islamic law (Article 18 to Article 20 of 
the Halal Assurance Law) to ensure that every religi ous adherent is able to worship and practice 
their religious teachings, the state is obliged to provide protection and guarantees that products 
consumed and used by the community are halal.  
 
3.3 Measures affecting production and trade  
3.3.3 Sanitary and ph ytosanitary requirements  
3.3.3.2.3 Horticulture   
 
Paragraph 3.143, Page 120 (See also Paragraph 3.144)   
MoA Regulation No. 55/2016 stipulates that fresh food of plant origin may only be imported to Indonesia 
from countries whose food safety control systems  are recognized by Indonesia or countries with 
registered food safety testing laboratories.   
Recognition of food safety control systems is done on a country -by-country basis, and in the experience 
of EU Member States, the process is excessively burdensome,  lacks transparency, and is prone to 
generating very considerable delays. Despite the EU raising this question as a STC in the WTO SPS 
Committee in 2018, no changes have been experienced .  
 
EU Question N°29:  
Could Indonesia explain the reasons behind the delays of more than three and four years in 
the recognition of food safety control systems experienced by several EU Member States?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
All countries that have submitted applications for Fresh Food of Plant Origin (PSAT) recognition so far 
have n ever been delayed, unless there is a lack of data/document requirements which will be 
communicated immediately by Indonesia Agricultural Quarantine Agency. Basically, the PSAT 
recognition process is completed in an average of 1 year.  
 
EU Question N°30:  
Could Indonesia explain the rationale that justifies the port of entry restriction applied on 
MoA Decree No 42 of 2012 and MoA Decree No 43 of 2017? How is the limitation of entry 
points in line with Indonesia´s obligations under the WTO SPS Agreement to put 
proportionate SPS measures in place, to minimise negative trade effects, not to discriminate 
against other trading partners and to avoid putting trade disruptive measures in place?    
 
Answer:  
 
MoA Decree No. 42 of 2012 and MoA Decree No. 43 of 2017 is not related to the port of entry restrictions, 
but only regulates the entry point requirements.  
 
3.3.5 State trading, SOEs, and privatization  
3.3.5.2 SOEs and privatization   
Paragraph 3.176, Page 127   
"… In this regard, the authorities commented that SOEs are value creators that contribute to the national 
economy and state revenue; are development agencies that realize government programmes to create 
a multiplier effect on the national economy; provide goods and services for the livelihood needs of the 
comm unity; pioneer business activities that have not been able to be carried out by the private sector 
or cooperatives; and are involved in helping entrepreneurs economically. They noted that fiscal transfers 
received by SOEs are generally in the form of reimb ursement and capital injection, … "  
 
EU Question N° 31:  
Could Indonesia please further elaborate on the SOE 's role in and scope of (a) 'realising 
government programme 's and (b) 'helping entrepreneurs economically '? Could Indonesia 
indicate the size and for ms of reimbursement and capital injections to SOEs for these 
purposes, and also if such activities are supported, also indirectly, by government funds or 
by other means involving other SOEs?   
 
Answer:  
 
SOEs take an active role in carrying out government programs, either directly or indirectly, in the form 
of special tasks. For example, a special task from the government to SOEs is the construction of toll 
roads in various regions which are considered have a low economic value.  
In supporting SOE s to perform special tasks optimally, the Government provides 3 support for SOEs 
such as capital injection, soft loans from other SOE and acceleration of receivable disbursement from 
government. Additional support such as complimentary of policy support wi ll be tailored in accordance 
with the characteristics of SOEs.  
 
EU Question N° 32:  
With the crisis and the difficulties encountered by public enterprises, does the government 
intend to reduce the number of monopolies held by public enterprises in order to stimulate 
the private sector and private investments (and thus reduce public expenditure associated 
with subsidies)? In particular, for infrastructure, Indonesia plans to set up a sovereign fund 
to finance projects that are part of a sustainable d evelopment approach. To what extent will 
this sovereign fund be open to the participation of foreign and private investors as well as 
multilateral development banks? How will greater private sector participation in 
infrastructure projects be encouraged (fo r example through public -private partnerships with 
sufficiently incentive conditions)?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
In carrying out infrastructure projects or special tasks from government, SOEs also partner with the 
private sector as an important part. The role of the priva te sector could be found in the form of funding, 
raw material support, and etc. Special tasks, given by the government especially in the infrastructure 
sector to SOEs, is part of the government's role to ensure various projects in public interest so it cou ld 
be completed properly.  
 
To support SOEs in the infrastructure sector in completing various special tasks, the government has 
prepared an alternative financing roadmap, with 3 financing planning pillars such as:  
a. Portfolio Rebalancing  
b. Strategic Partnershi p 
c. Capital Recycling  
 
As mentioned in our Strategic Plan about stimulating investment, we try to attract investment from 
private sector, foreign investor and social investor. In addition to the 3 pillars, there are 2 alternative 
financing schemes, such as P ublic Private Partnership (e.g., SOE (Waskita Karya) divest some of toll 
road ownership to private sector), and Investment Financing Non -State Budget (PINA).  
 
3.3.3.2.4 Live animals, meat and dairy products,   
Paragraph 3.145, Page 121   
"Risk assessment pro cedures for the import of live animals are based on Ministerial Decree No. 41 of 
2019; they are implemented by the Directorate General of Livestock and Animal Health within the MoA. 
Only approved meat and poultry establishments, and those exporting animal -derived products (i.e. dairy 
and eggs), may import products into Indonesia. Since 2017, fees have been levied for the inspection of 
animal products under GR No. 35/2016 (previously, the costs were borne by the Indonesian 
Government); fees charged depend on  the number of establishments to be inspected, the number of 
auditors, and the number of audit days. According to the authorities, they are usually more -or-less 
USD 10,000, depending on the distance the auditors must travel, and air -fare and accommodation 
costs. "  
 
EU Question N°33:  
The EU asks Indonesia, in accordance with WTO SPS agreement annex C, in particular 1(a) 
and (b), to provide details on its import approval procedures for milk, milk products and meat 
and meat products, including the standard processing period of each procedure. The EU 
additionally asks Indonesia to ensure that procedures are undertaken and completed without 
undue delay and in no less favorable manner for imported products than for like domestic 
products.    
 
Fees: The EU has been informed that the following fees were introduced for import applications, 
approximately 1000 € for the desk evaluation of each exporting establishment, approximately 800 € per 
inspector per day for the on -site visit plus another 1000 € for the after visit report and evaluation. 
According to the codex guidelines for the design, operation, assessment and accreditation of food import 
and export inspection and certification systems CAC/GL 26 -1997: "The costs incurred in undertaking an 
assessment, in cluding all travel costs, costs of technical experts and auditors or inspectors, and costs 
of support staff should normally be borne by the competent authority of the importing country except 
as may otherwise be agreed." In addition the SPS agreement annex  C, 1 (f) lays down that: "any fees 
imposed for the procedures on imported products are equitable in relation to any fees charged on like 
domestic products or products originating in any other Member and should be no higher than the actual 
cost of the serv ice" 
 
Answer:  
 
The procedures are complete the questionnaires, supporting documnets, payment. The result from on 
site review will be evaluated on Import Risk Analyss that gives recommendation regarding import permit.  
 WT/TPR/M/401/Add.1  
 
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  EU Question N°34:  
Can Indonesia please explain how the amounts for desk evaluation and on -site visits have 
been calculated (What is the service rendered? How much is the cost of that service 
rendered? How does the fee relate to the cost of the service rendered?). Please also pr ovide 
the legal basis for a similar fee being levied on local products.  
 
Answer:  
 
The fees for public services are formulated based on the following considerations:  
a.  the impact of imposed fees to the general public and business;  
b.  the actual costs inc urred to deliver such services;  
c.  fairness; and/or  
d.  Government policy.  
 
3.3.6 Government Procurement   
3.3.6.1 Features   
Paragraph 3.181, Page 131   
All procuring entities must operate their own electronic procurement system (LPSE), on which they must 
post information on individual tenders up until the signing of the contract; the LPSEs can be accessed 
through the portal http://inaproc.id/lpse. Providers of goods and services that want to take part in 
bidding processes must register with these LPSE s (this is free of charge). Almost all central government 
ministries and agencies as well as local governments have established their LPSEs, except some in the 
eastern part of Indonesia. A distributed procurement database is installed with the LPSEs, and 
aggregates all their procurement announcements and accompanying tender documentation. In turn, 
tender announcements are publicly available through the single national e -portal INAPROC 
(http://inaproc.id/tender).    
 
EU Question N°  35: 
We understand that prov iders of goods and services that want to take part in bidding 
processes must register with the electronic procurement systems (LPSEs) of Indonesian 
procuring entities. Are foreign companies eligible to register in these LPSEs? If so, are 
registration reque sts from foreign providers treated differently to those submitted by 
Indonesian providers?  
 
Answer:  
 
Foreign companies can register to LPSEs where they want to participate in a tender. However, at the 
moment, foreign companies should register to LPSEs ever y time they want to bid as the registration for 
foreign companies has not been aggregated to all LPSEs.  
 
Paragraph 3.182, Page 131   
An e-catalogue system was introduced in 2012, in order to enhance transparency regarding, and curb 
corruption in, government  procurement; it is a publicly available electronic information system (viewed 
at: https://e -katalog.lkpp.go.id) which contains detailed product, pricing, specification, and supplier 
information, as well as current openings. The website contains commoditie s and products for the national 
catalogue (managed by the National Public Procurement Agency (NPPA)), sectoral catalogues (managed 
by ministries) and local catalogues (managed by local governments). For some commodities, such as 
medicine, the availability (stock) of goods is also included in the e -catalogue. Since 2018, it has become 
a formal feature of the procurement process (see below). Foreign suppliers seeking to have their 
products listed in the e -catalogue must use an Indonesian company agent or dist ributor company to 
commence the sales, and adhere to all national laws and regulations.   
 
EU Question N°  36: 
The current mechanism for determining which companies can enter the Indonesian 
e-catalogue system appears to be non -transparent. We also understand  that foreign suppliers 
seeking to have their products listed in the e -catalogue must use an Indonesian company 
agent or distributor company to commence the sales. What is the reason for requiring an WT/TPR/M/401/Add.1  
 
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  Indonesian company agent or distributor company? Does In donesia intend to allow foreign 
companies to register directly in the future?   
 
Answer:  
 
1. To facilitate/ease foreign supplier understand Indonesia market and reach out the market (base on 
local supplier experience);  
2. To Encourage investment.  
 
EU follow up question to question 36:  
Does Indonesia intend to allow foreign companies to register directly in the future?  
 
Answer:  
Indonesia cannot speculate on possible future measures or policy changes.  
 
3.3.6 Government Procurement   
3.3.6.2 Institutional and regula tory framework   
Paragraph 3.186, Page 132   
PR No. 16/2018 covers the procurement of goods and services at the central and local government 
levels that are financed (wholly or partially) through the state or regional budgets, as well as 
procurement financed by domestic or foreign loans or grants. It does not apply to: procurement for 
public service agencies; procurement carried out based on a publicly published tariff; procurement 
carried out in accordance with an established business pra ctice; or procurement stipulated under other 
prevailing laws and regulations.278 Procurements by SOEs and their subsidiaries and affiliated 
companies are not covered by this Regulation.   
 
EU Question N°  37: 
PR No. 16/2018 on Public Procurement of Goods/Ser vices appears to apply to only some 
types of procurement. Could Indonesia please clarify the scope of said Regulation, indicating 
which types of procurement it applies to and to which ones it does not apply?   
 
Answer:  
 
The scopes of applying Presidential R egulation No. 16/2018 Article 2 include:  
a. Procurement within Ministries/Institutions/Regional Apparatuses using the State Budget/Regional 
Budget;  
b. Procurement using the State Budget/Regional Budget as referred to in point a, including 
Procurement of that is partially or wholly financed by domestic loans and/or grants received by the 
Government and/or the LocalGovernment; and/or  
c. Procurement using the  State Budget/Regional Budget as referred to in point a including the 
Procurement that is partially or wholly financed by offshore loans or grants.  
 
EU follow up question to question 37:  
It would be useful to receive explicit information also on which type s of procurement PR 
No. 16/2018 does NOT apply to.  
 
Answer:  
 
PR 16/2018 excludes procurement for public service agencies; procurement carried out based on a 
publicly published tariff; procurement carried out in accordance with an established business practice; 
and procurement stipulated under other prevailing laws and regulations. The procurement of SOEs and 
their subsidiaries and affiliated companies are not covered in the PR 16/2018 are also notcovered.  
 
For the purpose of explicit informati on regarding exclusion of application of PR 16/2018, please refer to 
below explanation:  
1. Public services agencies means agencies which are established to give services to the public by 
providing goods/services without prioritizing profits and in carrying ou t its activities based on 
efficiency and productivity principles (such as hospitals).  WT/TPR/M/401/Add.1  
 
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  2. Procurement carried out based on publicy publish tariff, such as electricity, clean water and gasoline.  
3. Procurement carried out in accordance with an establised business practice, such as certain 
professional services which have standard remuneration, expert services, honorarium stipulated by 
their professional associations.  
 
Above information are explained in National Public Procurement Agency (NPPA) Regulation No. 12 Yea r 
2018 regarding Guidelines for Procurement Excluded from Government Procurement.  
 
Paragraph 3.187, Page 132  
Key changes introduced by PR No. 16/2018 are: (i) regulation and recognition of e -marketplaces as new 
media for electronic procurement; (ii) simpli fication of tender procedures through reducing the variety 
of tender methods and type of contracts, simplifying requirements for providers to join a bidding, and 
simplifying procedures for procurement in a state of emergency; (iii) the introduction of a "q uick tender" 
method of selection and the elimination of "contests" as a method of selection (see below); (iv) 
harmonization with other prevailing regulations related to procurement; (v) adoption of international 
best practices; (vi) reflection of governmen t policy in relation to participation of MSMEs, use of local 
products, research practices, handling of emergency situations, offshore procurement, international 
tender/selection, and sustainable procurement (vii) strengthened institutional and human resour ces 
procurement; (viii) an increase in the maximum threshold for direct procurement for consultancy 
services from IDR 50 million to IDR 100 million; (ix) inclusion of the concept of the e -reverse auction 
as a price offering method that is conducted repeate dly; (x) amendments to, and extension of, the 
scope of types of special procurement; (xi) stipulation of minimum bid bond values required for 
construction products; and (xii) introduction of contract dispute resettlement services.    
 
EU Question N° 38:  
We understand that "international best practices " have been taken up in PR No. 16/2018. 
Could Indonesia please clarify which provisions of the PR have been inspired by such 
international best practices and how these relate to the protectionist orientation of the act?     
 
Answer:  
 
Some provisions in Presidential Regulation No. 16/2018 and its implementing regulations have been 
inspired by international best practices, such as the use of reverse auction, the use of repeat order, the 
involvement of CSO in GP, emergency procurement, and fra mework agreement/blanket purchase 
agreement.  
 
EU Question N° 39:  
No. 16/2018 has further strengthened the nationally protectionist orientation of Indonesian 
procurement rules, notably with regard to local content requirements, significantly 
reinforced dome stic price preferences, and the obligation to establish a consortium with local 
suppliers. At the same time, Indonesia is negotiating international trade agreements 
including comprehensive government procurement chapters. How does Indonesia intend to 
recon cile the protectionist provisions of its national procurement legislation with the 
openness and non -discrimination requirements of international agreements in the field of 
government procurement?   
 
Answer:  
 
The purpose of Government Procurement including e ncourages participation of MSMEs, enhances role 
national Economic Operators; encourage economy equality; encorages sustainable public procurement.  
 
Moreover, Indonesia supports international competition to achieve the purpose of government 
procurement as long as it is in line with national laws and regulations.  
 WT/TPR/M/401/Add.1  
 
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  4.1.2 Policy, regulatory and institutional developments  
Policy and institutional framework   
Paragraph 4.17, Page 151   
"In line with its commitment under the United Nations Convention of Biological Diversity, the Indonesia 
Biodiversity Strategy and Action Plan for 2015 -20 addresses biodiversity management, with a focus on 
strengthening productivity, national competitiveness and economic self -sufficiency. To make agriculture, 
forestry and fisheries mo re productive and sustainable, the Plan proposes: expansion and sustainable 
management of lands for agriculture, plantations and animal husbandry; improvement of production 
and productivity of environmentally friendly agricultural products; increased produ ction and productivity 
of sustainable plantation crops; development of an environmentally friendly horticultural plant protection 
system; improvement of the quarantine system and its quality for agricultural, animal, and fisheries 
products; security of bio diversity; development of a forestry plan and improvement of forestry areas; 
and sustainable management of protected forests …"  
 
EU Question N°40:  
We note that in recent years there has been a reduction in the expansion of oil palm 
plantation areas and a r eduction in deforestation, in part due to measures taken by the 
government (moratoria, certification, etc.). However, increasing productivity (especially for 
small producers) remains central to tackling deforestation, given the targets and trajectories 
of palm oil production. In this regard, can the Indonesian authorities specify what concrete 
measures are taken or planned to improve the productivity of plantations, in particular for 
small producers?  
 
Answer:  
 
Through the "smallholder oil palm rejuvenation " program, the Ministry of Agriculture does not encourage 
farmers to expand or open new land but rather rejuvenate oil palm trees to increase oil palm 
productivity. The Indonesian government has not yet recommended expansion related to the 
moratorium. Indonesia focuses on increasing productivity by replanting oil palm trees.  
 
4.1.6 Fisheries   
Regulatory and operational framework   
Paragraph 4.65, Page 162   
… According to MMAF data, between 2015 and 2019, capture fisheries production targets (mari ne and 
inland) rose from an overall 6.30 million tonnes to 10.47 million tonnes, and marine capture fisheries 
production rose from 6.20 million tonnes to 6.98 million tonnes. Reportedly, additional increases of 
these levels could have a significant impact on the future fisheries potential of the country, as nearly 
half of the wild capture fish stocks are overexploited, and at least seven WPPs show no opportunity for 
immediate expansion of production.71 The authorities disagree with this view, and indicated that they 
continuously review fish stocks for better fisheries management.   
 
EU Question N° 41:  
Could Indonesia provide its assessment of what percentage of wild capture fish stocks are overexploited?  
 
Answer:  
 
Potential estimates, total allowable catch, and utilization level as stated on MMAF Regulation 
No. 50/2017.  
 
According to abovementioned regulation, there are 99 types of fish stocks which status have been 
determined and there are 34 types of fish stok determined as overexploited or around 34 %. The 
regulation mandates reduction of fishing capacity on overexploited stocks.  
 
Domestic Support Measures   
Paragraph 4.72, Page 164 (see also Paragraph 4.141)  
Subsidized diesel continues to be provided, but in a more focused manner. Since 2015, access t o this 
subsidy was limited to boats of less than 30 GT.79 In response to attempts by larger boat owners to 
circumvent this change, the MMAF underwent a re -measuring and re -certifying exercise, thereby WT/TPR/M/401/Add.1  
 
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  eliminating access to subsidies for boats that are in r eality greater than 30 GT. According to state -owned 
PT Pertamina oil and natural gas mining company (Section 4.2.2.1.1) data, 1.2 million kilolitres (kL) of 
subsidized fuel was provided to fishers in 2016, down 19.46% from 1.49 million kL in 2015. No data on 
the budgetary outlays supporting this subsidy were available from the authorities. The authorities hass 
considered the removal of all fuel subsidies for fishers, but this has not yet taken place.   
 
EU Question N° 42:  
Could Indonesia provide further deta ils on diesel subsidization for fishing and other 
purposes? How is the subsidy determined, and what is the maximum and average amount by 
liter (or kL)? Are there measures in place to ensure that the subsidies for diesel and other 
fuels do not lower the pri ce below the world market price?  
 
Answer:  
 
Fuel subsidy is only granted to small -scale fishermen in order to protect the lives of community on the 
coast of small islands which are widespread in archipelagic waters and are very vulnerable to climate 
change and have problems in marketing transportation.  
 
EU follow up question to question 42:  
Could Indonesia provide information on the overall budgetary outlays for fuel 
subsidies?  Could Indonesia provide information how the fuel subsidies impact on actual cost 
of fuel and how such fuel subsidies are designed and implemented?   
 
Answer:  
 
Diesel fuel subsidy recipients are fishing vessels under 30 GT with maximum and average allocation of 
25 kL/month  
 
4.1.7 Forestry   
Paragraph 4.78, Page 166   
" In 2015, the total area of production forests rose from 56 million ha (2015) to 68 million ha (2018).87 
These forest areas consist of various types of land such as primary forests, secondary forests, forest 
plantations, and non -forested land (including end emic sand plains, savanna, and alpine tundra within 
conservation areas). "  
 
EU Question N°43:   
The WTO report indicates an increase from 56 M Ha in 2015 to 68 M ha in 2018 of production 
forest areas. How has this been achieved (e.g. by new plantations and/or reclassification of 
protected forest and/or loss of protected forest)? What are the projected trend and targets 
for the next decades and why?    
 
Answer:  
 
The difference between the data in 2015 and 2018 shows the recalculation of forest areas based on new 
information and delineation processes.  
 
EU Question N°44:   
Even though the area of production forests has increased by 21.5 % (see Q1), there have 
been relatively modest increases in the output of Indonesian forest products. Given the 
continuing need for part of domestic Indonesian demand for forest products to be met by 
imports, please explain how increasing import tariffs on forest products is designed to 
encourage domestic forest -based industries. (Experience over decades indicate that  such 
"protection " measures rather become self -defeating, leading to domestic industries 
becoming complacent and uncompetitive).   
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
Timber for forest -based industries are now also supplied by private forests that are significnatly 
increasing, espei ally in Java Island. This may also an incentive for private/communities to produce 
timber due to tarrif policy for imported timber.  
 
4.2 Mining and Energy  
4.2.1 Mining   
Border Measures   
 
Paragraph 4.91, Page 170   
On 15 November 2016, following the signatur e in September 2013 and ratification in April 2014 of the 
Voluntary Partnership Agreement (VPA) with the European Union, Indonesia issued the world's first 
Forest Law Enforcement, Governance and Trade (FLEGT) timber export licences, certifying that the 
timber was harvested, transported, processed and traded according to Indonesian law.112. FLEGT 
licences provide an economic incentive to producers, ensuring their shipments a green lane into major 
EU timber markets, and exempting them from the due diligence p rocedures for non -licensed timber 
imports.   
 
EU Question N° 45:  
Indonesia has been the only FLEGT partner country to deliver FLEGT -licensed wood -based 
products to the EU (since 2016), and that is to be applauded. Are there any discussions 
underway on the r evision of the national timber legality verification system (SVLK) in order 
to respond to the difficulties encountered by small producers of wood processing (whose 
associations criticized a system of certification binding and expensive as more suitable for  
large farms)? Could this have an influence on the VPA voluntary agreement with the EU 
regarding the FLEGT certification system?   
 
Answer:  
 
There are no discussions on the revision of SVLK. Indonesia respects our original commitment under 
VPA Voluntary Partnership Agreement with the EU.  
 
Paragraph 4.104, Page 174  
Export taxes and restrictions to support the development of domestic downstream processing facilities 
were continued. Export taxes, currently ranging from zero to 60% (unprocessed mine rals), continue to 
be levied on mineral ores, depending on their stage of processing. They were first put in place in 2017, 
and were changed in 2018 (Section 3.2.2, and Table 3.6); lower rates benefit mining companies 
committed to developing processing or refining facilities.139 A ban on exports of unprocessed (or not -
sufficiently processed) minerals was imposed in January 2014 but was relaxed on 11 January 2017 (the 
end of the three -year transition period) for a period of five years (i.e. 2022), allowing m ining companies 
to continue exporting semi -processed products provided that they pay export taxes under the applicable 
laws and regulations on the minimum domestic processing and refining requirements. Reportedly, the 
validity of certain documents necessar y to export low -concentration nickel ore were to expire on 
31 December 2019, thereby effectively reinstating the total export prohibition of nickel ore as of 
1 January 2020 (Section 3.2.3.2). In the context of the WTO dispute settlement mechanism, on 
22 November 2019, the European Union requested consultations with Indonesia regarding various 
measures concerning certain raw materials necessary for the production of stainless steel, including 
restrictions (Sections 2.3.1.1, 3.1.3.6 and 3.2 .3.2) on exports of nickel.   
 
EU Question N° 46:  
The ban on the export of nickel ore had a detrimental effect on its price. Another effect is that 
the domestic demand cannot absorb the production, causing problems for the mining 
companies. Will Indonesia a llow the export of nickel ore in the future?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
At present, Indonesia has more than 10 smelters opperating actively and will continue to develop several 
others. Even indonesia is now limiting the development of high scale of smelters, at present, al l of the 
raw mining product are being absorbed by the domestic smelters under the written contract or under 
irregular supply.  
 
Domestic Production Measures   
Coal  
Paragraph 4.109, Page 176 (See also paragraph 4.238)  
During the review period, in addition to  other measures discussed above, coal has been subject to 
special pricing (Section 3.3.4.2), DMO, and transport/insurance (implementation pending) 
requirements, in an attempt to support the state -owned electricity company PT Perusahaan Listrik 
Negara (Pers ero) PLN and national shipping and insurance industries. In March 2020, the MoEMR set 
the selling price of coal (with a calorific value of 6,322 kcal/kg Gross as Received, a total moisture of 
8%, etc.) (HBA) procured for electricity generation for public u se at a maximum of USD 67.08/mt 
compared to USD 90.57/mt in March 2019.148 The HBA for coal is set on a monthly basis; the annual 
HBA was USD 95.5/tonne (2012), USD 82.9/tonne (2013), USD 72.6/tonne (2014), USD 60.1/tonne 
(2015), USD 61.8/tonne (2016), USD  85.9/tonne (2017), USD 66.3/tonne (2019), and USD 52.98/tonne 
(2020).149 Since April 2010, CCoWs, IUP -OPs and IUPK -OPs holders have been required to meet the 
minimum coal DMO of 25% of their annual production plan, as approved by the MoEMR in 2018, the 
coal DMO was set at 25% of the production volume (of which 80% designated for the state -owned 
electricity company PLN (Section 4.2.3.2)), with the coal reference price, capped at a maximum of 
USD 70/mt, where the HBA exceeds USD 70/mt.150 A mining company un able to meet its DMO 
obligation may purchase DMO credits from mining companies that have exceeded their DMO obligations. 
Between 2013 and 2019, in practice, the DMO ratio rose progressively from 15.2% to 22.5% of the 
actual coal output, which also increase d steadily from 474.00 tonnes to 616.16 tonnes. Under MoT 
Regulation No. 82/2017, coal exporters are required to use Indonesian -owned sea transportation 
companies, and insurance from domestically owned insurance companies, except when no national 
provider is available or when an exemption has been approved by the Minister of Trade; following strong 
reaction from the coal industry relating to the readiness of the national shipping to support coal exports 
and the fact that most coal is exported free -on-board with the buyer bearing the cost of insurance and 
freight, implementation was delayed until May 2019 for insurance and May 2020 for shipping.   
 
EU Question N° 47:  
Could Indonesia explain whether there are plans to amend MoT Regulation No. 82/2017 and 
Decree  No. 40/2020? According to Decree No. 40/2020, the obligation to use Indonesian 
insurance and shipping services applies not only to shipments of coal but also to PCO and 
rice, if the vessels have a capacity of up to 15,000 -deadweight tonnage. However, Indo nesia 
has taken national treatment commitments for the relevant mode of supply in GATS.   
 
Answer:  
 
The MoT No. 82/2017 has been revoked and the amendments for MoT No. 40/2020 have been made 
with the issuance of MoT No. 65/2020. The Implementation of MoT No. 40/2020 and MOT No. 65/2020 
should not be an obstacle for members considering several changes have been made.  
 
4.2.2 Energy   
Paragraph 4,111, Page 177   
"The KEN sets a clear target for the share of each type of primary energy, from 2025 to 2050, as follows: 
new and renewable energy (NRE) at least 23% in 2025 and 31% in 2050; oil less than 25% in 2025 
and 20% in 2050; coal at least 30% in 2025 and 25% in 2050; and gas at least 22% in 2025 and 24% 
in 2050.153 The RPJMN 201 5-19 was, inter alia, aimed at achieving energy sovereignty by utilizing 
domestically available energy resources (gas, coal and hydropower), as well as fulfilling energy demand 
by prioritizing the development of renewable energy (Section 2.2.2).154 The Nat ional General Energy 
Plan (Rencana Umum Energi Nasional, RUEN), consisting of a cross -sectorial strategy and an 
implementation plan to achieve the 2014 KEN objectives, was issued in March 2017. "  
 WT/TPR/M/401/Add.1  
 
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  EU Question N° 48:   
What is the situation regarding the pro duction and use of renewable energy, including 
biofuels and biogas? How are the investments to the shift of the production of conventional 
biofuels to the advanced biofuels from waste and residues (including those from agricultural 
waste) taking place and further helping to shift from coal dominated (58%) energy 
production? What is the situation regarding the production of bio -based materials and 
chemicals, and are there obligations related to the circular economy and waste hierarchy to 
support developments  towards the substitution of fossil -based products with bio -based 
ones?  
 
Answer:  
 
The National Energy Policy sets out the ambition to transform the energy mix by giving priority to the 
new and renewable energy resources. The policy targeted that the new an d renewable energy resources 
should contributed about 23% from total primary energy mix by 2025. But in 2019, the share of 
Renewable Energy has only reached 9.15% of the total energy mix, with biodiesel contributed more 
than 30% of it. To achieve the 23% t arget by 2025 based on General Plan for National Energy, Biodiesel 
will become one of the mainstays, by increasing the blending rate using FAME -based and hydrotreated 
vegetable oil. The production and use of renewable energy (including biofuels and biogas)  increase every 
year. In 2018, the realization of biodiesel production reached 6,2 million Kl and for domestic needs 
reached 6.4 million kL. In 2019, the realization of biodiesel production reached 8,4 million KL and for 
domestic needs reach 6,4 million KL . And for biogas, up to October 2020, there are 47.754 -unit of 
Domestic Biogas which produce 75.468,7 m3 gas/day or 27,89 million m3/year. In order to further 
increase the renewable energy contribution, the government encourages the involvement of the priv ate 
sector to invest in bioenergy projects (including biofuels and biogas), encourages the development of 
advanced biofuels to maintain the sustainability of raw materials and also develops waste to energy as 
as a national priority program.  
 
Paragraph 4.12 1, Page 179   
"During the review period, a major change in upstream contracting was made. Activities remain 
controlled through JCCs (predominantly PSCs, Service Contracts, or Joint Operation Agreements) 
between the contractor (i.e. business entity or perman ent establishment) and the executing agency (i.e. 
SKK Migas).172 In 2017, to revive deteriorating investment in the oil and gas industry, the MoEMR 
introduced a new form of PSC based on gross production split (Gross Split PSC), replacing the 
cost-recovery scheme in place since 2008.173 Under MoEMR Regulation No. 26/2017 (amended by 
MoEMR Regulations No. 47/2017, No. 24/2018, and No. 46/2018): for (conventional) PSCs, unrecovered 
investment costs can be carried forward to the extended (conventional) PSC; and  for the new Gross 
Split PSC, unrecovered investment costs should be considered as an additional split/take for the existing 
contractor… "  
 
EU Question N° 49:  
For several years the EU has been witnessing a movement whereby Pertamina has taken over 
the management of blocks from foreign operators, which we have seen resulted in a decrease 
in investments. Can the Indonesian authorities confirm whether their policy is to keep their 
country open to foreign investment in the oil and gas sector?   
 
Answer:  
 
The blocks that are taken by pertamina are blocks which contract terms are over. Pertamina does not 
take over any blocks under an active concession. Indonesia remains its disposal to the international 
business and investment practices by honoring all of its a greement with foreign parties.  
 
Paragraph 4.131, Page 182   
"As at 2013, Pertamina owned six oil refineries, which had a total combined capacity of around 1 million 
barrels (160,000 cubic metres) of oil per day; in addition, it was responsible for another f our smaller 
capacity refineries. The authorities indicated that Pertamina has no de jure monopoly rights regarding 
fuel imports or oil refining (see below). Pertamina plans to double its refining capacity to 2 million barrels 
per day by 2026; as at Februar y 2019, it was working on at least seven refinery projects. Pertamina WT/TPR/M/401/Add.1  
 
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  continues to operate the largest distribution network of petroleum products (gas stations, etc.) in the 
country. It has invested in two operating companies, which manage output from liqu efied natural gas 
(LNG) plants (PT Badak LNG, and PT Donggi Senoro LNG)… "  
 
EU Question N° 50:  
Is the government working on new regulations that would lead to a continued decline in fuel 
subsidies? Despite the reforms on fuel subsidies, the fuels of privat e companies are still at 
less competitive prices than those sold by Pertamina, which still benefit from subsidies.   
 
Answer:  
 
Subsidy is given into two fuel oil products i.e., diesel for public transportation, and kerosene for 
low-income households. Beside those two products, there is no subsidy such as Diesel for industry or 
mining, Perta -series, and Avtur. Government try to regularly adjusting market fuel price following 
macroeconomy indicators to keep its performance and competitiveness  on a good level. The goals are 
to make consumers get more affordable and competitive fuel price.  
 
Paragraph 4.146, Page 185   
"The 2016 -25 Electricity Supply Business Plan (RUPTL), a 10 -year electricity development plan for 
operating areas that is reviewed  annually, includes demand forecasts, future expansion plans, electricity 
production forecasts, and fuel requirements. It indicates the projects to be developed by the PLN, and 
those available to IPPs. Direct selection or direct appointments for IPPs to bu ild PPs are based on the 
RUPTL… "   
 
EU Question N° 51:  
The announced investment need (36.9 billion USD by the public electricity company PLN and 
58.8 billion USD by the independent electricity producers) by 2028 in order to comply with 
the RUPTL is much hi gher than the investments ' annual results for several years (around 
USD 2 billion per year since 2015). Investors and economists advance several explanations 
for the low attractiveness of the sector (details in 4.158 p.217 on the brakes on investment).   
How does the government plan to reform the sector to attract more private investment, 
especially in renewable energies? Is it the difficult financial situation of PLN, in particular 
following the losses linked to the Covid -19 crisis, that risks leading the g overnment to revise 
downwards the investment target of PLN (And if so how, in terms of amount? And investment 
target by energy source)?   
 
Answer:  
 
Government of Indonesia will revise the RUPTL in an effort to achieve the EBT mix by considering the 
impact of the COVID -19 pandemic on the current condition of PLN and updated of electricity supply -
demand in Indonesia.  
 
Paragraph 4.162, Page 190   
"During the review period, the regulatory framework in this area was updated with new or amended 
general or N RE-specific regulations (Section 4.2.2.3).222 Law No.30 of 2007 sets the priority of 
supplying and utilizing NRE, including biofuels. GR No. 79/2014 on the KEN requires that the 
development of renewable energy resources consider economic viability; however , the potential 
renewable energy resources are based on a technical assessment by the MoEMR only, and do not 
necessarily consider the financial/economic viability of individual projects… "   
 
EU Question N° 52:  
The local share requirements for solar modules  (60% in 2019) are a brake on the 
development of solar, with a further reduced national production capacity and a higher 
project cost (given that foreign solar panels are much cheaper). To support the development 
of solar energy, does the government intend  to promote investment in the domestic sector, 
or does it intend to implement another strategy?   
 WT/TPR/M/401/Add.1  
 
- 183 - 
 
  Answer:  
 
Indonesia has a great interest in promoting the utilization of green energy, including solar based energy, 
wind-based energy and geothermal energy. H owever, considering that the price of energy is not yet 
reaching the economics of scale for renewable energy, the application of renewable based energy for 
electricity is still limited. Thus, Indonesia has a target to distribute electricity to all of its r egions with 
the target of 35.000 Mega Watts. Considering the gap of production and consumption of electricity, 
Indonesia at present still focuses on the development of non -renewable source of power generation. 
However, Indonesia remains open for future inv estment of renewable source of energy if the production 
price reaches the economics of scale that in line with Indonesia 's "affordable energy price" for general 
consumption.  
 
Paragraph 4.166, Page 191   
"Indonesia considers biodiesel as an efficient way to develop more environmentally friendly solutions to 
fulfil current energy demand; increase energy security and reliability; reduce the consumption and 
import of fossil fuel; increase economic added value by downstream biofuel industry; and support the 
domestic agriculture -based economy. During the review period, the 2008 Biodiesel Mandatory Program, 
aiming for a mixture of diesel oil with fatty acid methyl ester (FAME) from palm oil, a chief deforestation 
driver (Section 4.1.7), intensified.  Since 2016, the B20 Mandatory Program has been in place; it requires 
the use of 20% FAME in biodiesel for the PSO transport sector or those activities carried out by 
state-owned companies to serve public needs. To address increasing economic pressures rel ated to the 
current account deficit and weakening rupiah, save on foreign exchange reserves, and increase 
consumption of domestic biodiesel, in September 2018, the B20 Mandatory Program was expanded, at 
short notice, from the PSO to the non -PSO transport s ector… "   
 
EU Question N° 53:  
The B50 programme, initially scheduled for the end of 2020, appears to be delayed. The B40 
programme is expected to be implemented in mid -2021, with pilot projects underway. This 
biodiesel programme remains dependent on the CP O fund (financed by an export tax, 
provided that the price of palm oil is high enough, in order to close the price gap between 
biodiesel and diesel). However, with the economic crisis, the price of palm oil has fallen and 
the fund may not be sufficiently s upplied, putting the programme at risk. What is the 
government's strategy for maintaining the viability of the biodiesel programme?  
 
Answer:  
 
The B50 and B40 program is a nationwide policy that support the green initiative of Indonesia. The 
purpose of this policy is to support the reduction of the carbon release due to consumption of fossil fuel. 
This policy does not apply to exported products since government will only pay the difference of price 
between production cost and its national based price of biodiesel. Also, the typical policy 
above -mentioned is meant for generally subsidize fuel (biodiesel) that are accessible for public 
consumption. It is not related to the export tax nor other charges.  
 
4.4 Services  
4.4.3 Financial Services    
Paragraph 4.196, Page 199  
Furthermore, in 2019, the BI issued the Indonesia 2025 Payment System Vision, which contains 
five elements: (i) supporting the integration of national digital economy and finance; (ii) supporting 
banking digitalization; (iii) guar anteeing the interlink between fintech and banking; (iv) ensuring the 
balance between innovation, consumer protection and healthy business competition; and (v) 
safeguarding national interests in cross -border digital economy and finance. It was followed up by the 
issuance of the Indonesia Payment Systems Blueprint (IPSB), which contains five initiatives to achieve 
the Vision, namely: (i) open banking; (ii) retail payment systems; (iii) financial market infrastructure; 
(iv) data; and (v) regulatory, licensing  and supervision elements. These initiatives are to be 
implemented simultaneously by five working groups under the BI.269 The IPSB 2025 set the course for 
the development of the digital economy and finance, seeking to ensure continuity in the functions 
performed by the BI and in support of economic and financial inclusion. As indicated by the authorities, 
one initiative that has already been implemented was the launch, in August 2019, of the Quick Response WT/TPR/M/401/Add.1  
 
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  Code standard (the QR Code Indonesian Standard (QRI S)) for payments through server -based e -money 
applications, electronic wallets and mobile.  
  
EU Question N° 54:  
Is the National Payment Gateway mentioned in par 32 the same as the one mentioned in par 
4.196? If it is not, can you describe the former? If it  is the same, can you identify any 
discriminatory elements applying to foreign business compared to domestic ones? Can you 
also elaborate on the substance and the requirements regarding the reference to 
"safeguarding national interests in cross border digi tal economy and finance "? With respect 
to heading (iv) of the initiatives to achieve the Vision in the context of the Indonesia Payment 
Systems Blueprint, what is exactly covered under the reference to "data"? Do you apply in 
particular, any discriminatory  measures vis -à-vis foreign business?   
 
Answer:  
 
First of all, we would like to confirm that there is no National Payment Gateway terminology used in 
para 4.196, page 199 of the Secretariat Report. The NPG is a system, which consists of the standard, 
switching, and services built through some arrangements to integrate different payment instruments 
and canals nationwide. The NPG is categorized as fast payment system, which is operated and managed 
by private sector. The scope of domestic paymen t transactions of NPG includes: i) Switching 
interconnection; ii) interconnection and interoperability of payment canals in the forms of ATM, 
electronic data capture (EDC), agent, payment gateway, and other payment canals; and iii) 
interoperability of paym ent by cards in the forms of ATM and/or debit cards, credit cards, electronic 
money, and other payment instruments. (see par. 4.202 for the explanation). Moreover, NPG 
acknowledge the presence and participation of global players by their representation in the making of 
the NPG standard and their participation in the NPG switching. To maintain the representation of global 
players in the NPG, we have mandated that Standard Agency shall be conducted by the Party that 
represent the Indonesian payment system ind ustry, in this case the Association of Indonesian Payment 
System (Asosiasi Sistem Pembayaran Indonesia – ASPI). ASPI members includes banks (including 
foreign owned banks) and non -bank institutions that organize or participate in the payment system 
directl y including switching agencies, principal, central depository, telecommunication companies, etc. 
On that note, global players who are currently providing payment system related services already 
represented in the preparation and management of the standards  adopted by Switching and Services 
Agency. Furthermore, NPG provides opportunity for global player 's participation, either directly or 
indirectly by build a new NPG switching to solely handle local swicthing/domestic transaction or 
cooperate with existing NPG Switching Agency. Under the IPSB 2025, Bank Indonesia will build BI -FAST 
as a fast payment infrastructure that serves all types of payment transactions, including card -based 
transactions. BI -FAST will side with the national clearing system (SKNBI) and GPN as the retail 
infrastructure on the back -end side. BI -FAST is expected to be able to encourage industry 
competitiveness, provide more extensive payment options for the public, improve transaction efficiency, 
and strengthen the reliability of retail pay ment systems in Indonesia.  
 
The principle of economic openness needs to be balanced with a spirit that continues to prioritize national 
interests, especially in the digital era, which is completely borderless. As a small open economy, 
Indonesia adheres to the principle of openness for the role of foreign business entities, as long as these 
foreign entities are able to meet the applicable regulations. The fifth Indonesia Payment System 2025 
vision hopes that the transparency principals in the area of payment  system could be implemented on 
the basis of reciprocity, which guarantees equal rights between countries in the context of the bilateral 
relationship. This is particularly considering Indonesia 's strategic position as a country with a large 
consumer base.  With reciprocity, Indonesia is not only destined as a market, but also has a similar 
opportunity to expand overseas. In the payment system area, this principle is realized through 
opportunities for cooperation between foreign business entities and domesti c partners. This procedure 
is needed to ensure the effectiveness of monitoring and supervision conducted by Bank Indonesia. This 
step is also needed to ensure that all transactions that occur in the territory of the Republic of Indonesia 
are processed in t he country using Rupiah in accordance with the mandate of the Legislation. This vision 
also opens wide opportunities for infrastructure interoperability and payment system instruments for 
cross-border transactions, both in terms of back -end and front -end. The direction of developing ISO 
20022 standards, both at BI -RTGS, BI -FAST, and BI -SSSS, as well as the development of multicurrency WT/TPR/M/401/Add.1  
 
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  features at BI -RTGS, is an effort to streamline cross -border transactions as suggested by CPMI (2018). 
In addition, various standardization efforts, such as QRIS and API, will certainly adopt best practices 
technical standards. International transaction cooperation and cross -border data exchange, upon 
inbound and outbound, will be based on the principle of reciprocity. This str ategy was adopted to ensure 
that the flow of digitalization continues to be able to guarantee the long -term sustainability of domestic 
economic development.  
 
The fourth initiative of Indonesia Payment System Blueprint 2025 is aimed at provisioning public 
infrastructure for payment data that assures open access and protection of consumers ' personal data. 
The infrastructure will be integrated with all payment transactions and organize payment data flow. The 
collected granular data from payment activities will  be transformed into value -added content that 
enables industry, especially start -ups, to grow, advance innovations, and deepens economic and 
financial inclusion in a healthy competition environment. https://www.bi.go.id/en/publikasi/sistem -
pembayaran/riset/Pages/Blueprint -Sistem -Pembayaran -Indonesia -2025.aspx  
 
4.198. Investment restrictions in the financial services sector remain u nchanged (Table 4.6). As 
indicated by the authorities, under current regulations, national treatment is applied to investors wishing 
to obtain a licence to establish a commercial conventional bank or a commercial sharia bank. In general, 
the same set of pr udential regulations (such as minimum capital requirements, and activities permitted) 
apply to both foreign -owned and domestically owned banks. However, domestic banks falling in the 
BUKU 1 and BUKU 2 categories (banks with Tier 1 capital of up to IDR 5 tr illion) are exempted from 
liquidity buffer requirements (liquidity coverage ratio and net stable funding ratio), while these buffers 
apply to all foreign -owned banks regardless of their Tier 1 capital.   
 
EU Question N° 55:  
According to paragraph 4.198 of t he Secretariat Report, investment restrictions in the 
financial services sector remain unchanged, which results in different ownership regimes for 
foreign investors. Consequently, foreign investors generally cannot have full ownership or 
solely a minority share in several instances.  The OJK's "master policies" objectives for the 
period 2017 -22, as stated in paragraph 4.194 of the Secretariat Report, include reforming 
the non -bank financial industry into a stronger and more competitive one and increasing 
efficiency in the financial services industry so as to transform the industry into a competitive 
one.  
 
In this context, would the Government consider abolishing foreign equity caps in the entire 
financial sector in order to possibly entice foreign investors  to commit themselves to this 
sector, and to thus enable them to provide foreign capital and know -how so as to render the 
financial sector more competitive?   
 
Answer:  
 
BI's policy on payment systems related to this arrangement is part of efforts to increase the resilience 
of national industry competitiveness and in general to encourage the role of domestic players in the 
payment system. The PSP 's ownership structure is arranged to maintain industrial growth and healthy 
business competition as well as  provide optimal benefits for the Indonesian economy by prioritizing to 
strengthen consumer protection and oriented towards risk management.  
  
OJK believes that current regulations already support the inflow of foreign capital and know -how to 
make our ban king and non -banking financial services sector more competitive. Given the situation, 
there are no plans at this moment to abolish foreign equity caps in both banking and non -banking 
financial services sector.  
 
4.4.5 Transport  
Paragraph 4.230, Page 212   
4.230. The Ministry of Transport (MoT) has overall responsibility for the transportation sector in 
Indonesia. As at the time of the previous Review, the MoT's main strategy being implemented is the 
Sistranas Plan (as set out in MoT Regulation No. KM49/2005 o n the National Transport System). The 
MoT is also implementing its five -year strategic plan for the period 2015 -19, which covers air, sea, land WT/TPR/M/401/Add.1  
 
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  and railway transport; this is in the process of being updated. Improving maritime and marine 
management is one of seven development agendas contained in the National Medium -term Development 
Plan 2020 -24, and improvements to transport infrastructure are identified as national priority projects 
(Section 2.2.2).    
 
EU Question N° 56:   
We would like to ask Indonesia fo r an update on transport related initiatives in the National 
Medium Term Development Plan 2020 -24.  
 
Answer:  
 
Goverment priotitizes economic growth from tourism by building infrastucture in 2021. Ministry of 
Transport is priotizing developing airport in 3T area (frontier, outermost, and least developed region) to 
enhance connectivity, including public transportation in tourism area and region that affected by natural 
disaster.  
 
Paragraph 4.233, Page 213    
"Investment restrictions in the transpo rtation sector are set out in Law No. 44 of 2016 concerning List 
of Business Fields Closed to and Business Fields Open with Conditions to Investment (Section 2.4.2). 
Under this Law, the following activities are closed to investment: organization and operat ion of terminals 
for passenger land transport; organization and operation of weigh stations; telecommunication/aids to 
shipping navigation and vessel traffic information; provision of air navigation services; and 
administration and testing of types of moto r vehicles. Investment in various transport -related activities 
are subject to conditions, largely consisting of FDI restrictions (Table 4.17). "  
 
EU Question N° 57:  
Will the Omnibus Law on Job Creation lead to an increased possibility for foreign investmen t 
and participation in the transport sector (Table 4.17), including cabotage?  
 
Answer:  
 
The implementation regulation of Job Creation law is still under discussion, including the current 
regulation on foreign participation.  
 
Job creation Law purposes to fa sten economic recovery, simplify and harmonized regulation to provide 
legal certainty. This regime will attract investment and give opportunity to foreign company in 
transportation sector. Related to domestic marine transport, cabotage is remain in force. Nevertheless, 
Job Creation Law allows foreign vessel to operate for non -cabotage and when domestic vessel is not yet 
available.  
 
4.4.7 Distribution Services with a Specific Focus on E -commerce  
Paragraph 4.273, Page 222   
Under GR in Lieu of Law No. 1 of 2020, the Government may charge VAT on taxable intangible goods 
and/or services sold through e -commerce platforms, and charge income tax on e -commerce done by 
foreign individuals or digital companies that have a significant economic presence.  
 
EU Question N° 58:  
Do the income tax rules also apply to domestic individuals and digital companies? If not, what 
are the income tax rules applicable to domestic individuals and digital companies?  
 
Answer:  
 
The Income Tax Rules also apply to domestic individual and di gital companies.  
 WT/TPR/M/401/Add.1  
 
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  WT/TPRG/401 – Report by Indonesia  
Paragraph 2.18, Page 9    
 
"The Negative Investment List (NIL) was enacted through the Presidential Regulation No. 44 of 2016 on 
Lists of Business Fields that are Closed to and Business Fields that are Ope n with Conditions to 
Investment. Overall, the 2016 NIL provides further opportunities for foreign investment in comparison 
with the previous NIL (Presidential Regulation No. 39 of 2014). Amendments introduced by the 2016 
NIL have further liberalized invest ment rules across a range of sectors. "  
 
EU Question N° 59:  
Could Indonesia please clarify the government's position on the negative list of investments, 
in particular regarding the changes announced by the Omnibus Law? What types of market 
access conditions will be included in the Omnibus Law implementing regulation? Could 
Indonesia please give an indication of a) the criteria of the sectors that will be included in 
the priority list and b) what investment requirements will be imposed by the centra l 
government on the sectors set out in the priority list. How will the list deal with the foreign 
ownership restrictions (including local partnership requirements) currently imposed on many 
sectors, such as in the pharmaceutical, hospital, and transportati on sectors?  
 
Answer:  
 
Article 77 of Law 11 of 2020 or Omnibus Law on Job Creation which amended Article 12 Law No. 25 of 
2007 on Investment stated that: "All of business acitivities are opened to investment, except for 
business activties which are declared  closed for investment or can only be carried out by Central 
Government. Further provisions on the capital requirements shall be stipulated in Presidential 
Regulation". This Presidential Regulation will revise the current Presidential Regulation No. 66 of 2014 
on Negative Investment List into "Investment Priority List" which will list out: 1) priority business 
activities which are granted with fiscal incentives, 2) business activities which are granted with non fiscal 
incentives, 3) business activies which are allocated for MSME and partnership (excluding share 
ownership) between big enterprises & MSME, 4) business activities which are opened with conditions. 
The Presidential Regulation on Priority Investment List is currently in the drafting process to get inputs 
from related stakeholders (Ministries, Agencies and public) under the coordination of Coordinating 
Ministry of Economic Affairs. It is expected to be issued by early next year.  
 
2.2 Improvement on Investment Climate  
2.3 Financial Sectors  
Paragraph 2 .27, Page 10   
In early 2020, the impact of COVID -19 outbreak was also seen in credit quality, where banking NPLs in 
January 2020 slightly increased with NPL ratio of 2.77% gross and 2.56% of multi -finance companies 
NPFs. Amid these conditions, the OJK has launched new regulation as a stimulus to manage banking 
and non -banking industries. Liquidity also remained ample with sufficient ratio of liquid assets to 
non-core deposits (LA/NCD) has mostly been 90% which is well above the 50% threshold.   
 
EU Question N° 60:  
Could you elaborate on the provisions of the regulations put in place by the Indonesian 
Financial Services Authority, OJK, to improve the management of the banking and 
non-banking sectors in the context of the response to the health crisis?  
 
Answer:  
 
In response to COVID -19, OJK provided stimulus through the issuance of new regulations for banking, 
capital market, non -banking financial industry (NBFI). OJK issued regulations as the response of 
Government Regulation in Lieu of Law (Peraturan Pemerintah Pengganti Undang -Undang/Perppu) 
No. 1/2020 regarding State Financial Regulation and Financial System Stability to handle the outbreak 
of COVID -19 that endangers the national economy, as well as stability of the financial system (passe d 
into Law No. 2/2020, on May 18, 2020).  
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  Banking  
1. OJK Regulation No. 11/POJK.03/2020 on National Economic Stimulus as a Countercyclical Policy of 
The Impacts of COVID -19 Outbreak. OJK has also decided to extend the regulatory relief measure 
stipulated in OJK letter No. 12 of 2020 until the end of March 2022.  
2. OJK Regulation No. 18/POJK.03/2020 on Written Orders for Handling Bank Problems.  
3. OJK Regulation No. 34/POJK.03/2020 on Policies for Rural Banks and Sharia Rural Banks as the 
Impact of COVID -19. 
 
Capit al Market  
1. OJK Circular Letter No. 3/SEOJK.04/2020 on Other Condition as Significantly Fluctuating Market 
Condition on Stock Buyback by Issuers or Public Companies.  
2. OJK Regulation No. 15/POJK.04/2020 on Schemes and Implementation of General Shareholders 
Meeting. 
3. OJK Regulation No. 16/POJK.04/2020 on The Implementation Electronic General Shareholders 
Meeting.  
4. OJK Regulation No. 17/POJK.04/2020 on Material Transaction and Changes in Business Activities.  
5. OJK Regulation No. 37/POJK.04/2020 on Disclosure Principa l Compliance Exemption Procedures for 
Issuers or Public Companies as Financial Services Institutions in the Prevention and Handling of 
Crisis in the Financial System.  
 
NBFI (Non -Bank Financial Institution)  
1. OJK Regulation No. 14/POJK.05/2020 on Countercycli cal Policy as an Impact of COVID -19 for NBFI.  
2. OJK Regulation No. 40/POJK.05/2020 on Written Orders for Handling NBFI Problems.  
 
OJK also issued a Regulation that applies to all financial services sector, Regulation 
No. 36/POJK.02/2020, the third amendment of OJK Regulation No. 4/POJK.04/2014 on for Billing of 
Administrative Sanction in the Form of Penalties Procedures in the Financial Services Sector.  
 
2.2 Improvement in the investment climate  
 
EU Question N° 61:  
Indonesia 's intention to open 14 business fields to foreign investment, including alcoholic 
beverage production, is welcome. When is this expected to be in place, and which, if any, 
conditions will be imposed on investments in the alcoholic beverage industry while 
establishing Indonesia a s an attractive investment destination?   
We understand that an alcohol prohibition bill is under discussion in the Indonesian House of 
Representatives.   Can the Government of Indonesia please advise on the content of this bill, 
e.g. is it the intention to prohibit trade and consumption altogether, or to only better regulate 
the market?   
 
Answer:  
 
a. Article 77 of Law 11 of 2020 or Omnibus Law on Job Creation which amended Article 12 Law No. 25 
of 2007 on Investment stated that: "All of business acitivities are opened to investment, except for 
business activties which are declared closed for investment or can only be carried out by Central 
Government. Further provisions on the capital requirements shall be stipulated in Presidential 
Regulation". F urthermore, the Law mandated that investment activities should be based on national 
interest, which includes among others, protection of natural resources, protection and development 
of Cooperatives and MSME, supervision of production and distribution, cap acity building of 
technology, domestic capital participations, as well as cooperation with business entities appointed 
by the Government. The said national interest may includes protection of business activities which 
are harmfull to health (such as drugs,  liquor containing alcohol), empowerment of farmers, 
fishermen, fish & salt farmers, MSME with certain conditions and requirements determined by the 
Government, by considering aspect of investment ecosystem improvement.  
b. Current regulation regarding import of alcoholic beverages is regulated under MoT Regulation No. 
24 year 2014 amended by MoT Regulation No. 25 year 2019. Basically, there is no prohibition on 
import of alcoholic beverages, but it is regulated by PI (Persetujuan Impor/ Import Approval) and 
IT (Importir Terdaftar/ Registered Importer).   WT/TPR/M/401/Add.1  
 
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  3.3 Multilateral   
Paragraph 3.15, Page 12   
Within the broader multilateral framework, and in line with the WTO Trade Facilitation Agreement, 
Indonesia has actively participated in the negotiation on the Framewo rk Agreement on Facilitation of 
Cross -border Paperless Trade through the United Nations Economic and Social Commission for Asia and 
the Pacific (UNESCAP). Indonesia is also benefitting from various initiatives of the United Nations 
Conference on Trade and Development (UNCTAD) to complement the process in other multilateral 
forums.   
 
EU Question N° 62:  
What is the state of play of Indonesia 's paperless trading efforts regarding procedures at the 
border, and has the COVID 19 pandemic led to adjustments to cus tom procedures? If so, 
could Indonesia give a brief description of those changes – and indicate if any of these may 
become permanent?  
 
Answer:  
 
DGCE has implemented online systems to expedite the process of customs and excise services, namely 
CEISA system (Customs and Excise Information Systems and Automation) as the integral part of the 
National Single Window System (LNSW). DGCE also took part in the development of the National 
Logistics Ecosystem (NLE) which has been inaugurated in November 2020 and is st ipulated in MoF 
regulation number PMK 97/PMK.04/2020 as an initiative to accelerate logistics in order to collaborate 
processes from means of transport, facilitate the movement of domestic goods and expedite end -to-end 
logistics, promote cooperation throug h data exchange, and provide information technology systems by 
single submission process.  
 
Regarding the paperless trading efforts at the border while also providing countermeasures for 
COVID -19 pandemic, DGCE has implemented several customs procedures in response to overcome 
COVID -19 pandemic, as follows:  
a. Accelerating the clearance process of import goods which will be used for COVID -19 
countermeasures as stipulated in Minister of Finance Regulation number 34/PMK.04/2020, the 
Government provides fiscal and /or non -fiscal facilities, which include exemption on import duties 
and excise, non -imposition of VAT and/or Sales Tax on Luxury Goods, exemption of import income 
tax, and exception on import prohibition or restriction requirements. There is also an exempt ion of 
excise for Ethyl Alcohol used for social purposes and supporting materials to produce non -excisable 
final product. The importer applies for the exemption by using online application;  
b. Simplifying FTA application which now Certificate of Origin (CoO) can be submitted online in an 
effort to support the response to COVID -19 as stated in Minister of Finance Regulation number 
45/PMK.04/2020;  
c. Strengthening cooperation with other government agencies through the optimization of the National 
Single Window Agen cy (LNSW) platform and the establishment of National Logistics Ecosystem 
(NLE) in order to enable data sharing, simplification of the business process, and elimination of 
repetition and duplication;  
d. Expediting the importation of Covid -19 vaccine through the issuance of the MoF regulation number 
188/PMK.04/2020. The eligible importers may apply the customs duty exemption through INSW 
online system and the vaccines may be processed under Rush Handling clearance procedure.  
 
DGCE will conduct the eval uation thoroughly of the implementation of customs procedures during the 
Covid -19 pandemic and will strive to commit towards the efficient and simple customs procedures whilst 
maintaining the customs control effectively.  
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  SWITZERLAND  
Report by the Secretariat WT/TPR/S/401:  
 
1.2 Recent Economic Developments   
1.2.1 Growth, income, and employment  
 
Para.  1.5: Many workers remain informal, especially in agriculture. Does the Indonesian government 
plan to take measures to address the informality of worker s, and if so, what measures?  
 
Answer:  
 
Currently Indonesia does not have any plan to take measures to address the informality of workers.  
 
1.2.3 Main macroeconomic policy developments   
1.2.3.1 Monetary and exchange rate policy  
 
Para. 1.7: The Central Bank conducts monetary policy with the objective of achieving price stability. It 
has reduced its target range in recent years from 4.5% ± 1% in 2013 -2014 to 3%± 1% for 2020 -2021. 
Does the Central Bank have a specific medium -term price increas e target that it would like to achieve 
in the next few years and which would explain this gradual decrease? If so, what is it?  
 
Answer:  
 
Under the Bank Indonesia Law, the inflation target is established by the Government. With regards to 
the specific mediu m-term target after 2021, the Government, in coordination with BI, are currently in 
discussion and will announce it in January 2021.  
 
1.2.4.2 Privatization  
Para. 1.14:  
 
During the period under review, state interventionism remained significant. Does Indonesia plan to 
reduce state intervention in the economy? In what areas?  
 
Answer:  
 
Indonesia is a supporter of economic openness, and some efforts in the economy are needed to address 
development gap caused by geographical and demographic conditions.  
 
1.3 Developments in Trade and Investment   
1.3.1 Trends and patterns in merchandise and services trade  
 
Para. 1.23:  Most industriali zed countries, including Switzerland, experienced supply difficulties during 
the Covid -19 pandemic because they are highly inte grated into global value chains. According to 
para. 1.23, Indonesia is less integrated into global value chains. What was the economic impact of the 
COVID -19 pandemic on the Indonesian economy given this lower integration?  
 
Answer:  
 
In the early of the Covid -19 pandemic, Indonesia has projected that export will have negative growth 
as 13.5% YoY since it was initially predicted that Indonesia 's economy will be contracted of growth 
between 2.4% to -0.4%. However, even though at the beginning of the pandemi c Indonesia experienced 
obstacles in getting supplies of raw materials from imports, Indonesia's export performance during 
January to September 2020 grew -5.8% or 7.7% higher than the initial projection. This means that the 
low integration of Indonesia's G VC does not give a serious impact on Indonesia's trade performance 
compare to other countries that have high GVC integration. In addition, most of Indonesia 's 
manufacturers can still rely on the supply of raw materials from the domestic supply.  
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  3.1 Measur es Directly Affecting Imports  
3.1.1.2 Customs valuation  
para. 3.30 – page 72  
 
According to paragraph 3.30 Indonesia used the transaction value as the basis for customs valuation in 
85% (2019) and in 75% (2020) of all cases.  
• Could Indonesia explain and just ify such a decrease in the use of the transaction value?  
 
Answer:  
 
Regarding the data on the percentage of the transaction value as the basis for customs valuation in 
2020, we believe that it does not reflect the whole year because the data shown is only from January 
to June 2020 period.  
 
However, the decrease in the use  of the transaction value has occurred because there were some 
importations that could not use the transaction value method due to failure to fulfill the requirement 
such as the goods were not commercial goods or there was a personal connection between buy er and 
seller which affected the price.  
 
In addition, the importers still have the right to apply for objection and appeal for the decision made by 
customs.  
 
3.1.2 Rules of origin  
Para 3.33:   
 
According to para 3.33, Indonesia does not apply non -preferenti al rules of origin. However, the 
paragraph is not explicit on whether Indonesia requires any documentary proof of origin for 
non-preferential purposes. Does Indonesia require any certification of origin and other mandatory 
documentary proofs of origin for non-preferential purposes?  
 
Answer:  
 
On Imported products, Indonesia does not require any certification of origin and other mandatory 
documentary proofs of origin for non -preferential purpose. But Indonesia faciltate the business by 
issuance on proofs of o rigin for non -preferential purpose for export products, if certain countries require 
it mandatory.  
 
3.1.3 Tariffs  
3.1.3.1 General features  
para. 3.34 – page 74  
 
According to paragraph 3.34, the latest notification Indonesia made to the WTO regarding its MFN 
applied tariffs relates to the year 2018.  
• As the decision on modalities and operation of the Integrated database adopted on 28 May 2019 
requires WTO Members to notify no later than 30 March their applied MFN tariffs of the current 
year, w hen does Indonesia intend to comply with this obligation?  
 
Answer:  
 
Related to this matter, the Government of Indonesia is still work in progress to submit the 2019 MFN 
tariff to the WTO dan there is a lateness due to the pandemic. Indonesia intends to comply with this 
obligation as soon as possible.  
 
3.1.3.4 MFN tariff bindings  
para. 3.42 and table A3.3 – page 78  
 
Paragraph 3.42 states that "the applied MFN rates on 99 HS17 eight -digit tariff lines (e.g. chemical 
elements, worn clothing, machines for ma nufacture/parts/accessories for the manufacture of WT/TPR/M/401/Add.1  
 
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  semiconductors, and several types of  measuring instruments and apparatus) appear to exceed their 
corresponding bound rate by 5 percentage points (Table A3.3) ". 
• As the bound rates in Indonesia 's schedule X XI represent the maximum it is entitled to levy at 
the border and no Article XXVIII GATT 1994 procedure has been initiated, Switzerland asks 
Indonesia to comply with its WTO commitments. When will Indonesia bring its MFN applied 
duties for these 99 HS2017 eight digit tariff lines in compliance with its WTO obligations?  
 
Answer:  
 
Changes in Applied MFN Rates are due to HS transposition in the form of merging, splitting and/or 
creating new tariff posts. Indonesia is preparing to finalize the HS transposition of 9 (nine) digit tariff 
lines of HS2002 to HS2004 and HS2007. Indonesia is committed to fulfil the WTO obligations and 
commitments.  
 
3.1.4 Other charges affecting imports  
para. 3.54 – page 83  
 
According to paragraph 3.54, the withholding tax  policy allows the Government to collect more tax 
revenue in advance but can result in tax overpayment by importers.  
• Could Indonesia explain which mechanisms are in place to ensure that importers do not pay 
more taxes than what they owe?  
 
Answer:  
 
There is  no double tax occured on the payment of income tax from import activities. Any income taxes 
paid by the importers will be treated as tax credit. If the tax credit paid amount larger than the tax 
liability of the importers, a refund mechanism is provided a ccording to the relevant tax regulations.  
 
3.3.2 Standards and other technical requirements  
3.3.2.5 Labelling   
and 
3.3.3 Sanitary and phytosanitary measures  
3.3.3.2.6 Halal requirements  
 
Referring to section 3.3.2.5 (p. 116) and section 3.3.3.2.6 (p. 122), Switzerland would like to raise its 
concerns over the potential impact of Indonesia 's Halal Product Assurance Law No. 33 of 2014 and its 
implementing regulation, GR No. 31 of 2019, on bilateral trade with Indonesia in a range of products, 
including f ood and pharmaceuticals. While Switzerland shares Indonesia 's objective to assure the safety 
and integrity of halal -certified products placed on the Indonesia market, we are concerned over the 
measure 's broad scope, covering food and beverages, pharmaceuti cals and cosmetics, and the 
challenges it creates for businesses in adapting to the new regulatory regime, also due to insufficient 
information and lack of transparency over its implementation. Furthermore, the requested "non-halal" 
information for non -halal products and the need for a cooperation agreement between foreign halal 
certification bodies and the Indonesian Halal Products Assurance Agency (BPJPH) as a pre -condition for 
recognition of halal certificates, constitute an excessive burden for economic  operators.  
 
1. Will Indonesia notify all implementing regulations to the WTO under the TBT Agreement to allow 
Members to provide their comments and questions, and to ensure sufficient transition times for 
businesses to adapt to the new regulation?   
 
Answer:  
 
We committed to notify the regulations in accordance with the relevant WTO Agreement.  
 
2. Will Indonesia reconsider its approach and assure that the effects of halal certification and labelling 
are limited to the legitimate objective of ensuring r eliable information?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
Yes, it will be our consideration in drafting implementing regulations for the Job Creation Law.  
 
3.3.5.2 SOEs and privatization  
 
Para 3.176:  Several concerns seem to have been raised regarding the functioning of state -owned 
enterprises in Indonesia (subsidies received, negative impact on competition, crowding out effect). Have 
concrete measures been envisaged to address these problems?  
 
Answer:  
 
Subsidies are given to strategic sectors that the government needs to support, to improve the economy 
and encourage people's purchasing power. The government will be involved in this strategic sector 
because the private sector would not give the same quality at a given price. On the other hand, to 
ensure good competition aro und the business sector, the Government has an Indonesian Competition 
Commission (ICC) that will supervise the implementation of competition policy in Indonesia.  
 
3.3.6: Government procurement,   
3.3.6.2 Institutional and regulatory framework,   
paragraph 3. 185 
 
According to paragraph 3.185 of the Report of the Secretariat, the overall objectives of the new 
regulatory framework in Indonesia are to achieve value for money and contribute to the increased use 
of domestic products, the increasing role of MSMEs an d sustainable development.  In order to promote 
MSMEs development and increase their role in public procurement, would Indonesia consider that 
adhering to international standards and improving access to government procurement markets within 
the WTO Governm ent Procurement Agreement (GPA) could also be an important incentive for MSMEs 
to increase their exports opportunities and reinforce their competitiveness on domestic and world 
markets, contributing to achieve sustainable growth and sustainable development ?  
 
Answer:  
 
Yes. Indonesia understands adhering to international standards and improving access to government 
procurement markets within the WTO Government Procurement Agreement (GPA) could also be an 
essential incentive for MSMEs to increase their export s opportunities and reinforce their competitiveness 
on domestic and world markets. But the current priorities for Indonesia is to develop its MSMEs' capacity 
and capability to participate in the National Government Procurement Market.  
 
Furthermore, many o f Indonesia's SMEs are categorised as 'non -formal', so the immediate action needed 
is to make them 'formal'. After they are 'formal', the next action is introducing standardisation to make 
them competitive in the global market.  
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  NORWAY  
Question number 1:  
 
Maritime transport  
Reference is made to WT/TPR/S/401, chapter 4.4.5.1 Maritime transport, para 4.238.  
Could Indonesia provide information if there is any possibility for waivers in domestic maritime transport 
(cabotage) for foreign -flagged cargo vessels, and in that case, the number of waivers issued in recent 
years for domestic maritime transport (cabotag e) for foreign -flagged vessels.  
 
Answer:  
 
Policy concerning the waivers in domestic maritime transport (cabotage) for foreign -flagged cargo 
vessels is contained in the Government Regulation No. 20/2010.  
 
Question number 2:  
 
Para 4.238 contains information on a new requirement since May 2020 for coal exporters to use 
Indonesian -owned sea transportation companies for transportation of coal. We would appreciate more 
detailed information on this requirement, and in particular if and how this requirement limits the 
possibility of market access for foreign -flagged vessels and foreign shipping companies.  
 
Answer:  
 
Indonesia views that the requirements on the using of Indonesian -owned sea transportation companies 
for transportation of coal does not significantly limit the market access for foreign -flagged vessels and 
foreign shipping companies since it is only applied for small vessels industries.  
 
Question number 3:  
 
Furthermore, we have seen news and reports on the introduction of new restrictions on the use of 
foreign flagged vessels for maritime transportation to and from Indonesia for certain cargoes, such as 
crude palm oil and rice. We would therefore also appreciate information on any other restrictions or 
requirements as to use of foreign -flagged vessels, and/or for foreign shipping companies for maritime 
transportation of import and export cargoes to and from Indonesian ports.  
 
Answer:  
 
On this matter, Norway can use Government Regulation No. 20/2010 and Regul ation of The Minister of 
Transportation No. 92/2018 as a reference in responding to the issue of other restrictions or 
requirements as to the use of foreign -flagged vessels, and/or for foreign shipping companies for 
maritime transportation of import and ex port cargoes to and from Indonesian ports.  
 
For any restricted items, Norway could spot the list on the INSW website at http://eservice.insw.go.id/.  
 
Question number 4:  
 
We also note and appreciate the scheduled Indonesian commitments for international ma ritime transport 
as contained in GATS/SC/43 page 22, and would like to question if and how the above mentioned 
requirement on maritime transportation of coal, and any restrictions on transportation of products like 
palm oil and rice, conforms with the GATS  commitments, including article XVI on Market Access of the 
GATS agreement and para 7 of the Decision of the Trade in Services Council contained in document 
S/L/24 3 July 1996.  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
It is not justified to claim if Indonesia restricted maritime transportation to a product without a 
fundamental reason. Indonesia's maritime transportation policy is already in accordance with the 
prevailing WTO regulations.  
 
Indonesia restricted a product based on articles XI: 2, XII, XX, on the GATT agreement and Art. XIV on 
the GATS agreement.  
 
Question number 5:  
 
Insurance  
The same type of regulation affects the insurance sector. How does the "National Insurance 
Requirement " comply with Indonesia 's WTO obligations?  
 
Answer:  
 
In accordance with Indonesia's commitment in the Specific Commitment Schedule as stated in CPC 8129 
(non-life insurance services), Indonesia has the right to determine any provisions related to the 
provision of foreign insurance services.  
 
The Policy on the U se of National Insurance for the export and import of certain goods is to provide 
certainty in doing business and to provide insurance business opportunities to national insurance 
companies for the export and import of certain goods.  
 
The Indonesian gover nment opens market access for foreign insurance companies by not limiting foreign 
ownership.  
 
Question number 6:  
 
Seafood  
Reports from Norwegian exporters of seafood to Indonesia state that Indonesian import licenses and 
import quotas often are hard to obtain. We have been informed that the system is not transparent and 
foreseeable and we would like to obtain as much informat ion as possible on these issues.  
Norwegian exporters of seafood explain that it is difficult to predict the circumstances under which 
applications for non -automatic licenses are granted or rejected. Regarding import quotas, they have 
similar concerns.  
 
Could Indonesia please provide information of their practice concerning non -automatic import licenses 
and what they do to ensure that these are not granted in a discriminatory manner, and could Indonesia 
please give examples of cases where its non -automatic  import licenses are granted or rejected?  
 
Answer:  
 
MMAF is authorized to recommend entry of fisheries product except for raw materials and auxiliary raw 
materials. the application can be submitted through www.rphp -online.kkp.go.id. Administrative check 
and technical review without discrimination, solely based on requirements completion and validity.  
 
Question number 7:  
 
Could Indonesia please provide information of how their import quotas are allocated between different 
importers in Indonesia or foreign exporters of seafood, and explain how it is ensured that the quotas 
are allocated in a non -discriminatory manner? Furthe r we would be interested in knowing how new 
import quotas are granted after they have been exhausted. The background on which the quotas are 
calculated is also of interest to us.  
 
In short, all relevant information regarding the basis for, including rules  and regulations, and system 
for the Indonesian import licenses and quotas for import of seafood is of interest to Norway.  WT/TPR/M/401/Add.1  
 
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  Answer:  
 
Entry recommendation of fisheries product except for raw materials and auxiliary raw materials is issued 
by MMAF by consider ing: (a) demand and availability of fish supply or production; (b) catch season 
and/or harvest season; (c) supply from other centre of production in Indonesia; (d) fish consumption 
rate; and (e) distribution destination.  
 
Those importations should also ful fil fish health, quality, and safety qualification and not sourced from 
illegal, unreported and unregulated fishing activities.  
 
 WT/TPR/M/401/Add.1  
 
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  JAPAN  
Report by the Government (WT/TPR/G/401)  
 
3 International Trade Engagement  
3.2 Regional  
(Question 1: Paragraph 3.7, page 11)  
 
Japan would like to request Indonesia to provide details on the prospects and concerns, if any, for early 
ratification of the First Protocol to Amend the AJCEP and the RCEP Agreement. In addition, Japan would 
like to request Indone sia to provide information on whether any ammendment or establishment of 
domestic legislation is required for the implementation of those agreements.  
 
Answer:  
 
With regards to the ratification of the 1st Protocol to Amend AJCEP, Indonesia is still in the p rocess of 
ratifying the Protocol through the Parliament. However, due to the Covid -19 situation and the 
subsequent measures taken to restrict movement and gathering of the people, the ratification process 
has been delayed. Indonesia will do the utmost effo rt to finalize the ratification of the Protocol in timely 
manner.  
 
With regards to the ratification of RCEP, Indonesia has started preparing the necessary documents to 
ratify the agreement. Based on the relevant Laws, the Government of Indonesia is required to consult 
with our parliament and together decide on the legal i nstrument to implement the RCEP Agreement.  
 
Due to the pandemic, the process may take longer than expected. Based on our past experience and 
considering the wide coverage of RCEP as well as the pandemic, the process may take one to two years.  
 
Report by the Secretariat (WT/TPR/S/401)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
(Question 2: Paragraph 3.2, page 62)  
 
Japan would like to request Indonesia to provide details on how PE is regulated in the national legistation. 
Non-resident companies in Indonesia  are required by their customers to hold inventory in a third -party 
warehousing company in Indonesia, but there is a concern that the third -party warehousing company 
will be regarded as PE.  
 
Answer:  
 
Third Party Warehousing Company in Indonesia must be in the form of Business Entity. The regulation 
refers to MoF Regulation No. 35/PMK.03/2019 regarding the Determination of Permanent Establishment 
(PE) (Penentuan Bentuk Usaha Tetap (BUT)).  
 
3.1 Measures Directly Affecting Imports  
3.1.1 Customs procedures, val uation, and requirements  
3.1.1.1 Customs procedures  
(Question 3: Paragraph 3.18, page 65)  
 
Japan would like to know how many did Indonesian Customs receive through ASW in each year? Also 
how many CO did Inodonesian Issuing Authority issue CO in each year t horoug ASW?  
 
Answer:  
 
Between January to July 2020, Indonesian Customs has recieved 87 ,090 (Outgoing) and 
71,920 (Incoming) documents e -CoO through ASW in ATIGA scheme.  
 WT/TPR/M/401/Add.1  
 
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  (Question 4: Paragraph 3.18, page 65)  
 
We understand that Indonesian Customs accepts CO as PDF format instead of as Paper for the 
COVID -19. How long will the Customs accept PDF version of CO?  
 
Answer:  
 
According to the MoF Regulation No. 45/PMK.04/2020 the submission of the CoO should be in the form 
of: 
1. The submission of CoO through the email or the other electronic media must be completed max 
30 days calendar since the date of customs import document.  
2. The submission of CoO through the email or the other electronic media i.e color scanning of CoO if 
the CoO is in the form of h ardcopy.  
3. The submission of the hardcopy of CoO previously sent through the email or other electronic media 
to Customs is conducted:  
a. The soonest of 90 days calendar since the date of customs import document  
b. The latest of 1 years since the date of CoO  
 
(Ques tion 5: Paragraph 3.21, page 66 -67 & Paragraph 3.60, page 85)  
 
Import procedures of air conditioners have been revised according to the import regulation of Indonesian 
Government enforced in August 2020 (Trade RI no.68 2020). As a result, exports of air co nditioners 
from Japan have been delayed because it takes a lot of time to get the verification. Japan would like to 
request Indonesia to provide detailed reasons for the situation.  
 
Answer:  
 
Minister of Trade has had correspondence with Japan Ambassador re garding the implementation of the 
MoT Regulation No. 68 of 2020, where Indonesia does not prohibit the importation of AC from Japan. 
Due to import surge, Indonesia needs to maintain the importation. Some imports have been delayed 
because of time needed to formulate AC import calculation.  
 
(Question 6: Paragraph 3.21, page 66 -67) 
 
The section 3.21 of the report by the Secretariat describes that the products covered by VPTI has 
expanded to a variety of products including rice until 2020 in page 67. According  to the report, VPTI is 
pre-shipment inspection and Indonesia has not notified this to the WTO. Japan would like to request 
Indonesia to explain the details of VPTI, especially about the information and documents that are 
required to export products to Ind onesia.  
 
Answer:  
 
Independent surveyors cooperate with affiliation regarding the information of VPTI.  
 
(Question 7: Paragraph 3.21, page 66 -67) 
 
The section 3.21 of the report by the Secretariat explains that the VPTI is applied to rice. Is VPTI applied 
to rice that is imported to Indonesia for "Other purposes" stipulated in the Article 15 (c) of the Regulation 
of the Minister of Trade No.1 in 2018 of Indonesia? In addition, is VPTI also applied to rice products such 
as packaged cooked rice?  
 
Answ er: 
 
VPTI is mandatory for the products that are restricted, government needs to administering regarding 
this matter. In accordance with Article 32 Minister of Trade Regulation 01/2018, VPTI is applied to 
importation of all type of rice covered in the regu lation.  
 WT/TPR/M/401/Add.1  
 
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  (Question 8: Paragraph 3.25, page 69 -70) 
Regarding the Advance Ruling on Classification, known as Notification of Classification prior to Import 
(Penetapan Klasifikasi Sebelum Impor (PKSI)), What are the cases where advanced written rulings 
cannno t be issued?  
 
Answer:  
 
Advanced written rulling cannot be issued for the following condition:  
a. Importers are not currently submitting Customs Import Document consisting the goods that are 
proposed for the advance ruling clasification; and  
b. The goods that ar e submitted for advance ruling classification are not currently in the process of 
objection and/or appeal at the Tax Court in accordance with the statutory regulations.  
 
(Question 9: Paragraph 3.25, page 69 -70) 
 
In terms of transparency of customs procedur es, are there any measures taken to ensure the 
consistency of tariff classification amongst dufferent agencies?  
 
Answer:  
 
The Goverment provides informastion regarding tariffs on: https://intr.insw.go.id . Other agencies may 
refer to the website in order to ensure the HS code of spesific goods.  
 
3.1.3 Tariffs  
3.1.3.4 MFN tariff bindings  
(Question 10: Paragraph 3.42, page 78)  
 
As mentioned in the WTO document G/IT/W/40/Suppl.4, at the Committee of Participants on the 
Expansion of Trade in Information Technology Products, members are tring to classify the remaining 
unclassified 22 items under HS2007. Japan would like to know the reason why Indonesia has not 
subm itted the comments yet. Particularly, Japan would like to confirm where Indonesia classifies ITA 
item 200 (Projector) under each HS sub -heading in HS1996, 2002, 2007, 2012 and 2017.  
 
(Question 11: Paragraph 3.42, page 78)  
 
Japan would like to request Indon esia to provide with the details regarding Indonesia Custom's 
application of 10% tariff rate on a part of products covered by HS Codes 8517.62. At the ITA Committee, 
Indonesia explained that it was a technical error and Indonesia is considering an appropri ate response 
domestically, but remain unanswered.  
 
Answer for question No. 10 and 11:  
 
Regarding Indonesian ITA products with HS code 8517.62.10 ( - - - Types of radio transmitters and radio 
receivers are used for simultaneous interpretation at multilingual  conferences) BTKI 2017 is subject to 
an import duty of 10%.  
 
However, we have not obtained the adjustment/transposition of the ITA product list, where currently 
the applicable HS is HS 2017, which has been amended 4 times namely HS 2002, HS 2007, HS 2012,  
HS 2017.  The aforementioned products in the ITA list are the group of products in which is the most 
rapid development and changes.  
 
With the absence of a transposition of the ITA product list, it is difficult to carry out tracing of tariff posts 
that are  considered problematic in Indonesia, including HS Code ITA products, because Indonesia 
currently uses HS 2017, while HS Code for information technology products have been amended several 
times.  
 WT/TPR/M/401/Add.1  
 
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  In addition, the classification of projector depends on the specification of the goods, e.g., whether the 
projector is analog or digital, whether it is designed for connecting to Automatic data Processing (ADP) 
machine or not, and other specifications.  
 
Lastly, Indonesia did not make a statement nor explanation on the technical error related to HS Code 
8517.62.10.  
 
3.1.4 Other charges affecting imports  
(Question 12: Paragraph 3.54, page 83)  
 
Importers are required to pay certain percentage of money depending on the imported products as a 
prepayment of income tax. This system causes bad effect for importers' cash flow and as a result, it 
prevents them from investing in Indonesia in some cases. Japan would like to request Indonesia to 
provide detailed reasons for introducing this measure.  
 
Answer:  
 
Government is  improving the tax system to simplify the procedures.  
 
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.2 Import licensing  
(Question 13: Paragraph 3.59, page 84 -85) 
 
According to the report by the Secretariat, Indonesia government simplified its import licensing 
procedure by introducing online system and digital signature, thus improving its efficiency and 
centralization.   
 
Japan would like to make follow up questions concerning import licensing on rice, which was raised at 
the COA in September as well as Import Licensing Committee in October.  
 
In the COA meeting, Indonesia stated that the issue is a B -to-B matter, but according to our 
understanding, the Minister of Commerce has not issued license to the submitted application without  
any reason. In Japan 's view this issue involves a national authority.  
 
While Indonesia also responded in the the Committee on Import Licensing that the Ministry of Commerce 
had issued import licenses for several occasions to the import of Japonica rice, a s far as we understand, 
licenses have been issued for the imports of Japonica rice from other countries, but not from Japan.   We 
would like to request Indonesia to give us clear explanation on the reason. The lack of transparency 
continues hindering the tr ade significantly.  
 
In addition, the provided explanation (i.e. procedural delay is due to the covid -19 situation) in the COA 
does not seem convincing, as some of the applications have not been dealt with for almost a year now.  
 
Japan would appreciate if I ndonesia could solve this issue as soon as possible, and at least provide us 
with a prospect when and how the situation in question could be improved.  
 
Answer:  
 
In the Committee of Import Licensing, we stated that Indonesia never restricts the importation of 
Japonica rice, including those originated from Japan.  
 
Relating to the import approvals on japonica rice, Indonesia already released 3 (three) import approvals 
dated 26 February 2020, 11 March 2020, and 26 June 2020 in each originating from Japan, Viet  Nam, 
Thailand, China, US, and India, with the total import of 6.850 tons. Based on our data, the import 
utilization relating to those 3 import approvals (1.393 tons or 20.33%) are all originating from Viet  Nam.  
 
Indonesia views that those utilization of import approvals relating to Japonica rice is purely based on 
business -to-business decisions from the business entity/importer.  WT/TPR/M/401/Add.1  
 
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  (Question 14: Paragraph 3.59, page 84 -85) 
 
Japan would like to request Indonesia to provide detailed reasons for revising import licensing 
requirements in the categories of textiles and textile products in 2019 (Trade RI. No.77).  
 
Answer:  
 
The import of Textile and Textile Products is regulated under MoT Regulation No. 85 of 2015 revised to 
No. 77 of 2019. The reason  of this revision is to increase the effectiveness of the implementation of 
import of Textile and Textile products.  
 
(Question 15: Paragraph 3.59, page 84 -85) 
 
As for import licensing requirements in the categories of textiles and textile products, what w as the 
reason why Indonesia has determined to provide licenses only to: (i) the importers who will resell the 
targeted products only to SMEs and (ii) the importers who use their imported products for their 
self-consumption. Are there any problems for allowing licenses to importers who sell their products to 
general consumers or to big companies?  
 
Answer:  
 
Such measures in import licenses are taking into account the domestic and international markets 
situation. Indonesia is committed with the WTO agreem ent in the import licenses. Currently, the 
regulation regarding import of carpet is still under revision. The revised regulation is expected to solve 
current problem that occurs during import process.  
 
(Question 16: Paragraph 3.59, page 84 -85) 
 
How long w ill the import licensing requirements for textiles and textile products continue? Under what 
conditions will the Indonesian government change or withdraw the measure?  
 
Answer:  
 
The regulation (MoT Regulation No. 77 of 2019) is currently in the process of e valuation and further 
discussion involving inter -ministerial and institutional arrangements.  
 
We strive to formulate the better regulation that can provide fair business opportunities for domestic 
and Japanese industries in Indonesia.  
 
(Question 17: Paragr aph 3.59, page 84 -85) 
 
The import licensing requirements for textiles and textile products practically serve as an import ban for 
some companies.   Some Japanese companies have been unable to export their products because their 
local agencies in Indonesia h ave been unable to get import licenses since the implementation of revised 
import licensing requirements in December 2019. As a result, exports of carpet tiles from Japan have 
been stopped. Since the impact on the business activities have been significant,  Japan would like to 
know (i) why these import licenses are not approved promptly, and (ii) when the Japanese local agencies 
in Indonesia can get the approval of import licenses.  
 
Answer:  
 
The regulation ensures the effectivity of import policy. In principle, the application for the Import 
Approval (PI) of Textile and Textile products will be issued as long as all the requirements are fulfilled 
and received completely and correctly through t he INATRADE system.  
 WT/TPR/M/401/Add.1  
 
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  (Question 18: Paragraph 3.59, page 84 -85) 
 
Japan would like to know whether the import licensing requirements of textiles and textile products 
(especially for carpets) will be abolished or loosened once the safeguard measure for impor ts of carpets 
and other textile floor coverings(G/SG/N/8/IDN/27 、G/SG/N/11/IDN/27) will be effective.  
 
Answer:  
 
The imposition of safeguard measures does not remove any other domestic regulation because the 
objective of the imposition of safeguard measures is to prevent or remedy serious injury and to facilitate 
adjustment of the domestic industry according to the provisions of the WTO Agreement on Safeguards 
Article 5. A safeguard measure does not consider to any domestic regulation, to prevent or remedy 
serious injury from the negative effect of increased imports. Furthermore, a safeguard measure may be 
applied by the authority to a product only if that Member of WTO has determined, that such product is 
being imported into its territory in such qua ntities, absolute or relative to domestic production, and 
under such conditions as to cause or threaten to cause serious injury to the domestic industry that 
produces like or directly competitive products based on Article 2.1 Agreement on Safeguards.  
 
(Que stion 5: Paragraph 3.60, page 85 & Paragraph 3.21, page 66 -67) [Repost]  
 
Import procedures of air conditioners have been revised according to the import regulation of Indonesian 
Government enforced in August 2020 (Trade RI no.68 2020). As a result, exports  of air conditioners 
from Japan have been delayed because it takes a lot of time to get the verification. Japan would like to 
request Indonesia to provide detailed reasons for the situation.  
 
Answer:  
 
Minister of Trade has had correspondence with Japan Amb assador regarding the implementation of the 
MoT Regulation No. 68 of 2020, where Indonesia does not prohibit the importation of AC from Japan. 
Due to import surge, Indonesia needs to maintain the importation. Some imports have been delayed 
because of time needed to formulate AC import calculation.  
 
3.1.6 Anti -dumping, countervailing, and safeguard measures  
3.1.6.2 Safeguards  
(Question 19: Paragraph 3.70, page 87)  
 
On what ground did the KPPI propose the safeguard duty rate of Rp 85,679/m2 in the first year? It will 
amount for approximately 150% to 200% ad valorem (per export price), which surprised us. There is 
no description about the reason for this extremely high duty rate in the notification under 
article  12.1(B)(G/SG/N/8/IDN/27).  
 
Answer:  
 
Based on Article 5 of WTO agreement on safeguards "Application of Safeguard Measures", the proposed 
safeguard measures aims to facilitate the Petioner 's structural adjustment program in order to prevent 
serious injury caused by surge of imports. Therefore,  the ground of the safeguard duty based on the 
structural adjustment plan of the applicant and also the threat of serious injury experienced by the 
applicant inter alia the decrease in production, domestic sales, utilization capacity, profits, and 
employme nt, as well as an increase in inventories. Furthermore, National consumption has increased in 
the period of 2017 -2019 with a trend of 4.70%, in line with the increasing number of imports which 
resulted in the decrease of the market share of Applicant and N on-Appliicant with a trend of 8.85% and 
3.07% respectively. Meanwhile, during the same period, the import market share increased with a trend 
of 19.61%.  
 
(Question 20: Paragraph 3.70, page 87)  
 
Proposed subject goods (HS. codes 57, 5701 -5705) have been cov ered by the import regulation of 
Indonesian Government enforced December 2019 (Trade RI no.77 2019). Under the regulation, imports WT/TPR/M/401/Add.1  
 
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  are prohibited unless importers have import licenses. How did the Indonesian authority find a serious 
injury in spite of this  stringent import restriction. The amount of imports of the target products 
significantly decreased in 2019 due to the import regulation.  
 
Answer:  
 
Government applies safeguard based on the investigation by the KPPI.  
 
(Question 21: Paragraph 3.70, page 87)  
 
Proposed SG measures are supposed to cover all products under HS. codes 57. For which specific 
products among them is the serious injury to the domestic industry found? Can the Indonesian authority 
consider narrowing down the subject goods of the propose d SG measures to the specific products?  
 
Answer:  
 
Based on the investigation result, carpets and other floor coverings textile produced by the Applicant 
are like products or directly competitive products with the import products under HS codes 57, because 
they have the same characteristics, production process, raw materials, standardization, and usage. In 
addition, the Applicant is able to produce products that meet the quality required by consumers because 
domestic industries have national and internationa l certificates, namely K3L (Security, Safety, Health 
and Environment) from Ministry of Trade of the Republic of Indonesia, ISO 9001: 2015 regarding 
Designing  
 
(Question 22: Paragraph 3.70, page 87)  
 
Is it not possible for the Indonesian authority to limit the measure to the countries whose imports of the 
target products are found to have increased? (by way of country -exclusion process)   
 
Answer:  
 
In this regard, Indonesia adheres to Agreement on Safeguard as well as Government Regulation 
No. 34/2011.  
 
(Ques tion 23: Paragraph 3.70, page 87)  
 
Tufted carpets (HS 5703.20.90) and tufted man -made textile carpet (HS 5703.30.90) exported from 
Japan are so different from those made in Indonesia in terms of feature, price and usage, that they do 
not compete with Indonesian products. In particular, most of tufted carpets (HS 5703.20.90) exported 
from Japan are interim products of car mat which are to be exported to Japan after processing in 
Indonesia. It is difficult to find Indonesian domestic suppliers whose prod ucts meet the Japanese car 
manufacturer 's quality requirement. Indonesian authority should then consider excluding those 
two products made in Japan from the proposed SG measure.  
 
Answer:  
 
Tufted Carpet and Tufted Manmade Textile Carpet have been produced b y Domestic Industry which 
have the same quality, function and usage as imported goods. The domestic producer who produces 
Tufted Carpet and Tufted Manmade Textile Carpet is PT. (limited company) Classic Prima Carpet 
Industries.  
 
3.1.7 Other measures affect ing imports  
(Question 24: Paragraph 3.73, page 88 -89) 
 
With regard to the local content requirments for TV, Japan would like to request Indonesia to provide 
with the details on how the local content requirements TKDN (Tingkat Komponen Dalam Negeri: a 
regulation that enforces local production of TVs) is consistent with TRIMs and GATT article III:4.  
 WT/TPR/M/401/Add.1  
 
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  (Question 25: Paragraph 3.73, page 88 -89) 
 
With regard to the local content requirments for 4G LTE mobile devices and base stations, Japan would 
like to req uest Indonesia (i) identification of the latest relevant laws and regulations, (ii) explanation on 
how the local content requirements are implemented, and (iii) explanation on why Indonesia considers 
that such local content requirements are consistent with  TRIMs and GATT article III:4.  
 
Answer for question No. 24 and 25:  
 
With regard to concern with Indonesia's localization measures, we convey that those provisions are put 
in place either: First, in relation to government procurement. Second, in relation to  policies which involve 
fulfilling the needs to maintain all of Indonesia people's welfare and their life necessities, and  
Third, in relation to policies which involve state -managed strategic resources  
 
(Question 26: Paragraph 3.73, page 88 -89) 
 
With regar d to the local content requirments for franchising, Japan would like to request Indonesia 
clarification on (i) identification of the latest relevant laws and regulations, (ii) explanation on how the 
local content requirements are implemented, and (iii) exp lanation on why Indonesia considers that such 
local content requirements are consistent with TRIMs and GATT article III:4.  
 
(Question 27: Paragraph 3.73, page 88 -89) 
 
With regard to the local content requirments for retailing, Japan would like to request I ndonesia 
clarification on (i) what specifically is required under the obligation to prioritize the use of goods and/or 
services produced domestically" under Article 18 of Ministry of Trade Regulation 71/2019, and (ii) 
whether it is correct to understand th at the obligation to sell domestic products to be 80% of total 
amount and types of goods sold were repealed and does not apply any longer in any manner.  
 
Answer for question No. 26 and 27:  
 
The obligation to use domestic products is performed if there are participants that offer goods/services 
with the national contribution value plus the corporate contribution value of a minimum of 40%. 
However, it should be noted that the procurement of imported goods may be conducted if the goods 
cannot be prod uced domestically or domestic production volume is unable to meet the demand.  
 
(Question 28: Paragraph 3.73, page 88 -89) 
 
With regard to the provision of setting the framework of for promoting the use of locally poruced 
products (Article 22 of Trade Law (L aw No.7/2014)), Japan would like to ask clarification on (i) the legal 
structures of laws and regulations that implement this provision, in particular on how the local content 
requirements would be calculated and applied and (ii) how Indonesia ensures that  the implementation 
of this general framework to be consistent with the national treatment requirement under TRIMS and 
GATT Article III:4.  
 
Answer:  
 
With regard to concern with Indonesia's localization measures in accordance with Trade Law, we convey 
that those provision are put in place either: First, in relation to government procurement. Second, in 
relation to policies which involve fulfilling the needs to maintain all of Indonesia people's welfare and 
their life necessities, and Third, in relation to policies which involve state -managed strategic resources.  
 
(Question 29: Paragraph 3.73, page 88 -89) 
 
Japan understands from the discussions among the Members in the recent Goods Council meetings and 
TRIMs Committee meeting that Indonesia is currently u ndertaking a "compehensive" review of local 
content policies. Japan requests Indonesia to share details of develeopment of such review (e.g., specific 
policies and/or laws and regulations that are subject to such review, prospects of possible revisions).  WT/TPR/M/401/Add.1  
 
- 205 - 
 
  Answer:  
 
Government has started the comprehensive review of our localization measure. The review has been 
started with the process of harmonizing a set of related regulations. We have also established National 
Team comprising of related government authoriti es with one of the main tasks is to harmonize the said 
regulation. This is a continuing process and a work in progress.  
 
3.2 Measures Directly Affecting Exports   
3.2.2 Taxes, charges, and levies  
(Question 30: Paragraph 3.77 (Table 3.6), page 90 -91) 
 
Regard ing "wood " on Table 3.6, Japan would like to request Indonesia to specify and list the HS codes 
of the products on which export tax of 2%,5%,10% and 15% are imposed.  
 
Answer:  
 
The list of the HS code of the products on export tax for "wood " is in the attac hment of MoF Regulation 
No. 13/2017 and No. 166/2020.  
 
3.2.3 Export prohibitions, restrictions, and licensing  
3.2.3.1 Export prohibitions  
(Question 31: Paragraph 3.80 (Table 3.7), page 92)  
 
Japan would like to request   Indonesia to provide the following information regarding export prohibition 
on "Certain wood products, including raw and semi -processed rattan, conifer and bearing tree wood for 
railroad or tramway crossties " 
1) What wood prod ucts are exactly meant by certain wood products " 
2) Background and objective of introducing export prohibition of crossties since 2019, and the impact 
of this measure on domestic processing industry of crossties  
3) Which species of Conifer tree are general ly used for railroad and tramway crosstie in Indonesia  
4) Rational for consistency with WTO rules of export prohibition (Understanding the necessity to 
encourage the domestic processing industry and smuggling, Japan would appreciate if Indonesia would 
share the legal rationale of the measures in terms of WTO consistency.)  
 
Answer:  
 
1) Related to the export ban on certain types of wood is regulated in MoT Regulation No. 45 of 2019 
concerning Export Prohibition for Goods. The wood that is prohibited to be exp orted in the Regulation is 
in the form of logs (raw wood).  
2) the background of this prohibition is because it is considered as raw wood, and to preserve the 
environment. By this prohibition, all of the raw wood must be proceeded in order to get higher val ue 
added to be exported. This is regulated by MoT Regulation No.74 of 2020.  
3) In the annex of the MoT Regulation No. 45 of 2019, it is stated the HS code 440691 (but it is not 
specified, or it can be assumed that all kind of wood can be used for crossties ). 
4) The rationale of this export prohibition is to preserve the environment.  
 
3.2.3.2 Export restrictions and licensing  
(Question 32: Paragraph 3.82 (Table 3.8), page 93 -96) 
 
ETPIK license may strengthen the legitimacy of exportation but it is reported that "in 2020, MoT 
Regulation No. 45/2020 revoked the use of the ETPIK license.". Japan would like to request Indonesia 
to explain the reason for the revocation of ETPIK license, and also would like to ask whether this 
revocation is a temporary measure for  COVID -19 or a permanent repeal of the use of ETPIK.  
 WT/TPR/M/401/Add.1  
 
- 206 - 
 
  Answer:  
 
ETPIK revocation is carried out in order to simplify the export licensing of wood industrial products.  
Actually, ETPIK is used as administrative purpose only. Whether the revocation is permanent or 
temporary, there is no information yet.  
 
3.3 Measures Af fecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.1 Institutional and legislative framework  
(Question 33: Paragraph 3.130, page 117)  
 
Japan recognizes that Indonesia requires importers to get an import permit for a certain kind of plants. 
Although National Plant Protection Organizations (NPPOs) of exporting countries are supposed to comply 
with the phytosanitary requirements, which are described in the permits including issuance of export 
phytosanitary certificate (P C), test, requirement of additional declaration on PC, the NPPOs of exporting 
countries cannot understand the requirements precisely because the permits are written in the local 
language of Indonesia. Japan would like to request Indonesia to issue the impo rt permits in English.  
 
Answer:  
 
The Web of quarantine body (Barantan) is still in Indonesian Language, for unofficial translation in 
English language, it can be requested through Japan Ambassador in Jakarta.   
 
3.3.3.2 SPS measures  
3.3.3.2.3 Horticulture  
(Question 34: Paragraph 3.143, page 120 -121)  
 
Indonesia explained that, for importing fresh foods, pest risk analysis (PRA) is necessary for the products 
which have not been imported commercially in the past, but not necessary if imported in the past. 
Howe ver, Japan has been concerned that the actual decision of necessity of PRA for specific cases by 
Ministry of Agriculture of Indonesia is untransparent and arbitrary.  
 
Japan has provided the statistical data based on the Indonesian government's statistical data "Statistics 
Indonesia", which clearly shows that Indonesia imported commercially valuable amount of persimmon, 
melon, strawberry and citrus from Japan in the past. However, the Ministry of Agriculture has not allowed 
to import those four i tems from Japan yet and request PRA for the import of them against the provided 
explanation on the necessity of PRA.  
 
Japan would like to request Ministry of Agriculture of Indonesia to refer to the Statistics Indonesia (BPS) 
about the trade statistics dat a of persimmon, melon, strawberry and citrus from Japan and explain the 
reason why the Ministry of Agriculture of Indonesia has not allowed to import them.  
 
Answer:  
 
This rule does not only apply to Japan, but also to other countries, for commodities enter ing Indonesia 
for the first time, it must pass a Pest Risk Analysis (PRA). The process from submission to approval 
takes a long time, because there are a number of technical documents required, including integrated 
pest management, pest status in the count ry of origin, etc. The time depends on the exporting country 
to complete the required documents.  
 
There is always an evaluation for the commodities that have entered to Indonesia, depending on the 
conditions of the pest in the country of origin (the lates t pest status and this applies to other countries 
as well). Apart from PRA, we also need a Country Recognition Approval which is valid for 3 years.  
 WT/TPR/M/401/Add.1  
 
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  3.3.7 Intellectual property rights  
(Question 35: Paragraph 3.207, page 137)  
 
Does Indonesia have a "comprehensive power of attorney" system that allows the granting of 
comprehensive agency rights for multiple application procedures for patents, simple patents, designs 
and trademarks? If not, are there any plans to introduce this system?   
 
Answer:  
 
Curre ntly, Indonesia has no plan to introduce this system.  
 
(Question 36: Paragraph 3.208, page 137)  
 
Is Indonesia planning to ratify the Geneva Act of the Hague Agreement Concerning the International 
Registration of Industrial Designs? If so, when does Indones ia plan to ratify it?  
 
Answer:  
 
The Indonesian Industrial Design Law needs to be revised before the accession. The revision is currently 
in the process. If the provisions on international registration of industrial design are approved under the 
draft revis ion of industrial design law, the accession can be carried out.  
 
3.3.7.1 Industrial property   
3.3.7.1.1 Patents  
(Question 37: Paragraph 3.209 -211, page 137 -139)  
 
According to Article 20(1), Article 82(1)(a) and Article 132(e) of the Patent Law, a patent is subject to 
compulsory license or deletion by authority if such patent is not implemented within 36 months after 
granted. On the other hand, Article 20(1) will be amended to cover also "import" as implementation of 
patent by so -called "Omnibus bil l regarding creation of employment" which has been passed in 
Parliament on October 5th, 2020.  
 
Therefore, we understand if patented product or product produced by patented method is imported to 
Indonesia, the patent is NOT subject to compulsory license or deletion by authority. We would like to 
confirm whether our understanding is correct or not.  
 
Answer:  
 
Based on Job Creation Law, revision of Patent Law, patent required in Indonesia with implementation:  
a. patent -product involves making, importing, or licens ing patent product;  
b. patent -process involves making, licensing, or importing product from the patent process;  
c. patent -method, system, and used involves making, importing, or licensing product from the method, 
system, and used patent.  
 
(Question 38: Paragraph 3.209, page 137 -138)  
 
According to Article 34, Paragraph 3 of the Indonesian Patent Law, when the description of an invention 
is written in a foreign language, the description must be accompanied by a translation to the Indonesian 
language.   
 
Article 69 of the Law states that correcting the mistranslation of a description can be requested after 
the grant of the patent. On the other hand, according to Article 39 of the Law, it is considered that the 
description can be amended during the examination  stage before the grant of the patent, but it is not 
clear whether the mistranslation of the description can be amended.  
 
When the translation of the description contains any mistranslation, is it possible for the applicant to 
correct the mistranslation du ring the examination stage? If it is possible to correct the mistranslation,  WT/TPR/M/401/Add.1  
 
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  please explain the conditions under which it can be corrected and share the information of the relevant 
laws, rules, regulations and guidelines.  
 
Answer:  
 
Translation must be subm itted in certain period of time as mentioned in regulation, but the 
ammendment or correction to the description is allowed provided that the ammandement does not 
extend the scope of the invention.  
 
(Question 39: Paragraph 3.210, page 138)  
 
According to the  patent law revision entered into force on August 28, 2016, in Article 4 (f), "New 
application of existing and/or known product," and "a new form of an existing chemical compound for 
which significant effect improvement has not been found and there is no d ifference from the chemical 
structure related to those already known for the chemical compound," are excluded from patent 
protection.   
 
Japan would like to request that Indonesia provide details regarding the following:  
i. The number of applications which were refused under Article 4 (f) since 2016 (each years).  
ii.  Concrete examples regarding above (including abstract of each case, existing and/or known 
products which are based on refusals).  
iii. Progress status of examination guideline s which have been drafted as a principle in examination 
practices of Article 4 (f) of the Patent Law.   
 
Also, TRIPS Agreement Article 27.1 prescribes that patents shall be available and patent rights enjoyable 
without discrimination as to the field of tech nology. Japan would like to ask if there are any laws/ 
regulations/ Articles such as Article 4 (f) for other than chemical compounds. If there are, please specify 
related laws/ regulations/ Articles.   
 
Answer:  
 
Since 2016 until 2019, the number of refusals under article 4.4 is less than 10 patent applications. 
Guidelines for substantive examination of patent has been signed by the Director General of IP on 
October 2019 and has been being used since 2020. Inventio ns related to article 4.f, Indonesia has issued 
Guidelines for substantive examination of patent with particular appendix for pharmaceutical inventions, 
in which invention related to "second use " may be formulated in accordance with the guidelines.  
 
(Quest ion 40: Paragraph 3.212, page 139 -140)  
 
Law No. 16/2016 on Patent provide the patent implementation by government in Section VIII. According 
to Articles 109(1)(b) and 111(a), the government may take over a patent for the reason that the patent 
is related to emergency necessity in the public inte rest, such as pharmaceutical and/or biotechnology 
products that are expensive and/or required to overcome disease that may cause large numbers of 
sudden death or significant disability, and constitute a public health emergency that concerns the world. 
When  considering the above -mentioned "emergency necessity in the public interest ", if a pharmaceutical 
company as patent owner has actively been providing cooperation on the supply of its pharmaceutical 
and/or biotechnology products to Indonesia at the request  from the government, could such 
circumstances be taken into consideration toward denying the necessity?  
 
Answer:  
 
We are open to any insight from other parties; however, we should also consider the emergency 
circumstances and needs.  
 
(Question 41: Paragra ph 3.212, page 139 -140)  
 
According to Article 116(1) of Law No. 16/2016 on Patent, if the government is unable to implement a 
patent by itself, it may appoint a third party to implement the patent. In other words, it can assign what WT/TPR/M/401/Add.1  
 
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  is commonly called a co mpulsory license. According to our understanding, Presidential Regulation 
No. 77/2020 regarding Procedures of Patent Implementation by the Government is the implementing 
regulation of Articles 109 -120 of Law No. 16/2016 on Patent. Could Indonesia explain t he detailed 
process of patent Implementation in case that the government appoint a third party to implement 
patent, which is provided in the implementing regulation or any other law or regulation?  
 
Answer:  
 
Presidential Regulation No. 77/2020 regarding Pro cedures of Patent Implementation by the Government 
is the implementing regulation of Articles 109 -120 of Law No. 16/2016 on Patent.  
Compulsory license is regulated on Article 81 -107 Law No 20 16 of 2016. So, Article 116 (1) is still about 
government use.  
Article 116 (1) is an exception in the case that the Government cannot execute the Patent itself.  
 
(Question 42: Paragraph 3.214, page 140)  
 
It is beneficial to widely publish claims and specifications of patent applications for free. For instance, 
compani es can easily check whether their products/ goods infringe on other patents or not. Also, 
companies can avoid R&D duplication by searching patent applications. Besides, it is generally 
understood that patentees are given exclusive rights for a certain peri od in return for disclosure of their 
invention. Are there any plans to publish claims and specifications of patent applications for free in 
Indonesia?  
 
Answer:  
 
Currently, Government has no plan to amend related to provision above.  
 
3.3.7.1.3 Trademarks and geographical indications  
(Question 43: Paragraph 3.218 & Paragraph 3.219, page 141)  
 
Japan would like to ask Indonesia about examinations when applications for registration of a trademark 
which is identical or similar to a trademark well -known only in foreign countries other than Indonesia is 
filed. If there are any cases where such an application was rejected or such a registration was canceled, 
please provide the details of those cases. Also, if there are any related laws, rules, regulation s and 
guidelines, please share this information.  
 
Answer:  
 
An Application is refused if the Mark is substantively similar to or identical with (Law No. 20 of 2016 on 
Trademark and Geographical Indications):  
a. a well -known Mark of other parties for similar go ods and/or services;   
b. a well -known Mark of other parties for different goods and/or services complying with certain 
requirements;  
 
Application refusal based on well -known trademark for different goods and/or services include 
(Regulation of The Minister of  Law and Human Rights Number 67/2016 on Trademark Registration):  
a. opposition submitted in written by the owner of well -known trademark to application.  
b. prior registered well -known trademark.  
 
Criteria for a well -known trademark (Regulation of The Minister of  Law and Human Rights Number 
67/2016 on Trademark Registration):  
a. level of public knowledge or recognition to concerned trademark in relevant business sector as a 
well-known trademark;  
b. sales volume of goods and/or services and profit obtained from utilizat ion of concerned trademark 
by its owner;  
c. market share dominated by concerned trademark in relation to distribution of goods and/or services 
in the society;  
d. coverage area of trademark utilization;  WT/TPR/M/401/Add.1  
 
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  e. duration of trademark utilization;  
f. intensity and promotion o f trademark, including investment value vested on its promotion;  
g. trademark registration or application for trademark registration in other countries;  
h. success rate of trademark law enforcement, particularly recognition of concerned trademark as a 
well-known trademark by authorized agency; or  
i. inherent value of the trademark due to its reputation and guarantee over quality of  goods and/or 
services which protected under concerned trademark  
 
(Question 44: Paragraph 3.220, page 141 -142)  
 
Could Indonesi a clarify the consistency between the provisions of Article 38 of the MLHR Regulation No. 
12 of 2019 and Article 24, Paragraph 5 of the TRIPS Agreement? Japan would also like to ask whether 
or not there are any plans to revise this Regulation? If so, when does Indonesia plan to do it?  
 
Answer:  
 
The clause in Article 38 paragraph 1 of the Regulation of the Minister of Law and Human Rights No.12 
of 2019 is a repetition of Article 68 paragraph 2 of Law Number 20 of 2016, where in paragraph 1 article 
68 of Law Number 20 of 2016 it is explained that the elements of good faith are included as a basis for 
consideration to protect trademarks which have similarities with Geographical Indications. In short, 
Article 38 explains that if a trademark is identical with, or  similar to a Geographical Indication, the 
trademark owner whose trademark has been registered for 5 years or more and is in good faith, can 
use the trademark without having to obtain permission from the Geographical Indication owner.  
 
Meanwhile, for trad emark of a trademark that has been registered for less than 5 years and is in good 
faith, the trademark owner can use the trademark by obtaining approval from the Geographical 
Indication owner. This is an attempt by Indonesia to facilitate the protection o f trademarks that is 
identical with, or similar to Geographical Indications. So far there are no plans to make revisions related 
to the regulation of the minister of law and human rights of the Republic of Indonesia No.12 of 2019.  
 
3.3.7.3 Enforcement  
(Que stion 45: Paragraph 3.234, page 145 -146)  
 
Could you please provide the details of "the pre -emptive programme of IP" stated in the report? In our 
view, it seems to be a programme to prevent access from websites that infringe IP rights. Meanwhile, 
we can als o see a statement in the report that states, "it recommended closing 604 websites". Does it 
actually require deleting the site, or is it just a recommendation to delete it? Japan would like to request 
that Indonesia provide the scheme of the above -mentione d programme.  
 
Answer:  
 
Ministry of Communication and Informatics will delete certain websites that Ministry of Law and Human 
Rights recommends as infringement of IP.  
 
(Question 46: Paragraph 3.236, page 146)  
 
Could you please provide the details of "IPR recordation" stated in the report such as the number of the 
IPR recordation? In my understanding, overseas companies cannot use this recordation system without 
local subsidiary assistance. Japan would like to ask about the number of overseas companies  which have 
registered their IPs with Customs. In addition, Japan understands that Customs has suspended 
two cases (STANDARD PEN, and P & G) thus far under this IPR recordation. Please let us know if there 
are others.  
 
Answer:  
 
According to the Ministry of Finance Regulation No. 40/PMK.04/2018, the foreign applicants must have 
a permanent establishment or local subsidiary in Indonesia in order to apply for recordation system. WT/TPR/M/401/Add.1  
 
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  The regulation also mentioned that the owner or the ri ght holder is owner or right holder of the IPR 
protected in Indonesia based on the regulation regarding the IPR.  
 
Currently, P&G Indonesia (as representative) is the company which has registered their IPs with 
Customs; and there are no other cases except t wo cases above -mentioned.  
 
4 TRADE POLICIES BY SECTOR  
4.1 Agriculture, Forestry, and Fisheries  
4.1.7 Forestry  
(Question 47: Paragraph 4.90, page 169 -170)  
 
SVLK and V -legal license on the export of processed wood products is mentioned in the report. As digital 
solutions may lead to promotion of legality verification, Japan would like to ask following questions:  
- What kind of digital technology is introduced in the system to verify legality of wood products (i.e. 
from logging site through distribution in cluding processing and retailing)   
- Information on innovative technologies for the verification system if Indonesia plans to introduce any.  
 
Answer:  
 
One Timber One ID (SIPUHH) is an innovation as a tool in controlling forestry business. It provides a 
system in which any timber traded has an ID, so its origin and legality can be identified. MoEF also has 
AIKO (Automatic Wood Identification Tool), an Android -based mobile phone application that is able to 
identify wood through cross -sectional photos. A cross -section of the wood is then sent to the server for 
analysis according to the timber identity data stored in KLHK's Xylarium Bogoriense. The output is a 
complete timber identity with an accuracy rate of up to 97 percent, such as information on scientific 
names, specific gravity, strong class, durable class, trade classification, and usage recommendations. 
AIKO will help the development of big data on Indonesia's biodiversity richness, especially the diversity 
of woody plants. AIKO can identify 823 Indonesia n species.  
 
(Question 48: Paragraph 4.90, page 169 -170)  
 
Supplier 's Declaration of Conformity (SDoC) is described in the report. As easing the procedure for 
V-legal might have impacts on the legality verification system, Japan would like to request Indones ia to 
provide following information:   
- The number of total V -legal licensees including SDoC  
- The number of SDoC licensees  
- The proportion of SDoC to total V -legal licensees  
 
Answer:  
 
Only V -Legal/FLEGT licenced timber products are allowed to be exported . The data of V -Legal/FLEGT 
licensees is available in SILK website (silk.dephut.go.id). SDoc is issued for low risk species (plantation 
by forest farmers) and issued by forest farmers and small scale industries which only utilizing such low 
risk species. T ransport licence is applied as SDoc and its legality is verified by the receiving industries 
and checked by Certification Body. Industry must facilitate its suppliers whom issuing SDoc to be S -LK 
certified.  
 
4.2 Mining and Energy  
4.2.1 Mining  
(Question 49: Paragraph 4.104, page 174 -175)  
 
While the embargo on nickel ore was resumed on January 1 this year, the plan to build a new smelter 
is not progressing as planned due to COVID -19. Will the measure to embargo nickel ore be maintained?  
 
Answer:  
 
The regulation in nickel ore is still in force.  
 WT/TPR/M/401/Add.1  
 
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  (Question 50: Paragraph 4.104, page 174 -175)  
 
In the new Mining Law enacted on June 10 of this year, detailed regulations such as export requirements 
for unprocessed minerals are to be determined by  the ministerial ordinance of the government, but this 
ministerial ordinance has not yet been enacted. Japan would like to request Indonesia to provide 
information on the plans for this ordinance.  
 
Answer:  
 
The previous regulation still applies as long as it does not contradict with the new regulation.  
 
(Question 51: Paragraph 4.104, page 174 -175)  
 
The Omnibus Law enacted on November 2 includes provisions that overlap with the contents of the 
revised New Mining Law. Japan would like to request Indonesia to provide information on the linkage 
between the two Laws, including their priorities.  
 
Answer:  
 
There are no contradiction nor overlap between the two Laws. For mining sector, the Job Creation Law 
regulates coal royalty mechanism.  
 
4.3 Manufacturing  
4.3.6 Automotive  
(Question 52: Paragraph 4.187, page 197)  
 
Based on the PR No. 55/2019, we understand that the Indonesian government is preparing the fiscal 
incentives for the EV industry. Japan would like to request the Indonesian government to provide with 
the details of those incentives, especially the scope of modified luxury tax which relevant ministry is 
expected to release soon,  
 
Answer:  
 
Indonesia is committed to reduce CO2 emission. The ultimate goals of the policy are to im prove the 
environment (CO2 and Pollutant reduction), enhance science & technology for CASE era, , human capital 
(Research & Development), and capacity building of Domestic EV Maker. This policy also treats equally 
both domestic and foreign investors.  
 
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  PHILLIPINES  
PART ONE: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
I. ECONOMIC ENVIRONMENT  
 
Para 11 (Page 11)  
During the review period, Indonesia's main trade facilitation developments included: the acceptance of 
the WTO TFA in 2017; the launching of the Authorized Economic Operator (AEO) programme and of a 
Post-Border Import Supervision Policy; the participation in the ASEAN Single Window (ASW); and the 
integration of the Indonesia Single Risk Management (ISRM) system within the Indonesia National Sin gle 
Window (INSW) platform. Furthermore, the regulatory framework of its Customs Main/Prominent 
Partners programme was updated in 2017, and the product coverage of its import verification 
programme requirements was expanded to 29 (19 in 2013) product categ ories (338 items in 2020). The 
customs valuation regime and its main method used, the transaction value, remained unchanged; to 
combat under -invoicing and mis -invoicing, Indonesia continues to maintain two databases of market 
prices for customs valuation p urposes, and the declared customs value is assessed based on a Fairness 
Test as reasonable or unfair. In addition to customs duties, import -related charges and internal direct 
taxes, imports also remain subject to a withholding tax, whose rates were raised  in 2018; in 2016, 
harbour dues for international routes were seemingly much higher than for domestic routes.  
 
Question:  
1. The Regulation of the Minister of Trade Number 87/M -DAG/PER/10/2015 concerning Provisions 
on the Import of Certain Products means that only certain products are allowed per port which is 
seen as detrimental for the entry of Philippine products. For example, if the Philippines will export 
to Manado (Eastern Indonesia), Indonesia will not allow entry since there are only certain products 
that Manado can accept and instead divert the entry of the products to Jakarta. Could Indonesia 
clarify this regulation and update if there are any possibilities that this could be repealed, 
amended, or make business friendly in the future?   
 
Answer:  
 
The Regulation of the Minister of Trade Number 87/M -DAG/PER/10/2015 is meant to simplify the 
licensing procedures for certain imported products, with the aim to improve the competitiveness of the 
Indonesian -based producers in producing their final products . the principal of limitation of importation 
as regulated under this regulation is based on the principals regulated under article 20 and SPS 
Agreement.  
 
Para 19 (Page 12)  
Key SPS developments included the entry into force of new laws on animal, fish and p lant quarantine; 
livestock services and animal health; halal product assurance; the protection and empowerment of 
farmers; and amendments to the Law concerning State Crops. SPS measures on beef, chicken meat 
and chicken products, and animal and plant/horti cultural products have been the subject of WTO 
Members' concerns in the SPS Committee and/or in dispute settlement proceedings. Among the 
numerous developments over the review period, quarantine services were made more efficient, through 
the launch of the Indonesian Quarantine Full Automation System (IQFAST); processed food registration 
requirements were eased slightly; inspection fees were levied on all animal product establishments 
seeking to import into Indonesia; requirements for dairy processers and im porters to establish 
partnerships with local dairy farmers in order to obtain an import permit were removed; the list of live 
aquatic species banned from import was expanded; and, by 2026, all halal products sold on the 
Indonesian market will require certi ficates from the newly established Halal Certification Agency; 
currently, these certification requirements apply to food and beverages.  
 
Question:  
2. On halal requirements and mandatory halal certification, could Indonesia provide clarification on 
the timeline of its full implementation, transition period, and how this regulation is affected and / 
or improved by the passage of the Omnibus Law on Job Creation?  
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  Answer:  
 
The stages of obligations for halal certification based on types of products are sta ted in Minister of 
Religious Affairs  Regulations No. 26/2019 articles 30 to 35, starting from food and beverage products 
from 17 October 2019 to 17 October 2024. Indonesia has notified the draft which contains stages of 
Mandatory Halal Product Certificatio n with the different transition period of time, to the Secretariat TBT 
WTO (G/TBT/N/IDN/123).  
 
Currently, the regulation regarding halal certification is still under review, in order to be in line with 
omnibus Law of Job Creation.  
 
Para 24 (Page 14)  
Agricu lture continues to play an important role in the economy (13.3% of GDP in 2019), with rice, palm 
oil, oil palm fruit and palm kernels accounting for nearly two thirds of the total value of production; palm 
oil remains the main agricultural export. Policy o bjectives include self -sufficiency in staple foods, and 
targets for rice, maize, soybeans, sugar and beef were set. The regulatory framework was updated in 
several areas, including financial assistance, agrarian reform and food security. Tariff protection for 
agricultural products rose, and remains above the overall applied MFN average and the average for 
manufacturing. Restrictive import licensing requirements for several products, aimed at promoting 
domestic production to fulfil local demand requirements,  remain in place. Export taxes, prohibitions, 
and licensing requirements continue to affect certain products. As at 2019, seven SOEs were involved 
in agricultural, forestry and fishing activities, including trading. Tax and non -tax policy instruments, in 
the form of land concessions, subsidized fertilizers, irrigation infrastructure improvements, concessional 
loans and market price support for rice, continue to be used for raising agricultural output, productivity 
and competitiveness.  
 
Question:  
3. It was ment ioned that Indonesia still applies restrictive import licensing requirements for several 
products aimed at promoting domestic production to fulfil local demand requirements. Could 
Indonesia provide details on which products are included?  
 
Answer:  
 
The pro duct included in the said measure is Coal.  
 
Para 27 (Page 14)  
 
Mining and energy continue to make significant contributions to the economy. The main policy and 
legislative framework for mining remained virtually unchanged; 100% foreign investment in the mining 
sector is allowed, subject to the foreign share ownership divestment rules on the transition from the 
pre-2009 licensing regime to the current one. Export taxes and restrictions on minerals, to support the 
development of domestic processing faciliti es, were continued. A 2014 ban on exports of unprocessed 
(or not -sufficiently processed) minerals was relaxed in January 2017, subject to certain conditions, 
including the fulfilment of domestic market obligation (DMO) requirements. Mineral and coal sales 
benchmark prices, and the floor price for the royalty calculation, remain in place. Coal is subject to 
special pricing, DMO and transport/insurance (implementation pending) requirements, to support the 
state-owned electricity company and national shipping and insurance industries.  
 
Questions:  
 
4. What are the specific conditions required for establishing and operating a foreign -owned mining 
company in Indonesia?   
 
Answer:  
 
Currently, the institution that regulates the establishment and operation of mining comp any is the 
Ministry of Energy and Mineral Resources.  
 WT/TPR/M/401/Add.1  
 
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  5. Please share the impact on the industry of the export ban on unprocessed minerals. Please also 
cite the circumstances leading to the lifting of the export ban.   
 
Answer:  
 
Indonesia needs to reinstate t hat the raw material export ban considering the exhaustiveness of that 
product and the environmental impact that can be caused by over -mining of those materials. Therefore, 
Indonesia imposes certain mitigation approaches in order to have a sustainable and good mining 
practices in accordance to Indonesia's interest in protecting land and environment. Indonesia will 
continuously review its policy to adjust with the later technologies applied by the mining sector which 
are friendly to the environment that supp ort Indonesia 's need in protecting land and environment.  
 
Para 28 (Page 14)  
 
Indonesia remains dependent on imports of hydrocarbons and electricity to cover its energy 
consumption needs. Policy objectives include achieving security in the domestic energy supply by 
reducing gasoline dependency and increasing the use of renewable energy sources. Most oil and gas 
production is carried out by international contractors under production -sharing contracts (PSCs); in 
2017, a new form of PSC, based on the gr oss production split, replaced the cost -recovery scheme in 
place since 2008. The state -owned limited liability oil and gas company expanded its scope to include 
gas, renewables and upstream operations, both within Indonesia and abroad. FDI participation in  oil 
and gas upstream activities is subject to limitations. Quantitative export restrictions based on DMO 
requirements for oil and gas continue to apply. LCRs on procurement for oil and gas projects were 
raised. Significant changes to the fuel subsidy poli cy, allowing for considerable reduction in the entire 
energy subsidy bill, were made; at present, subsidies keep retail prices for three fuels below world 
market level: gasoline (distribution costs compensation); diesel (fixed subsidy); and kerosene (fixed  
price).  
 
Questions:  
6. How does Indonesia 's importation of electricity affect energy costs among consumers? How does 
this affect the business conditions for foreign direct investment in the country?  
 
Answer:  
 
Indonesia has a target to distribute electricity to all of its regions with the target of 35.000 Mega Watts. 
Considering the gap of production and consumption of electricity, Indonesia at present still focus in the 
development of non -renewable source of power generation. However, Indonesia re mains open for future 
investment of renewable source of energy if the production price reaches the economics of scale that in 
line with Indonesia 's "affordable energy price" for general consumption.  
 
7. Aside from keeping retail prices for three fuels below w orld market level, please explain the impact 
of the fuel subsidy on the industry.   
 
Answer:  
 
The measure is meant for generally subsidize fuel that are accessible for public consumption. It does 
not have a specific impact on the Industry activity.  
 
8. Indone sia is a top exporter of coal. How will this impact on the country 's policy objectives in terms 
of increasing use of renewable energy sources?   
 
Answer:  
 
Considering the gap of production and consumption of electricity , Currently, Indonesia is still focusing 
in the development of non -renewable source of power generation. However, Indonesia remains open 
for future investment of renewable source of energy if the production price reaches the economics of 
scale that in line with Indonesia 's "affordable en ergy price" for general consumption.  
 WT/TPR/M/401/Add.1  
 
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  Box 1.1 (Page 20)  
A third package amounting to IDR 405.1 trillion was announced on 31 March 2020. Under it, corporate 
income tax would be reduced by 3 percentage points to 22% over 2020 -21 and to 20% as from 2022. 
In addition, IDR 70 trillion would be used for tax incentives and SMEs support. Furthermore, the package 
includes IDR 110 trillion for social protection (including food assistance and electricity discounts and 
waivers for 10 million households).  
 
Question:  
9. There was a reference to the corporate income tax that would be reduced by 3 percentage points 
to 22% over 2020 -2021 and to 20% starting 2022. Could Indonesia confirm that this is already 
implemented? Kindly clarify if this is part of the Omnibus Law on Job C reation or a separate 
package.   
 
Answer:  
 
The regulation for reducing corporate income tax rates is based on Law Number 2 of 2020, where the 
reduction in 2020 -2021 to be is 22% and 2022 to be is 20%. In the Job Creation Law, there is no 
regulation regarding this matter.  
 
Para 1.14 (Page 27)  
During the review period, there was limited privatization action. State involvement in the economy 
remained important, relatively unchanged, and spread over several activities (e.g. agriculture, mining , 
energy, manufacturing, finance and insurance, and transportation and storage), thus seemingly 
crowding out private investors to some extent in some sectors (Sections 3.3.5, 4.1, 4.2, 4.3 and 4.4). 
SOEs, largely concentrated in relatively capital -intensiv e sectors such as manufacturing, finance and 
insurance, and transportation and storage, remain a key element in the Government's infrastructure 
and development strategy.36 They continue to receive subsidies, and hold de jure or de facto monopoly 
or quasi -monopoly positions in activities where competition would be seemingly viable, such as energy 
generation and distribution, seaports, toll roads, and imports of agricultural inputs and cereal grains.37 
Efforts to increase the use of PPPs were apparently under taken in the transportation, toll roads and 
bridges, water supply and sanitation, telecommunications, power, and oil and gas sectors; between 
2013 and 2019, 68 projects were tendered.  
 
Questions:  
10. What are the advantages and disadvantages of having crucial sectors of the economy such as 
manufacturing, finance and insurance, and transportation and storage managed by state -owned 
enterprises? What are the implications of SOEs to industry innovation and public services?  
 
Answer:  
 
Manufacture, Finance, Insurance , and Transportation are the special sectors that can give social impact 
and social welfare to public. By having full control and authorities over those four sectors, SOEs are 
capable to accelerate the social equity and development of primary public facili ty in this country. By 
letting SOEs optimize manufacture and transportation sector, we can build and establish connectivity in 
this country faster because private corporation won't do it unless there is certainty in return.  
 
Insurance and Finance owned by  SOEs will help micro industry (UMKM) to scale up by give them KUR, 
etc. Insurance and Finance owned by SOEs are taking a big part to make sure micro industry can survive 
in this unstable situation.  
 
11. Please explain the role of competition in the operation of crucial sectors in the economy and in 
Indonesia 's development strategy.  
 
Answer:  
 
Competition in the operation of crucial economic sectors could help create a better innovation and 
transformation in the business models. This competition will encourage efficiency in each company to WT/TPR/M/401/Add.1  
 
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  survive and also create a good competitive environment in the business, so that company could decide 
the best way to encourage sustainable economic growth.  
 
II.  TRADE AND INVESTMENT REGIMES  
 
Para 2.15 (Page 41)  
Sixteen Economic Policy Packages (EPPs) were introduced between 2015 and 2018, and are still ongoing 
(Table 2.2). Each has a different implementation phase, and they focus on improving the investment 
climate, increasing competitiveness, and accelerating infrastruc ture development. The EPPs are 
operated by a Task Force of Economic Policy Implementation Acceleration and Effectiveness, consisting 
of four working groups and one support unit, led by the Coordinating Ministry for Economic Affairs 
(Table  2.3).21 The objec tives of the EPPs include: regulatory harmonization; simplifying the 
bureaucratic process; and ensuring legal compliance. Deregulation policies are directed at reducing 
duplication, harmonizing regulations, and eliminating inconsistencies. The EPPs include  revisions and/or 
cancelations of 225 regulations, of which 54 are at the Presidential level and 171 at the ministerial level. 
According to the authorities, the trade -related EPP actions include: provision of import and export data 
to ministries and instit utions through the Indonesia National Single Window (INSW); availability of single 
stakeholder information data within the Indonesia Single Risk Management framework at the INSW 
portal; expansion of the application of import and export declaration forms, a nd their integration into 
the INSW portal to implement the INSW nationally in 21 Customs and Excise Inspection and Service 
Offices, to improve user efficiency and supervision effectiveness.  
 
Question:  
12. What are the quantifiable outcomes of the 16 Economic P olicy Packages implemented by the 
Indonesian government from 2015 -2018?  
 
Answer:  
 
There are several achievements in implementing 16 National Economic Policy Packages:  
a. Improving business climate in Indonesia with increasing ranking ease of doing business f rom 14 in 
2014 to 73 in 2020 and also IMD competitiveness from 42 in 2015 to 32 in 2019.  
b. Developing 15 Special Economic Zone (SEZ) where 11 is operated and 4 is still developing (as of 
17 February 2020).  
c. Developing 138 bonded logistic centre in 182 locatio ns. 
 
Para 2.18 (Page 43)  
During the review period, the law -making regulatory framework remained broadly unchanged. The EPPs 
(Section 2.2.2) are key to the regulatory reform process, and remain important for the development of 
a stronger rule of law and an effective rules -based system. According to the authorities, the Government 
also initiated the simplification of regulations, through the preparation of omnibus laws aimed at 
improving the investment environment, boosting competitiveness in MSMEs, and ge nerating 
employment. As at June 2020, the Government was preparing to submit two draft laws to Parliament, 
namely the Omnibus Law on Job Creation, intended to facilitate business to create more jobs, and the 
Omnibus Law on Taxation; originally, these Laws were to be submitted to Parliament in January 2020 
and implemented in April 2020. The Omnibus Law on Job Creation would directly affect trade policy, 
and cover 11 clusters, including: implementation of licensing endeavours; investment regulations; 
labour r eform; empowerment and protection of MSMEs; ease of doing business; research and innovation 
support; government administration; penalties; land acquisition; ease of government investments and 
projects; and the Special Economic Zone (SEZ) (Sections 2.4.4 an d 3.2.4.2.4). As at 12 December 2019, 
82 laws and 1,194 articles were identified to be harmonized through the Omnibus Law on Job Creation. 
The Omnibus Law on Taxation is to encompass six clusters: investment funding; territorial tax system; 
personal taxati on; taxpayer compliance; business equity; and tax facilitation. It is to consist of 
28 articles, and amend the following seven laws: Income Tax Law (last amended in 2008); VAT Law 
(last amended in 2001); Taxation General Provisions and Procedures Law (last  amended in 2009); 
Customs Law (last amended in 2006); Excise Law (last amended in 2009); Regional Tax and Levies Law 
(last amended in 2009); and Regional Government Law (last amended in 2008).   
 WT/TPR/M/401/Add.1  
 
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  Questions:  
13. It was mentioned that as of June 2020, the Govern ment was preparing to submit two draft laws 
to Parliament, namely the Omnibus Law on Job Creation and the Omnibus Law on Taxation. Recent 
reports suggest that these two laws were merged and signed into law by President Joko Widodo 
on 02 November 2020. Coul d Indonesia confirm these reports?  
 
Answer:  
 
President Republic of Indonesia is officially signed the Omnibus Law Bill No. 11/2020 on 2 November 
2020. Initially, government proposed two separate Omnibus Law, the job creation Omnibus Law focusing 
on the ea se of doing business and the taxation Omnibus Law. However, the taxation Omnibus Law is 
already included in Law no.2/2020.  
 
14. We understand that since the Omnibus Law on Job Creation is a complex law, it will not 
automatically be implemented as it requires several presidential and government regulations to 
arrange and regulate all necessary details of its implementation. These regulations are designed 
and imposed within a three -month period after enactment. Could Indonesia provide a timeline of 
the implementation of the merged law including if it is on track on the issuance of presidential 
regulations?  
 
Answer:  
 
Implementing regulation of Omnibus Law is under discussion and targeted finish in February 2021.  
 
Para 2.20 (Page 43)  
Indonesia attaches im portance to making laws more transparent and readily accessible. Most laws are 
still published in the Bahasa Indonesia language only (some are translated into English, depending on 
the need or interest) in the Official Gazette; they are available to all in dividuals and institutions, both in 
hard copy and online. In addition, the websites of relevant ministries and agencies contain information 
mostly in the Bahasa Indonesia language. Indonesia ranked 88th out of 193 economies (97th out of 
190 in the 2012 Ind ex) in the 2020 UN E -Government Development Index.28 Since 2014, Indonesia 
has introduced an integrated management and data exchange system (MANTRA) as a Government 
Service Bus (GSB). The GSB is used by various ministries. To promote transparency and predi ctability 
in the trade regime, the Indonesia National Trade Repository is in place since 2011 (Section 3.1.1.1).  
 
Question:  
15. The report mentioned that while most laws are still published in Bahasa Indonesia, some laws are 
translated into English depending o n the need or interest. Could Indonesia clarify certain instances 
where translations are done and if there is a forthcoming policy or initiative to have the laws and 
regulations in English language?  
 
Answer:  
 
Several IP laws have been translated in Englis h and are being prepared to be posted on Directorate 
General of Intelectual Property (DGIP) website.  
 
Para 2.41 (Pages 52 -53) 
 
During the review period, Indonesia undertook efforts to liberalize and streamline its FDI regime in 
several areas, e.g. the regu latory framework, the negative investment list and the business/investment 
licensing system. The priority of phase X of the EPPs (Section 2.2.2) was to revise the negative 
investment list. As a result, in 2016, the reform came with the issuance of the new negative list (Table 
2.2 and Section 2.4.2), which lifted or eased foreign equity restrictions in key sectors and brought 
Indonesia's FDI regime closer to international and regional levels of openness. According to the OECD, 
the current framework remains f airly restrictive to foreign investors overall.58 Despite an overall 
improvement, Indonesia's international ranking in terms of ease of doing business remains relatively 
low compared to several neighbouring countries.  
 WT/TPR/M/401/Add.1  
 
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  Question:  
16. Indonesia made efforts to l iberalize and streamline its FDI regime through regulatory framework 
and the negative investment list. While the report is based on the review period, could Indonesia 
provide more information on the transition to Investment Priority List as stipulated in t he Omnibus 
Law on Job Creation?   
 
Answer:  
 
Article 77 of Law 11 of 2020 or Omnibus Law on Job Creation which amended Article 12 Law No. 25 of 
2007 on Investment stated that: "All of business acitivities are opened to investment, except for 
business activties which are declared closed for investment or can only be carried out by Central 
Government. Further provisions on the capital requirements shall be stipulated in Presidential 
Regulation". This Presidential Regulation will revise the curre nt Presidential Regulation No. 66 of 2014 
on Negative Investment List into "Investment Priority List" which will list out: 1) priority business 
activities which are granted with fiscal incentives, 2) business activities which are granted with non fiscal 
incentives, 3) business activies which are allocated for MSME and partnership (excluding share 
ownership) between big enterprises & MSME, 4) business activities which are opened with conditions. 
The Presidential Regulation on Priority Investment List is curr ently in the drafting process to get inputs 
from related stakeholders (Ministries, Agencies and public) under the coordination of Coordinating 
Ministry of Economic Affairs. It is expected to be issued by early next year.  
 
III. TRADE POLICIES AND PRACTICES BY MEASURE  
 
Para 3.16 -3.18 (Pages 64 -65) 
The import of goods remains subject to the verification of documentation by the DGCE, and physical 
inspection in certain specific circumstances. Documentation requirements remain unchanged, and 
include an import dec laration form, a pro -forma invoice, a commercial invoice, a bill of lading, and a 
packing list. A certificate of origin (e.g. for tariff preferences, prohibitions, and restrictions measures 
(lartas)), an insurance certificate, and other relevant documents may be required for certain items 
subject to certain conditions. Additional certificates are often required by technical agencies with an 
interest in the content and conformity of the imported product, such as food, pharmaceuticals, seeds, 
or chemicals (Se ctions 3.1.5.2 and 3.3.2).  
 
The Indonesia National Single Window (INSW) (www.insw.go.id), in place since 2007, continues to allow 
for, inter alia, the single submission of customs documents and applications for trade licences, the 
payment of duties, synchr onized processing, and a final decision by Customs. Since 31 May 2018, the 
use of the INSW system is compulsory under PR No. 44/2018 on Indonesia National Single Window.9 
This Regulation expanded the INSW coverage to quarantine and port documents (sea and air).10 It now 
integrates all customs documents, quarantine documents, licensing documents, port/airport documents, 
and other documents relating to export and/or import to be submitted by service users to relevant 
ministries/institutions. In 2018, a Single  Stakeholder Information database was set up on the INSW's 
website. It consists of more than 300 business identities categorized as low risk. The Regulation 
established a National Single Window Institution (LNSW) under the MoF as the INSW -operating agency 
replacing the PP -INSW (Pengelola Portal -Indonesia National Single Window). In terms of logistics, the 
INSW facilitates the smooth flow of goods by integrating ship loading and unloading systems through 
Inaportnet (an electronic portal facilitating the exch ange of data and information on port services) and 
accelerating the process of shipping goods.11 As at November 2018, the INSW was implemented in 
75 major ports, accounting for 95% of import/export activities, and involving more than 
67,000  importers and e xporters.12 As at 31 December 2019, the INSW was operational at 93 customs 
offices, including five main seaports and airports (eight in 2012). The authorities indicated that, in 2019, 
around 97% (90% in 2012) of trade entered or left Indonesia through thes e 93 customs entry points. 
According to the authorities, between 2007 and June 2020, 10.3 million import declarations and 
16.3 million export declarations were processed electronically through the INSW system.  
 
At the regional level, Indonesia participates  in the ASEAN Single Window (ASW), a regional initiative 
agreed in 2005 that connects and integrates the national single windows of ASEAN member States 
(AMSs); it became operational in early 2020. The ASW's objective is to expedite cargo clearance and 
prom ote ASEAN economic integration by enabling the electronic exchange of border trade -related WT/TPR/M/401/Add.1  
 
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  documents among AMSs. On 1 January 2018, the ASW Live Operation began in five countries, namely 
Indonesia, Malaysia, Singapore, Thailand and Viet Nam; by 30 December  2019, all AMSs (Brunei 
Darussalam, Cambodia, Indonesia, Lao PDR, Malaysia, Myanmar, the Philippines, Singapore, Thailand, 
and Viet Nam) had joined the Operation, where the granting of preferential tariff treatment is based on 
the Electronic Certificate of  Origin (ASEAN Trade in Goods Agreement (ATIGA) e -Form D) exchanged 
through the ASW. The exchange of more documents through the ASW in the near future is currently 
under preparation. The following documents are likely to be able to be submitted through the  ASW in 
the future, subject to the readiness of each AMS: ASEAN Customs Declaration Document, electronic 
Phytosanitary Certificate, electronic Animal Health Certificate, and electronic Food Safety Certificate.  
 
Question:  
17. May we clarify with Indonesia what is the basis of requiring a Certificate of Free Sale issued by 
the Embassy of Indonesia, for example, in Manila.   
 
Answer:  
 
The Certificate of Free Sale (CFS) is the certificate required by the importing country to certify that the 
products are already sold in the country of origin. The requirement for CFS, can be found on Article 11.4 
Head of BPOM Regulation No. 27/2017.  
 
Para 3.37 (Page 74)  
During the review period, Indonesia's simple average applied MFN tariff rate rose from 7.8% in 2012 to 
10.1% in 2020 (Table 3.2), mainly due to an increase in duty rates on a number of products and the 
splitting of tariff lines (e.g. transport equipment (HS Section 17)) resulting from the tariff nomenclature 
change. Indonesia amended its Customs Tariff to, in ter alia, introduce HS2017 changes 
(Section  3.1.3.1). Products that benefited from tariff reductions include auxiliary plant for use with 
boilers (HS84.04). Products that were subject to tariff increases include coffee and tea (HS09), 
preparations of meat and fish (HS Chapter 16), sugar confectionary not containing cocoa (HS17.04), 
leather articles (HS Chapter 42), wood articles (HS Chapter 44), cotton (HS Chapter 52), textiles and 
clothing, carpets and other textile coverings (HS57.02), worn clothing (HS 6 3.09), footwear (HS Chapter 
64), iron and steel (HS Chapter 72), and motor vehicles (HS87.02 and 87.03). Furthermore, the applied 
tariff rates for a range of goods that reportedly compete with locally manufactured products, including 
electronic products, e lectrical and non -electrical milling machines, chemicals, cosmetics, medicines, 
wine and spirits, iron wire and wire nails, and some agricultural products including milk products, animal 
and vegetable oils, fruit juices, coffee and tea, were also raised.   As indicated by the World Bank, while 
Southeast Asian countries have exhibited an overall trend toward tariff reduction, Indonesia has hiked 
import tariff rates further, increasing the cost and/or reducing the quality of productive inputs and 
consumer good s; empirical evidence has shown that increasing tariff rates tends to reduce the 
productivity and output of firms in protected sectors, as diminished import competition weakens 
incentives to invest and increase efficiency.  
 
Question:  
18. What are the objective s for Indonesia 's tariff rate increases? Have these been achieved? Have 
studies been conducted on the impact to the economy?  
 
Answer:  
 
Changes in tariff posts are due to HS transposition, in the form of merging, splitting and/or creating 
new tariff posts. HS transposition by Indonesia has been done in line with the WCO amendments and 
the WTO guidelines.  
 
Para 3.50 (Page 82)  
 
According to the Government, to prevent the market from being flooded with mass -made or counterfeit 
products from overseas mark ets, and also to level the playing field for local manufacturers who import 
materials or goods in bulk and thus have to pay duties and taxes regardless of the import value, 
Indonesia reduced drastically the de minimis value for the import duty exemption fo r consignment, 
including e -commerce traded goods, on a B2C basis, in place since November 2016. This f.o.b. threshold WT/TPR/M/401/Add.1  
 
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  value passed from USD 50 to USD 100 in November 2016, to USD 75 in October 2018, and to USD 3 in 
January 2020.    
 
Question:  
19. On consignment /e-commerce goods de minimis exemption and imposition, the Philippines have 
taken note that Indonesia has reduced its de minimis value to USD 3 in January 2020. While we 
understand that the intent is to prevent the market from being flooded with mass -made or 
counterfeit products, can Indonesia clarify the basis of imposing USD 3 for the de minimis 
threshold? Have studies been conducted on the impact to the economy?  
 
Answer:  
 
In 2019, there was significant increase of e -commerce consignment notes (CN) more t han 200% from 
the previous year (19 million CN in 2018 and 58 million CN in 2019).  
 
In the process of making the new policy for the de minimis threshold, we already conducted the research 
which found that several countries have implemented de minimis value  less than USD 10 such as 
Switzerland (USD 5), Liberia (USD 2), Ghana (USD 2) compared to countries which do not implement 
the de minimis value at all such as Costarica, Bangladesh, El Savador and Paraguay.  
 
Indonesiai is still not yet conducting any rese arch on the proportion of goods affected by the decrease 
in de minimis  threshold from USD 75 to USD 3 in value terms.  
 
Para 3.53 (Page 83)  
Harbour dues remain based on the classification of the port (i.e. main port, or Class I, II, III, IV and V) 
rather th an the tonnage or volume for the use of the approach channel to a port; according to the 
authorities, service charges must be linked to capital return, whereas the World Bank considers that 
they do not reflect cost recovery.81 According to data from the au thorities, the dues for loading and 
unloading in Makassar and Balikpapan Container Terminals are the same. However, harbour dues for 
overseas routes seem higher than for domestic routes (Section 4.4.5). According to World Bank data, 
in 2016, harbour dues a t a main port were estimated to be 16 times higher for international routes than 
for domestic routes; furthermore, in 2015, Lift -on Lift -off charges were estimated at 195.6% (20 cubic 
foot, full container with quayside crane, Pontianak port, Pelindo II) hi gher for international routes than 
for domestic routes. The authorities indicated that this difference is due to the fact that international 
route vessels have bigger capacity than domestic, therefore they need more equipment and services; 
in addition, it depends on exchange rate fluctuations between the rupiah and the US dollar.  
 
Question:  
20. What are the advantages and disadvantages of retaining the classification of port, instead of 
tonnage or volume for the use of approach channel to a port, in determining  harbour dues?  
 
Answer:  
 
Regarding the advantages and disadvantages of retaining a classification of the port in determining 
harbour dues, Indonesia is currently in the studying stages.  
 
Para 3.54 (Page 83)  
In addition to customs duties, imports remain subject to the withholding tax, VAT, the luxury -goods 
sales tax, and excise tax (Section 3.3.1). Following a product coverage expansion in 2015, to curb 
imports, reduce the current -account deficit, and stem rupiah depreciation, in September 2018, 
Indonesia raised the withholding tax rates for certain imported (and exported) goods, covering 
1,147  products, including from: 2.5% to 7.5% for 719 consumer goods (e.g. audio -visual equipment, 
and textiles); 2.5% to 7.2% for 218 daily necessities (e.g. shamp oos, and cosmetics); and 7.5% to 
10% on 210 luxury goods. The withholding tax policy allows the Government to collect more tax revenue 
in advance but can result in tax overpayment by importers.  
 WT/TPR/M/401/Add.1  
 
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  Questions:  
21. What are the effects of tax overpayment by importers caused by the government 's advanced 
collection of withholding tax on imports?  
 
Answer:  
 
Witholding tax on import (Article 22 Income Tax) is an income tax credit. If there is an overpayment of 
income tax, taxpayer can request for a refund when re porting the annual tax return.  
 
22. How effective has been the increase in withholding tax rates on curbing imports, reducing the 
current account deficit, and stemming depreciation of the rupiah? Please explain the effects for 
each objective.   
 
Answer:  
 
Right now, there are no research yet about effectiveness in withholding tax rates on curbing imports, 
reducing the current account deficit, and stemming depreciation of the rupiah. However, during 2018, 
short after the implementation of The Minister of Finance Regulation Number 100/2018 about Changes 
of the Minister of Finance Regulation Number 34/2017, according to the report of Central Bureau of 
Statistics, there was a decline in Indonesia yearly current account deficit in 2019 compared to 2018 
which showed us  a decline of negative current account deficit up to 62,87% from a total of 
USD -8,7 billion to USD -3,2 billion. However, the data could not tell us whether it was impacted by the 
PMK 100/2018 or the other regulations.  
 
Para 3.65 (Page 86)  
The Indonesia A nti-Dumping Committee (KADI) remains responsible for investigations in relation to 
anti-dumping and countervailing measures, and the Indonesian Safeguards Committee (KPPI) for 
investigations in relation to safeguard measures; both committees are under the supervision of, and 
accountable to, the Minister of Trade. Their websites (http://kadi.kemendag.go.id/ and 
http://kppi.kemendag.go.id/) provide information on investigations, reviews, and measures adopted. 
The Directorate of Trade Defence and the Bureau of  Trade Advocacy within the MoT are charged with 
defending Indonesian exporters facing remedy actions by foreign governments.  
 
Question:  
23. Please elaborate on the specific assistance that the Directorate of Trade Defense and the Bureau 
of Trade Advocacy provi de to Indonesian exporters?  
 
Answer:  
 
Advocacy in the form of consultation, assistance, and other legal actions in conducting agreements and 
policies related to international trade and international trade disputes. Activities focus on government 
stakeholders and not directly on Indonesian exporters.  
 
 
Para 3.67 (Page 86)  
During the period under review, recourse to anti -dumping action dropped slightly but measures in force 
rose. Between 2013 and 2019 (end -June), Indonesia initiated 40 anti -dumping investigations (46 in 
2006-12) involving hot -rolled (steel) coil (China, Belarus, India, Kazakhstan, Republic of Korea, 
Malaysia, Russian Federation, Thailand, and Chinese Taipei), cold -rolled (steel) coil/sheet (China, Japan, 
Chinese Taipei, Republic of K orea, and Viet Nam), hot -rolled (steel) plate (China, Singapore, and 
Ukraine), tinplate (steel) (China, Republic of Korea, and Chinese Taipei), I and H section (China), 
ammonium nitrate and polyethylene terephthalate (China, Republic of Korea, and Malaysia ), wheat flour 
(India, Sri Lanka, and Turkey), cavendish bananas (the Philippines), spin drawn yarn (China), polyester 
staple fibre (China, India, and Chinese Taipei), and biaxially oriented polypropylene (Thailand, and 
Viet Nam).100 As at end -June 2019, 2 7 anti -dumping measures were in force on nine products, mainly 
hot-rolled coil (7 cases), biaxially oriented polypropylene (5), hot -rolled plate (3), tinplate coil/sheet (3) 
and polyester staple fibre (3); 20 measures were in place in June 2013.101 Action affected mostly 
products originating in Asia (23, China (8), Thailand (4), India (3), Chinese Taipei (3), and Malaysia (2)) WT/TPR/M/401/Add.1  
 
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  and, to a lesser extent, Commonwealth of Independent States countries (Belarus, Kazakhstan, 
Russian  Federation, and Ukraine). All fi nal measures consisted of definitive duties. Eighteen measures 
were reviewed and, in most cases, extended at least once for periods of up to six years.   
 
Questions:  
24. In cases when there are no request/s from the concerned domestic industry, are anti -dumping  
(AD) measures still subjected to interim/sunset review by the investigating authorities? If yes, 
what is the percentage of interim/sunset reviews conducted motu proprio by said authorities?  
 
Answer:  
 
The sunset review investigation is conducted by reques t of the domestic industry. While the interim 
review may conduct ex officio based on the national interest.  
 
25. Do investigating authorities conduct on -site investigation/s in the country of export for purposes 
of determining the likelihood of continuation or  recurrence of dumping? What factors are primarily 
considered in determining same? Is there an available report summarizing the results of all AD 
investigations (e.g., treatment of de minimis margins, recalculation of AD duties) how and where 
can it be acc essed?  
 
Answer:  
 
In accordance to the WTO Anti -Dumping Agreement, on -site verification is not mandatory. The policy of 
sunset review is complied to WTO Anti -Dumping Agreement whereas Indonesia does not apply 
recalculation of Anti Dumping duties or de -minimis margin or negligible import.  
 
Para 3.69 and 3.70 (Pages 86 -87) 
GR No. 34 provides for "national interest consideration", whereby the MoT reviews KPPI 
recommendations to ensure that the envisaged action is in the national interest. The industry may The 
industry may submit a structural adjustment plan to the KPPI as part of the investigation process; during 
the review period, the KPPI annually monitored and evaluated these plans but no further information on 
specific cases was available with the authoriti es.  
 
During the period under review, recourse to safeguard action dropped but Indonesia remained one of 
the most frequent initiators of investigations and resulting actions. Between 2013 and 2019, it initiated 
11 safeguard investigations (20 in 2006 -12), and imposed 9 measures (11 in 2006 -12); virtually all 
measures were in the form of customs duty (one quota) (Table 3.5). As at February 2020, 
one provisional and four (of which one extended) definitive safeguard measures were in place, and 
two investigations were underway (Table 3.5). At its previous Review, Indonesia's relatively frequent 
recourse to safeguards was attributed to greater industry awareness of the availability of trade remedies 
to counter the negative effects of trade liberalizat ion. 
 
Questions:  
26. What parameters are considered in the monitoring of implementation of structural adjustment 
plan? Has there been an instance that a safeguard measure (SG) was terminated due to 
non-compliance with the adjustment plan?  
 
Answer:  
 
According to the provisions of WTO Agreement on Safeguards Article 7.2, to assess structural 
adjustment plan from domestic industries, the competent authorities of the importing Member have 
determined, in conformity with the procedures set out Article 2, 3 , 4, and 5 Agreement on Safeguards, 
that the safeguard measure continues to be necessary to prevent or remedy serious injury and that 
there is evidence that the industry is adjusting. Indonesia retains these obligations and there is no 
termination under mo nitoring of Indonesian Authority.  
 
27. Does the extension of an SG measure include automatic recalculation of same? Please elaborate.  
 WT/TPR/M/401/Add.1  
 
- 224 - 
 
  Answer:  
 
There is no obligation to recalculate the safeguard measure according to Article 7.2 Agreement on 
Safeguards, howeve r the Member applying the extension of safeguard measures shall progressively 
liberalize it at regular intervals during the period of application under Article 7.4 Agreement on 
Safeguards.  
 
28. Do investigating authorities conduct evaluation of the effectivene ss of SG actions of the domestic 
industry after the expiration of the imposition of the measures? Please elaborate, e.g., the 
parameters that are considered and the procedures involved.  
 
Answer:  
 
Indonesia has never conducted an analysis of the effectivene ss of safeguard measures imposition after 
the end of the imposition of safeguard measures. However, Indonesia has conducted an analysis of the 
effectiveness of Safeguard measures imposition during the investigation of the extension of safeguard 
measures wi th the aim of knowing the condition of the domestic industry whether an extension of 
Safeguard measures imposition is required or not.  
 
Table 3.5 (Page 87 -88) 
 
Products  Legal basis  Date/period  Stage/Type of action  
Fructose syrup   
13 November 2019  Process of investigation  
 
Question:  
29. On fructose syrup where it was reflected that it is still in the process of investigation, could 
Indonesia provide an update on this safeguard measure and confirm that it is not in process of 
investigation already?   
 
Answer:  
 
The updated information follows the Imposition of safeguard measure on the imports of Fructose Syrup 
under Minister of Finance Regulation No. 126/PMK.010/2020 and WTO Document 
G/SG/N/8/IDN/26/Suppl.1, G/SG/N/10/IDN/26/Suppl.1, G/SG/N/11 /IDN/23 and they have been 
circulated on 22 September 2020 and take into effect on 17 September 2020  
 
Para 3.106 (Page 108)  
Excise tax rates on tobacco products are set out in MoF Regulation No. 146/PMK.010/2017 concerning 
Excise Tariffs on Tobacco Products, as amended in 2018 and 2019. The cigarette tax on domestically 
produced cigarettes is divided into tiers, based on the type of cigarette, the volume of cigarette 
production by the domestic factory, and retail sale price limits. The tariff for imp orted tobacco products 
does not consider cigarette factory production capacity and is equivalent to the highest excise tax rate 
applied to domestic production (Table 3.16). As noted by the World Bank, these tiers aim to 
accommodate small -scale cigarette fi rms, especially hand -rolled clove cigarette firms, which account for 
over half of the total factories in the tobacco industry and employ a significant share of workers in 
tobacco manufacturing, most of whom are women.  
 
Question:  
30. Under Paragraph 1.17 "Indon esia continued to integrate gender perspectives into its economic 
policies, xxx. " Was the tariff on imported tobacco products an example of such economic policies 
that integrate gender perspectives? In what other ways and in what other sectors does Indones ia 
use its trade policies, including tariffs and non -tariff measures, to better promote gender equality?  
 
Answer:  
 
Excise is a state levy imposed on goods which have the characteristics or characteristics stipulated by 
law (UU), namely: (1) their consumpti on needs to be controlled; (2) its distribution needs to be WT/TPR/M/401/Add.1  
 
- 225 - 
 
  monitored; (3) its use has a negative impact and (4) it is necessary to impose state levies for justice 
and balance  
 
Para 3.74 (Page 89)  
Registration and documentation requirements and development s for exports, in general, remain similar 
to those for imports (Section 3.1.1.1). Exporters must be registered with the DGCE prior to engaging in 
any export business; they may also benefit from AEO status and the Customs MITA programme 
(Section  3.1.1.1); i n value terms, MITA companies accounted for 0.07% (2013) to 2.08% (2019) of 
total exports, while the shares of AEO firms ranged from 8.3% (2013) to 50.2% (2018) and 19.3% 
(2019). Various export permits and authorizations are required. For certain items, ve rification by a 
surveyor is also needed, specifically for goods whose export is prohibited or restricted (Sections 3.1.1.1 
and 3.2.3.2, and Table 3.8). For all commercial exports, exporters must submit a declaration to the 
DGCE, together with a commercial invoice, airway bill or bill of lading, packing list, letter of insurance, 
and export licence whenever required. The timeframe for submission of these documents is any time 
from seven days prior to departure to just before the departure of the export. Expo rt documentation 
(excluding licences) may be provided electronically through the INSW (Section 3.1.1.1), as long as the 
goods are leaving through one of the customs points where the system is operational. Export duties 
(Section 3.2.2) must be settled at th e time documentation is submitted.  
 
Questions:   
31. What factors contribute to the differences in timeframe for the submission of export documents 
to DGCE?  
32. How did the implementation of the Customs MITA programme and being an AEO contributed to 
the goal of fac ilitating trade?   
 
Answer for question No. 31 and 32:  
 
Apart from the process of service and export supervision by DGCE, factors that affect the difference in 
the delivery time of export notification documents, including:  
1. Readiness of exported goods;  
2. The length of time required for stuffing/loading of goods to the transport facility;  
3. Distance of Exporter warehouse to Customs Area; and  
4. Closing time (the time when the exporter is no longer able to load the container into the container 
terminal or the time li mit for the container to enter the container terminal).  
 
Benefits of MITA and AEO Programme:  
1. For economic operators, accelerating the process of releasing goods with a minimum of document 
research and / or physical inspection, therefore it is expected to reduce logistics costs.  
2. MITA and AEO companies will be recognized worldwide as a safe and sec ure company and as a 
compliant business partner in international trade.  
3. For DGCE, improving the effectiveness of monitoring, service, and efficiency of resource allocation.  
4. For the country, it is recognized as a trust worthy country in international trad e because it has 
implemented safety and security in the logistics supply chain, thus it will have a positive impact on 
the national economy.  
 
Para 3.76 (Page 90)  
According to World Bank Doing Business data, in 2019, exporting a shipment of goods (auto part s) 
required an average of 61 hours for documentary compliance and 56 hours for border compliance, at a 
cost of USD 139 and USD 211, respectively, as well as six documents. In 2013, exporting a shipment 
required four documents, took 17 days, and cost USD 61 5. According to the WEF, in 2015, the most 
problematic factors for exporting were: high cost or delays caused by domestic and/or international 
transportation; technical requirements and standards abroad; identifying potential markets and buyers; 
inappropri ate production technology and skills; difficulties in meeting quality/quantity requirements of 
buyers; corruption at foreign borders; access to imported inputs at competitive prices; and access to 
trade finance.  
 
33. In general, how did Indonesia fare in 2019 in terms of export procedures standards according to 
World Bank Doing Business data (in terms of time, costs, and documents needed)?  WT/TPR/M/401/Add.1  
 
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  Answer:  
 
In 2019 the rank of Indonesia for trading across border criteria is 116 with score 67.27. In this criterion, 
time to export was reported at 61,3 hours for documentary compliance and 53.3 hours for border 
compliance. While for cost to export, it was reported at USD 138.8 for documentary compliance and 
USD 253.7 for border compliance.  
 
According to the World Bank report  of Doing Business 2020 which was published on 24th October 2019, 
Indonesia's trading across borders ranking was in 116th position, relatively the same as the previous 
year's ranking. However, there was a slight improvement in the score for trading across borders. This 
improvement was mainly driven by the border compliance on the cost to export which fell from 
USD 253.7 to USD 211.  
 
Para 3.77 (Page 90)  
During the review period, Indonesia continued to use export taxes as a policy tool for, inter alia, tax 
revenue collection (1.5% of total tax revenue in 2013, 0.4% in 2018), fostering the development of 
downstream processing facilities, ensuring domestic supply of intermediate inputs at below world market 
prices, raising domestic value -added, and reducing the rate of depletion of non -renewable mining 
resources. The regulatory framework was revised in 2014, and was last updated in 2018 to enforce 
changes involving the types and level of rates, including their implementation criteria (Table 3.6). The 
product cove rage encompassing palm oil, crude palm oil and its derivative products, leather and wood, 
raw cocoa, and mineral ore products remained relatively unchanged. Export tax revenue from palm oil 
is directed to a state -administered fund, the Crude Palm Oil (CPO)  Fund, that is used to finance biofuel 
subsidies and rejuvenate plantations (Section 4.2.2.3). Exports of certain coal, metal mineral and 
non-metal mineral commodities have been subject to a 1.5% withholding tax since 2015 (Sections 3.1.4 
and 3.3.1.1.1.1).  
 
Question:  
34.  Are there accountability measures and mechanisms in place to ensure transparency of fund 
allocation derived from export tax revenue from palm oil for the purposes of financing biofuel 
subsidies and rejuvenating plantations?  
 
Answer:  
 
The business process on the collection and allocation of oil palm plantation funds is regulated under 
Presidential Regulation (PR) No. 61/2015 jo. PR No. 66/2018 on Collection and Use of Palm Oil Plantation 
Funds. To ensure the accountability and transpare ncy in the implementation of this regulation, business 
entities and farmers association are also involved in the steering committee meeting. Audit also 
conducted by The Audit Board of the Republic of Indonesia and the Government Internal Supervisory 
Appara tus in every financial year.  
 
Para 3.79 (Page 90)  
In addition to reasons under Law No. 7/2014 (see above, and Sections 2.2.3, 3.1.5.1 and 3.1.7), export 
prohibitions remain in place for: the protection of intellectual property rights; and the implementatio n 
of international treaties or agreements. Similar to imports, direct exports to Israel continue to be 
hampered by the lack of bilateral diplomatic relations (Section 3.1.5.1). No prohibition is in place for 
exports to Israel; however, the majority of expo rts to this market are carried out through a third country.  
 
Questions:  
35.  What are the major challenges of exporting most products to Israel through a third -party country?  
 
Answer:  
 
None. There is business to business direct trade and the government does not regulate trade with Israel.  
 
36. Please cite examples on how export prohibitions are implemented to protect IPRs.    
 
Answer:  WT/TPR/M/401/Add.1  
 
- 227 - 
 
  The Government of Indonesia prohibits the exportation of collector goods/antique goods in means of 
zoology, bo tany, mineralogy, anatomy, history etc. which have special meaning in terms of history, 
knowledge, education, religion and/or have cultural value for strengthening nation 's identity. This is 
aimed to protect social, cultural and moral of the people as well  as to protect IPR.  
 
Para 3.97 (Page 103)  
The legislative basis for income tax remains the Income Tax Law No. 7 of 1983 as amended by Law 
No. 36 of 2008.Taxation policies are also regulated by Government Regulation in Lieu of Law No. 1 of 
2020, which was i ssued to help manage the impact of the COVID -19 pandemic. The standard corporate 
tax rate is 22% (reduced from 25% as from the tax year 2020). It will be reduced further to 20% from 
2022. Certain reductions apply to MSMEs (Section 2.4.4) and public compani es achieving a minimum 
listing requirement of 40% on the Indonesia Stock Exchange. Depreciation and amortization deductions 
are provided. A withholding tax is raised on many import items and some exports (Sections 3.1.4 and 
3.2.2). Personal income tax rate s range from 5% to 30%, depending on the amount of annual taxable 
income.  
 
Questions:   
37. What is the basis of reducing standard corporate tax from the current rate of 22% to 20% in 
2022?  
 
Answer:  
 
The basis of calculation of the reduced tariff is similar to Article 17 of Income Tax Act. The corporate 
income tax reduction is part of the fiscal policy aimed to encourage economic growth in the long term 
by increasing the economic flow through the Forei gn Direct Investment (FDI). The reduction is also to 
provide a fair tax tariff compared to all ASEAN countries.  
 
Based on Government Regulation in Lieu of Law Number 1/2020 regarding Policies of State Finance and 
Financial System Stability to Mitigate Cov id-19 Pandemic and/or Dealing with Threats Endangering 
National Economy and/or Financial System Stability has been enacted as Law Number 2 Year 2020, the 
policy is to reduce corporate tax rates from 25% to 22% for the year 2020 and 2021 and further 
reducti on to 20% in 2022 was taken to mitigate the declining of domestic economic activities due to 
impact of Covid -19.  
 
At the beginning of 2020 and early cases of Covid -19 found in Indonesia, Indonesia 's macroeconomic 
indicators were predicted to deteriorate. Economic growth was projected to contract between 5,7 -3%, 
unemployment number to rise from 2.92 to 5.23 million people and poverty figure to increase from 
1.89 to 4.86 million in 2020 compared to figures in 2019. Reducing corporate tax rate by 3% in 2020 
and 2021 was aimed to prevent these impacts by encouraging investment and employment by business. 
Further reduction to 20% in 2022 was directed as an anticipation measures to recover national economic 
condition after pandemic. Meanwhile, the selection of ne w corporate tax rate at 22% and 20% was 
based on study conducted by Fiscal Policy Agency.  
 
38. How substantial are the tax reductions provided to MSMEs compared to large business 
enterprises?   
 
Answer:  
 
The government eases the tax for MSMEs to help them leverage their business from micro to small, 
small to medium, and medium to large business. The 0.5 percent tariff is subject to Taxpayers (WP) 
with gross turnover up to 4.8 billion rupiah per year. The durations of imposition of this tariff are applied 
for 7 years for Personal taxpayer, while for Agency taxpayer in the form of Cooperative, Commanditaire 
Vennootschap (CV) for 4 years, and for Agency taxpayer in the form of Limited Liability Company for 
3 years. With those time periods, MSMEs are expected to  expand their business and make investment. 
After the expiry of the periods, the MSMEs business people can implement the rights and tax obligations 
in general in accordance with the provisions of the Income Tax Law.  
 
Para 3.119 (Page 112)  WT/TPR/M/401/Add.1  
 
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  As at early May 2 020, Indonesia had a total of 10,858 Indonesian National Standards (NSI), nearly 18% 
of which were harmonized with international standards. The sectors where standards are most present 
are technology of materials, and agriculture and food technology (Table  3.18). As indicated by the 
authorities, almost all standards in the electronic, information and communication technology sectors 
are adopted from international standards (i.e. ISO, IEC and/or ITU standards), while many standards 
on agriculture and food te chnology are non -harmonized standards, due to environmental, geographical 
and cultural specificities. As at mid -2020, 6,182 enterprises were implementing NSIs, with 
6,151  products being certified.  
 
Question:  
39. Do these NSIs constitute Indonesia 's policy on non -tariff measures (NTM)? If so, given that only 
under 20% of these National Standards are harmonized with their corresponding international 
counterparts, does Indonesia have plans to harmonize a greater number of NSIs as part of 
streamlining th eir NTMs?  
 
Answer:  
 
Indonesia has annual national program on standard development. The program includes the plan to 
align national standard with international standard. Although many SNIs published before 2000 might 
not be harmonized with international st andards, however the trend for harmonization to international 
standards in recent years were increasing.  In fact, Tabel 3.19 shows that in average, over 40% of SNI 
published annually were harmonized to international standards. This is in line with the pol icy of 
increasing the proportion of harmonized SNI.  
 
Para 3.142 (Page 120)  
Packaged processed food products (imports and domestic production) for trade in retail must be 
registered with the BPOM to ensure that they comply with regulations relating to labelling 
(Section  3.3.2.5), safety, quality, and nutrition; a distribution license issued by the BPOM is also 
required. Registration involves submission to the BPOM of product information and samples for testing 
by either government laboratories or labora tories accredited by (or institutions acknowledged by) the 
National Accreditation Committee. BPOM Regulation 27/2017 sets out types of food which are not 
required to be registered; it appears to exempt processed foods packaged in bulk and sold in business -
to-business trading. Reportedly, registration requirements are one of the most difficult issues facing 
importers. Approval from the head of the BPOM is required for each imported shipment of processed 
food, raw food materials, food additives, processing ai ds, and food ingredients.    
 
Question:  
40. Could  Indonesia provide clarification on what is the reasonable period for the approval of the 
processed food registration? How long does it usually take?  
 
Answer:  
 
The said period is established by taking into account the standard of global rules.  
 
Para 3.143 (Pages 120 -121) 
MoA Regulation No. 55/2016 concerning Food Safety Control on Importation and Exportation of Fresh 
Food of Plant Origin governs food safety control system recognition, and laboratory reg istration 
requirements to import fresh foods of plant origin to Indonesia. It was notified to the WTO. It stipulates 
that fresh food of plant origin may only be imported to Indonesia from countries whose food safety 
control systems are recognized by Indone sia or countries with registered food safety testing 
laboratories. According to the authorities, changes introduced by the Regulation were to simplify import 
procedures. As at end -April 2020, 36 trading partners had been granted access to the Indonesian 
market. The Centre for Plant Quarantine and Biological Safety undertakes risk analysis of plant pests 
and plant products to be imported into Indonesia for the first time. A list of these risk assessments is 
publicly available. As indicated by the authorities , the time to complete a risk assessment generally 
ranges from between six months and two years, depending on the completeness of the required 
documentation submitted by the exporting country. No fees are charged.  
 WT/TPR/M/401/Add.1  
 
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  Question:  
41. Indonesia informed the Phil ippines in bilateral instances that the Ministry of Agriculture issued 
Ministerial Decree No.1329/2019 to accommodate three (3) Philippines ' food safety testing 
laboratories. The Philippines again applied for more accredited laboratories, but Indonesia 
suggested to add the new  laboratories  in 2021.  In a technical meeting between the Philippines 
and Indonesia back in December 2018,  Indonesia committed to facilitate the registration of 
additional  laboratories  if the Philippines has applied and complied with t he requirements. Could 
Indonesia clarify what is the basis of its proposal for Philippines to apply additional food safety 
testing laboratories in 2021 instead of this year and previous years?   
 
Answer:  
 
The registration of food safety is in force for 3 ye ars. Philippines is gotten laboratory registration in 
2019-2021 and can be extended six months before it is expired.  
 
Para 3.145 (Page 121)  
Risk assessment procedures for the import of live animals are based on Ministerial Decree No. 41 of 
2019; they are i mplemented by the Directorate General of Livestock and Animal Health within the MoA. 
Only approved meat and poultry establishments, and those exporting animal -derived products (i.e. dairy 
and eggs), may import products into Indonesia. Since 2017, fees have  been levied for the inspection of 
animal products under GR No. 35/2016 (previously, the costs were borne by the Indonesian 
Government); fees charged depend on the number of establishments to be inspected, the number of 
auditors, and the number of audit da ys. According to the authorities, they are usually more -or-less 
USD 10,000, depending on the distance the auditors must travel, and air -fare and accommodation costs.  
 
Question:  
42. Could Indonesia  provide further clarification on what are the changes to th e rules on import 
recommendations for horticultural products over the review period?  
 
Answer:  
 
The changes to the rules on import recommendations for horticultural products over the review period 
has clarified in the regulation of the Minister of Agriculture No. 39/2019 and regulation of the Minister 
of Agriculture No. 2/2020  
 
Para. 3.209 (Page 138)  
Article 20 of the Patent Law maintains the controversial provision that the patent holder is obliged to 
make products or use processes in Indonesia; th is must support transfer of technology, the absorption 
of investment, and/or creation of employment.    
 
Para. 3.211, bullet no. 3 (Page 139)  
MLHR Regulation No. 30 of 2019 administers provisions on: procedures for granting patent compulsory 
licences; terms  and conditions to grant a compulsory licence; and forms to apply for a compulsory 
licence. This replaces Regulation No. 39 of 2018 and the controversial MLHR Regulation No. 15 of 2018 
on the Penalties for Non -working or Implementing Patents in Indonesia; under the latter, a patent holder 
was required to manufacture products or implement the process in Indonesia, and failure to do so would 
result in the deletion of the patent. As noted by the authorities, Article 40 of Regulation No. 30 of 2019 
addresses th is concern, by stating that, in the event that the patent holder has not been able to 
implement his patent in Indonesia, he may suspend the manufacture of the patented products or the 
use of the patented processes in Indonesia. According to an external sou rce, this Regulation marks a 
positive development in establishing procedures for compulsory licences, and addressing a number of 
concerns included in the previous Regulation.  
 
Question:  
43. Under Article 20 of the Patent Law, are all patent holders, whethe r residents or nonresidents, 
obliged to establish local manufacturing of patented products in Indonesia and does this serve as 
a pre -requisite for the grant of a patent? How does MLHR Regulation No. 30 of 2019 affect the 
provisions of Article 20 of the Pat ent Law? For non -resident patent holders with local production WT/TPR/M/401/Add.1  
 
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  facilities in Indonesia, is technology transfer done through formal technology transfer agreements 
and does the government provide any additional incentives to encourage such arrangements?  
 
Answer: 
 
MLHR regulation No. 30 of 2019 regulates about compulsory licences for the purpose of public interest. 
The transfer technology is regulated based on international best practice.  
 
Para. 3.210 (Page 138)  
Key changes introduced by the Patent Law are…(iv ) exceptions to criminal and civil lawsuits for parallel 
imports and the Bolar provision, as well as the extension of the Bolar provision from two to 
five years…(xi) new provisions on requiring that inventions related to genetic resources and/or derived 
from traditional knowledge clearly specify the origin of the genetic resource and/or traditional knowledge 
in the patent…  
 
Para. 3.4.4 (Page 14) – Government Report  
…For the Triplets Issue, Indonesia supports the amendment of Article 29 of TRIPS Ag reement to provide 
legal obligation to incorporate Mandatory Disclosure Requirement in the patent application. Such legal 
obligation will prevent misappropriation of GRTKF and will ensure Prior Informed Consent and Access 
Benefit Sharing. At the domestic l evel, Indonesia made some progress in developing a database to 
prevent claims/misappropriation of GRTKF. Additionally, progress also came in the form of government 
regulation concerning access to genetic resources and the fair and equitable sharing of bene fit arising 
from their utilization, namely Regulation of the Minister of Environment and Forestry No. 2/2018.  
 
Questions:  
44. Does the extension of the Bolar provision from two to five years correspond to the length of time 
needed to obtain regulatory appr oval? On this vein, could Indonesia provide information on 
regulatory registration/approval timelines for drugs and medical devices?  
 
Answer:  
 
Registration is handled by Directorate of registration assessment.  
 
Question:  
45. With regard to the GRTK provisions under the new Patent Law, how does the IP office ensure 
enforcement of the requirement to specify source of GRTK -related patent applications? Article 26, 
paragraphs 2 and 3 of the Patent Law states that information on GRTK shall be stipulated by  an 
official institution recognized by the government and that distribution of yields/access to the use 
of GRTK shall be in accordance with statutory regulations and international agreements. Could 
Indonesia give more information on how these provisions ar e operationalized – e.g., which 
designated official institutions are collating a database of GRTK against which patent applications 
are checked?   How does the Indonesian government utilize the information gathered from the 
GRTK database? Could Indonesia gi ve examples of successful benefit sharing or access scheme 
implemented for GRTK -related patents?   Is the disclosure requirement of GRTK only applicable on 
patent applications? If yes, why?   
 
Answer:  
 
Several ministries/agencies are related to implement GRT K provisions. Government extend best possible 
effort to implement benefit sharing.  
 
Para. 3.212 (Pages 139 -140) 
Provisions on compulsory licensing are set out in Part Three of the Patent Law and in MLHR Regulation 
No. 30 of 2019. As set out in Article 33 o f the Regulation, the Minister of Law and Human Rights may 
grant a compulsory licence to produce, import or export pharmaceutical products having patents in 
Indonesia, for the purpose of curing human disease. Compulsory licences to implement a patent may 
be granted by ministerial decree if: (i) the patent holder does not manufacture the patented product or 
use the patented process within 36 months of being granted a patent; (ii) the patent is implemented in WT/TPR/M/401/Add.1  
 
- 231 - 
 
  a form or manner that is detrimental to the intere sts of society; or (iii) the patent is the result of the 
improvement of a prior patent that cannot be implemented without using another patented invention. 
Compulsory licence applicants must show they can and will use the patents, and they have previously 
tried to obtain a licence. To be granted, a compulsory licence must be economically feasible, and must 
benefit the general public. Limits may be placed on the compulsory licence, to avoid harming the public 
interest. There are special provisions for semico nductors, apparently reflecting concerns from the 
smartphone supplier industry. After granting the compulsory licence, royalties must be paid to the patent 
owner. The main changes introduced by the Patent Law and Regulation No. 30/2019 compared to the 
previous Regulation are that: (i) there is more detail about how and why a decision to grant a compulsory 
licence is made; and (ii) there is a requirement of public benefit in Indonesia. Indonesia did not initiate 
new compulsory licensing measures over the rev iew period. As noted in the previous Review, Indonesia 
had used compulsory licensing in 2007 and in 2012 to permit government use of pharmaceutical patents 
in order to produce certain antiviral and antiretroviral drugs. Since 2014, the Government has charg ed 
PT. Kimia Farma with producing antiretroviral medicines, such as Efavirenz and Tenofovir.  
 
Question:  
46. Does Indonesia intend to use the Compulsory Licensing or Special Compulsory Licensing 
mechanism in response to the COVID -19 pandemic? Could Indonesi a provide more information 
on any changes to compulsory licensing regulations under MLHR Regulation No. 30 of 2019 based 
on Presidential Regulation No. 77/2020 regarding Procedures of Patent Implementation by the 
Government, which took effect on 8 July 202 0? 
 
Answer:  
 
President Regulation 77/2020 is regulated only for government use.  
 
Para 3. 214 (Page 140)  
The number of patents applied for and granted increased over the review period (Chart 3.7). As noted 
by WIPO, they are overwhelmingly filed by, and gran ted to, non -residents.  
 
Question:   
47. What does the overwhelmingly huge parity in patent applications by non -residents, over residents, 
imply about Indonesia 's scientific and technological industries?  
 
Answer:  
 
Patent application in Indonesia is conducted by online process and it is available in English and Bahasa 
Indonesia.  
 
Para. 3.220 (Pages 141 -142) 
No changes to provisions on GIs were introduced by the new Law. Concerns were expressed that GI 
provisions raise "questions about the effect of ne w GI registrations on pre -existing trademark rights and 
the ability to use common food names". As explained by the authorities, under new provisions introduced 
in MLHR Regulation No. 12 of 2019 (see below), Indonesia allows coexistence between pre -existing  
trademarks and GIs. They also confirmed that GIs cannot be registered using a generic name.    
 
[Footnote 313: The authorities noted that, while Law No. 20 of 2016 states that if a sign has been 
registered as a trademark, the minister can cancel and cross off the registration of the mark for all or 
part of the same type of goods after a period of two years from the date the mark is registered as a GI, 
an additional clause in Regulation No. 12 of 2019 explains that the cancellation and deletion of trademark 
registration as referred to in the Law may only be made for trademarks registered for less than 
five years, unless approval is obtained from the owner of the GI.]  
 
Questions:  
48. Under Indonesia 's GI system, the grandfather rule to allow for continued co -existence of 
pre-existing trademarks and GIs apply to marks that have been registered for five years or more 
from the time of GI registration. In the case of trademarks registered for less than five years from 
the time of GI registration, co -existence is po ssible if the owner of the GI gives its approval. Is WT/TPR/M/401/Add.1  
 
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  this understanding correct? Can holders of pre -existing trademark rights oppose the registration 
of a GI product, including the protection of foreign GIs under Indonesia 's Free Trade Agreements? 
Could In donesia share its experience in terms of benefits obtained by local producers upon 
successful GI registration?  
 
Answer:  
 
Registration of GI is registered by the community, while trademark is registered by company. The benefit 
of GI is the branding of produ ct such as Kopi Gayo.  
 
49. It was mentioned that Indonesia 's GI provision allows the use of common food names. Does this 
mean that GIs in Indonesia are limited to agricultural or processed agricultural products only?   
 
Answer:  
 
GIs in Indonesia are not limited to agricultural or processed agricultural products only, but certain 
geographical area producing goods and/or products which constitute: natural resources; handicraft; or 
industrial products (as regulated on Law No. 20 of 2016 on Marks and Geograph ical Indication).  
 
Below are some examples of registered geographical indication which are not agricultural products: 
Jepara craft furniture, silver crafts of Celuk Gianyar Bali, Mandar silk woven, Sikka ikat weaving, 
Tanimbar ikat weaving, Alor ikat weaving, Alor songket wo ven, and woven of Doyo Benuaq Tanjung 
Isuy Jempang West Kutai. The link of registered Gis in Indonesia: http://ig.dgip.go.id/ .  
 
Para. 3.228, bullet no. 2 (Page 144)  
MLHR Regulation No. 36/2018 on Procedures on Applica tion and Issuance of Operational Permit and 
Evaluation of Collective Management Organization (CMOs) implements provisions under Article 93 of 
Law No. 28/2018 (replacing MLHR Regulation No. 29/2014). It contains provisions on: procedures on 
the application for, and issuance of, operational permits of CMOs; duties and functions of CMOs; the 
composition of the National CMO commission; royalty collection and distribution; evaluation, financial 
reports and audits; and revocation of operational permits. As indica ted by the authorities, the regulatory 
material is the same, but there are new elements, such as the inclusion of government representatives 
as National Collective Management Organization (NCMO) commissioners. Additionally, to enhance 
transparency, account ability and good governance, the NCMO is audited annually, and the results are 
announced in the mass media.  
 
Question:  
50. What are the functions and powers of the NCMO and its commissioners? Is the IP Office or the 
NCMO involved in resolving disputes betw een CMOs and its members? Are there government 
guidelines on this matter?  
 
Answer:  
 
National Collective Management Organization is responsible to coordinate with CMOs to ensure economic 
rights of creators, including settling disputes among CMOs and its mem bers. 
 
Para. 3.234 (Pages 145 -146) 
Additionally, in 2018, the DGIP's Directorate of Investigation and Dispute Settlement commenced the 
pre-emptive programme of IP, by issuing recommendations to the Ministry of Communication and 
Informatics to block access to websites infringing IP. From January 2018 to end -February 2020, it 
recommended closing 604 websites . 
 
Question:  
51. Who has the power to decide and implement blocking access to websites infringing IP? Does the 
Ministry of Communication automatically app rove and block websites recommended by DGIP? 
How does the DGIP address infringing websites/platforms located or managed outside of 
Indonesia 's territory?  
 WT/TPR/M/401/Add.1  
 
- 233 - 
 
  Answer:  
 
Ministry of Communication and Informatics has the authority to block websites infringing IP.  
 
IV. TRADE POLICIES BY SECTOR  
 
Para 4.3 (Page 147)  
Manufacturing remains an important primary production -dependent activity; the Making Indonesia 4.0 
policy seeks global competitiveness in five target industries. Tariff protection for manufacturing 
increased considerably. Several non -tariff measures continue to protect domestic producers, ensure 
supplies for domestic processing, and promote their exports. Tax and non -tax incentives, including tax 
allowances, tax holidays and subsidized credit, remain in place. The garment, textiles and footwear 
industry benefited from increased tariff protection, and an additional export performance -linked tax 
incentive. Similarly, tariff protection to the automotive sector was raised considerably, and i ncentives 
were introduced to facilitate consumers' shift to alternative -fuel vehicles and the establishment of an 
electric vehicle (EV) industry.  
 
Question:  
52. Could Indonesia share the impact of these policies in terms of increasing investments and 
produ ction in the EV industry?  
 
Answer:  
 
Indonesia is committed to reduce CO2 emission. The ultimate goals of the policy are to improve the 
environment (CO2 and Pollutant reduction), enhance science & technology for CASE era, human capital 
(Research & Developm ent), and capacity building of Domestic EV Maker. This policy also treats equally 
both domestic and foreign investors.  
 
There have been several industries engaged in the EV sector, and have grown since the last few years, 
which is production in electric bu s (4 wheeled) and several in production of two -wheeled electric 
motorcycles. in terms of foreign investment, there is already interest from Hyundai to invest in eV 
production in the near future.  
 
53. In terms of industry players —is it increasing since the industry started? By how much? How many 
are foreign players vis -a vis local players?  
 
Answer:  
 
Currently, there is a local company that manufactures 4 -wheel eV and 15 local companies that 
manufacture 2 & 3 -wheel eV.  
 
54. Also, how long does Indonesia plan to impose high level of tariff protection on automotive?  
 
Answer:  
 
Indonesia has no plans to change the tariff rate (MFN) of motorized vehicles. Indonesia cannot speculate 
on possible future measures or policy changes.  
 
Para 4.7 (Page 148)  
The agricultural sector consists of large plantations (both state -owned and private) and smallholder 
production. Large plantations tend to focus on export commodities (palm oil and rubber), while 
smallholders produce rice, soybeans, corn, fruit and vegetab les. Between 2013 and 2019, the number 
of large plantations increased from 1,601 to 2,165 for oil palm and from 315 to 329 for natural rubber, 
whereas those of sugar decreased from 97 to 86. Large plantations cultivated export crops on about 
15% of the tot al agricultural area, but the majority of farmers (68%) were smallholders operating on 
less than 1 ha. Given the prevalence of several climatic zones, agriculture remains highly diversified. 
During the review period, achievements included the installation of new irrigation infrastructure and 
other farm techniques, as well as the expansion and rehabilitation of agricultural land. Increasing rates WT/TPR/M/401/Add.1  
 
- 234 - 
 
  of fertilizer use boosted production, leading to high values of food production per hectare and 
productivity per working day, highlighting a shift to more intensive crop farming. Exports of commercial 
crops considered to have market value and demand benefit from government support (Section 4.1.4) 
and attract private domestic and foreign investments. However, the valu e of annual crop production 
remains low, and only 10% of smallholders practice a high level of mechanization. As at 2015, the 
smallholders' main development constraints included a high share of income spent on food and 
agricultural inputs which, in turn, l imited their potential to sustainably re -invest; credit limitations; weak 
infrastructure; declining farm sizes due to demographic pressures; and missing linkages between input 
and output markets.  
 
Question:  
55. Can Indonesia provide further information on the government support being provided to its 
agriculture exports?  
 
Answer:  
 
Indonesia would like to reaffirm that Indonesia has never provided export subsidies in the agricultural 
sector.  
 
Para 4.10 (Page 149)  
Since 2008, when the price of food commodities  peaked, Indonesia has emphasized food security, self -
sufficiency and food sovereignty; the authorities indicated that they maintain a commitment for 90% of 
the supply of staple food and protein sources to be produced domestically. Under the Food Law of 20 12, 
priority was given to domestic production of staple foods, with self -sufficiency targets for rice, maize, 
soybeans, sugar, and beef. The programmes to achieve this target have not changed since 2014 
(Section  4.1.2). In 2015, it was reported that the dates by which self -sufficiency was to be achieved 
had been revised, to 2017 for rice, maize and soybeans and to 2019 for beef and sugar. According to 
the authorities, as at June 2020, rice production had fulfilled the domestic consumption, whereas corn, 
soybean, sugar and beef self -sufficiencies had not been reached. The effectiveness of the rice 
programme, in particular, has been questioned, as promoting production through price support also 
results in high prices and exacerbates undernourishment, while o ther elements of the programme do 
not compensate for these effects. Furthermore, despite rising trends in food production and availability, 
and in household incomes, access to food remains unequal, and food insecurity remains a problem for 
some households.  During the review period, the authorities developed policies to address this issue 
(Section 4.1.2).  
 
Question:  
56. Can Indonesia elaborate on the policies it has developed to address food insecurity and food 
access inequality?  
 
Answer:  
 
Indonesia in addressin g food insecurity and food access inequality through the Food Security Vulnerable 
Atlas, Indonesian Food Barn, and Toko Tani Indonesia (TTI) program to cut the food/middle -man chain.  
 
Para 4.20 (Page 152)  
Under Law No. 19 of 2013 on the Protection and Empo werment of Farmers, requirements for agricultural 
activities to benefit from financial assistance were set out. The Law, inter alia, covers agricultural 
infrastructure and facilities needed to develop a farm enterprise; protects farmers from price 
fluctuat ions, high -cost economic practices, and crop failures; improves the capacity of farmers and 
farmers' institutions in running a productive, advanced, modern and sustainable farming enterprise; and 
develops an agricultural financing institution that serves t he interests of farming enterprises. In addition, 
it provides for marketing guarantees for agricultural products to farmers operating farming enterprises 
under government programmes; land and tax relief for productive agricultural lands cultivated on an 
ongoing basis; and realization of agricultural market support facilities. The authorities indicated that, to 
comply with WTO -relevant provisions, they were drafting a revision of the Law; as at June 2020, it was 
in the consultation process in Parliament.  
 WT/TPR/M/401/Add.1  
 
- 235 - 
 
  Question:  
57. Can Indonesia provide details on the provisions considered to be amended to comply with WTO 
commitments?  
 
Answer:  
 
The provisions considered to comply with WTO commitments through enacted UU Cipta Kerja regarding 
Food Law.  
 
Para 4.23 (Page 153)  
VPTI inspection requirements continued to affect some agricultural products, including rice, sugar, 
horticultural products, food and beverages, and tobacco (Section 3.1.1.1). Restrictive import licensing 
requirements for animals and animal products, fisher y products, feed corn, rice, sugar, horticultural 
products, cloves (until 2015), alcoholic beverages, and forestry products, inter alia, aimed at promoting 
self-sufficiency remain in place; and WTO Members raised concerns thereon (Sections 2.3.1.1 and 3.1. 5, 
and Tables 2.4 and A3.4). It seems that an import quota of 100,000 tonnes of water buffalo meat was 
issued for 2019, and BULOG has used 80% of it; no data on this measure was available from the 
authorities. A "5:1 feeder to breeder" requirement, which o bliges importers to import one breeder for 
every five feeder cattle, came into effect in October 2016. Wheat flour was temporarily subject to 
safeguard action in 2014. Although Indonesia has reserved the right to use the special agricultural 
safeguard for 12 tariff lines (all dairy products), it was not invoked for any product in the period 2013 -18 
(the most recent year of notifications) (Sections 2.3.1.3 and 3.1.6.2).  
 
Question:  
58. What is the status of Indonesia 's self -sufficiency program and are there any p lans on easing 
restrictive import licensing requirements of the abovementioned agricultural products?   
 
Answer:  
 
VPTI is a provision regarding the implementation of verification inspection activities intended to facilitate 
trade in order to accelerate and  smoothen the flow of goods for import including agricultural product. 
There is no correlation with regard of self -sufficiency program.  
 
Indonesia has succeeded in achieving rice self -sufficiency in 2019. This self -sufficiency program is in 
line with the objectives of the SDGs 2030. Indonesia continues to achieve the target of food self -
sufficiency for the coming period. It is certain that this program will not be associated with import 
restrictions and trade barriers in the global market.  
 
Para 4.72 (Pag e 164)  
Subsidized diesel continues to be provided, but in a more focused manner. Since 2015, access to this 
subsidy was limited to boats of less than 30 GT.79 In response to attempts by larger boat owners to 
circumvent this change, the MMAF underwent a re -measuring and re -certifying exercise, thereby 
eliminating access to subsidies for boats that are in reality greater than 30 GT. According to state -owned 
PT Pertamina oil and natural gas mining company (Section 4.2.2.1.1) data, 1.2 million ki lolitres (kL) of 
subsidized fuel was provided to fishers in 2016, down 19.46% from 1.49 million kL in 2015. No data on 
the budgetary outlays supporting this subsidy were available from the authorities. The authorities has 
considered the removal of all fuel  subsidies for fishers, but this has not yet taken place.  
 
Question:  
59. Could Indonesia clarify what is meant by "Subsidized diesel continues to be provided, but in a 
more focused manner "? What is the meaning of "a more focused manner "? What is the coverage 
of the application?  
 
Answer:  
 
Subsidy is provided in using a principle of more focused and appropriate manner in accordance to the 
State responsibility to protect and empower the small fishers. With that principle, fuel subsidy is only 
provided to small sca le fishers with vessel size under 30 GT whose lives heavily dependent on fisheries.  WT/TPR/M/401/Add.1  
 
- 236 - 
 
  Para 4.104 (Page 174)  
Export taxes and restrictions to support the development of domestic downstream processing facilities 
were continued. Export taxes, currently ranging from zero to 60% (unprocessed minerals), continue to 
be levied on mineral ores, depending on their stage of processing. They were first put in place in 2017, 
and were changed in 2018 (Section 3.2.2, and Table 3.6); lower rates benefit mining compan ies 
committed to developing processing or refining facilities. A ban on exports of unprocessed (or 
not-sufficiently processed) minerals was imposed in January 2014 but was relaxed on 11 January 2017 
(the end of the three -year transition period) for a perio d of five years (i.e. 2022), allowing mining 
companies to continue exporting semi -processed products provided that they pay export taxes under 
the applicable laws and regulations on the minimum domestic processing and refining requirements. 
Reportedly, the  validity of certain documents necessary to export low -concentration nickel ore were to 
expire on 31  December 2019, thereby effectively reinstating the total export prohibition of nickel ore as 
of 1 January 2020 (Section 3.2.3.2). In the context of the WTO  dispute settlement mechanism, on 
22 November 2019, the European Union requested consultations with Indonesia regarding various 
measures concerning certain raw materials necessary for the production of stainless steel, including 
restrictions (Sections 2.3. 1.1, 3.1.3.6 and 3.2.3.2) on exports of nickel.  
 
Question:  
60. What are the future plans of Indonesia on the export of unprocessed minerals?   
 
Answer:  
 
The existing policy still has not changed. Minerals to be exported still need to be processed.  
 
61. What is the  effect of this border measure to its domestic economy?  
 
Answer:  
 
The investment increases and has a multiplier effect to the regions (boost local economy).  
 
62. Please share Indonesia 's plans in developing its copper industry especially 
manufactured/processed copper products, given that Indonesia adopted such export ban to 
promote processing.  
 
Answer:  
 
Indonesia does not ban export, but there are minimum processing standards. Regarding copper 
industry, it can be copper wire and electroni c components.  
 
Para 4.188 (Page 197)  
 
Under PR No. 55/2019, a minimum local content of 40% for two -wheeled or three -wheeled EVs 
manufactured between 2019 and 2023 is required. The local content requirement is to be raised to a 
minimum of 60% if the EVs are  produced between 2024 and 2025, and to a minimum of 80% if they 
are manufactured after 2026. At the same time, four -wheeled or more EVs produced between 2019 and 
2021 are required to have a minimum local content of 35%, a minimum of 40% if they are manufa ctured 
during the period 2022 -23, a minimum of 60% in 2024 -29, and a minimum of 80% from 2030 onwards.  
 
Question:  
63. Could Indonesia provide the basis of the local content requirement and a brief explanation of its 
e-vehicle program?  
 
Answer:  
 
Indonesia is committed to reducing CO2 emission. The ultimate goals of the policy are to improve the 
environment (CO2 and Pollutant reduction), enhance science & technology for CASE era, human capital 
(Research & Development), and capacity building of Dome stic EV Maker. This policy also treats equally 
both domestic and foreign investors.  WT/TPR/M/401/Add.1  
 
- 237 - 
 
  Para 4.221 (Page 209)  
As at May 2020, there were seven cellular operators, compared with eight in 2013; this is due to the 
merger between PT Axis Telecom and PT XL Axiata T bk in 2013. The market is dominated by PT 
Telekomunikasi, a largely domestically owned company (Table 4.13). There has been foreign investment 
in five cellular operators, with foreign equity shares ranging from 35% to nearly 67%. The State has an 
ownership  share in PT Indosat Tbk (20.71%) and PT XL Axiata, Tbk (33.64%).  
 
Question:  
64. We note that there have been foreign investments in five cellular operators in Indonesia, please 
provide information on the incentives offered by the Government to foreign investo rs on 
telecommunications?   Are there also subsidies/ incentives provided to those investing in less 
developed areas/ last mile connectivity?  
 
Answer:  
 
Indonesia implemented no subsidy programs for both foreign and domestic cellular operators, including 
for those who served in less developed/last mile connectivity area.  
 
PART TWO: QUESTIONS REGARDING GOVERNMENT REPORT  
 
II. ECONOMIC DEVELOPMENT  
 
Para. 2.11 (Page 7)  
In general, state budget realization – i.e. its use relative to its declared commitments – showed good 
performance in the years between 2014 to June 2019. In terms of state income and revenue including 
grants, there incurred a positive trend until the end of June 2019. In the 2019 state budget, revenues 
and grants were estimated at  IDR 2,165.11 trillion, an increase of 11.39% from the 2018 figure. As of 
June 2019, income from state revenues and grants reached IDR 898.76 trillion or 41.51% of the 2019 
estimate or an increase by 7.84% compared to that in   the previous year. Tax revenu e, which reached 
IDR 688.94 trillion or 76.65% of total state revenue and grants, contributed to the increase.  
 
Question:  
65. Could Indonesia provide updates on its recent policy on taxation of digital economy?  
 
Answer:  
 
A new measure introduces new mechanism in the collection of VAT on imported digital products and 
services. Instead of reverse charge mechanism, VAT would be collected and remitted by the appointed 
VAT collectors. To be appointed as a VAT collector, the digital product provider or sell er must have total 
transaction values with Indonesian consumers that exceed a certain amount (IDR 600 ,000,000 annually 
or IDR 50 ,000,000 monthly), or the amount of online traffic that exceed a certain volume 
(12,000 annually or 1 ,000 monthly). However, for  digital product providers who met the requirements 
but not appointed yet, are invited to inform the DGT to be appointed.  
 
The current VAT rate is 10 percent and it is applied at the point -of-sale against the taxable amount 
which is the amount paid by the customer before any taxes. The VAT Collector must issue a VAT receipt, 
which is the regular commercial receipt, showing the amount of payment and detailing the VAT 
component of the sale.  
 
The new measure also obliges the appointed VAT Collectors to remit V AT collected monthly, and file the 
tax return quarterly.  
 
III. INTERNATIONAL TRADE ENGAGEMENT  
 
Para. 3.1 (Page 10)  
Between 2018 and 2019, Indonesia was active in initiating, conducting, and completing negotiations 
with various trade partners. The results of these negotiations became amongst the references in 
formulating various international economic and trade cooperat ion, as well as references in increasing WT/TPR/M/401/Add.1  
 
- 238 - 
 
  engagement in various regional and multilateral cooperations. The utilization of the results of the 
negotiations that have been implemented, is reflected in the 2015 -2019 NMTDP (National Medium -Term 
Development Plan ). 
 
Question:  
66. Indonesia mentioned that Indonesia -Korea CEPA is now on its ratification and signing stage. Could 
Indonesia clarify and provide updates on this as recent report suggests that the said FTA is still 
due for signing this November 2020?  
 
Answer:  
 
Indonesia and South Korea agreed to sign the IK -CEPA in mid -December 2020. The ratification process 
will begin after the agreement is signed.  
 
Para 3.19 (Page 13)  
Through the CoA -RS, Indonesia has completed its agricultural notifications from 2012 to 201 8. Indonesia 
has also fulfilled its obligation to answer the Annual Questionnaire on Export Competition as mandated 
by the Ministerial Decision on Export Competition at the 10th WTO Ministerial Conference. Indonesia is 
currently at the finalization stage t o implement the said mandate on eliminating its export subsidy 
entitlement.  
 
67. What is Indonesia 's schedule of dismantling export subsidy? What will be the foreseen effects of 
eliminating export subsidies on the domestic and world market and how does Indones ia plan on 
addressing these effects?  
 
Answer:  
 
Regarding the modification of schedules pursuant to the Nairobi Ministerial Decision, Indonesia has 
submitted the draft modifications to Schedule XXI that are necessary to eliminate its export subsidy 
entitlements, as circulated in the document G/MA/TAR/RS/619 on 12 October 2020. Indonesia will not 
provide export subsidies in the future.  
 
We are aware that export subsidies would create imperfect competition. On the other hand, eliminating 
export subsidi es leads to a further increase in world market prices. To mitigate the possibility of welfare 
loss as an impact of reducing export subsidies, while still fulfilling Indonesia's commitments in the WTO, 
we will continue to strengthen coordination with relate d stakeholders.  
 
IV. TRADE AND TRADE RELATED POLICY  
 
Para 4.5 (Pages 15 -16) 
From 2015 to 2019, the import of some commodities (such as rice, corn, shallots, and chili) have reduced 
dramatically. On the other hand, agricultural export has increased by 29.7% , with total value of 
IDR 1.764 billion in 2018. Several export commodities showed significant growth, such as palm oil by 
22.5%, rubber 21.3%, coconut 14.8%, coffee 28.6%, durian 32%, mangoes teen 252.61%, banana 
706.2%, and pineapple 1.520%.  
 
Question:  
68. Can Indonesia elaborate on the reason/s why the import of above cited commodities decreased 
in the previous years? This is of particular interest since the Philippines is working on boosting its 
shallots export to Indonesia.  
 
Answer:  
 
The import decreased  in the previous years due to factors as follows: Increased domestic production, 
Customer Preference, the number of importers do not meet import requirements.  
 
PART III: OTHER QUESTIONS  
PART THREE: OTHER QUESTIONS  WT/TPR/M/401/Add.1  
 
- 239 - 
 
  Questions:  
69. On fishing, could Indonesia pro vide an update on the moratorium on issuing fishing licenses and 
the participation of foreign vessels in fishing in Indonesian waters? Philippines had three tuna 
canning factories in Bitung during the review period but ceased operations because of the 
moratorium.   
 
Answer:  
 
Moratorium of foreign fishing licenses is still in effect to this day as an effort to promote responsible 
fisheries management and prevention of Illegal, Unreported and Unregulated (IUU) Fishing in the 
fisheries management area of Republ ic of Indonesia.  
 
70. The Ministry of Trade (KEMENDAG) issued  a decree requiring foreign e -commerce firms to set up 
a representative office in  Indonesia.  The new decree will be effective in  6 months from the date 
of issuance  on 13 May 2020.  The policy will be applicable to the operators that have transactions 
with more than 1,000 consumers and/or have sent more than 1,000 packages to consumers 
in 1 year period.   According to the regulation, foreign business operators who actively bid and 
conduct electronic t rading to consumers domiciled in  Indonesia  who meet certain criteria, for 
example, the number of transactions, transaction value, number of shipping packages, and the 
number of traffic or accessors, are considered to meet physical presence in  Indonesia.  In 
conducting transactions, these business actors are obliged to assist government programmes, 
among others, prioritising trade in goods and domestic products.  They are also required to 
use Indonesian high -level domain names (.id) for Electronic Systems in t he form of internet sites 
and store data and information related to financial transactions for a minimum period of 10 years.  
 
Could Indonesia clarify how it will be implemented and how it will be more business -friendly 
especially that everything is almost done digitally?  
 
Answer:  
 
To ensure the implementation of several policies in regard to this matter work effectively, Indonesia has 
created mechanism for business entities to conduct their obligations (such as obtaining licenses and 
others through electro nic system), and Indonesia is also in the process of creating one single window 
for data collection.  
 
71. On infrastructure development, how did COVID -19 affect Indonesia 's infrastructure development 
plans? Which projects were set aside or pushed to a later da te to accommodate the infrastructure 
requirements of the pandemic?  
 
Answer:  
 
COVID -19 pandemic has caused a delay in the planning, preparation, and even construction and the 
continuity of project operation. For projects which already in the construction an d operation stage, the 
pandemic results in a delay in construction delivery, which is caused by the government policy to restrict 
social activities including logistical activities. This restriction also impacts the demand reduction in 
infrastructures which  will reduce the revenue and decrease the fiscal capacity of the business entity who 
execute the projects which rely on user charge for the investment return.  
 
Due to this condition, Indonesia has carried out strategic steps for infrastructure development  policies 
during the pandemic and its recovery by changing project implementation methods, optimizing the use 
of budgets; extension of the project implementation duration; accelerating project preparation; 
prioritizing the 2021 budget allocations (in parti cular: projects that have started implementation / MYC, 
projects that have been postponed due to cuts, projects are ready to be implemented especially those 
driving the growth of economic and tourism areas).  
 
 WT/TPR/M/401/Add.1  
 
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  RUSSIAN FEDERATION  
REPORT BY INDONESIA (WT/TPR/G/401)  
 
4 TRADE AND TRADE RELATED POLICY  
4.2 Sectoral Policies  
4.2.4 Services  
Page 18, para 4.24  
 
Consequently, with a view to support the above -mentioned strategy, efforts are made to: (1) increase 
promotion of Indonesian tourism; (2) increase the quality and quantity of exports of Tourism Services 
and Maritime Transportation Services; and (3) improve the quality and skill of Indonesian workers.   
 
Question 1:  
What measures does Indonesia undertake to support the development  strategy for services sector?  
 
Answer:  
 
Several policies and strategies were carried out by the Government of Indonesia in developing the 
services sector. The services sector provides a major role and contribution to the national economy. In 
terms of logi stics services, Indonesia strengthens the national logistics system by carrying out 
infrastructure development to connect industrial estates with transportation nodes, thus supporting 
industrial development and distribution of the goods produced. Increasin g economic value added is also 
conducted by (1) strengthening entrepreneurship and MSMEs; (2) increasing the competitiveness of 
tourism destinations and industries; and (3) improving the business climate and increasing investment. 
Those policies are also s upported by preparing skilled human resources through vocational cooperation 
involving Ministries/Institutions, educational institutions, industry, and local governments.  
 
4 TRADE AND TRADE RELATED POLICY  
4.2 Sectoral Policies  
4.2.8 Intellectual Property R ights  
Page 20, para 4.41  
 
Concerning Geographical Indication, Indonesia has issued Law No. 20/2016 on Marks and Geographical 
Indications to replace Law No. 15/2001 on Trademark, and issued Government Regulation No. 51/2007 
Number 51 of 2007 on Geographical  Indication regulating the procedures for Geographical Indication 
registration to promote export. In 2015, DGIP strengthened the domestic stakeholders' understanding 
on geographical indications through various seminars in collaboration with foreign parties  and technical 
assistances for local governments. In 2018, DGIP launched an application for Geographical Indication 
registration called e -Indikasi Geografis (e -Indigeo). This public service innovation was intended to 
facilitate online registration system.   
 
Question 2:  
The Review provides the measures for the development of GI system. Is there any dynamics in filling 
applications for the GI registration after the introduction of these measures?  
 
Answer:  
 
The applicant can register the application online through the regional office of the ministry of law and 
human rights in the province. In the meantime, the online application account is only open to the 
regional office temporarily, as well as to conduct an evaluation if there are deficiencies in th e system 
that need to be fixed. Regarding the online IG application process, there are no crucial technical 
problems, it is just that in the future there is still a need to develop a system that is more user friendly 
and practical for administrators and ap plicants. Post -application features such as requests for changes 
to document descriptions and records of users of GI rights have not been facilitated in the online 
application at this time and are still being carried out manually or offline which of course  will be facilitated 
in the online IG system in the future.  
 WT/TPR/M/401/Add.1  
 
- 241 - 
 
  Application guide can be downloaded (PDF) http://ig.dgip.go.id/ .  
 
REPORT BY THE SECRETARIAT (WT/TPR/S/401)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.1 Import prohibitions and quantitative restrictions  
Page 84, para 3.57  
 
During the review period, Indonesia continued to explicitly or implicitly restrict impo rts of some products 
(e.g. carcass meat, feed corn, horticultural products, rice, cloves (until 2015), sugar, milk, salt, alcoholic 
beverages, fertilizer, and ozone -depleting substances) through licensing and state trading requirements 
(Section 3.1.5.2, an d Table A3.4). In 2018, new restrictions regarding the import of rice were 
introduced; importers of rice to be used as raw materials were not allowed to import some forms of rice 
(HS codes 1006.30.30, 1006.30.40, and 1006.30.99), as these products may only  be imported by 
state-owned companies. At the time of the previous Review, imports subject to quantitative restrictions 
on rice, sugar, animals and animal products, salt, alcoholic beverages and certain ozone -depleting 
substances were in place. The authori ties indicated that import volumes are determined annually, at 
ministerial -level coordination meetings, and take into consideration domestic production and 
consumption forecasts.   
 
Question 3:  
Could Indonesia please explain in detail how the import volumes  that will be allowed to enter the country 
are calculated?   
 
Question 4:  
How do abovementioned quantitative restrictions comply with the Article 4.2 of the Agreement on 
Agriculture and Article XI of the GATT?  
 
Answer for Question No. 3 and 4:  
 
Indonesia only regulates the procedures/requirements for imported products including for 
above -mentioned products. As mentioned by the Secretariat, the import volumes are determined by 
basic calculation: domestic production and consumption forecasts.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions, and licensing  
3.1.5.2 Import licensing  
Page 85, para. 3.63  
 
During the review period, Indonesia submitted to the WTO Committee on Import Licensing several 
notifications under Articles 5.1 to 5.4 of the Agreement on Import Licensing Procedures, and several 
notifications on Replies to Questionnaire on Import Licensing Procedures, covering the years 2011, 2012, 
2013, 2014, 2015 and 2019 . In the context of the Committee, concerns continued to be raised regularly 
by Members regarding the complexity, lack of transparency, and trade -impairing effects of Indonesia's 
import licensing requirements relating to: horticultural products; animals an d animal products; 
carcasses and/or processed meat products; milk supply and circulation; tyres; and cell phones, handheld 
computers and tablets. During the review period, Indonesia was a respondent in WTO dispute settlement 
cases, inter alia, relating to its import licensing measures on horticultural products, animals and animal 
products, and bovine meat (Section 2.3.1.1)  
 
Question 5:  
Please elaborate further on the existing and planned measures aimed to simplify the process of obtaining 
import licenses.  
 WT/TPR/M/401/Add.1  
 
- 242 - 
 
  Answer:  
 
Several simplifications of the import licensing process, among others: the licensing process and all 
import procedures can be done and accessed through inatrade.kemendag.go.id; Importers are no longer 
required to obtain Import Identification Numbe r (API) and it is replaced by Business Identity Number 
(NIB); as well as Import Approval (PI) will be issued as long as all the requirements are fulfilled and 
received completely and correctly through the INATRADE System.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.6 Anti -dumping, countervailing, and safeguard measures  
Page 86, para 3.65  
 
In paragraph 3.65 it is stated that the Indonesia Anti -Dumping Committee (KADI) remains responsible 
for investigatio ns in relation to anti -dumping and countervailing measures, and the 
http://kadi.kemendag.go.id/  website is presented. However, on numerous occasions we had problems  
with access to this website.   
 
Question 6:  
Please clarify whether the website is still maintained by the KADI? In case the website is no longer 
maintained and the information on KADI investigations and relevant materials has been moved to 
another source, please provide a link to current source. In case  http://kadi.kemendag.go.id/  is still 
maintained and the problems with access to it are purely technical, please clarify whether there is any 
alternative source where the information on KADI investigations and relevant materials can be found.  
 
Answer:  
 
The website is still under main tenance and expected to be accessible in the first quarter of 2021. All 
non-confidential documents related to investigations may be requested by sending an email to KADI 
(kadi@kemendag.go.id)  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly  Affecting Imports  
3.1.6 Anti -dumping, countervailing, and safeguard measures  
Pages 86 -87, para 3.69  
 
GR No. 34 provides for "national interest consideration", whereby the MoT reviews KPPI 
recommendations to ensure that the envisaged action is in the national interest.102 The industry may 
submit a structural adjustment plan to the KPPI as part of the investigation process; during the review 
period, the KPPI annually monitored and evaluated these plans but no further information on specific 
cases was av ailable with the authorities.   
 
Question 7:  
Is it true that it is not obligatory for Indonesian industry to submit such structural adjustment plans in 
each and every safeguard investigation and thus submission of such plans remains at the discretion of 
the Indonesian industry?  
 
Answer:  
 
Indonesia has required the domestic industry to provide structural adjustment plans in the process of 
investigation and the Indonesian Safeguard Committee (KPPI) has the authority to assess the 
adjustment pl ans from the domestic industry to maintain the fairness of the safeguard investigation.  
 
Question 8:  
Please specify the stage of the investigation when the Indonesian industry can submit its structural 
adjustment plan.   
 WT/TPR/M/401/Add.1  
 
- 243 - 
 
  Answer:  
 
In the questionnaire docum ent, there is a part that should be fulfilled by the domestic industries 
regarding structural adjustment plans. The questionnaire is sent to the domestic industry after the 
authority notifies the initiation of a safeguard investigation.  
 
Question 9:  
Do Ind onesian authorities use structural adjustment plans for the purposes of the investigation itself? 
Can the presence of the plan per se on the record of the investigation or its contents affect the decision 
of Indonesian authorities whether to impose a measu re or affect the ultimate parameters of the measure 
itself?  
 
Answer:  
 
The Indonesian Safeguards Committee (KPPI) has the authority to assess the adjustment plans from 
the domestic industry to gain the fairness of the safeguard investigation  
 
Question 10:  
Please provide a detailed explanation of whether (and if so how) do Indonesian authorities use structural 
adjustment plans after the investigation, for instance, for the purposes of monitoring the application of 
the measure or assessing the ne ed for its extension?   
 
Answer:  
 
Indonesia has required the domestic industry to provide the structural adjustment plans in the process 
of investigation and the Indonesian Safeguard Committee (KPPI) has any authority to assess the 
adjustment plans from the domestic industry to gain the fairness of the safeguard investigation. 
According to the provision of WTO Agreement on Safeguards Article 7.2, to assess the structural 
adjustment plan from the domestic industries, the competent authorities of the import ing Member have 
determined, in conformity with the procedures set out Article 2, 3, 4, and 5 Agreement on Safeguards, 
that the safeguard measure continues to be necessary to prevent or remedy serious injury and that 
there is evidence that the industry is a djusting. Indonesia retains these obligations and there is no 
termination under the monitoring of the Indonesian Authority.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.1 Measures Directly Affecting Imports  
3.1.7 Other measures affecting imports    
Page 88, para 3.73  
 
During the review period, Indonesia continued to use local content requirements (LCRs) to protect and 
develop domestic industries. Domestic legislation in several areas enforces LCRs. Law No. 7/2014 sets 
a framework for promoting the use of locally produced goods…».  
 
4 TRADE POLICIES BY SECTOR 4.3 Manufacturing  
4.3.6 Automotive  
Page 197, para 4.188  
 
Under PR No. 55/2019, a minimum local content of 40% for two -wheeled or three -wheeled EVs 
manufactured between 2019 and 2023 is required. The loc al content requirement is to be raised to a 
minimum of 60% if the EVs are produced between 2024 and 2025, and to a minimum of 80% if they 
are manufactured after 2026. At the same time, four -wheeled or more EVs produced between 2019 and 
2021 are required to  have a minimum local content of 35%, a minimum of 40% if they are manufactured 
during the period 2022 -23, a minimum of 60% in 2024 -29, and a minimum of 80% from 2030 onwards.  
 
Question 11:  
What measures does Indonesia undertake to eliminate LCRs to bring its legislation in compliance with 
the TRIMs Agreement?  
 WT/TPR/M/401/Add.1  
 
- 244 - 
 
  Answer:  
 
The Government will conduct a comprehensive review of our localization measure. The review will be 
started with the process of harmonizing a set of related regulations. We have also established the 
National Team comprising of related government authorities with  one of the main tasks is to harmonize 
the said regulation.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.2 SPS measures  
3.3.3.2.4 Live animals, meat and dairy products  
Page 121, para. 3.145  
 
Risk assessment procedures for the import of live animals are based on Ministerial Decree No. 41 of 
2019; they are implemented by the Directorate General of Livestock and Animal Health within the MoA. 
Only approved mea t and poultry establishments, and those exporting animal -derived products (i.e. dairy 
and eggs), may import products into Indonesia. Since 2017, fees have been levied for the inspection of 
animal products under GR No. 35/2016 (previously, the costs were bo rne by the Indonesian 
Government); fees charged depend on the number of establishments to be inspected, the number of 
auditors, and the number of audit days. According to the authorities, they are usually more -or-less 
USD 10,000, depending on the distance the auditors must travel, and air -fare and accommodation 
costs.   
 
Question 12:  
Procedures of risk assessment and establishments approval required by Indonesian authorities for the 
importation of bovine meat and poultry into Indonesia remains to be  hard to accomplish for foreign 
exporters. Even if all necessary documents are submitted to the Indonesia 's competent authority 
(Directorate General of Livestock and Animal Health) by the exporter and the competent authorities of 
the exporting country, pro cedures have been systematically prolonged. What measures does Indonesia 
plan to implement in order to expedite procedures, which the WTO Member shall pass through to be 
registered as an exporter of certain agricultural products into Indonesia?   
 
Answer:  
 
The procedures to obtain approval of a country listed for exporting meat products is as follows:  
a. Complete the questionnaires that can be retrieved from the directorate of veterinary public health 
official website;  
b. Questionnaires and supporting documents a re submitted to DG of Livestock and animal health with 
a cover letter from your Embassy in Jakarta;  
c. Complete the payment for Inspection Fee, known as the Government Decree (PP) No. 35 of 2016 
on Types and Tariffs of Non -Tax State Revenues;  
d. The following questionnaire and supporting docs will be reviewed by the DGLSAH team. It the team 
decided that the application is complete than the next step is on -site review;  
e. Before the implementation of the on -site review, the payment (on -site review fe e) has to be 
completed. This payment regulated in Government Decree (PP) No. 35 of 2016 on Types and Tariffs 
of Non -Tax State Revenues;  
f. The result from the on -site review will be evaluated on Import Risk Analysis (IRA) Meeting that will 
involve the expert  for Animal Health and Veterinary Public Health to ensure that all requirements 
have been fulfilled by the candidate (importing country);  
g. If the recommendation from the IRA meeting agrees to the proposal from the importing country/ 
industry then the next step is to develop animal health and veterinary public health protocol that 
have to be agreed upon by the competent authority. The protocol consists of animal health 
requirements as stated in the health certificate for any export commodities or products.  
 
Timeline for approval of meat and meat products has been regulated in MoA 42/2019.  
 WT/TPR/M/401/Add.1  
 
- 245 - 
 
  Question 13:  
In Indonesia 's opinion, how could the process of consideration of applications and documents submitted 
by the WTO Member be accelerated?   
 
Answer:  
 
The examin ation of application documents is based on the First -In-First Served method so that the 
documents that have been entered will be processed for approval first.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls   
3.3.4.1 Competition policy  
Page 123, para 3.153  
 
The legal framework for competition policy remains Law No. 5/1999 concerning the Prohibition of 
Monopolistic Practices and Unfair Business Competition (Competition Law) ; there were no amendments 
to this Law over the review period. An amendment to it has been on the national legislative agenda 
since 2015; according to the authorities, discussion in Parliament on the bill had advanced considerably 
in 2019 but was not concl uded due to the general election, and has now been withdrawn from the 
national legislation list. Concerns regarding limitations of the existing competition law relate largely to 
the ability of the competition agency to detect anti -competitive behaviour and  sanction it. As indicated 
in the recent World Bank Group report, the Indonesia Competition Commission (KPPU) (see below): 
cannot perform unannounced inspections to gather evidence at the premises of firms investigated for 
anti-trust infringement; cannot a ct against firms located abroad, even if their behaviour directly affects 
competition and/or consumers in domestic markets, resulting in limited detection of cartels by the KPPU; 
and has limited deterrence powers, with maximum penalties being a lot lower t han comparable agencies 
in other jurisdictions. The report also notes that, in the absence of a formal feedback mechanism from 
the Government, the impact of the KPPU's opinions on policy -making are unclear.  
 
Question 14:  
Please specify the forms of anticom petitive practices despite of agreements and concerted actions that 
are established in the Law 5/1999 concerning the Prohibition of Monopolistic Practices and Unfair 
Business Competition of Indonesia?  
 
Answer:  
 
The Indonesian Competition Law covers practices of anticompetitive agreements; anti -competitive 
activities; abuse of dominant position; and mergers that lessen competition. The agreements prohibited 
per se are the following:  
a. Agreements leading to price -fixing (Article 5(1)), except agreements in the context of a joint venture 
or expressly prescribed by law (Article 5(2));  
b. Price discrimination (Article 6);  
c. Agreements aimed at boycott (Article 10) that (a) injure or may injure other business actors or (b) 
limit access of other competitors to sell  or to buy goods and services in the relevant market;  
d. "Exclusive agreements ", i.e., agreements leading to resale restrictions, tying, and exclusive supply 
(Article 15).  
 
The agreements prohibited under the rule of reason, are the following:  
a. Agreements lead ing to an oligopoly (Article 4(1)). Business actors may be suspected or deemed of 
being part of oligopolies when two or three of them control the production and or marketing of over 
75% of the relevant market (Article 4(2));  
b. Agreements leading to predatory  pricing (i.e., price below cost) (Article 7) and resale price 
maintenance (Article 8).  
c. Agreements leading to market partitioning and market allocation (Article 9); and Cartels 
(Article  11); Trusts (Article 12);  WT/TPR/M/401/Add.1  
 
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  d. Agreements leading to oligopsony (Article 13 (1)). Business actors may be suspected or deemed of 
being part of oligopsonies when two or three of them control the purchases or acquisitions of over 
75% of the relevant market (Article 13(2));  
e. Agreements leading to vertical integration (Article 14);  
f. Agreements with foreign parties (Article 16). According to Article 1(7) of the Law, anti -competitive 
agreements are prohibited regardless of their form: both formal agreements ( "in writing ") and 
concerted practices ( "not in writing ") are included.  
 
The Law  includes both horizontal and vertical agreements. As for prohibited activities, the Law covers 
monopoly, monopsony, market control, conspiracy/collusion. *Detailed provision could be accessed 
through this link: http://eng.kppu.go.id/wp -content/uploads/2016/11/law_5_year_1999_.pdf     
 
Question 15:  
Which sanctions could be imposed for violation of the Law № 5/1999 of Indonesia?  
 
Answer:  
 
Indonesian Competition Law allows ICC to impose administrative sanctions in the form of (i) annulment 
of agreement, (ii) cease and desist order, (iii) settlement, (iv) administrative fines. In addition to that, 
refusal to submit pieces of evidence and refu sal to be examined could be imposed with the criminal 
sanction of IDR 5 billion of fines or jail sentence for a maximum of 1 (one) year.  
 
Question 16:  
Does the Indonesia Competition Commission have the empowerment to review economic concentration 
transacti ons? What are the thresholds for obligatory approval of the transaction by antimonopoly 
authority?  
 
Answer:  
 
The Indonesian Competition Law and Merger Regulation establish a system of both voluntary 
consultations (pre -merger notification) and mandatory post -merger notification. The following 
thresholds of Merger, Consolidation, or Acquisition transactions must be notified to ICC, in the event 
that: 
 
a. the value of the assets of Business Entity resulting from the Merger, Consolidation, or Acquisit ion 
exceeds IDR 2.5 trillion;  
b. the value of the sales of the Business Entity resulting from the Merger, Consolidation, or Acquisition 
exceeds IDR 5 trillion;  
c. the value of the assets of the Business Entity resulting from the Merger, Consolidation, or Acquisi tion 
all the Business Actors of which are engaged in the field of banking, exceeds IDR 20; or  
d. the value of the assets of the Business Entity resulting from the Merger, Consolidation, or Acquisition 
one of the parties of which is engaged in the field of ban king and the other parties are not engaged 
in the field of banking, exceeds IDR 2.5 trillion.  
 
Question 17:  
Does the Law 5/1999 of Indonesia has a provision on possibility of its extraterritorial application?  
 
Answer:  
 
Indonesian Competition Law does not provide extraterritorial jurisdiction.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.6 Government procurement   
 
Question 18:  
Are there any specific geographic criteria with respect to participation of foreign companies in the 
tenders organized by state -owned and state trading enterprises? Please further elaborate on the plans WT/TPR/M/401/Add.1  
 
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  with respect to the elimination of existing limitatio ns of participation of companies (notably suppliers of 
power equipment) from non -OECD Members in the tenders of certain state -owned companies.  
 
Answer:  
 
Ministry of SOE 's has been issued the Regulation of the Minister of SOE 's No. PER-08/MBU/12/2019 
concerning General Guidelines for the Procurement of Goods and Services for State -Owned Enterprises.  
Based on that Regulation, there are no specific geographic criteria with respect to participation of foreign 
companies in the tenders or ganized by state -owned enterprises. The procedures for SOE procurement 
are regulated by each SOE.  
 
Question 19:  
Indonesia has been an observer in the Government Procurement Agreement (GPA) since 2012. Could 
Indonesia please elaborate on the process of join ing as a member?  
 
Answer:  
 
As an Observer, Indonesia is still studying opportunities and benefits of WTO -GPA asession. We have 
not yet iniated the process of accession to the WTO -GPA. 
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Produc tion and Trade  
3.3.6 Government procurement   
3.3.6.1 Features   
Page 131, para. 3.183  
 
Reportedly, some of the main public procurement system challenges relate to: the NPPA's 
(Section  3.3.6.2) reliance on technical institutions to provide it with accurate and complete information, 
so it can carry out its monitoring function effectively; procurement exemptions (notably SOE purchases 
which do not use the state budget, and defence spending); and a lack of accountability of some aspects 
of the electron ic system, including a non -transparent mechanism for determining which companies can 
enter the e -catalogue system.272 It has also been noted that although there is increased transparency 
of public procurement information at the tendering phase through info rmation posted at the various 
electronic portals, this is not the case for the post -tendering phase.273 With respect to key positive 
developments over the review period, the authorities indicated that PR No. 16/2018 (see below) contains 
provisions which re fer to best practices and international standards, encourage procurement processes 
to be conducted via electronic means to create more transparent and efficient processes, and promote 
the development of professional human resources. They also noted that th e Government committed to 
integrate the treasury budget with the procurement system. Additionally, the NPPA (see below) 
developed various knowledge, skill -training and certification schemes, and it provides technical 
assistance and expert advice for procur ement implementations, particularly for strategic and complex 
projects.   
 
Question 20:  
Please clarify whether a specific regulation for SOE 's purchases exists in Indonesia. In the absence of 
mentioned specific regulation could Indonesia please inform on re gulatory basis for such purchases.   
 
Answer:  
 
Ministry of SOE 's has been issued the Regulation of the Minister of SOE 's No. PER -08/MBU/12/2019 
concerning General Guidelines for the Procurement of Goods and Services for State -Owned Enterprises.  
 
The Regulation regulate the general guidelines for SOEs purchases of goods and services. The 
procedures for SOE procurement are regulated by each SOE. However, the implementation of the 
regulation must comply with sectoral regulations.  
 
Question 21:   
Please de scribe in details terms of purchases of foreign goods and services (including Russian) for SOE.  WT/TPR/M/401/Add.1  
 
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  Answer:  
 
As mention before, the procurement of goods and services for SOEs are regulated by Regulation of 
Minister of SOEs No. PER -08/MBU/12/2019 concerning Gen eral Guidelines for the Procurement of Goods 
and Services for State -Owned Enterprises. One of the principles of SOEs procurement is open to all 
provider, then it does not regulate specific term of purchases of foreign goods and services for SOEs.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.7 Intellectual property rights  
3.3.7.1 Industrial property  
3.3.7.1.3 Trademarks and geographical indications  
Page 142, para 3.223  
 
As at May 2020, Indonesia had 93 registered GIs, of which 84 were domestic. The new GIs that were 
registered since January 2013 include various coffees, fruits, vegetables, oil, smoked fish, tobacco, nuts, 
palm sugar, rice, tea, spices, alcoholic beverages, cheese, textiles, and handicraf ts. 
 
Question 22:  
Please provide more detailed information on the registration of foreign GIs in Indonesia.  
 
Answer:  
 
The registration of foreign GIs can be carried out based on direct foreign applications or international 
agreements. An application submitted by an applicant who resides or has a permanent domicile outside 
the territory of the Republic of Indonesia must be submitted through a representative. The application 
in question can only be registered if the Geographical Indication h as been recognized and/or registered 
in accordance with the provisions in force in the country of origin. The provisions regarding the 
requirements for foreign applications are the same as those from within the country with additional 
proof of recognition and/or registration from the country of origin. The application process that applies 
to applications for registration from within the country also applies to applications for foreign GIs 
registration. For a more detailed explanation of the requirements and  application process, please refer 
to the Minister of Law and Human Rights Regulation number 12 of 2019 regarding Geographical 
Indications.  
 
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.3 Financial services  
4.4.3.3 Insurance  
Page 206, para 4.212  
 
A new insurance law entered into force in 2014 (Law No. 40 of 2014) and was followed by 
53 implementing regulations. The Law applies to all insurance business companies (insurers, reinsurers, 
brokers, agents, and loss adjusters). Among the main changes introduce d compared with previous law 
(Law No. 2 of 1992) are the tightening of restrictions on foreign ownership and the introduction of a 
single presence policy. Minimum paid -up capital requirements are set out in OJK Regulation 
No. 67/POJK.05/2016. These are: ID R 150 billion for conventional insurance companies and 
IDR 100 billion for sharia insurance companies. Under the previous Regulation (GR No. 39 of 2008), the 
paid-up capital requirement for conventional insurance was IDR 100 billion, and IDR 50 billion for  sharia 
insurance. As indicated by the authorities, the requirements for sharia insurance are more lenient than 
conventional insurance because the exposure of sharia insurance business is not as big as conventional 
insurance. Additionally, they aim to help  sharia insurance grow rapidly and to attract investment in this 
area. 
 
Question 23:  
What are the main reasons for tightening of restrictions on foreign ownership in insurance sector? Please 
provide brief information on the rationale for adopting the regul ations No 48 of 2018 (Regarding 
Amendment to Regulation of the Minister of Trade No 82 of 2017 Regarding Provisions for the Utilization WT/TPR/M/401/Add.1  
 
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  of National Maritime Transportation and Insurance for the Exportation and Importation of Certain Goods) 
and 02/DAGLU/PER /1/2019 of 16 January 2019 (Technical Guidance for the Implementation of the 
Obligation to Use a National Insurance Company for the Export and Import of Certain Goods).  
 
Answer:  
 
There is no tightening of restrictions on foreign ownership in insurance sector.  Both Government 
Regulation No. 14/2018 concerning Foreign Ownership of Insurance Companies and its amendment, 
Government Regulation No. 3/2020, limit foreign ownership in insurance sector, at maximum 80%.  
 
4 TRADE POLICIES BY SECTOR  
4.4 S ervices  
4.4.4 Telecommunications  
Page 211, para 4.227  
 
Mobile number portability is not permitted, because each telecommunications operator is granted its 
own unique network access code that cannot be shared between operators. Fixed number portability is 
not permitted either. Certain local -content requirements are in place (Section 3.1.7).  
 
Question 24:  
Is Indonesia going to allow mobile and fixed number portability in the near future?  
 
Answer:  
 
Indonesia doesn 't have a plan in allow mobile and fixed number portability in the near future.  
 
4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.5 Transport  
Page 212  
 
Question 25:  
How does the restriction on foreign participation in land transport services provision (49%) affect the 
possibility of conclusion of concession agreements in the railway sector?  
 
Answer:  
 
The maximum foreign investment participation of up to 49% is a manifestation of business cooperation 
in the form of joint operations between State -Owned Enterprises and FDI registered as  companies in 
Indonesia.  
 
This measure becomes one of the basis for consideration towards the possibility of conclusion of a 
concession agreement scheme in the railway sector. The impact analysis will be carried out 
comprehensively by taking into account various relevant factors and involving related stakeholders.  
 
Question 26:  
Please explain the meaning of national priority projects in terms of railway infrastructure development, 
especially in the context of East Kalimantan development plans.  
 
Answer:  
 
The national priority projects in terms of railway infrastructure development in East Kalimantan are 
aimed to reduce distribution cost and time, facilitate the flow of goods and mobility of people, as well 
as increase production capacity and industry effic iency. Furthermore, East Kalimantan is one of the 
potential locations for Indonesia 's capital relocation in the future.  
 
The provisions on the Acceleration of National Strategic Project Implementation are contained in the 
attachment to Presidential Regulation No. 3/2016.  WT/TPR/M/401/Add.1  
 
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  Question 27:  
Please include the subsection "Railway transport " to the section "Transport" with a descrip tion of the 
current investment and tariff policy, structure of the railway market (owners of infrastructure, traction, 
and rolling stock), plans for the development of the industry.  
 
Answer:  
 
The transport industry has been designated as one of the priori ty sectors in the future as specified in 
the Government Regulation Number 14/2015 concerning the National Industrial Development Master 
Plan. During the 2015 -2019 period, the government has focused on the development of urban railways, 
such as Light Rapid Transit (LRT) and Mass Rapid Transport (MRT). Meanwhile, for the 2020 -2035 
periods the government will focus on the development of infrastructure for electric trains and magnetic 
levitation (maglev) by encouraging investment from state owned enterprises an d private companies.  
 
5 APPENDIX TABLES  
Table A2.1 Notifications to the WTO, January 2013 -August 2020  
Section "General Agreement on Trade in Services " 
Page 231  
 
Question 28:  
The table says that there was no notification of measures that significantly affect trade in services 
(Article III.3 of GATS). Is our understanding correct that there were no laws that satisfied the criteria 
for notification?  
 
Answer:  
 
Indonesia have many services sectors which every sector has regulations, conducted by different 
ministries and bodies. Therefore, it is necessary to undertake internal coordination with respect to 
notification.  WT/TPR/M/401/Add.1  
 
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  INDIA  
Document – WT/TPR/S/401  
 
Page – 92, Paragraph – Table 3.7  
Q. No. 1:  Could Indonesia provide the legal basis under the WTO for imposing export prohibitions on 
raw rubber and certain wood products?  
 
Answer:  
 
Basically, there is no export ban for raw rubber. The regulation in place is that every raw rubber will be 
exported must fulfil the export standard of raw rubber. Based on MoT Regulation No. 45/2019, woods 
product is allowed to export except if it is still in form of log wood.  
 
Page –  105, Paragraph – 3.101 and Table 3.12  
Q. No. 2:  Could Indonesia provide the details of the main industries/sectors benefitting from the 
Super -deduction tax incentives?  
 
Answer:  
 
Super -deduction tax incentives are given to carry out work practice, apprenticeship, and/or learning 
activities in fostering and developing Human Resource s (HR) competency up to 200% of the total cost 
incurred. Also, they may be given deduction up to 300% of the total cost incurred for certain research 
and development activities in Indonesia within a certain period of time.  
 
Page – 201, Paragraph – 4.201  
Q. No. 3:  Could Indonesia please elaborate the relevant regulations according to which investors are 
directed to invest in existing banks?  
 
Answer:  
 
OJK directs investors to invest inexisting banks as part of supervisory action.  Based on OJK Regulati on 
No. 41/POJK.03/2019 on the Merger, Consolidation, Acquisition, Integration, and Conversion of 
Commercial Banks, OJK may merge, consolidate, acquire, integrate or convert commercial banks as 
part of its supervisory action.  The spirit of this supervisory  action is to create a stronger, more efficient, 
and more competitive banking sector.  
 
Page – 206, Paragraph – 4.212  
Q. No. 4:  Could Indonesia please elaborate on single presence policy?  
 
Answer:  
 
In Article 16 paragraph (1) of Law No. 40/2014 and Article 28 paragraph (1) of OJK Regulation 
No. 67/POJK.05/2016, it is stated that each party can only be the controlling shareholder of 1 (one) life 
insurance company, 1 (one) general insurance company, 1 (one) reinsurance company, 1 (one) sharia 
life insu rance company, 1 (one) sharia general insurance company, and 1 (one) sharia reinsurance 
company.  
 
Page – 211, Paragraph – 4.226  
Q. No. 5:   Could Indonesia please inform about e -commerce activities in which 100% FDI is permitted?  
 
Answer:  
According to Presidential Regulation No. 44 of 2016 (Negative Investment List), e -commere in the form 
of retail trading via internet. Retail trading via in ternet (e -commerce) is 100% FDI permitted with the 
requirements of partnership with MSME and investment value of above IDR 10 billion. Meanwhile, 
providers of electronic trading transactions (e -marketplace, daily deals, price grabber, and online 
classified  advertising) with investment value of at least IDR  100 billion is 100% FDI permitted 
(otherwise, 49% FDI applied for investment value less than IDR  100 billion but above IDR 10 billion). WT/TPR/M/401/Add.1  
 
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  As part Presidential Regulation No. 44 of 2016 (Negative Investment List) is included in Omnibus Law, 
this provision is currently under revision to be more investors friendly which is expected to be issued by 
early 2021.   
 
Page 85, Para 3.1.5.2 - Import l icensing, Sub -para 3.63  
Q. No. 6: The Members are continuously raising concerns regarding the complexity, lack of 
transparency, and trade -impairing effects of Indonesia's import licensing requirements relating to 
several items including tyres. Table A3.4 – 'Products subject to import licensing requirements, 2020 ' 
mentions that rationale and procedures in respect of import licensing requirements for 'Tyres ' have not 
been provided.  India would like to know the rationale and the detailed procedures in this re gard.  
 
Answer:  
 
The Rationale is to enhance effectiveness in relation with Indonesia National Tyres Standard. Meanwhile 
regarding the procedures, importer must obtain import permit by providing Business Identification 
Number (NIB), Indonesia National Stand ard, import plan, storage document, transportation document, 
recommendation from Ministry of Industry.  
 
Document – WT/TPR/G/401  
 
Page – 3 & 4, Paragraph – 1.1 to 1.8  
Q. No. 1:  Indonesia is requested to provide reasons as to why the period of the analysis is 2015 to 
2018?  
 
Answer:  
 
The analysis was provided by Central Bank of Indonesia and narrated by writers for the Government 
Report. The reason why the period of the analysis is 2015 to 2018 because the elected President at the 
period of trade policy review was inaugurated at the end of 2014, so the effective government policies 
and programs from newly elected President could be implemented at the beginning of 2015.  
 
Q. No. 2:  Can the same be updated by a year?   
 
Answer:  
 
It could be done that way but because it was for Overview Chapter the writers wanted to make it as a 
summary for the Government Report.  
 
Q. No. 3:  Does it mean that the coverage would be limited to this period  for all regulatory system and 
changes?  
 
Answer:  
 
The context of the Overview Chapter is as summary for the economic performances of Indonesia. 
Regulatory system and changes are mentioned in other chapters.  
 
Page – 6  Paragraph –  2.7 to 2.10  
Background:  Indonesia does show an exceptional containment of inflation variables for the period from 
2014 to February 2020, whereby it kept the CPI below 3%. India would like to request Indonesia for all 
the other additional measures which it has taken to  counter the pull factor of a depreciating exchange 
rate of Rupai from 11 thousand to15 thousand.  
 
Q. No. 4:  Which measure[s] helped Indonesia contain the domestic transmission of the worsening 
external transactional impact?  
 WT/TPR/M/401/Add.1  
 
- 253 - 
 
  Answer:  
 
Inflation has continued to decline in recent years due to structural improvements. The role of inflation 
expectations in shaping inflation is getting bigger and anchored to the inflation target, in line with Bank 
Indonesia's consistency in keeping inflation on track. In  addition, the impact of the exchange rate to 
inflation (exchange rate pass -through) is also eased due to producers' response to holding back the 
impact of rising prices for imported raw materials, thereby reducing the risk of rising prices for end 
product s to consumers. The decrease in the impact of the exchange rate to inflation is also an impact 
of the central bank's policy in maintaining exchange rate stability in accordance with fundamentals. 
These two developments have resulted in producers not automa tically adjusting the price of the final 
product if there is a change in the exchange rate. Another structural factor that supports the reduction 
in inflation is the positive impact of the coordination between the Government and Bank Indonesia in 
controlli ng food inflation, through Central and Regional Inflation Control Teams (TPIP and TPID). The 
latest developments during the Covid -19 pandemic is that inflation continues to decline, driven by 
cyclical factors of insufficient demand and adequate supply.  
 
Q. No. 5:  Is it sustainable in the long -run, can countries like India learn from the same?  
 
Answer:  
 
It depends on the country especially on economic conditions. It also needs to conduct research and 
studies before.  
 
Page – 8, Paragraph – 2.14 to 2.17  
Q. No.  6: India would request Indonesia to indicate as to what was the reason for the changes in the 
regulations on the processing time, was it driven by the increased investments by China in the 
construction sector?  
 
Answer:  
 
It was to improve Indonesia ease o f doing business (EODB) ranking.  
 
ADDITIONAL QUESTIONS INDIA  
Para 4.196 of the Secretariat Report states:  
Furthermore, in 2019, the BI issued the Indonesia 2025 Payment System Vision, which contains 
five elements: (i) supporting the integration of national digital economy and finance; (ii) supporting 
banking digitalization; (iii) guaranteeing the interlink between fintech and banking; (iv) ensuring the 
balance between innovation, consumer protection and he althy business competition; and (v) 
safeguarding national interests in cross -border digital economy and finance ….. 
 
Question:  
1. In furtherance of Indonesia 's transition to digital economy, are there any other laws and regulations 
that have been or are lik ely to be adopted by Indonesia?  
 
Answer:  
 
Currently Indonesia has President Decree No. 74/2017 regarding Road Map of Ecommerce.  
 
2. Could Indonesia please explain and elaborate specific provisions related to the following in its laws, 
regulations  or policies related to digital economy: - 
 
a. Cross border transfer of  personal/ non -personal data   
b. Localization of data (except telecom sector where there is no requirement of data localisation as 
per the report)  
c. Data sharing obligations and prov isions, if any, with regard to SME/startups  
d. Sharing of source code of digital technologies with public authorities  
e. Data adequacy arrangements with other countries  WT/TPR/M/401/Add.1  
 
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  f. Measures to address anti -competitive behaviour due to network effect of digital monopolies  
g. Regulations of social media applications  
 
Answer:  
 
a. Indonesia supports cross border data flow conducted by Private Electronic System Operators in 
accordance with Government Regulation No. 71/2019 concerning Electronic System and Transaction 
Operations. However, Public Electronic System Operators must carry out management, processing, 
and/or storage of an Electronic System and Electronic Data within the territory of Indonesia.  
b. Art. 21 of GR 71/2019 states that "A Private Electronic System Operator may carry out management, 
processing, and/or storage of an El ectronic System and Electronic Data within the territory of 
Indonesia and/or outside the territory of Indonesia". Nevertheless, it also provides that "in the event 
the management, processing, and/or storage of the Electronic System and Electronic Data are 
carried out outside the territory of Indonesia, the Private Electronic System Operator must ensure 
the effectiveness of supervision by the Ministry or Agencies and of law enforcement ". Furthermore, 
"a Private Electronic System Operator must provide Access  to the Electronic System and Electronic 
Data for supervision and law enforcement purposes in accordance with the provisions of laws and 
regulations."  
c. GR No. 71/2019 regulates all data sharing provisions of any kinds of legal entities. There is no 
particul ar treatment or discrimination identified for SME/startup in this regard  
d. Art. 9 of GR 71/2019 provides that "A developer who provides Software specifically developed for a 
Public Electronic System Operator must deliver the source codes of and documentation on the 
Software to the relevant Agencies or institutions". In regard with government procurement, sharing 
of source code is contract based, it is stipulated in the contract between the developer and public 
authorities.  
e. Data transfer adequacy arrangements with other countries are regulated in Bill on Personal Data 
Protection. Nonetheless, the Bill is still being discussed by the government and the parliament.  
f. Business operator is required to follow common business conduct and code of practices , including 
healthy competition according to Elucidation of Art. 11 of GR No. 80/2019 concerning Trading 
through Electronic System  
g. Regulations related to social media applications are as follows:  
• Law No. 19/2016 concerning Amendment of Law No. 11/2000 conc erning Electronic Transaction 
and Information and Law No. 11/2000 concerning Electronic Transaction and Information.  
• Government Regulation Number 71 Year 2019 (GR 71/2019) concerning Electronic System and 
Transaction Operations.  
• Regulation of Minister of Communications and Informatics No. 5/2020 on Private Electronic 
System Operators. The Private Electronic System Operators include operators of social media 
applications both established or domiciled within and outside the territory of Indonesia. This 
regulation provides, among others, the obligation of electronic system registration and 
adequate electronic information/documents governance. In the event an operator fails to 
adhere to those provisions, it shall be subject to sanctions (including access blocki ng). 
 
Similar to point c at the above, there is no particular treatment for social media application as it is 
registered as Electronic System Operator.  
 
Para 4.23. of the Government Report states:  
The development strategy for services sector includes initi atives to encourage the participation of 
domestic service providers in foreign trade, amongst others by increasing the quantity and quality 
of the exports of priority services  through: (1)increasing the utilization of priority services produced 
by domestic  businesses, in order to provide incentives for the development of national service industries; 
and (2) optimizing resources available within the networks global services production to improve the 
competitiveness of the services sector.  
 
Questions:  
3. Could Indonesia please provide the details of the priority services for which increasing the quantity 
and quality of the exports is being envisaged. Are any financial incentives being provided for this? If 
yes, details may be provided.  
 WT/TPR/M/401/Add.1  
 
- 255 - 
 
  Answe r: 
 
One of the Government's programs to increase service exports is to develop the Tourism Service Sector 
as a priority sector with the development of 10 tourism destinations which are expected to provide 
benefits to the Indonesian economy.  
 
4. Could Indon esia please provide details such as structure of the programme, specific interventions, 
financial outlay etc regarding optimizing the resources available within the networks global services 
production to improve the competitiveness of the services sector.  
 
Answer:  
 
Improving the quality of the workforce/labor is important in order to prepare the competence of 
Indonesian workers. Various things have been done by the government regarding this matter, including:  
a. Improvement of practice -based vocational education institutions;  
b. Empowerment of vocational training centers that adapt to the needs of the world of work;  
c. Apprenticeship program for Indonesian workers abroad;  
d. Performing labor certification; and  
e. Utilization of the capacity building progr am from various international agreements that Indonesia 
has followed and agreed upon.  
 
Para 4.24. of the Government Report states:  
Consequently, with a view to support the above -mentioned strategy, efforts are made to: (1)  increase 
promotion of Indonesian tourism; (2) increase the quality and quantity of exports of Tourism Services 
and Maritime Transportation Services; and (3) improve  the quality and skill of Indonesian 
workers.  
 
Question:  
5. Could Indonesia please provide the details such as sectors covered, specific skills, financial outlay, 
numbers trained etc with reference to steps being taken to improve the quality and skill of I ndonesian 
workers.  
 
Answer:  
 
Facing the Industrial 4.0 era and COVID -19 pandemic, make Digital sectors develop faster. Government 
of Indonesia provides more training programs to improve skill working of the workforce by establishing 
Vocational Training Centers (VTCs) in central and local area to overcome the needs. In 2020, there are 
305 VTCs dispersed all over Indonesia have held skill training program for 300,386 persons in many 
majors. Recently, Informatics and Telecommunication major is the 2nd of the most capacity trainees 
(34,319 persons) after Automotive major (44,071 persons), and followed by Garment Apparel major 
(31,924 persons).  
 
In order to improve the competency of Indonesian workers, Indonesia government has taken several 
following strategies:  
1. Preparation of new competencies through Triple Skilling vocational training: Skilling, Re -skilling, & 
Up-skilling at various Training Institutions;  
2. Optimizing the apprenticeship process in the company to increase workforce experience;  
3. Optimizin g online training and blended training mechanisms;  
4. Optimizing Community Vocational Training Centers (VTCs) as business incubator centers in the 
regions;  
5. Increased employment opportunities through entrepreneurial and labor -intensive public works 
programs in  various sectors (Social Safety Net);  
6. Strengthening Social Security to support labor income (Wage Subsidy Assistance, Job Loss Security, 
Pre-Employment Cards);  
7. Analyze the dynamics of labor supply and demand due to the C OVID -19 pandemic.  
 WT/TPR/M/401/Add.1  
 
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  Para 1.13 of the Secretariat Report states:  
……Fiscal incentives were provided to improve the investment climate and competitiveness, including 
expediting tax refunds; providing super deductions for specific labour -intensive businesses and 
industries; tax holidays for e xport -based service industries;  and fiscal incentives to accelerate the 
electric vehicle programme ….  
  
Para 3.101 of the Secretariat Report states:  
In 2019, the Government introduced new "super -deduction" tax incentives  for industries with 
certain feature s, through GR No. 45/2019173, and MoF implementing regulations (MoF Regulations 
No. 128 of 2019 and No. 16 of 2020) (Table 3.12). As indicated by the authorities, ten companies were 
granted tax relief under these schemes; no data was available on the revenue foregone from incentives 
provided.  
  
Question:  
6. Could Indonesia provide details on the tax benefits provided to service industries? Could Indonesia 
also specify the eligibility criteria to avail tax incentives by export -based service industries, and if there 
was any specified sectoral coverage of such industries?  
 
Answer:  
 
Based on Minister of Finance Regulation No. 128/2019, the government provides tax facilities in the 
form of vocational super -deduction where there is a reduction in gross income  of up to 200% of the cost 
for work practice activities, apprenticeship or learning the development of certain competencies for 
companies that carry out these activities.  
 
The variety of competencies that are encouraged to be developed includes the tourism  sector and the 
creative industry, which includes the hotel, tourism and catering industry.  
 
Income tax facilities is given to companies with export purposes goods and provided in the form of area -
based facilities such as facilities in bonded zones/bonded warehouse, bonded logistics centers, facilities 
such as fiscal incentives and procedural facilities for the import of raw materials which reduce the 
production costs of exported finished goods (KITE) and for small medium enterprises (KITE IKM) that 
provide d by Customs and Excise. These facilities are provided for the manufacturing industry business 
sector for export purposes only, and currently there are no special facilities for the sector of service 
industry.  
 
Para 3.132 of the Secretariat Report states:  
SPS-related agreements reached between Indonesia and third countries over the review period include: 
a partnership arrangement on the implementation of electronic certification (with Australia in 2016); an 
MRA on the application of plant quarantine  and phytosanitary measures (Pakistan, 2013 (for 
five years)); a partnership agreement on the launch of the project on electronic certification 
(Netherlands, 2015); an MOU on Biosecurity Quarantine Activities (Papua New Guinea, 2018 (for 
five years)); an a rrangement for exporting palm kernel expeller (New Zealand, 2013); the Protocol of 
Phytosanitary Requirement for the Export of Mangosteen Fruits from Indonesia to China (China, 2019); 
and the Protocol of Phytosanitary Requirement for the Export of Dragon F ruits from Indonesia to China 
(China, 2019). Additionally, a letter of intent was signed between Indonesia and the FAO (2014).  
 
Question:  
7. Has Indonesia entered into MRAs in professional services?  
8. If yes, how many MRAs have been concluded in professio nal services like doctors, accountants, 
company secretaries, nurses, engineers, architects, caregivers, paramedical & health care 
professionals etc. With which countries have these MRAs been concluded? Indonesia may provide   link 
to the English version of these MRAs.  
9. If no, does Indonesia envisage such MRAs in future.  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
Indonesia has already had MRAs in several forums such as ASEAN dan IECEPA. In ASEAN, Indonesia 
participates in several MRAs, such as in MRA on Accountancy Services, MRA on Dental Practitioner, MRA 
on Medical Practitioner, MRA on Architecture Services, MRA on Engineering Services, MRA on Nursing 
Services, MRA on Surveying Qualifications and MRA on Tourism Professional 
(http://agreem ent.asean.org/ ). For IECEPA, the agreed MRAs are Recognition of Certificates of 
Competency and Training of Seafarers for Service on Board Vessels Registered in Switzerland and 
Recognition of Qualifications of Service Suppliers.  
 
Para 4.197 of the Secretari at Report states:  
……According to the authorities, most regulations are prudential measures relating to business 
activities, presence, licensing, and the management of foreign workers . Additionally, regulations 
were issued on consumer protection in the fina ncial services sector; alternative dispute resolution 
agencies in the financial services sector; and the implementation of an Anti -Money Laundering Program 
and Prevention of Terrorism Financing Program in the financial services sector.  
 
Question:  
10. Coul d Indonesia explain what is the nature and kinds of prudential measures that can be undertaken 
with respect to licensing requirements and management of foreign workers? Are there any specified 
grounds for applying such prudential measures?  
 
Answer:  
 
In implementing services for the use of Foreign Workers (TKA), Indonesia carried out a number of 
prudential measures as follows:  
1. To prevent modification and duplication of data, an integrated online service system is built with 
related application systems, su ch as Online Single Submission (OSS), Online PNBP Information 
System (SIMPONI) and Immigration Information System (SIMKIM);  
2. Conduct due diligence on employers, companies and foreign workers so that all requirements comply 
with applicable laws and regulatio ns through virtual interviews; and  
3. Perform routine network security maintenance.  
 
Para 4.259 of the Secretariat Report states:  
Regulatory initiatives aimed at increasing the sustainability and quality of tourism businesses  
included: the launch of a certifi cation scheme in 2014; the setting of business standards for a range of 
tourism travel -related services, and recreational, cultural and sporting activities in 2015.  
 
Question:  
11. Could Indonesia provide details of the business standards that apply to tour ism and travel -related 
services and recreational, cultural and sporting activities including how many such standards have been 
set, description and aim of the standards, uptake of these standards by the industry etc. A link of the 
English version of these standards may be provided.  
  
Answer:  
 
Related details and information are available online through 
https://chse.kemenparekraf.go.id/#:~:text=Sertifikasi%20CHSE%20adalah%20proses%20pemberian
,%2C%20Keselamatan%2C%20dan%20Kelestarian%20Lingkungan .  
 
Para 34. of the Secretariat Report states:  
Several support measures are in place to support the transport sector: new VAT facilities were extended 
to assist the shipping, railway and air transport industries; and import tax reductions were granted on 
goods related to aircraft maintenance. Subsidies  continue to be provided to support "pioneer" shipping 
companies who provide transport to remote regions; and various support measures were extended to 
the airline sector in 2020 to mitigate the impact of the COVID -19 pandemic………  
  WT/TPR/M/401/Add.1  
 
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  Questions:  
12. Could Indonesia please provide the details regarding subsidies (like eligibility, quantum, total 
companies benefiting etc) being provided to support "pioneer" shipping companies who provide 
transport to remote regions.   
 
Answer:  
 
Through the Ministry of Tr ansportation, government provides help as subsidies for the operation of sea 
toll transportation (goods), pioneers (passengers) and livestock ships, both as operational subsidies, 
container subsidies, and cargo subsidies. This is done as an effort to impro ve facilities and infrastructure 
to support increased connectivity, integration and regional distribution. The pioneering sea 
transportation is highly relied on by remote, frontier, outermost and border island communities to 
connect those islands with majo r ports. Given the absence of other types of transportation (land and 
air) operating in the region, the ship can carry up to 500 people.  
 
Para 35. of the Secretariat Report states:  
Tourism is a key generator of employment and one of Indonesia's main source s of foreign -currency 
earnings. Over the period 2013 -19, there was year -on-year growth in both visitor numbers and revenue 
from tourism, and the number of hotel rooms also significantly increased. New developments over the 
review period include: efforts to  develop the international medical tourism  segment;  a major 
expansion in the number of countries eligible for visa -free travel to Indonesia; measures to encourage 
cruise liner visits; and measures to increase the sustainability and quality of tourism businesses…….   
 
Para 4.258. of the Secretariat Report st ates:  
A new initiative to develop international medical tourism in Indonesia was launched through 
an MOU between the ministries of tourism and creative economy and of health , in 2017. This 
reportedly involves policy and programme coordination and harmoniza tion, medical tourism 
improvement and development, information and data exchange, and monitoring and evaluation. It was 
later followed up by the issuance of a health tourism catalogue  and a fitness travel book.  
 
Questions:  
13. Could Indonesia please provid e the details such as specific measures, financial outlay etc to develop 
the international medical tourism segment.  
 
Answer:  
 
The Ministry of Tourism and Creative Economy launched an MoU with the Ministry of Health which aims 
to synergize programs and activities in order to optimize the utilization of health and tourism sector as 
a joint effort to promote health tourism in Indone sia.  
 
In the MoU, the focus of tourism being developed is medical and fitness tourism. Medical health services 
are not only for the sick but also for beauty. There are several medical health tours that can also be 
combined with wellness and herbal tours. Therefore, many innovations are needed to develop this 
tourism potential. The development of health tourism is carried out by expanding business penetration 
which will produce more significant benefits for national development, improving the quality of hea lth 
services and community welfare.  
 
14. Could Indonesia provide details like objective, coverage, impact etc of health tourism catalogue and 
fitness travel book.  
 
Answer:  
 
The catalog and the book can be used as a guidance for all stakeholders, in particular tourism sector in 
developing or promoting health tourism in Indonesia. The catalog and the book can also be a reference 
for tourists, international as well as domestic, who want to take a health tour in Indonesia.  WT/TPR/M/401/Add.1  
 
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  Para 36. of th e Secretariat Report states:  
Distribution services  are a major generator of employment and contributor to economic activity in 
Indonesia. In 2014, Law No.7 of 2014 on Trade was enacted to, inter alia, govern distribution services; 
it contains general rules  regarding e -commerce. FDI restrictions were eased with respect to distribution 
affiliated with production; direct selling through marketing networks; department stores; distribution 
not affiliated with production; warehousing; and retail trading via mail or Internet order. Additionally, 
new FDI limits were set for certain e -commerce activities; 100% FDI is permitted in certain e -commerce 
activities involving investments of more than IDR 100 billion, and for those activities under the 
IDR 100 billion thresh old, FDI is capped at 49%. The retail e -commerce segment grew rapidly over the 
review period, and a new regulation was issued in 2019 to govern the e -commerce marketplace and 
e-retail practices. In line with the Government's E -Commerce Roadmap for the peri od 2017 -19, 
government measures to support SME e -commerce activities  were initiated.  
 
Questions:  
15. Could Indonesia please provide the details of government measures initiated to support SME 
e-commerce activities.  
 
Answer:  
 
Ministry of Cooperatives and SME establishes some programs in order to support SME e -commerce 
activities:  
1. Improving SMEs capability through e -learning/online/offline training which aims to support and 
enhance their skills to be digital marketer in e -commerce (edukukm. id, Kaka Asuh UMKM)  
2. Market access facilitation: a) as collaborative program with some financial institutions 
(LPDB -KUMKM, Jamkrindo, and Askrindo) to promote SMEs products through Digital Catalogue; b) 
working with the Government of Procurement Goods/Servi ce and Ministries/Institutions/Local 
Government to facilitate SMEs to register their products in Public Procurement (e -catalogue); 
c) Pasar Digital (PaDi UMKM).  
 
Para 36. of the Secretariat Report states:  
Indonesia follows the established schedule for the liberalization of trade in services  under the 
AFAS. It continued to improve its undertakings under the ninth (27 November 2015) and tenth 
(11 November 2018) packages of GATS -plus commitments that included business services, computer 
and related service s, rental/leasing services without operators, other business services, and air transport 
services (Section 4.4.5.2).  
 
Questions:  
16. Could Indonesia please provide the details regarding the recent improvements in its undertakings 
under the ninth (27 Novemb er 2015) and tenth (11 November 2018) packages of GATS -plus 
commitments that included business services, computer and related services, rental/leasing services 
without operators, other business services, and air transport services (Section 4.4.5.2).  
  
Answer:  
 
Since the signing of AFAS in 1996, a number of AFAS commitment packages have been completed and 
signed by all ASEAN member countries. AFAS packages have deepened the level and scope of its 
commitment to removing substantial barriers to trade in se rvices ( http://agreement.asean.org/ ).  
 
Para 3.108. of the Secretariat Report states:  
The contribution of services to GDP  rose gradually over the review period, from 42.6% in 2013 to 
46.1% in 2019. While Indonesia saw positive services export growth in all but two years during this 
period, it maintained a small trade deficit in services. The main services activities are whol esale and 
retail trade; transport and storage; finance and insurance; and information and communication. In 
2016, FDI restrictions in various services sectors were eased.  
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  Questions:  
17. Could Indonesia please provide the details regarding the FDI restrictions eased in 2016 in various 
services sectors.  
 
Answer:  
 
There are around 141 business fields that were eased through Presidential Decree Number 44 of 2016 
compared to the previous DNI in Presidential Decree Number 39 of 2014.  
 
Several service se ctors to be 100% open to foreign share ownership, among others, E Commerce, Film 
(Production, Production Phase, Distribution, Cinema), and Cold -Storage, Sports Centers, Bars and Cafes, 
Restaurants, Hospital Management Services, Clinical Laboratory (Clinic Medical Check Up), Toll Road 
Operations, Testing of Telecommunications Equipment (laboratory tests), Management and Disposal of 
Harmless Waste, Brokerage and Direct Selling.  
As for several other service sectors that have relaxed their foreign share owners hip restrictions, including 
Medical Device Testing Institutions, Private Travel Agencies, Loading and Unloading Services, Job 
Training, Air Transportation Support Services and Transportation Management Services (from 49% to 
67%).  
 
For private museums, con vention services, exhibition and incentive travel (MICE), and hotels up to 
2 stars (from 51% to 67%), business services / construction consulting (from 55% to 67%).  
 
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  UKRAINE  
PART I: QUESTIONS REGARDING THE SECRETARIAT  REPORT  (WT/TPR/S/401)  
 
2 TRADE AN D INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.1 Trade policy formulation  
2.2.1.1 Executive branches of government  
 
Pages 38 -39 (Para 2.8)   
According to information, presented in Table 2.1, Capital Investment Coordinating Board is charged with 
providing investor services, formulating investment policies, and coordinating with national government 
agencies and regional governments.  
 
Questions:  
1. Could Indonesia, please, identify the main functions of Capital Investment Coordinating B oard?  
 
Answer:  
 
Indonesian Investment Coordinating Board (BKPM) is a Non -Ministerial Government Agency, which is in 
charge of implementing policy coordination and services related to investment, in accordance with 
prevailing laws and regulations. Chairman of BKPM is reporting directly to the President of the Republic 
of Indonesia. More information as stipulated on BKPM Regulation No. 4 of 2020 on BKPM's Organization 
and Operations.  
 
As addition, BKPM is currently managing: 1) Central One Stop Services (PTSP ) which are home to 
23 representatives of ministries/agencies assigned to provide investment consultations and licensing 
facilitation at BKPM, and 2) Online Single Submission (OSS) System which is an integrated investment 
licensing electronic system for al l business fields.  
 
2. Does this body provide support and clarification needed to the foreign investors that intend to conduct 
investment activities in the territory of Indonesia?  
 
Answer:  
 
Yes, one of the main functions of BKPM are to provide consultations, licensing services and investment 
fiscal facilities, for investors.  
 
2.4 Investment Regime  
 
Page 52 (Para 2.41)   
The Report states, that during the review period Indonesia undertook efforts to liberalize and streamline 
its FDI regime in seve ral areas, e.g. the regulatory framework, the negative investment list and the 
business/investment licensing system.  
 
Questions:  
3. Could Indonesia, please, clarify how the investment licensing system works?  
 
Answer:  
  
Currently, the investment licensing services is implemented through the Online Single Submission 
system (OSS), which is an integrated investment electronic system. Businesses access the OSS to apply 
for required Business Identification Number (NIB), Business License and Operational /Commercial 
License which are issued up -front based commitment for the business to satisfy the requirement(s). 
Further plan is to revise the current business licensing approach which is based on commitment, into 
risk-based approach.  
 WT/TPR/M/401/Add.1  
 
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  4. What documents do i nvestors have to submit in order to get the license to conduct investment 
activities in the territory of Indonesia?  
 
Answers:  
 
Prior to creating an OSS account, Businesses need to set up Indonesian Limited Enterprise (PT) by 
having the PT's Article of Association (AoA) from Public Notary and PT's Certificate of Company 
Registration through "AHU Online" of Ministry of Law & Human Rights as well as to Taxpayer Number 
from "KSWP Pajak Online" of DG Taxation. These both "AHU Online" and "KSWP Pajak Online" are 
integrated with OSS. Then, Businesses can access the OSS to apply for required Business Identification 
Number (NIB), Business License (IU) and Operational/Commercial License (IOK).  
 
2.4.2 Restricted activities  
 
Page 54 (Para 2.47)   
Under the Report, "During the review period, the negative investment list, which includes sectors that 
are completely or partially closed to investment, was revised twice, in 2014 and 2016. The 2016 list 
(Table 2.6) reaffirmed a more positive attitude towards foreign investme nt, as the 2014 list had partly 
reversed the liberalization trend by introducing more stringent rules for foreign investors in some key 
sectors, such as mining ". 
 
Question:  
5. Could Indonesia, please, specify the main principles and criteria for the "negat ive investment list " 
formation?  
 
Answer:  
 
The main principle is each business activities are open for investment application unless it is closed 
which means certain business activities may be prohibited on being commercialized as an investment 
activity. Ho wever, there are certain business activities which are open with certain/special conditions, 
such as:  the business activities reserved for MSME & Cooperatives, Partnership with MSME, maximum 
foreign share ownership, specific locations, special licenses/pe rmits, and investors from the Association 
of Southeast Asian Nations (ASEAN) countries.  
 
3 TRADE POLICIES AND PRACTICES BY MEASURE  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.2 SPS measures  
3.3.3.2.4 Live animals, meat and dairy products  
 
Page 121 (paragraphs 3.145 -3.146)   
The Report states, that only approved meat and poultry establishments, and those exporting 
animal -derived products (i.e. dairy and eggs), may import products into Indonesia . Importers must 
apply for an import recommendation from the Ministry of Agriculture in order to receive an import permit 
from the Ministry of Trade. Import permits are valid for six months.  
 
Questions:  
6. Could Indonesia kindly inform on the requirements and procedures that are necessary for obtaining 
permits for importation into Indonesia of following products:  
• table eggs (HS code 040721);  
• meat and bone meal from bovine, swine and poultry (HS code 230110)?  
 
Answer:  
 
To obtain import recommend ation for animals and animal products, importers must comply with the 
provisions under MoA Regulation No. 42/2019 followed by obtaining import approval for animals and 
animal products under MoT Regulation No. 29/2019.  
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  7. Ukraine would appreciate if Indonesia could also provide the form of veterinary certificates for 
abovementioned products (in Word format, if available).  
 
Answer:  
 
Indonesia does not provide a form of veterinary certificates but only informs Ukraine regarding animal 
health requirement s. 
 
3.3.7 Intellectual property rights  
3.3.7.1 Industrial property  
3.3.7.1.1 Patents  
 
Pages 138 -139 (paragraphs 3.211 -3.212)   
The Report informs on several changes to various provisions of intellectual property (IP) laws and 
regulations to facilitate publi c access to affordable medicine, namely, amended provisions on compulsory 
licensing.  
 
Questions:  
8. Could Indonesia, please, provide more details regarding its procedures, terms and conditions for 
granting patent compulsory licences?  
 
Answer:  
 
To obtain patent compulsory licenses, the applicant must comply with Law No. 13/2016 concerning 
Patent and follow the procedures as well as meet the requirements as stipulated in MLHR Regulation 
No. 38/2018 concerning Patent Application.  
 
9. How can compulsor y licence applicants show that they can and will use the patents?  
 
Answer:  
 
According to Article 8 MLHR Regulation No. 39 of 2019, the applicant should prove that:  
a. Patent holder can 't exercise their patent after 36 months being granted;  
b. Patent holder or t he licensee exercise the patent in a way that harming society;  
c. Patent resulting from the development of previous patent can 't be done without the other patent 
which is still registered.  
 
10. What are the criteria of economic feasibility for  a compulsory li cence to be granted and how should 
benefit for the general public be established?  
 
Answer:  
 
According to Article 13 para 2, the criteria must be equipped with information from the relevant agencies 
provided by or at the request of the Applicant or his/her  Attorney.  
 
11. Does MLHR Regulation No. 30 of 2019 provide for special provisions on cooperation of interested 
authorities, patent holders and manufactures before making decision concerning granting patent 
compulsory licences and what state bodies are res ponsible for such process (please, describe, if so, with 
reference to the document in English, if available)?  
 
Answer:  
 
The Minister will establish an expert team chaired by the Director General, consist of 7 (seven) members 
from government agencies and/or  expert who does not have any conflict of interest in the field of patent. 
This expert team will asess the evidences submitted by applicants and the result of their assessment 
will be recommendation to the Minister to grant or reject of the Compulsory Lice nse application.  
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  4 TRADE POLICIES BY SECTOR  
4.4 Services  
4.4.3 Financial services  
 
Page 198 (Para 4.192)   
Table 4.5 presents information on structure of the financial sector of Indonesia, including type and 
assets of financial institutions (finance companies, pawnshops, microfinance institutions etc.).  
 
Question  
12. Could Indonesia, please, describe features of regulations and requirements, and functions of state 
authorities regarding activity of the following financial institutions:  
• pawnsho ps; 
• leasing (financial leasing) and factoring companies;  
• credit unions;  
• microfinance companies?  
 
Answer:  
 
OJK Regulation (POJK) on Pawnshops (POJK 31/POJK.05/2016), Financial Leasing and Factoring 
Company (POJK 28/POJK.05/2014, POJK 35/POJK.05/2018, POJK 10/POJK.05/2019, and POJK 
29/POJK.05/2020), and also Microfinance Companies (POJK 12/POJK.05/2014 jo POJK 
61/POJK.05/2015, POJK 13/ POJK.05/2014 jo POJK 62/ POJK.05/2015, and POJK 14/POJK.05/2014) 
apply provisions on registration and licensing, regulates t he forms of legal entities and ownership, 
capital, registration or business licensing mechanisms, permitted business activities, reporting, 
supervision and examination.  
 
As for credit union, is under the jurisdiction of the Ministry of Cooperatives and SM Es. 
 
Pages 198 -199 (Para 4.193)   
According to the Report the financial services authority (Otoritas Jasa Keuangan, (OJK)) is the sole 
regulatory authority for all financial services institutions, including pension funds.  
 
Question  
13. Would Indonesia, please, describe its pension system: operational principles and specifics, 
organizational and legal structure of the system, entities engaged in the system, state guaranties?  
 
Answer:  
 
The Pension Fund Industry consists of Pension Funds for Def ined Benefit Pension Program (Dana Pensiun 
Pemberi Kerja Program Pensiun Manfaat Pasti/DPPK PPMP), Pension Funds for Employees of Defined 
Contribution Pension Plan (DPPK Program Pensiun Iuran Pasti/DPPK PPIP) and Financial Institution 
Pension Funds (DPLK).   
 
Asides from DPPK and DPLK, Indonesia also has social security programs, namely Old Day Security 
(Jaminan Hari Tua/JHT) and Pension Security (Jaminan Pensiun), managed by Workers Social Security 
Agency (BPJS Ketenagakerjaan).  
 
Page 199 (Para 4.195)   
The Report mentions the National Strategy for Financial Inclusion and notes that consumer protection 
is one of its five pillars. Actions relating to improved consumer protection in financial institutions are 
considered to further advance financial inclusion in Indonesia.  
 
Questions:  
14. Could Indonesia kindly describe its legislation on protection of financial service consumers ' rights.   
 WT/TPR/M/401/Add.1  
 
- 265 - 
 
  Answer:  
 
Mandated by Article 28 to Article 31 of Law of the Republic of Indonesia Number 21 of 2011 on Indonesia 
Financial Services Authority (OJK), OJK is mandated to ensure that the overall activities within the 
financial services sector is capable to protect the interests of consumers and the public.  
 
Based on these provisions, OJK has and will continue to: 
1. Provide OJK Consumer Services that are easily accessible to consumers through OJK Consumer 
Service (Kontak 157).  
2. Strengthen the role of financial service institutions as the first party to handle consumer complaints 
(internal dispute resolution/IDR). In order to optimize the IDR function, OJK has issued POJK 
Number 18/POJK.07/2018 concerning Consumer Complaint Services in the Financial Services Sector 
and continuously provides an understanding to financial service institutions that handling complaints 
in the financial services sector has an important role to maintain public trust in financial services 
sector business.  
3. Ensure the role of Alternative Dispute Resolution Institutions in the financial services sector (LAPS) 
that will handle disputes between consumers and financial service institutions (external dispute 
resolution/EDR) if the IDR stage has not been implemented properly. OJK also encourages the 
establishment and formalization of Integrated LAPS (LAPST) in 2020 (integration of 6 LAPS into 1) 
on 23 September 2020 with the hope that it will make it easier for consumers to settle their disputes.  
4. Strengthen Discipline Enforcement of Market Players (market conduct supervision) to create a level 
of playing field between financial service institutions a nd consumers. In contrast to prudential 
supervision which assesses the health of Financial Service Institutions (LJK) based on financial 
ratios, market conduct supervision focuses on the behavior of LJK in dealing with consumers. 
Discipline enforcement of market players is aimed at ensuring consumer protection so that the 
confidence in the financial market is built, which is expected to support financial inclusion, 
sustainable economic growth and financial stability system. In general, market behavior inclu des 
how market players design, compile and convey information, offer, make agreements on products 
and / or services as well as resolve disputes and handle complaints.  
5. Build an integrated financial services sector consumer service system.  In 2020, OJK is d eveloping a 
Consumer Protection Portal Application (APPK) that plan to be effective as of early 2021. This 
application will integrate the IDR and EDR processes so that it will make it easier for consumers and 
the public to submit complaints and seek to res olve disputes, including if the complaint indicates a 
violation which will then be followed up by the OJK through Market Conduct Supervision. To support 
the implementation of APPK, in 2020 OJK has issued POJK Number 31/POJK.07/2020 concerning 
the Implement ation of Consumer and Community Services in the Financial Services Sector by OJK.  
 
Questions:  
15. What are State control functions regarding this issue?  
 
Answer:  
 
OJK regularly reports the handling of consumer protection in the financial services sectors to Parliament, 
and also have a regular meeting with National Consumer Protection Agency (Badan Perlindungan 
Konsumen Nasional/BPKN), Ombudsman of the Republic of Indonesia and other stakeholders, to discuss 
the current issues of consumer protection  in the financial services sector.  
 
In terms of consumer protection, OJK has issued OJK Regulation No. 1/POJK.07/2013 on Consumer 
Protection in Financial Services Sector, which requires financial service institutions to follow this 
regulation by upholding the core principles of consumer protection, which are 1) Transparency, 
2) Impartial Treatment, 3) Reliability, 4) Secrecy & Security of Consumer data and Information, and 
5) Simple, Quick & Affordable Consumer Complaints and Resolution. Those pri nciples must be complied 
by the financial institutions. The consumer protection covers all manners of financial services business 
players. This protection is aimed at creating a reliable consumer protection system, improving consumer 
empowerment, and devel oping awareness among financial services practitioners so as to be able to 
elevate public's trust in financial services sector.  
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  Efforts for protection of Consumers and the public are directed towards achieving two key objectives. 
First, to strengthen the  confidence/trust of investors and Consumers in each activity and line of business 
in the financial services sector (market confidence); and second, to provide fair, efficient and transparent 
opportunity for growth to Financial Services Businesses and on t he other hand for Consumers to have 
an understanding of rights and obligations in dealings with Financial Services Businesses with regard to 
characteristics, services and products (level playing field). In the long term, the financial industry itself 
will also reap positive benefits that will drive improvements in efficient in response to demand for higher 
levels of service in provision of financial services.  
 
In relation to the last principle, financial services institutions oblige to have and maintain co nsumer 's 
complaints resolution and consumer services mechanism by providing a function or unit that handle 
consumer 's complaints. It also requires them to inform their consumers complaint handling and 
resolution mechanism and to report their complaint hand ling to OJK.  
 
4.4.3.1 Banking  
 
Page 201 (Para 4.202)   
According to the Report one of key developments in the banking sector over the review period was the 
launch of the Financial Information Services System (SLIK) in 2017. SLIK is a tool for exchanging 
financing or credit information among institutions in the financial field, inter alia, to help reduce 
non-performing loans and increase funds provided.  
 
Questions:  
16. Could Indonesia, please, elaborate on the role of the public registry and private loan bureaus in the 
credit information sharing system?  
 
Answer:  
 
Role of Public Credit Registry (PCR): OJK develops and manages Sistem Layanan Informasi Keuangan 
(SLIK) as PCR in Indonesia. Banks and non -bank financial institutions periodically submit credit d ata to 
SLIK in systematic basis. SLIK provides banks and non - bank financial institutions with standard credit 
information for lending decision process and implementation of risk management. SLIK is also tool used 
by OJK for financial supervisory purpose.  
 
Role of Private Credit Bureau (PCB): PCB collects credit data (from SLIK & financial institutions) and 
alternative data (from public institution, telco companies, e -commerce, other data source) to produce 
more shophisticated credit information and produc ts with value -added (credit score, fraud alert, etc). 
The existence of PCB complements the credit infrastructure in Indonesia.  
 
17. Is the licensing of private loan bureaus mandatory?  
 
Answer:  
 
Yes. The private credit bureau in Indonesia must have operati onal licen ce from OJK.  
 
4.4.3.2 Fintech  
 
Page 205 (Para 4.209)   
Under the Report, several regulations were issued over the review period to govern the fintech segment.   
Table 4.9 lists certain fintech regulations, in particular Regulation No. 77/POJK.01/2016, designed to 
support the growth of fintech peer -to-peer (P2P) lending platforms as new financing alternatives for 
communities that have yet to enjoy optimal services from incumbent financial service institutions, and 
Regulation No. 37/POJK. 04/2018, that focuses on regulating equity crowdfunding.  
 
Questions:  
18. Would Indonesia kindly inform more on regulations and requirements for P2P lending?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
OJK Regulation No. 77/POJK.01/2016 on Information Technology -based Lending, provides oversight for 
the fintech P2P lending sector (including marketplace platforms and balance sheet lenders). Its 
provisions consist of business activities, human resource qualification, licensing, the standard of 
technology, user protection, prohibit ion, and sanctions when P2P lending company disobey the 
regulation.  
 
Prior running their P2P lending business, companies shall get a license from OJK. The license is divided 
into two conditions, the first one is registered, this stage is also known as the regulatory sandbox. When 
companies want to get their registered status, they should fulfill the minimum requirements clearly 
stated in POJK 77/2016. The requirements themselves consist of administrative requirements, minimum 
paid-up capital, and human reso urce qualification. The second status is licensed, one year after they 
received their registered status, the P2P lending company is obliged to submit their licensed application 
to OJK, otherwise, their registered status will be null and void.  
 
When the P2 P lending company submit the licensed application, they also should fulfill the minimum 
requirements clearly stated in POJK 77/16. The requirements themselves consist of administrative 
requirements and minimum paid -up capital. One of the biggest distinctio ns between a registered P2P 
lending company and a licensed P2P lending company is their sustainability to run their business 
activities, the registered one is vulnerable to get a cancellation from OJK.  
 
To give the users some protection from the legal asp ect, OJK in POJK 77/16 obligates every fintech P2P 
lending company to provide the agreement between company and lender and lender -borrower. The 
regulation itself provides minimum provision which should be contained in the agreement. The main 
purpose of thi s provision is to give maximum protection to the lender and also borrowers from every 
risk that might be happened on this transaction.  
 
Another provision which consisted of POJK 77/16 is related to the obligation of the fintech P2P lending 
company to miti gate the risk from both the user and the company itself. The mitigate provision includes 
the obligation to use escrow account and virtual account when a user does some transaction on their 
platform to avoid the infringement of fundraising by unauthorized i nstitutions based on banking act.  
 
This regulation also regulates the minimum standard of technology that fintech P2P lending companies 
should have. Data protection also a concern that POJK 77/16 regulates in this chapter. User protection 
also regulated in  this regulation. The main concern of user protection is to provide transparency to every 
transaction that the user did on the platform and also to give the user some protection from the 
possibility of data infringement by the fintech P2P lending company.  
 
There are plenty of activities that fintech P2P lending company cannot do, which consist of conducting 
business activities other than the fintech P2P lending company's business activities regulated in this OJK 
regulation; acting as a Lender or Borrower; provide guarantees in all forms of the fulfillment of the 
obligations of other parties; issuing debt bond; provide recommendations to users; publish fictitious 
and/or misleading information; offer services to users and/or the public through personal commun ication 
without the user's consent, and charge any fees to the User for filing a complaint.  As the supervision 
tools for OJK, the regulation provide the obligation of fintech P2P lending companies to submit their 
monthly, quarterly, and yearly report to OJK. When the fintech P2P lending company did some 
infringement to obligation and prohibition contained in this regulation, OJK has the authority to give 
sanction to the fintech P2P lending company. The sanction itself divided into four kinds of administra tive 
sanction, warning letter, fine, restriction of business activities, and cancellation of license marks.  
 
Questions:  
19. What is the current situation with crowdfunding and what are its prospects in the country?  
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  Answer:  
 
OJK Regulation Number 37/POJK/04/2018 on Equity Crowdfunding (ECF) was issued in August 2018. 
Since then, 3 ECF Providers have obtained license from the OJK, namely Santara (www.santara.co.id), 
Crowddana (www.crowddana.id) and Bizhare ( www. bizhare.id ).  
 
Currently OJK is processing application for license from 16 applicants. From the Issuer side, as of 
30 September 2020, 106 Issuers have raised funds through the ECF at the amount of IDR 112 .7 billion. 
From the Investor side, as of 30 Septemb er 2020, number of Investors investing through the ECF is 
16,418 investors.  
 
Looking at the above figures, ECF certainly has positive prospect in Indonesia as it provides alternative 
access, particularly for start -up companies, to raise funds in the capit al market as well as alternative 
investment channel for investors, especially the young generation, by utilizing the ease of the 
technology.  
 
Questions:  
20. What is the legal regulation of loan crowdfunding?  
 
Answer:  
 
OJK Regulation No.37/POJK.04/2018 on Equity Crowdfunding. This regulation focuses on regulating 
equity crowdfunding. It is aimed at boosting economic growth in Indonesia by providing access to capital 
for start -up companies and SMEs raising funds electroni cally for development of their businesses.  
 
Currently, fundraising through crowdfunding platform as regulated in OJK Regulation Number 
37/POJK/04/2018 is only for equity securities (shares). OJK has considered input from the stakeholders 
to allow crowdfun ding for debt securities. To do so, OJK Regulation Number 37/POJK/04/2018 needs to 
be amended first. It is expected that the draft of the amended regulation will be ready in 
December  2020.  
 
Questions:  
21. How are the rights of the investors of crowdfunding  platforms protected?  
 
Answer:  
 
Protection of investors ' right is among the essential provision regulated in OJK Regulation 
Number  37/POJK/04/2018 wherein the ECF Provider is obliged to uphold basic principles for investor 
protection namely (i) transparency, (ii) fair treatment, (iii) reliability, (iv) data protection and 
confidentiality, and (v) simple, fast, and affordable dispute s ettlement.  
 
The total amount investment that an Investor can make through Equity Crowdfunding Services annually 
is limited in the following manner:  
• An Investor with an annual income of up to IDR 500,000,000 can purchase shares up to 5% of their 
annual inc ome. 
• An Investor with annual income more than IDR 500,000,000 can purchase shares up to 10% of their 
annual income.  
• Based on the Socialization, the above annual income verification is subject to the Operator.  
 
The above criteria and limitation are not applicable if the Investor is a legal entity having experience in 
capital market investment, as evidenced by the ownership of securities account at least for 2 years prior 
to the shares offering. OJK views that this group of people has understood the inves tment risks of equity 
crowdfunding.  
 
Questions:  
22. What are the requirements for crowdfunding agreements?  
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  Answer:  
 
OJK Regulation Number 37/POJK/04/2018 stipulates requirements for agreement between ECF Provider 
and the Issuer and agreement between ECF Provider and the Investors.  
 
1. Agreement between ECF Provider and the Issuer which must be in the form of deed of agreement 
shall at least contain:  
a. number of the agreement deed;  
b. date of the agreement;  
c. identity of each party;  
d. rights and obligations of each party;  
e. duration or termination of the agreement;  
f. amount of funds to be raised and shares to be issued;  
g. minimum amount of funds to be raised (where relevant);  
h. fee and commission;  
i. provision on fines (where relevant);  
j. dispute settlement mechanism;  
k. settlement mechanism in the evet that the ECF Provider discontinues its operation.  
 
2. Agreement between ECF Provider and the Investors shall be formulated in a standard form and bound 
at the time when the investors approve the content of the agreement electronically. The agreement may 
include clause stating that the Investors give power to the ECF Provider to represent them as the 
shareholders of the Issuer including for attending the general shareholders meeting and signing dee d 
or other related documents.  
 
Questions:  
23. What are the ways to mitigate risk when making investments through crowdfunding platforms?  
 
Answer:  
 
OJK Regulation No. 37/POJK/04/2018 has incorporated a number of provisions aimed as a way to 
mitigate risk when investing through the crowdfunding platforms, as follows:  
1) ECF Provider must use escrow account to collect funds from the investors. ECF Provider is prohibited 
from using its own bank account.  
2) ECF Provider must use payment method with un ique identification for each investor e.g., by using 
virtual account for each customer.  
3) If the shares issued through crowdfunding platforms are of a scriptless type, the shares must be 
registered in a custodian agreed by the ECF Provider and the Issuer. T he said custodian must have 
approval or license from the OJK.  
4) To improve its service quality, the ECF Provider may cooperate and exchange data with other 
IT-based supporting service provider but it still must take into account the confidentiality of data 
provided to the said service provider.  
 
Questions:  
24. What are the limitations for investors that use crowdfunding platforms?  
 
Answer:  
 
Based on OJK Regulation Number 37/POJK/04/2018, ECF Investors are those who have the capacity to 
buy the shares and analyse the risks. Furthermore, the Investor must also meet the following criteria:  
1) An investor with annual income of IDR 500 million or less may only buy shares through the ECF at 
the amount of no more than 5% of its annual income.  
2) An investor with annual income of more than IDR 500 million may only buy shares through the ECF 
at the amount of no more than 10% of its annual income.  
3) The above two criteria shall not apply if the investor is a legal entity and has experience in investing  
in capital market evidenced by the ownership of securities account for at least 2 years before the 
shares issuance through the ECF is conducted.  
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  Questions:  
25. What is the procedure for registration of FinTech companies with Bank Indonesia?  
 
Answer:  
 
Registration is conducted by submitting written application to Bank Indonesia by Financial Technology 
Provider with complete documents. Registration procedure is regulated in the Regulation of Member of 
Board of Governors No. 19/15/PADG/2017 on Procedure f or Registration, Information Submission, and 
Monitoring of Financial Technology Provider.  
 
A Financial Technology Provider, which may participate in Regulatory Sandbox, is a Financial Technology 
Provider which has been registered with Bank Indonesia and d etermined by Bank Indonesia to 
participate in Regulatory Sandbox based on the existence of a payment system items in their business 
process, innovative elements, beneficial for consumers/economy, non -exclusive, can be used massively, 
and with an identified  risk and mitigation procedure.  Bank Indonesia determines a certain period for 
Financial Technology Provider to conduct a testing in the Regulatory Sandbox as regulated on BI 
regulation No. 19/12/2017. Financial Technology Provider which is included in th e category of Payment 
System Service Provider must obtain license or approval from Bank Indonesia in accordance with Bank 
Indonesia provisions on implementation of payment transaction processing and must meet feasibility 
aspect in implementing Financial Te chnology.  
 
26. What are key documents used by Bank Indonesia to identify FinTech Operators and the products, 
services, technology, and/or business models to be tested in a Regulatory Sandbox?  
 
Answer:  
 
In order to support the development and innovation of  Financial Technology, Bank Indonesia provides 
space for Financial Technology Operators to test their products, services, technology and/or business 
models at Bank Indonesia through the Regulatory Sandbox. Regulation of Members of the Board of 
Governors No . 19/14/PADG/2017 concerning the Limited Trial Space (Regulatory Sandbox) of Financial 
Technology clearly regulates the testing procedure and process in the Regulatory Sandbox.  
 
4.4.3.3 Insurance  
 
Pages 205 -207 (paragraphs 4.210 -4.215)   
The Report describes the regulatory developments in legal and institutional framework for the insurance 
sector of Indonesia that have occurred during the period under review.  
 
Questions:  
27. Could Indonesia, please, inform on legal regulation of life and nonlife insu rance activities (with 
references to English translations of legislation, if available)?  
 
Answer:  
 
Provisions on life and non -life insurance companies ' activities is regulated in OJK Regulation 
No. 69/POJK.05/2016 on Business Conduct of Insurance Companies, Sharia Insurance Companies, 
Reinsurance Companies, and Sharia Reinsurance Companies.  
 
Questions:  
28. What are legal requirements for life and nonlife insurance agreements (with references to English 
translations of legislation, if available)?  
 
Answer:  
 
Provisions on insurance policy is regulated in OJK Regulation No. 23/POJK.05/2015 on Insurance 
Products and Insurance Products Distribution.  
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  Questions:  
29. What are state guarantees for the funds accumulated under life insurance agreements?   
 
Answer:  
 
Government is setting up Policy Guarantee Agency (Lembaga Penjamin Polis) to protect insurance 
customers ' funds.  
 
Questions:  
30. What are the requirements for providers of life and nonlife insurance services?  
 
Answer:  
 
Provisions on insurance and reinsurance companies ' licensing is regulated in OJK Regulation 
No. 67/POJK.05/2016 on Business License and The Institution of Insurance Companies, Sharia 
Insurance Companies, Reinsurance Companies, and Sharia Reinsurance Compan ies. 
 
Questions:  
31. What are life insurance and pension plans/programs (with reference to documents in English, if 
available)?  
 
Answer:  
 
The Pension Fund Industry consists of Pension Funds for Defined Benefit Pension Program (Dana Pensiun 
Pemberi Kerja P rogram Pensiun Manfaat Pasti/DPPK PPMP), Pension Funds for Employees of Defined 
Contribution Pension Plan (DPPK Program Pensiun Iuran Pasti/DPPK PPIP) and Financial Institution 
Pension Funds (DPLK). Life insurance company in Indonesia provides services in handling risk related 
to the event of life or death of an insured.  
 
Page 207 (Para 4.216)   
The Report states, "In 2014, the Government launched a compulsory national health insurance system, 
which is managed by BPJS Kesehatan, a government public agency. As at May 2020, nearly 85% of the 
population was covered, with premiums being automatically deducted from salaries of formal workers. " 
 
Question:  
32. Would Indonesia kindly provide more information on its health insurance system: operational 
princi ples, organizational and legal structure of the system, entities engaged in the system, respective 
legislation, state guaranties?  
 
Answer:  
 
Indonesia has social security program in the form of a compulsory national health insurance system, 
managed by Health Care and Social Security Agency (Badan Penyelenggara Jaminan Sosial/BPJS 
Kesehatan). The benefit of this health care system is to provide comprehensive health service namely 
promotive, preventive, curative and rehabilitative services, which also include consumable medicine and 
medical material services.  
 
The insured/participants of this health care system are those who have paid the premium . Aside from 
being a social security program, general and life insurance companies may voluntarily provide health 
insurance.  WT/TPR/M/401/Add.1  
 
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  KAZAKHSTAN  
Question 1. In paragraph 3.33 it is mentioned that Indonesia does not apply non -preferential rules of 
origin and its preferential rules of origin are described.  
 
Could Indonesia explain how the Indonesian Government determines the country of origin of goods in 
the ap plication of most -favored -nation treatment under Articles I, II, III, XI and XIII of GATT 1994; 
anti-dumping and countervailing duties under Article VI of GATT 1994; safeguard measures under 
Article  XIX of GATT 1994; origin marking requirements under Artic le IX of GATT 1994; and any other 
quantitative restrictions or tariff quotas with regard to non -preferential countries?  
 
Answer:  
 
Non-Preferential ROO for impor has not been regulated yet by the Government of Indonesia. 
Non-Preferential ROO for impor does not need COO except for products that are subject to Anti -dumping 
and Safeguard.  
 
Question 2 . In paragraph 3.64 it is stated that during the review period, the main legislative framework 
governing anti -dumping, countervailing, and safeguard measures, consisting of GR No. 34 of 2011, 
remained virtually unchanged. GR No. 34 of 2011 does not include a nti-circumvention provisions.  
 
Could Indonesia clarify how the Indonesian Government introduces anti -circumvention measures 
without anti -circumvention provisions in their legislation governing anti -dumping measures?  
 
Answer:  
 
It should be emphasized that neither the anti -dumping agreement nor GR 34/2011 provides a 
combination or regulation that explicitly regulates the imposition of BMAD on a custom union or on 
anti-circumvention measures. So, the approach of each country regarding this matter is different .  
 
Indonesia's concern to include countries that are members of the ECU is related to country 
circumvention, namely the practice of circumvention that avoids antidumping duties by changing the 
exporting country of origin. In our national regulation there are still no regulations related to 
anti-circumvention. Therefore, there are several times the authority invited all related parties to join 
the review investigations or request for an interim review.  
 
Question 3.  Does Indonesia have a separate law regulating the granting of licenses/permits for certain 
types of activities? What is the licensing procedure (step -by-step procedure)?  
 
Answer:  
 
Different activitiy requires different license/permit from different authorities. For instance, licence to 
import is issued by the Ministry of Trade while license to obtain national standard (SNI) mark is issued 
by National Standardization Body. Below is one example of licensing procedure for SNI mark based on 
BSN Regulation No. 2/2017 Article 5 para 1 for voluntary standards:  
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Question 4.  Does Indonesian legislation provide for the possibility of re -applying if the license/permit 
is refused? Is it possible for the applicant to make technical corrections (if any ) within a reasonable 
period of time and update the application by providing the necessary additional information?  
 
Answer:  
 
As far as SNI mark concerned, application will be approved as long as all requirments are fulfilled (BSN 
Regulation No. 2/2017). O nce it is approved, the applicant has to comply with the provisons as stated 
in Article 13, para 1 (d) which also includes techincal corrections.  
 
Question 5. The trade policy review indicates that the Strategy includes measures to increase export 
of servi ces and improve the quality and skill of Indonesian workers. What exact measures are being 
taken or have been taken?  
 
Answer:  
 
The Government of Indonesia has taken necessary steps to improve the quality of the workers or labors 
for export as part of "Industrialization Revolution 4.0 ". Several efforts that have been made by the 
government including:  
 
a. Developing a curriculum in the  education system that can produce graduates with skills and 
expertise that can be used to compete in the world of work.  
b. Establishing training institutions such as Work Training Centers or promoting existing programs in 
the community to improve the abiliti es and skills of workers and the community.  
c. Providing free training, so the participants have the same goal of improving the quality and 
competitiveness of the workers/labors.  
 
Question 6. Have there been any temporary restrictions or measures in the spher e of trade in services 
related to the COVID -19 pandemic?  
 
Answer:  
 
Our government has issued Presidential Regulation No. 103/2020 on Guarantee of Central Government 
in boosting the national economy and/or for the National Economic Recovery program through the 
financing of development programs. The regulation efficiently p rovides financial institutions with 
WT/TPR/M/401/Add.1  
 
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  guarantee of liquidity for programs of finance which are relevant to national development and/or the 
government 's National Economic Recovery program.  
 
Our Government is willing to grant 101 regencies and cities 3.3 trillion rupiahs (USD 2.24 billion 
approximately) to support tourism industry until the end of 2020. Minister of Tourism and Creative 
Economy suggested that the grant will be delivered explicitly to regional governments, hotels and 
restaurants which make g overnment 's criteria of being popular or developing tourist destinations.  
 
Also, our government undertakes special policies for MSMEs in order for them to survive the economic 
pressure as the consequences from C OVID -19 pandemic. In the main programs of tac kling the effects 
of COVID -19 and national economic recovery in order to respond to the impacts of the pandemic, our 
government prioritizes supports for MSMEs by allocating the special budget to the MSMEs.  
 
Question 7. What impact has the COVID -19 pandemic  had on the services sector in Indonesia, taking 
into account the lockdowns and restrictions on the movement of tourists?  
 
Answer:  
 
COVID -19 pandemic gives impacts to the decline of economic growth in many sectors, reflected through 
its second quarter econ omic growth of minus 5.32%, followed by the third quarter of minus 3.49%, 
one of which are caused by tourism services sector.  
 
Question 8. Government procurement and competition policy are among the areas that may affect a 
country's foreign trade regime. In this regard, could Indonesia provide information on the legal regime 
in public procurement, and the openness of the market for foreign suppliers? In addition, Indonesia is 
an observer of the WTO Government Procurement Committee. Are there plans to join the GPA as a full 
member?  
 
Moreover, could Indonesia provide information on the existence of competition law and appropriate 
competition authority, and also, are there any provisions in the competition law that somehow 
differentiate the position of  local players over foreign?  
 
Answer:  
 
Based on Presidential Regulation Number 16 Year 2018, foreign companies may bid for international 
tenders/selection over certain thresholds (IDR 1 trillion for construction services; IDR 50 billion for goods 
and other  services; and IDR 25 billion for consultancy services). Foreign companies can participate 
below such threshold when there is no national company has the ability to provide goods and services 
requested. Foreign companies shall cooperate with national compa nies in the form of consortium, 
subcontract or other form of cooperation under international tenders/selection.  
 
Indonesia needs consideration for several aspects, such as the readiness of its domestic suppliers to 
compete with foreign suppliers inside and  outside Indonesia as well as political approval that involve 
many stakeholders.  
 
Question 9. In accordance with the Trade Policy Review Indonesia emphasizes its policies on the 
production of energy -efficient and affordable (LCGC) motorized vehicles that have become a champion 
for Indonesian products entering the export market. Could Indonesia kindly explain what government 
support is provided for LCGC motorized vehicles to enter foreign markets?  
 
Answer:  
 
Policies of LCGC production Encourage the use of energy -efficient and environmentally vehicles.  
 
Question 10. Indonesia provides tax deduction as a stimulus for innovation in the food and beverages 
industry. Could Indonesia kindly elaborate further on this stimulus and how  it is implemented?  
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  Answer:  
 
Based on Minister of Finance Regulation No. 153/2020 the Government provides super deduction 
facilities for R&D activities carried out in Indonesia. The form of the facilities provided is a reduction in 
gross income of a maxim um of 300% of the R&D expenses incurred provided that a reduction of gross 
income of 100% of the amount of expenses incurred for R&D activities, and an additional reduction of 
gross income of a maximum of 200% of the accumulated costs R&D over a period of time. 
 
To keep this facility in line with the national priorities, Minister of Finance Regulation No. 153/2020 also 
regulates an eligible R&D focus for obtaining this facility, one of which is related to the development of 
the food industry, including food  and beverage.  
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  SAUDI ARABIA  
2.2.3 Trade laws and regulations  
 
Para. 2.19 page 43   
2.19. Indonesia's objectives of good regulatory practice consist of: internal coordination of the 
rule-making activity (managing regulatory reform, and coordination with trade and competition 
officials); regulatory impact assessments  (ensuring that better policy options are chosen, by 
establishing a systematic and consistent framework for assessing the pote ntial impacts of government 
action, including impacts on trade);  
 
Question 1:  We commend Indonesia for adopting the regulatory impact assessments RIA in policy 
making as an effective tool to identify the need for certain regulations and improve the investm ent 
climate. We would appreciate if Indonesia could provide us with further information on the entire 
process, approaches and steps taken to adopt the RIA in general, if the government conduct RIA method 
in the area of investment facilitation, could you pl ease share your experience with us?  
 
Answer:  
 
The regulatory framework in Indonesia is regulated in Law Number 12 the Year 2011 about the Making 
of Law, even though there are slight differences compared to the RIA concept implemented in some 
OECD countries. Several governmental bodies in Indonesia have conducted RIA in their lawmaking 
processes. The House of Representatives of RI (DPR RI) already published a book/journal containing 
guidance on the implementation of RIA in Laws making in 2008. Furth ermore, several Ministries and 
government bodies already realize the importance of RIA implementation in order to measure the 
effectiveness of published regulations and their effect on stakeholders, namely the Ministry of National 
Development Planning (Bap penas), Ministry of Finance, BSN, etc.  
 
Regarding the implementation of the RIA method in the area of investment and doing business in 
Indonesia, currently, BKPM is in the process to adopt such practices. There is a plan to develop Online 
Single Submission (OSS) system to adopt Good Regulatory Practices (GRP) features.  WT/TPR/M/401/Add.1  
 
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  CHINA  
TRADE POLICY REVIEW OF INDONESIA  
QUESTIONS FROM CHINA  
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
Page 11, Para 12  
Import prohibitions, restrictions and licensin g remain in place, inter alia, to protect national interests 
relating to public morals, human life or health, natural resources, environment, use of locally produced 
goods, protection and development of domestic industries, and to enforce obligations under  international 
agreements. The scope of import bans changed, from 143 ten -digit HS items (2013) to 124 eight -digit 
HS items (February 2020). These were mostly industrial products. The coverage of import licensing 
authorizations changed from 30 to 40 produc t categories, or from 2,060 eight -digit tariff lines (2012) 
to 3,308 ten -digit HS lines (July 2020). In certain cases, import authorizations for some products remain 
quantitatively restricted by considerations such as use -related (e.g. of carcass meat and horticulture), 
domestic produce purchase (e.g. milk and salt), self -sufficiency (e.g. rice, sugar and horticulture) and 
state trading (e.g. feed corn and fertilizer).  
 
Question:  
1. The above restrictions burden the importers and exporters to some extent in  both countries and are 
likely to cause price fluctuations in Indonesia, harming the interests of consumers. Is Indonesia 
considering lifting the above import restrictions? or is Indonesia considering stabilizing the practice and 
issuing the quota to enter prises with actual import needs?  
 
Answer:  
 
Import prohibitions, restrictions and licensing remain to protect national interests relating to protect 
human life or health, natural resources, environmental damage. Indonesia does so in accordance with 
WTO regulation, and are open with input from member countries.  
 
Page 12, Para 16  
Export finance, guarantees and credit insurance by the state -owned Indonesia Eximbank and Asuransi 
Ekspor Indonesia have been increasingly focused on a number of government -design ated leading export 
commodities (e.g. leather and jewellery); penetration to non -traditional export markets (e.g. Africa, 
South Asia, the Middle East, and Eastern Europe); encouraging growth of export -oriented MSMEs; and 
the implementation of special -assignment export projects in synergy with a number of other 
state-owned enterprises (SOEs).  
 
Question : 
2. What other types of government -designated export commodities besides leather and jewellery have 
been focused on in export finance, guarantees and credit i nsurance of Indonesia Eximbank and ASEI? 
Why are such commodities designated? What specific policies are adopted when export credit insurance 
for such exports is provided?  
What specific policies are adopted by Indonesia Eximbank and ASEI to encourage the g rowth of 
export -oriented MSMEs?  
 
Answer:  
 
As specified on its act of establishment, Indonesia Eximbank shall have functions to support the national 
export program through the National Export Financing by providing Financing, Guarantee, Insurance, 
and advi sory services. There's no specific regulation that mentioning Indonesia Eximbank shall support 
any designated export commodities.  
 
Indonesia Eximbank shall implement prudential norms that include good corporate governance, risk 
management application, and Know Your Customer principles. The implementation of risk management 
principle shall be reflected in extending export financing by having sound analysis principle in placed 
which is appropriate with the common practices.  
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  In order to encou rage the growth of export -oriented MSMEs, Indonesia Eximbank may perform 
counseling and consultation services to Banks, Financial Institutions, exporters, export goods producers, 
especially micro, small, medium -scale enterprises and cooperatives.  
 
One of I ndonesia Eximbank's major program in supporting export oriented MSMEs is called Coaching 
Program for New Exporters. Through this program, Indonesia Eximbank provides a year training packed 
for export -oriented MSMEs to equip them with export -related knowled ge. 
 
Export Finance, guarantees and credit insurance by Eximbank and ASEI are basically open for all 
industrial sectors. Its provision is based on the application by the private sectors, and given on the 
risk-analysis basis. The GOI does not specifically t arget certain sectors to apply and benefit from the 
facility.  
 
Page 12, Para 18  
As at May 2020, Indonesia had 10,858 national standards (SNIs), nearly 18% of which were harmonized 
with international standards.  
 
Question : 
3. It is indicated in Article 18 on page 12 of the Report of the Secretariat that as at May 2020, Indonesia 
had 10,858 national standards (SNIs), nearly 18% of which were harmonized with international 
standards. How many of those disharmonized with international standards are related to i nvestment 
access and imports of goods and services. How to minimize the limitations on trade and investment 
imposed by these national standards?  
 
Answer:  
 
Data for SNI can be accessed through: http://sispk.bsn.go.id. The link will show data on harmonized 
versus disharmonized standards. In addittion, in majority SNI related to electronic, and electrical 
equipment are adopted from IEC.  
 
Indonesia does not have SNI related to the investment and service sectors.  
 
Page 13, Para 20  
Maximum prices are set for medi cines and medical devices used in the National Health Insurance 
programme.  
 
Question : 
4. Please specify whether Traditional Chinese Medicine was included in the National Health Insurance 
Programme mentioned in this part?  
 
Answer:  
 
The Traditional Chinese Medicine was not included in the National Health Insurance Programme. Based 
on Article 52 Presidential Regulation No. 82/2018, states that health services that are not guaranteed, 
include complementary, alternative and traditional medic ine, which have not been declared effective 
based on an assessment of health technology.  
 
Page 13, Para 20  
The Government continues to stabilize the price of rice through a state -trading enterprise's (Perum 
BULOG's) guaranteed purchase of rice from domesti c producers at a set procurement price, as well as 
through import activities. Additionally, the Ministry of Trade monitors prices and, if necessary, 
undertakes some mark -up operations regarding the availability and price stability of necessities/basic 
goods.  
 
Question : 
5. Please explain in detail how the policies of set procurement price and price regulation on Indonesian 
rice are implemented, in which year the rice price support policy was implemented, the level of "set 
procurement price " in recent years,  how to determine the price as well as the launch and implementation WT/TPR/M/401/Add.1  
 
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  mechanism, and the specific content, standards and implementation of price regulation carried out by 
the Ministry of Trade.  
 
Answer:  
 
In terms of BULOG based purchase, in the 2020 there is a new Minister of Trade regulations No. 24/2020. 
Whereas, the price for government purchase proposed by BULOG then examined by MoT and discussed 
with related ministries.  
 
6. In addition to rice, does Indonesia apply price support or subsidy policies to  other agricultural 
products? If so, please explain in detail the specific practices and subsidy levels of relevant price support 
and subsidy policies.  
 
Answer:  
 
No, there is no other agricultural product that apply price supports like rice. Currently, th e products 
listed in the WTO, related to the discussion of domestic support or price support, are only for rice.  
 
Based on Presidential Regulation No. 48/2016, there are staple foods assigned by the government to 
Perum BULOG to maintain food availability a nd food price stability at the consumer and producer levels, 
namely rice, soybeans and corn.  
 
Page 13, Para 20  
There were no changes to the main legal framework for competition policy over the review period. Key 
new regulations were issued to: deal more q uickly and effectively with partnership infringements 
between MSMEs, and between MSMEs and large enterprises, including through the introduction of a 
behavioural changes provision; make improvements to the competition agency (KPPU's) case handling 
procedur es;  
 
Question : 
7. Please describe KPPU 's functions as well as department and staff arrangement.  
 
Answer:  
 
Indonesia Competition Commission/KPPU has some main duties from the Law No. 5/1999 concerning 
the Prohibition of Monopolistic Practices and Unfair Bu siness Competition, as mentioned in Article 35 of 
the Law (Law No. 5/1999) as follows:  
1. Evaluate agreements that may result in monopolistic practices and/or unfair business competition;  
2. Evaluate business activities and/or actions of business actors which may result in monopolistic 
practices and/or unfair business competition;  
3. Evaluate the existence or nonexistence of misuse of dominant position which may result in 
monopolistic practices and/or unfair business competition;  
4. Undertake actions in accorda nce with the authority of the Commission;  
5. Provide recommendation to Government policies which caused monopolistic practices and/or unfair 
business competition;  
6. Prepare guidelines and/or publications related to this Law;  
7. Submit periodic reports on the resul ts of the Commission 's work to the President and the House of 
Representatives.  
 
In 2008, the Law No. 20/2008 concerning Micro, Small, and Medium -sized Enterprises (MSME) also 
provided KPPU with additional task to supervise business partnership between MSME  and large -sized 
enterprises. Currently we have around 400 personnels, including administrative officers at our Regional 
Offices, and the number of our case handlers are around 85. The organizational structure can be 
accessed through: http://eng.kppu.go.id/organizational -structure .  
 
8. Is there an anti -unfair competition enforcement agency in Indonesia?  
 WT/TPR/M/401/Add.1  
 
- 280 - 
 
  Answer:  
 
Indonesia Competition Commission/KPPU is the only institution dealing with competition law in 
Indonesia, including the enforcement of competition law.  
 
9. Please introduce Indonesia 's trade secret protection legislation efforts. Is there a enforcement agency 
for trade secret protection?  
 
Answer:  
 
Law No. 30 Year 2000 regarding t rade secret. Enforcement Agencies for trade secret protection are Civil 
Servant Investigators (PPNS), the National Police, the Public Prosecution Office, and the Supreme Court.  
 
Page 14, Para 24  
Tax and non -tax policy instruments, in the form of land conce ssions, subsidized fertilizers, irrigation 
infrastructure improvements, concessional loans and market price support for rice, continue to be used 
for raising agricultural output, productivity and competitiveness.  
 
Question : 
10. Please explain in detail the specific content, scope, standard, and implementation mechanisms of 
Indonesia 's subsidy policies on fertilizer and other agricultural materials.  
 
Answer:  
 
On fertilizer, the government regulate the Minister of Agriculture Regulation No. 01/2020  about the 
allocation and Highest Retail Price of fertilizers in the agricultural sector. Based on that regulation, 
fertilizer support is given to farmers who are members of farmer groups with a maximum land area of 
2 hectares for 5 types of subsidized fer tilizers, namely urea, ZA (ammonium sulfate), NPK (nitrogen, 
phosphorus, potassium), SP -36 (Phosphor) and organic fertilizer (other commodities are not getting 
subsidies).  
 
Page 14, Para 26  
Regarding forestry, action was taken to, inter alia, address defor estation driven by expanding 
plantations for palm oil, through a moratorium prohibiting the conversion of primary natural forests and 
peatlands to palm oil, pulpwood and logging concessions; in addition, a social forestry programme is 
underway. The exploit ation of timber forest products of natural forests is entirely reserved for domestic 
capital. Export of roundwood and rough sawn timber for all species remains banned, to protect domestic 
wood -processing industries. Procedures for smallholders and small -and medium enterprises (SMEs) to 
obtain timber legality verification certification were eased; since 2016, Forest Law Enforcement, 
Governance and Trade (FLEGT) timber export licences have been issued. Forest law enforcement was 
strengthened, and Indonesia co mmitted to reducing its emissions from deforestation and forest 
degradation through the REDD+ mechanism.  
 
Question : 
11. Indonesia has prohibited the conversion of primary natural forests and peatlands to palm oil, 
pulpwood and logging concessions. Please s pecify the effects and how long the implementation period 
is. 
 
Answer:  
 
The effect of this policy is significant reduction in deforestation which causes a reduction in emissions 
from the forestry sector. This has been recognized by the international commu nity and Indonesia will 
receive Results Based Payment (RBP) because of its success. The moratorium policy for granting new 
permits for primary forest and peat land management has existed since 2011 and has been permanent 
in 2019 by the Government of Joko W idodo. The policy to stop issuing new permits covers an area of 
more than 66 million hectares.  
 WT/TPR/M/401/Add.1  
 
- 281 - 
 
  12. Indonesia eased the procedures for smallholders and small -and-medium enterprises (SMEs) to 
obtain timber legality verification certification. When did Indo nesia ease the procedures? What are the 
specific measures? Does the timber legality verification certification refer to the FLEGT timber export 
licence mentioned hereof ？ 
 
Answer:  
 
The implementation of the SVLK is mandatory for all business actors in the timber sector. Especially for 
SMEs, the Government makes it easy to obtain SVLK. With regard to questions from China, the answers 
can be given as follows:  
1. The facilitation of SVLK for SMEs has been provided since 2016 through MoEF Regulation 
Number  P.30 of 2016 and continued with current regulations (MoEF Regulation Number P.21 of 
2020).  
2. The forms of convenience provided by the government for SMEs include:  
a. Facilitation / assistance to finance timber legality certification;  
b. Timber legality certification validity period and more rational surveillance;  
c. Facilitating the implementation of timber legality certification in groups;  
d. Financing for the Issuance of V -Legal Documents / FLEGT Licenses; and  
e. Issuance of Supplier Conformity Declaration (DKP ) for all raw materials originating from 
cultivated wood.  
 
The SVLK policy refers to the applicable regulations in Indonesia and takes into account the FLEGT VPA 
agreement.  
 
Page 14, Para 27  
Mining and energy continue to make significant contributions to t he economy. The main policy and 
legislative framework for mining remained virtually unchanged; 100% foreign investment in the mining 
sector is allowed, subject to the foreign share ownership divestment rules on the transition from the 
pre-2009 licensing re gime to the current one. Export taxes and restrictions on minerals, to support the 
development of domestic processing facilities, were continued. A 2014 ban on exports of unprocessed 
(or not -sufficiently processed) minerals was relaxed in January 2017, sub ject to certain conditions, 
including the fulfilment of domestic market obligation (DMO) requirements. Mineral and coal sales 
benchmark prices, and the floor price for the royalty calculation, remain in place. Coal is subject to 
special pricing, DMO and tr ansport/insurance (implementation pending) requirements, to support the 
state-owned electricity company and national shipping and insurance industries.  
 
Question : 
13. Please explain the specific meaning of the policy that "coal is subject to special prici ng, DMO and 
transport/insurance (implementation pending) requirements ". 
 
Answer:  
 
There is a coal reference price for royalty payments to the Government, if the selling price is below the 
royalty, the royalty 's price will be used, whereas if it is higher,  the selling price will be used. This applies 
to both domestic and export.  
 
At the end of each year the DMO is determined for the following year by the Ministry of Energy and 
Mineral Resources.  
 
14. Will this policy affect the stability of the internation al coal supply?  
 
Answer:  
 
There will be no effect, since there is only price for royalty payments. The reference price is based on 
the coal index both in Indonesia and international. The reference price is only used as a benchmark.  
 
Page 14, Para 28  
FDI p articipation in oil and gas upstream activities is subject to limitations.  WT/TPR/M/401/Add.1  
 
- 282 - 
 
  Question : 
15. Please explain the specific scope of limitations on foreign investment.  
 
Answer:  
 
There is no limitation of foreign investment for coal. However, after production there is divestment 
process (the foreign stock that were sell to the local) gradually.  
 
16. Will this policy affect the fairness of international trade?  
  
Answer:  
 
No, becaus e it will not disturb market and international supply.  
 
Page 28, Para 1.15  
Since its last Review, Indonesia made some changes to its competition policy framework (Section 3.3.4); 
efforts were focused on, inter alia, improving the implementation by updatin g certain regulations.  
 
Question : 
17. Please introduce the main content of Indonesia 's competition policy framework. How effective is the 
implementation of competition policy?  
 
Answer:  
 
One of Indonesia Competition Commission's main duty is to provide rec ommendation to government 
policies which caused monopolistic practice and or unfair business competition, but this is not legally 
binding. The initiation of policy analysis usually comes through; (i) relevant news in media, (ii) report 
by our stakeholders,  (iii) information obtained at our meeting with the Ministries/Institutions, (iv) 
information obtained from internal market study. In analyzing the impact, we are conducting limited 
discussion forums and hearings with various related parties, inter alia, g overnment agencies 
(Ministries/Institutions), business actors and other parties as stakeholders of Law No. 5/1999. Such 
discussion activities are needed to hear the opinions of various parties on the substance as proposed in 
the policy recommendations. In addition to the above, coordination with stakeholders with regard to the 
proposed policy recommendations which include the essence, urgency, benefits, and consequences that 
must be faced with the existence of the policies is also needed. Should there is no  responses to our 
policy recommendations; we may bring the issues to mass media to gather larger attention. Other than 
providing recommendation, the Commission is also authorized to conduct policy advocacy.  
 
Since 2000 to 2019, the Commission has issued 2 14 (two hundred and fourteenth) policy 
recommendations to the Government. From all of those recommendations, 92 (ninety -two) policy 
recommendations were adopted by the Government. In 2019 alone, as a partner of the National Interest 
Team, KPPU issued 8 (ei ght) policy recommendations on national product protection policies, which have 
been implemented in the form of Anti -Dumping Import Duty and Safeguard Duty Import Duty on various 
products.  
 
Page 58, Para 2.50  
In 2018, the Government announced plans to revi se the list further by opening several activities to 
100% foreign participation. "  
 
Question : 
18. Please elaborate on the progress of the project.  
 
Answer:  
 
The government issued a Presidential Regulation on the Negative Investment List (DNI). The list of 
closed business fields and open business fields subject to regular evaluation and refinement in 
accordance with economic developments and based on studies, findings and investors' suggestions.  
 WT/TPR/M/401/Add.1  
 
- 283 - 
 
  The most recent Presidential Regulation for DNI is Pre sidential Regulation Number 44 of 2016. With the 
enactment of Law Number 11 of 2020 concerning Job Creation (Omnibus Law) mandating that further 
provisions regarding investment requirements will be regulated in a Presidential Regulation.  
 
Page 66, Para 3. 21 
During the review period, prior import verification requirements remained in place to ensure compliance 
of certain goods with the relevant legislative/regulatory provisions. Its legal framework was last changed 
in 2018. Since November 2002, KSO Sucofind o - Surveyor Indonesia (KSO SCISI) on Import Verification 
Program (VPTI) (www.scisi.co.id), an operational cooperation between two SOEs (PT Sucofindo (or PT 
Superintending Company of Indonesia) and PT Surveyor Indonesia), has undertaken these procedures 
on behalf of the MoT. The KSO SCISI maintains seven branch offices abroad (China; Singapore; 
Malaysia; Hong Kong, China; Thailand; Republic of Korea; and Viet Nam) and cooperates with nine 
affiliate surveyor firms (Bureau Veritas, Cotecna, SGS, Baltic Contro l, CIC, Alex Stewart International, 
Intertek, CWM, and OMIC). A surveyor report outlining the surveyor firm's inspection results is a 
documentary requirement for certain goods. The verification requirements' (VPTI) product coverage was 
expanded to 29 (19 i n 2013) product categories (338 items in 2020), to cover: textiles and textile 
products; nitrocellulose; rice; salt; precursors; sugar; ceramics; multifunction colour copiers and 
printers; non -hazardous and toxic waste; electronics; food and beverages; foo twear; children's toys; 
glass sheet; herbs and food supplements; hazardous and noxious substances; ozone layer -depleting 
substances; horticultural products; cell phones, handheld computers and tablet computers; apparel; 
cooling system -based goods; textiles , batik and batik motif textile products; tyres; iron and steel, alloy 
steel and their derivative products; pearls; tobacco; saccharin, cyclamate, and preparations of 
alcohol -containing odour; and hand tools. Most of these imported goods are subject to import or export 
licensing requirements (see below and Section 3.2.3.2), and some are also subject to port -of-entry 
supervision (see above). So far, Indonesia has never submitted  a pre-shipment inspection notification 
per se to the WTO (Section 2.3.1.3). During the review period, Indonesia was a respondent in WTO 
dispute settlement cases relating to, inter alia , its VPTI measures on the importation of horticultural 
products, anima ls and animal products (Section 2.3.1.1).  
 
Question : 
19. It is mentioned in Article 3.21 under "Import Verification " on page 66 that Indonesian certification 
authorities carry out measures for pre -inspection at the place of export and supervision at the po rt of 
destination for tobacco and its products. Please explain the purpose, effect, frequency and expenses for 
the implementation of the import certification measures. China has not taken any equivalent measures 
for pre -inspection of origin and supervision  at the port of destination for cigar tobacco exported from 
Indonesia.  
 
Answer:  
 
The importation of tobacco regulated through Minister of Trade No.84/2017, however the 
implementation of this regulations has been postponed. As a result, MoT has not publish ed Import 
Approval for tobacco.  
 
Page 74, Section 3.1.3.2 Applied MFN tariffs  
 
Question : 
20. Since Indonesia amended its Customs Tariffs in 2017, Indonesia 's simple average applied MFN tariff 
rate rose from 7.8% in 2012 to 10.1% in 2020; in particular, t he rates for consumer goods and 
productive inputs were raised. This seems to run counter to Indonesia 's efforts to integrate into the 
global value chain. Why did Indonesia raise tariffs?  
 
Answer:  
 
Changes in tariff posts are the impact of the HS amendment, in which the changes results are in the 
form of merging and/or creating new tariff posts. The tariff rates will be adjusted but they refer to the 
Schedule XXI - Indonesia which the rate will not exceed the bound rate that has been specified in t he 
Schedule XXI.  
 WT/TPR/M/401/Add.1  
 
- 284 - 
 
  Page 82, footnote 78  
On 6 September 2018, the MoF issued Regulation No. 112/PMK.04/2018 (PMK -112), effective on 
10 October 2018; this Regulation amended MoF Regulation No. 182/PMK.04/2016 (PMK -182) of 2016. 
PMK-112 reduced the threshold v alue, and revised some definitions and limits concerning the 
importation of tobacco and alcohol products.  
 
Question : 
21. It is mentioned in footnote 78 under "e-commerce goods de minimis exemption and imposition " on 
page 82 that "on 6 September 2018, the MoF issued Regulation No. 112/PMK.04/2018 (PMK -112)… and 
revised some definitions and limits concerning the importation of tobacco ". Please explain how the 
Regulation revised the definitions and what limits concerning the importation of tobacco product s have 
been added.  
 
Answer:  
 
As per 31 January 2020, Minister of Finance (MoF) Regulation number 112/PMK.04/2018 has been 
replaced by MoF Regulation number 199/PMK.010/2019 regarding the Provisions on Customs, Excise 
and Taxes of Consignment Goods. The af orementioned regulation includes the limitation on excisable 
goods which are allowed be imported through the consignment good, as described below:  
 
 
 
Page 87, Para 3.70  
During the period under review, recourse to safeguard action dropped but Indonesia rem ained one of 
the most frequent initiators of investigations and resulting actions. Between 2013 and 2019, it initiated 
11 safeguard investigations (20 in 2006 -12), and imposed 9 measures (11 in 2006 -12); virtually all 
measures were in the form of customs d uty (one quota) (Table 3.5). As at February 2020, 
one provisional and four (of which one extended) definitive safeguard measures were in place, and 
two investigations were underway (Table 3.5). At its previous Review, Indonesia's relatively frequent 
recour se to safeguards was attributed to greater industry awareness of the availability of trade remedies 
to counter the negative effects of trade liberalization.  
 
Question : 
22. What are the reasons and considerations for Indonesia 's recent frequent recourse to safeguards on 
imported products, especially textiles?  
 
Answer:  
 
Based on Article 5 Agreement on Safeguards, Member shall apply safeguard measure only to the extent 
necessary to prevent or remedy serious injury and to facilitate adjustment. Fur thermore, Indonesia 
retains its right and obligation under the provisions of Agreement on Safeguards.  
 
WT/TPR/M/401/Add.1  
 
- 285 - 
 
  23. In the adjudicated case of fabrics, the Indonesian authorities classified the products under 
investigation into five categories. Products in these c ategories had different product descriptions, 
materials, production techniques and use. They were non -interchangeable and involved different 
Indonesian manufacturers. However, the Indonesian authorities regarded the five categories of products 
as a whole r ather than classified them for assessment in the investigation, determined that there was a 
serious injury, and imposed tariffs on all the products under investigation. Please explain whether this 
practice complies with WTO rules.  
Answer:  
 
According to t he provision of Agreement on Safeguards Article 2.1, a Member may apply a safeguard 
measure to a product only if that Member has determined, that such product is being imported into its 
territory in such quantities, absolute or relative to domestic product ion, and under such conditions as to 
cause or threaten to cause serious injury to the domestic industry that produces like or directly 
competitive products. Indonesia is in accordance with the provisions of Article 2.1 that imposed a 
safeguard measure to a  product namely fabrics. Moreover, Indonesia retains rights and obligations 
under Article XIX of GATT 1994 and Agreement on Safeguards.  
 
24. China has always believed that inter -industry dialogues and cooperation are the better ways to 
defuse frictions and  seek win -win results than resorting to trade remedy measures. China has always 
encouraged its domestic industry to strengthen cooperation with foreign counterparts, and is willing to 
cooperate with governments of other members to build platforms for inter -industry dialogues. What is 
Indonesia 's opinion on this issue?  
  
Answer:  
 
Indonesia has always prioritized dialogue between domestic industries in the context of strengthening 
the domestic industry. Indonesia also consider strongly in maintaining fairness in international trade. 
Thus, the use of trade remedies is as the tools to take remedial action in maintaining fairness in 
internasional trade.  
 
Page 101, Para 3.91  
In 2019, the insurance business activity gave insurance protection to 46 insured companies (81 in 2018) 
and 574 buyers/contracts (678 in 2018). Indonesia Eximbank is currently repositioning its insurance 
products, and increasing failed -payment insurance.  
 
Question : 
25. What is the Indonesia Eximbank 's repositioning for its i nsurance products? What specific measures 
are taken in this respect?  
  
Answer:  
 
Indonesia Eximbank may provide insurance facilities to exporters in the event that the existing export 
insurance agencies cannot provide such insurance facilities for the expo rters or for the purpose of 
fulfilling the requirements of overseas buyers.  
 
The Insurance facility may be provided in the form of: (a) Insurance of export performance risk; (b) 
Insurance of non -payment risk; (c) Insurance of overseas investment risk for I ndonesian companies; 
and/or (d) Insurance for political risk in the export destination country.  
 
Page 102, Para 3.92  
The authorities noted that there is no regulation forbidding domestic insurance companies (including 
the ASEI) from providing services to f oreign clients.  
 
Question : 
26. Is there any precedent that ASEI provided export credit insurance for foreign enterprises? If so, is 
there any specific requirement for foreign enterprises? What types of businesses of foreign enterprises 
can be insured? How to insure the business of foreign enterprises? Is a foreign enterprise insured as an 
insurant under the policy or other modes are adopted?  WT/TPR/M/401/Add.1  
 
- 286 - 
 
  Answer:  
 
Export credit is available for all industries regardless its origin.  
  
Question : 
The excise taxes on different types of tobacco products in Indonesia in 2020 are itemized in Table 3.16, 
while it is mentioned in Table 3.17 that the excise tax rates on certain tobacco products reached 57%.  
27. Please explain whether the excise tax rates on tobacco products in Indonesia is ad valorem, specific 
or compound rates. Which tobacco products were levied at the excise tax rate of 57%?  
 
Answer:  
 
According to MoF Regulation number 198/PMK.010/2020, the excise tariffs for tobacco products are 
determined by specific rate (IDR per cigarette/gram).  
 
However, for Other Tobacco Processing Products, as explained in aforesaid regulation, are produced 
from tobacco leaves other than cigarettes, cigars, and shredded tobacco, which are made differently 
according to the technological developments and consumer taste, regardless the substitute or additional 
ingredients used in the production process includes toba cco extract and tobacco essence (in the form of 
stick, cartridge, capsule and liquid), molasses tobacco, snuffed tobacco, or chewing tobacco, the excise 
tariffs are determined by Ad valorem Rate (57% of Retail Prices).  
 
28. As the only country in Asia that  has not acceded to the WHO Framework Convention on Tobacco 
Control (WHO FCTC), what measures does the Indonesian government take for tobacco control?  
 
Answer:  
 
Although Indonesia has not yet ratified the WHO FCTC, but the Government of Indonesia has issu ed 
Government Regulation No. 109 year 2012 concerning Control of Materials Containing Addictive 
Substances of Tobacco Products in the interest of Health. The aforesaid regulation is aiming to prevent 
the addictive substances of tobacco products from endang ering the health of individual, family, 
community and environment.  
 
Page 123, Para 3.153  
As indicated in a recent World Bank Group report, the Indonesia Competition Commission (KPPU) (see 
below): cannot perform unannounced inspections to gather evidence at  the premises of firms 
investigated for anti -trust infringement; cannot act against firms located abroad, even if their behaviour 
directly affects competition and/or consumers in domestic markets, resulting in limited detection of 
cartels by the KPPU; and has limited deterrence powers, with maximum penalties being a lot lower than 
comparable agencies in other jurisdictions. The report also notes that, in the absence of a formal 
feedback mechanism from the Government, the impact of the KPPU's opinions on pol icy-making are 
unclear.  
 
Question : 
29. How has the above issue affected the enforcement practices of KPPU? Are there measures in place 
for improvement?  
 
Answer:  
 
Based on the current Omnibus Law on Job Creation (Law Number 11 Year 2020), the maximum fines 
for competition violation is no longer stipulated and the minimum fines is IDR 1 Billion. In this regard, 
GOI will issue an Implementing Regulation to stipulate the calculation of fines. As for strategy to tackle 
KPPU limited enforcement power, formal coop eration is being undertaken with other law enforcers such 
as the National Police, Commission for Corruption Eradication, and relevant Ministries/Institutions to 
obtain necessary data and or information, also KPPU still under discussion to reactivating the 
amendment of the law to maximize the enforcement practice for the long run.  
 
Page 149, Para 4.9  WT/TPR/M/401/Add.1  
 
- 287 - 
 
  During the review period, the share of agriculture (including food and agricultural raw materials under 
SITC Rev.3 definition) in total merchandise exports rose  slightly, from 23.7% in 2012 to 25.7% in 2019 
(Table A1.3). Palm oil is the main agricultural export, representing over 40% of total agricultural exports. 
However, its share declined from 2012 to 2019, mainly due to increased exports of tobacco products 
and cocoa. Imports of agricultural products also increased, from 10.9% of total imports in 2012 to 
13.4% in 2019 (Table A1.4); imports are much more diverse than exports, although the top five (wheat, 
oilcake, sugar, cotton, and soybeans) represent 35% of t otal imports.  
 
Question : 
30. In Article 4.9 on page 149, the increased imports of tobacco products to Indonesia during the TPR 
period (2012 -2019) were mentioned. Please specify the product type, export volume, year -on-year 
increase and country of export of  tobacco products exported by Indonesia in 2019.  
 
Answer:  
 
The value of tobacco exports (which partly or wholly stemmed or stripped, otherwise unmanufactured) 
in 2019 amounted to USD 141.1 million or increased 39.42% from 2018. The product was mainly 
exported to Singapore, Belgium, Germany, Dominican Republic, and Sri Lanka.  
 
Page 195, Para 4.179  
During the review period, MFN average tariff protection for textiles and textile articles (HS Section 11) 
and footwear, headgear, etc. (HS Section 12) and peak rates were raised significantly to 15.3%, with a 
peak of 35% (10.8%, peak rate 15% in 2012) and 16.4% with a peak 30% (13.9%, peak rate 25% in 
2012), respectively (Section 3.1.3.2, and Tables 3.2 and A3.1);these rates considerably exceed both 
the overall applied MFN average (10.1%, 2020) and the average for manufacturing. In 2020, there was 
an average gap of 14.1 percentage points and 22.7 percentage points between the average MFN applied 
and the bound rates in textiles and textile articles, and fo otwear, headgear, etc., respectively.  
 
Question : 
31. Please provide the reasons for the significant increase in tariff rates of textiles, footwear and 
headgear.  
 
Answer:  
 
The increase in tariff rates of textiles, footwear and headgear is due to the emerging differences on 
applied tariff rates after the transposition of HS Classification from HS 2012 to HS 2017, as well as due 
to the increase in the volume of imported goods through import of consigned goods mechanism, thus 
requiring provisions on cust oms, excise and taxes on imported goods.  
 
Page 222, Para 4.270  
Finally, retail trading via mail or Internet order (for goods under the categories of food, beverages, 
tobacco, pharmaceutical products, cosmetics, laboratory devices, textiles, apparel and foo twear, and 
household and kitchen goods) was previously closed to foreign investment; under the 2016 negative 
list, it is permitted, subject to partnership with SMEs.  
 
Question : 
32. It is mentioned in the negative list on page 222 that retail trading via ma il or Internet order for 
tobacco products is permitted. Please explain the distribution channels of tobacco products and the 
current situation of foreign -invested wholesale and retail terminals.  
 
Answers:  
 
In principle, the importation of tobacco is allow ed with consideration between tobacco farmers and 
tobacco industry in Indonesia. In terms of copperation and distribution, the scheme is still under internal 
discussion of MoA.  
 WT/TPR/M/401/Add.1  
 
- 288 - 
 
  PART II: QUESTIONS REGARDING THE POLICY STATEMENT  
 
Page 8, Para 2.19  
Numerous  sectors that had been previously closed or conditionally open to foreign investment were 
removed from the 2016 NIL. These sectors are now 100% open to foreign investment. Notable sectors 
which are now entirely open to investment include, among others, tra de activities (such as direct selling, 
distribution affiliated with production and futures brokerage), and hospitality and health services (such 
as production of pharmaceutical raw materials and hospital management services).  
 
Question : 
1. As it mentioned, the production of pharmaceutical raw materials are now entirely open to foreign 
investment, whether the Traditional Chinese Medicine can also be produced in Indonesia by foreign 
investment?  
 
Answer:  
 
Currently, based on Presidential Re gulation Number 44/2016, traditional medicines industry (KBLI 
21022) is closed for foreign investment. Meanwhile, the production of raw materials for traditional 
medicines (KBLI 21021) is open for FDI. In terms of Chinese traditional medicine production ca n not be 
done in Indonesia  
 
Page 21, Section 4.2.10 Trade Facilitation  
 
Question : 
2. It is mentioned in the policy statement on page 21 that Indonesia implemented trade facilitation 
reforms since February 2018, including shifting border supervision to post -border supervision. However, 
in terms of actual effects (Table 4.1), the import c learance time and document compliance cost have 
not been improved. Please elaborate the reasons and how to make further improvement in the future.  
 
Answer:  
 
The post border supervision policy has been implemented by the relevant Ministries and Agencies. The 
policy has contributed positively to Indonesia's logistics performance.  
 
This is shown in Table 4.1, Indonesia EoDB rank, especially on the aspect of Trading Across Border 
indicators related to Time Needed for Documentary Compliance (Import and Export ) has reduced 
significantly since 2015.  
 
Furthermore, Indonesia will continue to optimize the National Logistic Ecosystem (NLE) program with 
the aim of improving the logistics ecosystem and accelerating the whole process of imported goods ' 
clearance time which includes pre -clearence, customs clearance and post -clearance.  
 
PART III:  OTHER QUESTIONS  
 
1. Please explain in detail how the policies of set procurement price and price regulation on Indonesian 
rice are implemented, in which year the rice price sup port policy was implemented, the level of "set 
procurement price " in recent years, how to determine the price as well as the launch and implementation 
mechanism, and the specific content, standards and implementation of price regulation carried out by 
the Ministry of Trade.  
 
Answer:  
 
In terms of BULOG based purchase, in the 2020 there is a new Minister of Trade regulations No. 24/2020. 
Whereas, the price for government purchase proposed by BULOG then examined by MoT and discussed 
with related ministries.  
 WT/TPR/M/401/Add.1  
 
- 289 - 
 
  2. In addition to rice, does Indonesia apply price support or subsidy policies to other agricultural 
products? If so, please explain in detail the specific practices and subsidy levels of relevant price support 
and subsidy policies.  
 
Answer:  
 
No, there is no other agricultural product that apply price supports like rice. Currently, the products 
listed in the WTO, related to the discussion of domestic support or price support, are only for rice.  
 
Based on Presidential Regulation No. 48/2016, there are staple  foods assigned by the government to 
Perum BULOG to maintain food availability and food price stability at the consumer and producer levels, 
namely rice, soybeans and corn.  
 
3. Please explain in detail the specific content, scope, standard, and implementa tion mechanisms of 
Indonesia 's subsidy policies on fertilizer and other farm inputs.  
 
Answer:  
 
On fertilizer, the government regulate the Minister of Agriculture Regulation No. 01/2020 about the 
allocation and Highest Retail Price of fertilizers in the ag ricultural sector. Based on that regulation, 
fertilizer support is given to farmers who are members of farmer groups with a maximum land area of 
2 hectares for 5 types of subsidized fertilizers, namely urea, ZA (ammonium sulfate), NPK (nitrogen, 
phosphorus , potassium), SP -36 (Phosphor) and organic fertilizer (other commodities are not getting 
subsidies).  
 
4. Please introduce Indonesia 's civil aviation management system and authority division, as well as the 
law and regulation systems of civil aviation.  
 
Answer:  
 
Indonesia 's civil aviation management system is regulated by the Ministry of Transportation under the 
Regulation of Minister of Transportation number PM 62 of 2017. The technical unit of the Ministry of 
Transportation responsible for a dministering the civil aviation management system is Directorate 
General of Civil Aviation. The law and regulation systems of civil aviation management system in 
Indonesia are stipulated based on Indonesia 's national needs/interests as well as internationa l standards 
or best practices.  
 
5. Please introduce Indonesia 's airport management system, regulations on the ownership and control 
of civil airports, and relevant laws and regulations on airports.  
 
Answer:  
 
Indonesia 's airport management system is regula ted by the Ministry of Transportation under the 
Regulation of Minister of Transportation number PM 69 of 2013. The technical unit of the Ministry of 
Transportation responsible for administering the airport management system is Directorate General of 
Civil Aviation. The law and regulation of airport management system in Indonesia are stipulated based 
on Indonesia 's national needs/interests as well as international standards or best practices.  
 
6. How does Indonesia define public air transport and general avi ation? Are there different economic 
and safety management policies and relevant laws and regulations on public air transport and general 
aviation?  
 
Answer:  
 
According to Law Number 1 of 2009 on Civil Aviation, Indonesia does not differentiate between publ ic 
air transport and general aviation, and it is defined as every activity using airplane to transport 
passenger, cargo and/or postal goods for one trip or more from an airport to another (one or several) 
airport(s).  WT/TPR/M/401/Add.1  
 
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  7. Please provide Indonesia 's policies and models for the management of transport charges and fees for 
public air transport and general aviation.  
 
Answer:  
 
With regard to the policies on any charges and fees related to any public services given by the 
Government of Indonesia, the follo wing considerations are put in place:  
 a.  the impact of imposed fees/charges to the general public and business;  
 b.  the actual costs incurred to deliver such services;  
 c.  fairness; and/or  
 d.  Government policy.  
 
8. What supportive policies does the I ndonesian Government take for regional aviation, international 
routes, general aviation and cargo aviation? Please elaborate the sources of funds, and subsidy 
standards and methods.  
 
Answer:  
 
In this regard, the Government of Indonesia take policies that benefit Indonesia 's people and businesses 
the most as well as regional needs. The sources of funds on this matter are annual state budget 
administered by the Ministry of Transportation.  
 
9. Are there any policy to regulate subsidies for domestic air transp ort, and are there any policy to 
restrict subsidies for air transport of other countries?  
 
Answer:  
 
There are no specific subsidies given for domestic air transport. Indonesia does not interfere with other 
countries policies unless they have negative impac t(s) on Indonesia 's people and businesses.  
 
10. Please provide Indonesia 's policies for the management of flight times, and methods and procedures 
for obtaining flight times.  
 
Answer:  
 
In this regard the related regulation in Indonesia is contained in Reg ulation of Minister of Transportation 
number PM 69 of 2013. The regulation itself is stipulated based on Indonesia 's national needs/interests 
as well as international standards or best practices.  
 
11. Please elaborate on Indonesia 's airspace management sys tem and air traffic control operation mode.  
 
Answer:  
 
In this regard the related regulation in Indonesia is contained in Regulation of Minister of Transportation 
number PM 69 of 2013. The regulation itself is stipulated based on Indonesia 's national needs/interests 
as well as international standards or best practices.  
 
12. Are there any restrictions on foreign investments in such civil aviation transport services as general 
aviation, air traffic control and aviation fuel in Indonesia? Plea se introduce the legal basis for industry 
administration and the administration on market access for foreign investment in the aforesaid fields. 
Are there any restriction on the access to and the legal basis for civil aviation services other than those 
mentioned above?  
 
Answer:  
 
Foreign investors in civil aviation transport services must establish a national business entity in the field 
of commercial air transportation, and follow the existing provisions and regulations on (i) Law No. 25 of 
2007 concerning Investment ( "Capital Investment Law "), (ii) Aviation Law (Law No.1/2009), and (iii) WT/TPR/M/401/Add.1  
 
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  Minister of Transportation Regulation No. 45 of 2015 concerning Requirements for Business Entity 
Capital Ownership in the Field of Transportation.  
 
13. What are the scope, respective management responsibilities and legal basis for Indonesia 's civil 
aviation authority and other relevant authorities in anti -monopoly investigations in the field of civil 
aviation?  
 
Answer:  
 
Indonesia civil aviation services adheres to the princi ples of openness and anti -monopoly (Art 2 Law 
No. 1/2009). Business operations and respective management in the field of aviation are responsible to 
achieve National objectives that provide the greatest possible benefits to the people, Nation and State.  
 
The Government also perform Civil Aviation development which, among others, covers the aspect of 
supervision including anti -monopoly investigation conducted by the Indonesia Competition Commission 
(KPPU).  
 
14. How to define the role of foreign -invested ent erprises and joint ventures in the process of the 
upgrading and development of all industries, and what changes have been made in the specific policies 
of relevant industries?  
 
Answer:  
 
The role of foreign investment for Indonesia includes the funding in various sectors, opening up jobs, 
transfer of technology, the possibility of foreign investor cooperation with MSMEs, increasing state 
revenues and maintaining a more stable economic relationship between the two countries. In the 
regulatory framework, the Capital Investment policy (2015 -2019) targeted 3 things, 1) Increasing the 
Legal Certainty of Investment; 2) Improving Investment Services and 3) Revising Laws and Regulations 
on Investment. Some concrete corrective steps taken by the Government include re laxation of the 
Negative Investment List through Presidential Regulation Number 44 of 2016, Improving regulations in 
support of Ease of Doing Business and implementing the Online Single Submission (OSS) System.  
 
15. Please provide changes in import and exp ort tax rates and policies of industrial raw materials, spare 
parts and finished products in the process of promoting the upgrading of Indonesia 's manufacturing 
industry.  
 
Answers:  
 
Most of the increase in import duty rates was made for certain goods that are categorized as consumer 
goods. This policy is carried out by the government to maintain economic growth. This policy does not 
conflict with or exceed Indonesia's bound rate commitment at the WTO.  
 
For goods that are included in the FTA schem e and have been agreed upon, this policy does not apply 
and refers to the agreement as long as it meets the preferred tariff requirements.  
 
In regard to the customs duty exemption for industrial raw materials, spare parts and finished products 
in the proce ss of promoting the upgrading of Indonesia 's manufacturing industry is stipulated according 
to Article 25 and 26 of Customs Law No. 17/2006.  
 
16. Indonesia does not recognize CB test reports held by Chinese enterprises. Samples must be tested 
by Indonesia 's local testing institutions for exporting electrical and electronic products to the country. 
Similarly, factory inspection must be conducted by Indonesia 's local inspection agencies, not by others. 
As a consequence of COVID -19, manufacturers are unable to  receive sample testing or factory inspection 
from Indonesia 's local agencies, resulting in the expiration of certificates and affecting the exports of 
products to Indonesia.  
 
Is there any plan that Indonesia recognize CB test reports and factory inspectio n results held by Chinese 
enterprises? During the pandemic, enterprises are not able to receive testing or inspection by WT/TPR/M/401/Add.1  
 
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  Indonesia 's local institutions. For such an issue, will there be policies and measures to maintain the 
validity of relevant certificate s and ensure smooth exports?  
 
Answer:  
 
For mandatory SNI, it is regulated by related regulators, through designation which also includes policies 
for the pandemic situation through circulated letter.  
 WT/TPR/M/401/Add.1  
 
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  THAILAND  
PART I: QUESTIONS REGARDING THE GOVERNMENT  REPORT  
 
1. OVERVIEW  
 
Paragrapgh 1.2 (Page 3)  "In the period between 2015 -2018, the expansion of domestic economic 
activities resulted in the creation of an additional 9 million jobs. The unemployment rate fell to 5.34% 
in 2018, compared to the 5.94% level in 2014. On the other hand, GDP per capita continued to increase 
from USD 3,531 in 2014 to USD 3,927 in 2018, equaling to GNI per capita of USD 3,820. The poverty 
level lowered to a single digit (9.82% in 2018), a tribute to the effectiveness of pove rty prevention 
programmes. Furthermore, a Gini ratio of 0.389 in 2018 compared to 0.414 in 2014 testified a reduction 
in income inequality. As to the Human Development Index (HDI), it recorded an increase from 68.9 in 
2014 to 71.39 in 2018. " 
 
Question  
• Please provide the key policy that government launched to promote investment during 2015 -2018 
which expanded the domestic economic activities and created an additional 9 million jobs.  
 
Answer:  
 
Based on the national mid -term development plan and the strategic plan of the Indonesia Investment 
Coordinating Board (BKPM) for the period 2015 -2019 there are several policies  addressed to increase 
investment by the Government, such as: (1) encouraging Investment in Priority Sectors and located 
outside Java; (2) Increasing the participation of SMEs through partnerships with FDI/DDI; (3) Increasing 
the effectiveness of Promotion strategies and efforts; (4) Increase the role of the planner as an 
investment development integrator; (5) Utilization of International  Economic Cooperation to increase 
investment; (6) Facilitating accelerated investment in the infrastructure sector through the PPP scheme; 
(7) Increase the attractiveness of investment through fiscal and non -fiscal incentives; (8) Facilitating 
obstacles th at are faced by investors (debottlenecking); (9) Providing convenience, certainty and 
transparency in licensing and non -licensing services; (10) Developing SPIPISE to support regional 
investment services office or PTSP; and (11) Increasing legal certainty and simplifing licensing and 
non-licensing procedures.  
 
2. ECONOMIC DEVELOPMENT  
 
2.1 Macroeconomic Performance  
 
Paragraph 2.1 (Page 4)  "Despite the ongoing global economic turmoil that has caused a reduction in trade 
volume and slowed down economic growth, the Indonesian economy managed to demonstrate a positive 
performance up to the first semester of 2019, with consumption growth, government spending realization, 
and positive net export contributions as the leading driving forces. " 
 
Question:  
What is the top sector which plays an important role to demonstrate a positive performance of 
Indonesian economy up to the first semester of 2019?  
 
Answer:  
 
There are 4 top sectors that remain the leading activity and key driver to Indonesia economy such as 
construction, trade, and agriculture.  
 
4. TRADE AND TRADE RELATED POLICY  
4.2 Sectoral Policies  
4.2.2 Fisheries  
 
Paragraph 4.9 (Page 16)  "In an effort to combat illegal, unreported and unregulated (IUU) fishing, 
Indonesia sets very strict measures, and cont inues a zero -tolerance policy for IUU fishing as stipulated WT/TPR/M/401/Add.1  
 
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  in Law of the Republic of Indonesia No. 31/2004 as amended by Law of the Republic of Indonesia 
No. 45/2009 on Fisheries. Furthermore, the Agreement on Port State Measures to Prevent, Deter and 
Eliminate IUU Fishing (PSMA) adopted in 2016 acts as an additional legal instrument that deters IUU 
fishing activities. The positive impacts of combating IUU fishing came in the form of an increased fish 
stocks to 12.54 million tonnes in 2016, and an increase d prosperity of fishermen. In combatting IUU 
fishing, Indonesia has also cooperated with many partner countries and entities, both bilaterally or 
multilaterally, and through international forums. " 
 
Question:  
• According to paragraph 4.9, please kindly explain what the key improvements are in the amended 
Law of the Republic of Indonesia No. 45/2009 on Fisheries.  
• Please kindly explain what the measures to protect fishermen are. Are those measures equally 
applied to foreign fishermen?  
 
Answers:  
 
• Law No. 45/2009 is more focused on the aspect of fisheries resource management (sovereignty, 
sustainability, prosperity) and anticipating development on necessary laws (on IUU Fishing activity) 
and technology development.  
• To protect fishers, the Government of Indo nesia implemented policies on human rights certification 
for fisheries sector and working on seas agreement for fishing vessel crew. This policy also applies 
to foreign fishing vessel crew.  
 
Paragraph 4.10 (Page 16)  "In developing its fisheries industry, I ndonesia offers opportunities to foreign 
investors to conduct fisheries -related businesses, such as cold storage services, processing and 
aquaculture. Incentive includes providing investors with assurance on the sustainability of fisheries 
business in the fish processing industry as long as the fishery business is in the possession of a 
Processing Business Permit (SIUP). " 
 
Question  
• According to paragraph 4.10, please kindly explain how Indonesian government oversees supply 
chain in fishing industry.  
 
Answer:  
 
Supply chain management on fisheries industries, one of which through National Fish Logistic System 
(Sistem Logistik Ikan Nasional/SLIN) which contain fish stock and fisheries product chain management 
system, production materials and eq uipments, and information from acquisition, storage, to distribution.  
MMAF monitor that system, from acquisition, storage, transportation, and distribution of fish and 
fisheries product, production materials and equipments in fisheries sector.  
 
Supply chai n from the perspective of food quality and safety also regulated from upstream to 
downstream through certification of Good Handling Practices on Fishing Vessels, Good Aquaculture 
Practices, Goo Handling Practices, processing qualification certification and  HACCP certification.  
 
Paragraph 4.12 (Page 16)  "Indonesia will continue its efforts to strengthening sustainable fisheries 
management including the eradication of IUU fishing and destructive fishing; strengthening sustainable 
aquaculture; improving compet itiveness and added value of fish and fish products; increasing fisheries 
business and investment; calling up marine and fisheries industry; strengthening human resource 
capacities, innovation, research and technology; as well as developing marine -based re gional approach. " 
 
Question  
• According to paragraph 4.12, please kindly elaborate on the policies to strengthen human resource  
capacities. Are those policies cover foreign fishermen?  
 WT/TPR/M/401/Add.1  
 
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  Answer:  
 
As recent development, Indonesia have ratified on 2 April 2019, the International Convention on 
Standards of Training, Certification and Watchkeeping for Fishing Vessel Personnel (STCW -F) which 
regulates education and training standards, crew certification, and watchkeeping on fishing vessels.  
 
4.2.7 Micro, Small  and Medium -Sized Enterprises (MSMEs)  
 
Paragraph 4.33 (Page 19)  "In addition, Indonesia is also amongst the top five economies in the world 
with the most numbers of start -ups. The number of Indonesian start -up companies has reached 2 ,150 in 
2019. Four star t-up companies from Indonesia, namely Tokopedia, Traveloka, Bukalapak, and OVO have 
become unicorns, start -ups with valuations above USD 1 billion or equivalent to IDR 14 trillion. Go -Jek 
is the largest start -up company in Indonesia, which is now a USD 10 billion – or equivalent to 
IDR 140 trillion – decacorn. " 
 
Question  
• Does Indonesia face with challenges from the foreign e -commerce or start -ups?  
• What is the most concern of Indonesian start -ups and MSMEs? and how the government react to 
support them?  
 
Answer:  
 
The challenges faced by Indonesia in terms of foreign e -commerce start up for instance the 
representatives of foreign e -commerce in Indonesia are still low and the needs for Indonesian 
government to get the information of trade data owned by e -commerce player or foreign start -up for 
monitoring.  
 
One of the concerns attributed to the MSMEs in Indonesia is the impact of COVID -19 Pandemic such as 
the decreasing of market demand and difficulties in accessing online platform. the government has 
responde d through the encouragement for buying MSMEs product and socialization of human resources 
empowerment as well as preparation for export.  
 
Paragraph 4.36 (Page 19)  "There are some other programmes and policies for MSMEs provided by the 
Government, which inc lude programmes and policies on financing and taxation. The main financing 
programme from the Government is called 'People Business Credit Program' or 'Kredit Usaha Rakyat 
(KUR)', which is intended to empower and encourage MSMEs to develop their business c ompetitiveness " 
 
Question  
• Please provide more information of the "People Business Credit Program " which supports MSMEs to 
cope with the challenges from e -commerce.  
 
Answer:  
 
People business credit program recipient used capital improvement for improvement capacity 
production. Related to e -commerce, the challenge of MSMEs is digital literacy.  
 
Paragraph 4.37 (Page 20)  "The Government, through the Central Bank of Indonesia (Bank Indonesia), 
also issued Bank Indonesia Regulation No. 17/12/PBI/2015,  which obliges commercial banks to integrate 
a minimum ratio of MSMEs financing in their credit activities " 
 
Question  
• Please advise the policy that the Government of the Central Bank of Indonesia would apply in 
promoting financial support for MSMEs  
 
Answer :  
 
In view of the strategic role of MSMEs, one of Bank Indonesia's policies for MSME is developing a healthy 
MSME ecosystem, with an end -to-end process of coaching from production; preparation of simple WT/TPR/M/401/Add.1  
 
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  financial statements; management; to marketing. The goal of this policy is to expand access to MSMEs 
to broader markets and financing.  
 
Bank Indonesia as The Central Bank provides support to MSMEs by creating information media/website 
namely INFO UMKM. Various information on MSME commodities, as well as inf ormation on banking 
products and services are available on the website including MSMes' commodities, patterns of MSME 
cluster development, Government program credit schemes, business consultations, financial success 
stories, and profiles of feasible MSMEs debtors.  
 
4.28 Intellectual Property Rights  
 
Paragraph 4.43 (Page 20)  "On 17 August 2019, Indonesia launched an online system for registration of 
patent, trademark, and industrial design. Indonesia has also regulated intellectual property law 
enforcement under Government Regulation No. 20/2017 on Import Control of Goods 
Allegedly/Originated from Infringement of Intellectual Property, and Minister of Finance Regulation 
No. 40.PMK.04/2018 on Recordation, Affirmative Action, Warranty, Temporary Su spension, Monitoring 
and Evaluation to Control Import and Export of Goods Suspected Infringing or Results from Intellectual 
Property Infringement. Currently, DGIP is conducting improvements to the online IP services, such as 
receiving online report on infr ingement to satisfy public needs and provide wider access for the public 
to intellectual property services. "  
 
Question  
• What is the procedure after IP infringement is reported online?  
 
Answer:  
 
Online system has the same procedure when IP infringement is reported. After receiving online report, 
we will conduct an examination of requirements and inviting complainant/witness for clarification, then 
we will process the requirements and issued report of complainant if all the requirements compl eted. 
 
• What action does Directorate -General of Intellectual Property (DGIP) take after receiving the report?  
 
Answer:  
 
Following the Report of Complaint, administrative process is carried out (to issue Assignment of 
Surveillance and Observation (WasMat) to commence the investigation by surveillance and observation. 
At this stage, investigator will come place where an infringement allegedly occurred, interview 
complainant, complaint witness, expert witness. After this process is carried out, preli minary hearing is 
conducted to define whether the Report is adequate for further process of investigation. If it is adequate, 
Minutes of Preliminary Hearing and Report of Case (Pro justitia) are drafted. Otherwise, Notification on 
the Results of Surveillan ce and Observation is sent to the Complainant.  
 
PART II: QUESTIONS REGARDING THE SECRETARIAT REPORT  
 
1. ECONOMIC ENVIRONMENT  
1.2 Recent economic developments  
1.2.4 Structural Policies  
1.2.4.4 Labour Market Policies  
 
Paragraph 1.16 (Page 28 -29) "During the review period, reforms in several areas were undertaken; 
nevertheless, Indonesia seems to be one of the lower -middle -income economies in East Asia and the Pacific 
with the most rigid employment regulations, particularly on hiring. The legislatio n makes it difficult for 
employers to discharge workers who have been employed continuously for at least three months.42 The 
practice of outsourcing is restricted. In 2015, a new and uniform method for setting the minimum wage was 
established. Since 2017, employers are required to formulate a pay scale or salary structure, detailing how 
salaries are determined for a particular company, taking into account employees' work experience, 
education, position, job description, and other factors. Employment of fore igners continues to be allowed 
only in positions that locals cannot fill, and only if regular and systematic training is provided so that WT/TPR/M/401/Add.1  
 
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  Indonesians can eventually replace them; the need for approval of the foreign manpower utilization plan 
(rencana pengg unaan tenega kerja sing — RPTKA) and stringent foreign -to-domestic worker ratios remain 
in place.46 In 2018, procedures for the employment of foreigners were simplified; these were implemented 
on 11 July 2018 (Minister of Manpower Regulation No. 10/2018). The Government aims to integrate the 
foreign employment permit process, including approval by the RPTKA, into an online single submission 
system (Section 2.4) in the near future. Furthermore, the regulatory framework regarding certain positions 
that may be  occupied by foreign workers in several sectors was revised; previous relevant Decrees of the 
Minister of Manpower were revoked, and a list of positions in various business fields where foreign employees 
can be employed, to be evaluated every two years or when needed, was put in place. " 
 
Question  
• Please give some examples of social protection measures to preserve employment during COVID -19 
crisis.  
 
Answer:  
 
During the Covid -19 pandemic, Indonesia provided social safety nets for Workers who suffer the 
Termination of Employment (PHK), coaching/training through the Pre -Employment card program, as 
well as tax discount facilities for Employers so that the company could survive until the situation starts 
to normalize.  
 
3.1.5 Import Prohibitions, Restrictions , and Licensing  
3.1.5.1 Import Prohibitions and Quantitative Restrictions  
 
Paragraph 3.57 (Page 84)  "During the review period, Indonesia continued to explicitly or implicitly restrict 
imports of some products (e.g. carcass meat, feed corn, horticultural products, rice, cloves (until 2015), 
sugar, milk, salt, alcoholic beverages, fertilizer, and ozone -depleting substances) through licensing and 
state trading requirements (Section 3.1.5.2, and Table A3.4). In 2018, new restrictions regarding t he 
import of rice were introduced; importers of rice to be used as raw materials were not allowed to import 
some forms of rice (HS codes 1006.30.30, 1006.30.40, and 1006.30.99), as these products may only be 
imported by state -owned companies. At the time o f the previous Review, imports subject to quantitative 
restrictions on rice, sugar, animals and animal products, salt, alcoholic beverages and certain 
ozone -depleting substances were in place. The authorities indicated that import volumes are determined 
annually, at ministerial -level coordination meetings, and take into consideration domestic production and 
consumption forecasts. " 
 
Question  
• Will Indonesia revise its trade policies regarding import restrictions of these products in the near 
future?  
 
Answer:  
 
In principle, Indonesia is not imposing restriction policy on importation that will affect international 
trade. Nevertheless, there is always possibility to revise regulations to improve the quality of Indonesian 
trade policy.  
 
• Apart from those products subjected to import licensing requirements in Table A3.4, are there 
any other products that Indonesia plans to explicitly, or implicitly restrict imports through licensing?  
 
Answer:  
 
Indonesia does not issue a regulation on import restriction nor any intention to restrict any forms of 
import licensing.  
 WT/TPR/M/401/Add.1  
 
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  Table A3.4 (Page 240)  
 
 
Question  
• Thailand would like to know the details of the Regulation of the Ministry of Agriculture of the 
Republic of Indonesia No. 39/2019 for issuing the Import Recommendation of Horticulture Product as 
follows:  
1.  The validity of such regulation.  
2. The details of rules, procedures and conditions before issuing an Import Recommendation of 
Horticulture Product, which indicates in the article 15 of such regulatio n. 
 
Answer:  
 
The details of the Regulation of the Minister of Agriculture No. 39/2019 referring to the regulation of the 
minister of agriculture No. 2 of 2020 regarding RIPH.  
 
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and Phytosanitary Requirements  
3.3.3.2 SPS Measures  
3.3.3.2.3 Horticulture  
 
Paragraph  3.144 (Page 121)  "As indicated by the authorities, changes to rules on import 
recommendations for horticultural products over the review period were to facilitate importation. Import 
procedures, including import licensing requirements, are contained in Table A3.4. Port of entry 
requirements for the import of horticultural products are set out in Ministry of Agriculture (MoA) Decree 
No. 42 of 2012, and those for fres h fruit, fresh vegetables and fresh bulbs in MoA Decree No. 43 of 
2017. Quarantine regulations for plants did not change over the review period, and are set out in 
GR No. 14 of 2002 concerning Plant Quarantine. Fees for quarantine, testing and inspection a re 
contained in GR No. 35 of 2016 on Non -Tax Revenue to be Paid by Importers. " 
 
Question  
• According to Paragraph 3.144., the changes to Indonesia 's rules on import recommendations for 
horticultural products primarily focus on facilitating importation. However, it appears that the Ministry 
of Agriculture has issued such a limited number of Import Recommendation of Horticulture Products 
(RIPH). Does Indonesia have any plan to revise the process of issuing Import Recommendation of 
Horticulture  Products (RIPH) for some horticulture products in the near future?  
 
Answer:  
 
Indonesia haven 't any plan to revise the process of issuing Import Recommendation of Horticulture 
Products (RIPH) for some horticulture products in the near future.  
WT/TPR/M/401/Add.1  
 
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  • According t o regulation concerning import licensing requirements of horticultural product, we 
would like to seek clarification on the criteria for determining the quantity of imported horticultural 
product and relevant regulation mentioning such criteria.  
 
Answer:  
 
Indonesia would like to reaffirm that Indonesia does not issue a regulation on restriction quotas for 
imports.  
 
3.3.3.2.6 Halal Requirements  
 
Paragraph 3.151(Page 122)  Under the 2014 Halal Product Assurance Law and its implementing 
regulation, GR No. 31 of 2019, all halal products sold on the Indonesian market must obtain certificates 
from the newly established Halal Products Certification Agency (BPJPH), under the Mini stry of Religious 
Affairs. Previously, certification was voluntary, and was undertaken by the Indonesian Ulema Council. 
Since 2019, halal certification requirements have applied to food and beverages, and will be introduced 
for other products over the peri od 2021 -26 (Section 3.3.2.5). As indicated by the authorities, all halal 
certificates issued by foreign halal certifier bodies (LHLNs) that cooperate with the BPJPH can be 
accepted; as at mid -2020, there were 45 LHLNs in 26 countries. Importers must regist er halal 
certificates with the BPJPH, and place the registration number on the package before the product may 
be distributed in Indonesia. As noted in Section 3.3.2.5, various concerns about the implementation of 
this law were raised in the WTO TBT Committ ee, including with respect to labeling requirements and 
certification requirements.  
 
Question  
• BPOM has been restricting Foreign Halal logo on product 's packages. We therefore would like to 
inquire about the conformity/consistency between this BPOM Regulat ion and the BPJPH regulation 
on Halal certification body of foreign countries as well as clarification on this Foreign Halal logo 
restriction.  
 
Answer:  
 
Halal Label provisions have been regulated from Article 138 to Article 141 Minister of Religious Affairs  
Regulations No. 26/2019. For foreign halal institutions that have collaborated with BPJPH can use halal 
labels issued by foreign halal institutions (ar ticle 140).  
 
• We would like to inquire about the detailed information on the practice of importation of halal 
product, e.g., Responsible agency for halal certification and renewal process for recognizing halal 
certification bodies in the foreign countries, during the COVID -19 pandemic.  
 
Answer:  
 
The mechanism for registering and issuing halal certificates for imported products during the COVID -19 
pandemic is still the same, which can be carried out in a conventional way (direct) or online. However, 
the inspe ction/audit is carried out through online (virtual).  
 
3.3.7 Intellectual Property Rights  
3.3.7.2 Copyright  
 
Paragraph 3.227 (Page 143)  "The substantive changes to the Copyright Law include: (i) definitional 
changes, to prevent and/or avoid multiple perceptions or legal interpretations; (ii) clarification of 
provisions related to exclusive rights of authors, copyright holders and related ri ghts owners; exceptions 
and limitations to these exclusive rights are also administered; (iii) revisions to the object of protected 
works, exceptions, and terms of protection for applied art; (iv) revisions to provisions on licensing; (v) 
provisions on mor al rights of performers, economic rights of performers, terms of protection for related 
rights, and technology protection measures in accordance with the Beijing Treaty; (vi) provisions on 
court injunctions to ensure the "applicable" principle is satisfied ; (vii) provisions on the establishment 
of CMOs, ensuring management or exploitation of copyright and related rights by users in accordance WT/TPR/M/401/Add.1  
 
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  with prevailing legal norms/principles; (viii) electronic documents to be allowed to be used as admissible 
evidence in copyright disputes; (ix) provisions on corporations as perpetrators; and (x) provisions on 
copyright in information and communication technology. Additionally, the term for copyright protection 
was extended from 50 to 70 years after the author's death, criminal sanctions were increased, and the 
Law allows for the e -filing of copyright recordings. " 
 
Question  
• What is the rationale for extending the term of copyright protection from 50 to 70 years after the 
author 's death? Is it resulted from the existing or on -going FTAs with trading partners?  
 
Answer:  
 
The reasons for extending the term of copyright protection are threefold: First, the extension of 
copyright protection is to comply with the provisions under the Berne Convention as set out in the 
Convention that the minimum protection is 50 years after the author 's death and could be longer terms. 
Even though 50 years protection has already complied with the Convention; however, with the intention 
to provide equal treatment for Indonesian citizens as well as to the citizens of other member states of 
the Berne Convention. In other words, the second reason for such extension is the intention to follow 
"National Treatment " principle. And the final reason for such extension is to allow maximum economic 
benefits from the works. By extending the protection to 70 years after the author 's death, copyright 
holder or its heir will be given opportunity to obtain greater economic benefits from the protected works.  
 
4. TRADE POLICY BY SECTOR  
 
4.4 Services  
4.4.6 T ourism  
 
Paragraph 4.258 (Page 219)  "A new initiative to develop international medical tourism in Indonesia was 
launched through an MOU between the ministries of tourism and creative economy and of health, in 
2017. This reportedly involves policy and programme coordination and harmonization, medical tourism 
improvement and development, information and data exchange, and monitoring and evaluation. It was 
later followed up by the issuance of a health tourism catalogue and a fitness travel book.  To boost 
international tourist arrivals, in 2015, the MoT issued MoT Regulation No. 121, which includes a cabotage 
waiver so that foreign cruise ships may embark and disembark passengers at appointed seaports 
(Tanjung Priok in Jakarta; Tanjung Perak in Surabaya; Ta njung Benoa in Bali; Belawan in Medan; and 
the Makassar Sea Port in Makassar); previously, they were only allowed to anchor. Additionally, the 
number of countries from which citizens can travel visa -free for 30 days to Indonesia was increased 
from 45 in 20 15 to 169. " 
 
Question  
• Apart from the MOT Regulation No. 121, giving priority to foreign cruise ships, are there any 
Regulation to support the moving of patient by air medical transportation in the domestic medical 
treatment? In Addition, would there be any priorities relating to foreign investment in medical 
tourism in Indonesia?  
 
Answer:  
 
Apart form the MOT Regulation No. 121, there are no other regulation specifically that support the 
moving of patient by air medical transportation in the domestic med ical treatment. However, there is a 
Medical Evacuation guideline published by Ministry of Health (Minister of Health Regulation No 75/2019 
on Health Crisis) including Air Ambulance as one of transportation methods in an event of emergency.  
 
4.4.7 Distribution Services with a Specific Focus on E -commerce  
 
Paragraph 4.273 (Page 222)  "Under GR in Lieu of Law No. 1 of 2020, the Government may charge VAT 
on taxable intangible goods and/or services sold through e -commerce platforms, and charge income tax  
on e-commerce done by foreign individuals or digital companies that have a significant economic 
presence. " WT/TPR/M/401/Add.1  
 
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  Question  
• Can Indonesia please provide further information and details on VAT and/or tax relating to goods 
and services mentioned in section 4.273, p articularly how would Indonesia enforce such a law in the 
case of when foreign companies supply goods and/or services from outside of Indonesia?  
 
Answer:  
 
Basically, Indonesia has already implemented the imposition of VAT on digital products, such as the of 
intangible taxable goods and taxable services from outside Indonesia, which is stipulated in the VAT 
law. However, in the mechanism regulated in the law was that the VAT payable should be collected, 
deposited, and reported by the Indonesian end consumer  on a self -assessment basis.  
 
In the digitalized era, many consumers in Indonesia now acquire and use services and goods over the 
Internet, including from overseas sellers. Such imports of digital products to consumers in Indonesia by 
overseas sellers do n ot include VAT, creating an uneven playing field to domestic businesses. To rectify 
this, effective 1 July 2020, Indonesian government releases regulation regarding a new mechanism to 
collect VAT from imported digital products. In that new measure, the imp osition of VAT is still the same 
as the previous law, that the VAT is imposed on the utilization in Indonesia of intangible taxable goods 
and taxable services from offshore. The tax rate has not changed, at 10%.  
 
Nevertheless, different from the previous law, the mechanism in this new measure is that VAT will now 
be collected and paid by overseas businesses. Technically, only sellers who meet certain thresholds will 
be appointed by the Director General of Taxes as the e -commerce VAT collector. The threshol ds are:  
a. amount of transactions amount with Goods Customer and/or Service Recipient in Indonesia 
exceeding certain amount in 12 (twelve) months; and/or  
b. number of traffics or users in Indonesia exceeding certain number in 12 (twelve) months.  
 
It is important to note that the e -commerce VAT collector oblige to collect, remit, and file the VAT 
payable after being appointed.  
 
ADDITIONAL QUESTIONS THAILAND  
2 TRADE AND INVESTMENT REGIMES  
2.2 Trade Policy Formulation and Objectives  
2.2.2 Trade and Related Policy Objectives  
 
Paragraph 2.12 (Page 40)  "The implementation of the Master Plan is set out in three phases, to achieve 
the long -term vision of industrial development. The first phase (2015 -19) included: increasing the added 
value of natural reso urces in agricultural, mineral, and oil processing upstream industries; and 
selectively developing supporting and anchoring industry through preparing skillful and competent 
human resources, and increasing the mastery of technology. The second phase (2020 -24) is aimed at 
achieving competitive advantage and environmentally friendly industries through strengthening 
industrial structure and technological mastery supported by qualified human resources. The third phase 
(2025 -35) is aimed at making Indonesia a st rong industrial country with a sound and deep industrial 
structure that is globally competitive, innovative and has technology bases. " 
 
Questions  
• According to the first phase of the Master Plan (2015 -19), can Indonesia provide a specific 
information on how  to increase the added value of natural resources in agricultural? And how to 
measure the results of the plan?  
 
Answer:  
 
One example is the Rural Industry Development program by increasing exports of the agricultural sector. 
The way to measure the results of the plan is through the Key Performance Index (KPI) in the related 
technical directorates.  
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  • According to the second phase of the Master Plan (2020 -24), can Indonesia provide an information 
on how to achieve a competitive advantage and environmentally fr iendly in the field of agriculture 
and agricultural industry?  
 
Answer:  
 
Achieving Competitive Advantage is carried out by increasing exports, especially the estate subsector. 
Meanwhile, to achieve environmentally friendly is through Climate Smart Agriculture and the 
development of buildings to mitigate the impacts of climate change.  
 
3. TRADE POLICIES AND PRACTICES BY MEASURE  
 
3.1 Measure Directly Affecting Imports  
3.1.1 Customs Procedures, Valuation, and Requirements  
3.1.1.2 Customs Valuation  
 
Paragraph 3.31 (Page 72)  "To combat under -invoicing and mis -invoicing (see below), Indonesia continues to 
maintain two databases of market prices for customs valuation purposes: the Customs Value Database I; and 
the Customs Value Database II. Th e declared customs value is classified based on a fairness test as: reasonable, 
if the value is lower by no more than 5%, the same or higher than that the value of identical goods in the 
Customs Value Database I; or unfair, if the customs value is lower by  more than 5% of the value of identical 
goods in Database I. The INSW webpage refers, without detailed information, to Administrative Measures 
Affecting Customs Value relating to Minimum Import Prices, Reference Prices and Other Administrative 
Measures Aff ecting the Customs Value, n.e.s. Reportedly, the DGCE relies on a schedule of reference prices 
("price checks") to assess duties on some imports (e.g. food products) rather than using transaction values; 
the DGCE Director General seemingly makes a valuatio n assessment based on the perceived risk status of the 
importer and the average price of a same or similar product imported during the previous 30 or 90 days. In 
addition, it seems that the DGCE does not publicize the list or the methods used to arrive at those prices. During 
the review period, under -invoicing ranged from 46,411 (2018) to 63,719 (2017) cases per year, and foregone 
tax revenue from IDR 756 trillion (2016) to IDR 1,163.6 trillion (2018); it affected parts and accessories of the 
motor vehicles , plastic goods, and handbags with an outer surface of sheeting of plastic or of textile material. " 
 
Questions  
• Would it be possible for Indonesia to explain how to conduct a "fairness test "? And how 5% is 
selected to be a benchmark to identify whether the declared customs value is "reasonable " or 
"unfair "? 
 
Answer:  
 
Fairness test is conducted by comparing the transaction value declared by the importer with the price 
database.  
 
The percentage  range of 5% is statistically justified and fair to be used for early identification of fair 
customs value range.  
 
• Could Indonesia share more of how "reference price " has been derived and used for "price check "? 
 
Answer:  
 
Indonesia uses reference price in  the database as a risk -assessment tool to assist customs officers 
during customs clearance process to examine the risk of undervaluation and/or abnormality of the 
declared customs value.  
 
Indonesia does not use price database to determine customs value. The database is only used as a 
risk-assessment tool for customs officer. The determination of customs value refers to Article VII GATT.  
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  Moreover, WCO has a guideline related to the reference price known as the Customs Valuation Data 
Base which is a risk assessment tool to assess the potential risk of the customs value declared by the 
importer. However, this tool is not used to determine the customs valuation.  
 
3.1.2 Rules of Origin  
 
Paragraph 3.33 (Page 73)  "Indonesia does not apply non -preferential rules of origin (ROOs). Its 
preferential ROOs, based on the wholly obtained or wholly produced criterion and the substantial 
transformation criterion termed as not wholly obtained or produced, are set out in its RTAs (e.g. ATIGA, 
ASEAN -China FTA, ASEAN -Australia-New Zeeland FTA, ASEAN -Korea FTA, ASEAN -India FTA, and ASEAN -
Japan CEP) (Sections 2.3.2 and 3.1.3.5). Product -specific preferential ROOs remain as follows: the good 
must be wholly produced or obtained; the good must have a regional value content of not less than 40% 
or a change in tariff subheading (CTSH) (for ATIGA and all ASEAN Plus FTAs, except the ASEAN -India 
FTA), and 35% plus CTSH (for the ASEAN -India FTA); all non -originating materials used in the production 
of the good must have undergone a c hange in tariff classification for the majority of the product -specific 
rules, or at the 2 -digit or 6 -digit level for certain products; or all non -originating materials used in the 
production of the good must have undergone specific processing. " 
 
Question  
• As mentioned in paragraph 3.33, "the good must have a regional value content of not less than 40% 
or a change in tariff subheading  (CTSH) (for ATIGA and all ASEAN Plus FTAs, except the ASEAN -India 
FTA)", Thailand would like to suggest Indonesia to use the  word "or a change in tariff heading (CTH)  
in order to be consistent with the General Rule of the ASEAN Trade in Goods Agreement (ATIGA) 
and the current Free Trade Agreement between ASEAN and its dialogue partners.  
 
Answer:  
 
Indonesia appreciates input f rom Thailand and Indonesia has been implemented of General Rules in 
Issuing Authority and Receiving Authority, as below  
"the goods must have a regional value content of not less than 40% or a change in tariff heading (CTH) 
in order to be consistent with th e General Rule of the ASEAN Trade in Goods Agreement (ATIGA) and 
the current Free Trade Agreement between ASEAN and its dialogue partners " except for ASEAN -India 
FTA. 
a. ATIGA: RVC 40% or CTH  
b. ASEAN -China FTA: RVC 40% or CTH  
c. ASEAN -Korea FTA: RVC 40 % or CTH  
d. ASEAN-JAPAN CEP: RVC 40 % or CTH  
e. ASEAN -Australia -New Zealand FTA: RVC 40% or CTH  
f. ASEAN -HongKong, China FTA: RVC 40% or CTH  
g. ASEAN -India FTA: RVC 35% and CTSH  
 
3.3.6 Government Procurement  
3.3.6.3 Procurement Methods  
 
Paragraph 3.195 (Page 134)  "The tendering process for selection/tenders involves the following steps: 
implementation of qualifications; announcement and/or invitation; registration and collection of election 
documents; briefing; submission of bid documents; evaluation of bid documents; d etermination and 
announcement of winners; and objections. For the selection of providers for construction works, there 
is an additional appeal stage. " 
 
Question  
• As mentioned in paragraph 3.195, does it mean that only construction works can appeal? Please 
clarify, and explain more about appeal mechanism and appeal process if goods and services 
providers would like to file complaints.  
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  Answer:  
 
Yes, for the selection of providers for construction works there is an additional appeal stage. Appeal 
stage conduc ted when the Provider feels the result of the objections is not sufficient.  
  
For selection of other type of procurement, there is an objection stage. Objection is a plea from selection 
participants to the procurement working unit when they assumed being u nfairly treated by the results 
of the tender.  
 
Paragraph 3.196 (Page 134)  "For "quick tenders", tender participants which are already qualified under 
the Provider Performance Information System may submit an offer price; the determination of winners 
is bas ed on the lowest price proposal. "  
 
Question  
• As mentioned in paragraph 3.196, for "quick tenders ", tender participants which are already 
qualified under the Provider Performance Information System may submit an offer price; the 
determination of winners is based on the lowest price proposal. What are requirements for foreign 
suppliers in order to participate in Provider Performance Information System?  
 
Answer:  
 
At the moment, the Provider Performance Information System only consists of domestic suppliers.  
 
4. TRADE POLICY BY SECTOR  
 
4.1 Agriculture, Forestry, and Fisheries  
4.1.2 Policy, Regulatory and Institutional Developments  
 
Paragraph 4.14 (Page 151)  "Since 2016, a government assistance programme, Registration for Growing 
Young Agricultural Entrepreneurs (Penumbuhan Wirausahawan Muda Petani (PWMP)), monitored by the 
MoA, aimed at increasing production, productivity, and quality of food crops to advance agriculture and food 
self-sufficiency, has been in place. The assistance provided under the  programme is in the form of agriculture 
"awards" (money); other financial aid; grants for agriculture extension; agricultural machinery; and 
infrastructure/materials to establish farming areas. The PWMP is run by the Indonesian Agency for 
Agricultural Ext ension and Human Resources Development (Badan PPSDM Pertanian). " 
 
Question  
• Can Indonesia provide more information on the PWMP, how to achieving for Agricultural Extension and 
Human Resources Development? And how to measure a result?  
 
Answer:  
 
Since 2016, the Ministry of Agriculture has implemented an Entrepreneurial Growth (PW) program to 
encourage students to become young agricultural entrepreneurs. The program has trained 1 ,654 youth 
farmers from 500 youth groups, consisting of students from the Ag ricultural Education Vocational High 
School (SMK PP) and students of the Agricultural Education College (STPP), as well as alumni from the 
Faculty of Agriculture and Animal Husbandry. The PWMP program is divided into three stages, starting 
from the followi ng stages: (i) awareness and growth; (ii) independence; and (iii) development. Where 
each stage is carried out for one year. In its implementation, this program involves Higher Education 
and Agricultural Extension Colleges. Each group of young agricultural  entrepreneurs that have been 
formed (consisting of three to five people) will be given an injection of funds of approximately 35 million 
per group and supervision from the Government and the University in running their business.  WT/TPR/M/401/Add.1  
 
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  TURKEY  
THE GOVERNMENT REPORT  
 
4.2.7 Micro, Small and Medium -Sized Enterprises (MSMEs) – para 4.35 - pg. 19.  
 
It is stated in the Government Report that "The Government has developed several regulations to 
encourage the growth of electronic commerce in Indonesia, one of them is Presidential Regulation No.  74 
of 2017 concerning the Road Map of the 2017 -2019 Electronic -Based National Trading System. The 
regulation contains directions and steps to achieve the government's goal of creating 
1,000  technopreneurs by 2020, with a valuati on of USD 10 billion and e -commerce transactions of 
USD 130 billion. In addition, the government also issued the 14th NEPP, which is an initiative related to 
the ease in expanding access to technology -based start -up funding, consumer protection, and human 
resource education. " 
 
Question: Could Indonesia further elaborate on the outcomes and performance of the "Road Map of 
the 2017 -2019 Electronic -Based National Trading System " policies adopted by the Government?  
 
Answer:  
 
We endeavor some programs to enhance the SMEs competitiveness in digital era that will enable them 
to on boarding in e -commerce.  
 
1. Presidential Regulation No. 74 of 2017 Concerning on Roadmap for National Electronic Commerce 
(E-Commerce) for 2017 -2019 was established to provide strategic direction and guidance in 
accelerating the implementation of The Roadmap of E -Commerce in Indonesia in the period of 
2017-2019. The Roadmap consists of 62 outputs with 7 main pillars, namely: Funding; Taxation; 
Consumer Pro tection; Human Resources Education; Communication Infrastructure; Logistics; and 
Cyber Security into several line Ministries/Agencies, and other relevant institutions.  
2. This regulation has been able to encourage e -commerce development in Indonesia. The road map 
aforementioned is in the form of action plan (to -do-list) which is effective and straightforward in 
providing assignments to related appointed Line Ministries and Agencies to collaborate in developing 
e-commerce. Until the end of this regulation existe nce in 2019, 54 out of 62 action plans have been 
completed.  
3. Some outputs from the completed Roadmap are the drafting and the finalization of Presidential 
Regulation No. 80 of 2019 concerning on Trading Through Electronic Systems as well as Minister of 
Trade Regulation No. 50 of 2020 concerning on Terms of Business Licensing, Advertising, Coaching, 
and Supervising Business Actors in Trade through the Electronic System as the derivative regulation, 
and the Presidential Regulation No. 71 of 2019 regarding the Implementation of Electronic System 
and Transaction. Along with the implementation of those regulations, thus some important aspects 
in e-commerce such as consumer protection and the implementation of healthy business competition 
can be ensured.  
4. This regul ation has also produced outcomes, not only government regulations and ministerial 
regulations, but also technical and sustainable programs (such as socialization, capacity building, 
and assistance in human resources). As a follow -up, the Government of Indo nesia understands that 
the scope of this Presidential Regulation is still limited coupled with massive developments in digital 
era. E -commerce regulation becomes less relevant because the current issue shifts into digital 
economy. Therefore, the Government  is currently preparing a more comprehensive and 
forward -looking Digital Economy Strategy for Indonesia lead by the Coordinating Ministry of 
Economic Affairs.  
 
THE SECRETARIAT REPORT  
 
4.4.6 Tourism -  para. 4.258 - Pg. 219.  
 
It is stated in the Secretariat R eport that " A new initiative to develop international medical tourism in 
Indonesia was launched through an MOU between the ministries of tourism and creative economy and 
of health, in 2017. This reportedly involves policy and programme coordination and ha rmonization, WT/TPR/M/401/Add.1  
 
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  medical tourism improvement and development, information and data exchange, and monitoring and 
evaluation. It was later followed up by the issuance of a health tourism catalogue and a fitness travel 
book.339 To boost international tourist arri vals, in 2015, the MoT issued MoT Regulation No. 121, which 
includes a cabotage waiver so that foreign cruise ships may embark and disembark passengers at 
appointed seaports (Tanjung Priok in Jakarta; Tanjung Perak in Surabaya; Tanjung Benoa in Bali; 
Belaw an in Medan; and the Makassar Sea Port in Makassar); previously, they were only allowed to 
anchor. Additionally, the number of countries from which citizens can travel visa -free for 30 days to 
Indonesia was increased from 45 in 2015 to 169. " 
 
Question:  Could Indonesia provide detailed information about the new initiative developed by Indonesia 
regarding the international medical tourism?  
 
Answer:  
 
Medical tourism focus on wellness.  
 
ADDITIONAL QUESTIONS TURKEY  
2.3.2 Regional and preferential agreements  
 
It is stated in the Secretariat Report that, "In addition to the ASEAN Free Trade Area and the AFAS, 
Indonesia is a signatory to six other ASEAN RTAs, with: China; India; Japan; the Republic of Korea; 
Australia -New Zealand; and Hong Kong, China  (Table 2.5). During the review period, the ASEAN -India 
Free Trade Area was expanded to cover trade in services. The ASEAN -Hong Kong, China Investment 
Agreement was signed on 18 May 2018 and entered into force on 17 June 2019. In 2012, ASEAN 
countries init iated the negotiation of the Regional Comprehensive Economic Partnership (RCEP) with 
their six ASEAN FTA partners (Australia, China, India, Japan, the Republic of Korea, and New Zealand). 
The negotiation includes trade in goods and services, investment, ec onomic and technical cooperation, 
intellectual property, competition, dispute settlement, e -commerce, SMEs, and other issues. As at 
November 2018, negotiating countries were determined to conclude a modern, comprehensive, 
high-quality, and mutually benefic ial RCEP in 2019. In November 2018, the ASEAN members concluded 
an Agreement on Electronic Commerce (Section 4.4.7). They also participated in the negotiation and 
implementation of several ASEAN agreements/regulations, including those on: rules of origin f or the 
ASEAN -China Free Trade Area; rules of origin for the ASEAN -India Free Trade Area; and further 
liberalization of goods under sensitive lists under the ASEAN -Korea Free Trade Area and the 
ASEAN -China Free Trade Area. The implementation of recommendati ons from the ASEAN -Australia -
New Zealand FTA's General Review commenced in April 2019. " 
 
Question:  
Could Indonesia further explain expected future benefits and costs of RCEP agreement, implementation 
schedule of agreement and related financial programmes?  
 
Answer:  
 
Benefits . There are ample of expected economic gains of the RCEP Agreement from Indonesia 's 
perspective, namely:  
• The Agreement consolidates five FTAs between ASEAN and its partners under the ASEAN Plus One 
FTA, which will provide more certainty and uniformity of trade rules across its members.  
• RCEP agreement can increase export and strengthen the regional and global  value chain. In the next 
five years, RCEP is predicted to contribute to 8 to 11 percent increase of Indonesia 's export, and 
between 18 to 22 percent increase for Indonesia 's foreign direct investment.  
• RCEP includes chapters that does not exist in previou s FTAs, such as e -commerce, competition, 
intellectual property rights, and MSMEs, and therefore are more relevant to the current global 
economic environment.  
• There is also potentials of a "spill-over effects " from FTAs that RCEP member countries have with  
non-RCEP countries, which will increase export by 7.2%.  
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  Cost. There are also challenges of the RCEP Agreement to Indonesia. The possibility of rising imports 
and higher market competition are to name a few. However, this will be faced by all RCEP partici pating 
countries – not just Indonesia, and will be experienced in any other FTAs. Such challenges should be 
seen in a more balanced way, as it may also bring benefits in itself. The key is to how all RCEP Signatories 
can capitalize the RCEP regional value chains and establish the RCEP "power house " to capture not only 
the RCEP markets but also the global markets. Additionally, based on a study Indonesia has conducted, 
the cost of not joining RCEP can be larger than the cost of joining.  
 
2.4.6 Investment tre aty developments  
 
It is stated in the Secretariat Report that, "Indonesia maintains 24 active bilateral investment treaties 
(BITs) (out of 63 signed BITs); no new BITs have been signed since 2008. Between 2013 and 2015, 
Indonesia formally notified more tha n 20 of its BIT partners that it would discontinue these treaties; 
this move was in order to allow the authorities to align their provisions with latest legislation before 
renewal. As at April 2020, Indonesia was involved in new BIT negotiations with Switz erland, and was 
also finalizing those with Singapore and the United Arab Emirates. " 
 
Question:  
Could Indonesia provide further information about the planned investments agreements after the 
current negotiations?  
 
Answer:  
 
Indonesia will conduct cost and benefit analysis regarding the potential countries to make investment 
agreements. Indonesia will assess the level of urgency, that also include the option to complement, to 
amend, or to replace the existing treaties  
 
3.3.2.5 Labelling  
 
It is stated in the Secretariat Report that "New mandatory labelling (and certification) requirements are 
being progressively introduced for halal products under the Halal Product Assurance Law No. 33 of 2014 
and its implementing regulation, GR No. 31 of 2 019. Halal products include: food and beverages; 
traditional medicines and health supplements; medicinal products; cosmetics; chemical products; 
genetically engineered products; clothing, headgear and accessories; household appliances; Muslim 
worship equip ment; stationary and office equipment; and goods for medical devices in risk classes A, 
B, and C. "  
 
Question:  
Does Indonesia have a work program for the clarification of these products? In other words, will 
Indonesia share HS codes of the products subject  to the Halal Product Assurance Law?  
 
Answer:  
 
The work program regarding Halal regulation has already been notified to WTO under G/TBT/N/IDN/123 
including the coverage products and the transition period of the new halal regime.  
 
Currently, the regulation regarding halal certification including the hs codes is still under review, in order 
to be in line with omnibus law of job creation.  
 
3.3.3.2.6 Halal Requirements  
 
It is stated in the Secretariat Report that "Under the 2014 Halal Product Assurance Law and its 
implementing regulation, GR No. 31 of 2019, all halal products sold on the Indonesian market must 
obtain certificates from the newly established Halal Products Certification Agency (BPJPH), under the 
Ministry of Religious Affairs. Previously, certification was voluntary, and was undertaken by the 
Indonesian Ulema Council. Since 2019, halal certification requirements have applied to food and 
beverages, and will be introduced for other products over the perio d 2021 -26. As indicated by the 
authorities, all halal certificates issued by foreign halal certifier bodies (LHLNs) that cooperate with the WT/TPR/M/401/Add.1  
 
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  BPJPH can be accepted. Importers must register halal certificates with the BPJPH, and place the 
registration number on the package before the product may be distributed in Indonesia. " 
 
Question:  
Could Indonesia provide additional information regarding the certification and recognition process of 
foreign halal certification bodies, document requirements, costs and timeli nes? 
 
Answer:  
 
The flow of Halal certification mechanism in Indonesia is as follow:  
 
 
 
The cooperation mechanism for mutual recognition and acceptance with foreign halal institutions, and 
the document requirements, is in accordance with the provisions of Article 26 - Article 28 GR 
No. 31/2019 and Article 21 - Article 23 Minister of Religious Affairs Regulation No. 26/2019.  
 
Question:  
What will be the fees for halal certification? Is there a study regarding this issue?  
 
Answer:  
 
The regulation regarding fees/cost for both registration of halal certification, registration of halal 
certificates from foreign halal institutions, as well as applications for mutual recognition and mutual 
cooperation with foreign halal institutions are s till under discussion which based on previous studies and 
implementation.  
 
3.3.5.2 SOEs and privatization  
 
It is stated in the Secretariat Report that "To boost private players' participation in the economy, SOEs 
have been encouraged to procure a certain amount of their supply from SMEs. SOE procurement of 
goods and services has been regulated by the Minister of SOEs' general guidelines since 2008; SOEs 
are not subject to general government procurement rules (Section 3.3.6). In 2019, changes were made 
to these guidelines, with a view to improving procurement objectives, making procurement more 
competitive, transparent and accountable, and simplifying contractual arrangements, so as to allow 
parties the freedom to regulate contractual rights and obligations while observing legal and regulatory 
requirements and good corporate governance. "  
 
WT/TPR/M/401/Add.1  
 
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  Question:  
Could Indonesia provide information on whether there are advantages conferred to domestic suppliers 
compared to their foreign counterparts in terms of procurement to SOE 's? Are there average figures 
available on the market shares of domestic and foreign procurers of SOE 's? 
 
Answer:  
 
The aforementioned program is still a pilot project under the Ministry of SOEs for the recovery of the 
national economy dur ing Covid -19 pandemic, especially for the recovery of the MSME sector. There are 
nine SOEs participating in the project worth under IDR 14 billion (USD 1 million), available only for 
MSMEs.  
 
3 INTERNATIONAL TRADE ENGAGEMENT  
 
It is stated in the Government  Report section 3.2 that "By the end of the time period covered in this 
trade policy review, Indonesia had implemented four bilateral trade negotiations, namely the 
Indonesia -Pakistan PTA, the trade in goods component of the Indonesia -Chile CEPA, the 
Indon esia-Japan EPA, and the Indonesia -Australia CEPA. Three bilateral negotiations were in the 
ratification stage, namely Indonesia -EFTA CEPA, Indonesia -Mozambique PTA, and Indonesia -Korea 
CEPA… ". Besides this, in section 3.7 that "Beyond, the ASEAN and their six free trade agreement 
partners (China, Korea, Japan, Australia, New Zealand, and India) have worked together in negotiations 
on Regional Comprehensive Economic Partnership (RCEP)… "  
 
Question:  
Could Indonesia explain how RCEP will affect the validity o f its individual trade agreements with the 
RCEP members, namely Japan, Australia and Korea? If the RCEP won 't affect these agreements, could 
Indonesia further explain the differences of these agreements from RCEP?  
 
Answer:  
 
The RCEP Agreement is an agreeme nt to broaden and deepen ASEAN 's engagement with Australia, 
China, Japan, Korea and New Zealand. It updates the coverage of the existing ASEAN Plus One FTAs 
(ASEAN 's FTAs with the five dialogue partners) and takes into consideration changing and emerging 
trade realities, including the age of electronic commerce, the potential of micro, small and medium 
enterprises, competition, intellectual property rights, the deepening regional value chain, and the 
complexity of market competition. If we look into details , there are some coverage of the ASEAN+1 FTA 
that is not covered in the RCEP Agreement, and vice versa (for example, in terms of the market access 
commitments). Therefore, RCEP and the 4 ASEAN+1 FTAs are complementary to each other rather.  
 
While the RCEP Agreement includes many areas that were not previously covered in the ASEAN Plus 
One FTAs and has the added value of bringing together a single rulebook to help facilitate the 
development and expansion of regional supply chains among Parties, the ASEAN+1 F TA provides a 
platform for its member to expand their partnership that might not be possible under the RCEP 
Agreement. For example, the AANZFTA is currently undergoing its general review, which may go beyond 
RCEP in some of its areas.  
 
4.2.5 Public Stockholding (PSH)  
 
It is stated in the Government Report that "In Presidential Regulation (Perpres) No. 48/2016, the 
Government has defined the type of staple food, in addition to rice, that must be maintained in terms 
of supply availability and price sta bility, namely corn, soybean, sugar, cooking oil, wheat flour, red 
onion, chili, beef, chicken meat, and eggs. Therefore, these products are considered as staple foods, 
and are justified candidates to be included in the PSH product coverage. " 
 
Question:  
Could Indonesia clarify whether there is an implementation program to extend the scope of PSH in terms 
of product coverage or is it only at regulation phase as a safeguard at the moment?  
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  Answer:  
 
Yes, but such scope of PSH is still discuss internally.  
 
4.2.11 Information and Communication Technologies (ICT)  
 
It is stated in the Government Report that "On improving supporting facilities for e -commerce, the 
Government has in place three main programmes, namely: (1) digital economy ecosystem; (2) content 
management system; and (3) cyber governance. The digital economy ecosystem programme targets 
on improving the ecosystem for digital start -ups, facilitating MSMEs, fishermen, and farmers to go 
online, as well as facilitating the development of smart city. The content management system 
programme targets on increasing digital literacy and internet content management skills of the general 
public in order to prevent the proliferation of contents that violate Indonesia's law. While the cyber 
governance programme aim s at improving the monitoring system over electronic transaction, ensuring 
respect for data privacy, and conducting further studies and evaluation of digital platforms. " 
 
Question:  
Could Indonesia further explain the support facilities for e -commerce, spec ifically the digital economy 
ecosystem programme? Does this programme contain provisions on developing cross -border 
e-commerce?  
 
Answer:  
 
Some programs supporting the development of the digital economy ecosystem as follows:  
a. Speeding up internet connection throughout Indonesia, such as the completion of the Palapa Ring 
project, which can reach all districts and cities in Indonesia;  
b. Facilitating MSMEs, fisherman, and farmers to go online, and smart city by several programs such 
as business matchmaking, collab oration with start -up partners, and assistance to develop smart city 
master plan.  
 
Those digital economy programs indeed promote cross -border e -commerce. As a matter of fact, the 
fisherman go online program participants regularly export their products to t he US, the Philippines, and 
Japan.   
 WT/TPR/M/401/Add.1  
 
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  ICELAND  
Questions:  
 
1. What is the participation of women in the economy of Indonesia?  
 
Answer:  
 
Women have strong contribution in the economic sector especially in the micro, small and medium 
enterprises which account 99% of the total enterprises in the country and 98% of them are owned or 
lead by women. Micro, small and medium -scale enterprises provide significant labor opportunities and 
are greatly contributing to gross domestic income of 57.83%.  
 
2. Have specific barriers that limit women 's participation in trade been identified?  
 
Answer:  
 
Some barriers faced by women to access and join GVCs, such as:  
a. Socio -economic disparity (lack of support from family to do business, difficult to manage time 
between t heir household and business, heavy household responsibilities, religious, cultural, 
traditional and legal norms barriers);  
b. Infrastructural challenges (affordability of connectivity and handset devices since women have 
relatively lower incomes and less fin ancial independence, difficult to get business license);  
c. Limited understanding on digital platform (lack of digital literacy, technical and social skills);  
d. Lack of access to capital (financial support from bank, high interest rate) ; and  
e. Barriers to parti cipating in e -commerce.  
 
3. Has Indonesia implemented any specific measures to encourage women 's participation in trade and 
promote women 's entrepreneurship, or are such measures being developed?  
 
Answer:  
 
To encourage women 's participation in trade and promote women 's entrepreneurship, the Ministry of 
Women Empowerment and Child Protection (MoWECP) has created a programme under Ministerial 
Decree No. 2/2016 concerning general guidelines for home -based industry development to improve 
family welfare throug h empowering Women.  
 
MoWECP provides programme which facilitates development of home -based industry model including 
mapping industry players in villages, facilitating capacity building and technical assistance, and assisting 
to promote business. The objec tives of the program are to: 1) end violence to women and children; 
2) end human trafficking; and 3) end the gap of economic access for women.  
 
4. Are the effects of trade policy on women and men measured and monitored, and if so how?  
 
Answer:  
 
Monitoring and  evaluation are conducted through strengthening equal participation of both men and 
women in the economic sector. This activity is measuring per -capita expense, percentage of women in 
professional sector and women 's contribution to income.  
  
 
 WT/TPR/M/401/Add.1  
 
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  CAMBODIA  
Question from Cambodia  
 
"What measures has Indonesia introduced to maintain investment during and after COVID -19?" 
 
Answer:  
 
In response to Covid -19 Pandemic, GOI has made several efforts to maintain investment and economic 
recovery during the Covid -19 Pandemic included: Maintaining consumption levels through consumption 
stimulus, subsidies for low -income families and fiscal incentives for tourism -related industries; 
Encouraging investment through tax incentives, customs duties, stimulus for Peo ple's Business Credit 
in the form of credit / financing for working capital and / or investment in MSMEs; Export -Import 
assistance through tax incentives, customs clearance, Import Facilities for Export Purposes, acceleration 
of the export and import proce ss for credible companies. BKPM's strategies to maintain the investment 
climate during the COVID -19 pandemic include facilitating existing companies that are already 
operating, facilitating the potential for existing companies that have not been executed, making efforts 
to bring in new investment and providing incentives for existing companies that are expanding.  WT/TPR/M/401/Add.1  
 
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  MEXICO (TPRQA)  
4. Trade Policies By Sector  
4.4 Services  
4.4.4 Telecomunicaciones  
4.224  
 
1. En este párrafo se indica que en la Ley General de Creación de Empleo (sección 2) se proponen 
diversas modificaciones a la Ley de Telecomunicaciones, las cuales permitirían a los operadores de 
telecomunicaciones compartir y transferir el espectro previa  autorización del Gobierno central.  
 
¿Podría Indonesia profundizar sobre cuáles son estas modificaciones propuestas en la Ley General de 
Creación del Empleo que tendrían un impacto en la Ley de Telecomunicaciones?  
 
Answer:  
 
The Job Creation law generally supports the existing Telecommunication law. The Job Creation law will 
impact to expand employment opportunity, facillitate investment and facillitate the flow of import and 
export goods.  
 
4. Trade Policies By Sector  
4.4 Services  
4.4.4 Telecomunicaciones  
4.224 
 
Párrafos 4.224 y 4.229  
2. El Informe señala que la Ley No. 36/1999 (Ley de Telecomunicaciones) establece, entre otras 
atribuciones, el aumento de la competencia en el sector, y más adelante precisa que los asuntos 
relacionados con la competencia en e se sector son responsabilidad exclusiva de la Comisión de 
Supervisión de la Competencia Comercial de Indonesia (KPPU).  
 
¿Qué disposiciones prevé la Ley de Telecomunicaciones para aumentar la competencia en el sector? ¿La 
KPPU tiene atribuciones para aplic ar las disposiciones en materia de competencia previstas en la Ley de 
Telecomunicaciones?  
 
Answer:  
 
Competition provision does not state specifically under the Telecommunication Law. However, 
Indonesian Competition Law applies to all sectors, including the telecommunication sector.  
 
9. Government Report  
9.4.56  
 
3. Se indica que el gobierno ha publicado diversas políticas y reglamentos para mejorar el desarrollo y 
la accesibilidad de la infraestructura, la penetración de la banda ancha móvil, la  asequibilidad de los 
precios de los servicios de banda ancha y la distribución equitativa de la infraestructura, los ecosistemas 
y los servicios de telecomunicaciones.  
 
¿Se podrían indicar cuáles han sido estas políticas y reglamentos y cuál ha sido su im pacto en mejorar 
el acceso y desarrollo de los servicios de telecomunicaciones?  
 
Answer:  
 
The Government has made efforts to build telecommunications infrastructure in order to address the 
digital divide in Indonesia to the sub -district level through the u niversal service obligation policy. This 
is also supported through penetration of mobile broadband, related to refarming or reorganizing the 
implementation so that 4G and broadband will expand to all regions.  
 WT/TPR/M/401/Add.1  
 
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  9. Government Report  
9.4.57  
 
4. ¿Qué instituciones dentro del gobierno están a cargo de la implementación del programa de 
cibergobernanza, en específico, de la elaboración de nuevos estudios y evaluaciones de las plataformas 
digitales? ¿Se ha contemplado la colaboración de varias institucione s gubernamentales, considerando el 
papel de la competencia económica en el ecosistema digital en el que participan las plataformas 
digitales?  
 
Answer:  
 
Indonesia National Cyber and Crypto Agency which responsible to ensure information security, network 
configuration etc is in charge of the implementation of the cyber -governance program.  
 
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitary and phytosanitary requirements  
3.3.3.1 Marco institucional y legislati vo 
3.130  
 
5. ¿Cuáles reglamentos de aplicación en materia sanitaria y fitosanitaria tiene Indonesia para el comercio 
internacional de productos y subproductos forestales?  
 
Answer:  
 
Indonesia has an SPS regulation for international trade in forest products, namely IPPC ISPM. Mexico 
can access the website  www.karantina.pertanian.go.id . 
 
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.3 Sanitar y and phytosanitary requirements  
3.3.3.1 Marco institucional y legislativo  
3.132  
 
6. Considerando el comercio que Indonesia tiene con China, ¿cuenta con alguna normativa que regule 
la posible introducción de Palomilla Gitana Asiática?  
 
Answer:  
 
Indonesia has a regulation that regulates an Asian Gypsy Moth, namely the regulation of the Minister of 
Agriculture No. 25/2020. Asian Gypsy Moth is included in the A1 category as a pest. If imported products 
are exposed to Asian Gypsy Moth, all of these p roducts will be destroyed. So far, Indonesia has not 
encountered any imported products affected by the pest.  
 
3. Trade Policies And Practices By Measure  
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.4 Competitio n policy and price controls  
3.3.4.1 Política de competencia  
3.153  
 
7. 3.153. "...la Comisión de Supervisión de la Competencia Comercial (KPPU) de Indonesia (véase infra) 
no puede realizar sin previo aviso inspecciones para reunir pruebas en las instalacion es de las empresas 
investigadas por infringir la legislación antimonopolio; no puede actuar contra empresas situadas en el 
extranjero aunque su comportamiento afecte directamente a la competencia y/o a los consumidores en 
los mercados internos, lo que limi ta la posibilidad de que la KPPU detecte cárteles; y sus facultades de 
disuasión son  limitadas, con sanciones máximas muy inferiores a las de organismos comparables en 
otras jurisdicciones..."   WT/TPR/M/401/Add.1  
 
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  ¿Qué estrategias alternativas ha implementado la KPPU a fin de fortalecer la competencia en la economía 
indonesia a la luz de las facultades que le otorga la ley?  
 
En ausencia de facultades para realizar inspecciones e investigar empresas situadas en el extranjero, 
¿cuáles son las herramientas más fuertes con las q ue cuenta la KPPU para investigar y sancionar 
conductas anticompetitivas en los mercados indonesios?  
 
En vista de las limitaciones de la legislación vigente en materia de competencia (Ley No. 5/1999 o Ley 
de Competencia), señaladas por el Informe, ¿se tiene previsto reactivar el debate parlamentario del 
proyecto de modificación de la Ley de Competencia?  
 
Answer:  
 
Based on the current Omnibus Law on Job Creation (Law Number 11 Year 2020), the maximum fines 
for competition violation is no longer stipulate d and the minimum fines is IDR 1 Billion. In this regard, 
we should prepare an Implementing Regulation to stipulate the calculation of fines. As for strategy to 
tackle our limited enforcement power, we utilize our formal cooperation with other law enforcer s such 
as the National Police, Commission for Corruption Erradication, and relevant Ministries/Institutions to 
obtain necessary data and or information. However, we realize that this might not be enough for the 
long run, thus we would also put our effort i n reactivating the amendment of our law.  
 
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Política de competencia  
3.156  
 
8. 3.156. ... "En Indonesia, la notificación previa a la fusión sigue siendo voluntaria, y la notificación 
posterior a la fusión es obligatoria. En el contexto del presente examen, las autoridades han indicado 
que, aunque la legislación les da derecho a anular las fusiones, en la práctica no se hace".  
• ¿Cómo se garantiza el cumplimi ento de condiciones impuestas por la KPPU en el control  ex post 
de concentraciones?  
• ¿Qué actualizaciones al marco legal del control de concentraciones se contemplan a fin de 
regular concentraciones en sectores tecnológicos y de internet?  
 
Answer:  
 
The Law Number 5 Year 1999 and our Merger Regulation stipulates that the delay in notifying M&A 
transaction will be imposed with IDR 1 Billion of fines/day of delay. Until today, there have been a lot 
of businesses that being sanctioned because of this delayed not ification. As for updates on our Merger 
Regulation, we have issued Commission Regulation Number 3 Year 1999 and its Guideline. This guideline 
covers some type of acquisitions such as simplified assessment and asset acquisition, including the 
exempted asset  acquisition.  
 
On simplified assessment, once ICC/KPPU approves or decides to implement an assessment, eligible 
businesses will essentially be on the "fast track " for receiving their merger review. The guideline 
regulates that the ICC/KPPU must complete t his simplified assessment within 14 business days, which 
is expected to occur and be completed within the 60 business days clarification and research phase. 
This is a significantly shorter timeframe compared to the maximum 150 business days of the traditio nal 
merger notification process. The criteria for this simplified assessment is set forth in the guideline.  
 
The guideline also affirms some criteria where certain asset acquisition is exempted, such as: (i) if the 
value of the asset acquisition is below 2 50 billion rupiah for non -banking industries, or 2.5 trillion rupiah 
for banking industry, (ii) the second criteria is, if the asset acquisition is part of the purchasers ' ordinary 
course of business, (iii) and the third criteria is set for businesses in t he property industry, where the 
acquisition is exempted if the asset acquired is intended to be used as an office by the purchaser or as 
a public facility, (iv) and last, if the asset acquired is not related to the purchaser 's business activity.  
 WT/TPR/M/401/Add.1  
 
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  Furthermore, this guideline affirms that in a merger involving a joint venture entity, ICC/KPPU will 
consider the joint venture entity as the ultimate parent entity of the group, and also affirms that a 
foreign merger which has an impact to the Indonesian market will be notifiable. The impact criteria will 
be satisfied if, among others, a party to the transaction has business activities in Indonesia and the 
other party has a sister company that conducts business activities in and or sales into Indonesia. Ev en 
though the updates of this merger regulation were not specifically intended for digital economy, but it 
also applies to digital economy. Detailed provision could be accesed through this 
link: http://eng.kppu.go.id/merger -regulation/ . 
 
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Política de competencia  
3.157  
 
9 ¿Qué proporción de los recursos humanos de la KPPU se encarga de la investigación de colusiones en 
licitaciones públicas?  
¿Existen equipos de la KPPU que trabajen estos temas, además de los equipos de investigación y 
sanción, tales como promoción, asuntos internacionales o vincu lación con sector público?  
 
Answer:  
 
ICC/KPPU does not divide the number of our Investigators based on the type of competition cases. 
Currently we have around 400 personnels, including administrative officers at our Regional Offices, and 
the number of our case handlers are around 85, who handle any type of competition cases including bid 
rigging in public tenders. We also have separate units who handle public relation, cooperation with 
domestic stakeholders and international affairs.  
 
3. Trade Policies And Practices By Measure  
3.3 Measures Affecting Production and Trade  
3.3.4 Competition policy and price controls  
3.3.4.1 Política de competencia  
3.160  
10.  
• ¿En qué sectores han recibido mejor respuesta las recomendaciones emitidas por la KPPU?  
• ¿Cómo se han  vinculado las evaluaciones de leyes y reglamentos y recomendaciones en materia 
de política pública con la colusión en licitaciones públicas?  
• ¿Las evaluaciones de la competencia elaboradas en 2019, a cargo del KPPU, sobre la estructura 
y prácticas del sect or de la economía digital y el examen de las políticas en materia de economía 
digital, se llevaron a cabo por iniciativa de la KPPU o por invitación de algún ministerio? Con 
base en estas evaluaciones, ¿la KPPU emitió o emitirá recomendaciones de política a las 
entidades gubernamentales responsables del desarrollo de la economía digital?   
 
Answer:  
 
The sectors with most adopted policy recommendations are manufactures, textiles, and chemical 
substances. Currently we have also issued 3 (three) policy recommen dations which related to public 
tenders where 1 (one) has been adopted, while the other 2 (two) are still waiting for responses. As for 
the Market Study on Digital Economy, we have conducted 2 (two) market studies where one of them 
was formulated with the cooperation of international dialogue partner (published) and the other one 
was formulated independently (unpublished, as it contains confidential information). Both studies were 
not followed up with the issuance of policy recommendations to the relevant m inistries.  
 WT/TPR/M/401/Add.1  
 
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  PAKISTAN (TPRQA)  
SECRETARIAT REPORT  
SECTION 3.1 Measures Directly Affecting Imports  
3.1.5 Import prohibitions, restrictions and licencing  
3.1.5.2 Import licencing  
Paragraph No. 3.63  
 
Question 1.       
Pakistan notes that Indonesia maintains an import permit regime relating to horticultural products, 
etc. under which products must obtain import permits SPI and / or RIPH from Ministry of Trade. The 
Indonesian Ministry of Agriculture regulations stipulate the time period for issuance of such SPI or 
RIPH. However, it has been observed that sometimes these permits are not issued within the 
stipulated period causing delays for exporters.  Could Indonesia apprise us about the measures 
it has taken to enhance predictability and ensu re that SPI and RIPH are issued within 
given time frame?  
 
Answer:  
 
Indonesia continues to improve and develop online system for import permit applications, inter alia 
by synchronizing applications between ministries (issuance of recommendations are automatically 
transfered to ministry of trade system). Import permits are requested and issued via online and can 
be done at anytime and anywhere. Indonesia continues to improve and develop the policy in 
accordance with the Agreement on  Import Licensing Procedures.  
 
4.3.5 Garments, textiles and footwear (tid:44)  
Paragraph No. 4.180  
 
Question 2.    
According to WTO Secretariat 's Report, page 195, para 4.180, licensing requirements for textiles 
have been a matter of concern for some WTO Mem bers during the review period. We understand 
that Indonesia is in the process of improving coordination among various government departments 
to ensure efficient and effective transactions among the stakeholders to allow smooth flow of trade 
in textile prod ucts. Could Indonesia explain what  steps have been taken so far to improve the 
regulatory trade regime for textile products?  
 
Answer:  
 
Currently, the regulation is still being revised. This revision will change the current system by 
integrating SIINAS system with INATRADE. The integration is expected to fasten the process, more 
transparent and have clear timeframes.  
 
__________