WT/DS466/1, G/L/1038  
G/AG/GEN/113, G/LIC/D/46  
G/PSI/D/2  
9 September 2013  
(13-4705)  Page: 1/4  
  Original: English  
 
INDONESIA – IMPORTATION OF HORTICULTURAL PRODUCTS,  
ANIMALS AND ANIMAL PRODUCTS 
REQUEST FOR CONSULTATIONS BY NEW ZEALAND 
 The following communication, dated 30 August 2013, from the delegation of New Zealand to 
the delegation of Indonesia and to the Chairperson of the Dispute Settlement Body, is circulated in 
accordance with Article 4.4 of the DSU. 
 
_______________ 
 
 
My authorities have instructed me to request consultations with the Government of the 
Republic of Indonesia ("Indonesia") pursuant to Articles 1 and 4 of the Understanding on Rules and 
Procedures Governing the Settlement of Disputes , Article XXII of the General Agreement on Tariffs 
and Trade 1994 ("GATT 1994"), Article 19 of the Agreement on Agriculture , Article 6 of the 
Agreement on Import Licensing Procedures ("Licensing Agreement"), and Articles 7 and 8 of the 
Agreement on Preshipment Inspection  concerning certain measures imposed by Indonesia 
affecting the importation of animal products, animals and horticultural products into Indonesia. 
 
Indonesia imposes prohibitions and restrictions affecting imports of a range of animal 
products, animals and horticultural products.1 These prohibitions and restrictions include quotas, 
import restrictions, and discretionary or non-automatic import licensing schemes. 
 
The Indonesian Government's stated basis for these measures is to restrict imports of 
certain agricultural products where domestic production is deemed sufficient to satisfy domestic 
demand. Quotas are set and allocated annually at ministerial-level coordination meetings followed up by inter-ministerial technical meetings. For instance, Indonesia has introduced diminishing 
import quotas for frozen beef of 73,000 tonnes (2010), 50,000 tonnes (2011), 34,000 tonnes 
(2012) and 32,000 tonnes (2013) with similar quotas applied to other products. These quotas and restrictions are administered through discretionary and non-automatic import licensing schemes that restrict the quantity, type
2, and country of origin of imports during upcoming "semesters". 
 
Indonesia does not appear to administer these quotas and restrictions in a uniform, 
impartial or reasonable manner as they are applied inconsistently and unpredictably. Indonesia 
has also failed to publish or provide relevant information, including overall quota details, sufficient 
for governments and traders to become acquainted with them.  
                                               
1 The animal products and animals are listed in the various laws and regulations referred to in this 
request. They include, but are not limited to, carcasses, meats, edible offals and/or  processed products thereof 
as well as all materials derived from fresh, processed or  prepared animals for the purpose of consumption, 
pharmaceutical, agricultural, and/or ot her uses. The horticultural products ar e also listed in the various laws 
and regulations referred to in this re quest. They include, but are not limited to, fruits, vegetables, medicinal 
plant ingredients, floriculture, aesthe tic materials and all products derived from fresh or processed horticultural 
crops. 
2 Including prohibiting imports of fre sh horticultural products for cons umption that were harvested more 
than six months previously.   WT/DS466/1 • G/L/1038 • G/AG/GEN/113 • G/LIC/D/46 • G/PSI/D/2 
 
- 2 - 
 
  Indonesia's discretionary and non-automatic import licensing procedures require importers 
to complete multiple steps prior to importing into Indonesia. First, an importer must obtain an Import Approval Recommendation ("RPP"
3 or "RIPH"4) from the Ministry of Agriculture. Second, an 
importer must apply and receive a designation as a "Registered Importer for Animal and Animal 
Products", "Registered Importer for Horticultural Products" or "Producer Importer of Horticultural 
Products" from the Ministry of Trade.5 Finally, for each product, the importer must apply for an 
import licence from the Ministry of Trade. 
 
These licensing procedures have trade-restrictive and -distortive effects and are broader in 
scope, and more administratively burdensome, than  necessary. They do not allow licence holders 
to choose the source of imports, and do not appear to be administered in a uniform, impartial or 
reasonable manner as they are applied inconsistently and unpredictably. Indonesia has also failed 
to publish or provide relevant information regarding the measures, including the basis for granting and allocating licences, sufficient for governments and traders to become acquainted with them. 
 
Furthermore, Indonesia imposes measures affecting the internal sale, offering for sale, 
purchase, distribution and use of agricultural products that accord less favourable treatment to 
imported products than to like domestic products , including restrictions limiting the sale of 
imported beef to the hotel, restaurant and catering sectors and of imported horticultural products to distributors.    
Finally, as of June 2013, Indonesia's preshipment inspection authority, PT. Surveyor 
Indonesia (Persero) dan PT. Sucofindo (Persero) , has limited the provision of preshipment 
inspection activities in New Zealand to a sole company, Bureau Veritas , resulting in delays and 
further impediments to trade. 
 
The trade impact of these various measures is significant. Since the introduction of these 
restrictions, New Zealand's exports to Indonesia of beef and a range of horticultural products, 
including apples and onions, have fallen by up to 80 per cent at considerable commercial cost to New Zealand industries.  
New Zealand understands that the legal instruments through which Indonesia imposes and 
administers these measures include, but are not limited to, the following:  
For Animal Products and Animals 
 
 Law of the Republic of Indonesia Number 18 of  2009 on Animal Husbandry and Animal Health 
("Animal Law"); 
 
 Regulation of the Minister of Agricultur e Number 50/Permentan/OT.140/9/2011 Concerning 
Recommendation for Approval on Import of Carcas ses, Meats, Edible Offals and/or Processed 
Products Thereof to Indonesian Territory ("Mi nistry of Agriculture Regulation 50/2011") as 
amended by Regulation of the Minister of Agriculture Number 63/Permentan/OT.140/5/2013 
Concerning Amendment of Regulation of  the Minister of Agriculture Number 
50/Permentan/OT.140/9/2011 Concerning Import Approval Recommendation of Carcass, 
Meat, Offal, and/or their Derivatives into the Territory of the Republic of Indonesia ("Ministry of Agriculture Regulation 63/2013"); 
 
 Regulation of the Minister of Trade Number 22/M-DAG/PER/5/2013 Concerning Import and 
Export of Animals and Animal Products ("Minist ry of Trade Regulation 22/2013") which repeals 
and replaces Regulation of the Minister of Trade Number 24/M-DAG/PER/9/2011 ("Ministry of 
Trade Regulation 24/2011"); 
 
 Law of the Republic of Indonesia Number 18 of 2012 Concerning Food ("Food Law"); 
                                               
3 Rekomendasi Persetujuan Pemasukan . RPPs are required to import  certain animal  products and 
animals, currently listed in Appendices I to III of Mi nistry of Agriculture Regulation 50/2011 as amended by 
Ministry of Agriculture Regulation 63/2013. 
4 Rekomendasi Impor Produk Hortikultura . RIPHs are required to import certain horticul tural products, 
currently listed in Appendix II of Ministry of Agriculture Regulation 47/2013. 
5 In order to import the animal prod ucts currently listed in Appendix I of Ministry of Trade Regulation 
22/2013 and the horticulture products currently listed in  Appendix I of Ministry of Agriculture Regulation 
16/2013. WT/DS466/1 • G/L/1038 • G/AG/GEN/113 • G/LIC/D/46 • G/PSI/D/2 
 
- 3 - 
 
   Law of the Republic of Indonesia Number 19 of 2013 Concerning Protection and 
Empowerment of Farmers ("Farmers Law"); 
 
 Decree of the Minister of Trade Number 699/M-DAG/KEP/7/2013 Concerning Beef Price 
Stabilization ("Ministry of Trade Decree 699/2013"); 
 
 As well as any amendments, replacements, related measures and implementing measures. 
 
For Horticultural Products  
 Law of the Republic of Indonesia Number 13 of 2010 Concerning Horticulture ("Horticulture 
Law"); 
 
 Regulation of the Minister of Agricultur e Number 47/Permentan/OT.140/4/2013 Concerning 
Recommendation on the Importation of Horticultural Products ("Ministry of Agriculture 
Regulation 47/2013") which repeals and replaces  Regulation of the Minister of Agriculture 
Number 60/Permentan/OT.140/9/2012 ("Minist ry of Agriculture Regulation 60/2012"); 
 
 Regulation of the Minister of Trade Number 16/M-DAG/PER/4/2013 Concerning Provisions on 
Horticultural Products Import ("Ministry of Trade Regulation 16/2013") which repeals and replaces Regulation of the Minister of Trad e Number 30/M-DAG/PER/5/2012 ("Ministry of 
Trade Regulation 30") and Regulation of the Mi nister of Trade Number 60/M-DAG/PER/9/2012 
("Ministry of Trade Regulation 60/2012"); 
 
 The Food Law; 
 
 The Farmers Law; 
 
 As well as any amendments, replacements, related measures and implementing measures. 
 Indonesia's measures appear to be inconsistent with Indonesia's obligations under the WTO 
Agreements, including: 
 
 Article 4.2 of the Agreement on Agriculture as the quotas, import restrictions, licensing 
schemes and similar measures are of a kind "required to be converted into ordinary customs 
duties" and which Members shall not maintain, resort to, or revert to.
6 
 
 Article XI:1 of the GATT 1994 as the quotas, import restrictions, licensing schemes and other 
measures7 are "prohibitions or restrictions on imports other than duties, taxes or other 
charges". 
 
 Article 3.2 of the Licensing Agreement as the non-automatic import licensing procedures have 
trade-restrictive and -distortive effects, are br oader in scope and duration than any measure 
they purport to implement, and are more ad ministratively burdensome than absolutely 
necessary. 
 
 Article X:3(a) of the GATT 1994 and Article 1.3 of the Licensing Agreement as Indonesia does 
not administer the laws, regulations, decisions and rulings pertaining to the quotas, import 
restrictions or licensing schemes in a uniform, impartial and reasonable manner. 
 
 Article X:1 of the GATT 1994 as the quotas and basis for their allocation are not promptly 
published in a manner so as to enable governments and traders to become acquainted with 
them.  
 
 Articles 3.3 and 3.5(a) to (c) of the Licensing Agreement due to failure to publish or provide 
relevant and sufficient information, including overall quota details, country shares of quotas, and the basis for granting and allocating licences. 
 
                                               
6 New Zealand would also like to co nsult with respect to im port restrictions cont ingent upon “trigger” 
domestic prices that appear to be in consistent with Article 4.2 of the Agreement on Agriculture and Article XI:1 
of the GATT 1994. 
7 Including limiting the provision of preshipment inspec tion activities in New Zealand to a sole company. WT/DS466/1 • G/L/1038 • G/AG/GEN/113 • G/LIC/D/46 • G/PSI/D/2 
 
- 4 - 
 
   Articles XIII:2(a), (c) and (d) of the GATT 1994 and Article 3.5(k) of the Licensing Agreement 
due to failure to fix and give appropriate notice of quotas and failure to permit licence holders to choose the source of imports.  
 Article III:4 of the GATT 1994 as Indonesia's laws, regulations and requirements affecting the 
internal sale, offering for sale, purchase, distribution and use of agricultural products accord less favourable treatment to imported products than to like domestic products. 
 
 Articles 2.1 and 2.15 of the Agreement on Pres hipment Inspection due to failure to ensure 
that preshipment inspection activities do not result in unreasonable delays, are carried out in a non-discriminatory manner, and are applied on an equal basis to all exporters. 
  
 
We look forward to receiving Indonesia's reply to the present request and to fixing a mutually 
convenient date and location for consultations. In light of the request by the United States for 
consultations on the same measures, dated 30 August 2013, New Zealand proposes that consultations be held jointly with the United States. New Zealand would be amenable to holding 
consultations in Jakarta.  
  
__________