WT/TPR/M/278/Add.1  
2 August 2013  
(13-4152)  Page: 1/265  
Trade Policy Review Body 
10 and 12 April 2013  Original: English/Spanish  
anglais/espagnol  
ingles/español  
 
TRADE POLICY REVIEW 
INDONESIA  
RECORD OF THE MEETING 
Addendum 
Chairperson: H.E. Mr. Joakim Reiter (Sweden) 
 
This document contains the advance written questions, and replies provided by Indonesia.1 
 
 
Organe d'examen des politiques commerciales 
10 et 12 avril 2013 
EXAMEN DES POLITIQUES COMMERCIALES 
INDONÉSIE  
COMPTE RENDU DE LA RÉUNION 
Addendum 
Président: S.E. M. Joakim Reiter (Suède) 
 
Le présent document contient les questions écrites communiquées à l'avance et les 
réponses fournies par l'Indonésie.1 
 
 
Órgano de Examen de las Políticas Comerciales 10 y 12 de abril de 2013 
EXAMEN DE LAS POLÍTICAS COMERCIALES 
I
NDONESIA  
ACTA DE LA REUNIÓN 
Addendum 
Presidente: Excmo. Sr. Joakim Reiter (Suecia) 
 
En el presente documento figuran las preguntas presentadas anticipadamente por escrito, 
junto con las respuestas facilitadas por la Indonesia.1 
                                               
1 In English and Spanish only./En  anglais et espagnol seulement./En inglés y español solamente. WT/TPR/M/278/Add.1 
 
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  ASEAN 
Report by Indonesia 
pp. 3-5, Paragraph(s) 2.1 – 2.8 
ASEAN notes Indonesia's efforts in overcoming the financial crisis where the economic trends up to 2011 showed a peak of 6.5% in growth. In doing so, Indonesia has also developed policies such as 
the Masterplan for Acceleration and Expansion of Indonesia Economic Development (MP3EI) and 
introduced Investment incentives. Specifically, Indonesia mentioned MP3EI will include 8 main programmes consisting of 22 main economic activities. 
 
Can Indonesia provide more clarification/elaborate on the indicative programs and activities mentioned in the MP3EI?  
 
Response: 
 
To support the acceleration and expansion of economic developm ent in Indonesia, the 
Government has set a number of major programs  in collaboration with key stakeholders 
including government ministries and the pr ivate sector in development of MP3EI.  
Base on stakeholders' agreement the focus of  development was classified into 8 main 
programs, i.e.: (1) agriculture; (2) mining ; (3) energy; (4) industrial; (5) marine; 
(6) tourism; (7) telecommunication; and (8) the development of strategic areas. The 
eight main programs consist of 22 main economic activities, i.e.: (1) Shipping; 
(2) Textiles; (3) Food – beverages; (4) Steel; (5) defence equipment; (6) palm oil; 
(7) Rubber; (8) Cocoa; (9) Animal Husbandary ; (10) Timber; (11) Oil & Gas; (12) Coal; 
(13) Nickel; (14) Copper; (15) Bauxite; (16) Fishery (17) Tourism; (18) Food Agriculture; (19) Jabodetabek (Jakarta, Bo gor, Depok, Tangerang, Bekasi) Areas; 
(20) Sunda Straits Strategis Area; (21) Transportation Equipment; (22) ICT. 
These 22 main economic activities are desi gnated based on the inherent potential and 
strategic value of each of them. There are 6 economic corridors which are identified as 
growth centers and are expected to boost ec onomic development throughout the nation. 
They are: (1) Sumatra Economic Corridor as a center for production and processing of 
natural resources and the  nation's energy reserves; (2) java Economic Corridor as a 
driver for national industry and service pr ovision; (3) Energy Reserves; (4) Sulawesi 
Economic Corridor as a center for production  and processing of national agricultural, 
plantation, fishery, and oil and gas; (5) Ba li – Nusa Tenggara Economi Corridor as a 
gateway for tourism and national food su pport; and (6) Papua – Kepulauan Maluku 
Economic Corridor as a center for the developm ent of food, fishery, energy, and national 
mining. 
To support the development of the main prog rams in every corridor, the implementation 
strategy will be directed to the strengthenin g of national connectivity, both locally and 
internationally; and the strengthening of huma n resource capacity and national science 
and technology. 
Below is a mapping of the main economic activities of each corridor: 
Mapping of Main Economic Ac tivities For Each Corridors 
Main-Economic 
Activities Sumatra Java Kalimantan Sulawesi Bali-Nusa 
Tenggara Papua-Kep. 
Maluku 
Shipping √ √     
Textile  √     
Food-Beverages  √     WT/TPR/M/278/Add.1 
 
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  Main-Economic 
Activities Sumatra Java Kalimantan Sulawesi Bali-Nusa 
Tenggara Papua-Kep. 
Maluku 
Steel √  √    
Defence Equipment  √     
Palm Oil √  √    
Rubber √      
Cocoa    √   
Animal Husbandary     √  
Timber   √    
Oil & gas   √ √  √ 
Coal √  √    
Nickel    √  √ 
Copper      √ 
Bauxite   √    
Fishery    √ √ √ 
Tourism     √  
Food Agriculture    √  √ 
Jabodetabek 
(Jakarta, Bogor, 
Depok, Tangerang, 
bekasi) Area  √     
Sunda Straits 
Strategic Area √      
Transportation 
Equipement  √     
ICT  √     
 
AUSTRALIA 
SUMMARY 
Page 10, paragraphs 23-24 The Secretariat Report notes that recent econom ic growth has been driven by services, even 
though trade in services as a percentage of GDP has declined.  Does Indonesia's Masterplan for 
Acceleration and Expansion of Economic Development (MP3EI) contain any policies designed to 
increase development of the services sector in Indonesia? 
Response: 
Basically, MP3EI contains policies designed to increase development of the services 
sector in Indonesia. Implementation of MP 3EI programs will be able to encourage 
growth in the services sector, as well as to improve Indonesia's competitiveness, and 
increase the nation's economic growth, in or der to achieve the vision of Indonesia as a 
developed country in 2025. These efforts will be conducted by:  
 Improving regional economic potential th rough the development of six economic 
corridors: (1) Sumatra Economic Corridor as  Center for Production and Processing 
of Natural Resources and As Nation's Ener gy Reserves; (2) Java  Economic Corridor 
as a Driver for  National Industry and Service Provision; (3) Kalimantan Economic WT/TPR/M/278/Add.1 
 
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  Corridor as a Center for Production and Pr ocessing of National Mining and Energy 
Reserves; (4) Sulawesi Economic Corridor as  a Center for Production and Processing 
of National Agricultural, Plantation, Fisher y, and Oil & Gas; (5) Bali – Nusa Tenggara 
Economic Corridor as a Gateway for Tourism and National Food Support and 
(6) Papua – Kepulauan Maluku Economic Corridor as a Center for Development of Food, Fisheries, Energy, and National Mining.  
 Strengthening National Connectivity, through: National Logistic System; National 
Transportation System; Region al Development; and ICT. 
 Strengthening Human Resources and National  Science and Technology Capabilities. 
 
Page 9, paragraph 18 
We seek advice from Indonesia about when it intends to submit its next agricultural safeguards 
notification? 
Response: 
Indonesia has submitted the notification conc erning use of the Agricultural Safeguard 
(Table MA:5) i.e.: 
 G/AG/N/IDN/28 dated 17 July 2009 (2001-2008) 
 G/AG/N/IDN/33 dated 15 February 2013 (2009-2011) 
 3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 MEASURES DIRECTLY AFFECTING IMPORTS 3.1.2 Customs valuation and rules of origin 
Page 34, Paragraph 3.13 
Indonesia has indicated it uses the transaction value as the basis for customs valuation. 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? 
Response: 
Based on the data from the last 3 years (2010-2012), the average percentage of Import 
Declaration which the transaction value was a ccepted is 93% of all declarations. Toward 
the rejection of the customs value, the perc entage of companies which lodge objection 
to DGCE is only 0.76% of total declaration, and after decision has been handed by DGCE, 
the percentage of case submitted to the tax court is only 0,15% of total declarations.  
Based on the above data, we may conclude that the Customs Value of 98.85% of total 
Import Declaration is approved by  both sides (DGCE and importer).  
Page 34, Paragraph 3.13 Indonesia has indicated that the concerned authorities maintain a database of market prices that is 
regularly updated. We would greatly appreciate if  Indonesia could provide some information on the 
purpose of the database, i.e. how and under what kind of circumstances does Indonesia use the database? 
Response: 
The database is arranged based on the data  from import customs value in which the 
transaction value has been accepted. The da tabase is not a list of market prices. 
Indonesia customs is using customs value database as a basis reference whether a 
transaction value provided by the importer is re asonable or not. It is also used as one of 
the data resources for determining customs va lue based on method II (identical goods), 
method III (similar goods), and method VI (fallback). WT/TPR/M/278/Add.1 
 
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  Page 34, Paragraph 3.16 
Indonesia has indicated that challenges to customs decisions, including valuation, classification 
and penalty issues, must be forwarded to the Director General Customs and Excise (DGCE). 
Importers may then appeal the DGCE decision to the Tax Court. 
We would appreciate some clarification on these procedures: 
 Is the initial appeal to the DGCE an administrative appeal? 
 Is the appeal to the DGCE an appeal to a higher or independent authority? 
 Is the subsequent appeal to the Tax Court a judicial appeal? If this is not the case, is there a 
further step for judicial appeal in the Indonesian review and appeal process? 
Response: 
The objection procedure is stipulated in th e Customs Law. The Objection being proposed 
to the Director General of Customs and Exci se is an administrative objection to the 
higher structural level.  
The appeal procedure on objection decision pr ovided by Director General of Customs and 
Excise is stipulated in Law on Tax Court. An appeal is lodged to the tax court and the 
decision of the tax court may be reviewed by the Supreme Court in  a Judicial Review 
procedure.  
3.1.4 Other charges affecting imports 
3.1.4.2 Luxury Tax Indonesia applies a "luxury sales tax" on some domestically manufactured and imported motor 
vehicles as follows (selected categories of interest): 
 Motor vehicles of 1,500 to 2,500 cc with a capacity of fewer than 10 passengers - Tax rate 
20% 
 Sedans or station wagons with a cylinder up to 1,500 cc - Tax rate 30% 
 Motor vehicles other than sedans and station wagons with a cylinder up to 1,500 cc - Tax 
rate 60% 
 Sedans and station wagons with a capacity of more than 3,000 cc - Tax rate 75% 
It is Australia's, as well as much of the international automotive industry's view, that engine 
capacity should not be a key determinant of whether a vehicle is described as "luxury" or not.  
Moreover, we note that engine capacity is not a key determinant of either the environmental or 
fuel consumption aspects of a vehicle's operation.  Australia's view is that a taxation regime based 
on engine capacity would tend to deny access to Indonesian consumers to vehicles that often 
contain state of the art engine efficiency, environmental performance and safety features. 
Will Indonesia consider adjusting its "luxury sales tax" regime to reflect more holistic criteria of 
what should be classed as a luxury vehicle?   
Response: 
The objection procedure is stipulated in th e Customs Law. The Objection being proposed 
to the Director General of Cu stoms and Excise is an administrative objection to higher 
organizational level.  
The appeal procedure on objection decision pr ovided by Director General of Customs and 
Excise is stipulated in the Law on Tax Court. An appeal is lodged to the tax court and the 
decision of tax court may be reviewed by  the Supreme Court in a Judicial Review 
process.  
Based on the monitoring of the Indonesian au tomotive market price shows that there is 
a positive correlation between the engine capacity (cc) and prices. WT/TPR/M/278/Add.1 
 
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  A high price is indicative of a luxury goods,  and could only be purchased by high-income 
groups. Thus, until now we consider the engine  capacity as still relevant in term of a 
basis for determining the amount of luxury tax to be levied. 
3.1.5 Import prohibitions, restrictions, and licensing 
3.1.5.3 Import Licensing Page 45, Paragraph 3.37 
Can Indonesia please provide advice about its intention to submit an updated notification on its 
import licensing covering the years 2008 onwards? 
Response: 
Yes, we will submit an u pdated notification shortly.  
Page 45, Paragraph 3.39 Australia notes that the number of products subject to import licensing has increased significantly 
over the review period, including new requirements  on food and other agricultural products. Can 
Indonesia provide advice on the policy basis for this significant increase?  Does Indonesia consider that these new arrangements have contributed to food price inflation within Indonesia? Are these 
new arrangements consistent with Indonesia's food objectives given the role of imports in ensuring 
that consumers can access a broader range of products at more competitive prices? 
Response: 
 The policy basis for such provision is based on consumer protection needs, and food 
safety regulations. 
 We believe that food price inflation is caus ed by several factors, and not just due to 
such arrangements. 
 Yes, we are of the view that this arrangem ent is consistent with our policy objectives  
 
4 TRADE POLICIES BY SECTOR 
4.4 AGRICULTURE, FISHERIES AND FORESTY 
4.4.3 Trade policy instruments 
Page 77, Paragraph graph 4.13 
Australia is a significant exporter of food and agricu ltural products to Indonesia.  In light of this, 
can Indonesia please provide advice on the legal basis of its quantitative restrictions as identified 
in the Secretariat Report, namely rice, sugar, salt and animals and animal products? Can 
Indonesia confirm whether it has notified these quantitative restrictions?  If not, when does 
Indonesia intend to do so? 
Response: 
Indonesia does not apply quantitative restrict ion but rather regulates import by taking 
into account the harvesting period in the country.  
Page 77, Paragraph 4.16 
Australia is seeking further information on measures applied to Indonesia's imports for agricultural 
products that Australia has a long term history in supplying to Indonesia. This includes beef and live cattle; the Secretariat report states that Indonesia lowered its import quotas for boxed beef 
from 73,000 tonnes in 2010 to 32,000 tonnes in 2013. A similar policy was applied to cattle.  
Australia understands this decrease in imports ha s been implemented to improve self-sufficiency. 
Notwithstanding this, the import restrictions appear to have raised prices for consumers in 
Indonesia. Media suggests that there is a large beef shortage domestically, with many feedlots 
running under capacity. Can Indonesia please confirm this? How are the restrictions on imports of 
beef consistent with Indonesia's stated objective of increasing beef consumption per capita? WT/TPR/M/278/Add.1 
 
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  In addition, pricing signals from the domestic market  indicate that the cost of meat is inflated due 
to limited supply. Can Indonesia please confirm this? 
What plans does Indonesia have to address the current restrictions on imports and improve the 
efficiency of the domestic industry and distribution system?  
On horticulture, the Secretariat Report notes that Indonesia has introduced an import quota 
system on fresh and processed fruits and vegetables. Australia understands that this system 
includes new Ministry of Trade (MoT) regulation 30/2012 and 60/2012, and the Ministry of 
Agriculture (MoA) regulation 60/2012. Can Indonesia confirm that the primary purpose of these measures is to effect seasonal import ba ns to a number of horticulture products?  
Response: 
Data on domestic production and consumption is used to estimate import requirements.  
Imports are conducted to meet domestic d e m a n d  a s  w e l l  a s  t o  k e e p  t h e  b a l a n c e  
between production and consumption. 
National demand is determined based on  SUSENAS (The National Socioeconomic 
Survey). An increase in domest ic demand will increase import. 
Based on SUSENAS, the national production of beef is sufficient to meet national 
demand. The high cost of beef in the domest ic market is not due to insufficient supply. 
The long distance between production sites an d market place may cont ribute to the high 
cost of beef. 
There are no quantitative restrictions on imports. 
The GOI is planning to improve the infras tructure supporting the agribusiness systems 
(from production to marketing) such as transportation etc. 
Indonesia does not have the intention to lim it imports, however, time considerations 
based on the time when the harvest of the horticultural products occur are aimed at 
achieving and maintaining a balance between supply and demand 
4.7 SERVICES 
4.7.1 WTO and other agreements 
Page 84, Paragraph 4.47 
Section 4.2 on page 12 of Indonesia's Report outlines Indonesia's efforts to increase foreign 
investment, including through the use of "clear regulation for domestic and foreign investment" 
and the negative investment list. Table 2.3 starting on page 26 of the Secretariat's Report outlines 
the current permissible foreign investment limits (2010), which are often significantly higher than 
the foreign equity limits in Indonesia's GATS schedule (as outlined in paragraph 4.47 of the Secretariat's Report). Where there is an existing investor in Indonesia who complies with the 
current negative investment list, does the Indonesian Government retain the right to require that 
investor to reduce their foreign equity to the limit listed in Indonesia's GATS schedule if, at any time, Indonesia changes the negative investment list? Or would such a change to the list apply 
only to investments made subsequent to the change? 
Response:  
Indonesia adopts the dual approach in it s liberalization regime, i.e. autonomous 
liberalization (by negative investment list or DNI for Daftar Negatif Investasi) which is 
based on prevailing domestic regulations and Indonesia's international trade in services 
commitment under both the GATS and various FTA's. 
The first approach will be reviewed if necessa ry, taking into account the economic needs 
and the development in particular sectors in DNI, whereas the second approach is WT/TPR/M/278/Add.1 
 
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  binding, in the sense that there is a mechanism to modify commitments based on the 
agreed procedures.  
In that case, all sectors being covered in th e new DNI will effectively come into force by 
virtue of such new DNI. There will be so-ca lled 'transition periods' for sectors being 
affected by new regulation. 
WT/TPR/G/278 
2 ECONOMIC AND TRADE ENVIRONMENT 
2.1 MAIN ECONOMIC AND POLICY ENVIRONMENT Page 4, Paragraph 2.6 
MP3EI calls for the establishment of industrial clusters throughout the archipelago linked by 
improved transport and ICT services. Will all of these industrial clusters be in provincial capitals with international air and/or seaports, allowing access by foreign-owned logistics service suppliers? 
Response: 
According to MP3EI, the development of the centre of economic activity is done by 
expanding industry cluster and special econ omic zone (Kawasan Ekonomi Khusus/KEK) 
as well as the enhancement of connectivity between economic centres and centres of 
economic growth along with essential backbone  infrastructure. The integration of centre 
of economic activity and connectivity creates Indonesia's economic corridor. 
 
The development of Indonesia's economic corridor aims to create and elevate the 
competitiveness of Indonesia's economy, and di rected at increasing productivity and the 
value added of human resources through th e sustainable extension and creation of 
supply chain from up to downstream. 
 There are 6 economic corridors namely Suma tera, Kalimantan, Java, Bali-NusaTenggara, 
Sulawesi, Papua-Maluku with the respective industry cluster centralized in capital of 
each province, so that the sea and airport ar e accessible by foreign services suppliers. 
(Jawaban Dit. Jasa)  
BRAZIL 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
Measures directly affecting imports 
(8) Sanitary and Phytosanitary Measures Page 53 (paragraph 3.70) 
According to the report by the Secretariat, over the review period, Brazil raised specific trade 
concerns on Indonesian import restrictions on i) poultry meat and on ii) beef and recognition of the principle of regionalization.  
Questions: 
 Brazil has been negotiating an International Sanitary Certificate for the export of poultry meat to 
Indonesia. After many bilateral attempts to solve this issue, Brazil raised, in 2009 and 2011, 
specific trade concerns on Indonesian import restrictions. Please explain the reason for these restrictions, indicate whether they are consistent with Article 2 of the SPS Agreement and inform a 
deadline for the conclusion of the negotiations, in order to prevent undue delay. 
 Response: 
Indonesia does not restrict imports of poultr y meat as long as they meets all safety 
requirements and halal products (OR). 
 In October 2006 and February 2007, Brazil raised specific trade concerns regarding Indonesian 
 
regulations that were not compatible with Article 6 of the SPS Agreement, in particular the principle of regionalization, as in the case of foot-and-mouth disease. The Indonesian Law WT/TPR/M/278/Add.1 
 
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  No. 18/2009, from February 2009, would finally be in line with the mentioned principle. However, 
in September 2007, the Indonesia's Constitutional  Court nullified certain provisions of Law 
No. 18/2009, removing the recognition of the principl e of regionalization. Brazil raised STCs again 
in October 2010 and October 2011. Please indicate whether Indonesia intends to adapt its 
legislation in order to be consistent with the aforementioned principle and the Article 6 of the SPS 
Agreement. Please indicate whether policies related to food self-sufficiency may affect decisions on this matter. 
 
Response: 
 The amendment was made on the basis of Constitutional Court decision No. 137/PUU-
VII/2009 on 27 August 2010 that the phrase "importation of animal products from 
disease-a free zone" was amended as "importa tion of animal products only from a 
disease-free country. 
 
IV - TRADE POLICIES BY SECTOR 
(4). Agriculture, Fisheries and Forestry 
Page 75, paragraph 4.11 and page 77, paragraph 4.13 
The report by the Secretariat states that Indonesi an "agriculture policy priorities are driven by 
concerns over food self-sufficiency, food consumption and production diversification, value-added 
and competitiveness, and the welfare of farmers" and that "import requirements imposed for food 
safety, SPS, and cultural reasons appe ar to have become more stringent". 
Questions: 
1) Please indicate how Indonesia intends to harmon ize its concerns over food self-sufficiency 
with free trade of food. 
2) Please explain why import requirements imposed for food safety, SPS and cultural reasons 
became more stringent and indicate whether concerns over food self-sufficiency were taken into account in redefining those requirements." 
Response: 
Answer will be provided later. 
 
CANADA 
Part III. Trade Policies an d Practices by Measure 
3.1 Measures directly affection imports 
3.1.3 Tariffs; 3.1.3.2 Applied MFN tariffs; paragraph 3.19, page 35 
 
Could Indonesia explain why it has chosen to subject more tariff lines to specific tariff rates (from 
27 tariff lines in 2006 to 65 tariff lines in 2012)? 
Response: 
To simplify the calculation imposition and surveillance duties on these products. 
3.1.3.2 Applied MFN tariffs; paragraph 3.20, page 36: 
Could Indonesia provide details concerning tariff lines, that were previously duty free, where tariffs 
were raised to 5%? 
3.1.4.3 Excise Tax; paragraphs 3.33-3.34, page 44: 
Could Indonesia explain how the excise tax on ethyl alcohol with a content of 5% or more, and on 
low-grade domestically produced tobacco is consistent with its GATT obligations (including National Treatment obligations)? WT/TPR/M/278/Add.1 
 
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  Response: 
Essentially, the calculation of excise tax fo r imported tobacco commodities are not based 
on quality, but tax rates based solely on the ty pe of product with one rate applicable for 
each type. 
The differential tax rates between domestic an d imported products only in low quality 
and low price commodities, considering that  segment only filled by a home (micro) 
industry. 
The regulation of alcoholic beverage excise ta x is not discriminatory because in case of 
product specification there are several di fferences between imported and domestic 
alcoholic beverages on quality, raw material , production processing, price and market 
segmentation (imported product are more premium class than local product). By 
imposing of excise tax and import duty, im ported product will gain several advantages 
which are: 
a. They will get higher quality for similar category (different domestic market 
segmentation)  
b. The specific tariff rate system will make the calculation of excise tax and import 
duties simpler and faster, and also will avoid disputes on custom valuation. 
It gives more guarantees for excellent leve ls of hospitality services by Indonesia 
tourism industry through maintaining impo rted alcoholic beverage availability. 
3.1.5.3 Import licensing; Para graphs 3.37-3.40, Page 45: 
Could Indonesia provide additional details regardin g the application of import licensing measures 
for imports of horticultural products and animal and animal products?  
Response: 
All information regarding the application of import licensing measures for imports of 
horticultural products and animal and animal products. 
Does Indonesia view these measures as being consistent with its WTO obligations? 
Response: 
GOI requires that certain products be subj ect to import licensing requirements for 
justified reasons. These include: protection  of human, animal and plant life and health, 
discouraging the importation of goods with very low standards, consumer protection, 
and security. Such licensing requirements ar e applied on a non-discriminatory basis, 
thus there is no exception. The import licen sing requirements have caused some delays 
but measures are being taken to ensure that  such delays can be brought to minimum. 
Furthermore, the such policy does not intent  to be permanent but it intends to be 
temporer policy. 
3.2 Measures directly affecting exports 
3.2.2 Export prohibitions, restrictions, and licensing 
3.2.2.1 Export prohibition;  Paragraph 3.78, Page 55: 
 
Canada notes that Indonesia will prohibit mining companies from exporting mineral ore products 
as of 2014, when they will be required to  undertake refining activities onshore.  
Could Indonesia explain how it will ensure that this measure will be consistent with paragraph 1 of 
GATT Article XI (General Elimination of Quantitative Restrictions)? 
Response: 
The government does not have intention to proh ibit export of mineral and other mining 
p r o d u c t .  W h a t  w e  d o  i s  t o  r e s t r i c t  e x p o r t  o f  t h e m  d u e  t o  e n v i r o n m e n t a l  r e a s o n s .  WT/TPR/M/278/Add.1 
 
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  Furthermore, we want to give job to our young generation, get added value, and to 
develop our downstream industry. 
Is this measure designed to be of a temporary or permanent nature? 
Response: 
Law is formulated based on the needs, time and political decision so that the 
amendment or review can be done  in certain period of time.  
Could Indonesia list the types of "mineral ore"  that will be subject to this export ban? 
Response: 
This substance is categorized as technica l issue so that Ministerial Decree ideally 
regulates bring about the flexibility of the regulation  
3.3 Measures affecting productions and trade 
3.3.1 – Government procurement; Paragraph 3.100, Pages 61-62:  
It is reported that Indonesia doesn't have a centralized government procurement body and that 
public expenditures are decentralized to national  ministries and agencies, provinces, regencies, 
municipalities and SOEs: 
Could Indonesia describe and provide references to the applicable procurement regime for 
procurement expenses incurred by national enti t i e s  a s  w e l l  a s  b y  p r o v i n c e s ,  r e g e n c i e s ,  
municipalities and SOEs? 
Response: 
Our government procurement regulation applie d to all government institutions including 
central, provinces, and municipalities. Rega rding SOEs, Indonesia has different policy; 
each SOE has different procurement regulati on, based on their own needs. Nevertheless 
if SOEs received funds from the state budget to buy goods or services, they shall follow 
government procurement regulation. 
Does Indonesia have statistics on the annual amount of government procurement expenditures 
made by the central government, the provinces, regencies, municipalities and SOEs? 
Response: 
Indonesia considers the importance of statis tical data about procurement expenditures 
made by the central government, the provin ces, regencies, municipalities and SOEs, 
nevertheless the data has not been developed. At this moment, the data is still scattered 
in each government institution due to  the decentralized procurement system 
3.3.1 Government procurement; Paragraph 3.102, Page 62: 
It is reported that following a Presidential in struction in 2011, e-procurement became mandatory 
as of 2012 and that each entity must set up its own electronic procurement system: 
Could Indonesia clarify whether the intent is that all notifications and publications of awards be 
made available through the e-procurement systems? 
Response: 
Indonesia policy on e-procurement is mandat ory for all government institutions since 
2012. Nevertheless, we are still in the process of building the awareness and 
commitment for all procuring entities an d stakeholders. The implementation of 
e-procurement includes the notification and publication of awards. 
What type or level of entity must set up an e-procurement system (Central, provincial, municipal, 
State Owned Enterprises)? WT/TPR/M/278/Add.1 
 
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  Response: 
All the procuring entities at all level have to use single e-procurement system developed 
by the National Public Procurement Agency (NPPA), while other government institutions 
have to launch the hardware and human re sources to operate the system. Indonesia 
now has launched 552 electronic procurement services throughout the country. Up until 
now, we are now still in promot ing the e-procurement system. 
Could Indonesia specify what percentage of the total number of its procuring entities have 
implemented e-procurement systems? 
Response: 
Indonesia now has launched 552 electronic procurement services throughout the 
country and approximately the two third of those have been operated 
Given the requirement for an e-procurement system for each entity, is Indonesia planning to have 
a single portal for publishing all procurement bids and solicitations for all procuring entities? Is 
INAPROC such a portal? 
Response: 
Indonesia has one single portal for publishing  all procurement bids and solicitations for 
all procuring entities which is ca lled INAPROC (www.inaproc.lkpp.go.id). 
3.3.3 State-trading, state-owned enterprises, and privatization: 
3.3.3.1 State-trading; Paragraph 3.114, Page 64:  
Canada notes that Indonesia is considering expanding Perum BULOG's mandate as a buffer agent 
over rice to include also sugar and soybeans. 
Could Indonesia explain what the expected buffer stocks for these commodities would be (relative 
to total monthly domestic production), and whether any additional import restrictions and/or 
customs duties would be put in place for the import of these buffer stocks?  
Response: 
The sugar and soybean buffer stocks manage d by Perum BULOG are aimed to control 
domestic price fluctuations. The expected qu antity will be the annual requirements of 
the Tempe/Tofu Producers Cooperatives, wh ich will be fulfilled through buying from 
domestic production and importations. Simila r to importations performed by the private 
sectors, customs duties will also be applie d for the import of these buffer stocks. 
When will Perum BULOG's mandate be extended? 
Response: 
The mandate to Perum BULOG will be extended as soon as th e regulation is officially 
imposed by the concerned Ministries. 
3.3.3.2 State-owned enterprises and privatiz ation; Paragraphs 3.116-3.118, page 64-65: 
It is reported that Indonesia's State Owned Ente rprises (SOEs) account for an estimated 40% of 
the country GDP. In 2012, Indonesia had 141 SOEs under the responsibility of the Ministry of 
SOEs. 
Could Indonesia clarify whether SOEs that conduct government procurement do it on their own 
account or whether also procure on behalf of other government entities? 
Response: 
In the case when SOEs participating in govern ment procurement, SOEs will conduct it on 
their own account and in accordance with business to business manner. WT/TPR/M/278/Add.1 
 
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  3.3.4 Competition policy and price controls: 
3.3.4.1 Competition policy; Paragraph 3.123, pages 67: 
 
Over the period 2007-2010, the KPPU received 895 re ports of anti-competitive practices, mainly 
bid-rigging cases.   
Could Indonesia break down that statistic and provide the specific number of cases relating to 
government procurement bids? 
Response: 
Bid rigging is the most handled competition infringement by the competition agency in 
Indonesia. It was accounted for 74% of tota l cases. The statistic for the past seven 
years shows that there were around 105 examinations in bid rigging case handled by competition agency, amounting for IDR 11.8 trillion nationwide (private and public 
procurement). The public procurement is ca lculated for 97 cases. Among the 97 cases 
(that become examinations), 63 bid riggings we re conducted at local level (provincial, 
municipal, and regional) and 34 bid riggings we re conducted at national level (state). 
The rigged value was different. National bid rigging cases were amounting up to IDR 
6.6 trillion ($676783800. 00), while the local cases calculated for IDR 1.6 trillion 
($164068800.00 ). Meanwhile, the SOE' bid rigging valued IDR 400 billion 
($ 41017200.00 ) ($1 = IDR 9752.00). 
Could Indonesia also specify to which level of go vernment the claims relate, including central and 
provincial government, Municipalities, Regencies and SOEs? 
Response: 
To prevent further violation, a close coordi nation between competition agency (KPPU), 
anti-corruption agency (KPK), and regulator on public procurement (NPPA) is made. The 
line is put clear. Competition agency will focus on the collusive  behaviour between 
enterprises, anti-corruption agency will focus on corruption (bribery, etc.) in the public 
procurement involving govern ment officials, and regulator (NPPA) will focus on the 
policy aspect and infringement of procur ement procedures. In certain cases, if 
competition agency found the aspect of corr uption in public procurement, they will 
transfer the corruption allegation to the anti - corruption agency, while competition 
agency focuses on the collusive behaviour between enterprises. Should any agency 
during their investigation found most behavi our was caused by the policy, they will 
inform the regulator to put the specific concern on the procurement policy for further amendment. Procurement service unit treats as close counterpart by all agencies in 
disseminating good practices in procurement to identify and avoid potential collusion 
and corruption in public procurement. Guide lines on identifying potential bid rigging, 
corruption, and best procedures are provided by all agencies to all procurement service 
units for that purpose. In handling competition case, the regulator (NPAA) often use by 
competition agency as witne sses to testify based on thei r expertise in procurement 
system or procedure. Recently, NPAA is closely communicating and involving the 
Commission in discussing procurement policy in competitive perspective. 
Part IV: Trade Policies by Sector 
4.4 Agriculture, fisheries, and forestry 
4.4.1 Agricultural policy;  Paragraph 4.11, Page 75: 
The Secretariat report notes that agricultural poli cy priorities are driven by concerns over food 
self-sufficiency, food consumption and production diversification, value-added and 
competitiveness, and the welfare of farmers. 
Could Indonesia elaborate as to which other central government ministries and agencies are also 
involved with the Ministry of Agriculture for agricultural policy development and implementation?  
Also, what is the role of local governments in developing agricultural policy? WT/TPR/M/278/Add.1 
 
- 14 - 
 
  Response: 
 Ministry of Agriculture 
 Ministry of Industry  
 Ministry of Trade 
 Ministry of Foreign Affairs 
 Drug and Food Control Agency 
 BULOG 
 Ministry of Coordinator of Economics  
 Ministry of Coordinato r of People's Welfare 
 And their Provincial and Regional Offices 
 Could Indonesia elaborate as to how its objective of food self-sufficiency affects its policies for 
those products for which it is more advantageous, in terms of price and quality, to import? 
Response: 
Food security is very important for Indonesia. We do not oppose imported food, but as 
an agricultural country in which most Indonesian people work and depend on 
agriculture sector, self sufficiency on food is our main target. We harmonize the needs 
of self sufficiency and the needs of free trade with import management which was 
implemented temporarily. 
4.4.3 Trade policy instruments;  paragraph 4.15, page 77: 
The Secretariat Report states that since 2008, companies must be approved by the Ministry of 
Trade as registered importers to import processed products including meat, cereal, sugar, and cocoa. The policy also applies to animal and animal products.  
Could Indonesia provide additional information regarding the process for importing the products 
included in the policy: what are the criteria to become a registered importer; are there any limits 
on the number of registered importers; what is the duration of the registration; and what other 
requirements need to be met to import these products?  
Response: 
In general, requirements of be ing registered importer are : 
a. Trade permit issued by local government 
b. Company registration issued by olcal government 
c. Importers Identification Number (issued by Directorate of Impor in Jakarta) 
d. Other requirements based on the regulated product   
4.4.3 Trade policy instruments;  paragraph 4.16, page 77: 
The Secretariat Report indicates that Indonesia has lowered its import quotas for beef (from 
73,000 tonnes in 2010 to 50,000 tonnes in 2011, and 34,000 tonnes in 2012) and a similar policy is applied to cattle products. 
Could Indonesia explain, in detail, why it has lowered its import quotas?  
Response: 
Data on domestic production and consumption is used to estimate import requirements. 
Import is conducted to meet domestic demand as well as to keep the balance between 
production and consumption. 
National demand is determined based on  SUSENAS (The National Socioeconomic 
Survey). An increase in domestic  demand will increase imports. WT/TPR/M/278/Add.1 
 
- 15 - 
 
  4.4.3 Trade policy instruments;  paragraph 4.17, page 77: 
The Secretariat Report states that the authoritie s noted that animal-based food must have an 
import recommendation from the Ministry of Agriculture's Directorate General of Livestock and 
Animal Health Service or the National Agency of Food and Drug Control (BPOM) and be 
accompanied by a halal certificate. 
Could Indonesia provide additional information re garding what the criteria for acquiring BPOM 
approval of each shipment? 
Response: 
Importation approval is mandatory for each shipment of food importation to monitor 
and safeguard the quality of imported food products. It is also used as database for 
traceability and alert systems in food control. 
NADFC issued importation appr oval through Indonesia National Single Window system. 
It is processed electronically throug h national electronic application ( www.e-
bpom.po.go.id ) and directly linked to customs. 
Could Indonesia clarify the process whereby BPOM  approves every shipment of processed food, 
food raw materials, and other food-related ingredients?  
Response: 
NADCF issued an import recommendation letter  for processing food from animal with 6 
months of validation time. This recommendation is issued prior the importation to fulfil the requirements for issuance the import appr oval from Ministry of Trade as mandated 
in Law No. 18 Year 2009 on Livest ock and Animal Health article 59. 
4.5 Mining; paragraph 4.29, page 80: It is noted that Indonesia's Government Regulation No. 24/2012 (amending Government 
Regulation No. 23/2010) on the Implementation of Mi nerals and Coal Mining Activities will require 
foreign investors in the Indonesian mining sector to divest a minimum of 51% of the equity in the mining licence holding entity by the tenth year of production, in accordance with a divestment 
schedule.  It is also noted that the central Government and provincial government or city/county 
government will receive first right of refusal to pu rchase the divested shares, before the shares are 
offered by auction (in order of priority), to: a state-owned enterprise, and regional state-owned 
enterprise or a national company. 
What is Indonesia's rationale for this measure? 
Response: 
Although natural resources are available in Indonesia in big quantity, it must be well 
managed as they are unrenewable resources . We want that exploitation of such 
resources shall envolve the participation of domestic society or domestic enterprises. 
Does Indonesia intend to retroactively apply this to entities holding a license prior to 
the implementation of Government Regulation No . 24/2012 or only apply this to new and future 
mining licenses, granted after the implementation of Government Regulation No. 24/2012? 
Response: 
Answer will be provided later. 
How will the value of the divested shares be determined when offered for sale to the various levels 
of government? 
Response: 
Answer will be provided later. WT/TPR/M/278/Add.1 
 
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  4.7 Services 
4.7.6 Other services; 
4.7.6.3 Construction, architecture and en gineering; Paragraph 4.105, Page 95: 
 
The Secretariat report, on page 122, mentions that Indonesia's economy has experienced averaged 
5.9% annual GDP growth. With this in mind, an d after reading paragraph 4.105 on page 95. 
Can Indonesia explain how it determines whether a local firm is unable to do the work? What kind 
of criteria does the Government use to make this determination? 
Response: 
According to law of construction servic e No. 18/1999, government determines any 
issues related to the foreign construction services company as follows: 
1. Foreign construction services company (Badan Usaha Jasa Konstruksi/BUJK) 
which is allowed to operate Indonesia is identified as the biggest scale company. 
2. BUJK enters to Indonesia in the form of Joint Venture or Joint Operation . 
3. Joint Operation: in its operation, BUJK  shall collaborate/partner with a local 
company, which is also a big scale company in the same sectors (architect, civil, 
mechanical, electrical, and landscaping). 
4. Joint Venture: foreign equity participatio n is limited to Indonesia's commitment in 
each sub sector. 
5. BUJK can only work on the projects whic h have a high cost, high risk and high 
technology. 
 
CHILE 
Párrafo 2,23/2.24 , página 8-9 
2.4. Iniciativas en materia de crecimiento verde 
"Indonesia está realizando los estudios técnicos necesarios para elaborar la "Estrategia de 
desarrollo con bajas emisiones de carbono (Oportunidades y políticas de reducción de las emisiones: el sector manufacturero)". El estudio sobre las bajas emisiones de carbono y las 
consiguientes opciones de desarrollo demostrarán que una sólida gestión del medio ambiente, la 
reducción de las emisiones, la eficiencia económica y el crecimiento son objetivos compatibles, y 
pondrán de manifiesto su importancia para la sostenibilidad del proceso de desarrollo de 
Indonesia." 
"Indonesia también está intentando reformar la política económica y fiscal para cumplir el objetivo 
de lograr una economía verde. Hay varios estudios en marcha impulsados por el Gobierno para 
examinar las posibilidades de reducir las emisiones, a saber: i)establecer unas condiciones favorables que se sustenten en mecanismos de financiación innovadores y en reformas de políticas 
(política fiscal y de fijación de precios, normas, educación y formación); ii)crear una asociación 
entre el sector público y el privado que incluya mecanismos de financiación de las inversiones verdes iii)situar la inversión verde en el centro de los paquetes de estímulo y del presupuesto 
ordinario del gobierno; y crear unas condiciones generales favorables (acuerdos comerciales, sobre 
derechos de propiedad intelectual, sobre ayuda oficial para el desarrollo, sobre transferencia de tecnología y sobre medio ambiente)." 
Pregunta: 
¿Podría la Indonesia desarrollar qué enfoques están evaluando en el tratamiento de los temas 
ambientales en los acuerdos de comercio?  
                                               
2 Section 1.3. WT/TPR/M/278/Add.1 
 
- 17 - 
 
  Response: 
Answer will be provided later. 
Texto WT/TPR/S/278 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 
3.1 Medidas que afectan directamente a las importaciones 3.1.6 Medidas comerciales especiales 
3.1.6.1 Medidas antidumping y compensatorias 
Párrafo 3.48, página 48 "Indonesia ha notificado diligentemente la situación de sus actividades antidumping mediante 
informes semestrales, pero no ha notificado inmediatamente todas las medidas preliminares o 
definitivas que ha adoptad. Entre 2007 y noviembre de 2012, inició 25 investigaciones nuevas. De 
ellas, 13 dieron lugar a la imposición de medidas definitivas; 7 concluyeron sin imposición de 
medidas definitivas; y las 5 restantes todavía no han terminado" 
Preguntas: ¿Qué razones ha tenido Indonesia para no notificar inmediatamente todas las medidas 
antidumping preliminares o definitivas que ha adoptado? 
¿Podría Indonesia señalar su entendimiento respecto de la obligación establecida en el 
Artículo 16.4 del Acuerdo Relativo a la Aplicación del Artículo VI del GATT 94? 
Response: 
KADI notifies preliminary and final action s in WTO Semi Annual Report. Henceforth, 
Indonesia will improve the notification method pursuant to WTO rules (ADA).   
3.1.6.2 Medidas de salvaguardia Párrafo 3.52, página 51 
"Desde 1995, Indonesia ha iniciado 18 investigaciones en materia de salvaguardias (10 durante el 
período examinado) y ha impuesto 11 medidas de salvaguardia (9 durante el período examinado). Este aumento sustancial del recurso a las medidas de salvaguardia ha convertido a Indonesia en 
uno de los Miembros que ha iniciado con mayor frecuencia este tipo de investigaciones y ha 
aplicado las consiguientes medidas desde 2010. Indonesia atribuye este aumento de la actividad en la esfera de las salvaguardias a que la industria es más consciente de que dispone de medidas 
comerciales correctivas para contrarrestar los efectos negativos de la liberalización del comercio".  
Pregunta: 
¿Puede Indonesia entregar explicaciones adicionale s que justifiquen este aumento en el uso de las 
medidas de salvaguardias? 
Response: 
The increase in the use of safeguard measures  was the result of re cent awareness in the 
domestic industry of the availability of trade remedies, i.e. the WTO Agreement on 
Safeguards. 
3.3 Medidas que afectan a la producción y al comercio 
3.3.1 Contratación pública 
Párrafo 3.98/3.99, página 65-66 
"No hay cifras concretas relativas al valor total de la de la contratación pública en Indonesia. Sin 
embargo, las autoridades han señalado que alrededor del 30% del presupuesto estatal se destina a la contratación y que, por lo general, el grueso de las compras el Gobierno central corresponde a 
los Ministerios de Obras Públicas, Transporte, Energía y Recursos Minerales, y Educación Nacional. WT/TPR/M/278/Add.1 
 
- 18 - 
 
  De acuerdo con fuentes externas, un promedio del 60% de los fondos disponibles a través de la 
ayuda al desarrollo se destina a la contratación pública". 
"Indonesia pasó a ser observadora en el Acuerdo sobre Contratación Pública (ACP) de la OMC en 
2012. A llevarse a cabo su anterior examen, varios Miembros preguntaron a Indonesia cuándo 
tenía previsto adherirse al ACP. Las autoridades respondieron que el Gobierno se proponía examinar con mayor detalle ese asunto". 
Pregunta: 
Según el Informe de la Secretaría OMC, Indonesia no tiene ley de contratación pública, siendo la 
principal fuente normativa el Reglamento Presidencial n° 54/2010, normativa que otorga excesivas 
preferencias a las empresas nacionales y que sólo permite a las empresas extranjeras para 
participar en licitaciones en "colaboración" con una empresa nacional y sobre cierto monto de la contratación (umbrales). Por otra parte, el Informe señala que en el año 2012, Indonesia obtuvo la 
condición de "observador" en el acuerdo sobre Contratación Pública (ACP) de la OMC.  
En este contexto y considerando que Indonesia, además de ser observador de un Acuerdo especial 
de Contratación Pública, se encuentra analizando o tomando contacto con algunos países para 
negociar Tratados de Libre Comercio o Acuerdos Comerciales, que consideren normas o 
compromisos en materia de Contratación Pública, ¿Las autoridades de Indonesia tienen planes o 
contemplan proyectos futuros, para la revisión de  su normativa existente en contratación pública 
con miras a dar acceso a los proveedores extranjeros, facilitar su participación en sus licitaciones o procedimientos de contratación pública? ¿Cómo pretender compatibilizar su normativa o política en 
materia de contratación pública con los eventuales Acuerdos Comerciales y su posible adhesión al 
ACP.  
Response: 
The source of the Indonesian state budget are from development aid and domestic 
revenues. Funds from development aid are ei ther bilateral or multilateral and mostly 
benefit  foreign suppliers. Up  until now, Indonesia has been working intensively to 
harmonize the Indonesian procurement regu lation and donors/lenders procurement 
guidelines. Regarding domestic revenues, we are focusing on pro poor, pro job and pro 
growth policies by using country system wh ich is in line with the Jakarta Commitment 
and the Paris Declaration. 
3.3.4 Política de competencia y control de precios 
3.3.4.1 Política de competencia 
Párrafo 3.121, página 71 "La Ley de Competencia abarca una amplia gama de conductas anticompetitivas. Entre otras 
cosas, prohíbe el abuso de la posición dominante, así como las restricciones verticales a la 
competencia y cualquier acuerdo o contrato que perita monopolios, oligopolios, fijación de los precios, cárteles, trusts y designaciones geográficas de mercados entre proveedores. La ley 
también prohíbe a los agentes empresariales conspirar con otras partes (incluidos organismos 
gubernamentales, empresas estatales y otras empr esas privadas) para manipular las licitaciones 
en las adjudicaciones de contratos. Entre las exenciones a la Ley de Competencia están los 
acuerdos relacionados con los derechos de propiedad intelectual y la producción y comercialización 
de mercancías y servicios que "afectan al nivel de vida del conjunto de la sociedad", tal como establece la Ley y ponen en práctica las empresas estatales. Recientemente, la OCDE ha 
examinado en detalle la legislación sobre competencia de Indonesia, basándose en un análisis 
anterior de la UNCTAD. La OCDE señala que la Ley de Competencia contiene todos los elementos 
esenciales necesarios par ser plenamente eficaz. No obstante, la OCDE plantea sugerencias 
concretas para reforzar y aclarar ciertos aspectos. Las autoridades también han identificado algunas deficiencias en las normas vigentes: la KPPU carece de facultades para obtener pruebas, 
lo que resulta particularmente problemático en los casos relacionados con cárteles; los plazos para 
investigar son demasiado breves; las sanciones por manipulación de las licitaciones (el grueso de WT/TPR/M/278/Add.1 
 
- 19 - 
 
  la labor de la KPPU) son poco estrictas; y algunas disposiciones jurídicas se superponen y es 
necesario racionalizarlas".  
Pregunta: 
¿Indonesia tiene planes para hacer modificaciones al marco jurídico de la política de competencia 
que permitan superar estas deficiencias?  
Response: 
Indonesia's competition policy and law have been reviewed twice by UNCTAD and OECD, 
in 2009 and 2012 respectively. The reviews did raise serious concerns as to the current situation of the authority of competition agen cy in obtaining evidences and imposing low 
fines which reduce the deterr ent effect to the enterprises. The potential problem may 
caused by (but not limited to) the compet ition law. A process for an amendment has 
been taking place at the Commission for mo re than three years. The draft has been 
submitted to the Parliament for further review. Some of the focuses of the amendment 
are related to the enhancement of the Commissi on's authority, institutional status, and 
level of fines. 
3.3. Medidas que afectan a la producción y al comercio 
3.3.4 Política de competencia y control de precios 
3.3.4.3 Marco legislativo e institucional  
Párrafo 3.137, página 75 "Las autoridades han señalado que Indonesia se halla en una fase avanzada de redacción de las 
enmiendas a varias leyes relacionadas con los DPI a fin de reflejar los cambios que han tenido 
lugar en este ámbito. Por lo que se refiere a la  reforma del derecho de autor, las principales 
cuestiones guardan relación con la aplicación del Tratado de Beijing, la piratería por Internet y la 
recaudación de regalías. Las reformas de la legislación sobre marcas de fábrica o de comercio se 
centran en la simplificación de los procedimientos de solicitud y publicación y en la introducción de la posibilidad de adherirse al sistema de Madrid. Las revisiones de la Ley de Patentes abarcan la 
incorporación de un requisito de divulgación en las solicitudes de patentes relacionadas con 
recursos genéticos y conocimientos tradicionales, así como disposiciones para aplicar el párrafo 6 del Protocolo por el que se enmienda el Acuerd o sobre los ADPIC. En cuanto a los dibujos y 
modelos industriales, uno de los principales cambios consiste en la introducción de criterios para 
determinar la similitud de los dibujos o modelos".  
Pregunta: 
Chile agradecería mayor información, en caso de que exista, sobre los impactos en el proceso de 
solicitudes a causa de la introducción del requisito de divulgación en las solicitudes de patentes 
relacionadas con recursos genéticos y conocimiento tradicional.  
Response: 
Indonesia is open to share the information if  there is any developm ent on the process of 
amending the Law. 
3.3.5.4 Cambios en la reglamentación (2007-2012) Párrafo 3.138, página 75-76 
"Durante el período objeto de examen, Indonesia recurrió en dos ocasiones (en 2007 y en 2012) a 
licencias obligatorias que permitieron al Gobierno explotar patentes farmacéuticas para producir ciertos medicamentos antivíricos y antirretrovirales. En todos los casos, el Gobierno utiliza esas 
patentes hasta que expiran".  WT/TPR/M/278/Add.1 
 
- 20 - 
 
  Pregunta: 
Chile agradecería mayor información respecto al sistema de indicaciones geográficas. En particular 
agradecería mayores antecedentes respecto a la titularidad de las indicaciones geográficas, 
quienes pueden solicitar una indicación geográfica una vez que esta se incorpora al registro y que 
procedimientos de observancia de estos derechos contempla su legislación.  
Response: 
Answer will be provided later. Pregunta: Asimismo, Chile agradecería mayor información sobre este punto en relación con el reconocimiento 
de indicaciones geográficas extranjeras.  
Response: 
Answer will be provided later. 
Pregunta: 
Chile agradecería una clarificación sobre las IG's ya reconocidas, como se señalan en la nota al pie 
n°83: "kopi arabika kintamani bali (café) (2008 ); champán (2009); mebel ukir jepara (muebles); 
lada putih muntok (especias); kopi arabika gayo (café); pisco (2010); tembakau hitam sumedang 
(tabaco); tembakau mole sumedang (tabaco); pa rmegiano reggiano; susu kuda sumbawa (leche); 
kangkung lombok (hortaliza); madu sumbawa (miel) (2011); kopi arabika flores bajawa (café) 
(2012); Purwaceng Dieng (bebida a base de hierbas) (2012); Carica Dieng (fruta) (2012); y Vanili Kepulauan Alor (vainilla) (2012)", respecto a cuáles son nacionales y cuáles internacionales y de 
qué país son estas últimas.  
Response: 
Answer will be provided later. 
Párrafo 3.140, página 76 
"Se han introducido dos reglamentos con el objetivo de impedir la piratería de medios ópticos. Uno 
de ellos restringe las importaciones de películas cinematográficas con el objetivo de impedir la 
piratería de películas y mejorar la aplicación de la Ley de Censura. Sólo pueden importarse 
películas de celuloide en forma de película original en negativo o copia de película en negativo (reproducción de la película original en negati vo), pero puede incluirse una copia del producto 
acabad. Este reglamento ha sido algo polémico, ya que se afirma que, al exigir que las películas y 
los vídeos de aficionados sean de fabricación indonesia, crea un obstáculo oneroso para el acceso 
al mercado. El segundo reglamento, el Decreto N°11 del Ministerio de Comercio de 2010, 
introduce un mecanismo de supervisión de las importaciones de ciertos productos, como máquinas y aparatos, materias primas y discos ópticos (vírgene s o no), con fines de protección de los DPI".  
Pregunta: 
¿Qué otros productos se encuentran incluidos en la regulación para prevenir la piratería de medios 
ópticos? 
Response: 
Answer will be provided later. 
4. POLÍTICAS COMERCIALES, POR SECTORES 
4.7.4 Transporte 
4.7.4.3 Transporte marítimo Párrafo 4.91, página 99 
"De conformidad con el artículo 8 de la Ley de Transporte Marítimo, deben ser empresas navieras 
nacionales las que lleven a cabo el transporte marítimo en el país, utilizando para ello WT/TPR/M/278/Add.1 
 
- 21 - 
 
  embarcaciones con pabellón y tripulación indonesios. Análogamente, está prohibido que las 
embarcaciones extranjeras transporten pasajeros o mercancías entre islas o puertos del territorio 
de Indonesia. (…)" 
Pregunta: 
¿Podrían explicar en mayor detalle el "Principio de cabotaje"  que rige en Indonesia?, y ¿En qué 
forma afectaría a los extranjeros? 
Response: 
Answer will be provided later. 
Preguntas sobre ASEAN 
¿Cómo va a ser el esquema de negociaciones por parte de Indonesia en el Acuerdo de Asociación 
Económica Amplia Regional (RCEP)? Es decir, ¿Indonesia negociara formando parte del bloque ASEAN o cada país negociará individualmente? ¿Las negociaciones serán sin exclusiones? 
Response: 
With regard to the negotiation arrangement, the RCEP Trade Negotiating Committee 
(TNC) will consist of senior officials repres enting each of the ASEAN Member States, 
Australia, China, India, Japan, Korea and New Zealand. The RCEP-TNC will have the 
overall responsibility for negotiating the RCEP , based on the timeframes and the Guiding 
Principles. The RCEP-TNC will be chaired by a Lead Negotiator ap pointed by the ASEAN 
Member States, working in conjunction with a Lead Negotiator appointed on a rotational 
basis by the ASEAN FTA Partners (AFPs).  
Internally, ASEAN has appointed Indonesia to  be the chair of TNC and at the time 
Indonesia will also represent ASEAN positi on in negotiating the RCEP with its 
counterpart (AFPs). With that regard, indi vidual country including Indonesia will 
negotiate ASEAN common position on RCEP at  the ASEAN caucus meeting. In preparing 
the schedule commitment, each Member Co untry is given the right to negotiate 
bilaterally (if necessary) with its targ eted counterpart in addressing the 
respective/individual concern or sensitiv ity. In facilitating consensus among all 
participating countries, the negotiation arrangement will be in the format of caucus - 
plenary -  breakout  sessions between and among the TNC and its working groups. 
 
Pursuant to the ASEAN Framework for Regi onal Comprehensive Economic partnership 
(AF-RCEP), the RCEP negotiation will be incl usive in nature as guided by the ASEAN 
Charter (section 15, Article 1): "to maintain  the centrality and proactive role of ASEAN 
as the primary driving force in its relation an d cooperation with its external partner in a 
regional architecture that is open, transparen t, and inclusive". In addition, it is also 
mentioned that ASEAN will establish an AS EAN-led process by setting out principles 
under which ASEAN will engage interested AS EAN FTA partners in establishing RCEP 
Agreement and, subsequently, with other ex ternal economic partners. Therefore, any 
AFP that did not participate in the RCEP nego tiations at the outset would be allowed to 
join the negotiations  at the later stage (s ubject to the agreed terms and conditions). 
Further, the RCEP agreement will also have an open accession clause to enable the 
participation of any AFP that did not participat e in the RCEP negotiations as well as any 
other external economic partne rs - once the RCEP negotiations are concluded which is 
expected by the end of 2015. 
¿Cómo se prepara Indonesia para la conformación de una Comunidad Económica de ASEAN 2015? 
¿Cuáles son las reformas implementadas para lograr dicho objetivo con los demás miembros de 
ASEAN? WT/TPR/M/278/Add.1 
 
- 22 - 
 
  Response: 
Building an AEC is a shared responsibility of  every stakeholder in Indonesia. Indonesia 
will provide an effort for enhanced communi cation and dialoque between stakeholders 
from the Government, business and the peoples of ASEAN. 
To meet the AEC 2015, Indonesia has issued several instruments such as: (i) President 
Decree No. 5/2008 regarding Focus Economics Program on 2008-2009, and 
(ii) President Decree No. 11/2011 on the Implementation of Commitments ASEAN 
Economic Community Blueprint. To help the readiness of Indonesia to the AEC 2015, the 
Presidential Working Unit for Supervision an d Control (UKP4) granting  special powers 
to monitor and submit regular reports to the President. 
Indonesia has some preparation: (i) Incr eased supervision of circulating goods 
especially imported goods; (ii)  increase supervision of the us e of Certificates of Origin 
(SKA) from trading partner count ries including internal ASEAN; (iii) increasing services 
to business communities through the Indo nesia National Single Window (INSW); 
(iv) infrastructure development with MP3E I framework; (v) implementation of the 
President Regulation on National Logistic s System; (vi) Implementation 35 priority 
roadmap on industry cluster developmen t; (vii) improve business climate by 
streamlining investment proced ures and regulations of busi ness areas; (viii) prepare the 
Regulation for domestic service sectors that  have been committed; (ix) use of Mutual 
Recognition Arrangement (MRA) has been agreed for Trade in Goods and Trade in 
Services. 
Indonesia also has some initiatives in order to communicate the AEC to stakeholders. 
The program will prioritize government, th e business community, first-tier national 
media and select foreign pub lications as the primary stakeholders and also engage 
awareness raisin. 
An AEC Blueprint that sets out the action lines to achieve these goals was adopted by 
the Heads of State/Government of 10 ASEA N member States on 20 November 2007 in 
Singapore. The AEC Blueprint was developed to identify the priority measures and 
actions, with clear targets and timelines, to be undertaken to establish the AEC by 2015. 
An AEC Scorecard mechanism is being develo ped to monitor commitment/milestones in 
the AEC Blueprint. Relevant Ministeria l bodies shall be responsible for the 
implementation and supervision of commitments related  with the AEC Blueprint. 
Indonesia itself has been organised outreach  activities, such as ASEAN Talks Business 
Seminar, to discuss with private sector representatives on AEC. 
The AEC Scorecard have measures to achieved. Indonesia must achieved some 
commitment for instance in the trade in goods,  trade in services, transportation sectors, 
investment, food agriculture, forestry, IP R, energy, taxation, SMEs, transport and 
external relations. 
CHINA 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
SUMMARY 
Page 7 (Para 4) 
"In this regard, the authorities consider that domestic industrial policy considerations, aimed, inter 
alia, at developing local industries and moving up the value chain, should be balanced with 
maintaining an open foreign trade and investment regime in order to ensure that Indonesia's 
external commitments continue to be fully respected."    
Questions: 
What specific measures and practices have been  adopted by the authorities of Indonesia to WT/TPR/M/278/Add.1 
 
- 23 - 
 
  balance protecting domestic industries and maintaining an open foreign trade and investment 
regime? How does Indonesia view the effects of such practices? 
Response: 
Indonesia adopts a balance approach of keep ing market open and keep opening market 
on the one hand, and providing space for domestic industry to grow with the support of friendly investment regime on the other hand. As a result, Indonesia's industrial 
production growth rate has stabilized duri ng the 2008-2009 world economic downturn 
before picking-up a new momentum in 2010 and 2011 as shown below (in %):  
Year 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 
Rate 1.5 7.5 3.5 4.9 3.7 10.5 4.8 2.6 4.7 3.7 3.5 3.6 4.1 
 Such an approach has also resulted in more  imports into Indonesia in recent years, 
especially for materials and capital goods, as well as a steady increase in FDI coming to 
the country. 
Page 9 (Para 14) "Public procurement in Indonesia is undertaken by  numerous entities at the central and regional 
levels of government as well as by state owned enterprises.  Indonesia became an observer to the 
WTO Government Procurement Agreement (GPA) in 2012. Government procurement remains an important instrument of industrial policy. Foreig n companies may only bid in co-operation with a 
national company (unless no national company has the ability to provide the goods and services 
requested) and only on bids that exceed certai n thresholds. Procurement rules mandate the use of 
domestic products in government procurement if there are providers offering goods and services 
with a local content exceeding 40% of value. Si nce 2007, transparency in procurement has been 
improved with the introduction of mandatory e-procurement for public tenders. … However, in 
spite of these reforms, bid-rigging remains a ma jor problem and accounts for around 70% of the 
Competition Commission's caseload, pointing to the need for a comprehensive procurement law and strengthened audit procedures. Indonesia's competition policy framework has not undergone 
any significant change in the period under review." 
Questions: Indonesia's current laws and practices regarding government procurement seems to discriminate 
against foreign suppliers. Does Indonesia's move in 2012 to become an observer to the WTO GPA 
mean that it is considering acceding to the GPA?  How does Indonesia view the conflict between its 
current stringent restrictions on participation of foreign suppliers in government procurement and 
its likely future policy direction as implied by its move to be a GPA observer? 
Response: 
Indonesia has no plan at this point to de cide whether it will jo in the Agreement on 
Government Procurement (GPA) anytime soon. Indonesia's move to join the discussion 
on GPA as an observer is meant to learn further how Indonesia could improve its own 
GP system based on international best prac tices. Indonesia is not a party to the GPA 
and, as such is not bound by any provisions contained therein. 
Does Indonesia have any plan to amend and refo rm its existing legislation and practices in 
government procurement so as to relax access restrictions on foreign suppliers? 
Response: 
Indonesia will continue to take appropriate me asures to improve its GP system to allow 
a wider spectrum of national business enti ties to participate in GP. However, in 
promoting infrastructure de velopment, Indonesia allows foreign companies to 
participate in an infrastructure project with a value equal to or more than US$10 million. WT/TPR/M/278/Add.1 
 
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  What are the remaining defects of Indonesia's mandatory e-procurement system in improving the 
transparency of government procurement? 
Response: 
The GOI continues to monitor and evalua te current e-procurement system and 
encourage agencies at the central and regional  levels that are yet to establish their e-
procurement system to expedite the process.  All this efforst should be supported by 
sufficient supply of human resources that m eet certain requirements and the necessary 
hardware to put the system in place. Cu rrently there are 552 e-procurement services 
throughout the archipelago, and the introducti on of this facility has helped the GOI to 
significantly curb bid-rigging and othe r types of procurement wrong-doings. 
1. ECONOMIC ENVIRONMENT  Page 15 (paragraph 1.9) 
"Indonesia has improved its position in the World Economic Forum's Global Competitiveness index 
(CGI). At 46th, its current rank is supported by  its strong macroeconomic environment (23rd, up 
from 89th in 2007), but infrastructure, institutions, and security remain weak." 
Questions: 
Has Indonesia developed any specific plan to improve its weak domestic infrastructure? If yes, 
please elaborate by, for example, introducing In donesian Government's specific infrastructure 
construction plan for the coming few years. How about plans concerning institutions and security? 
Response: 
Indonesia has put a specific plan to addr ess the issues of underdeveloment of its 
infrastructure. The plan was elaborated in the National Medium-Term Development Plan 
2010-2014. Some specifics include: 
a. Land and Spatial Planning: consolidation of policies for handling and utilization of 
lands for the public in a comprehensive way and management of spatial planning 
in an integrated way. 
b. Roads: completion of the construction of the Trans Sumatra, Java, Bali, 
Kalimantan, Sulawesi, West Nusa Tenggar a, East Nusa Tenggara, and Papua, with 
a total length of 19,370 km in 2014. 
c. Communications: construction of integrated inter ‐mode and inter ‐islands 
transportation infrastructure networks  in accordance with the National 
Transportation System and Multimode Transportation Bl ueprint and the reduction 
of transportation accidents to 50% compared to the current situation by the year 2014. 
d. Public Housing: construction of 685,0 00 units of Simple and Healthy House 
Subsidized, 180 units of flats (Rusunami ) and 650 twin blocks including the 
residential area supporting facilities th at can accommodate 836,000 low income 
families in 2012. 
e. Flood Control: completion of flood contro l infrastructure construction, inter alia, 
the Jakarta East Flood Canal before 20 12 and the integrated handling of the 
Bengawan Solo River Basin before 2013. 
f. Telecommunications: completion of the op tic fibre network construction in the 
eastern part of Indonesia before 2013 and maximizing the availability of data and 
audio communication access for all people. 
g. Urban Transportation: enhancement of tr ansportation system and network in 4 
large cities (Jakarta, Bandung, Surabay a, and Medan) in accordance with the 
Urban Transportation Blueprint, including the completion of construction of the 
electric railway transportation constructi on (MRT and Monorail) by not later than 
the year 2014. WT/TPR/M/278/Add.1 
 
- 25 - 
 
  Issues concerning institution and security are also addressed in the National Medium-
Term Development Plan 2010-2014, especia lly in relations to "Reform of the 
Bureaucracy and Governance" and "Other Nation al Priorities" covering Politics, Law, and 
Security. 
2. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES   
Page 21 (paragraph 2.5) 
"The Government has also issued a more detailed Master Plan for the Acceleration and Expansion 
of Indonesia's Economic Development (MP3EI) 2011-2025, which is intended to complement the long- and medium-term plans.  Among the key objectives of the Master Plan is to increase the 
competitiveness of Indonesia's businesses and encourage a movement into higher value-added 
activities. It sets out a roadmap for the economic development of six regional economic corridors, each with industrial clusters focusing on priority sectors (Table A2.1)."   
Questions: 
What are functional positioning and development pr iorities of the six regional economic corridors? 
Response: 
The introduction of six regional econom ic corridors is meant to ensure that 
infrastructure development iwill close—rather than wide n—the developmental gaps 
across the archipelago, and that the econ omic corridors to be developed will be 
designed according to their respective comparative and competitive advantages. 
Therefore, priorities on one particular corridor will differ fr om those of other corridors, 
but they all should eventually be linked to  each other as the backbone of Indonesia's 
economy in the future. Some features to be  developed in each corridor are as follows: 
Sumatra Economic Corridor is expected to  become "the Centre for Production and 
Processing of Natural Resources as the Nation ' s  E n e r g y  R e s e r v e s " .  I t  c o n s i s t s  o f  1 1  
economic centres – Banda Aceh, Medan, Peka nbaru, Jambi, Palembang, Tanjungpinang, 
Pangkal Pinang, Padang, Bandar Lampung , Bengkulu, and Serang. The economic 
development strategy for this Co rridor focuses on six main ec onomic activities: palm oil, 
rubber, coal, shipping, steel and Sund a straits national strategic area.  
Java Economic Corridor is expected to beco m e  " t h e  D r i v e r  f o r  N a t i o n a l  I n d u s t r y  a n d  
Services Provision''. It consists of five economic centres – Jakarta, Bandung, Semarang, 
Yogyakarta and Surabaya. The economic deve lopment strategy for this Corridor focuses 
on three main economic activities: food and beverage, textile and transportation 
equipment. In addition, there are also wishes  to develop other economic activities in 
this corridor such as shipping, ICT an d defence equipment as well as further 
development of the greater Jakarta area. 
Kalimantan Economic Corridor is envisioned to  become "the Centre for Production and 
Processing of National Mining and Energy Reserves". It consists of four economic 
centres – Pontianak, Palangkaraya, Banjarma sin and Samarinda. The main focus will be 
on oil and gas, coal, palm oil, steel, bauxite and timber. 
Sulawesi Economic Corridor is expected to  become "the Centre of Production and 
Processing of National Agricultural, Planta tion, Fishery, Oil & Gas and Mining". It 
consists of six economic centres – Makassa r, Kendari, Mamuju, Palu, Gorontalo and 
Manado. The main focus of this Corridor will be on agricultural (rice, corn, soybean and 
cassava), cocoa, fishery and nickel mining. 
Bali - Nusa Tenggara Economic Corridor is de signed to become "the Gateway for Tourism 
and National Food Support". It consists of  four economic centres – Denpasar, Lombok, 
Kupang and Mataram. This corridor needs acceleration and expansion of economic development which will focus on three main ec onomic activities: tourism, fisheries and 
animal husbandry. WT/TPR/M/278/Add.1 
 
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  Papua –Maluku Islands Economic Corridor is de signed as "the Centre for Development of 
Food, Fisheries, Energy and National Mining".  It consists of seven economic centres – 
Sofifi, Ambon, Sorong, Manokwari, Timika, Ja yapura and Merauke. The main focus of the 
Papua –Maluku Corridor will be on food agri culture – MIFEE (Merauke Integrated Food 
and Energy Estate), copper, nick el, oil and gas and fisheries. 
What are the specific policies and provisions on the participation of foreign and foreign-invested 
enterprises in the development of the six regional economic corridors? 
Response: 
To support the development of the six Economic Corridors, Indonesia has adopted 
several measures to improve the investment climate. These include, but not limited to: 
‐ Providing investment incentives (t ax allowance, tax holiday, etc). 
‐ Developing One-Door Integrated Service (ODIS) or One-Stop-Services for Investment 
(OSSI) at the regional levels (regencies). 
‐ Developing and accelerating the implementati on of  Electronic Investment Licensing 
and Information Service System (SPIPISE known as NSWi), which is a network of 
information & licensing system to facilitate investment projects. 
‐ Packaging, promoting and facilitating re ady-to-offer infrastructure projects. 
 
In August 2011, the most anticipated tax holiday regulation (Minister of Finance 
Regulation No. 130/PMK.011/2011) was enacted to provide two types of tax facility, 
namely (i) corporate income tax exemption and (ii) corporate income tax deduction. 
Issuance of this regulation is expected to  increase investments in infrastructure and 
attract numbers of foreign investors to inve st in Indonesia. Efforts are also taken to 
introduce infrastructure bonds. Such bonds sh ould be able to acce lerate infrastructure 
development by way of providing governme nt guarantee to interested investors. 
Does the Indonesian Government welcome investments from foreign engineering machinery 
enterprises? Has the Indonesian Government offered any preferential policy for factory setting-up 
by foreign investors in the industry? 
Response: 
Basically, all investments should be in  comformity with the Law No. 25 of 2007 
concerning Investment. The Presidential Decree No. 36 of 2010 further provides wider 
opportunities in areas that were previous ly closed to investment. On enginering 
machinery, the GOI welcomes foreign investme nt in this sector. The fiscal incentives 
provided could include capital goods & raw ma terials for two years and may be extended 
for another two years.   
There are 739 sectors (in 27 fields) that are open to foreign investors, while 24 sectors 
(in 6 fields) remain closed for obvious rea sons (for examples marijuana plantation, 
alcoholic beverages, SME, and heritage/cultu re). There is no specific restriction for 
foreign investors to establish engineering machinery enterprises. 
In order to improve investment and busine ss climate, as provided in the National 
Priority No. 7 of the National Medium-Ter m Development Plan 2010-2014, Indonesia has 
launched several policies: 
 Government Regulation No. 52 of 2011 concerning Tax Incentives to ease 
investment. The GOI has provided a package of incentive in the form of investment 
allowance for certain business sectors that  can contribute to fostering business 
growth and improving competitiveness,  supporting downstream industries, 
supporting national industrial development policy, supporting the MP3EI programs, and supporting the development of certain areas to ensure equitable 
development. WT/TPR/M/278/Add.1 
 
- 27 - 
 
   Law No. . 39 of 2009 concerning Special Economic Zone (SEZ). The GOI provides 
certain tax incentives and licenses for bu siness activities conducted within SEZ, 
such as in term of facility for income tax,  reduction of land and building tax, facility 
to import goods at reduced tax rates into the SEZ, and facility to obtain business 
licenses. 
 
Page 22 (paragraph 2.8) 
"Indonesia has maintained a solid record of meeting its WTO notification obligations. However, 
notifications are outstanding in the areas of ag riculture (domestic support; export subsidies; 
special safeguards; and tariff quotas); import licensing; notification procedures for quantitative 
restrictions; state trading enterprises; and subsidies and countervailing measures. Indonesia has not notified any new, or any changes to existing laws, regulations or administrative guidelines, 
which significantly affect trade in services that Indonesia is obliged to notify under Article III.3 of 
the GATS (Table A2.2)." 
Questions: 
When will Indonesia finish and submit outstanding notifications in the field of trade in goods as 
mentioned in the Secretariat Report? 
Response: 
As productions and manufacturing of goods fa ll within the ambit of various agencies, an 
initiative has been pursued to coordinate among different ministries and agencies for 
GOI to notify to the WTO any regulations a ffecting trade in goods in a more timely 
manner. It is expected that the notifications can be submitted soon. 
With regard to trade in services, why has Indonesia not been able to look comprehensively into its 
existing laws, regulations and administrative measures significantly affecting trade in services for 
notification to the WTO? Is there any plan for Indonesia to work systematically in order to fulfill its trade in services notification obligations to the WTO? 
Response: 
With regards to services sector, efforst have b een taken in the last two or three years to 
better coordinate the policy development so as to provide a strong basis for GOI to 
further develop Indonesia's services sector. At some points, this may require amending 
the existing laws and regulations. The Minist ry of Trade is coordinating other relevant 
ministries and agencies to map out relevant  laws and regulations concerning services, 
and to make a quick assessment thereafter to  fulfill Indonesia's obligation to notify 
relevant laws and regulations to the WTO. 
 
Page 26-29 (paragraph 2.29) 
"Foreign ownership is prohibited in various busine ss activities (i.e.100% local capital requirements) 
(Table 2.3). Maximum foreign capital thresholds range from 49% to 95%."  
Questions: In addition to the foreign capital thresholds, are there other restrictions set out in Indonesia's laws 
and regulations against foreign investment in mining, agriculture and infrastructure construction? 
Response:   
Indonesia is not against foreign investment in mining, agriculture and infrastructure 
constructions. The general policy concerning investment in Indonesia is designed to 
allow foreign investors to invest in Indone sia while providing a fair space to local 
investors as and when necessary to take part  in economic activities. The Presidential 
Decree No. 36 of 2010 concerning the List of  Business Fields Closed to Investment and 
Business Fields Open, with Conditions, to In vestment provides the overall framework on WT/TPR/M/278/Add.1 
 
- 28 - 
 
  sectors that  are closed to in vestment and sectors that ar e open to investment with 
conditions. A very few numbers of agricultur e sectors are reserved for micro, small and 
medium enterprises and cooperatives, while  a few other numbers of sectors require 
special permit. 
Finally, on constructions, restriction applied other than foreign capital threshold is that 
some subsectors are also reserved for mi cro, small and medium enterprises and 
cooperatives. This applies particularly to constructions which use simple technology 
and/or low risk and/or work valued at maximum Rp. 1 million. 
Page 29 (paragraph 2.30) 
"As set out in the 2007 Investment Law, the national Government has responsibility for cross-
province investment; investment related to non-renewable natural resources possessing high environmental damage risk…" 
Questions: 
Could Indonesia please give examples of "n on-renewable natural resources with high 
environmental damage risk? 
Response 
These include the mining of tin, nickle and coal. Page 31 (Para 2.36) 
"Reports have raised concerns about security and corruption despite reforms undertaken. Recent 
concerns have been expressed about bills to am end the Anti-Graft Act and the KPK Act, which 
would dilute legal penalties for corruption and reduce the KPK's authority. According to the 
authorities, these bills are still under discussion. It has been noted that getting electricity has become more difficult, as a result of increased connection fees, and that minimum capital 
requirements for establishing a business have been increased. 
The Economist Intelligence Unit reports that there is a lack of transparency in the legal system, 
which sometimes appears to discriminate against foreign interests and that there are inflexible 
labour laws and high severance payments." 
Questions: What are the latest developments in the discussions on amendments to the Anti-Graft Act and the 
KPK Act? When will the amendments be finally adop ted? How does Indonesia view the relationship 
between the amendments to the Acts and th e investment environment in Indonesia? 
Response: 
Discussions are still on-going on the idea of  amending the Anti-Graft Act and the KPK 
Act. As the KPK is an institution which is in dependent of any government intervention or 
influence, the initiative of amending the aforementioned Acts is carried out without 
government involvement. Nonetheless, GOI welcomes such development as it will further assist in eradicating corruptions and creating a more favorable investment 
climate in Indonesia.   
What measures will Indonesia take to improve the access to electricity? Response: 
As the economy grows, demand for electric ity also increases significantly. The GOI 
encourages the participation of  private sector to invest in  energy-generating sector in 
Indonesia through the public-private partnership. There is a great potential of 
geothermal in Indonesia, in addition to hydrop ower, that is yet to be tapped to meet an 
increasing demand for electr icity throughout the country. WT/TPR/M/278/Add.1 
 
- 29 - 
 
  What is the intention of Indonesia to increase minimum capital requirements for establishing a 
business? 
Response: 
As an UNESCAP report highligthed, there are at least 103 countries around the globe 
that require entrepreneurs to put up a predet ermined amount of capital before starting 
registration of licensing formalities. Fo r Indonesia, increasing the minimum capital 
requirements is a logical respon se to growing interest by fo reign investors to invest in 
Indonesia. The minimum capital requirements are meant to: 
 deter or prevent careless establishm ent of a company in Indonesia; 
 deter or prevent the establishment of  a small company only to commit 
circumvention through Indonesia; 
 ensure that a company has adequate resources for operating business in 
Indonesia; and 
 potentially enables a business owner to have capacity to pay back the debt. 
3. TRADE POLICIES BY MEASURE   
Page 32 (paragraph 3.3) 
"Use of a customs broker to import goods into Indonesia is not required. All importers must be 
registered with the DGCE: they are given a cust oms identification number (NIK) and an importer 
registration number (API)." 
Page 32 (paragraph 3.4) 
"Since 2007, two types of importer registration number have been used: a General API (API-U) 
and a Producer API (API-P).  Each importer may obta in only one type of API. This duel-registration 
system has been modified several times and is curre ntly regulated by Minister of Trade Regulation 
No. 27/2012 (as amended)." 
Page 32 (paragraph 3.5) "A General API (API-U) is granted to importers who import goods for trading purposes. API-U 
registered importers are permitted to import goods falling within only one of the 18 sections in 
Indonesia's good's classification system. Exceptions are permitted for state-owned enterprises and for imports where there is a special relationship between the importing and exporting companies." 
Questions: 
Could Indonesia please provide in English Arti cle 6 of Regulation No. 27/2012 (as amended) of 
Ministry of Trade? 
Response:  
The English translation of the said Article is as follows: 
Article 6 
(1) Company holding the API-P may import certain industrial goods so long as they are 
needed for business deve lopment and investment. 
(2) Certain imported industrial goods as referred to in paragraph (1) may be traded 
and/or transferred to other parties. 
(3) Certain industrial goods as referred to in paragraph (1) shall not be used in 
production process and to be used only fo r the purpose of market test and/or as 
complementary goods. 
Could Indonesia please explain why exceptions ar e permitted for state-owned enterprises and for 
imports where there is a special relationship between the importing and exporting companies, as WT/TPR/M/278/Add.1 
 
- 30 - 
 
  described in the Secretariat Report? What does this "special relationship" mean? Are such 
exceptions state-trading as defined in the WTO? If not, how would Indonesia justify the 
consistency of such exceptions with the non-discrimination principle of the WTO? 
Response: 
Import permissions are granted to state-owne d enterprises as the main objective of the 
purchase is to meet public needs, and not because of a commercial consideration. 
Meanwhile, requirement that there is a spec ial relationship between the importing and 
exporting companies is meant to ensure th at the business relationships are there and 
that the importing company does not simply buy the products in retail markets with any 
possibility for tracking-back the origin. The sp ecial relationship can be described as a 
situation where one company has the ability to control the other company, or having 
significant effects on the other company in ma king decisions on finance and operation in 
accordance with the acceptable accounting standard. 
Page 32 (paragraph 3.7) "Port of entry restrictions apply to: (a) food and beverages, toys, electronics, footwear and 
garments; (b) horticultural products; (c) pearls; (d) ozone depleting substances; (e) salt; 
(f) alcoholic beverages; and (g) hazardous materials. These products are also subject to pre-
shipment inspection and import licensing requirements (see below)." 
Questions: On 7 May 2012, the Indonesian Ministry of Agricu lture issued the G/SPS/N/IDN/46 Notification to 
release the draft 15/Permentan/OT.140/3/2012 Regu lation. As set out in the draft regulation, 
fresh fruits  and vegetables should be imported via the Port of Tanjung Perak, Port of Belawan, Soekarno-Hatta Port in Makassar as well as Djakar ta-Soekarno International Airport. On the same 
day, the government promulgated No. 30/2012 Regula tion on administration of import of fruit and 
vegetable, which began to restrict import of fresh fruits and vegetables by way of import licensing. Such non-tariff measure of Indonesia has had serious effects on the interests of exporters. How 
does Indonesia justify the consistency of its port of entry restriction with WTO rules? Does the 
government have any plan to cancel port of entry restriction in the near future? 
Response: 
Every country has the rights to ensure that products entering its territory will not cause 
any harm to human, animal and plant life or  health of the host country. As Indonesia 
experienced an increased number of incidents of the intrutio n of exotic organisms that 
are allien to Indonesia, and in view of increa sing volumes of import of fresh fruits and 
vegetables which may bring with them organi sms that could threaten human, animal or 
plant life or health, it became  imperative for Indonesia to take the necessary steps to 
minimize the probability of harmful organi sme entering Indonesia. Hence, four ports 
were designated as import gates for certain fruits and vegetable products as these ports 
have both better capacity to handle the qua rrantine inspections and facilities to manage 
an increased inflow of fruits and vegetabl es. Indonesia believes such a measure is in 
accordance with Article XX of GATT. 
Page 32 (paragraph 3.8) 
"Various goods require pre-shipment inspection (PSI) by surveyors who have been approved by 
the Indonesian authorities." 
Questions: 
What is the purpose of PSI for various goods? WT/TPR/M/278/Add.1 
 
- 31 - 
 
  Response: 
The purpose of applying the PSI is to veri fy the quality, quantity, price and customs 
classification of goods to be exported to In donesia, and this is in line with Article 1 of 
the Agreement on Preshipment Inspection.  
China understands that PSI is conducted in exporting country of goods. Are the PSI inspectors 
staff dispatched by Indonesian authorities to the exporting country, or staff of relevant inspection 
institutions in the exporting country that have been approved or certified by the Indonesian 
authorities? 
Response: 
PSI activities in the exporting countries  are conducted by a surveyor which has 
affiliation with Indonesian surveyor a ssigned by the Indonesian authority. 
Is it the Customs authorities that is responsible for PSI in Indonesia? If not, which authority? 
Response: 
The authority who is responsible for assigning a surveyor to conduct the PSI is the 
Ministry of Trade, not Indonesian Customs authority.  
Page 33 (paragraph 3.9) 
"Indonesia has had an electronic data interchange (EDI) system in operation for the submission of 
customs documentation since 1997. This was linked into Indonesia's national single window 
(INSW), launched in 2007. The INSW, inter alia, allows for the single submission of customs documents and applications for trade licences, pa yment of duties, synchronized processing, and a 
final decision by Customs. By the end of 2012, it was operational at eight sea ports in Indonesia as 
well as the Soekarno-Hatta International Airport in Jakarta and the Juanda Airport in Surabaya. The authorities indicated that around 90% of trad e enters or leaves Indonesia through these ten 
customs entry points."  
Question: What government agency in Indonesia is responsible for coordination, management and 
maintenance of the INSW? Does the INSW include matters regarding declaration for inspection and 
quarantine in addition to customs clearance, license application and etc.? 
Response: 
It is the Coordinating Ministry for Economic  Affairs who is responsible for coordinating, 
managing and maintaining the Indonesian Single Window of the INSW.  
 
Page 34 (paragraph 3.13) 
"Indonesia's rules on customs valuation are contained in Article 15 of Customs Law No. 17 of 
2006. Indonesia uses the transaction value as the basis for customs valuation. When this is not 
feasible, Indonesia uses the sequential methods set out in the Customs Valuation Agreement.  Information was not available on use of the various customs valuation methods. The authorities 
indicated that a database of market prices is regularly updated."  
Questions: Could Indonesia please explain the reasons for the unavailable information on use of the various 
customs valuation methods? 
Response: 
Answer will be provided later. 
 
How frequently does Indonesia update its database of market prices? Could Indonesia please WT/TPR/M/278/Add.1 
 
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  provide the market prices of certain products e.g. mobile terminals in some recent representative 
periods as updated? 
Response: 
The database is updated every month. Page 34 (paragraph 3.15) "The DGCE provides advance rulings for both customs valuation and classification. The authorities 
indicated that these rulings are binding."  
Questions: Could Indonesia please provide more information on the binding rulings in respect of the following: 
are the binding rulings applicable in Indonesia's entire customs territory, to all importers and 
exporters, and are there restrictions on the term of application? 
Response: 
The implementation of customs ruling is bind ing only for an importer who asked for a 
ruling. It should be applicable to  all customs territory of Indonesia. 
WTO's current negotiations on trade facilitation also include advance rulings. From the negotiation 
text, advance rulings should be interpreted as being binding only upon the applicants of the 
advance ruling. What are the views on this of the Indonesia Customs authorities? 
Response: 
Indonesia's view is that an advance ruling is  a written decision provided by a Customs 
authority to an applicant prior to the impo rtation of goods covered by the application 
that sets forth the treatment the Customs authority shall provide to the goods at the 
time of importation. 
Page 36 (paragraph 3.20) 
"During 2005-10 a number of changes were made to tariff rates in order to achieve the tariff 
harmonization programmes targets: to achieve low tariff rates; have relatively harmonized tariff 
rates among upstream, intermediate, and downstre am products; and to simplify and make more 
uniform its tariff structure. These, together with nomenclature changes reduced Indonesia's simple 
average MFN applied rate from 9.5% in 2006 to 7.8% in 2012; raised tariffs to 5% on a number of lines that were previously duty free; and liberalized some higher tariffs (Charts 3.1 and 3.2). " 
Questions: 
Could Indonesia please inform the main tariff lines of which the tariff rates have been increased? 
What are the specific reasons behind the increases? 
Response: 
Details of tariff lines in which the rates ha ve been increased will be provided in due 
course. The reason behind the increase is as outlined in answer to question number 28. 
What are the direct reasons for implementing the tariff harmonization programmes? Is it for the 
need of domestic industrial development? Could Indonesia please introduce in detail specific 
content of the programmes and its implementation results? 
Response: 
Tariff harmonization programmes are taken to restructure tariffs that has been 
considered as discouraging the development in the upstream industries where tariffs for 
materials and intermediate goods are higher than tariffs down the stream. As a result, 
there has been an increased trend toward investment in the upper stream sectors in 
recent years. WT/TPR/M/278/Add.1 
 
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  Page 43 (Table 3.6 VAT rates, 2012) 
General rate 10% 
VAT exemptions for services 
 Medical, social and religious services, postal services;  certain financial and 
insurance services; educational services ; entertainment serv ices performed by 
artists and entertainers; radio and televisi on broadcasting services (other than 
advertisements); public transportation  services;  manpower and recruitment 
services; hotel and boarding house se rvices; government services; parking 
services;  public telephone (coin) serv ices;  and food and catering services. 
 
Questions: 
Does the "postal services" include courier, express delivery and other logistics services? 
Response: 
 
As stipulated by Law No. 38 of 2009, the term  "postal services" should include services 
for written and/or electronic mails, parcel  services, logistics services, financial 
transaction services, and postal agency services for the public. 
 
Does the VAT preferential policy apply to all serv ice providers in the respective sectors or have 
limitations in this respect? Does it appl y to relevant foreign-funded enterprises? 
Response: 
Answer will be provided later. 
 
Page 45 (paragraph 3.37) 
"Import licensing requirements are in place for a number of reasons, including: for health, safety, 
security, and environmental purposes; to implement commitments taken under international 
agreements; to prevent smuggling; and to impl ement policies that aim to protect domestic 
production."  
Questions: 
 What are the import licensing requirements ad opted by Indonesia for environmental purpose? 
What are the specific environmental reasons?  
Response: 
 
For some products that have the potential to adversely affect the environment, an 
import licesing is required for the importation of such products. An importer wishing to 
import such products should apply for a licen sing by submitting a request together with 
other required documents (such as copies of  industrial license, trading license, company 
registration, and tax number, importer identification number, identity number for customs purpose, and recommendations from th e Ministry of Industry and the Ministry 
of Environment Affairs). The rationale for requiring an import licensing for 
environmental purpose is to ensure that th e company importing such products has the 
capacity to handle the risk associated with the importation of such products as waste, 
scrap and toxic and hazardous materials.   
 Page 45 (paragraph 3.39) 
"The authorities indicated that around 2,060 tariff lines are subject to import licensing. This 
represents around one-fifth of Indonesia's tari ff. The number of products subject to import 
licensing increased significantly over the review period, with new requirements being introduced on: horticultural products (2012); pearls (2012); animal and animal products (2011); used capital 
goods (2011); sodium tripolpyphospate (2011); fertilizer (2011) oil and gas (2009); non-WT/TPR/M/278/Add.1 
 
- 34 - 
 
  hazardous and non-toxic waste (2009); LPG and LPG gas containers (2008); certain food, 
beverages, medicine, cosmetics, clothing and f ootwear (2008); electronic goods and children's 
toys (2008); and colour multifunctional machines and colour photocopying and printing 
machines (2007)."  
Question: 
Why did Indonesia subject so many products to import licensing requirements? Are there 
exceptional cases where the products do not need import licenses? 
Response: 
GOI requires that certain products be subj ect to import licensing requirements for 
justified reasons. These include: protection  of human, animal and plant life and health, 
discouraging the importation of goods with very low standards, consumer protection, 
and security. Such licensing requirements ar e applied on a non-discriminatory basis, 
thus there is no exception.  
Have the new import licensing requirements caused any delays or hindrances in import? What are 
the changes to the average customs clearance time of the products? 
Response: 
The import licensing requirements have ca used some delays but measures are being 
taken to ensure that such delays can be brought to minimum. 
Page 45 (paragraph 3.40) 
"Various concerns have been raised by WTO Members regarding the complexity, lack of 
transparency, and trade-impairing effects of Indonesia's import licensing requirements, in 
particular with respect to horticultural products; animals and animal products; electronics; ready-to-wear clothes; children's toys ; footwear; and food and beverages."  
Questions: Does Indonesia have any plan to lower the ratio of the tariff lines subject to import licensing 
requirements? Does Indonesia have any plan to im prove in respect of the complexity and lack of 
transparency of its import licensing requir ements? If yes, please inform in detail. 
Response: 
GOI has started reviewing some of these import licensing requirements with a view to 
improve transparency, clarity, simplicity, certainty and cons istency. One option bening 
considered is establishing a one-stop-servi ces which will make doing business easier, 
faster and cheaper. 
Page 48 (paragraph 3.52) 
"Since 1995, Indonesia has initiated 18 safeguard investigations (10 were initiated over the review 
period), and has imposed 11 safeguard actions (9 were imposed over the review period) 
(Table 3.10). This substantial increase in Indonesia's use of safeguard measures has made it one of the most frequent initiators of safeguard investigations and resulting actions since 2010." 
Questions: 
 
Why has Indonesia initiated so many safeguard investigations which would have significant 
negative impacts on trade? WT/TPR/M/278/Add.1 
 
- 35 - 
 
  Response: 
Safeguard is an instrument any Member of WTO can resort to when it consider that the 
influx of import or the potential thereof thre atens domestic industry. This is a right any 
Member can exert so long as it is implemen ted according to the relevant Agreement and 
disciplines. 
 Will the number of safeguard actions further increase after Indonesia amends its legislation on 
safeguard actions? 
Response: 
There is no way of forecastin g whether the number of safegu ard actions will increase or 
decrease. It will very much depend on how Indonesian industries can fairly compete 
with imported goods on an equal basis. 
 Page 50 (paragraph 3.53)  
"There have been no changes to the institutions responsible for the setting of national standards 
(Standard Nasional Indonesia (SNI)) since Indonesia' s previous Review, or to the procedures to be 
followed. The authorities indicated that a Standardization and Conformity Assessment Act is being 
drafted."  
 Question: 
 
Could Indonesia please introduce the main conten t and time schedule of the Standardization and 
Conformity Assessment Act? 
Response: 
The draft act of standardization and co nformity assessment (SCA) has now been 
reviewed internally and gone through the pu blic consultation and harmonization process 
before being submitted to the Parliament for consideration under the 2013 national 
legislation program. The main content of the draft act is to set up the architecture of national standardization regime (who do ing what) including conformity assessment 
procedures. It will also cover provisions on planning and development of standards, as 
well as their implementation and maintenanc e. The conformity assessment aspect will 
cover provisions on accreditation and certif ication. There will also be provisions on 
distribution of authority in standardization among related technical institutions, both at 
the central and provincial levels.  
(Further information please visit http://jdih.bsn.go.id/) 
Does Indonesia allow interested parties from other WTO members to participate in the formulation 
of Indonesian technical regulations and standards? How can these foreign interested parties participate in the process? 
Response: 
Indonesia provides an opportunity to all in terested parties from other WTO Members to 
participate by offering comments on the draf t technical regulation for the period of 2 
months notification. Meanwhile, for national standards development, interested parties 
who would like to join the process have to  register themselves through the Mastan 
(Indonesia Standardization Society) for a spec ific dicipline/interest group. However, it 
is mentioned in the MASTAN statute that the member shall be Indonesian citizen. 
 Page 51 (paragraph 3.59)  
 
"As at December 2012, there were 7,394 approved SNIs (Chart 3.3): 97% voluntary, and 3% 
(i.e. 254) mandatory technical regulations (there were 211 technical regulations at the time of WT/TPR/M/278/Add.1 
 
- 36 - 
 
  Indonesia's previous Review). The 254 technical regu lations are from the Ministry of Industry (79); 
Ministry of Energy and Mineral Resources (19); Mini stry of Marine and Fisheries (80); Ministry of 
Public Works (57); Ministry of Transportation (14 ); NFADC (4); and Ministry of Agriculture (1). The 
authorities indicated that all SNIs are published on the SNI Information System (SISNI) 
(http://websisni.bsn.go.id)."  
Question: 
 
Could Indonesia please provide information and data on mandatory environmental standards? 
Response: 
There are no mandatory SNI related to environmental issue.   
 
Page 55 (Table 3.12 Export prohibitions, 2012) 
Product Rationale 
Raw Rubber  Not provided 
Certain wood products including raw 
and semi-processed rattan  Support domestic processi ng industry and prevent 
smuggling 
Fish eggs and fry  Not provided 
Certain scrap iron and metal  Implementation of commitments under the Basel 
Convention 
Certain mining products Environmental protection.  Implementation of 
commitments under the Ba sel Convention    
Various animals, birds, reptiles, insects, 
fish, crustaceans, and plants    Implementation of commitments under the CITES 
Convention   
Sand, soil and top soil  Environmental protection    
Subsidized urea fertilizer  Improve the effective control of fertilizer from abuse 
and diversion, and maintain the national availability of 
fertilizer    
 
Question: 
 
Could Indonesia please elaborate on the list of products prohibited from being exported for the 
purpose of environmental protection as well as the necessity of such export prohibition? 
Response: 
The list of products prohibited for export are detailed in the MOT Regulation No. 44/M-
DAG/PER/7/2012 concerning Products Prohibited  for Export. The objectives of the said 
regulation is to protect environment against over exploitation, as well as for national 
security and safety reasons. Products covere d include raw rattan, sand, soil and top soil, 
and some minerals. 
Are there restrictions on the domestic use and production in Indonesia of these products prohibited 
from being exported? Why? 
Response: 
Answer will be provided later. 
Page 55 (paragraph 3.78) 
"As envisaged in Ministerial Regulation No. 34 of 2009, the Government of Indonesia will prohibit 
mining companies from exporting mineral ore products (currently subject to export licensing and taxes) as of 2014, when they will be required to undertake refining activities onshore."   WT/TPR/M/278/Add.1 
 
- 37 - 
 
  Questions: 
Has Indonesia planned to prohibit the export of all or only certain mineral resources? If only 
certain, could Indonesia please inform specifically what these mineral ores are? 
Response: 
GOI has no plan at this juncture to decide whether to prohibit the exportation of all or 
only certain mineral ores. 
It seems that Indonesia has not imposed domestic production restrictions on mineral ores. How 
does Indonesia justify the consistency between the export restrictions and the WTO rules? Has the 
Indonesia Government considered changing this measure and this way of administration in the 
future? 
Response: 
We need to differentiate between export restrictions and domestic management of 
mineral ores production. Export restrictions are meant to strictly control the exploitation 
of mineral ores which over decades has been  exploited in an abusive manner due to a 
strong demand of export mark ets. The environmental implications are such that some of 
the exploited areas suffer unrecoverable damage. Export restrictions recently 
implemented have been followed by efforts to  control the domestic production of the 
said mineral, taking into account Indonesia's strong commitment to green growth. 
Therefore, there should be no contradictions  between measures to restrict import of 
mineral ores on the one hand, and the domestic  production of mineral ores on the other 
hand as GOI continue enhancing its campaign  to promote responsible mining activities. 
Page 56 (paragraph 3.79) "Exporters must obtain an authorization to export from the Director-General of Foreign Trade 
(DGFT) within the Ministry of Trade (MOT); generally, this is contingent upon obtaining a 
recommendation from another ministry.  However,  the basis for granting or refusing these 
recommendations is unclear." 
Questions: 
Does the export authorization here mean export license? Response: 
Yes, export authorization in this context me ans export license although it should be 
underlined that it is simply for a registration purpose. In principle, export is open for all 
products. Export authorization or export licen se will only be requir ed to products which 
relate to security, health  and environment purposes. 
For all the products subject to export restrictio ns and licensing requirement, should exporters 
apply for the authorization at the DGFT only after by being recommended by other relevant 
authorities? 
Response: 
Yes, exporters must obtain recommendation fr om relevant authorit ies before applying 
an export authorization.   
What are the conditions for exporters to obtain recommendations from other authorities? Do the 
conditions vary among different authorities? Will an exporter surely obtain an authorization from 
the DGFT after being recommended by other authorities? 
Response: 
Exporters are obliged to get recommendatio n from relevant authorities to export 
products which are listed in MOT Regulation No. 13/M-DAG/PER/3/2012 concerning the WT/TPR/M/278/Add.1 
 
- 38 - 
 
  General Provision on Exportation. After obtaining the recomendation, an export 
authorization will be given by the Directorat e General for Foreign Trade. Conditions to 
obtain recommendations may vary since they may determined by di fferent authorities. 
Page 58 (paragraph 3.81) 
"Over the review period, new export taxes have be en introduced on leather and wood; crude palm 
oil; raw cocoa; and mineral ore products (Table 3.14). The main objective of these measures is to 
encourage value-added processing within Indonesia. Secondary considerations are to secure 
domestic supply and to safeguard the environment.  According to the authorities, this policy seems 
to have been successful in achieving its objectives .  They noted, for example, that the export tax 
on raw cocoa has succeeded in attracting more than US$200 million in FDI."  
Questions: Are the products subject to export tax for th e purpose of environmental protection already 
included in the list of products subject to export tax (table 3.14)? 
Yes, and it is regulated in Minister of Financ e's decree after discussed and approved by in line 
ministries. 
It seems that Indonesia has not imposed domestic production restrictions while levying export 
taxes. How does Indonesia evaluate the impact on enviromental protection of export restriction by 
way of export tax ? 
Response 
Export tax implementation in Indonesia is on ly a temporary policy. The rationale of the 
said policy is environmental reason and pr oducts availability in domestic market. 
Page 59 (paragraph 3.84) "Indonesia has one FTZ, situated in the Riau Isla nds of Batam, Bintan and Karimun. These islands 
are located to the south of Singapore and have a long history of strong commercial links with 
Singapore and Malaysia. They were granted Free Port and Free Trade Zone status in 2007 for a period of 70 years, having previously had the status Bonded Zones Plus (see below). The main 
business sectors operating within the FTZs are technology, medical equipment and electronics, 
telecommunications, agri-business, textiles, industrial assembly and fabrication, shipbuilding, tourism, and oil and energy services." 
Questions: 
What preferential policies has Indonesia provided  for telecommunication service industry in the 
Free Port and Free Trade Zone? Are there preferential policies specifically for foreign-funded 
enterprises in this sector? 
Response : 
For the time being, Indonesia has 2 (two) Free Trade Zone which are Sabang FTZ and 
Batam, Bintan, Karimun FTZ. Based on those laws, any imported goods sent to FTZ will 
get duty excemption. 
Page 61 (paragraph 3.97) 
"The state-owned Asuransi Ekspor Indonesia (ASEI) offers export credit insurance to exporters for 
all products other than oil and gas, in the event that they do not receive payment from the buyer, 
and to banks, in the event that exporters fail to repay their loans. Commercial and political risks 
are covered. ASEI may reimburse up to 85% of losses, while the remaining 15% is borne by the exporter. The premium is calculated based on  country repayment risks; terms of payment 
associated with the transaction; and the credit term. In May 2012, ASEI established a Sharia 
Insurance Unit, offering sharia compliant insurance products.  The authorities noted that there is WT/TPR/M/278/Add.1 
 
- 39 - 
 
  no regulation forbidding domestic insurance companies (including ASEI) from providing their 
services to foreign clients."  
Questions: 
Could Indonesia please provide more informatio n on ASEI's policies for export of domestic 
enterprises? Also, could Indonesia please inform ASEI's business size, customer coverage and claims? 
Response:  
Answer will be provided later. 
Is Indonesia's export credit insurance market open to foreign companies? If yes, how many foreign 
credit insurance institutions (including subsidiaries, branches and representative office) are now in 
Indonesia? What were the market shares of these foreign institutions in Indonesia in 2012? Has ASEI cooperated with any of the foreign institutions? If yes, what are the forms of the cooperation 
and how does ASEI view the cooperation? 
Response:  
Answer will be provided later 
Could Indonesia please inform in detail the composition of the Sharia Insurance Unit as well as its 
business scope? Has Sharia Insurance Unit had special considerations on the insurance rate, 
coverage and size and premium? What are differe nces between Sharia Insurance Unit and other 
export credit institutions (e.g. Indonesia Exim-bank) in the business fields and export support policies? 
Response:  
Answer will be provided later 
Are foreign enterprises eligible for the insurance business of Sharia Insurance Unit? If yes, what 
are qualification requirements on them? 
Response: 
The Sharia Insurance in Indonesia has grow n since 1994 in line with the establishment 
of PT Syarikat Takaful Indonesia motorize d by Indonesia Moslem International Council 
(ICMI) through Abdi Bangsa Foundation, Ba nk Muamalat Indonesia, PT asuransi Jiwa 
Tugu Mandiri, Department of Finance of th e Republic of Indonesia and several Moslem 
Businesmen in Indonesia. So far only nation al companies running for Shariah business. 
Page 64 (paragraph 3.118) 
"According to the authorities, by the end of 2011,  the state had partially divested ownership in 
various industries including: cement, telecommunications, mining, energy, pharmaceuticals, construction, highways, steel manufacturing, airlines, and banks…."  
Questions: 
Does the partial ownership divestment in industries mean that Indonesia will encourage and 
promote the independent and autonomous developm ent of the industries? It is noted that the 
state ownership of the cement industry was reduced from 65% in 2007 to 51% in 2012. Could 
Indonesia please elaborate more on the future  policy direction of the cement industry? 
Responses 
It should be noted that th e cement industry has never been monopolized by state 
enterprises. There are three biggest player s in the country, i.e. PT Indocement, PT 
Holcim, and PT Semen Indonesia (state ente rprise, was known as "Semen Gresik"). In 
the cement industry, state owned enterpri ses and private enterprises are treated 
equally by the Government as the regula tor of the sector. In owning PT Semen WT/TPR/M/278/Add.1 
 
- 40 - 
 
  Indonesia, the government separates clearly th e entity who act as the shareholder of PT 
Semen Indonesia (the Ministry of SOEs), and the entity who act as the regulator of the 
sector (technical ministries). 
Hence, the divestment of state ownership on  PT Semen Indonesia from 65% to 51% in 
2002 was a divestment of state ow nership in an enterprise (not in the sector), and is not 
aimed at autonomous development of the sector, because the sector was already 
thriving and autonomously developed by  both SOE and the private sectors.  
As the shareholder of PT Semen Indonesia, GOI aims to increase its market share, both 
nationally and internationally, while providing more tangible contribution to the real 
sectors. As regulator of the sector, the GO I intends to keep the sector vibrant with 
active participation from both  SOE and private enterprises. 
4. TRADE POLICIES BY SECTOR   
Page 77 (paragraph 4.18) 
"In 2007, the Government replaced the flat rate export tax regime on crude palm oil with a 
variable regime whereby the export tax increases as the international price of crude palm oil 
increases." 
Questions: 
According to existing policies, Indonesia can impose export tax up to as high as 40% on crude 
palm oil, which makes the domestic market price of palm oil far below that in the international market and stimulates rapid expansion of investment in oil chemical production facilities in 
Indonesia. However, globally the production capa city of oil chemical industry has already been 
under a saturation condition, Indonesia's practice will worsen the over-capacity situation and further shrink the market. How does Indonesia view the consistency of its export tax with WTO 
rules including Article 4 of the Agreement on Agriculture? 
Response: 
Indonesia's policy on increasing export  taxes is only a temporary policy. 
Does Indonesia have a plan or a timetable to change this variable rate export tax regime? 
Response:  
Change of tax, custom duty and export tax is discussed in a national team which is 
called Team Tariff. Changing of tariff and tax depends on trade situation. To assure is 
that when we rise the applied tariff, it will not exceed the applied tariff. 
Page 80 (paragraph 4.29) 
"The Indonesian Government recently issued  Government Regulation No. 24/2012 (amending 
Government Regulation No. 23/2010) on the Im plementation of Minerals and Coal Mining 
Activities. The regulation's preamble explicitly states that one of its rationales is to allow more 
Indonesians to participate in mining. The significan t change brought about by the new regulation is 
a requirement for foreign investors in the Indonesian mining sector to divest a minimum of 51% of 
the equity in the mining licence holding entity by the tenth year of production, in accordance with 
a divestment schedule.  For many foreign investors, this will mean a mandatory divestment of equity. The share must first be offered for purchase to the central Government. If the central 
government is not prepared to purchase the share, it is to be offered to the provincial government 
or city/county government. If they also refuse, the shares are to be offered by auction to (in order 
of priority) a state-owned enterprise, and regional  state-owned enterprise or a national company." 
Questions: 
China also has noted that Indonesia issued new legislation in 2012 restricting foreign equity in the 
mining sector. Before that foreign investors coul d hold equity up to 80% when investing in the 
mining industry in Indonesia, now the new legislation restricts the equity of foreign investors WT/TPR/M/278/Add.1 
 
- 41 - 
 
  within 49% and requires the majority foreign shareholders to divest the equity to local investors 
within 10 years. This policy of Indonesia has severely affetced the enthusiasm and interests of 
foreign investors. Could Indonesia further explain the reasons for such a move to restrict so 
stringently the equity of foreign investors? Is this restriction related to the prohibition on export of 
mineral ores, which is to be implemented in 2014? 
Response:  
Answer will be provided later. Is the government of Indonesia going to consider  changing this policy which has widely made 
foreign investors to believe that the investment environment is worsening in Indonesia? 
Response:  
Answer will be provided later. 
In November 2012, the Indonesian Court of Consti tution, in accordance with Article 33 of the 
Constitution stipulating that "the state should fully lever natural resources for the well-being of the 
people", ruled to dissolve the BPMigas whose func tion would be taken over temporarily by the 
Ministry of Energy and Mineral Resources before a new legislation would establish a new regulatory 
body. This rule increases the uncertainty of Indonesian legislation in the oil and gas sector. When 
will Indonesia issue the new legislation and esta blish the new regulatroy body to resolve the 
problem caused by the ruling? 
Response:  
Answer will be provided later. 
Page 82 (paragraph 4.41) 
"Exporters to Indonesia must comply with numerous import licensing requirements 
(Section 3.1.5.3 and Table A3.2).  The Government implemented a wide-ranging regulation 
in 2009 imposing import licensing procedures on a broad range of products, including electronics, 
household appliances, textiles and footwear, toys, and food and beverage products. Indonesia maintains non-automatic licensing requirements on certain textiles and textile products under 
which, inter alia, only approved local garment or textile producers may import fabrics covered by 
the regulation, and these fabrics may only be used as inputs in domestic production, not for resale or transfer." 
Questions: 
It seems that on fabrics, in addition to import licensing requirements, Indonesia also imposes 
restrictions on right to import and export and on sale conditions after import. Could Indonesia 
please explain the relationship between such restrictions on the right to import, which only allows approved local garment or textile producers to im port fabrics, and the WTO rules and principle in 
particular those concerning state trading? 
Could Indonesia please explain the relationship between the restriction that these fabrics may not 
be used for resale or transfer and WTO's principle of national treatment? Is there such a restriction 
on local fabrics produced in Indonesia? 
Does Indonesia plan to adjust the various import restrictions on fabrics as mentioned above in the 
near future? 
Response: 
We do not restrict the import of fabrics, we  only regulate it in order to increase the 
competitiveness of textile an d textile products industries .  
Answer will be provided later.  WT/TPR/M/278/Add.1 
 
- 42 - 
 
  Page 84 (paragraph 4.48) 
"Indonesia's initial offer of April 2005 in the DDA negotiations contains a limited number of new 
sector inclusions and removals of existing limitations.  Indonesia has not submitted a revised offer.  
Indonesia's initial GATS offer would provide for new commitments on educational services and 
health services.  Foreign-equity ceilings for construction would be raised to 55% but remain unchanged for telecommunications. Indonesia has received collective requests in the following 
sectors and modes: legal services, architectural/ engineering/integrated engineering, computer 
services, postal/courier services, telecommunications, audio-visual, construction, distribution, education, environmental services, financial services, maritime transport, air transport, logistics, 
energy, cross-border trade (mode 1), and comme rcial presence (mode 3). Indonesia makes its 
offer conditional on the outcome of negotiations stipulated by the GATS, including negotiations on the question of emergency safeguard measures." 
Questions: 
A law on foreign investment issued by Indonesia in 2007 (No.25/2007) raises the foreign-equity 
ceilings for the telecommunications sector. Does it mean that Indonesia will improve its offer on 
further opening up the telecommunication sector in negotiations both within the WTO and for other 
bilateral and regional free trade agreements  by raising foreign-equity ceilings for 
telecommunications? 
Response: 
With regard to telecommunication services commitment in WTO, Indonesia maintains its 
position in the current conditional initial o ffer. Nevertheless, Indonesia is of the view 
that any review made to existing domestic  regulation, which contains certain foreign-
equity ceiling will be in the other approach of services liberalization regime, while the 
services commitment in WTO will be subject to negotiation taking into account the 
development of this sector. 
Will Indonesia autonomously expand the opening up  of the environmental services? If yes, what 
will be the considerations behind? Could Indonesia introduce specific plans of such autonomous 
opening-up? 
Response: 
Regarding the market access opening of en vironmental services, Indonesia maintains 
the balance position of this sector; in the one hand to progressively open the market 
access and on the other hand to intensely supp ort the development of this sector. In the 
WTO negotiation as well as in regional foru m, Indonesia indicated to offer some sub 
sectors in environmental services. The open ing up of environmental services will be 
based on the market demand and the need to create a competitive market in this sector, 
taking into account the condition of domestic  environmental services provider. However, 
Indonesia is paying a strong attention to the protection and management of 
environment. 
Page 93 (paragraph 4.94) "Angkasa Pura I and II (Persero) are responsible for operating 25 air terminals divided equally 
between west and east Indonesia. They retain a monopoly over air terminal capacity, with the 
ability to limit private-sector investment, resulting in cases of overcrowded terminals and poor international flight safety standards."  
Page 93 (paragraph 4.95) 
"There are 186 airports in Indonesia, 24 of which are registered as international airports. In a few 
international airports (besides the ones with the highest traffic), capacity improvements and 
modernization are required. This might be hampered by the low airport charges, which may not be WT/TPR/M/278/Add.1 
 
- 43 - 
 
  able to cover new investment costs. Also, in many  domestic airports, air navigation equipment is 
clearly in need of updating." 
Questions: 
Could Indonesia please provide details of its airpor t administration system, including: is there an 
airport regulatory body in the government which is independent of Angkasa Pura I and II? Are Angkasa Pura I and II state-owned enterprises? Apart from the 25 airports under the management 
of Angkasa Pura I and II, are the remaining airp orts all managed by the state or state-owned 
enterprises? 
Response: 
 Directorate of Airport in Directorate Gene ral of Civil Aviation is responsible for 
Airport Regulation 
 Angkasa Pura I and Angkasa Pura I II are state owned enterprises.  
 Furthermore, apart from the 25 airports und er the management of AP I and AP II, 
the remaining airports are all managed by the state (Based on Ministry of 
Transportation Decree No. 11 Year 2010 there are 164 Airports including three 
international airports) under Directorate Gene ral of Civil Aviation (DGCA), Ministry of 
Transportation.  
Has the government provided fiscal and other various support to the airport operation in 
Indonesia? If yes, could Indonesia please introduc e capital sources, ways and forms of the support 
and conditions or criteria involved? 
Response: 
 Government, in this case is Directorate General of Civil Aviation – Ministry of 
Tansportation, has provided the financial supports and other various supports for the 
airports operation which are under the DGCA authority.  
 The source of the fiscal support is from  state budget (APBN). Airport development 
funding (Government Regulation No. 40 Year 2012 on Airport Development and 
Environmental Conservation) will be given taking into account : 
a. accordance with the National Airport Master Plan; 
b. aviation safety and security; 
c. harmony and balance with the local cu lture and other activities associated 
with the airport location; 
d. economical, financial, social, regional  development, technical development 
and operational feasibility; 
e. environnemental feasibility. 
 
Could Indonesia please give more details of it s airport charges? To whom it is applied and 
according to what standards? 
Response: 
Airport charges imposed based on Minister Regulation No. 22 year 1996 on Flight 
Services Tariff (JP2) for Domestic Flights, wh ich are charged to the user or owner of the 
aircraft by airport chief or he ad of a branch of PT. AP I based on Minister Regulation 
number 29 year 1997 on the Structure and Administration Services Group Rates of 
Airport Affairs at Public Airport, the Flight Services Charge consists of Landing service 
charge, aircraft placement and storage (P JP4U), passenger service charge (PJP2U) 
which is imposed to aircraft passenger; avia tion service charge, counter service usage, 
avoid bridge use charge.  
Could Indonesia please inform its sources of capital for airport construction, the utilization scope of WT/TPR/M/278/Add.1 
 
- 44 - 
 
  the capital and its administration system? 
Response: 
For airports runned by Ministry of Transp ortation authority, funds for the airport 
construction are from state budget which is  budgeted annually. While the airports under 
AP I and AP II management, the source of funding is from each budget.  
 
Page 93 (paragraph 4.96)   
"With liberalization and an open-sky policy dating back to 1999, civil aviation in Indonesia, 
especially domestic travel, has increased rapidly, along with the number of air carriers.  However, 
air safety and security issues are somewhat limiting the smooth expansion of commercial civil aviation in Indonesia." 
Questions: 
Does Indonesia already have an improvement plan for air safety and security issues? 
Response: 
In Indonesia, establishment of aviation po licy and regulation is under Directorate 
General of Civil Aviation (DGC A, Ministry of Transportation ) responsibility. With the Law 
No. 1 year 2009 as legal references, and Blueprin ts of Air Transportation (Directorate of 
Civil Aviation Decree Ref: SKEP/109/VI/2005) as policy guidelines. Indonesia has taken major step to improve its aviation sector whic h focuses on safety, security and services.  
 
Could Indonesia please briefly introduce the de velopment of airfreight and general aviation 
services in Indonesia? 
Response: 
Currently, there are 5 airfreight companies and 42 general aviation companies operated 
in Indonesia.    
Has the Indonesian Government provided vari ous policy support including capital to the 
development of airfreight and general aviation services? If yes, please provide more details of 
sources of the capital, the ways and forms of the support, and standards or criteria involved. 
Response: 
Indonesian Government supported the developm ent of airfreight services by allowing 
foreign investment in airfreight company with maximum FEP 49%. 
 How many bilateral air transport agreements has Indonesia signed? Among which how many 
involve open-sky agreements? Is the No.7 Traffic Right already included? 
Response: 
 Indonesia has 73 agreements, 56 agreements  have been signed and 17 agreements 
have been initialled.  
 Only one agreement is involved in open-sky agreements (with USA).  
 There is no number 7 Traffic Right included. 
 
What were the market shares of domestic and foreign carriers in the Indonesia's international air 
transport market in the past two years? 
Response: 
The Market shares are not aviable. 
 
What are Indonesia's specific requirements and restrictions on chartered flights by foreign airlines 
to Indonesia? For example, are these chartered fl ights operated by a foreign carrier prohibited 
from carrying Indonesian passengers? WT/TPR/M/278/Add.1 
 
- 45 - 
 
  Response: 
Law No. 1 year 2009 on Aviation, article 93 (1), 93 (2): 
a. Chartered flights operated by foreign air carrier, which provide route to Indonesia, 
are prohibited for carrying passenger from Indonesian territory, except its passengers who have been derived from its former flights (in-bound traffic). 
b. Chartered flight performed by foreign airlines required to have flight approval from 
Minister of Transportation and any ot her ministers who have in charged.  
c. Minister Regulation No. 25 year 2008, Articles 82, 83 and 84. 
 
Has Indonesia allowed foreign investments in airlines and airports? If yes, could Indonesia please 
inform specific policies or conditions? 
Response: 
 Indonesia welcomes foreign investment for ai rport ancillary services by joint venture 
with Indonesian Legal Entity with the maxi mum foreign equity participation is 49% - 
Article 237 Act No. 1 year 2009 and Presidential Regulation No. 36 year 2010. 
 Indonesia also welcomes foreign investments for national airlines with the maximum 
equity participation is 49%, and the majo rity of the share should be owned by 
Indonesian or Indonesian corporation (Article 108 Act number 1 year 2009). 
 
Page 95 (paragraph 4.105) 
"Foreign construction firms are only permitted to be subcontractors or advisors to local firms in 
areas where the Government believes that a local firm is unable to do the work. In addition, for 
government-financed projects, foreign companies must form joint ventures with local firms."  
Questions: 
China has noted that as from 1 January 2009, companies undertaking contracted construction 
projects and power plant projects in Indonesia should pay 3% income tax if they obtain corresponding qualifications, and pay 4% income tax if they do not obtain such qualifications. The 
qualifications here refer to the LPJK Certificate and the SIUPJK Certificate. However, it seems that 
after 2009 no foreign contracting enterprise has ever successfully obtained these certificates. 
Some Chinese enterprises are fully qualified international contractors, but they are requested to 
make a supplementary payment of the 1% income tax difference because they have not been issued the two certificates. Could Indonesia please inform what are the conditions for and 
procedures of issuing the LPJK Certificate and the SIUPJK Certificate in Indonesia? When will the 
two certificates be granted to relevant Chinese enterprises? How will Indonesia address its request to Chinese enterprises for supplementary payment of  the 1% income tax difference in view of the 
above-said situation? 
Response: 
In the transition period, as long as constr uction services develo pment board (Lembaga 
Pengembangan Jasa Konstruksi) has not yet issued certificate for foreign company, 
hence the certificate issued by Ministry of Public Works will have dual function; i.e., as 
the certificate and as the license for fore ign construction services company. The 
transition period itself is regulated in Mini ster of Public Works regulation No. 5/2011 on 
the guideline requirements for granting cert ificates for foreign firm on construction 
services. 
 
Indonesia's existing laws require that a foreign contractor must purchase at least 38% local 
products and at least 71.33% local services. These high local content requirements have greatly 
impacted and even hindered the operation of foreign firms in Indonesia. Are these requirements consistent with the commitments made by Indonesia in its GATS Schedule? Will Indonesia make 
changes to this situation in its bid to improve its investment environment and to promote national WT/TPR/M/278/Add.1 
 
- 46 - 
 
  development? 
Response:   
Indonesia supports the development and compet itive condition in construction services; 
however any requirements applied in this se ctor consider both national condition and 
international market.  
The Indonesian Government has implemented differentiated tax policies for foreign-funded and 
local enterprises, and the tax system is significantly favorable to local enterprises. A foreign firm is required to pay as high as 10% departure income tax at the final settlement upon the completion 
of a construction project. This hurts the enthusiasm  of foreign-funded enterprises to contribute to 
local development with their technological and economic advantages to realize mutual benefits and win-win results with Indonesia. Has Indonesia plan ned to implement national treatment in term of 
taxation between foreign-funded and local enterprises? 
Response:   
Answer will be provided later. 
How does the Indonesian Government examine whet her a local construction firm is qualified for 
undertaking a construction project in relevant industries? Are the criteria same with those applied 
to foreign construction firms? If a local firm is not fully qualified, can a foreign firm be the general 
contractor instead of a subcontractor? 
Response:   
Answer will be provided later. 
Page 95 (paragraph 4.109) "In 2009, the Indonesian legislature introduced a new law with restrictions on the provision of 
postal services, broadly defined to include courier, express delivery, and other logistics services. 
According to the authorities, the law requires postal service providers to be majority-owned by Indonesians and foreign providers limit their activities to provincial capitals with international 
airports and seaports. The Ministry of Communication and Information has said that joint ventures 
will be able to service cities with international airports and seaports, as well as supporting economic areas of provincial capitals with international airports and seaports." 
Questions: 
Could Indonesia please introduce the current openin g-up status of the postal and express services 
in Indonesia, including foreign companies presence, specific qualification requirements and 
approval procedures for foreign investors? 
Response: 
With regard to the issuance of Government Regulation No. 15/2013 about the 
implementation of Law No. 38/2009, any fore ign companies who hold the foreign equity 
more than 49% are obliged to adjust their foreign equity participation in 2 years. 
Below is the list of joint venture company between foreign and local company in this 
sector: 
1. PT UPS Cardig international as the join t venture company of PT United parcel 
(foreign), FEP: 49% and PT. Cardig Air (local), FEP: 51% 
2. PT TNT Skypak International express as the joint venture company of PT TNT 
(foreign), FEP: 49% and PT. Skypak (local), FEP: 51%  
3. PT Global Distribution Alliance as th e joint venture company of PT Aranex 
(foreign), FEP: 50% and PT Pand usiwi Sentosa (local), FEP: 50% 
In the current practice, foreign company operates in the form of management 
cooperation is DHL with PT. Birotika Semesta as the local company. WT/TPR/M/278/Add.1 
 
- 47 - 
 
  Meanwhile, the other form is licensing/royal ty cooperation, which Federal Express as 
the foreign company collaborates with PT. Repex Perdana International as the local 
company. 
Furthermore, for the details of the requirement and procedures of foreign investments, 
please refer to: www.bkpm.go.id. 
Could Indonesia please inform the rationale of the new law's geographic restrictions on foreign and 
joint venture postal service providers?  
Response: 
Answer will be provided later.  
PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT 
Page 8 (paragraph 2.23) 
"Indonesia is in the process of conducting technical studies needed to inform The Low Carbon 
Development Strategy (Emission Reduction Opportunities and Policies: Manufacturing Sector). The 
Low Carbon study/development options will prove that sound environmental management, reduction of emissions, economic efficiency and growth are compatible goals, important to the 
sustainability of Indonesia's development path." 
Questions: 
Could Indonesia please briefly state the main content of the Low Carbon Development Strategy? 
Response: 
Climate Change National Council had already done some technical studies. One of study 
is Emission Reduction opportunities and polic ies : manufacturing sector which was done 
on 2009. This study was done by DNPI that  cooperated with Ministry of Finance and 
World Bank to find out what kind of bette r financial mechanism to support low carbon 
development and green growth.  
 Actually, Indonesia doesn't has any specif ic policy on "Low Carbon Development 
Strategy" , but we has National Action Pl an for greenhouse gases Emissions Reduction 
that is articulated through Presidential De cree No. 61 year 2011. This Presidential 
Decree has identified sectors that should reduce 26% of greenhouse gas emission from 
Business as usual with our own resources and 41% with international aid until 2020. 
The National Action Plan for greenhouse gases Emissions Reduction also set up the 
equivalent of quantity of CO2 that sh ould be reduced on each sectors.  
Up to now, the National Action Plan for greenhouse gases Emissions Reduction has 
already started to implement on each sect ors. Indonesia has already registered on 
transportation sector under NAMAs (Natio nally Appropriate Miti gation Actions by 
developing country) in UNFCCC. 
Up to now how has the implementation of the Low Carbon Development Strategy progressed in 
Indonesia? 
Response: 
NATIONAL ACTION PLAN. Indonesian emission is  expected to increase from 1.72 to 2.95 
GtCO2e (2000-2020). Proposed National Acti on Plan on GHG Emission Reduction (RAN-
GRK) consist of 70 programs distributed among various sectors . WT/TPR/M/278/Add.1 
 
- 48 - 
 
  Page 8 (paragraph 2.24) 
"Indonesia is also seeking to reform economic an d fiscal policy to meet green economy objective. 
A range of government-led studies is underway in Indonesia that looks at options to reduce 
emissions: 
 provide domestic enabling conditions supported by innovative financing mechanisms as well 
as policy reforms (fiscal/pricing policy, standards, education and training);  
 create public and private partnership and including green investment funding mechanisms; 
 green investment at the core of the stimulus packages include green investment in regular 
government budget investment in regular government budget; and 
 provide global enabling conditions (trade, IPRs, ODA, TT and environmental agreements)."  
Questions: Could Indonesia please introduce in detail its investment and trade measures to promote the 
development of green economy? 
Response  
W e  u s e  n e g a t i v e  l i s t  a s  a  t o o l  t o  m a n a g e  i n v e s t m e n t  s e c t o r  t o  m e e t  e n v i r o n m e n t a l  
friendly business. For certain investment se ctors might be done in certain areas. For 
industry and trade, we create certain standa rd such as Verification System on Wood's 
Legality (SVLK). It is a verification formul ated and agreed by mu lty stakeholders to 
assure that distributed wood s come from legal logging.  
Page 10 (paragraph 3.11) 
"Ministry of Environmental cooperates with Ministry of finance have "the exception of customs duty 
for equipment and materials that is used to prevent pollution" program through Finance Ministerial Decree No. 101/PMK 04/2007. A few equipment that get the exception of import duty, such as: 
aerator, belt press, chemical pump, pH control,  decanter, air blower, biological, and screen."  
Questions: Could Indonesia please provide a list of environmental products that have been granted the 
exemption of import duties? What are Indonesia's specific considerations for such a list? What is 
the relationship of this list with the APEC list of environmental products? 
Response: 
The Finance Ministerial Decree No. 101/PM K 04/2007 regarding "The Exception of 
Customs Duty For Equipment and Materials that is used to Prevent Pollution" is a facility 
as the incentive provided for end users only  (such as industries) that will manage the 
environment. The mechanism requires end users should get recommendation from Ministry of Environment and letter from Ministry of Fi nance. The aim of providing 
recommendation is to make sure that equipm ent or materials will be utilized only for 
environmental purposes. 
The Decree doesn't provide list of environmental products. The reason is some 
equipment may also used for other purpose s (not only environmental purposes).  
There is a significant differences between  The  Finance Ministerial Decree No. 101/PMK 
04/2007 regarding "The Exception of Customs Duty For Equipment and Materials that is 
used to Prevent Pollution" and APEC List of environmental products:  
1) Approaches on Exemptions of Import Duties  
PMK: requires recommendation, no list   
APEC list: providing list  
2)  Beneficiaries  WT/TPR/M/278/Add.1 
 
- 49 - 
 
  PMK: end users only  
APEC list: traders, end users, etc  
3)  Products utilization 
PMK: only used for environmental purposes  
APEC list: may be used for other pu rposes, beside environmental purposes 
 
Page 15 (paragraph 5.3) 
"In addition, to accelerate the Indonesia Economic Development, Indonesia has stipulated the 
Master plan Acceleration and Expansion of In donesia Economic Development (MP3IE) 2011-2025. 
The implementation of MP3EI is expected to fu lly support and complement existing development 
planning documents produced by the government, including Long Term National Development Plan 
(RPJPN) and Medium Term National Development Pl an (RPJMN). The implementation of MP3EI will 
be coordinated by a Committee chaired by the President of Republic of Indonesia."  
Questions: Will Indonesia issue more detailed implementation rules of the MP3IE? If yes, when? 
Response: 
The Master Plan for the Acceleration an d Expansion of Economic Development of 
Indonesia (MP3EI) provides the building blocks  to transform Indonesia into one of the 
10 major economies in the world by 2025.  
What will be the specific content of such detailed implementation rules of the MP3IE? 
Response: 
The development of MP3EI can be accomplishe d if the government and business sector 
embrace a new way of thinking in doing busi ness. The private sector will be given a 
major and important role in economic deve lopment, particularly in investments to 
increase job opportunities. The government will not only be a regulator, it will also be a 
facilitator, and catalyst to support this growth. With regard to regulations, the 
government will amend or remove (debottl enecking) regulations that inhibit the 
implementation of investments. As a faci litator and catalyst, the government will 
provide incentives, both fiscal and non fiscal. 
Implementation of MP3EI will include 8 main programs which consist of 22 (twenty 
two) main economic activities. The implemen tation strategy of MP3EI will integrate 
3 main elements: 
a. Developing the regional economic pote ntial in 6 (six) Indonesia Economic 
Corridors: Sumatra Economic Corridor, Java Economic Corridor, Kalimantan 
Economic Corridor, Sulawesi Economic Co rridor, Bali – Nusa Tenggara Economic 
Corridor, and Papua – Kepulauan Maluku Economic Corridor; 
b. Strengthening national connectiv ity locally and internationally; 
c. Strengthening human resource capacity an d national science & technology to 
support the development of main programs in every economic corridor. 
MP3EI is a long term plan for the econom ic development of Indonesia. A gradual but 
continuous implementation is a key factor to the success of MP3EI. The implementation 
of MP3EI is planned in three phases up to year 2025, as follows: 
‐ Phase 1 (2011–2015) will focus on the implementation of MP3EI and the 
operationalization of the MP3EI implemen tation committee. On a shorter term, 
MP3EI will be focusing on the implementati on of various action plans which should 
be completed by 2014. These action plans w ill ensure that initiative strategies are 
well implemented to accelerate and expa nd the economic development in the 
coming phases. The establishment and operationalization of a MP3EI WT/TPR/M/278/Add.1 
 
- 50 - 
 
  Implementation Committee need to be prio ritized along with the streamlining of 
various regulations and accomplishing va rious investment projects in main 
economic activities by all related stakeholders. 
‐ Phase 2 (2016–2020) will focus on the accele ration of long term infrastructure 
development, enhancement of innovation to improve competitiveness, 
improvement of economic governance in  various fields, and encouragement of 
industry which will create added value. 
‐ Phase 3 (2021–2025) will focus on the enha ncement of national industries to 
compete globally, as well as the implemen tation of high level technologies to 
achieve sustainable development. 
For the more detailed implementation rules of  MP3EI, Indonesia will not issue them in 
the near future.  
There is no specific content of such detailed implementation rules of the MP3EI since 
Indonesia will not issue more detailed implem entation rules of the MP3EI in the near 
future. 
Page 15 (paragraph 5.4) 
"MP3EI the 2025's vision is achieved by focusing on 3 main goals: … (2) Encourage efficiency in 
production and improve marketing efforts to further integrate domestic markets in order to push 
for competitiveness and strengthen the national economy…" 
Questions: 
With the policy objective of "encourage efficiency  in production", has the Indonesian Government 
issued specific implementation measures for various industries, such as urging relevant industries (e.g. cement industry) to upgrade and transform technology and close down backward production 
facilities? 
Response : 
Each corridor will be developed in accordance with its economic advantage. If a corridor 
has an advantage in certain industrial sect or, the said industrial corridor shall be 
developed. Moreover, in general, every corri dor requires infrastr ucture development. 
PART III: OTHER QUESTIONS 
With regard to the issue of foreign-funded en terprises dispatching its employees to work in 
Indonesia, can the Indonesian Government play a role in coordinating with local labour unions and 
facilitating site work of foreig n-funded enterprises' employees 
Response : 
Management of foreign workers in Indonesi a involves 3 (three) insitutions or three 
parties/tripartite which are government, labours and local labors union. All foreign 
workers get protection and same treatment if  they enter to Indonesia legally. The first 
s t e p  t o  h i r e  f o r e i g n  w o r k e r  i s  t h a t  c o m p anies hiring foreign workers shall submit 
Proposal on Hiring Foreign Workers suppo rted by other required documents. 
 WT/TPR/M/278/Add.1 
 
- 51 - 
 
  CHINESE TAIPEI 
PART I: ON REPORT BY THE SECRETARIAT (WT/TPR/S/278) 
1.  ECONOMIC ENVIRONMENT 
2.4 Foreign investment regime 
2.4.2 Negative list 
Page 29 (paragraph 2.30.) 
As set out in the 2007 Investment Law, the national Government has responsibility for cross-
province investment; investment related to non –renewable natural resources possessing high environmental damage risk, etc. Local authorities have responsibility for administering all other 
investment activity. (Table A2.4) 
Question(s): 
We would appreciate knowing whether it is the central or the local government that is in charge of 
the administration of the sectors listed as having foreign equity ceilings in the Negative List? 
Response: 
The investor is given the choice whether the investment application is administered by 
the central or local, but for the high envi ronmental damage risk projects, such an 
assessment of environmental impact evaluati on proposal, must be done by the local 
authorities in coordination with  BKPM and related ministries. 
3.  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures directly affecting imports 3.1.1  Procedures 
3.1.1.1 Registration requirements Page 32 (paragraph 3.5) 
 
A General API (API-U) is granted to importers who import goods for trading purposes. API-U registered importers are permitted to import goods falling within only one of the 21 sections in 
Indonesia's good's classification system. Exceptions are permitted for state-owned enterprises and 
for imports where there is a special relationship between the importing and exporting companies. 
Our understanding is that since most importers in  Indonesia are General Importers (API-U), they 
can only import one of the 21 sections of goods stipulated by the Indonesian Government. If General Importers wish to import goods from another section, they have to apply for another 
permit or obtain an authorization letter from the exporter assigning them as their importer. The 
letter must then be certified by an Indonesia Foreign Mission. 
Question(s): 
Could Indonesia please explain the backgro und to this regulation and its purpose? 
Response: 
Herewith the background and purpose of Mini ster of Trade Regulation on Importer 
Identity Number: 
1. Improve the supervision of importers. 
2. By arranging and monitoring importer, so it can eliminate non-complaint and 
irresponsible importers. 
3. Encourage the development domestic industries. WT/TPR/M/278/Add.1 
 
- 52 - 
 
  4. By supervising importers, especially on im port activity of certain industrial good 
and is expected to be able to encourag e the development of domestic industries. 
5. Increase equity/fairness among importers. 
6. Seek balance treatment that is given by Producer importer and general importer. 
7. Enhance credibility among importer. 
8. Through structuring and supervision bu siness sectors incl uding tightening 
supervision, for General importer to incr ease the importer's credibility and reduce 
imports that have been less than  credible (black importer). 
3.1.1.2 Port of entry restrictions 
Page 32 (paragraph 3.7) 
As the Report indicates, port of entry restrictions apply to: (a) food and beverages, toys, 
electronics, footwear and garments; (b) horticultural products; (c) pearls; (d) ozone depleting 
substances; (e) salt; (f) alcoholic beverages; and (g) hazardous materials.  
We also note elsewhere that Indonesia has limited the importation of fresh fruits and vegetables to 
only 5 entry ports, not including Jakarta's sea port, yet Jakarta is Indonesia's most important 
commercial hub, with a large population and purchasing power.  
Question(s): 
Does the Indonesian Government have plans to increase the capacity of Jakarta's sea port and its 
quarantine personnel with a view to easing the current bottlenecks? 
Response: 
Yes, Indonesia has a specific plan concerni ng infrastructure. It is expressed in the 
National Priority Number 6 of the Nati onal Medium-Term Development Plan; 2010-2014 
that will focus on the acceleration of long term infrastruc ture development, 
enhancement of innovation to improve co mpetitiveness, improvement of economic 
governance in various fields, and encourag ement of industry which will create added 
value. Increase the capacity of Jakarta's sea port is the part of plan concerning 
infrastructure.  
 
3.1.5. Import prohibitions, restrictions and licensing 
3.1.5.3 Import Licensing 
Page 45 (paragraph 3.39) 
 
As stated in the Report, the Authorities indicated that around 2060 tariff lines are subject to import licensing. This represents around one-fifth of Indonesia's tariff lines. The number of products 
subject to import licensing increased significantly over the review period, with new measures being 
introduced on: horticultural products (2012); pearls (2012); animals and animals products (2011).  
We are concerned that the significantly increased number of products subject to import licensing 
will increase the uncertainty, administrative costs and timeframe for foreign exporters of certain 
products to the Indonesia market. 
Question(s): 
Could Indonesia please explain the purpose of this policy?  WT/TPR/M/278/Add.1 
 
- 53 - 
 
  Response: 
First of all, it should be understood th at we use import licenses for goods the 
importation of which is regulated. Thus, usin g import licenses is one tools which we use 
to achieve our objectives of regulating im port of certain goods. One of our main 
objectives is to create a conducive business climate by preventing deceptive practices by 
importers that, in the end could harm the domestic market. 
Does Indonesia intend to strengthen its import licensing system in the future? If so, in which 
category of products is that likely to be? 
Response: 
Answer will be answered later. 
Besides import licensing, are there any other quantitative restrictions on fresh fruits and 
vegetables? If so, through which channels are foreign exporters able to access more information about these restrictions? 
Response: 
Information related to import licensing on fr esh fruits and vegetables can be acquired 
from relevant institutions such as Director ate of import of the Ministry of Trade and 
Directorate General of Horticulture, Ministry of Agriculture.  
3.1.6  Contingency Measures 
3.1.6.1Anti-dumping and countervailing measures 
Pages45-46 (paragraphs 3.41 & 3.46) 
 
As stated in the Report, the Republic of Indonesia enacted new rules governing trade remedy measures through Government Regulation No. 34 of 2011 on 4 July 2011, with changes intended 
to reinforce anti-dumping, subsidy and safeguard in vestigation procedures as well as to bring the 
regulation of trade remedies under one piece of legislation.  
One notable change introduced by the new legisl ation is the introduction of sunset review 
procedures regarding the anti-dumping and countervailing measures in force, which are separately 
regulated in Article 34 to Article 36 and Article 67 to Article 69 of the new legislation.  However, the new legislation is mute on the question of whether interested parties may request a judicial 
review of final determinations of investigations and reviews by the Indonesia Anti-Dumping 
Committee (KADI).  
Furthermore, Article 99(1) of the new legislation stipulates that "Any objection against the 
imposition of Antidumping Measures, Countervailing Measures, and Safeguard Measures can only be addressed through the Dispute Settlement Body of the World Trade Organization". We 
acknowledge that any trade dispute can resort to the WTO dispute settlement mechanism only if 
domestic administrative and judicial remedies have been exhausted without resolution.  However, the new legislation does not appear to mention whether interested parties may challenge the 
imposition of trade remedy measures through Indonesia's domestic courts before presenting their 
objections to the WTO dispute settlement mechanism. 
Question(s):  
Article 13 of the WTO Agreement on Implementati on of Article VI of the GATT 1994 (the Anti-
Dumping Agreement) and Article 23 of the Agreement on Subsidies and Countervailing Measures, 
stipulate that WTO Members are obliged to provid e interested parties with the opportunity of 
requesting and having a judicial review of the final determinations of anti-dumping and 
countervailing investigations and reviews made by the investigation authorities. Could the 
government of Indonesia please clarify whether, how, and according to which provisions of the WT/TPR/M/278/Add.1 
 
- 54 - 
 
  new legislation or other domestic laws the interest ed parties (foreign producers, exporters, etc.) 
may request such judicial review of the KADI's final determinations of anti-dumping and 
countervailing investigations and reviews?  
Response: 
Indonesia currently does not have a specif ic court which deals with antidumping, 
countervailing and safeguard disputes. A ccording to Indonesia legal system, the 
establishment of such court should be through legislation. Indonesia courts, 
temporarily, are not authorized  and are not in the capacity to hold disputes on 
antidumping, countervailing, and safeguards . From our perspectives , Dispute Settlement 
Body is to be pursued if any dissatisfaction regarding KADI's final determinations occurs 
from interested parties. 
We would also appreciate knowing whether, how, and according to which provisions of the new 
legislation or other domestic laws, the interested parties (foreign producers, exporters, etc.) may appeal against the imposition of trade remedy measures through Indonesia's domestic courts 
before taking their objections to anti-dumping and countervailing measures through to the WTO 
Dispute Settlement Body? 
Response: 
There is yet any special court for disputes of  antidumping, subsidy, and safeguard. KADI 
provides wide opportunity fo r every party concerned to respond and to request for 
public and specific hearing. 
Page 46 (paragraph 3.48) Indonesia has been active in notifying the status of anti-dumping activity through semi-annual 
reports, but has not immediately notified all preliminary or final actions taken. Between 2007 and November 2012, 25 new investigations were initiated (Table 3.9). Of these, 13 resulted in the 
imposition of definitive measures; 7 investigations were terminated without the imposition of 
definitive measures; and the remaining 5 are still under investigation. 
Question(s): 
Given the significant increases in the numbers of anti-dumping cases initiated by the Indonesian 
authorities in recent years, we would be interested in knowing whether, in the event that the 
companies concerned do not accept the final determination of the Indonesia Anti-Dumping 
Committee (KADI), there is any administrative remedy they can seek? 
Response: 
The provision regarding the 25% domestic production requirement is stated in 
Article 6.1 (antidumping) and Article 41.1 (c ountervailing) of Government Regulation 
No. 34/2011. While the requirement regard ing the 50% collective output of total 
production of like product is stated in Article 4.3 (antidumping) and Article 39.3 
(Countervailing) of Government Regulati on No. 34/2011. Thus, the provisions in 
Government Regulation No.34/2011 comply with ADA and SCM. 
3.1.6.2 Safeguard Measures 
Page 48 (Para 3.51) 
 
The main changes introduced by Government Regulation No. 34 with respect to safeguards rules are: (a) the removal of a 200-day timeframe for inve stigations; (b) the introduction of a "national 
interest consideration" whereby the Ministry of  Trade reviews KPPI recommendations to ensure WT/TPR/M/278/Add.1 
 
- 55 - 
 
  that they are in the national interest; and (c) industry may now submit a structural adjustment 
plan to KPPI as part of the investigation process. 
Question(s): 
Can Indonesia please elaborate further whether a new timeframe is available after the removal of 
the 200-day timeframe for safeguard investigations?  
Response: 
Regarding timeframe for safeguard investigat ions, the Government Regulation No. 34 
does not regulate a new timeframe, as it is not required by the WTO Agreement on 
Safeguards. 
What aspects will the Ministry of Trade take into account in its determination of whether KPPI 
recommendations are in the national interest? 
Response: 
The process of considering the national intere st shall be done by the Minister of Trade 
after receiving recommendation to impose Safeguard Measure from KPPI. The Minister 
of Trade shall discuss the recommendation which involves ministers and/or heads of 
non-ministerial government institutions th at are related to the policy of Safeguard 
Measure. 
Page 48 (paragraph 3.52) 
Since 1995, Indonesia has initiated 18 safeguard investigations (10 were initiated over the review 
period), and has imposed 11 safeguard actions (9 were over the review period). The substantial 
increase in Indonesia's use of safeguard measures has made it one of the most frequent initiators of safeguard investigations and resulting actions since 2010. 
Question(s): 
When notifying its safeguard investigations to Member countries, does the Indonesian 
investigating authority also provides the petitioners' original information at the same time to 
Member countries whose products are over the 3% threshold of total products imported? 
Response: 
The Indonesian investigating authority provid es the petitioners' petition when it is 
requested by the Member countries. 
3.2 Measures directly affecting exports 
3.2.2  Export prohibitions, restrictions and licensing  
3.2.2.3 Export taxes 
Page 58-59 (Para 3.82) 
 
With respect to export taxes on mineral ore products, an external source has noted that raising the tax to 50% in 2013 is being discussed, in orde r to discourage the front-loading of production 
before the export ban on unprocessed ores enters into effect in 2014. 
Question(s): 
Could Indonesia please provide us with information regarding the kinds of raw mineral ores that 
will be subject to export tax, and the rates at which they will be taxed?  
Response: 
At this time, GOI has no plan to decide whethe r to prohibit the exportation of all or only 
certain  mineral ores.  WT/TPR/M/278/Add.1 
 
- 56 - 
 
  And, does the Indonesian Government plan to increase the export tax rate for raw mineral ores 
this year? 
Response: 
Answer will be answered later. 3.3 Measures affecting production and trade 
3.3.1 Government procurement  
Pages 61& 63 (paragraphs. 3.99, 3.108 & 3.110)  
Indonesia became an observer to the WTO Government Procurement Agreement (GPA) in 2012. At 
the time of Indonesia's previous Review, a numbe r of Members asked when Indonesia planned to 
adhere to the GPA. The authorities responded th at Government intended to study GPA accession 
further. 
The main steps in the public procurement process are: 
• announcement of pre-qualification process (if applicable, 15 working days); 
• announcement of request for proposal (at least 7 days before proposals are due); 
• tender clarification session to answer bidders' questions (at earliest 3 working days after 
invitation to tender); 
• submission of proposals by bidders (at least 8 working days); 
• opening and evaluation of technical proposals (no stipulated timeframe); • opening and evaluation of financial proposals (no stipulated timeframe); 
• announcement of winner (after financial evaluation is finished); 
• period for objection (5 working days after announcement of winner and 5 more working days if 
there is an appeal); and 
• award of contract and publication of the awardee's name, and minutes from the evaluation 
process (6 working days after announcement of winner). 
As stipulated in PR54 (Article 104), foreign companies may only bid in cooperation with a national 
company (unless no national company has the abilit y to provide the goods and services requested) 
and only on bids that exceed a certain threshold:  Rp 100 billion for construction services, Rp 20 
billion for goods and other services and Rp 10 billion for consulting services. Information was not 
available on the number and value of contracts aw arded to foreign companies. PR54 (Article 97) 
mandates the use of domestic products in government procurement if there are providers offering 
goods or services with a local content exceeding 40%. 
Question(s): 
Could Indonesia agree to accede to the WTO/GPA? 
Response: 
O u r  i n t e n t i o n s  t o  b e c o m e  o b s e r v e r  o f  WTO GPA are to learn and understand the 
international best practices on governme nt procurement among member of GPA. 
Indonesia has to measure readiness of our sectors/industries. For the time being, 
Indonesia has no intention to access the GPA.   WT/TPR/M/278/Add.1 
 
- 57 - 
 
  Regarding the public procurement process, could Indonesia please explain the difference in 
meaning, if any, between "announcement" and "pub lication"? And, please also explain the reason 
for the difference between the period of time given for the announcement of a request for a 
proposal (at least 7 days before proposals are due) and that given to bidders for the submission of 
proposals (at least 8 working days)? 
Response: 
The meaning of announcement and publication is the same. The announcement and 
submisson of proposal is two different things . The announcement with 7 working days is 
for spreading the information to the public wh ereas submission of proposal with at least 
8 working days is dedicated for simple procur ement, if the projects are complex, it will 
have longer time. 
Could Indonesia consider reducing and eliminating discriminatory measures between local and 
foreign suppliers, such as those covered in PR54?  
Response: 
Discriminatory measures is the affirmative policy with pro poor, pro job and pro growth. 
The aim is for developing national capability  (domestic suppliers). For certain threshold 
stipulated in PR 54, Indonesian government  procurement market is opened for foreign 
suppliers. 
4. TRADE POLICIES BY SECTOR 
4.3 Infrastructure 
Page 74 (Para 4.7)  
As indicated in the Report, Indonesia confronts considerable difficulties in establishing the 
extensive infrastructure of transport, communications and public utilities that is essential for its economic and social development. Years of under-i nvestment have left Indonesia's infrastructure 
network crumbling. Roads are congested, ports are bottlenecked, and many Indonesians do not 
have access to either potable water or reliable electricity. 
Question(s): 
Given that insufficient infrastructure has long been a major obstacle to foreign investment in 
Indonesia and that Greater Jakarta experiences steadily rising wages, frequent flooding, constant 
union strikes and serious traffic congestion, will the Indonesian government consider adopting any measures or strategies to overcome the current situation?  
Response: 
As the PPP infrastructure policy was launche d several years ago, the government of 
Indonesia including the government of Jakarta city is now working hard to accomplish 
the infrastructure targets set out. Rule s and regulations which still impede the 
implementation are being reviewed by vari ous ministries. The Government believes, 
one-by-one and step by step progress will be reaching out. The focus of the government 
is set in solicited project schemes as ma ndated by the MP3EI policy measures, while 
unsolicited projects are still welcome. In  addition, the incentives provided and 
government support will add the attractiveness of the projects. 
 Many of Indonesia's provincial governments increased the minimum wage significantly last year, 
which will have a negative effect on FDI inflows into the country. Does the government plan to 
adopt any measures to guide and assist foreign investors? WT/TPR/M/278/Add.1 
 
- 58 - 
 
  Response: 
The negative effect of increasing minimum pr ovincial wage is surely not expected. For 
some sector, it is undervalued, but for some se ctors, probably it may be difficult. Case 
by case basis is the Government concern to reduce the exposure of increasing standard 
wages. However, the government welcomes to  openly discuss and facilitate the solution 
with the companies concerned. 
 
5.  APPENDIX TABLES  
Table A3. 2 Products subject to import licensing requirements, 2012 
(Page 118) 
 
As stated in the column headed Horticulture (fresh and processed), "horticultural product permits 
are only granted if the Ministry of Agriculture determines that domestic production is insufficient". 
Question(s): 
What are the standards used by Indonesia to dete rmine whether domestic production is sufficient 
or insufficient? 
Response: 
Answer will be answered later. 
What standards are used to determine the quota of imported horticultural products? 
Response: 
Answer will be answered later. 
Does Indonesia publish any information on the regulations relating to these standards, which other 
WTO Members may access and refer to? 
Response: 
Answer will be answered later. Does Indonesia have any plan to simplify the import procedures for horticultural products with a 
view to alleviating the document-handling bu rden on the exporters of WTO Member(s)? 
Response: 
Answer will be answered later. 
PART II: INDONESIA GOVERNMENT REPORT (WT/TPR/G/278) 
2 ECONOMIC AND TRADE ENVIRONMENT  
2.4 Effort for green growth  
Page 8 (paragraph 2.24)   
Indonesia is also seeking to reform economic and fiscal policy to meet green economy objective. A 
range of government-led studies is underway in Indonesia that looks at options to reduce 
emissions: 
 provide domestic enabling conditions supported by innovative financing mechanisms as well as 
policy reforms (fiscal/pricing policy, standards, education and training); 
 create public and private partnership and including green investment funding mechanisms; WT/TPR/M/278/Add.1 
 
- 59 - 
 
   green investment at the core of the stimulus packages include green investment in regular 
government budget; and 
 provide global enabling conditions (trade, IPRs, ODA, TT and environmental agreements). 
To our knowledge, Indonesia has huge potential for the development of geothermal energy, 
wind energy, solar energy, and biomass energy. The government also provides incentives for 
the development of renewable energy, such as tax holidays and obligations to purchase the 
electricity generated from renewable energy power plants. 
Question(s): 
Are there any specific conditions or restrictions for foreign enterprises wishing to invest in the 
renewable energy industry?  
Response: 
There is no restriction for foreign enterprises to invest in the renewable energy industry, 
indeed referring to Minister of Finance Re gulation No. 130/PMK.011/2011, for foreign or 
domestic enterprises that invest in renewabl e energy as pioneer industries e.g. Basic 
metal manufacture, petroleum refinery, or ganic basic chemical, renewable resource 
industry and several others will acquire fisc al incentives. This incentive regulation 
stipulates on the basis of MFN and National Treatment principles. Me anwhile basic fiscal 
incentives for the importation of capital g oods and raw materials are granted for 2 years 
production with the extens ion of another 2 years. 
Do foreign enterprises investing in the renewable energy industry enjoy the same preferential 
treatment or incentives as provided by the government to domestic companies? 
Response: 
Yes they do. Actually, Indonesia incentive regu lation stipulates on the basis of MFN and 
National Treatment principles. 
COLOMBIA  
Informe de la Secretaría WT/TPR/S/278  
Resumen 
El párrafo 10 del Informe de la Secretaría señala que… "Aparte de los aranceles, Indonesia aplica 
un IVA uniforme del 10%, impuestos de lujo que oscilan entre el 10% y el 75% e impuestos 
especiales de consumo sobre el alcohol y los productos de tabaco; en el caso de las bebidas 
alcohólicas con un contenido de alcohol del 5% o superior, los impuestos especiales sobre las 
importaciones son superiores a los que gravan la producción nacional." 
¿Podría el gobierno de Indonesia explicar la razón por la cual en el caso de las bebidas alcohólicas 
importadas con un contenido de alcohol superior al 5% los impuestos especiales son superiores a 
los aplicados a los licores producidos localmente? 
Responses: 
In previous regulation (2006), in addition to excise tax, imported alcoholic beverages 
are also charged by import duty at a specif ic rate ranging from 40% to 150% depending 
on the alcohol content and by luxury tax with  rate from 40% to 75%. However for local 
product, they are only subject to excise tax with the lower rate and the luxury tax with 
the same tariff with imported ones. This situ ation created high gap on total tax burden 
between imported and domestic products. In the 2010 (MOF Decree no 62/2010) Government of Indonesia had policies on 
beverages containing ethyl alcohol: WT/TPR/M/278/Add.1 
 
- 60 - 
 
  a. Applying excise tax tariff in specific rate  for simplicity and certainty in collection. 
b. Transfering/shifting luxury ta x revenue in previous regulation (2006) to excise tax 
by  raising excise tax ra te on alcoholic beverages 
c. Minimizing the tax rate gap between dome stic alcoholic beverages and  import 
gradually 
d. Studying a comprehensive excise tax stru cture by considering domestic market 
 
¿Podría considerarse que el impuesto a las bebidas alcohólicas importadas es discriminatorio y por tanto no se estaría cumpliendo con el principio de Trato Nacional? 
Responses:  
The regulation of alcoholic beverages excise ta x is not discriminatory because in case of 
product specification there are several di fferences between imported and domestic 
alcoholic beverages on quality, raw material , production processing, price and market 
segmentation (imported product are more premium class than local product). By 
imposing excise tax and import duty, impo rted product will gain several advantages 
which are : 
a. They will get higher quality for similar category (different  domestic market 
segmentation)  
b. Specific tariff rate system will make th e calculation of excise tax and import 
duties simpler and faster, and also will avoid customs valuation disputes. 
c. It gives more guarantees for excellent level of hospitality services by the 
Indonesia tourism industry through maintaining the avaibilityof imported alcoholic beverages. 
 
El párrafo 16 del Informe de la Secretaría indica  que... "Indonesia mantiene en vigor licencias, 
prohibiciones y restricciones de exportación con el fin de garantizar la protección de los recursos 
naturales y las especies amenazadas, asegurar el abastecimiento adecuado de productos 
esenciales en el mercado interno, impulsar los sectores de elaboración avanzada de mayor valor añadido y mejorar la calidad de los productos de exportación. Además, a partir de 2014, el 
Gobierno prohibirá a las empresas mineras exportar productos minerales (actualmente sujetos a 
licencias e impuestos de exportación), y les exigirá realizar las actividades de refinado en el país. 
Durante el período objeto de examen, se han introducido nuevos impuestos de exportación sobre 
los productos de cuero y madera, el aceite de palma, el cacao en crudo y los productos minerales. El principal objetivo de esas medidas es fomentar la elaboración en Indonesia que aporte valor 
añadido. Otras consideraciones secundarias son garantizar el abastecimiento interno, proteger el 
medio ambiente y aumentar los ingresos." 
¿Podría el gobierno de Indonesia explicar si la  decisión de introducir nuevos impuestos a la 
exportación de productos como cuero, aceite de palma, cacao crudo, entre otros, se realizó con 
base en algún estudio previo? 
Response: 
Basically, the imposition of export tax on certain commoditi es aims to maintain domestic 
supply sustainability; preserving natural resour ces; anticipating the drastic increase in 
the price of certain commodities in the intern ational market, or stabilize prices of certain 
commodities on the domestic mark et (Law No. 10/1995 Law No. 17/2006). 
There are three fundamental reasons why an export commodity should be taxed to 
control exports. The first reason is becaus e commodities are urgently needed in the 
country.  An example is the commodity Crude Palm Oil  ( C P O )  t h a t  i s  u s e d  a s  r a w  
material for cooking oil. When the CPO pr ice in the international market increased 
sharply then there will be a te ndency to export CPO that would endanger the national 
cooking oil industry due to lack of supply of  raw materials, which in turn would harm 
consumers in the country because the stock of  cooking oil will be reduced dramatically, WT/TPR/M/278/Add.1 
 
- 61 - 
 
  so the price of cooking oil will soar. Conditions such as these are to be anticipated by the 
government to ensure the availability of raw materials in the domestic CPO. 
The second reason a commodity subject to ex port tax is the development of domestic 
industries. For example, cocoa and mineral ores. The absence of barriers to exports 
caused commodities to be exported as a raw material, and this causes the processing of 
cocoa and mineral smelting industry in the country is not developing. This means that 
there will be no employment, no  income taxes, and ultimately  not be realized multiplier 
effect on the national economy. 
The third reason is the environmental issue refer to natural resources sustainability. 
Mining activity is related to natural resources exploitation.  Uncontrolled exploitation of 
mineral resources will lead to the depletion of non-renewable reso urces. According to 
statistics, exports of mineral ores Indonesi a increased significantly so the government 
imposed an export tax on mineral ore exports to control these activities. 
The government has imposed export taxes on  c e r t a i n  c o m m o d i t i e s  i n  a n  e f f o r t  t o  
encourage the development of domestic do wnstream industries and strengthen the 
national economy. 
Tax policy is based on the study of the govern ment on input from relevant stakeholders 
such as farmers' associations, industry a ssociations and exporters. Study results show 
the potential that maybe achieved for higher  profits when the product is sold in more 
processing stages. 
S i  s e  h i z o  e l  m e n c i o n a d o  e s t u d i o ,  ¿ e l  m i s m o  t u v o  en cuenta el efecto de las medidas sobre la 
producción y exportación de otros países? 
Response: 
The main interest of the study is how to improve the welfare of farmers, as well as 
maintaining the availability of raw materi als so that the creation of added value 
occurred in Indonesia. 
 
En caso de haberse elaborado el estudio en me nción, ¿Cómo puede obtenerse acceso al mismo? 
Response:  
The study results is strictly confidential and only used for policy decision making, as it 
contains data related businesses in the country. 
 
¿Cómo o dónde puede consultarse u obtenerse el te xto de las normas en "inglés" mediante las 
cuales se adoptaron los nuevos impuestos a la exportación de los productos mencionados en este 
párrafo? 
Response: 
Interested parties may go to www.beacukai.go .id or send information request by e mail 
to humaskpdjbc@customs.go.id    
3  POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 
3.1  Medidas que afectan directamente a las importaciones 
3.1.4  Otras cargas que af ectan a las importaciones 
3.1.4.3  Impuesto especial de consumo  
El párrafo 3.34 del Informe de la Secretaría señala que "En 2012 entraron en vigor nuevos tipos 
impositivos para los productos del tabaco, que se aplican por barritas o gramos de tabaco.  Las 
autoridades han explicado que los impuestos especiales de consumo se aplican por igual a los 
productos del tabaco nacional e importado con fi nes comerciales. Sin embargo, algunos productos WT/TPR/M/278/Add.1 
 
- 62 - 
 
  del tabaco de baja calidad, producidos con fines comerciales pero no importados, están sujetos a 
tipos menores del impuesto especial de consumo" 
¿Podría el Gobierno de Indonesia suministrar las tasas impositivas por consumo aplicadas a los 
productos de tabaco de baja calidad importado y nacional en el último año? 
Response: 
Essentially, the calculation of excise tax fo r imported tobacco commodities are not based 
on quality, but tax rates based solely on the ty pe of product with one rate applicable for 
each type. The differential tax rates between domestic and imported products only in 
low quality and low price commodities, considering that segment only filled by a home 
(micro) industry.  
3.1.5.3 Licencias de importación En los párrafos 3.37 y 3.39 del Informe del Inform e de la Secretaría indica que... "Se aplican 
prescripciones en materia de licencias de importación por varios motivos, por ejemplo para 
preservar la salud, la seguridad o el medio ambiente, cumplir compromisos asumidos en el marco de acuerdos internacionales, prevenir el contrabando o aplicar medidas de política encaminadas a 
la protección de la producción nacional. En este último caso, entre los productos afectados figuran 
algunas mercancías sujetas a restricciones cuantitativas (arroz, azúcar, animales y productos de 
origen animal, sal), así como algunos textiles y productos textiles; gas licuado de petróleo (GLP) y 
contenedores de GLP; bienes de capital usados; petróleo y gas; clavo; tripolifosfato de sodio; productos hortícolas; y fertilizantes (cuadro A3.2). La última notificación realizada por Indonesia a 
la OMC en relación con sus procedimientos de licencias de importación abarca el año 2007" 
"3.39.  Las autoridades han señalado que unas 2.060 líneas arancelarias están sujetas a licencias 
de importación, lo que representa aproximadamente una quinta parte del Arancel de Indonesia. El 
número de productos sujetos a licencias de importación aumentó significativamente durante el 
período examinado, y se introdujeron nuevas prescripciones en relación con los productos siguientes: productos hortícolas (2012); perlas (2012); animales y productos de origen animal 
(2011); bienes de capital usados (2011); tripolifosfato de sodio (2011); abonos (2011); petróleo y 
gas (2009); desechos no peligrosos y no tóxicos (2009); GLP y contendedores de GLP (2008); algunos alimentos, bebidas, medicamentos, cosm éticos, vestidos y calzado (2008); productos 
electrónicos y juguetes infantiles (2008); y máquinas multifuncionales, fotocopiadoras e 
impresoras en color (2007)." 
Dado que la última notificación sobre licencias de importación a la OMC se realizó en 2007, y 
desde esa fecha se han establecido medidas a las importaciones agrícolas mediante este instrumento, mientras el Gobierno de Indonesia actualiza estas notificaciones, agradecemos se nos 
suministre obtener información sobre el objetivo, principales características y legislación de las 
licencias aplicadas al sector agropecuario. 
Response:  
Answer will be provided later  3.1.8 Medidas sanitari as y fitosanitarias 
El párrafo 3.69 del Informe de la Secretaría indica que… "Las principales leyes relativas a la 
inocuidad de los alimentos, la sanidad animal y la preservación de los vegetales son: Ley 
Nº 16/1992 de Cuarentena de Animales, Peces y Plantas; Ley Nº 7/1996 de Productos Alimenticios; Ley Nº 31/2004 de Pesca; Ley Nº 18/2009 de Ganadería y Sanidad Animal; y Ley 
Nº 13/2010 de Horticultura. Se ha redactado una nueva ley relativa a los alimentos que, según se 
espera, será sancionada por el Presidente a finales de 2012. No se ha dispuesto de información 
sobre los principales cambios que se introducirían en virtud de esa ley." 
Nos gustaría saber si dicha Ley fue aprobada. Así mismo, si es posible obtener  una copia o 
información del sitio web donde se puede conseguir. WT/TPR/M/278/Add.1 
 
- 63 - 
 
  Responses: 
 The Law No. 31/2004 on Fisheries is no longer effective and has been amended by 
Law No. 45/2009 concerning the amendement of Law No. 31 of 2004 on Fisheries. 
This Law can be downloaded from www.kkp.go.id. 
 The Law No. 7/1996 is no longer effective and has been replace by Law No. 18/2012 
concerning Food. This new Law was passed on November 16th, 2012 and came into 
force when enacted on the 17th November, 2012. 
 The Law No. 18/2012 can be downloaded from: 
http:www.setneg.go.id/index.php?optio n=com_perundangan&id=3782&task=detail
@catid=1&Itemid=42&tahun=2012 
http://bkp.deptan.go.id/file/uupan gan/UU%20Nomor%2018%20Tahun%202012.p
df 
 The Law No. 31/2004 on Fisheries is no longer effective and has been amended by 
Law No. 45/2009 concerning the amandement of Law No. 31 of 2004 on Fisheries. 
This Law can be downloaded from www.kkp.go.id 
 The Law No. 7/1996 is no longer effective and has been replace by Law No. 18/2012 
concerning Food. This new Law was passed on November 16th, 2012 and came into 
force when enacted on the 17th November, 2012. 
 The Law No. 18/2012 can be downloaded from: 
http:www.setneg.go.id/index.php?opt ion=com_perundangan&id=3782&task=det
ail@catid=1&Itemid=42&tahun=2012 
http://bkp.deptan.go.id/file/uup angan/UU%20Nomor%2018%20Tahun%20201
2.pdf 
 
3.1.7.3  Vigilancia del mercado El párrafo 3.71 del Informe de la Secretaría señala que... "Durante el período objeto de examen, 
se han expuesto preocupaciones específicas en el Comité MSF acerca de: las restricciones a la 
importación de productos de porcino debidas a la gripe por A/H1N1 (planteada por México y respaldada por Australia, el Brasil, el Canadá, los Estados Unidos y la República Dominicana); las 
nuevas condiciones para la importación de carne (planteada por la Unión Europea); las 
restricciones a la importación de carne de aves de corral (planteada por el Brasil); las restricciones 
a la importación de carne de vacuno y el reconocimiento del principio de regionalización (planteada 
por el Brasil); y el cierre del puerto de Indonesia (planteada por los Estados Unidos y respaldada por Australia, el Canadá, Chile, el Japón, Nueva Zelandia, la República de Corea, Sudáfrica y la 
UE)" 
¿Qué análisis ha realizado el gobierno de Indonesia a las preocupaciones  expresadas por otros 
Miembros de la OMC en torno a  cada una las medidas citadas? Se han introducido modificaciones 
a los proyectos notificados para tomar en cuenta las preocupaciones expresadas por los miembros 
en el Comité MSF? 
Response: 
Indonesia does not restrict the importation of carcasses and meat. The procedures for 
the importation of carcass and meat descri bed in Regulation of The Minister of 
Agriculture No. 50/2011 
4  POLÍTICAS COMERCIALES, POR SECTORES 
4.4  Agricultura, pesca y silvicultura 
4.4.3  Instrumentos de política comercial 
 El párrafo 4.18 del Informe de la Secretaría indica que "En 2007, el Gobierno sustituyó el régimen 
de impuestos uniformes a la exportación de aceite de palma en bruto por un régimen de 
impuestos variables con arreglo al cual el impuesto de exportación aumenta cuando sube el precio internacional del aceite de palma en bruto. Para fomentar la elaboración nacional, el aceite de WT/TPR/M/278/Add.1 
 
- 64 - 
 
  palma en bruto está gravado con un tipo más elevado que sus derivados (sección 3.2.2.3). No 
obstante, en 2011 el Gobierno redujo los aranceles de exportación (del 25% al 22,5%). Desde 
abril de 2010, Indonesia aplica aranceles de exportación (del 0% al 15%) al cacao en bruto." 
Nos gustaría conocer  la metodología de cálculo de los rangos impositivos  que toman como  base 
los precios internacionales que se aplican al aceite de palma y cuáles son los rangos impositivos que se están aplicando. 
Response: 
Export duties range from 0-40%, largely de pending on the reference price upon which 
they are calculated (generally, the higher the reference price, the higher the export 
duty). Reference prices used to determine the export price are based on the average 
rates in Kuala Lumpur, Rotterdam and Jakarta.   
EUROPEAN UNION 
WT/TPR/S/278 – WTO Secretariat's Report 
1. ECONOMIC ENVIRONMENT 
1.2. Recent economic developments 
1.2.1 Trends in growth 
Page 14, paragraph 1.7  
Inflation risks becoming a threat to Indonesia's economic development in 2013. Arguably, inflation 
is partly caused by higher labour costs (minimum wage increases of over 40% demanded in Jakarta area for instance) as well as by much higher  food prices since some of the principles of the 
18/2012 Food Law are being put in practice. 
The EU is aware of certain policies that are developed regarding food (but not only) and according 
to which, when Indonesia has the potential to be  self-sufficient according to authorities, then 
imports are to be prohibited (i.e. new food law) 
Question:  Can Indonesia explain the rationale for such policy in light in particular of its commitments in the 
WTO and of the likely impact of such policy on inflation as well as on access to, for instance, fruit 
and vegetables?  
Response: 
The government of Indonesia fully aware that if the prices, especially food prices are 
cheap or too low, Indonesian fa rmers will be injured leading to that they do not want to 
run the business. Even when the prices went down during harvesting time, they may bur 
their harvested products and they do not wa nt to run their business and urban to big 
cities and it is very dangerous. On the ot her hand, if food prices are expensive, end 
consumers will suffer. The best thing is that  prices are in the equilibrium. Because of 
that, what Indonesia does is only import  management. We regulate import during 
harvesting time, and the rest is import management.  
1.2.2. Macroeconomic policy framework 
Page 16, paragraph 1.13  
According to the authorities, export taxes on pr imary commodities can provide an incentive for the 
development of domestic manufacturing or processi ng industries with higher value-added exports. 
The secretariat report notes that export taxes make up to 50% of taxes on trade. 
Question:  What measures do the government take to ensure that all the different technical aspects of its 
policy of "climbing the value added ladder" are consistent with its commitments in the WTO? WT/TPR/M/278/Add.1 
 
- 65 - 
 
  Response: 
The export tax or import duty policy is a temporary measure. We implement the said 
policy because we want to assure that ther e is certainty on domestic supply for those 
products. Tax policy is must better than export ban.  
Question: Are there alternative policies to export taxes that the government could consider which would 
contribute to reaching the objectives that the export taxes are supposed to achieve? (for instance 
policies that would  provide better infrastructure or promote foreign investment into Indonesia)? 
Response: 
Alternatives policies other than export taxes or  export duties are open to be disecussed. 
Our business players are free to give their inputs.  
The EU notes that many companies have hesitations with regard to putting in place smelter or 
other processing plants in Indonesia as the investment framework is felt to be too restrictive and is 
too costly (such as the potential processing requirements for ex). 
Question:  
Are there other policies that the government is considering or could consider to attract investment 
that would add value/ production capacity in In donesia (for example but not exclusively in the 
mining sector)?  
Response: 
There are other policies could consider to attract investment that would add 
value/production capacity in indonesia, which are  
a. Tax holiday policy stipulated on MOF decree no 130/2011 
Exemption of corporate tax for maximal 10 year or minimal 5 year, and then 50% 
reduction of corporate tax for 2 year 
b. Tax allowance policy stipulated on Government regulation no 52/2011 
Reduction of nett income before  tax (by 30% of direct investment in 6 year(5% for each 
year)), accelerated depreciation and amorti zation, 10% income tax rate for dividend, 
and compensation for losses for 5 to 10 year. 
Page 16, paragraph 1.13 
The potential link between FDI and the dr aft industry law, the draft trade law 
Subsequent to a sharp decline, foreign direct investment (FDI) is rising steadily since 2010. 
According to the report the biggest investors are Singapore, the US and Japan. Actually the EU 
would like to clarify that it constituted the second highest FDI supplier to Indonesia in 2011 (US$ 2.2 billion), increasing further to US$2.3 billion in 2012. 
Question: 
Does Indonesia plan to attract more SME inve stors as these constitute in many countries 
(including in the EU) a large if not the major source of job creation? If so, how would such 
objective relate to the Draft industry law, which prohibits foreign ownership of small companies? -
If so, how would the objective relate to the draft trade law in case the draft trade law would restrict certain imports that are necessary inputs for the FDI?- Finally, could the Draft Industry law 
and the draft trade law constitute obstacle s to the achievement of the MP3EI Plan? 
Response: 
The draft of Industry Law will regulate ge neral principles such as infrastructure, 
information system on industry, natural re source, industrial zone, green industry, 
tecnology. Foreign ownership of small companie s is regulated in Negative List which is 
reviewed periodically under th e scheme of Investment Law. WT/TPR/M/278/Add.1 
 
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  The EU is aware that there are proposals to modi fy the current FDI regime and to make it more 
restrictive.  
Question:  
Could Indonesia elaborate on the additional restrictions included in the first draft of the new Law 
on Industry? Does Indonesia consider imposing new excise duties on manufactured products not produced in Indonesia to attract more Foreign Direct Investment? Does it consider, given today's 
global supply chains, this to be an effective way to fulfil its economic objectives and a model for 
other countries to pursue as well?   
Response: 
Excise duties are not regulated under Law of  Industry because it is the system of 
customs and excise laws. The rate of custom s and excise duties are regulated under the 
decree of Minister of Finance.  Prior to the promulgation of the decree there are a series 
of discussion among line ministries.  
1.6 Outlook 
Page 19, paragraph 1.23 
"A number of policy announcements made towa rds the end of the review period, as noted 
elsewhere in this report, have raised some concerns on the current direction of trade and 
investment policy making which, could adversely affect the confidence of investors and trading 
partners in Indonesia's economic outlook. 
Question:   
What are Indonesia's intentions regarding the evolution of the legislative and regulatory 
framework for trade?   
Response: 
Trade is one of the tools to el evate society's welfare. Import  and export is two different 
sides of one coin requiring equilibrium.Th at is why that we manage the trade and 
classify our regulation into 3 categori es which are regulated impor and export, 
unregulated import and export and import/e xport ban. The criteria were based on 
safety, security, moral hazard, health and environment. 
2. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.1. Administration of trade and investment policy 
Page 20, paragraph 2.1 
 
The Report provides an outline on the general ru le-making procedure. It states, "the Government 
is legally required to offer the public the opportunity to give input into the rule-making process 
orally or in writing." Currently, the rather informal ways of that Chamber of Commerce Kadin and 
Employers' Association APINDO includes consultation usually only regarding their members instead of inviting the community ((foreign) business) in a wider context. 
Question:  
Does Indonesia foresee a more structural way of holding wider consultations on regulations that 
affect its trade and investment climate?  
Response: 
The main role of government is a fasilita tor and actors implementing the business are 
Indonesian business players. Consultations with  business players are a must both in oral 
and in written. Consultations in a wider cont ext is possible to create more tranparency.  WT/TPR/M/278/Add.1 
 
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  Page 20, Table 2.1 and paragraph 3.1.25 page 67 
The Coordinating Ministry of Economic Affairs – MENKO – is described here as responsible for 
ensuring coherence of economic policy (including trade policy). It is thus in charge of coordinating 
the Ministry of Trade and Industry. Yet, regulations stemming from those departments tend to 
contradict each other at times (for instance draft Trade and Industry Laws giving each responsibility over trade remedies). In addition, the Negative Investment List of 2010 (36/2010) 
was soon after its release being rendered less valid by a Law on Horticulture restricting foreign 
ownership to 30% - substantially below the DNI levels of 95%.  
Question:  
What steps does Indonesia intend to take in order to ensure that regulations passed are consistent 
with overall economic policies and in particular competition policy (paragraph 3.125 refers to insufficient consultation of the competition authority in the law making process)?  
Response: 
We still have problems in formulating regula tions that must be in line each other. 
Coordinating in formulating policies shall be improved and the GoI is open to get inputs.  
Will MENKO aim to bring together the draft trade and industry laws into one coordinated and 
consistent legislation? Would Indonesia be open to receive feedback on those laws to help this 
process?   
Response: 
Yes, Coordinating Ministry ha s been envolved in formulatin g the policies. Feedback from 
stakeholders is open, especially when the dr aft is still under the process of formulation 
article by article.  
2.2. Trade policy objectives 
Page 21, paragraphs 2.5  
 Indonesia's Master Plan for Acceleration and Expansion of Indonesia Economic Development 
(MP3EI) envisages the majority of infrastructure in vestments to be financed through 'Public Private 
Partnerships', yet it seems so far not many projects have started. The presidential regulation on Public Procurement 54/2010 and related regulati ons mandate a 40% local content requirement. 
Question:  
How does Indonesia envisage attracting more foreign companies to the Public Private Partnership? 
How does Indonesia foresee the achievement of its MP3EI plan taking due account of the 
constraint the government imposes on operators with the 40% local requirement? Is Indonesia considering a revision of its procurement regulation to allow for more foreign participation in these 
projects foreseen under the MP 3 EI Plan? 
Response: 
Our regulation on foreign partnership is on the framework of Negative List. More foreign 
participation is more open if Negative List which is regulated in Presidential decree is 
reviewed periodically (usually ev ery single two or three years) 
2.3. Trade agreements and arrangements 
2.3.1.WTO participation 
Page 22, paragraph 2.8 and page 45 para 3.37  
The Report points out that Indonesia did not keep up with its notification obligation particularly 
with regard to import licensing.  WT/TPR/M/278/Add.1 
 
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  Question:  
Can Indonesia provide notifications on SCM and changes to existing laws, regulations or 
administrative guidelines? When is Indonesia going to notify the WTO the measures it has taken 
regarding import procedures? 
Response: 
We notified our import licensing but it was done after the decrees was signed and even 
we sometimes notified in certain committee on ly. We will do it better in the future. 
The EU would like to share the following: market participants do report that import licenses are 
difficult or impossible to obtain. Companies established under Indonesian law are forced to set up 
additional companies or fulfil rather stringent requirements to be allowed to import different kinds 
of goods necessary for the local production, e.g. technical equipment or pharmaceuticals. Recently many cases were reported that goods were kept under custody at  Tanjunk Priok Harbour, despite 
pre-shipment controls abroad. These requirements create additional barriers to entry to economic 
operators not yet established in Indonesia; this is contrary to the objective of improving competition and competitiveness of the economy. 
Question:  
What measures are foreseen to remedy the situation and facilitate trade given that in the 
Government report Indonesia stresses in paragraph 3.1.2.4 "its engagement in the WTO for the 
successful outcome of the negotiations in  the Group on Trade Facilitation?"  
Response: 
Indonesia has interest that trade facilitat ion can be one of the outcomes in next 
negotiations as trade facilitation is one of to ols to create free flow of goods not only in 
border line but also in domestic market. 
2.4. Foreign investment regime 
Page 22, paragraph 2.8 
There have been significant legal and institutional changes to Indonesia's foreign investment 
regime over the period under review; a law on investment was enacted in 2007 and a new, 
comprehensive list of restrictions to investment has been issued.  
According to Indonesian authorities there is a ne ed to strike a right balance between domestic 
industrial policy considerations (aimed, inter alia, at developing local industries and moving up the 
value chain) and the general objective of maintaining an open foreign trade and investment 
regime (in order to ensure that Indonesia's external commitments continue to be fully respected). 
The EU is concerned by the direction taken by the trade policy recently. 
Question:  
Does Indonesia consider that the "right balance"  above mentioned has been achieved? If so, can 
Indonesia give background elements showing that balance is struck?   
Response: 
Investment in Indonesia is regulated in se ctoral laws (specific regulation) and in 
investment law (general principle regulati on). This needs to be interrelated and 
coordinated. We encourage that foreign invest ment will not give benefit to the investors 
only, but part of the benefit also must  go to local or domestic society.  
2.4.2.Negative list 
Page 31, paragraph 2.36  
In the course of 2012, the government (Inves tment Coordinating Board – BKPM) introduced a 
minimum capital requirement of around USD 1 million  for foreigners for establishing a company in WT/TPR/M/278/Add.1 
 
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  Indonesia.   The EU is concerned that such measure is to seriously hamper joint ventures between 
innovative, high-tech foreign companies and Indonesian partners. 
Question:   
To what extent can the government justify the above mentioned measure in light of its overall 
objective to attract foreign investment and treat foreign and local business in the same way?   
Response: 
Such requirement is based on the sectoral  laws. We need minimum capital because 
investment needs a lot of money. Minimu m capital requirement at least will avoid 
disguising investors who are not seri ous in doing business in Indonesia.  
Pages 25 to 26, paragraphs 2.26 to 2.29; and table 2.3 
Indonesia's negative list remains a heavy obstacle on free trade and investment and reflects the 
lack of substantive progress for the liberalization of trade. Potential investors from the EU expect 
more flexible and favourable conditions for investment. Feedback from different sources is that the 
new DNI could include a great many more foreign ownership restrictions.  
Question:  
When does Indonesia foresee its amendment of the Investment Negative List  (DNI), presidential 
regulation 36/2010 to enter into force?   
Response: 
It must be reviewed periodica lly within two or three years  
Would Indonesia be open to a discussion with the foreign community with regard to its upcoming 
revision of the Investment Negative List, notably to ensure areas that are in the interest of 
Indonesia's overall economic objectives? 
Response: 
Indonesia opens to series of discussion in re viewing negative list. It is not necessary to 
ask review during the last minutes of the en d of the review but it can be done longer 
time prior to the enactment. Inputs can be deliv ered or discussed in line ministries but it 
can be sent or discussed in C oordinating Ministryof Economy. 
Would Indonesia consider opening up sectors for FDI where there is a clear gain in terms of 
domestic policies and where sectoral ministries are demanding to do so, i.e. the Ministry of Health 
which on numerous occasions asked for a revision to accommodate 100% foreign ownership on 
pharmaceuticals?  
Response: 
Any inputs on negative list supported by  figures and justification is welcome 
3. TRADE POLICIES AND PRACTICES BY MEASURE 
3.1. Measures directly affecting imports 
3.1.1 Procedures 3.1.1.1. Registration requirements 
 
The EU notes that currently, the new system for import licenses creates massive congestion at the ports and shortages of many products on the Indonesian market.  
Question:  
What does the government intend to do to solve these problems? Will Indonesia consider 
automatic import licenses to facilitate a faster entry of imports? WT/TPR/M/278/Add.1 
 
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  Response: 
Indonesia fully understands the facts and re al conditions recently in implementing 
import license. We learned much from it so th at we are starting to review and discuss 
among in line ministries.  
3.1.1.2. Port of entry restrictions 
Page 32, paragraph 3.7 
 
Port of entry restrictions are in place for a number of items. 
Question:  
How does the port of entry restriction accommoda te competitiveness and lowers the overall price 
levels of goods, taking into account the lack of  infrastructure to transport goods efficiently?  
Response: 
We are continuously improving the infrastructure in all designated port to provide better 
service and maintain level of competiveness. 
3.1.1.3. Pre-shipment inspection 
Page 32, paragraph 3.8 
The Report refers to a number of goods requirin g pre-shipment inspections. Ministry of Trade 
(MoT) adopted recently regulation 83/2012 extending the initial 'crisis-related emergency' measures (MoT regulation 57/2010, preceded by Mo T regulation 56/2008) by another three years.  
Question: 
Does the government consider that this regulation is still needed from a 'crisis-response' point of 
view?  
Response: 
As a regulator, Government needs to ensu re safety by making the precautionary 
measures available.   
Page 32, paragraph 3.10 
The priority lane was introduced in 2006 whereby reputable importers may submit customs 
documentation prior to arrival of the goods. Upon arrival of the goods they are automatically 
released. 
Question:  Does the EU understand correctly that the Ministry of Trade regulation 83/2012 no longer allows 
priority lane status for pre-shipment control exemptions? If so, would the government consider 
facilitating access to trading partners that  have established a good track record?  
Response: 
Yes, Ministry of Trade regulation 83/2012 no longer allows priority lane status for pre-
shipment control exemptions. We are still in process of reviewing the best policy to be 
implemented in order to provide assistance to  trading partners that have established a 
good track record 
3.1.4. Other charges affecting imports 
3.1.4.1. VAT, paragraph 3.30 
VAT exemptions (on imports), and zero-rates (for domestic production) apply for certain 
machines, goods, and materials, in order to enhance the productivity of the industrial sector. They 
include: capital goods in the form of machinery and factory equipment; animal, poultry and fish 
feed and raw materials to make feed; agricultural products; and seeds. WT/TPR/M/278/Add.1 
 
- 71 - 
 
  Question:  
Could Indonesia provide more details on the conditions under which an importer can benefit from 
VAT exemptions and zero-rates? Can Indonesia clarify whether those conditions are contingent 
upon export performance or import substitution? 
Response:  
The purpose of this policy is to encourage national development by helping the 
availability of strategic goods.  
The companies that using this tax incentives  should be companies that produce goods 
that subjected to value added tax. VAT exemption is only granted for certain input, while 
output remains subjected to 10% value added tax of value of goods (without deducting 
input VAT). The provisions of the value added taxon output,make this policy are not contingent upon 
export performance or import substitution. 
The principle of fiscal neutra lity has been described with the equal treatment of imports 
compared with locally goods, in ma tters relating to VAT exemptions. 
Page 44, paragraph 3.33 
The Excise Tax rate applied to imported alcoholic beverages with an alcohol content of 5% or more 
is higher than for domestic production. The EU considers that this policy may be an incentive for 
more illegal trade and parallel market that are detrimental to the government's objective of tax 
collection and general public health objectives. 
Question:  
Could Indonesia explain how this policy is justif ied with regard to the principle of National 
Treatment in the WTO? Does Indonesia consider e liminating these discriminatory excise duties in 
light of the above remarks? 
Response: 
The regulation of alcoholic beverages excise ta x is not discriminatory because in case of 
product specification there are several di fferences between imported and domestic 
alcoholic beverages on quality, raw material , production processing, price and market 
segmentation (imported product are more premium class than local product). By 
imposing of excise tax and import duty, im ported product will gain several advantages 
which are: 
a. They will get higher quality for simila r category (different domestic market 
segmentation). 
b. Specific tariff rate system will make the calculation of excise tax and import duties 
simpler and faster, and also will av oid dispute on custom valuation. 
c. It gives more guarantees for excellent level of hospitality services by Indonesia 
tourism industry through maintaining impo rted alcoholic beverages availability. 
Indonesia was thinking about efforts to reduce and eliminate the gap between the 
impositions of excise duty of imported  alcoholic beverages to the local origin   
3.1.5. Import prohibitions, restrictions, and licensing 
3.1.5.1 Import prohibitions 
Pages 44 to 45, paragraphs 3.35 to 3.40  
The Report is silent on Indonesia's future commitments to facilitate imports.  
Question:  
Does Indonesia intend to liberalise its strict import quotas?  WT/TPR/M/278/Add.1 
 
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  Response: 
As part of our commitment to trading partners, we are continuously reviewing and 
enhance coordination with related stakeh olders to improve our trade policies.  
3.1.5.3. Import licensing 
Page 45, paragraph 3.37 
Some EU operators have been required to produce an import licence for bringing samples to 
Indonesia? 
Question:  Could Indonesia indicate on which grounds it requires import licensing for samples to be brought 
into the country?  
Response: 
As stipulated in Article 33 Regulation of  Ministry of Trade No. 27/2012 regarding the 
import identification number, we have made  an exception whereas import of samples 
can be done without import identification number. However, import permit is still 
obligated in order to prevent the misused of the goods. 
Page 45, paragraph 3.39 
Around 2,600 tariff lines are subject to import licensing, representing around one-fifth of 
Indonesia's tariff, which is a significant increase over the review period. 
Question:  
How does Indonesia justify this increasing trend which has created various concerns among WTO 
Members as stressed in the subsequent Paragraph 40? What steps does Indonesia consider taking to ensure that a uniform, predictable, transparent policy is applied? 
Response: 
As developing countries with emerging mark et, Indonesia is still continuously reviewing 
for the best policies to regulate the importat ion of goods. As part of our commitment to 
trading partners, we are continuously review ing and enhance coordination with related 
stakeholders to improve our trade policies.  
The recent MoT Regulation No. 27/2012 obliges importers to establish a 'special relationship' 
through the Indonesian embassies abroad. 
Question:   
Will Indonesia provide instruction for its embassies regarding the procedures to obtain a 'special 
relationship' and the various fees embassies are charging, according to reports? 
Response: 
In accordance to Article 9 MoT Regulation No. 27/2012, we are coordinating with our 
embassies in order to provide assistance re garding the procedures to obtain 'special 
relationship'. Every assistance  provided free of charge.   
Page 45, paragraph 3.40 
The Report highlights the concern of WTO memb ers regarding the complexity of, the lack of 
transparency, and the trade-impairing effects of Indonesia's import licensing requirements. 
European companies consider the new import licensing requirements and longer time frames for 
processing imports currently being experienced at ports of entry, increasingly burdensome. The EU 
considers that the lack of information regarding the criteria for granting or refusing the licenses, 
does not comply with Article 3.3 of the WTO Agreement on Procedures for the Granting of Licenses. In any case, being discretionary, these measures seem to be in contradiction with WT/TPR/M/278/Add.1 
 
- 73 - 
 
  Article 4.2 of the Agreement on Agricultur e. In addition, the EU notes that the system created 
considerable congestion at the ports and shortages of many products on the Indonesian market 
Question:  
What measures does Indonesia envisage to solve these problems? 
Response: 
Review of the regulation is still under the process  
3.1.6. Contingency measures 
3.1.6.1. Anti-dumping and countervailing measures Page 46, paragraph 3.43 
 
KADI may undertake anti-dumping and countervailing investigations on its own initiative or launch an investigation based on an application from domestic industry. Regulation No. 34 introduces the 
requirement that the petitioner or the domestic indu stry supporting the petition must constitute at 
least 25% of total domestic production of the like product(s) to be investigated. The provision does not seem to fully reflect provisions of article 5. 4 of AD agreement and 11.4 of SCM agreement ("if 
it is supported by those domestic producers whose collective output constitutes more than 50% of 
the total production of the like product produced  by that portion of the domestic industry 
expressing either support for or opposition to the application" as the EU understands from the 
legislation) 
Question:  
Does Indonesia consider amending the relevant provisions of its legislation so as to conform to 
WTO SCM agreement and AD agreement? If so, by when? 
Response: 
The provision regarding the 25% domestic production requirement is stated in 
Article 6.1 (antidumping) and Article 41.1 (c ountervailing) of Government Regulation 
No. 34/2011. While the requirement regard ing the 50% collective output of total 
production of like product is stated in Article 4.3 (antidumping) and Article 39.3 
(Countervailing) of Government Regulati on No.34/2011. Thus, the provisions in 
Government Regulation No. 34/2011 comply with ADA and SCM. 
3.1.6.2. Safeguard measures 
Page 46, paragraph 3.46 
 
The new regulation includes a number of notable ch anges including power given to the Ministry of 
Trade, amendments to the procedures so as to  impose provisional and final duties and the 
introduction of a sunset review procedure. 
Question:  How does the revised Regulation relate to the draft Trade Law that is currently being finalised and 
enables the Ministry of Trade to restrict imports under specific reasons?  
Response: 
Recently, trade remedies measures is regu lated under the system of Customs Law and 
its government regulation. Due to our plan to enact Trade Law, trade remedies will be 
placed and regulated under the trade law. Th e substance of draft shall be consistent 
with the Law No. 7 of the year 1994 on WTO Ratification.  
Page 48, paragraph 3.52 (see also page  8, paragraph 13), and Table 3.10 
The Report identifies Indonesia as one of the most frequent users ("second most") of safeguard 
measures with a significant increase in the use of such measures since 2010. WT/TPR/M/278/Add.1 
 
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  Question:  
Can Indonesia elaborate on what justifies such increase of the use of safeguard measures?  
Response: 
The increase in the use of safeguard measures  was the result of re cent awareness in the 
domestic industry of the availability of trade remedies, i.e. the WTO Agreement on 
Safeguards. 
Question:  
Could Indonesia elaborate on how this instrument is applied given that for most cases, there a 
sudden surge of imports was not shown (sometimes even a decrease)? 
Response: 
The said instrument is applied in accordan ce with the WTO Agreement on Safeguards. 
Question:  
Does Indonesia aim at re-considering its abundant use of safeguards whereas anti-dumping 
investigations might be more appropriate given the perceived increase of imports often come from a single or few destinations only and safeguards affecting all its trading partners?  
Response: 
In conducting its investigation and actions,  Indonesia assures that such investigation 
and actions are conducted as required by the WTO Agreement on Safeguards 
3.1.7. Standards and technical regulations 
Page 51, paragraph 3.57 and 3.59   
 
"As at December 2012, there were 7,394 approved SNIs (Chart 3.3): 97% voluntary, and 3% (i.e. 254) mandatory technical regulations (there we re 211 technical regulations at the time of 
Indonesia's previous Review)."It has been reported to the EU that the trend is that SNIs tend not 
to be voluntary. E.g. in draft Industry Law they ar e officially voluntary, but operators report that if 
they do not abide by them, they are not allowed to sell or produce your products in Indonesia. 
 
Question:  
How does Indonesia intend to bring SNIs in line with internationally agreed standards and best 
practice to facilitate both exports and imports? 
Response: 
Answer will be provided later. Question:  Could Indonesia explain why the Report refers to the 'voluntary use' of SNI while the draft industry 
law (replacing MoI Law No. 5/1984) foresees obligatory use of national standards for production, 
distribution and trade in Indonesia?  
Response: 
Standard refers to voluntary use, but when the government says it is a compulsory, it is 
an obligation for business players to do so.  
3.1.7.1. Notifications and specific trade concerns 
Page 52, paragraph 3.61 
 Over the review period a number of specific concer ns have been raised including the transparency 
in the development of the new regulation regarding trade in halal products and labelling 
requirements. It has been noted that notification to TBT was not done on this issue. WT/TPR/M/278/Add.1 
 
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  Question:  
Will halal labelling remain voluntary? 
Response: 
Halal is legal basis for Moslem society in gene ral, not only in Indonesia but also in all 
other Muslim countries. Halal cannot be someh ow considered as quality in general term. 
It is a quality for faith which is not debata ble. A product cannot be considered as halal 
unless a preliminary audit is conducted to id entify the whole production process which 
shall be complying with halal requirement. Un til now certificate of Islamic purity (Halal) 
is still voluntary. In the case that a produc t necessarily uses a halal label then a halal 
certificate is required. 
For your Information, Legal basis for halal: 
 
 Food Law No.7/1996 (Article 30.1 and 34.1); 
 Consumer protection Law 8/199;  
 Government Regulation (PP) No. 69/1999 on Food Labelling and Advertisement, 
Article 3.2, 10 and 11; 
 Fatwa Decision of MUI on Approval of Halal.  
Organizations responsible fo r Halal Certification are: 
 
 The Ministry of Religion (Department Agama);    
 The National Agency for Food and Drug Control (BPOM) (for food, drug and 
cosmetics products; and,  
 Indonesian Ulama Council (MUI). 
For more information please visit www.halalmui.or.id  
Question:  
Will Indonesia maintain allowing importers to sticker products after importation as this would 
provide for the necessary information though not unnecessarily increase costs for trading partners?  
Response: 
In the case of label affixing, there is a num ber of technical regulation required label 
affixing. Several regulation required that sticker must be affixed in the product or 
packaging and labelled before enter to the In donesia customs. It is all describe in 
technical regulation or technical guid ance to the regulation. For example: 
 
 Government Regulation No. 69 Year 1999 concerning Food label and 
Advertisement  
 Minister of Trade Regulation RI No. 62/ M-DAG/PER/12/2009 concerning Obligatory 
Label Affixing on any Goods and its amen dment Regulation of Minister of Trade 
No.22/M-DAG/PER/5/2010  
 Indonesia views that the affixing label (sti cker) before importation to the Indonesia 
c u s t o m s  a i m i n g  a t  g i v i n g  r i g h t s  t o  t h e  consumers to obtain a correct, clear and 
right information, so that the provisions are not intended to create barriers to trade. WT/TPR/M/278/Add.1 
 
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  3.1.8. Sanitary and Phytosanitary Measures 
Page 53, paragraph 3.68 
 
During the review period a new food law was being drafted and has entered into force.  
According to Article 36 of the Law, imports of food  products are authorised only if the domestic 
production is insufficient or if the product cannot be produced domestically. 
Question:  
How does Indonesia intend to respect its WTO obligations, in particular the commitment not to 
maintain, resort to, or revert to any measures […] including quantitative import restrictions 
provided for in Article 4.2 of the WTO Agreement on Agriculture and in Article XI of the GATT? 
Response: 
Articles 96 and 97 provide that Food labels must be affixed on imported food products 
during entry into the territory of Indone sia, which must include extremely detailed 
information.  Many elements of information are required in vague terms (e.g. "origin of 
certain food"; "halal for those required"), t hus creating uncertainty and unpredictability. 
Furthermore, Article 98 foresees derogation s to these requirements for "certain food 
wrapped in front of shoppers", which may re sult in treating differently imported and 
domestic products. 
Question:  Generally speaking, how does Indonesia intend to respect its WTO obligations, in particular the 
commitment that technical regulation are not prepared, adopted or applied with a view to or with 
the effect of creating unnecessary obstacles to international trade as provided for the TBT agreement? 
Response: 
We try to be consistent with TBT agr eement but sometimes different angle on 
interpreting the regulations lead to different opinion in deciding wh ether it is line with 
WTO rules or not.  
Page 53, paragraph 3.69 The Report states that, "Indonesia made 26 notifications to the SPS Committee (excluding 
revisions), most of which were regular notificati ons (Table 3.11). Seven regular notifications were 
notified after the SPS measure had entered into force." 
Question:  
What changes does Indonesia foresee to ensure that its WTO SPS notifications are submitted 
timely, allowing sufficient time for WTO Members to comments and to ensure that these could be 
taken into account and anyhow that it is notified sufficiently long before the SPS measure enters 
into force? If such changes to the process of notifications are introduced, when would they be implemented and applicable? 
Response: 
 Indonesia, in this case Indonesian Agricult ural Quarantine Agency as the National 
Notification Body and Enquiry Point drafti ng and preparing the Regulation of the 
Minister of Agriculture concerning The Noti fication Procedures of SPS Regulations to 
the WTO. The regulation will be dissemina ted to relevant agencies so that the 
relevant agencies will aware of the obligation of transparency. 
 Comments from various countries to Indone sian SPS regulations which have been 
notified considered and discussed with the Expert Team to be adapted to the 
conditions of Indonesia. WT/TPR/M/278/Add.1 
 
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  3.1.8.1. Selected SPS-related import requirements and restrictions 
3.1.8.1.2. Live animals, meat and dairy products 
Page 54, paragraph 3.72 
According to the Report, "Indonesia requires foreign companies that export animal derived 
products to Indonesia to prelist their establishments with the Indonesian Ministry of Agriculture." 
Question:  
Could Indonesia provide a detailed clarification and description of the process, including timelines, 
for prelisting establishments?  In addition, could Indonesia list the web links where this information could be found? 
Response: 
 Indonesian legislation requires both count ry and establishment approval (through 
both a declaration (questionnaire) and on -site assessment) for import of animals 
and animal products. Procedures on approv al of foreign companies willing to export 
their products to Indonesia are explained in MOA Regulations No. 50/2011.  
 www.ditjennak.go.id  
Question:  
Could Indonesia provide a detailed description, inclusive timelines, of the process of dealing with 
applications to export live animals, meat and dairy products to Indonesia? What criteria (detailed 
overview) are applied for passing the approval process?  
Response: 
In its import conditions referred to in  the text under paragraph 3.1.8.1.2 (e.g. 
50/PERMENTAN/OT.140/9/2011 (50/2011) Indone sia has still animal health related 
measures to diseases such as Bovine Sp ongiform Encephalopathy (BSE) which goes 
beyond those stipulated in the relevant inte rnational standard of the World Organisation 
for Animal Health (OIE). The OIE standard lists a number of bovine commodities which 
can be traded in all safety regardless the count ry risk status. This includes allowance of 
imports of de-boned skeletal muscle meat from cattle (without any age limit) regardless 
the BSE risk categorisation status of the exporting country in line with OIE. The detail description is described in the Regulation of the Minister of Agriculture No. 50/2011. 
Question:  
Does Indonesia has a risk assessment based on science available where it deviates from the 
international standard and if so, when and how will Indonesia share this with its trading partners 
as required under the WTO SPS Agreement?   
Response: 
For a number of diseases specifically mentioned in 50/PERMENTAN/OT.140/9/2011 
(50/2011), country freedom is required. Ther efore, the concept of regionalisation as 
stated in the OIE Standards and as requ ired under the WTO SPS Agreement is not 
recognised by Indonesia. Allowing the usage of this principle of regionalisation means 
that trade is only blocked from disease or pest affected areas where adequate measures 
are put in place and thus not a total import  ban from the country of origin. Indonesia 
has not replied so far to the EU's requests for recognition of regionalisation as applied in 
the EU. 
Question: 
When does Indonesia intend to apply its obligations related to regionalisation as stated in the WTO 
SPS Agreement?  WT/TPR/M/278/Add.1 
 
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  Response: 
The amendment was made on the basis decisi on of Court of Constitution No. 137/PUU-
VII/2009 on August 27, 2010 that the phrase "importation of animal products from 
disease-free zone" amended as "importation of  animal products only from disease-free 
country. 
3.1.8.1.3. Horticulture 
Page 54, paragraph 3.73 
The Report refers to the implementation of Law on Horticulture (Law No. 13/2010) in 2010. With 
reference to an external source it states, "the law requires importers of horticultural products to 
ensure the safety aspect of the imported food, th e stock availability of domestic products, and the 
production and consumption targets of horticultural products." 
Question:  
Could Indonesia explain to what extent this statement is in line with Indonesia's obligations under 
the WTO SPS Agreement in not using SPS measures for protectionist reasons? How and when will Indonesia bring its SPS measures on horticulture in line with its obligations under the WTO SPS 
Agreement? 
Response: 
Answer will be provided later. The new Law on Horticulture restricts foreign investments / ownership to 30%. Question:  
Could Indonesia explain how the new law contributes Indonesia's policy of food self-sufficiency, 
especially considering many of prospective investors were looking at high technology investments in for instance high yield seed varieties? 
Response: 
That article shall be implemented in lower regulation  
The Ministry of Agriculture of Indonesia notified to the SPS Committee on June 29th 2012 a new 
regulation on import risk analysis for agricultural products (G/SPS/IDN/52). Neither the 
notification nor the regulation itself mentions a date for entry into force. On September 7th 2012, however, the Agency for Agricultural Quarantine of the Ministry of Agriculture of Indonesia (IAQA) 
–responsible for the regulation mentioned above- officially informed foreign delegations in Jakarta 
of the "new procedure for first importation of horticulture products and other agricultural 
products", making reference to the "new regulation " and implying it was already in force. In the 
same communiqué the IAQA informs that the process of Import Risk Analysis (IRA) to be followed 
is the one shown in the IAQA's website: http ://www.karantina.deptan.go.id. We have, however, 
not been able to identify the said process in the referred website.   
Question:  Could Indonesia clarify the status of the regulation on import risk analysis for agricultural products 
notified to the SPS Committee on June 29th 2012? Could Indonesia inform on the process of 
Import Risk Analysis (IRA) for agricultural products currently applicable?   
Response: 
 This Guideline used as a reference in the implementation of IRA toward the 
importation plan of commodities into the te rritory of the Republic of Indonesia so 
that the implementation of IRA can be implemented comprehensively and the IRA 
result can be implemented and accounted for. WT/TPR/M/278/Add.1 
 
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   The Guideline sets out the criteria of IRA, the time required for implementation of the 
IRA, the IRA cessation, stages of the IRA process, follow-up of the IRA results, 
documentation, and review of the IRA results. 
 The policy of import risk analysis  is in line with the Regulation of the Minister of 
Agriculture No. 60/2012 concerning Impo rt Recommendation on Horticulture 
Products.  
 The process of preparing the IRA carried out by three (3) criteria: (i) First Criteria, 
for the first time imported commodities and have never done AROPT; (ii) Second Criteria, for commodities where AROPT ever done, but come from different countries 
(iii) Third Criteria, for commo dities from countries where AROPT ever done, but it has 
been a change in the pest condition in the country. 
 The time required for the implementation  of the IRA ranged from 6-20 months 
depending on the criteria IRA carried out. For First Criteria, IRA process requires a 
maximum of 20 months, for the second cr iterion maximum of 12 months, and the 
third criterion maximum period of 6 months. 
 Stages of IRA implementation procedures: 
1. Importer or NPPO of exporting country first submit an import proposal to the 
Agricultural Quarantine Agency attached with the necessary technical information. 
2. Toward the application documents the IRA team then will carry out the pre-
assessment to check and examine the co mpleteness of technical information. 
3. If the technical information have comp lete then the Team will implement the 
AROPT consisting of initiation, risk a ssessment and management (managing) the 
risk. In the process of implementation the AROPT will verify the information on 
the Good Agriculture Practices; management of pests in the area of production and 
surveillance program implemented; handling of post-harvest in the packing house 
(Good Manufacture Practices); process of  applied treatment; conditions of 
commodities storage and transportation; special conditions required and the 
application of export certification syst em by the quarantine authority in the 
exporting country. 
4. Further verification will be carried out by the Verification Team to ensure the 
accuracy of presented technical informat ion. Verification performed after prior 
approval from the NPPO of the exporting country. Summary of verification results 
will then be presented to the NPPO of the exporting country. 
5. The team will then draw up IRA draf t report containing IRA information 
background, PRA method, the production si te in the exporting country, quarantine 
pest risk assessment and quarantine pest risk management. The draft report will 
be published to all stakeholders both in Indonesia and in the exporting country to 
obtain input for the completion of the final report 
 The final report approved by the DG of  Agricultural Quarantine Agency then 
submitted to the Minister of Agriculture as  one of the import recommendations in the 
form of Import Protocol containing a summary of the results of IRA including 
quarantine and food safety requirements th at must be met by the applicant and the 
NPPO of exporting country. Import Protoc ol was also conveyed to the applicant and 
the NPPO of the exporting country accomp anied with the report of IRA results. 
 The Verification Team will do the review toward the IRA status on imported 
commodities from a country if: (i) changes in  the status and condition of pests in the 
exporting country and in Indonesia, (ii) any change in the provisions of phytosanitary 
or any change in the effective quarantine and food safety legislation in Indonesia. 
 
Page 54, paragraph 3.74 
"Regulations to implement the new law have tightened up import quarantine procedures to 
prevent the spread of fruit fly […]. New regulati ons relating to fresh fruit and vegetables (MOA WT/TPR/M/278/Add.1 
 
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  Regulation 42/2012) and on bulbs (MOA Regulation 43/2012) limit the number of permitted entry 
points to three sea ports […]." 
Question:  
Could Indonesia explain how the sudden limitation of entry points is in line with its 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? Can Indonesia explain why the EU remains excluded from access to 
all entry-ports of Indonesia despite its high level of  food safety and plant health and its request to 
recognise the EU's food safety and plant health  system? Can Indonesia provide feedback on the 
process and status of receiving a 'Country Recognition Agreement' status that would allow 
horticulture imports through Indonesia's main port Tanjuk Priok? 
Response: 
 Indonesia does not close the Tanjung Priok Sea Port as entry point, Tanjung Priok 
Sea Port is still open for agricultural co mmodities that are not regulated in the 
Regulation of the Minister of Agricu lture No. 42/2012 and No. 43/2012. Tanjung 
Priok Sea Port only facilitate the entry of ag riculture product if fulfil the requirement 
of the product from Pest Free Area  and recognition of food safety. 
 Recognition of food safety in Indonesia is conducted by country not by system. 
Indonesia could not recognize the EU food  safety system as a whole, because 
although the EU member states have the sa me food safety system, but different in 
the application in each EU member state. 
 Tanjung Priok port only facilitate the en try of agriculture product if fulfil the 
requirement of the product from Pest Fr ee Area and recognition of food safety. 
Indonesia stated earlier that it is in the process of upgrading its ports.   
Question:  Could Indonesia provide a detailed timeline on the u pgrade of all entry-ports? When will all trading 
partners have equal access to all these entry-ports? 
Response: 
 Indonesia give access to importation of hort icultural products to 4 (four) designated 
entry points (Belawan Sea Port, Soekarno-H atta Airport, Tanjung Perak Sea Port, and 
Soekarno-Hatta Seaport Makassar) whic h have been equipped with adequate 
facilities. 
 If a country already has recognition of fo o d  s a f e t y  a n d  p e s t  f r e e  a r e a  t h e n  t h e  
country have access to all entry point th at have been designated through the 
Regulation of the Minister of Agriculture No. 94/2011 concerning Entry and Exit Point 
for the Carrier of Animal Quaranti ne Diseases and Quarantine Pest. 
3.2. Measures directly affecting exports 
3.2.2. Export prohibitions, restrictions, and licensing 
Page 55 to 56, tables 3.12 and 3.13 
The Report refers to the prohibition of the export of certain raw materials including rattan and 
semi-processed rattan. 
Question:  Would Indonesia consider the re-evaluation of these prohibitions particularly where the end-user 
would guarantee the continuous and regular im port of this product for domestic use? WT/TPR/M/278/Add.1 
 
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  Response: 
There is no permanent regulation on certain issues. The problem we have so far is that 
rattan furniture producers are mostly located in Java island whereas raw material of 
rattan are available in other islands. We want  to assure that there certainty  that for 
furniture producers get the supply of rattan . Furthermore, environment issues are the 
rationale of the said policy. Rattan that wa s sent to Java island is mostly from 
producted/industrial plants  
3.2.2.1. Export prohibitions 
Page 55, paragraph 3.78 
Report refers to the export prohibition on mineral ore products (currently subject to export 
licensing and taxes) as of 2014, when the mining co mpanies will be required to undertake refining 
activities onshore. This measure has been ruled as illegal by Indonesia's Supreme Court but the 
government has refused to amend it subsequently.  
Question:  Does Indonesia intend to revise its Regulation following its Supreme Court's judgement? How does 
Indonesia consider its regime of export restrictions and taxes in line with WTO-obligations? Which 
policy alternatives has Indonesia considered to restrict or ban mining-related exports? 
Response: 
Please see response to Question No.64 
3.2.2.4. Export assistance 
3.2.2.4.3. Export-orientated production entrepôts (EPTEs) 
Page 60, paragraph 3.90 
EPTEs (otherwise known as stand-alone export-pro cessing units) are the place or building of an 
industrial company enjoying special tax treatment. They are governed by Minister of Finance 
Decree No. 855/1993 (as amended). Goods may be imported into an EPTE and re-exported without payment of tariffs and VAT. EPTEs may divert up to 25% (by volume) of their products to 
Indonesian customs areas, where they are subj ect to normal procedures and customs duties. 
Applications for EPTE status are made to the Minister of Finance through the Directorate-General of Customs and Excise. The EU notes that companies of EPTEs benefit from tax exemptions. As the 
condition to operate in such a zone is for a company to export at least 75% of their production, 
the exemptions seem to consist in a subsidy contingent upon export performance and, as such, 
are prohibited by the WTO.   
Question:  What are Indonesia's plans to ensure full compliance with WTO agreements?  
Response: 
EPTEs do not violate the provisions of the WT O on exports, because of the production of 
EPTEs company that goes(sold) to Indonesia remains subject to import duties and value 
added tax as imposed also on thesame/simila r type of goods imported (there is no 
discriminatory measure). 
3.2.2.4.4 Special economic zones (SEZs) 
Page 60, paragraph 3.93 
The 2009 law makes provision for various fiscal and non-fiscal incentives in order to attract 
investors. Fiscal incentives relate to corporate income tax; property tax; import duty, VAT, excise 
and luxury taxes and local taxes. Non-tax incentives include assistance relating to acquiring land, 
licensing, immigration, investment, and manpower. These incentives are to be further developed 
through implementing regulations. Information was not available as to whether any such WT/TPR/M/278/Add.1 
 
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  regulations had been developed. The law specifies that with respect to employment, priority is to 
be given to Indonesian citizens. 
Question:  
Could Indonesia provide further details on the conditions for licensing to operate in SEZs as well as 
on the incentives provided? 
Response: 
The provision of SEZ is still in the proce ss of developing regulations. The main 
requirement for obtaining SEZ facility is th e company engaged in the areas that are 
pioneers, export processing, or develop the certain regional areas economy in 
Indonesia.   
3.3. Measures affecting productions and trade 
3.3.1. Government procurement 
Page 60, paragraph 3.99 
The regulation that foreign companies may only bid in cooperation with a national company and 
only on bids that exceed certain thresholds (Article 104 of the PR54) as well as the mandatory use 
of domestic products if there are providers offering goods or services with a local content 
exceeding 40 % (Articles 97 of the PR54) both po se problems with regard to non-discriminatory 
access for foreign bidders to the public procurement market of Indonesia. Indonesia should be 
encouraged to change its regulations, provide for the possibility of an independent review 
procedure and abolish the local content rule. The Report emphasizes that Indonesia became and 
observer to the WTO Government Procurement Ag reement (GPA). The EU welcomes Indonesia's 
observer ship to GPA. 
Question:  
Could Indonesia indicate when it intends to launch the accession process to GPA? How does 
Indonesia see its Government procurement regulation impact international companies to bid for infrastructure projects in the context of PPPs for instance for the MP3EI (see above? 
Response: 
 At this point, Indonesia has no plan to acceed the GPA but more focusing on 
improving its procurement sy stem to be more structured and international best 
practices-based.   
 Indonesian procurement regulation allows foreign companies to participate for any 
infrastructure projects, as long as the valu e of the projects are above the stipulated 
threshold as mentioned in PR  54/2010 (for construction projects is above 10 million 
USD). 
Page 62 paragraph 3.103 and paragraph 3.104 explai n the respective responsibilities of the NPPA, 
KPPU and KPK  
Question:  
How do the KPPU, KPK, NPPA and the Procurement Serv ices Unit interact in case of bid rigging and 
how are the responsibilities of each of them define? 
Response from KPPU: 
Bid rigging is the most handled competition infringement by the competition agency in 
Indonesia. It was accounted for 74% of total case. The statistic for the past seven years 
shows that there were around 105 examinat ions on bid rigging case handled by 
competition agency, amounting for IDR 11.8 trillion nationwide (private and public 
procurement). The public procurement is ca lculated for 97 cases. Among the 97 cases 
(that become examinations), 63 bid riggings was conducted at local level (province, WT/TPR/M/278/Add.1 
 
- 83 - 
 
  municipal, and region) and 34 bid riggings wa s conducted at national level (state). The 
rigged value was different. National bid rigging cases were amounting up to IDR 
6.6 trillion ($676783800. 00), while the local cases calculated for IDR 1.6 trillion 
($164068800.00 ). Meanwhile, the SOE' bid rigging valued IDR 400 billion 
($ 41017200.00 ) ($1 = IDR 9752.00) 
To prevent further violation, a close coordi nation between competition agency (KPPU), 
anti-corruption agency (KPK), and regulator on public procurement (NPPA) is made. The 
line is put clear. Competition agency will focus on the collusive  behaviour between 
enterprises, anti-corruption agency will focus on corruption (bribery, etc.) in the public 
procurement involving govern ment officials, and regulator (NPPA) will focus on the 
policy aspect and infringement of procur ement procedures. In certain case, if 
competition agency found the aspect of corr uption in public procurement, they will 
transfer the corruption allegation to anti-c orruption agency, while competition agency 
focuses on the collusive behaviour between en terprises. Should any agency during their 
investigation found most behaviour was caus ed by the policy, they will inform the 
regulator to put specific concern on the procurement policy for further amendment. 
Procurement service unit treats as close co unterpart by all agencies in disseminating 
good practices in procurement to identify an d avoid potential collusion and corruption in 
public procurement. Guidelines  on identifying potential bid rigging, corruption, and best 
procedures are provided by all agencies to all procurement service units for that 
purposes. In handling competition case, the regulator (NPAA) often use by competition 
agency as witnesses to testify based on their expertise in procurement system or 
procedure. Recently, NPAA is closely commu nicating and involving the Commission in 
dicussing procurement policy in competition perpective. 
Page 62 paragraph 3.104 and summary page 9 paragraph 14 :  
The EU notes that the secretariat report still considers that bid rigging remains a major problem 
for Indonesia' efficiency of procurement. Page 63 paragraph 3.3.2 states that "an analysis of 
Indonesia new procurement regime, as governed by PR 54 was undertaken by Transparency International and the Centre for International Pr ivate Enterprise in 2011 benchmarking it against 
APEC procurement standards. The analysis inter alia draws attention on the need for a 
comprehensive national procurement law and improved audit procedures. These issues were also 
highlighted in an OECD review in 2007". 
Question:  What are the measures taken by the government to address these shortcomings given the 
importance of procurement in areas related to th e development of infrastructure whose capacities 
have reached limits as noted several times in the report?. 
Response: 
We believe trough electronic  procurement system; we will reduce the problem such as 
bid-rigging etc. One of government priority to control problems in procurement regime 
through e-procurement system. Indonesia has been intensifying to promote and expand 
the system since 2005. Indonesia now ha s 552 electronic procurement services 
throughout Indonesia. 
Page 64, paragraph 3.111  explains the complaint mechanism that can be done at the level of 
the procuring entity. It is stated that "the Procurement Services Unit is in charge of "implementing 
individual procurement (including defining tender  specifications, evaluating bids..." as well as 
reviewing the complaints". 
Question:  How does the current complaint mechanism ensu re that objections are reviewed by an 
independent authority if the Procurement Services Unit is in charge of "implementing individual WT/TPR/M/278/Add.1 
 
- 84 - 
 
  procurement (including defining tender specificat ions, evaluating bids...)" as well as reviewing the 
complaints? 
Response: 
We believe that PSU and procur ing entities has the objectivity and credibility to review 
the objection, due to that reason, Indonesian  procurement regulation does not stipulate 
independent authority to review  and answer the objection. 
3.3.4 Competition policy and price controls 
3.3.4.1. Competition policy Page 66, paragraphs 3.120 and 3.121 
There have been no changes to the Competition law during the review period which covers a wide 
spectrum of anti-competitive behaviour. It has re cently been scrutinised by the OECD concluding 
that it contains all of the core elements that  are necessary in order to be fully effective. 
Question:  
Does Indonesia consider amending its competition law to improve situation? How do the provisions 
in the draft Industry Law (currently in its final stage) regarding the support of domestic industry 
and the taking of ownership over strategic industries contribute to Indonesia's competition 
policies?  
Response: 
Indonesia's competition policy and law had b een reviewed twice by UNCTAD and OECD, 
both in the year 2009 and 2012. The reviews did put serious concern on current 
situation of the authority of competition ag ency in obtaining evidences and low fines 
which reduce deterrent effect to the enterp rises. The potential problem may cause by 
(but not limited to) the competition law. A process for an amendment has been taking 
place at the Commission for more than three years. The draft has been submitted to the 
Parliament for further review. Some of the focuses of the amendment are related to the enhancement of Commission's authority, institut ional status, and level of fines. In term 
of Commission's authority for example, the co mmission is trying to get better authority 
in obtaining evidences such as tape wi ring and confiscation of documents. 
3.3.5 Intellectual property rights 
3.3.5.4 Regulatory developments (2007-12),  page 70, paragraphs 3.138 to 3.140  
The secretariat report does not report on data protection. As a WTO member, Indonesia is 
committed to implementation of TRIPS Article 39.3 on data protection. EU most recent information 
is that a Regulation on data exclusivity for pharmaceutical and agrochemical data is under preparation.  
Question:  
Could Indonesia provide more information about this  Regulation and the regime of data protection 
set out there in?  
Response: 
So far, there is no preparation process on  the Regulation on data exclusivity for 
pharmaceutical and agrochemical  data is under preparation 
Page 70, paragraph 3.139  
The Report states that, over the review period , Indonesia used compulsory licensing on two 
occasions – in 2007 and 2012 – to permit Government use of pharmaceutical patents to produce 
certain antiviral and antiretroviral drugs. The EU recommends that next time the government 
plans to issue a compulsory licence, it should do so in closer cooperation with the industry involved 
and therefore that the process be made transparent and consultation time sufficient before a WT/TPR/M/278/Add.1 
 
- 85 - 
 
  measure is adopted. The EU notes also that TRIPS Article 31(i) states "the legal validity of any 
decision relating to the authorization of such use shall be subject to judicial review or other 
independent review by a distinct higher authorit y in that Member".  Article 102 of Indonesia's 
Patent Act provides that the decision of the Govern ment to implement a patent itself shall be final. 
That Article provides for recourse by the patent holder to the Commercial Court but only as regards the level of the compensation determined  by the government. Thus, any possibility of 
judicial or independent review of the decision to authorize the use of a patent seems to be 
precluded. TRIPS Article 31(a) requires that for ea ch compulsory license (use of the subject matter 
of a patent without authorization of the right hold er), the authorization of such use be considered 
on its individual merits.  Presidential Decree 76/2012 concerns numerous active substances, 
patents and patent holders, but treats them in an identical manner. To date, Indonesia has not incorporated such provisions in its patent legislation. 
Response:  
In the existing Indonesia Patent Law (Law No 14, 2001), there are two schemes of other 
use without authorization of the right holders  according to the Article 31 of the TRIPs, 
that is Government use and Compulsory License. Indonesia has implemented 
Government use 3(three) times, in 2004, 2007,  for anti-retroviral, and 2012 for antiviral 
and anti-retroviral.  
Issuance of the Government use or exploitati on of patent by the Government has to be 
based on the emergency situation for the sake of public health interest and for defence 
and security of the State. 
The Government use is not for commercial purpose, in spite of the fact that non-
exclusive cannot be further assigned to othe r party. Even though, the Government use 
has been issued, the patent owners still have allow to produce a product if the purpose 
of the Government use only for public health interest. 
Implementation of this the Government use is  stipulated in the Government Regulation 
No. 27 of 2004 regarding the procedure of ex ploitation of patent by the government 
which include procedure, requirements and royalty. 
There are some issue related to the Government  use that Indonesia has concerns in this 
matter: 
First, in relation to Art 31(a) of TRIPs th at is: authorization of such use shall be 
considered on its individual merits; 
It is true that in the last the Government us e, particularly in the Presidential Decree, the 
Government use issued for 6 (Six) drugs of  antiviral and antiretroviral, while TRIPs 
required that the authorization shall be considered on its individual merits.  
In the existing Patent Law, there is no prov ision whether it is allowed to include one or 
more active substance(s) in one Decree or not. Learning and observing recent 
development and issues on this matter, In donesia would like to explore much more 
detail and deeply the provision of Article 31(a)  of TRIPS in view of the existing patent 
Law and any practice has been applied in Indonesia.  
Furthermore, in relation to Art 31(b) TRIP s in conjunction with Article 101(1) of the 
Indonesia Patent Law, that is provision in relation the requirement that member shall 
make efforts to obtain authorization from th e right holder within reasonable time prior 
the issuance. Actually in the Art 31(b), in ca se of emergency situation or in case of 
public non -commercial use, the requirement to make efforts to obtain authorization 
from the right holder may be waived by a Member even though the right holder shall, 
nevertheless, be notified as soon as reasonab ly practicable. We understand that because 
government use is in case of emergency situation therefore the obligatory to approach 
patent holder prior the issuance may be waived. WT/TPR/M/278/Add.1 
 
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  On the other hand, we realize that in the Arti cle 101(1), it is mentioned that notification 
will be sent to patentees prescribed in advance when the government intends to 
implement compulsory licenses.  
In two first the Government uses, this procedure unintentionally skipped by the 
authority, but for the third one, we have realized that there are improper procedure in implementing this Scheme and therefore we have informed this issuance to the right 
holders as required by the Article 31( b) TRIPS promptly after the issuance. 
In term of judicial review, for the governme nt use scheme judicial review can be done 
only for amount of remuneration. Meanwhile , for compulsory license scheme judicial 
review can be done for any decision 
Based on the development of this issue,  any inappropriate procedure done in 
implementing this condition in the past will  be corrected in the future and because the 
process of amending Patent Law is still on-g oing, any input will be considered to be 
inserted in the draft law based on the deep exploration and assessment. 
Question:  
Could Indonesia explain how such identical treatment is consistent with considering the 
authorization of use of each of the patents on in its individual merits? 
Response: 
In the existing Patent Law, there is no prov ision whether it is allowed to include one or 
more active substance(s) in one Decree or not. Learning and observing recent 
development in the national and internationa l level on this matter, Indonesia would like 
to explore much more detail and deeply the prov ision of Article 31(a) of TRIPS in view of 
the existing patent Law and any practice ha s been applied in Indonesia. As the process 
of amending Patent Law is still on-going, any input will be considered to be inserted in 
the draft law based on our deep exploration and assessment.   
Question:  
Could Indonesia explain how Article 102 of its Patent Act can be interpreted consistently with 
Article 31(i) of TRIPS? 
Response: 
There are two schemes to use a patent without the authorization of the right holder i.e. 
Compulsory License and Governmeent Use. The provisions on Governement Use are set 
forth in Articles 99-103 of the Patent Law No. 14/2001 and further elaborated in 
Government Regulation No. 27/2004. Government Use will only be issued in emergency situations, therefore objections can only be filed with regard to the amount of 
compensation. 
However, Indonesia is open and very welcom e to discuss and explore in more detail the 
provision of Article 31(i) of the TRIPs, part icularly in connection to any practices and 
what have been regulated in our existing Pate nt Law. As we are still in the process of 
amending the Patent Law, any input will be taken into account to be inserted in the 
Draft based on our deep exploration and assessment.   
Question:  
When is Indonesia going to implement adequate data exclusivity protection in accordance with 
Article 39.3 of TRIPS? 
Response: 
Although, Indonesia does not have specific ally Law on Data Protection, Indonesia 
considers that procedure applied in the pr ocess of getting marketing approval by WT/TPR/M/278/Add.1 
 
- 87 - 
 
  National Authority is complied with Data Prot ection stipulated in the Article 39.3 TRIPs. 
All data submitted by originator is keep secret and not be given to any other party.   
3.3.5.6. Enforcement 
Page 72 paragraph 3.144 and 3.145 
 Paragraph 3.144 sets out certain provisions of Law No. 17 (2006) regarding action that may be 
taken when there is evidence of IPR violations. Paragraph 3.145 sets out, among other, provisions 
allowing the Commercial Court to issue a provisional decision to prevent the continuation of infringement of  IPR, to keep the evidence relati ng to the infringement of IPR and to request the 
applicant party to provide evidence of entitlem ent to the IPR and of infringement thereof. 
Question:  Could Indonesia provide more details regarding the mechanisms in place or under preparation to 
ensure the effective implementation of the above provisions and other provisions in Indonesia's 
system of IPR enforcement, including (but not limited to) information on the following:  
a. whether further regulation (Minister's regulation) as mentioned in Article 53 of Law No. 17 
(2006) has been prepared or is under preparation; 
b. whether supplementary legislation/regulation (e.g. guidelines from the Supreme Court) 
exists or is in preparation regarding the implementation of the provisions allowing the 
Commercial Court to issue a provisional decision to prevent the continuation of infringement of IPR, to keep the evidence relating to the infringement of IPR and to request the applicant 
party to provide evidence of entitlement to the IPR and of infringement thereof; 
Response to a) and b): 
Supreme Court Regulation on Injunction has been issued to suspend goods suspected to 
IP infringement at the border with Judici al Scheme. This sche me requires active 
participation of the right holders, and theref ore our customs authority is now working to 
h a v e  a n  M o U  w i t h  i n d u s t r i e s  t o  h a v e  a  m u tual understanding in implementing this 
scheme.    
The other scheme provided by the Customs La w is ex-officio scheme. Indonesia is taking 
a step-by-step actions toward implementing this scheme. Government Regulation on the 
implementation of this scheme is still under process to be established.   
c) whether any mechanism or database enabling the tracking of IPR infringement cases 
 through Indonesia's legal system is under development? 
Response: 
DGIPR continuously improves its data base system for any purpose including for 
purpose of enforcement. 
4.  TRADE POLICIES BY SECTOR 
4.3 Infrastructure 
Page 74, paragraph 4.7 
Indonesia has suffered from years of under-investment which left the country with a poorly 
developed infrastructure network and distribution systems. 
Question:  
Could Indonesia elaborate upon what measures it will take to address the regulatory restrictions to 
foreign investors with the objective to facilitate its own infrastructural development? (Delegation) 
Response: 
Answer will be provided later WT/TPR/M/278/Add.1 
 
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  4.4. Agriculture, fisheries, and forestry 
4.4.3. Trade policy instruments 
Page 77, paragraph 4.16 on the Decr ee of Minister of Agriculture 
No. 60/Permentan/OT.140/1/2012.  
 Question:  
Could Indonesian authorities consider publishing th eir decisions, taken apparently on a half-yearly 
basis, with respect to authorisations for import of horticulture products?   
Response: 
Answer will be provided later 
4.5. Mining 
Page 81, paragraph 4.31 
The WTO secretariat report refers to a prohibition on the legislation referred to in this paragraph 
prohibits mining companies from exporting mineral ore products (currently subject to export licensing and taxes) as of 2014, when they will be required to undertake refining activities 
onshore. This measure has been ruled as illegal by Indonesia's Supreme Court but the government 
has refused to amend it subsequently.  
Question:  
Does Indonesia intend to amend its Regulation in order to make it in line with the Supreme Court's 
judgement?  
Response: 
The Supreme Court was only nullifying several Articles in the Minister of Energy and 
Mineral Resources No. 7/2012. However, the said regulation had been previously 
amended before the decision of Supreme Court was issued. According to the new 
regulation (Minister of Energy and Minera l Resources Regulation No. 11/2012), certain 
conditions must be satisfied for exportation of mineral ore products.   
4.7. Services 
4.7.2. Financial services 4.7.2.1. Banking 
Page 86, paragraph 4.58 (see also page 87, Box 4.2)  
A new regulation on commercial bank ownership was issued in 2012 to improve the resilience of 
banks through better governance. The EU notes that further banking restrictions are foreseen, not 
only capping foreign ownership at 40% but also enforcing them to be locally endowed 'PT'. The EU is also informed that the Parliament is debating a new banking law, which would limit foreign 
ownership to 40 or 49% (currently 99%). Foreign ba nks would no longer be able to operate under 
branch status, but would have to become limited liability companies, which would mean that their 
ties with the mother company would be officially severed. This would entail that they lose the 
credit status of the mother company (e.g. AAA). Th is would imply that the cost of credit would 
further increase in Indonesia. The EU is concerned that the new regime could be more restrictive and detrimental to the policy goals of attracting more capital to finance infrastructure or supply 
capacity. 
Question:  Can the government confirm its intention to maintain the current regime that allows foreign banks 
to hold more than 50% of the capital/shares? How exactly does Indonesia intend to have its 
'reciprocity' mechanism in place with regard to other countries' provisions on allowing Indonesian 
banks to be established?  WT/TPR/M/278/Add.1 
 
- 89 - 
 
  Response: 
Bank Indonesia Regulation concerning co mmercial bank applies equally for both 
domestic and foreign shareholder and is not intended to capping bank's ownership by 
foreigners up to 40% (see explanation for US questions on bank's ownership). 
The provisions of Bank Indonesia Regulati on concerning commercial bank ownership 
(PBI No. 14/8/PBI/2012) stipulate the limitations of maximum share ownership in 
Banks based on the shareholder categori es and the relationships between bank 
shareholders. This regulation applies equally to shareholders for both the domestic and 
foreign.  
The backgrounds of PBI No. 14/8/PBI/2012 
In order to encounter the growing dynamic of recent global and regional economic 
development, Indonesia's banking industry  needs to strengthen and enhance its 
resilience through implementation of prud ential and good corporate governance 
principles. Achieving these goals, Bank In donesia needs to regulate banks ownership 
structure by setting share of ownership maxi mum limits in order to reduce the adverse 
impact of bank operation as a re sult of shareholder domination.  
Certain provisions provided in PBI No. 14/8/PBI/2012 are among others: 
 The maximum limit of the share ownership of  the Banks for each shareholder shall be 
stipulated as follows: 1. 40% (forty percent) of the Bank's capital,  for the legal entity shareholder in the 
form of bank or non bank financial institution. 
2. 30% (thirty percent) of the Bank's capital,  for the legal entity shareholder in the 
form of non financial institution.  
3. 20% (twenty percent) of the Bank's capita l, for the individual shareholder. The 
maximum limit for the individual share ow nership of the Sharia Banks shall be 
25% (twenty five percent) of the Bank's capital.  
 
 The non-bank financial institutions that can hold up to 40% Bank's share, shall meet 
the criteria: 
1. Permitted by their prevailing laws to co nduct long term share ownership; and 
2. Regulated and supervised by the fi nancial institution authority.  
 Foreign citizens and/or foreign legal entiti es intending to be controlling shareholder 
must comply the prescribed  requirements of having a commitment to support 
economic development in Indonesia, ob taining recommendation from the home 
authority for financial institution and ho lding an investment grade rating as 
prescribed in the regulation. 
 Banks may hold shares in excess of 40% owne rship in a bank provided that it obtains 
approval from Bank Indonesia and comp lies with prescribed  requirements. The 
prescribed requiremen ts are as follows: 
1. Having the composite grade of 1 (one) or  2 (two) in the assesment of bank's 
soundness or equivalent soundness grade for the foreign bank; 
2. Comply with the minimum capital adeq uacy ratio based on risk profile; 
3. Having minimum of 6% (six percen t) of the core capital (tier 1); 
4. Obtaining recommendation from the bank's home supervisory authority for the 
foreign bank; 
5. 
Publicly listed; 
6. Commit to purchase equity bond issued by the acquired bank; 
7. Commit to hold the bank share for a certain minimum period; and 
8. Commit to support Indonesia economic de velopment through the acquired bank. 
 WT/TPR/M/278/Add.1 
 
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  In order to obtain more than 40% ownershi p of the Bank's shares, the bank as the 
shareholder can only acquire up to 40% in the first phase. The next phase, the 
shareholder can increase their share more th an 40% prior to Bank Indonesia's approval 
and fulfill the requirement of having the co mposite grade of bank's soundness and Good 
Corporate Governance rating of 1 (one) or 2 (two) for the 3 (three) period of assessment consecutively in 5 (five) years peri od starting the date of Bank Indonesia's 
approval.  
This provision is not limit market access for foreigners to have shared maximum 99% in 
banking. However, each foreigner has to comply with the maximum share limit 
prescribed on Bank Indonesia Regulation. Th e diverse category on the bank's share is 
aim to reduce the adverse effect of bank  operation as the result of shareholder 
domination and to improve the bank governance and the implementation of the 
prudential aspect as well.   
The discussion of Banking Law amendment is still on process in the Parliament. 
Proposed amendments of the Banking law are an  initiative from the Parliament and still 
on drafting process. Thus, there has been no draft legislation defined as Bill of Act.  
In principle, one of the intentions to cond uct amendment of Banking Law is in order to 
harmonize with the changes of the laws , national and international economic 
development that influences the banking system. 
4.7.3. Telecommunications services 
4.7.2.1. Investment in the telecoms industry 
Page 88, paragraph 4.71 (s ee also page 89, table 4.5) 
Indonesia maintains a number of investment restrictions with regards to its telecommunication 
sector which has been limited for foreign ownership, especially telecom towers, whereas other 
related sectors (networks) have a local content requirement of 40%.  
Question:  
In view of Indonesia's need  to develop infrastructure as noted by the Secretariat report, the EU is 
interested to know if Indonesia would be ready to consider relaxing certain local content and foreign ownership limitations (Regulation 7/2009 prescribing 30-50% local content requirements 
and 19/2009 restricting telecom towers from foreign investors)?  
Response: 
Please see document G/TRIMS/W/96. Indonesia believes that this provision is in fact 
not a restriction to investment. All the bidding  processes are transparent and open to all 
operators without discrimination. Further, the fund used to finance the project(s) comes 
from the government, which according to In donesia's national regulation, therefore 
considered as government procurement.    
WT/TPR/G/278  
2. ECONOMIC AND TRADE ENVIRONMENT 
2.2. Financial sector Page 6, paragraph 2.12 
Question: 
How does Indonesia intend to amend its fuel su bsidies (amounting to over US$ 5 billion in 2012) 
to bring it in line with the government stated objectives, especially with regards to improvement of 
education and healthcare?  
Response: 
Answer will be provided later WT/TPR/M/278/Add.1 
 
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  2.3 Trade and investment 
Page 8, paragraph 2.22 
The Report refers to Indonesia's jump in the Global Competitive Report to position 44 in 2011. In 
2012, Indonesia dropped to no. 50 on the Competitiveness Index.  
Question:  What measures does Indonesia foresee to counter this trend and to improve its competitiveness? 
Response: 
Inefficient government bureaucracy, corruption, and inadequate supply of 
infrastructures, as stated in the Global Co mpetitive Report, remain the major problems 
that hampering investment in Indonesia. However some actions has been taken to 
simplify the bureaucracy and mi nimize corruption in the governance practices such as 
empowering Corruption Eradicate Committee, es tablishing one stop services (OSS) for 
facilitating the process of business permit in Indonesia, and removi ng local government 
regulations which hampering investment climate.   In order to meet the need of infrastructure , the government of Indonesia invites private 
sectors to participate in developing some infr astructures projects through Public Private 
Partnership/PPP financing scheme. To support PPP mechanism, the government has 
opened-up some infrastructure projects  whic h were previously owned and controlled by 
the government such as Oil and Gas se ctor (Law No. 22/2001), Shipping (Law 
No. 17/2009), Aviation (Law No. 1/2009), and Train (Law No. 23/2007).    
Page 8, paragraph 2.24 
The government states that reform of the economic and fiscal policy is carried out to facilitate 
green growth. 
Question:  
Would Indonesia consider adopting measures to facilitate investments in this important area?  
Response: 
 
Answer will be provided later 
4.3. Sectoral policies 
4.3.1. Agriculture 
Page 13, paragraph 4.13 
The Report sets out that Indonesia intends to improve the quality and competitiveness (value 
added) of Agricultural Product in the international market through Good Agricultural Practices, 
Good Handling Practices, Standard Operating Procedures and certification. 
Question: 
Could Indonesia elaborate in detail on the steps that have been taken to improve the quality and 
competitiveness in the agricultural sector?  
Response: 
Answer will be provided later. 
 WT/TPR/M/278/Add.1 
 
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  HONG KONG, CHINA 
Questions regarding the Secretariat Report 
Pages 85 - 86 (paragraphs 4.52 - 4.54) 
Financial Services 
Question: 
 
The financial services authority (Otoritas Jasa Keuangan, OJK), which was established in 2011, is intended to become the sole regulatory agency for all financial services institutions (banks, 
securities companies, insurance companies, pens ion funds, and multi-finance companies). This 
authority will take over the functions, duties an d authority in regulation and supervision of the 
financial service sector from Bank Indonesia (BI) and the Capital Market and Financial Institution 
Supervisory Agency (Bapepam-LK). A transition pe riod has been established to facilitate the 
process of OJK assuming its new roles. When the OJK takes over, BI will continue to set banking policies and conduct special investigations on banks.  
We are interested to know the division of labour  and relationship between BI and OJK after OJK's 
taking over the responsibility on supervising and regulating the banking sector.  Will the Bapepam-
LK be abolished?  Are the operations in the indu stry affected by the transition?  If so, has the 
industry been well informed of the transition arra ngement?  What is the "special investigation on 
banks" mentioned in the Secretariat's report? 
Response: 
According to Article 55 paragraph 1 of Law No. 21 of 2011, as of 31 December 2012, the 
function, duty, authority and supervision over   financial services re capital markets, 
insurance, pension funds, financing inst itutions, and other non-bank financial 
institutions will be handed over from Minist ry of Finance, Capital Market and Financial 
Institution Supervisory Agency  (Bapepam-LK) to OJK. According to this regulation, 
Bapepam LK will no longer have the function , duty, authority and supervision over the 
non-bank financial institutions.  
Furthermore, in article 55 paragraphs 2 of  Law No. 21 of 2011, as of December 2013, 
the function of the bank's regulation and su pervision shall be handed over from BI to 
OJK. This transfer of powers, will not nega tively impact the industries, especially the 
banking industry, since, as mentioned before , there will be a transition period, which 
allows some existing employees of BI and Bapepam LK to be assigned to work in OJK. Besides that, the existing laws and regulati ons regarding banking continue to apply until 
new laws and regulations are enacted. 
The OJK and Bank Indonesia have arranged many events throughout the country to 
inform stakeholders about their new functi ons, duties, and powers in supervising 
financial institutions. OJK has also informed st akeholders with regard to the institutional 
changes affecting it including the transi tion mechanism, by using various media, 
including print and television. The aim of thes e events is to inform industry and general 
public regarding its existence.   
The terms of "special investigations" on th e Secretariat Report (point 4.54) refer to 
article 40 of Law No. 21 of 2011. Pursuant to this article, in conducting the function, 
duty, and authority of the macro prudenti al supervision, Bank Indonesia has the 
authority to do on-site examination to certain banks with prior written notification to 
O J K .  B a n k  I n d o n e s i a  i s  a b l e  t o  c a r r y  o u t on-site inspection at banks listed as 
systemically important banks and/ or other banks for the purposes WT/TPR/M/278/Add.1 
 
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  Page 90 (paragraph 4.79) 
Telecommunications Services 
Question: 
Under its Universal Service Obligation Programme, the Indonesian Government plans to supply 
telephone and internet service to more than 38 ,000 rural villages around the country between 
2010 and 2015.    
Please share with us the scope and details of the Programme, the latest progress, and its 
implementation schedule.  Will the private sector be invited to participate in the Programme?  If so, what are the criteria to select private companies to participate in the Programme? 
Response: 
As an archipelago country with 33 province s scattered across many islands, Indonesia 
has both challenges and opportunities in prov iding services to all of its people. Yet, 
telecommunication services will be one of go vernment's obligations in providing such 
services to all areas, included rural villages. 
Having said that universal services obligat ions are one of the government's primary 
program in which the fund is sourced from  government budget, thus any activities 
related to this program will be on the basis of government procurement. The 
participations of private sector in this  program will be regulated by domestic 
government procurement regulations.  
In fulfilling its universal services obligatio ns, Indonesia has a program known as "Desa 
Berdering", which aims to provide telecommuni cation services to rural villages. This  
program has been successful in reaching nearly 90% of villages in Indonesia.  
Page 92 (paragraphs 4.90 & 4.92) 
Maritime Transport 
Question: In order to prevent or lessen the dependence of the national economy on foreign shipping 
companies and foreign-flagged vessels, Indonesia's 2008 shipping law requires all vessels 
operating in Indonesian waters to be flagged domestically and manned by Indonesian crews by 
May 2011.   
Is there any plan to review the law, especially on its effectiveness? 
Response: 
At this moment, there are no concrete and spefic plans to rewiew the Law. This law was 
only recently implemented and there are no  plans to change it at the moment.  
Questions regarding the Government Report 
Nil from Hong Kong, China. 
INDIA 
Part I : QUESTIONS REGARDING THE SECRETARIAT REPORT  
Page 84 (paragraph 4.45) According to the Indonesian Economic Development Acceleration and Expansion Master Plan 
2011-2025, the tourism sector is to be expanded mostly to the Bali-Nusa Tenggara Region through 
development of the necessary infrastructure in te rms of transport facilities and electricity. The 
information technology sector is to be developed mostly in all regions outside Java Island to create 
connectivity within all regions in Indonesia. WT/TPR/M/278/Add.1 
 
- 94 - 
 
  Question:  
Indonesia is requested to provide the details  of the Indonesian Economic Development 
Acceleration and Expansion Master Plan 2011-2025 and what are the facilities and incentives for 
tourism services providers under this plan? Indonesia is also requested to clarify whether such 
facilities and incentives are available only to the domestic service providers or to all including foreign service providers?  
Response: 
Tourism is one of the three main activities  which are developed in Bali-Nusa Tenggara 
Economic Corridor. Tourism in this corridor has a very good prospect with Bali as a 
tourism development centre supported by th e culture and natural resources from NTB 
and NTT. In order to support the developmen t of tourism, the following regulatory and 
policy support will be implemented: 
 Simplify and broaden issuing of Entry Visa, Visa On Arrival and Visa On Board for 
foreign tourists and a visa extension for foreign yachters; 
 Prepare a development standard for cruise te rminals and marinas as port of en try; 
 Facilitate the implementation of CAIT (Clearance Approval for Indonesian 
Territory) for foreign yachters; 
 Reduce/eliminate the tempor ary import duties for foreign yachters entering 
Indonesian waters; 
 Review the spatial plan of Bali, NTB and NTT to support tourism development plan 
in Bali; 
 Prepare Standard Operating Procedure (SOP ) for the acceleration of permits and 
the provision of Integrated One-Stop Se rvice for all permits to develop tourism 
area. 
Moreover, Indonesia has also prepared a number  of infrastructure projects to support 
tourism development in Bali-Nusa Tenggara Economic Corridor, such as operation of 
railways in Bali to support tourism, constructi on of north ring by pass in Sumbawa Besar 
and access road to SAMOTA, etc. 
For tourism services provider, Indonesia does not sp ecially have the facilities and 
incentives to support it. However, Indonesia is open to tourism services provider both 
domestic and foreign. 
Page 88 (paragraph 4.70) 
Despite the termination of exclusive rights, th e Government does not prohibit or discourage 
operators from attaining a dominant position with regard to telecommunications services. 
However, it does prohibit operators from abusing a dominant position. MoC Decree No. 33/2004 
sets forth measures to prohibit the abuse of a dominant position by network and service providers. Specifically, the decree prohibits a dominant provider from engaging in practices such as dumping, 
predatory pricing, cross subsidies, compelling co nsumers to use that provider's services (to the 
exclusion of competitors), and hampering mandatory interconnection. 
Question: 
Could Indonesia provide the details of the mechan i s m  t o  e n s u r e  t h a t  d o m i n a n t  p o s i t i o n  i s  n o t  
abused by the network and service providers?  
Response: 
Based on our Competition Law, dominant posi tion does not against the law. Dominant 
position will be considered illegal if busine ss player uses that position to lead unfair WT/TPR/M/278/Add.1 
 
- 95 - 
 
  competition and to against monopolistic practices 
Page 93 (paragraph 4.96) 
With liberalization and an open-sky policy dating back to 1999, civil aviation in Indonesia, 
especially domestic travel, has increased rapidly, along with the number of air carriers. 
Question:  
Could Indonesia provide the details of its open sky policy and the countries with which it has 
signed open sky policy? 
Response: 
Indonesia's Central Statistic Bureau (BPS) re ported that Indonesian airline firms spent 
some 35.2 trillion rupiah (about 3. 6 billio n US dollars) to procure new planes 
throughout last year. 
Indonesia's flag carrier Garuda Indonesia spen t more than half of the total spending to 
procure 11 Airbus A330-300 and 18 Boeing planes with deliveries expected until 2015. 
Indonesia's largest low-cost airline firm, Lion  Air, signed a record-breaking contract to 
purchase 234 Airbus planes la st week worth 23.6 billion US dollars, which is the biggest 
single purchase contract in Airbus' history.  The delivery of those planes was scheduled 
from 2015 to 2026. 
Earlier in 2011, Lion Air signed another ma jor purchase contract worth 21.7 billion US 
dollars to buy a total of 230 Boeing 737 planes. 
Besides the two largest airline firms in thei r respective classes, some other Indonesian 
airline firms also procured passenger jet planes from Russia and Canada. Meanwhile, 
propeller planes have also been massively ordered by smaller airline firms operating 
flights to remote destinations in th e country's far- flung eastern region.  
Page 94 (paragraph 4.101) 
The legal profession in Indonesia is regulated by the Ministry of Law and Human Rights. Only 
Indonesian citizens may practice as lawyers. Foreign lawyers may only work in Indonesia as "legal 
consultants" and must first obtain the approval of the Ministry of Law and Human Rights. 
Question: Could Indonesia provide details about the criteria for obtaining the approval of the Ministry of Law 
and Human Rights? Indonesia is also requested to inform if any revalidation of foreign qualification 
is required for Foreign lawyers to work in Indonesia as "legal consultants"? 
Response: 
The criteria for obtaining the approval of the Ministry of Law and Human Rights, as 
follows: 
 Submit copies of foreign legal qualificatio ns and current practi cing certificate to 
Perhimpunan Advokat Indonesia (PERADI); 
 If the lawyer is recommended from PERADI  and approved by the Ministry of Law 
and Human Right then apply for work perm it from the Ministry of Manpower and 
obtain temporary stay visa fr om the imigration office; and 
 A foreign lawyer is obliged to transf er legal knowledge and professional 
capabilities to Indonesia lawyers and pr ovide free legal services to education, 
legal research, and government institut ions (Decree of Ministry of Law and 
Human Right No. M11-HT.04.02 of 2004 concerning The Requirements and 
Procedures of Employing Foreign Lawyer s and the Obligation of Contributing WT/TPR/M/278/Add.1 
 
- 96 - 
 
  Free). 
Page 70 (paragraph 3.136) 
Article 17 of the Patent Law of Indonesia requires that an inventor, on being granted a patent 
should physically produce a product or utilize a process in Indonesia. 
Question:  
Indonesia is requested to elaborate whether importing a product and marketing the same in 
Indonesia will not be covered under the provisions of Article 17.  Further, it may be also explained 
whether failure follow the provisions of the said Article 17 on part of the patentee results in any 
action and if so, what is the nature and scope of such action. 
Response: 
The reason behind the provision of Articl e 17 of the Patent Law is for ensuring 
technological transfer from patent holder to Indonesia. There is no direct sanction; 
however, the consequence for not implementing  or using the Patent in Indonesia is the 
possibility for other parties to request a Comp ulsory License. This can be applied if the 
respective patent is not implemented in In donesia for 3 consecutive years after it is 
granted. 
Page 91 (paragraph 4.84) 
It has been stated that new institutional arrangem ents are being designed which will form part of 
the Railway Master Plan of Indonesia. It has also been clarified that the law allows private sector 
participation in Railway Services for special purpose railways. 
Question:  
Indonesia may kindly elaborate whether foreign participation in provisions of Railway Services is 
being contemplated as part of the Railway Master Plan and by which time the Railway Master Plan 
can be expected 
Response: 
Answer will be provided later. 
Page 7 (paragraph 4) 
The Indonesian " authorities consider that domestic industrial policy considerations, aimed, inter 
alia, at developing local industries and moving up the value chain, should be balanced with 
maintaining an open foreign trade and investment regime in order to ensure that Indonesia's 
external commitments continue to be fully respected."  
Question:  
Could Indonesia provide us the details of the manner in which it aims to strike this delicate balance 
between the contradictory objectives of more domestic protection and more open trade? 
Response: 
Answer will be provided later. 
Page 8 (paragraph 8)  
Import procedures in Indonesia tend to be complic ated by registration requirements, port of entry 
restrictions for several products, and extensive pre-shipment inspection and import licensing requirements.  
Question: 
Does Indonesia propose to simplify these import procedures in the near future? WT/TPR/M/278/Add.1 
 
- 97 - 
 
  Response: 
What Indonesia does is to manage import  due to the reason of health, safety, 
environment and consumer protection. However, it does not mean that Indonesia is rigid 
on the existing regulation. We are still on th e process of reviewing and analyzing of that 
regulation. 
Page 8 (paragraph 11) & Page 45 (paragraph 3.39) 
Around 20% of Indonesia's tariff lines are subjected to import licensing requirements, which have 
expanded since Indonesia's previous review. In other words, around 2,060 tariff lines, representing nearly one- fifth of Indonesia's tariffs  are subject to import licensing. It seems that 
the level of protection provided through import licensing is very high. 
Question: Does Indonesia have any immediate plans to reduce the number of tariff lines requiring import 
licenses?  
Response: 
Refer to the response on question 8. 
Page 9 (paragraph 14) & page 61 (Heading 3.3.1)   
Indonesia became an observer to the WTO Government Procurement Agreement (GPA) in 2012. It 
is also mentioned in paragraph 3.105 that Indone sia does not have a procurement law, but only a 
Presidential regulation.  
Question: 
India would want to know whether the present domestic government procurement framework in 
Indonesia is in line with the regulations laid do wn in the GPA of the WTO. If not, are there any 
future plans for making its government procurement rules GPA compliant?  
Response: 
Indonesia is not the member of Governme nt Procurement Agreement. For the time 
being, Indonesia is the observer on GPA and still learns on the system of GPA. 
Page 10 (paragraph 21) 
It is reported that in 2011, Indonesia banned exports of raw and semi processed rattan (used for 
traditional furniture). The measure was designed to encourage rattan furniture production but 
instead seems to be pushing rattan prices down.  
Question: 
Is Indonesia taking up any measures to prevent the falling rattan prices or even contemplating 
removing the export ban?  
Response: 
The rationale of the said is environmental consideration and added value. Review and 
amendment of that policy is based on  environmental consideration as well. 
Page 22 (paragraph 2.8) 
Indonesia's notifications in the areas of agricult ure (domestic support, export subsidies, special 
safeguards and tariff quotas); import licensing; notification procedures for quantitative restriction; state trading enterprises; and subsidies and countervailing measures are still outstanding. 
Indonesia has not notified any new, or any changes to existing laws, regulations or administrative 
guidelines, which significantly affect trade in services that Indonesia is obliged to notify under Article III.3 of the GATS.  WT/TPR/M/278/Add.1 
 
- 98 - 
 
  Question: 
Could Indonesia provide details about its plans to fulfil its WTO notifications obligation in the 
future? 
Response: 
Policies related to trade are formulated and promulgated in several ministries and there 
are several notification centres as well. Most  of regulations were notified but a few of 
regulation were late to be notified. With prop er technical assistance , notification process 
will be done better. 
Page 31 (paragraph 2.36) 
The Secretariat Report talks about concerns on security and corruption in Indonesia, despite 
reforms undertaken. Specific mention is made about the bills to amend the Anti-Graft Act and the KPK Act. Further, there is also a mention of 'a lack of transparency in the legal system'.  
Question: 
Would Indonesia provide details about the current developments towards amending the Anti-Graft 
and KPK Acts and measures, if any, to improve the transparency of its legal system? 
Response: 
The Anti-Graft and KPK Act is implemented we ll by an independent body doing its job on 
the right track. Although the amendment is one of our priorities, it can be done later.  
Page 32 (paragraphs 3.4-3.6) 
Indonesian authorities issue two types of import registration numbers to its importers- a General 
API (API-U) and a Producer API (API-P), and each importer may obtain only one type of API.  
Question: Would this imply that a producer importer will not be able to import any goods for trading 
purposes? Further, are there any regulations for th e registration of exporters, as well, in the 
country?   
Response: 
Yes, a producer importer is able to import goods that will be used for their own process 
of production.  
Page 34 (paragraph 3.13) 
As per the Report, Indonesia uses the transaction value as the basis for custom valuation. Further, 
no information is available about any other methods of custom valuation. 
Question:  
Could Indonesia provide details of the various other custom valuation methods used by it? Response: 
Indonesia custom office uses customs valu e database as a basis reference whether a 
transaction value provided by the importer is reasonable or not.   
Page 52 (paragraph 3.61) 
With regard to labelling requirements, it seems th at Indonesia stipulates that importers need to 
obtain a certification of labelling in the Indonesian language from the Ministry of Trade. This requirement seems quite burdensome. 
Question: 
Is Indonesia planning to introduce measures to simplify this labelling requirement? WT/TPR/M/278/Add.1 
 
- 99 - 
 
  Response: 
Labelling requirement is used to implement consumer protection policy because there 
are still many facts proofing that import ed goods are sold without any sufficient 
information on their package. 
Page 55 (Table 3.12) The Secretariat Report suggests that Indonesia ha s imposed an export prohibition on raw rubber 
without any rationale being provided for such a drastic measure.   
Question: Can Indonesia provide the objectives of this measure, simultaneously justifying the same under 
the provisions of the WTO? 
Response: 
Answer will be provided later. 
Page 55 (paragraph 3.78) 
Government of Indonesia, as per its Ministeria l Regulation No. 34 of 2009 will prohibit mining 
companies from exporting mineral ore products (currently subject to export licensing and taxes) as 
of 2014, when they will be required to undertake refining activities onshore. 
Question: 
Is such an outright ban on export of minera l ore products WTO compliant?  India requests 
Indonesia to provide rationale for this export prohibition. 
Response: 
The rationale of the said is environmental consideration and added value. Review and 
amendment of that policy is based on  environmental consideration as well. 
Page 64 (paragraph 3.114) 
Question: 
This paragraph provides details about state trading in Indonesia, particularly about rice. Does 
import of wheat also involve state trading or state owned enterprises? If so, more details on this be 
provided. 
Response: 
As a state trading enterprise, Perum BULOG does not involve in the import of wheat. For 
the time being, it only involves in managing  the buffer stock of rice which is met through 
buying from domestic production and importation.  
Page 80 (paragraph 4.28) & page 81 (paragraph 4.31) 
Indonesia happens to have brought out a new mining legislation whereby mining firms operating in 
Indonesia will face new restrictions in exporting unprocessed ore. Moreover, by another recent 
policy measure, exports of 65 mining commodities in cluding nickel, tin, gold, copper, silver, lead, 
zinc, chromium, platinum, bauxite, iron ore,  and manganese are being regulated. These 
commodities are not only subject to a 20% export duty, the exporters have to comply with the 
stipulated registration and verification procedures.   
Question: India would request Indonesia to clarify whether the 65 mining commodities includes coal also?  In 
addition, are the above measures in compliance of the WTO Agreements? 
 WT/TPR/M/278/Add.1 
 
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  Response: 
Answer will be provided later. 
Page 90 (paragraph 4.80) 
Of the various details about the development of va rious modes of transportation, there has been a 
mention about private operators being encouraged to participate in transport infrastructure development.  
Question: 
Has Indonesia experimented with public private partnership (PPP) model in different modes of 
transport infrastructure development? If so, would Indonesia permit the participation of foreign 
private developers in this sector now or in the near future? 
Response: 
For the time being, PPP involves domestic/local partners only 
Page 80 (paragraphs 4.26-4.30) 
Question: 
a. What is the demand scenario of low calorific value coal within Indonesia in the next five 
years? Has the Indonesian Government done any study on this? 
b. What are the reasons behind Domestic Market Obligation (DMO) requirement on the part of 
coal mining companies in Indonesia to sell 26% of their production domestically when there 
is very limited demand, especially for low calorific value coal?  
c. Is there any proposal to ban export of low calorific value coal? 
d. What are the possibilities of implementation of  the regulation regarding processing of coal 
within Indonesia before export wh en no viable technology exists? 
e. The Indonesian Government recently issued Government Regulation No. 24/2012 (amending 
Government Regulation No. 23/2010) on the Im plementation of Minerals and Coal Mining 
Activities.  The significant change brought abou t by the new regulation is a requirement for 
foreign investors in the Indonesian mining sector to divest a minimum of 51% of the equity 
in the mining license holding entity by the tenth year of production, in accordance with a 
divestment schedule. The 2009 Mining Law required a divestment after five years of production, but did not specify the required am ount of divestment. Retrospective application 
of the law is detrimental to the companies who have made substantial investment in the 
sector. Does Indonesian government propose to repeal or modify the new regulation? 
Response: 
In formulating the law, we consider any aspects such as environmental issues, added 
value, jobs for young generation, and downst ream industry. The hierarchy of regulation 
in Indonesia may place norms in more detailed regulations. 
Page 47 (paragraph 3.50) Question: 
a. What are Indonesia's plans with regard to increase of production of HRC? 
b. Until the situation improves, what steps Indonesia has taken or proposes to take to ease it? 
c. Since the production over the last 15 years ha s not improved in relation to demand, why 
Indonesia has not allowed free imports to help its downstream industry rather than imposing 
anti-dumping duty resulting in higher cost? 
 WT/TPR/M/278/Add.1 
 
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  Response: 
Answer will be provided later . 
Part II: Other Questions  
The Indonesian Government issued a Ministerial Decree No. 91/2011 which implies that only those 
mine owners can undertake such projects that have a majority shareholding in the mining company.  
Question: 
a. What is the policy with regard to in vestment in mining infrastructure?  
b. Is there any proposal to relax this policy to hasten the development projects requiring huge 
investments in the mining infrastructure space? 
Response: 
Answer will be provided later. 
The main regulatory authority in Indonesia is NADFC (National Agency of Drug and Food 
Control)/BPOM (Badan Pengawas Obat dan Makanan). BPOM claims to be working towards accelerating the drug approval process and impr oving transparency. However, registering drugs 
remains a lengthy and complicated process in Indonesia, with delays ranging from one to three 
years.  
One of the most serious barriers to foreign drug makers is the negative investment list, which was 
implemented in 2007. Under these regulations the amount of equity allowed by foreign companies investing in the Indonesian drug market is cappe d at 75%. In addition, foreign companies are not 
allowed to participate in the drug distribution sector. 
Indonesian government requires local manufacturing  of generics. Hence, imports of generics into 
Indonesia are discouraged. Approval times are long for generics – ranging from 16 to 24 months. 
With regard to Formulations, the Indonesian Mi nistry of health has enacted a decree No.1010 in 
2009 barring import of finished dosage forms of ph armaceuticals (Formulations) to encourage local 
formulation (Generic) manufacturers. The foreign pharmaceutical companies need to set up local 
manufacturing facility to operate in this space. 
Question: What steps Indonesia is taking towards bringing transparency in the drug registration process and 
reducing the time taken for approval of generics? 
Response: 
Indonesia has developed e-registration system  and updating tracking system in purpose 
for the transparency, efficiency , effectiveness, fast and easi est drug registration process.  
What plans Indonesia has to provide cheaper medical care to its citizens as the demand for 
pharmaceutical products will rise with the introduc tion of national social security system in 2014? 
Response: 
BPOM is working in close collaboration with  the Ministry of Health and Pharmaceutical 
Manufacturer Association to ensure the Ava ilability, Accessibility and Affordability of 
drugs needed and to ensure qualit y, safety and efficacy are met. 
Is Indonesia considering allowing 100% foreign ownership in the pharmaceutical sector in order to 
attract foreign investment, raise volume and quality? 
Response: 
The revision of Presidential Decree No. 36/ 2010 on the amount of equity allowed by WT/TPR/M/278/Add.1 
 
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  foreign companies investing in the Indonesi an drug market to become 100% is in 
consideration. 
A deregulation package in 1998 opened banking, securities and insurance to foreign investment. It 
amended the Banking Law to allow foreign ownership of banks up to 99%. This made it possible for 
the Indonesian Bank Restructuring Agency set up in 1998 to sell off local banks that it had in effect nationalised to save from collapse during the financial crisis. Banks with foreign majority stake are 
allowed to designate foreigners as members of the board of directors and commissioners with at 
least one Indonesian member. 
According to a Regulation issued in 2006, no entity can have a controlling share in more than one 
bank and the banks had to comply with this regulation through mergers, restructuring or 
divestment.  
Although foreign banks may open branches in Indonesia, the Government extends this privilege 
only to the world's 200 largest banks in terms of assets and only if they have a minimum credit 
rating of A from S&P or Moody's. The Central Bank  (BI) has recently also introduced a new rule 
under which banks will be required to open new branches under a system that divides Indonesia 
into six different zones based on population density. Reflecting the Government's increasingly 
protectionist attitude, BI has also indicated that it will soon introduce a regulation by which it can 
deny the expansion plans of foreign banks if su ch plans interfere with national interests.  
A new draft Banking Bill is under discussion to replace the 1998 Banking Law, requiring all foreign 
banks to become legal entities (PT. company). The investors fear that if foreign banks are forced to 
become PT. their credit profile would be degraded in adjustment to the risk rating of Indonesia. 
This would drive up the banks' foreign exchange funding costs and make credit more expensive. As branches, banks can borrow US dollars from their headquarters without being charged risk 
premium. The draft Banking Bill also plans to revise a clause in the 1998 Banking Law that allowed 
foreign investors to control up to 99% stake in a bank, to between 40 to 49%. 
Question: 
While there is likely to be increasing need for cheaper credit in view of several infrastructure 
projects, how will the proposed amendments regard ing 'ownership' and 'legal entity' impact these 
plans? 
Response: 
Regarding India's statement concerning Bank ing Bill Act pertaining  to require foreign 
bank to become legal entities (PT company) pl ease refers to Indonesia's response on the 
question from EU regarding Amendment of Banking Law. 
With non-availability of the required human resources, what reasons can be attributed to the denial 
of reasonable and justifiable foreign staff needs of foreign banks? Are foreign banks not permitted 
to depute CEOs for their Indonesian subsidiary banks? 
Responds: 
For the banking industry, based on the Bank  Indonesia Regulation, the bank owned by 
the foreigner with the share minimum of 25 % or more can utilize foreign employee with 
consider to the availability of domestic employee. The foreign employee may hold the 
position of Director, Commissioner and/or executive officer and total number for each 
position cannot be more than 50% from BOD,  BOC and all executive officer in the bank. 
The bank should assign domestic employee to  fulfil the position of human resources and 
compliance. However, bank should comply as well with other laws and regulation 
including the employment act that stipulates  the requirement to have written approval 
from the Minister of labour affairs (t he Minister) or appointed official.  
Having large operations in its home country, a foreign bank in Indonesia is not permitted to 
consolidating and upgrading its banking technology by joining its principal global processing hub. WT/TPR/M/278/Add.1 
 
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  What are the reasons for such denial of benefits of technology as the banks due to the size of their 
operations do not find it worthwhile to invest in an independent data centre? 
Response: 
Bank Indonesia Regulation No. 9/15/PBI/20 07 concerning The Implementation of the 
Risk Management in using Information Tec hnology by Commercial Bank regulates that: 
i) Data Centre and/or Disaster Recovery Centre should be built in the area of Republic of 
Indonesia, ii) the Bank shall obtain prior appr oval from Bank Indonesia and comply with 
the requirements as prescribed in this provis ion, if the Bank wants to build Data Centre 
and/or Disaster Recovery Centre outside In donesia, and iii) the process of information 
technology transaction outside Indonesia by the foreign services provider should be 
conducted prior to Bank Indonesia's approval  and comply with the requirements, inter 
alia the data processing is not defined as inherence banking activities. Bank Indonesia's 
approval shall consider the confidentiality in formation principles in terms of customer 
information protection and/or bank secrecy implementation.  
In addition to, bank shall also comply wi th other laws and government regulations 
including the laws and regulations on info rmation and electronic transaction.   
The Indonesian Government has merged two HS codes (at 10 digit level) under AIFTA related to 
import of motorcycles parts; one was for below 250 cc and one above at 4.5% and 12% 
respectively. With the merger the duty for the below 250 cc has increased from 4.5% to 11%.  In 
2012, (i.e. after 5 years from 2007) the Indonesian Ministry of Finance combined HS Code 
8714.19.00.38 and HS code 8714.19.00.90 under one heading 8714.10.90 while releasing tariff for 
the year 2012. HS Code 8714.19.00.00.38 is applicable for parts of motorcycles up to 250cc and 8714.19.00.90 is for parts of motorcycles exceeding 250cc. The combined HS code is split into 
6 sub headings namely 8714.10.90.10, 20, 30, 40, 50 and 90. 
Under the AIFTA the tariff rate issued in 2010 for 3 years until 2012 was 4.5% for 8714.19.00.38 
for import of parts of motorcycles below 250cc and 12% for 8714.19.00.90 for import of parts of 
motorcycles exceeding 250cc. 
In 2013 when new tariff rates under AIFTA were released until 2018, Indonesia have taken 
reference to 8714.19.00.90 base rate and reduced it from 12 to 11% resulting in about 150% 
increase of tariff for below 250cc motorcycle parts from existing rate for 8714.19.00.38 of 4.5%. 
However, the tariff for motorcycle parts under th e same new combined HS Code from Korea and 
Japan is 0% and from China 5%.  
Question: What is the reason behind the merger of HS codes (at 10 digit level) related to import of 
motorcycles parts under AIFTA? Did Indonesia study the impact of merger of these HS Codes? 
Response: 
Answer will be provided later. 
 
JAPAN 
Secretariat Report 
2 TRADE POLICY REGIMES: FRAMEWORK AND OBJECTIVES 2.4 Foreign investment regime 
2.4.2 Negative list 
(Question1: Pages 26-29, Pa ragraph 2.29, Table 2.3) 
 
Regarding Articles 6 to 11of the Department of Health ordinance No. 1010/MENKES/PER/XI/2008,  WT/TPR/M/278/Add.1 
 
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  1. When a pharmaceutical company gets approval to manufacture new medicines for medical 
supplies, is the pharmaceutical company reques ted to produce them within Indonesia or to 
transfer its technology to a local enterprise in Indonesia? 
2. Please clarify the scope of products that require local manufacture or technological transfer. 
3. Japan would like to know the scope of patented drugs (Article (3)) to be exempted from the 
technological transfer requirement and the conditions for the exemption. 
4. When a local company manufactures a patented medicine on technology transferred by a 
foreign company, does the foreign company have any responsibility to ensure the quality of the medicine? 
5. If the answer to the above question is yes, Ja pan would like to clarify the legal basis of the 
responsibility of the foreign company, and the process to file complaints against such measures. 
6. Japan would like to clarify the consistency between these articles and the obligation of 
national treatment stipulated in Article 3 of the GATT. 
Responses:  
1. and 2 As mentioned in the Minister of Health Decree 
No. 11010/MENKES/PER/XI/2008, imported drug products are those that 
especially intended for community's heal th program, new drugs and drug needed 
but cannot be manufactured domestically. According to article 10 paragraph (2), 
written approval (Letter of Authorization) from foreign to local manufacturer shall 
cover transfer of technology with the stipul ation that in no later than 5 years drugs 
should be manufactured domestically, ex cept for drugs that are still patent-
protected or originator drugs. 
3. Patent-protected imported drugs are import ed drugs under the protection of patent 
as stipulated in Indonesia under Laws No. 14/2001 on Patent. 
4. Yes 
5. Decree of Head of the NADFC No.HK.03.1. 23.10.11.08481 of 2011 on Criteria and 
Administration of Drug Registration, arti cle 11 paragraph (3) The licensor and the 
licensee responsible for ensuring drug qua lity, efficacy and safety, with the main 
responsibility in the licensor as  Marketing Authority holder. 
6. Consistent with Article 3 of the GATT becaus e in the internal sale, offering for sale, 
purchase, transportation and distribution  or use, all manufacturer are treated 
equally. 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures directly affecting imports 
3.1.1 Procedures 3.1.1.3 Pre-shipment inspection 
(Question2: pages 32-33, paragraph 3.8) 
In July 2009, the Government of Indonesia im plemented the obligation of pre-shipment 
inspections for steel products with a two-year lim it.  At the end of 2010, this obligation was 
extended for two years (until the end of 2012). Ad ditionally, in March 2012, this obligation was 
extended for three years (until the end of 2015). Ja pan would like to ask Indonesia to consider 
implementation and extension of this obligation. 
When the pre-shipment inspection requirement was revised in March 2012, the scope of products 
was replaced by HS 2012. This revision was made without an adequate verification of the change 
in HS code. As a result, the scope of products has been expanded without any specific notice. In WT/TPR/M/278/Add.1 
 
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  order to prevent problems, Japan would like to ask Indonesia to make prior notification and to give 
sufficient time for preparations in advance of the revision of regulations. 
Response:  
Recently, regulation on trade policy of Indo nesia does not enter into force at sudden. 
There is a certain periode of time for adju stment. However, Indonesia does appreciate 
for this concern. 
3.1.6 Contingency measures 
3.1.6.2 Safeguard measures (Question3: page 48, paragraph 3.51) 
Indonesia has imposed safeguard measures for various steel products since 2011. These include 
measures for wires (since March 23, 2011), steel wire products (since November 20, 2012), seamless pipes and tubes for oil and gas drilling (since January 20, 2012) and non-alloy 
aluminium/zinc coated steel sheets (since December 19, 2012).  Japan would like to know whether 
Indonesia has considered making anti-dumping investigations instead of taking safeguard 
measures in these cases. 
Response:  
Answer will be provided later 3.1.7 Standards and technical regulations 
3.1.7.1 Notifications and specific trade concerns 
(Question4: pages 51-52, paragraph 3.61) 
In Indonesia, mandatory standards have been implemented on a number of steel products since 
2009. 
In Japan, the safety of consumers is ensured by domestic safety laws and standards for finished 
products in every sector such as through the Building Standards Law and the Electrical Products 
Safety Law. Therefore, there is no mandatory standard for intermediate materials like steel 
products.  In the case of implementing mandatory standards, the standards would have to comply 
with Article 2.2 of the TBT agreement: "Technical regulation shall not be more trade-restrictive 
than necessary to fulfil a legitimate objective". We would appreciate it if Indonesia could provide us with your view on the necessity of mandatory standards for steel products, which are 
intermediate materials. 
Response:  
To Indonesia's view it is more practical to control the intermediate product rather than 
the finished product which could be distri buted throughout the country meaning more 
mandatory standards to be implemented. 
3.3 Measures affecting productions and trade 
3.3.5 Intellectual property rights 3.3.5.1 WTO and other internationa l agreements and arrangements 
(Question5: page 69, paragraph 3.130) 
Regarding Article 102 (1) of the Indonesia Patent Law, 1. Japan would like to know whether there is any opportunity for a patent holder to make an 
objection to a government decision as stipulated in Article 102 (1) of the Indonesia Patent 
Law. Can the patent holder bring the decision to court? 
2. If there is no such opportunity for a patent holder, Japan would like to know how the 
availability of independent review process for compulsory license cases stipulated in 
Article 31 (i) of the TRIPS Agreement is ensured in Indonesia. WT/TPR/M/278/Add.1 
 
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  Response:  
The patent holder can, if it does not ag ree with the amount of compensation, file 
objections in the form of a law suit before the Commercial Court. 
3.3.5.3 Legislative and institutional framework 
(Question6: page 70, paragraph 3.137) 
In the revision to the Industrial Design law, are there any key issues other than criteria on the 
similarity of design? Is Indonesia planning to introduce an invalidation trial system? 
Responses :  
Key issues included in the draft of Industrial Design Law, are as follows: 
 Extension of protection period.  The five years protection  can be extended twice 
(five years for each extension), so the to tal protection would be maximum for 15 
years 
 Possible establishment of unregistered design , protection without registration, and  
with 3 years protection. It is declaratif in nature since it is commercialised and 
meet  the novelty criterion. 
 Providing appeal commision system, wh ich included also invalidation system. 
 The Possibility of cross lisencing 
 
3.3.5.4 Regulatory developments (2007-12) 
(Question7: page 70, paragraph 3.139) 
Article 102 (1) of the Patent Law of Indonesia provides "the decision of the Government to 
implement a patent itself shall be final." Is the government's decision appealable? In other words, 
can the Court review the government's decision? If no court review is conducted, how can 
independent review by a distinct higher author ity on compulsory licenses, which are provided 
under Article 31(i) of the TRIPS Agreement, are guaranteed? 
Response: 
Please see response to question 5 
Please respond to the following questions on Presidential Decree No. 76/2012 as of 
12 September 2012: 
- Reasons why the same royalty rate (0.5%) was set for all the patent rights. 
- Reasons why licenses were uniformly granted for all the patent rights until the expiration of 
the patent terms. 
Response : 
The decision on the royalty rate and the du ration was made by a team that involves 
several related ministries/agencies i.e. Minist ry of Health, National Agency for Food and 
Drug Control, and Directorat e General of IPR by taking into account the social and 
economic aspects. 
- Reasons why the scope of the patent licenses was not limited. 
- Whether or not discussions with the patentees or prior notifications were conducted.   
Response : 
The Patentees were immediately informed afte r the issuance of the Presidential Decree. 
However, in the state of emergency as just ified by the TRIPS Agreement, the patentees 
may be notified as soon as reasonably practicable.  
Shall a notification to patentees prescribed in Article 101 (1) of the Patent Law of Indonesia be 
sent in advance when the government intends to implement compulsory licenses? WT/TPR/M/278/Add.1 
 
- 107 - 
 
  Response : 
Yes, that is indeed the proper procedure se t up by the Patent Law. Any inappropriate 
procedure conducted in the implementati on will be corrected in the future. 
Conditions for granting compulsory licenses and any notification of such granting; and the 
relationship between them and Article 31 (a)(b)(c)(h) of the TRIPS Agreement. 
Response: 
Government Use will only be issued where required as a matter of urgecny in the 
interest of national defence as well as on pu blic interest grounds. Written notification 
shall be presented to the right holder by setting forth: 
 
a. The designated patent with the number and the name of the patent holder 
b. Reasoning 
c. Period of implentation 
d. Other matters that are deemed significant  
3.3.5.6 Enforcement 
(Question8: page 72, paragraph 3.144) 
Do Indonesian Customs have a pre-registration system for trademark protection?  Is there any 
possibility that Indonesian Customs will introduce it in future? 
Response:  
Indonesia Custom does not have pre-registra tion system for trademark protection. The 
Possibility to introduce the system  in future will be considered. 
(Question9: page 72, paragraph 3.144) 
Under Japanese Customs, criminal complaints are lodged in malicious cases. Is this also true in 
Indonesia?   
Response:  
Indonesia so far does not have that kind of system 
Annually, how many cases are there of the Indonesian Customs lodging criminal complaints 
against IPR infringers? 
Response : 
None so far, the Supreme Court Decision was issued in July 2012 and we still need more 
time to disseminate this information to right holders. 
And, how many criminal complaints are lodged against IPR infringers in Indonesia in total 
(including non-Customs cases)? 
Response:  
Since 2011, there have been 72 complaints lo dged to Directorate General of IPR against 
IPR infringers 
(Question10: page 72, paragraph 3.144) According to the report written by the Secretariat, the Customs Law provides for border measures 
with respect to trademark and copyright violatio ns on imports and exports, and the Commercial 
Court may issue, upon the request of the right holder, a warrant to Customs to temporarily suspend the release of the import or export good s. Please explain the actual results of border 
suspension of import goods and export goods based on the warrants issued by the Commercial WT/TPR/M/278/Add.1 
 
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  Court upon the requests of right holders after th e Supreme Court issued the guideline/regulation 
concerning the order of temporary suspension of import or export goods and the 
guideline/regulation came into effect in July 2012. 
Response: 
Until now, no right holders use this Scheme 
(Question11: page 72, pa ragraphs 3.144-3.145) 
Do Indonesian Laws have provisions on IPR enfo rcement in Customs other than those referenced 
in this report? If not, does Indonesia plan to make such provisions for IPR enforcement? 
Response: 
No, we do not have provisions other th an those referenced in this report. 
4 TRADE POLICIES BY SECTOR 
4.4 Agriculture, fisheries, and forestry 
4.4.5 Forestry and forest products 
(Question12: page 78, paragraph 4.24) 
According to the Secretariat report, illegal logging and the smuggling of timber remain serious 
problems in Indonesia. 
Japan would like to ask Indonesia to elaborate the conditions of the illegal logging and smuggling 
of timber in Indonesia. 
Response: 
To reduce smuggling of timber in Indonesi a, we implement Custom Law, Forestry law 
and other related regulations on law enforcem ent. To assure that wood products are 
from legal wood, Indonesia requires the export  of timber products to be accompanied by 
V-Legal Document, assuring the legality of the products from the point of harvesting to 
transporting, trading and processing. 
(Question13: page 79, paragraph 4.25) According to the Secretariat report, Indonesia banned exports of raw and semi-processed rattan 
(used for traditional furniture) in 2011. The measure was designed to encourage rattan furniture 
production but instead seems to be pushing rattan prices down.    
1. Japan would like to ask Indonesia to elaborate how an export ban of row and semi-
processed rattan pushed down rattan prices? 
2. Japan would like to ask Indonesia to list all th e export prohibitions and restrictions on wood 
and wood products that are currently being implemented, including those introduced in 
2011? 
Response: 
1. The rationale of the said is environmental consideration and added value. Review 
and amendment of that policy is based on  environmental consideration as well. 
2. Prohibited and retricted exported wood and wood products are regulated in the 
Minister of Trade's decree No. 64 of the year 2012. List of those products are 
placed in the annexes of the said decree.  T h e r e  a r e  5 5  g r o u p s  o f   H S  t h a t  a r e  
clasified as prohibited or restricted export.  WT/TPR/M/278/Add.1 
 
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  REPUBLIC OF KOREA  
PART I: Questions Regarding the Secretariat Report 
I. Economic Environment 
Page 15 (paragraph 1.11)  
(……) Energy subsidies amounted to roughly 28.9% of central government spending in 2011; the 
fiscal resources put into them would be better utilized elsewhere.  
Question: 
Please indicate whether the proposal of Indonesian Government in 2011 to reduce fossil-fuel and 
electricity subsidies will proceed as planned, and if so, what concrete measures will be taken to address the strong resistance? 
Response: 
Answer will be provided later. 
III. Trade Policies and Practices by Measure 
Page 45 (paragraph 3.39) 
 
The authorities indicated that around 2,060 tariff lines are subject to import licensing. This 
represents around one-fifth of Indonesia's tari ff. The number of products subject to import 
licensing increased significantly over the review period, with new requirements being introduced 
on: horticultural products (2012); pearls (2012); animal and animal products (2011); used capital 
goods (2011); sodium tripolpyphospate (2011); fertilizer (2011) oil and gas (2009); nonhazardous and non-toxic waste (2009); LPG and LPG gas containers (2008); certain food, beverages, 
medicine, cosmetics, clothing and footwear (2008); electronic goods and children's toys (2008); 
and colour multifunctional machines and colour photocopying and printing machines (2007). 
Question: 
a. Could Indonesia indicates when it will notify the WTO of its licensing requirements which 
were introduced in 2007?  
b. Please indicate whether Indonesia has a plan to reduce the number of products subject to 
import licensing and, along the same lines, to streamline import procedures which seem to 
be made more complicated by registration requirements, pre-shipment inspection and 
licensing requirements. 
Response: 
Answer will be provided later. 
Page 59 (paragraph 3.82) 
With respect to export taxes on mineral ore products, an external source has noted that raising 
the tax to 50% in 2013 is being discussed, in orde r to discourage the front-loading of production 
before the export ban on unprocessed ores enters into effect in 2014 (see above).  
Question: Could Indonesia confirm whether it will increase the export taxes on mineral ore products to 50% 
in 2013?  
Response: 
Answer will be provided later. 
Page 60 (paragraph 3.94) 
As at end 2012, two special economic zones (SEZ) were being developed. The Government's 
objective is to have six in operation by 2014.  WT/TPR/M/278/Add.1 
 
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  Question: 
Please indicate whether the two SEZs that were being developed at the end of 2012 are operating. 
If so, please provide Indonesia's assessment with regard to the operation of SEZs which have 
already been opened? 
Response: 1. In 2012, Indonesia has established two Special Economic Zones (SEZs):  
2. Tanjung Lesung SEZ in Simalungun Re gency, North Sumatera Province. 
3. Sei Mangkei SEZ in Pandeglang Regency, Banten Province 
4. The legal bases of these SEZs establishment are the Government Regulation No. 26 
on year 2012; regarding Tanjung Lesung SEZ and The Government Regulation No. 
29 on 2012, regarding Sei Mangkei SEZ.  
5. After the establishment period: 
- The established SEZs are given time to be set up as a ready to operate SEZ for 
maximum three years.  
- During this period, there are obligatio ns for SEZ developer and government. 
a. The SEZ developer: 
 To build and develop infras tructure within the zone; 
 To prepare the zone regulation and personnel; 
 To prepare SEZ development annual report and SEZ readiness status 
to be evaluated. 
b. The Government 
 To build and develop infrastr ucture outside the zone;  
 Institution establishment (regional council secretariat for SEZ, SEZ 
Administrator); 
 To delegate central and local government authority into SEZ 
administrator;  
 To prepare fiscal and non-fiscal incentive regulation; 
 Evaluating the report submitted by SEZ developer. 
‐ The National Council for Special Economic Zone will assess the annual report 
prepared by the SEZ developer. As a result, the National Council for Special 
Economic Zone decides whether the estab lished SEZs are ready to operate. (The 
SEZ operation shall be started maximum three years after the establishment). 
Where does Indonesia plan to open further special economic zones, given Indonesia plans to have 
six by next year? 
Response: 
1. The SEZ development is focused to enhanc e local economic development, reduce 
unemployment, and eventually increase th e national income, particularly outside WT/TPR/M/278/Add.1 
 
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  Java Island and surrounding area. However, it is possible to establish an SEZ, 
which develops a high technology and low polluted industry, within Java Island. 
2. At the moment, the National Council of Sp ecial Economic Zone is focusing on 
monitoring and evaluation for the establis hed SEZs. Therefore, the experience and 
information regarding the current situatio ns faced by the established SEZs would 
be using for the next SEZ establishment re quirements that need to be completed 
by the applicants.   
Page 66 (Para 3.121) 
(……) The authorities also identified some shortcomings with respect to existing rules: the 
KPPU lacks the power to obtain evidence, which is particularly problematic for cartel-related cases; 
investigation time-frames are too short; penalties for bid-rigging (the bulk of the KPPU's work) are 
weak; and some legal provisions overlap and need to be rationalized.  
Question: Please confirm whether Indonesia plans to reform of its competition law.  If so, it would be 
appreciated it could elaborate on its future plan.  
Response: 
Indonesia's competition policy and law have been reviewed twice by UNCTAD and OECD, 
in 2009 and 2012 respectively. The reviews did raise serious concern about the current situation of the authority of the competitio n agency in obtaining evidences and the low 
fines which reduce the deterr ent effect to the enterprises. The potential problem may 
caused by (but not limited to) the compet ition law. A process for an amendment has 
been taking place at the Commission for mo re than three years. The draft has been 
submitted to the Parliament for further review. Some of the focuses of the amendment 
are related to the enhancement of the Commissi on's authority, institutional status, and 
the level of fines. In term of the Commission 's authority for example, the commission is 
trying to obtain greater authority in obta ining evidence such as wire tapping and 
confiscation of documents.  
MALAYSIA 
REPORT BY THE SECRETARIAT 
2.3.1 WTO participation 
2.7. Indonesia, an original member of the WTO,  grants at least MFN treatment to all trading 
partners. It is participant in the WTO Information Technology Agreement (ITA) and signatory to 
the GATS protocols on telecommunications (Fourth Protocol) and Financial Services (Fifth Protocol). It is not a signatory but has observer status to the WTO plurilateral agreements on Government Procurement (GPA) and on Trade in Civil Aircraft. (Page 21) 
Question:  
Based on the report published by the WTO, Indonesia has benefited from being a participant in the 
Information Technology Agreement (ITA) and was ranked no.17 of 30 leading exporters and no.19 
of 30 leading importers of ICT products in 2010. Appreciate if Indonesia could share with Malaysia 
its assessment of not becoming part of the current plurilateral initiative to expand the current ITA product coverage. 
Response: 
Considering the long-term prospect of ICT Industries in Indonesia, Indonesia's 
participation in ITA Expansion is cause for co ncern given the potential losses in terms of 
customs revenues and is not deemed to be as  important in terms of economic benefits WT/TPR/M/278/Add.1 
 
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  as was the case when the ITA Agreement was signed in 1997. 
Experiencing a slow growth in exports, Indonesia has become an importer of ICT 
products and even continues to import more every year. It is also compounded by the 
lack of new investment in ICT industries in Indonesia. 
This situation has led Indonesia's ICT in dustries not to grow and develop well. 
Meanwhile, the demand for ICT products an d services is significantly increased. 
Based on the aforementioned consideration and by taking into account the scopes of ITA 
Expansion (including ICT manufacturing equipment and related components, attachments and parts which are still in the stage of development), also the fact that 
Indonesia does not have a tariff instrument as a means of protection (0%) in the ICT 
sector, the GoI, having consultation with a ll ICT Industries Association in Indonesia, 
made decision not to participate in the ITA Expansion at this time. 
3.40. Various concerns have been raised by WTO Members regarding the complexity, lack of 
transparency, and trade-impairing effects of Indonesia's import licensing requirements, in 
particular with respect to horticultural products; animals and animal products; electronics; ready-
to-wear clothes; children's toys; footwear; and fo od and beverages. In addition, Members have 
requested Indonesia to notify to the WTO its licensing requirements on animal and animal 
products. In January 2013, the United States requested consultations with Indonesia on measures 
affecting imports of horticultural products and animals and animal products (Chapter 2). (Page 45) 
Question: 
Could Indonesia provide some clarification on how this issue will be handled in line with the 
commitments under the Import Licensing Agreement of the WTO?  
Response: 
Indonesia is at the stage of considering the review of the Minister Regulations 
concerned 
4 TRADE POLICIES BY SECTOR 
4.6.2 Trade-related measures 
4.42. Ministry of Trade Regulation No. 45/M- DAG/PER/9/2009 (as amended and clarified by 
Regulation No. 17/M-DAG/PER/3/2010) introduced a requirement that companies may only import 
goods for further distribution or for their own manufacturing, but not for both. Under these 
regulations, companies are permitted only one kind of licence; companies that need both kinds of 
licence need to separate into manufacturing and trading businesses. Effective 1 January 
2011,under Regulation No. 39/MDAG/ PER/10/2010, Indonesia introduced a new kind of importer licence, called a PI Licence, which permits companies to import certain finished products not used 
in the production process provided they help the development of the company' s business in 
Indonesia. A 2008 Health Ministry decree requires local and foreign pharmaceutical companies 
operating in Indonesia to manufacture locally in order to get drug approvals.14 
14Ministry of Health Decree No. 1010/MENKES/PER/XI/2008 requires foreign pharmaceutical companies to manufacture locally or entrust a company already registered as a manufacturer in Indonesia (a potential competitor) to obtain drug approvals for them.  
(Page 82) 
Question: Could Indonesia provide some clarification on the regulation on the requirement of pharmaceutical 
products to be registered and distributed by produc ers with local production facilities, which results 
in foreign exporters only being allowed access once they have established a manufacturing plant in 
Indonesia.   WT/TPR/M/278/Add.1 
 
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  Response: 
 According to the Minister of Health De cree No. 1010 Year 2008, a registration 
application for imported drugs can only be done by pharmaceutical industry located 
in Indonesia. It may be a local company or a multinational company; 
 Foreign manufacturers/exporters that plan to market their products in Indonesia but 
do not have manufacturing facilities in  Indonesia can appoint a pharmaceutical 
industry located in Indonesia (based on  a cooperation agreement) to apply to 
register their pharmaceutical products. Ther efore, they do not have to establish a 
manufacturing plant in Indonesia.  
 
NEW ZEALAND 
REPORT BY THE WTO SECRETARIAT (WT/TPR/S/278) 
SECTION II: TRADE AND INVE STMENT POLICY FRAMEWORK 
2.1 Administration of tr ade and investment policy 
WT/TPR/S/278, p. 20, paragraph 2.1; (WT/TPR/G/278, p. 5, paragraph 2.8) 
 
Section 2 of the Secretariat Report, page 20, paragraph 2.1 notes that trade and investment 
policy-making is the responsibility of the national government and is undertaken through a variety of institutions.  The Indonesian Government re port, page 5, paragraph 2.8 states that the 
government will amend or remove (debottlenecking) regulations that inhibit the implementation of 
investments.  While the government is legally required to offer the public the opportunity to provide input into the rule-making process orally or in writing, consultations are undertaken on an 
ad-hoc basis.  New Zealand encourages Indonesia to improve consultation and transparency 
around the issuance of trade regulations in or der to ensure the public and other relevant 
stakeholders have the opportunity to comment on regulations and the ability to prepare for their 
implementation. 
Questions: What further measures does Indonesia plan to  implement to ensure continued improvement 
around transparency and clarity for investors? 
 
Response: 
In view of investment policy transparency , the government runs many and various 
promotional event, awareness rising, inte rnational business, bilateral, regional, 
multilateral forums etc. We believe these means of communication are the way to a 
more open and transparent investment regi me. Stakeholders are invited to share and 
give inputs, possible solutions, and ma ke recommendation to the government. 
 
Can Indonesia provide further information on the process for amending and removing regulations that inhibit the implementation of investment? 
 
Response: 
The process of amending and removing regula tions is initiates on the basis of inputs 
from stakeholders and the government's regular review. Over time, a series of 
inter-ministerial will be arranged and will take places. 
 
2.2 Trade policy objectives WT/TPR/S/278, p. 23, paragraph 2.17;  page 31, paragraphs 2.35 – 2.36 
 
Section 2 of the Secretariat Report, page 23, paragraph 2.17 notes that Indonesia has seen an increase in exports to most of its FTA partners, except New Zealand.  New Zealand welcomes the WT/TPR/M/278/Add.1 
 
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  reforms set out on page 31, paragraph 2.35, particularly the enhanced climate for Foreign Direct 
Investment. However, the continued concerns around corruption are noted. 
What consideration has been given to establishing a trade promotion office in New Zealand in 
order to increase exports there? 
Response: 
Indonesia views New Zealand as an importan t trading partner that would potentially 
contribute to both countries economic performance.   
 SECTION III: TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures directly affecting imports 
WT/TPR/S/278, p. 32, paragraphs 3 and 4,  pp. 44-45, paragraphs 3.35-3.40, p. 53, 
paragraph 3.69 
 
Section 3 of the Secretariat report, page 32, and paragraph 3.7 notes point of entry restrictions.  New Zealand is concerned about quantitative rest rictions to imports (page 44, paragraph 3.36) 
and the import licensing requirements and quotasthat are in place to implement policies that aim 
to protect domestic production of animals, animal products and horticultural products (page 45, 
paragraphs 3.37-3.40).   
New Zealand notes that of the 26 notifications Indonesia has made to the WTO SPS Committee, 
seven were notified after the SPS measures had entered into force (page 53, paragraph 3.69).  
New Zealand shares the concerns of other WTO members around the complexity, lack of 
transparency and trade-impairing effects of Indonesia's import licensing requirements. There is a need for timely notification of these requirements to the WTO.   
Questions: 
How does Indonesia calculate and publicise its quantitative restrictions on horticultural products 
and animal products. In particular, import quotas applied to beef products since 2010 and import 
quotas on horticultural imports applied since January 2013: 
Can Indonesia please specifically set out where and how information on these quotas and their numerical limits is officially shared with trading partners and WTO Members?  
 
Response: 
 Answer will be provided later.  
Can Indonesia please also specify the laws and regulations pursuant to which these quotas on 
horticultural and animal products were set?  
Response: 
 
Answer will be provided later. 
 
What plans does Indonesia have in place to ensure  timely notification to the WTO of agriculture 
policies, import licensing requirements, and quotas in order to ensure a stable environment for 
both trading partners and consumers? 
 
Response: 
 
Answer will be provided later. 
 
Does Indonesia plan to put in place implementing  regulations for the Food Law? If so, how will 
traders be informed of these and their effects? WT/TPR/M/278/Add.1 
 
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  Response: 
 
Answer will be provided later. 
 
3.2 Measures directly affecting exports WT/TPR/S/278, p. 59, paragraph 3.88 
 
Section 3 of the Secretariat report, page 59, paragraph 3.88 and 3.90 note the use of bonded zones and stand-alone export-processing units (EPTEs) to deal with the re-export of products.  
Exporters have faced considerable issues with the re-export of their shipments from Indonesia to 
another market.   
What is the process for the re-export of agriculture commodities, specifically beef? 
 
Response: 
 
Answer will be provided later. 
 
WT/TPR/S/278, p. 34, paragraph 3.12 
Section 3 of the Secretariat report, page 34, paragraph 3.12 notes Indonesia's membership of the 
World Customs Organisation and its domestic laws and regulations around customs. 
What steps has Indonesia taken in regard to becoming a signatory to the major customs-related 
international conventions (the WCTO Revised Kyoto Convention and the Istanbul Convention on Temporary Admission)? 
Response: 
 
Answer will be provided later. 
 
WT/TPR/S/278, p. 61, paragraph 3.99 
Section 3 of the Secretariat report, page 61, paragraph 3.99 notes Indonesia has become an 
observer to the WTO Government Procurement Agreement.  New Zealand notes that Indonesia set 
out at their previous review to study GPA accession further. 
What further moves has Indonesia made towards acceding to the GPA? 
Response: 
Our intention is to become an observer of  WTO GPA and to thereby learn and understand 
the international best practices on gove rnment procurement among GPA contracting 
parties. Indonesia has to measure the read iness of our sectors/industries, before 
completing a signatory to the GPA.  
 
SECTION IV: TRADE POLICIES BY SECTOR 4.4 Agriculture, fisheries and forestry 
WT/TPR/S/278, pp. 75-77 paragraphs 4.11 – 4.18 
Trade Policy Instruments 
Section 4 of the Secretariat report, page 75, pa ragraph 4.11 notes the agricultural framework 
policy in the form of five year plans aimed at seeking a balance between supporting producers and 
ensuring affordable prices of essential food items. New Zealand notes, in particular, the references 
to food self-sufficiency the quantitative import restrictions in place for animals and animal 
products, and the quota systems in place for beef and horticultural products. However, Indonesia does not have tariff quota commitments for either beef or horticultural products in its WTO WT/TPR/M/278/Add.1 
 
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  schedules. Companies are required to apply to the Minister of Trade to become registered 
importers of these products.  
Page 77, paragraph 4.17 also notes that animal-based food must come with an import 
recommendation from the Ministry of Agriculture' s Directorate General of Livestock and Animal 
Health Service or the National Agency of Food and Drug Control (BPOM). There have been considerable delays in the issuing of import licenses for horticultural products and as at 22 March 
Horticulture Product Import Regulation (RIPHs) fo r very small volumes have been released  In 
addition, Indonesia has restricted points of entry for horticultural products. 
Question: 
Could Indonesia please explain how its food security policies are reconciled with high levels of 
behind the border protection in relation to horticulture and agriculture products?  
Response: 
 
Answer will be provided later. 
 
What steps is Indonesia taking to ensure that RIPH applications can be processed in a timely 
manner and enable improved flows of imported products, including those currently impacted by 
quantitative restrictions?  
Response: 
 
Answer will be provided later. 
 
What measures does Indonesia have in place to ensure that applications to the Minister of Trade to become registered importers are processed speedily and in a way that does not impair trade? 
 
Response: 
 
Answer will be provided later. 
 
As asked in question 1 under Section 3.1, please confirm how Indonesia calculates and publicises 
its import restrictions on horticultural products and animal products. In particular, paragraph 4.16 of the Secretariat report refers to import quotas applied to beef products since 2010. Furthermore, 
paragraph 4.16 refers to import quotas on horticultural imports applied since January 2013: 
Can Indonesia please specifically set out where and how information on these quotas and their numerical limits is officially shared with trading partners and WTO Members? 
 
Response: 
 
Answer will be provided later. 
 Can Indonesia please also specify the laws and regulations (and provisions within those laws or 
regulations) pursuant to which these quotas on horticultural and animal products were set? 
 
Response: 
 
Answer will be provided later. 
 
Could Indonesia please explain the reason for the dramatic reduction in beef quota described in paragraph 4.16 of the Secretariat report? 
 WT/TPR/M/278/Add.1 
 
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  Response: 
 
Answer will be provided later. 
 
Fisheries WT/TPR/S/278, p 77 paragraph 4.19 
Section 4.4.4 of the Secretariat report notes that the size of Indonesia's Exclusive Economic Zone 
(EEZ) means it has effective control over significant marine resources and that Indonesia is now the biggest tuna producing country in the world. However, the report notes that provision is made 
in Fisheries Act No.45/2009 for subsidies, support, and incentives, including fuel subsidies. 
Overfishing and illegal fishing are reported to be a serious problem as effective fisheries management is difficult to achieve due, inter a lia, to the lack of enforcement capabilities and 
inadequate fisheries management at the provincial level. 
Questions: Could Indonesia provide greater detail on the subsidie s, support, and incentives that it provides to 
its fisheries sector including their magnitude over time, the recipients and how these support 
programmes are administered? 
 
Response: 
 
Referring to Law No.45/2009 concerning fisher ies, the government of Indonesia (GOI) 
does not provide subsidies to the fisheries se ctor. The structure of Indonesia fisheries is 
one dominated by small scale fisherman with the ownership of small sized vessels. Most 
are artisanal fisheries which catch fish in or der to fulfil their daily needs. Lack of 
facilities, financial support, infrastructure an d capacity are the main problems affecting 
Indonesia fisheries.  
Therefore, the GOI provides support for sma ll scale fisherman in order to strengthening 
the capacity in a sustainable manner as mand ated by the law. The definition of small 
scale fisherman is clearly defined in  Law No. 45/2009 concerning Fisheries. 
The Law No. 45/2009 emphasies the GOI's strong commitment to the practice of 
sustainable fisheries management. 
Could Indonesia explain how it ensures that its subsidies do not contribute to overfishing or 
overcapacity, or to illegal, unregulated or unreported fishing? 
 
Response: 
 
Subsidies do not contribute to overfishing and overcapacity in Indonesia.  More than 
90% of Indonesia fisheries are small all scal e fisheries. Most use small size vessels 
under 5 GT (See the table).  Most of the subsidies provided are not related to the actual catch effort but go towards supporting lo w income fishermen obtains food, housing, 
education for thier children, etc. Small fishing businesses provide a substantial 
contribution to employment in the coastal ar eas, poverty alleviation and food security.  
Table 1. The number of fisherman and fishing vessels in Indonesia  
No. Category Amount 
1. Fisherman 2,75 million 
2. Boat 596.184 units 
 Without motor 212.003 (35,6%) 
Outboard motor  229.335 (38,5%) WT/TPR/M/278/Add.1 
 
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  Motor boat 
 < 5 GT  
  5 – 10 GT  
  10 – 20 GT  
  20 – 30 GT  
 > 30 GT  107.934 (18,1%) 
29. 936 (5,0%) 
7.728 (1,3%) 
5.200 (0,9%) 
4.048 (0,7%) 
Source: Indonesia Fisheries Statistics, 2011. 
NORWAY 
According to paragraph 3.43 of the Secretariat's report the Indonesian authorities may commence 
anti-dumping and countervailing investigations on its own initiative. Between 2007 and November 
2012 Indonesia launched 25 new investigations.  
Question: How many of these investigations were initiated on the initiative of the Indonesian authorities 
themselves? Does Indonesia follow any particular policy when initiating investigations on its own 
initiative? 
Response 
The Indonesian Anti Dumping Committee (KADI)  has never self-initiated Anti-dumping 
nor Countervailing investigations. Therefore, there is yet any particular policy to be 
followed when self-initiating inve stigations to be conducted. 
We note from paragraph 3.51 of the Secretariat's report that Indonesia with respect to safeguards 
has introduced a "national interest consideration" whereby the Ministry of Trade reviews the 
recommendations by the investigating authorities to ensure that they are in the national interest.  
Question: Has such national interest considerations resulted in non-application of any safeguard measure 
that otherwise could have been justified under WTO rules? Do the Indonesian authorities make 
similar considerations in respect of anti-dumping? 
Response 
According to Article 25 of the Government Regulation No. 34, Indonesia takes national 
interest into consideration in re spect of anti-dumping measures. 
From paragraph 10 of the Secretariat's report we note that 95 per cent of Indonesia's tariff lines 
are bound. Furthermore we understand that the av erage bound rate exceeds the average applied 
rate by 37 per cent, thus reducing the predictability of the applied tariff both in the short and the long run.  
Question: 
In how many instances during recent years, an d for which products, has Indonesia increased the 
applied tariff rate within the limits of the bound rate? 
Response 
Indonesia had implemented harmonization of im port duties tariffs program in the year 
2005-2010. The program aimed to harmonize tariffs between the upstream, 
intermediate and downstream, and also make the tariff structure more uniform. At the end of the program most of the tariffs set by 5% rate. 
After that program ended Indonesia implemen t tariff determination in accordance with 
the existing economic conditions such as: 
 The need for protection of domestic industry 
 The need for cheaper production inputs WT/TPR/M/278/Add.1 
 
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  1 January 2012 Indonesia raised tariffs to 5% on a number of lines that were previously duty free 
(ref. paragraph 3.20 of the Report by the Secretariat). We are concerned about this raise of tariffs 
and the signal Indonesia is sending by the increase d duty. Several of the products covered by this 
raise are fertilizer products (listed below). Our understanding is that these products are produced 
domestically in Indonesia, that Indonesia subsidis es the production of fertilizer products, and that 
Indonesia has increased this subsidy substantia lly (ref. paragraph 4.12 of the Report by the 
Secretariat).  
Fertilizer products previously duty free and now subject to a 5% tariff:   HS 3102.10.00.00: Urea, whether or not in aqueous solution 
 HS 3102.80.00.00: Mixtures of urea and ammonium nitrate in aqueous or ammoniacal solution 
 HS 3104.30.00.00: Potassium sulphate 
 HS 3105.20.00.00: Mineral or chemical fertilizer s containing the three fertilizing elements 
nitrogen, phosphorus and potassium 
 HS 3105.51.00.00: Containing nitrates and phosphates 
 HS 3105.60.00.00: Mineral or chemical fertilizers containing the two fertilizing elements 
phosphorus and potassium 
 HS 3105.90.00.00: Other 
 
Question: 
Could Indonesia please provide more information on the reasons and policies behind the increased 
tariffs for fertilizer products? 
Response 
Actually increasing of fertilizer import du ty tariffs is part of tariff harmonization 
program 2005-2010 that in the end of the pr ogram most of tariffs set at 5%, but its 
implementation was delayed (particularly for fertilizers and some food commodities) 
until the end of 2011, so at the beginning of  2012 tariff has adjusted concerning with 
program harmonization of tariffs 2005-2010. 
Subsidy program for fertilizer industry is a public service obligation to the farmers 
through fertilizer industry for a specified amo unt not for all production. So the fertilizer 
producers has to sell on the normal price (wit hout subsidy) if they sell to other people 
other than farmers (such as plantation industry). 
This Policy aims to increase national food self-sufficiency and help farmers to produce 
the food source. 
Indonesia has export licensing, prohibitions and restrictions in place to provide an adequate 
domestic supply of essential products and to promote higher-value-added downstream industries. 
Paragraph 16 of the Secretariat's report states that Indonesia next year will prohibit mining companies from exporting mineral ore products and require companies concerned to undertake 
refining activities onshore.  
Question: We would appreciate to be informed concerning which mineral ores such an export restraining 
policy may be introduced. 
Response 
Answer will be provided later. 
Indonesia has become an observer to the WTO Government Procurement Agreement (GPA) in 
2012.  WT/TPR/M/278/Add.1 
 
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  Question: 
Could Indonesia please clarify its intentions and accession plans to the GPA. 
Response 
Nowadays Indonesia is in the process of tr ansforming the procurement system from a 
less structured into more structured. This regime also adopt from international best 
practices which already implement by many countries. Therefore Indonesia becomes an 
observer of GPA WTO to gain some experi ence and knowledge regarding government 
procurement. Indonesia has to measures the readiness capacity of our sectors/industries, this requires time and effort. Under these circumstances, Indonesia 
has no plan to exceed the GPA. 
Norway applauds efforts taken by the Indonesian government including by the Investment Board 
BKPM in attracting foreign investments. Creating efficient and predictable framework is crucial for 
foreign investors.  
Question: Could Indonesia elaborate on the measures taken in order to increase the attractiveness of foreign 
investors? 
Response 
BKPM has taken several measures to create  a more conducive investment climate, 
among others, based on the prevailing Laws  and Regulations, to mention a few: 
1. Providing investment incentives (t ax allowance, tax holiday, etc). 
2. Developing One Stop Integrated Service  (PTSP) or One-Stop-Services for 
Investment (OSSI) in  regional levels (regencies); there is annual award for those 
that provide the best services. 
3. Developing and accelerating  the implementation of Electronic Investment 
Licensing and Information Service System (SPIPISE known as NSWi) a network 
information & licensing system for any in vestment project needs (e.g. licensing, 
economic resources etc.) 
4. Packaging, promoting and facilitating ready-to-offer as well as solicited 
infrastructure projects. 
The Doing Business report by the World Bank  for 2013, measuring business regulations, 
ranks Indonesia 128 out of 185 countries.   
Question: 
Could Indonesia please elaborate on any measures taken to facilitate the process of establishing 
companies? Does the Indonesian government have any plans to reduce the number of permits 
needed in order to start a company?  
Response 
Briefly, to establish a company and to st art business is different. The procedure of 
establishing a company is quite standard and simple as well. The investor can go to the 
public notary's office and Tax office for regi stration a company. Meanwhile the permit to 
start a business may be conducted after co mpany establishment. The permit process 
now in BKPM (Investment Coordinating Bo ard) is simple, clear and transparent. 
In order to speed up the process of establishing companies, some efforts have been done, such as 
simplification and standardization of permit and no n-permit procedures at the central and regional 
level for similar licensing (investment registration , trade license, tax payer registration, deed of 
establishment, company registration). WT/TPR/M/278/Add.1 
 
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  Question: 
Could Indonesia please provide information regarding new regulations in place or any new 
regulations planned which address oil and gas issues? 
Response 
Answer will be provided later. 
We would appreciate if Indonesia would elaborate on the newly established SKK Migas.  
Question: 
In particular what differentiates SKK Migas from the former BPMigas? How will the new unit affect 
ongoing and future negotiations of Production Sharing Contracts? 
Response 
Answer will be provided later. 
The Jakarta Stock Exchange has declared that state-owned companies registered on the stock 
exchange perform better than those which are not.  
Question: Does the Government have plans of further listing on the stock exchange of its state-owned 
enterprises? 
Response 
Yes, we have further privat ization pipelines which will lis t more SOEs on the stock 
exchange. Fully aware of the benefits offered by capital market prot ocols, be it better 
transparency, better competitiveness, stro nger capital structure and many others, 
certainly we include capital market as one of our primary strategies to boosting the 
performance of our SOEs.  
On the other hand, since we are not merely dr iven by profit motives, the capital market 
is not a blanket policy that we take as a one size fits all solution to boost performance. 
As a context, there are 5 major objectives that we give to our SOEs, they are 1) providing tangible positive contributions to our national economy, 2) profit seeking, 
3) delivery of public services in the form of  high quality of goods & services to support 
our society's well-being, 4) pioneering ne cessary businesses which are still unattractive 
for the private sectors, and 5) supporting & assisting robust development of small & 
medium enterprises, cooperatives and various public interests (Law 19/2003).    
In the case that we consider the capital market, or privatization, as the proper way to go 
to improve the performance of SOEs, we will do so by respecting these general 
directions: 
1. Privatization programs are aimed pr imarily to promote growth, better 
implementation of good corporate gove rnance and transparency through wider 
public ownership, independence. Governme nt will maintain majority ownership in 
SOEs which are deemed strategic to be kept as SOEs. 
2. Initial public offering is the preferable me thod of privatization. Non capital market 
privatization will be conducted with utm ost prudence, and will be conducted only 
when SOEs which needs additional capital cann ot raise it in the capital market or get 
it from the Government. Other reason for choosing non capital market method such 
as strategic sales is the needs to impr ove technical, management and marketing 
credentials. 
3. Strategy regarding time, size and price will be determined with the aim to optimize 
the value of our SOEs; WT/TPR/M/278/Add.1 
 
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  4. To promote wider domestic in vestor's interest in the capital market and in SOEs' 
shares, we also work closely with vari ous stakeholder to build stronger & 
knowledgeable domestic investor base. 
 
Norway believes it is a sensible practice not to include offshore services in cabotage regulations. Access to high quality maritime offshore services is crucial for effective and secure oil & gas 
production. A decree was issued by the Indonesian president in 2011 temporarily exempting 
offshore operations from the regulations on cabotage.  
Question: 
Will this exemption be extended? 
Response 
For Continuing the source of oil and gas pr oduction, the extension will continue under 
the Minister Regulation, as long as Indonesian flag vessel not available. 
PAKISTAN 
As reflected in the Secretariat Report, nearly 72% of Indonesia's tariffs are at bound at 40% or 
above. However, a large binding overhang is a pparent when comparing the overall MFN applied 
average with final bound average as given in Table 3.2.  In the agriculture sector, tariffs on more 
than 1,300 products are bound at 40% or above. The large gap between bound and applied rates, 
combined with seemingly arbitrary changes in applied rates, creates uncertainty for foreign 
companies seeking to enter the Indonesian market. 
Does Indonesia have plans to reduce the gap between bound and applied rates and to reduce the 
bound rates? 
Response: 
Indonesia dose not  have any  plans to redu ce the gap between bound and applied rates, 
nor to reduce bound rates excepets as may occur as part of potential across the board 
tariff reductions ensuing from the success ful completion of the current round of 
multilateral trade negotiations, the Doha Development Agenda. 
The Secretariat Report also points out that manufacturing in Indonesia has declined or stagnated 
in terms of its value added, and its share of GDP has fallen to under 25% adding that Indonesia's 
strong recent GDP performance has been driven by services and commodities, not manufacturing. 
How does Indonesia plan to boost its manufacturing sector? Can Indonesia list specific steps 
contemplated to be taken in this regard? 
Response: 
 
In line with Presidential Decree No. 28/2008, the Government of Indonesia has stipulated the National Industrial Policy . One of the Priorities is concerning: 
Manufacturing Industrial Basis:  
 Basic Material Industry: 1) iron and steel industry; 2) cement industry; 
3) petrochemical industry; and 4) ceramics industry. 
 Machinery Industry: 1) electricity equi pment and electricity machine industry; 
2) machinery industry and general equipment. 
 Labour-Intensive Manufacturing Industries ( industri manufaktur padat tenaga 
kerja ): 1) textile and textile product indust ry; 2) footwear industry; 3) pharmacy 
industry with domestic raw materials.  
 
The Secretariat Report has noted that "New procur ement regulations require each procuring entity 
to implement stronger management controls and also set out contracting procedures and 
timeframes.  However, in spite of these reforms, bid-rigging remains a major problem and WT/TPR/M/278/Add.1 
 
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  accounts for around 70% of the Competition Commission's caseload, pointing to the need for a 
comprehensive procurement law and strengthened audit procedures." 
In what way Indonesia plans to control problems in procurement regime? Could Indonesia share 
its experience with e-procurement so far? 
Response: 
We believe through an electronic procuremen t system, we can reduce problems such as 
bid-rigging etc. One of the  government's priori ties to better deal with existing problems 
in its procurement regime by means its e-procurement system. Indonesia has been 
intensifying its efforts to promote and ex pand the system since 2005. Indonesia now 
has 552 electronic procurement services throughout Indonesia. 
Indonesia would like to share the experience of e-procurement and has strong intention 
to also get experience from other countries  since we are now still in the process of 
development e-procurement system. 
According to the Secretariat Report, "Efforts to draw up a master plan for port development have 
been hampered by the decentralized structure of government and the competing interests of 
provincial and district governments". 
Could Indonesia explain the problems of coordi nation between the provincial and district 
Governments? Could Indonesia share its plan for improving coordination at the decentralised 
structure? 
Response: 
Indonesia entered the decentra lization era in 1999 in which there is clear authority 
division among central government, region al government and local government. The 
main principle is that the authority of po licy making belongs to central government 
whereas implementation of the policy is on lo cal governments. If there is interconnected 
authority between two districts, regional gove rnment shall be responsible for it. If there 
is interconnected authority between two provinces, central government shall be 
responsible for it. The master plan for po rt development and other infrastructure 
projects are placed in long term and medium term development plan and their 
respective complementary plans. These plan s stipulate which level of government is 
responsible for which tasks. 
SINGAPORE 
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT 
II TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
Page 24, (paragraph 2.21 – 2.31) 
Singapore is happy to note that Indonesia has enacted a new law on investment (Law No. 25) that 
does away with timeframes for foreign investment in permitted sectors and grants national 
treatment to investors.  While the report notes that, in principle, all business fields are open to 
investment, there remain sectors that are declared as closed, or open with certain conditions, in the 2010 Negative List. We would appreciate it if Indonesia could share (a) any plans to review 
and reduce the number of sectors on the Negative List and allow for further investment 
liberalisation; and (b) when the new Negative List will be released. 
Response: 
We are now in the process of finalizat ion of the revised Negative List of 
Investment.Comprehensive disc ussions among interministrie s are still underway. We do 
expect that the revised List would create a better investment climate. WT/TPR/M/278/Add.1 
 
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  Page 9, (paragraph 15) & page 10, (paragraph 23) 
Singapore notes that Indonesia has support for production and trade, some of which are different 
for domestic and foreign investors.  We would appreciate it if Indonesia could share a list of special 
assistance schemes that are available at national or state level (or from any other government 
source in Indonesia), as well as a description of the necessary qualifying conditions. 
Response: 
Indonesia will try to collect and facilitate th e information you need by coordinating with 
line ministries and regional governments at the first opportunity. It would be 
appreciated if Singapore could mention mo re specific on the subsector(s) or 
merchandise goods concerned. 
Page 21 (paragraphs 2.4 – 2.5) Singapore understands that Indonesia has 3 concurrent and complementary plans for economic 
development. For greater clarity, we would appreciate it if Indonesia could share with us a table 
summarizing the features of each of the plans - MP3EI, the RPJPN and the RPJMN- respectively in the following aspects. 
(a) geographical scope; 
(b) scope of economic activity; 
(c) infrastructure development plans, if any; 
(d) special assistance schemes offered/ introduced, if any; 
(e) any other major initiatives apart from those listed above, if any. 
 
Response: 
Indonesia will be glad to provide Singapore the information on the separate documents 
hereafter; however for the firsthand information, you may explore on the Coordinating 
Ministry of Economy's website: www.ekon.go.id  
DOCUMENT MP3EI RPJPN RPJMN 
Geographical Scopes All over Indonesia, 
divided into 6 economic corridors All over Indonesia, no 
specific regional disaggregation All over Indonesia, divided into 
7 main islands, i.e:Sumatera, Jawa-Bali, Kalimantan, Sulawesi, Nusa Tenggara, Maluku, Papua 
Scope of Economic 
activities The activities are 
divided into three 
pillars:  
development of growth 
centers in the economic 
corridors, strengthening 
national connectivity, 
and the increase of 
capacity 
of Human Resources 
and Science & 
Technology Covers all development 
aspects, not only 
economic activities Covers all development 
aspects, not only economic 
activities. There are 14 
national priorities, as medium 
term development focus 
Infrastructure development Infrastructure 
development is aimed at increasing connectivity, mainly focused on transportation 
infrastructures Government will 
support development of all infrastructure aspects which are economically and socially beneficial but 
are financially not 
feasible Infrastructure development in 
the medium term is focused on land and spatial planning, roads,, public housing, flood control, telecommunication, and urban transportation. 
Document Type Master Plan Long-term Planning 
Document  Medium Term Planning 
Document WT/TPR/M/278/Add.1 
 
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  Budget Private, SOEs, and 
Government Government Government 
 
III TRADE POLICIES AND PRACTICES BY MEASURE 
Page 32, (paragraph 3.2) and page 33 (paragraph 3.10) 
Singapore notes from paragraph 3.10 that there are four entry channels into Indonesia including 
the priority lane, which was introduced in 2006 as a result of amendments to the Customs Act.  
The priority lane is further categorized into "Prioritized Prominent Partner Lane" and "Non-Prioritized Prominent Partner Lane". Sing apore further understands from Table 3.1 and 
paragraph 3.2 that the development of Customs Prime Service Offices with trade facilitation for 
"prioritized" and "non-prioritized" prominent partners is one of the customs-related reforms 
undertaken. We would appreciate it if Indonesia could share: (a) whether the same lane is used 
for the prioritized and non-prioritized prominen t partners; (b) how the "Prioritized Prominent 
Partner Lane" and "Non-Prioritized Prominent Partner Lane" are being determined by the authorities; (c) the roles and functions of the "Pri me Service Office"; and (d) whether the priority 
lane is only reserved for the "prioritized" and "non-prioritized" prominent partners determined by 
the "Prime Service Office".    
Response: 
The determination of the Non Prioritized Pr ominent Partner Lane (MITA non prioritas) 
and the Prioritized Prominent Partner Lane (MITA Prioritas) is as a result of a risk management derived for the track record of  the importers, type of goods, and the 
compliance of the importers toward all the regulation applied.  
Customs Prime Service Office is one of the service office under Directorate General of 
Customs and Excise in which one of the functi on is to give customs service with regard 
to export and import. 
Customs Prime Service Office applies se rvices based on the policy made by 
headquarters, especially with regard to No n Prioritized Prominent Partner Lane (MITA 
non prioritas), Prioritized Prominent Partner Lane (MITA Prioritas). 
Page 32 (paragraph 3.3) 
Singapore notes that while the use of a customs broker to import goods into Indonesia is not 
required, all importers must be registered with the DGCE and are given a customs identification 
number (NIK) and an importer registration number (API). We would appreciate it if Indonesia 
could share on the purposes of the customs identification number (NIK) and the importer 
registration number (API). 
Response: 
Customs Registration Number/ Nomor Induk Kepabeanan  (NIK) is an instrument issued 
by DGCE to access Customs procedural sy stem and to help monitoring importers 
activities in customs area. 
Importers Identification Number (API), is regulated in order to identify and classify 
each importers based on their activities, General Importer (API-U) for trader and 
Producer Importer (API-P) for industry.  
Page 33 (paragraph 3.9) Singapore notes that Indonesia's national single window (INSW), launched in 2007, allows for, 
inter alia , the single submission of customs documents and applications for trade licences, 
payment of duties, synchronized processing, and a final decision by Customs. By the end of 2012, 
it was operational at eight sea ports in Indonesia as well as the Soekarno-Hatta International 
Airport in Jakarta and the Juanda Airport in Surabaya. We would appreciate it if Indonesia 
could:(a) provide the names of the eight sea po rts in which the INSW is operational; and 
(b) clarify whether supporting trade documents for import/export declarations could also be WT/TPR/M/278/Add.1 
 
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  submitted through the INSW.  
Response: 
(a) At this moment, INSW has already been  implemented at Tanjung Priok, Tanjung 
Perak, Belawan, Merak, Bekasi, Tanjung  Emas, Soekarno-Hatta, Halim Perdana 
Kusuma, Polonia, and Juanda. 
(b) Supporting document for export and impo rt that are submitted through INSW are 
only licensing documents issued by other related government agencies. 
Page 34 (paragraph 3.16) Singapore notes that "The DGCE has 60 days in which to issue a decision, and if it fails to do so 
the objection is considered to be approved". We would like to clarify if this statement means that 
any written objection sent to the DGCE is effectively accepted after 60 days if there is no notice by the DGCE within this timeframe to reject the obje ction, and that the acceptance of the objection 
means that the initial customs decision will be overturned? If that understanding is correct, may 
we clarify further that that will be the case regardless of the reason for DGCE's "fail[ure] to do so" (i.e. failure to send out a rejection notice within 60 days of receipt of a written objection)?  
Response: 
Objection procedures are regulated in the Customs Law. The Dire ctor General shall 
provide decision on the objection within 60 days, and if after period of 60 days a 
decision has not yet been provided, th e objection is considered acceptable. 
Page 59 (paragraph 3.86) 
Singapore understands that Indonesia has one FTZ and has plans for multiple SEZs. The FTZ 
status of the Riau Islands appears slated for expiry and the law governing FTZs is open to nullification. We would appreciate it if Indonesia could elaborate on: (a) whether there are plans 
for another FTZ apart from the Riau Islands; (b) whether there are plans to change the status of 
the Riau Islands FTZ and (c) the different features of an FTZ and SEZ. 
Response: 
Answer will be provided later. IV TRADE POLICIES BY SECTOR 
Page 82 (paragraph 4.42)  
Singapore notes that a 2008 Health Ministry decree requires local and foreign pharmaceutical 
companies operating in Indonesia to manufacture lo cally in order to get drug approvals. We would 
appreciate it if Indonesia could: (a) clarify if such a requirement is still in force; and if so, (b) 
elaborate on the rationale for such a requirement.  
Response: 
Yes, the requirement is still in force. Indonesia has around 200 pharmaceutical 
companies and we would like to encourage them to produce and provide drugs for national needs. 
Drugs which can be registered in Indonesia are domestic manufactured drug products or 
imported drug products. Imported drug produc ts are those that are especially intended 
for community health programs, new drugs and drug needed but cannot be 
manufactured domestically. After they have b een marketed for 5 years, drugs should be 
manufactured domestically, except for drugs th at are still patent-protected or originator 
drugs. 
The aims of this regulation are: 
- To optimize the domestic industry's capaci ty as the main source of essential drugs WT/TPR/M/278/Add.1 
 
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  needed by most Indonesian citizen, with  considering various challenges in the 
drug production/manufacture process to  comply with international standards 
- To underline that there is no standards rela ting to safety, efficacy and quality that 
differentiate between imported drugs and domestic drugs. 
Page 88 (paragraph 4.71) Singapore notes that Indonesia permits up to 65 % foreign ownership in value-added and mobile 
telecommunications services and up to 49% for fixed services, which goes beyond Indonesia's 
current commitment in its WTO GATS Schedule.  However, the Secretariat's report also notes that "the new limits on fixed services appear to represent a step backward from recent practice, where 
up to 95% ownership was permitted".  We would appreciate it if Indonesia could (a) clarify why 
the foreign equity cap on fixed services is redu ced from 95% to 49%, and (b) share any plans and 
timeframe to further liberalize the telecommunication sector.  
Response: 
Please refer to the response to question 12. 
Page 92 (paragraph 4.90-4.93) 
Indonesia's 2008 shipping law requires all vessels operating in Indonesian waters to be flagged 
domestically and manned by Indonesian crews; cabo tage regulations were due to apply that law to 
all offshore activities beginning May 2011. Subsequently, the Ministry of Transportation issued 
Regulation No. 22/2011 allowing certain classes of non-transportation vessels to be eligible for a three-month renewable waiver from the domestic-f lag requirements when there is no suitable 
Indonesian-flagged vessel available, such as for the sophisticated rigs and specialized equipment 
used in the energy sector.  The Secretariat repo rt noted that exceptions to the domestic-flag 
requirements include cable-laying ships. These exceptions, however, are time limited and 
scheduled to phase out over the next few years.  The Secretariat report stated that foreign-flagged 
vessels may operate in Indonesia with varied exemptions expiring between December 2012 and December 2015, depending on the type of activity  and vessel. According to the Secretariat report, 
barring additional exemptions, no foreign-flagged vessels will be permitted to operate within 
Indonesian territory past 2015. We would appreciate it if Indonesia could: 
Elaborate on the application procedure for the three-month renewable waiver from the domestic-
flag requirements under the cabotage regulations, including any financial charges or applicable 
taxes.  What is the time frame within which an ap plication will be approved or rejected, from the 
time that the application is lodged? 
Response: 
Regarding the application for a permit to use of foreign vessels, it is stipulated in the 
Regulation of the Minister for Transpor tation Number: PM 48 Year 2011 On the 
Procedures and Terms Of The Use Of Permit For Foreign Ship On The Event Excluding Transporting Passengers And / Or Goods In Domestic Sea Tr ansport Activities are listed 
in Article 2 paragraph (1) and (2). While re quirements - the necessary requirements and 
procedures for filing to get the License to Use Foreign Ships, contained in Article 10 
paragraph (1) through paragraph (3) and Article 11 paragraph (1) through 
paragraph (6). 
Explain if the exemption to the domestic-flag requ irement for cable-laying and cable-repair ships 
can continue to apply beyond the exemption expiry date.  International connectivity is critical to 
global trade and economic growth and faults occurring to submarine cables will impact 
international and regional connectivity, including to Indonesia.  Beyond the expiry date, how could 
Indonesia facilitate in efforts to rectify any cable damage as soon as possible, for the restoration of international connectivity?  WT/TPR/M/278/Add.1 
 
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Response: 
Permissions granted to foreign vessels for doin g activities that do not include activities 
of transporting passengers and / or goods in maritime transport activities in the 
domestic sea transport; it is stipulated in  Article 10 paragraph (3). As for the vessels 
use for laying and repair undersea cables, including the type of vessels that doing 
underwater working , it is listed in Article 2 paragraph (3) and Article 8. As for the 
period of time for foreign ships to be able to  do other activities that do not include the 
activities carrying passengers and / or good s in the domestic sea transport activities, 
contained in Annex II Regulation of the Mi nister for Transportation: PM 48 Year 2011 
Dated : 18 April 2011. In the column of Type of  Activity / Type of Vessel, the ship that 
doing underwater working, given period of  time until the end of December 2013.  
Elaborate on all applicable charges for cable-repair ships to operate in Indonesian waters. Are 
there any new charges or taxes (e.g. Import Duty, VAT, Withholding Tax, exemption of waivers) 
introduced after 2008? 
Response: 
Charges for cable-repair vessels to oper ate in Indonesian waters are based on 
negotiation between Business to Business, meanwhile regarding the VAT is under the 
Customs Regulation 
Clarify what will happen to foreign-flagged offshore oil and gas vessels which want to operate in 
Indonesia waters after 2015.  
Response: 
Until now we still operate offshore oil and gas vessels under the Regulation of the 
Minister for Transportation: PM 48 Year 2011. 
Page 95 (paragraph 4.105) 
Singapore notes that foreign construction firms are only permitted to be subcontractors or advisors 
to local firms in areas where the Government believes that a local firm is unable to do the work. In 
addition, for government-financed projects, foreign companies must form joint ventures with local firms.We would appreciate it if Indonesia coul d share with us (a) any plans and timeline to 
liberalise the construction sector and (b) whether Indonesia is ready to open to this domestic 
sector when the AEC comes in being in 2015. 
Response: 
Since the government-financed project scheme is some kind of government 
procurement, in which Indonesia has not confirmed its position in government 
procurement provision. The plan and time line to liberalize this sector are being 
discussed among the stakeholders (association  and domestic players). When AEC comes 
in 2015, since Indonesia has committed, of course the domestic companies must be 
ready. 
PART II:  QUESTIONS REGARDING THE GOVERNMENT REPORT NIL 
PART III: GENERAL QUESTIONS  
NIL 
 WT/TPR/M/278/Add.1 
 
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  SWITZERLAND 
REPORT BY THE SECRETARIAT 
 1. Economic Environment 
1.2.  Recent economic developments 
1.2.2  Macroeconomic policy framework 
 
Paragraph 1.11 : According to the secretariat's report "energy subsidies amounted to roughly 
28.9% of central government spending in 2011". It is our understanding that all Indonesian 
citizens benefit from these subsidies. Has the Indonesian government also envisaged the 
possibility to target these subsidies to low income citizens only?  
Response:  
Yes, the Indonesian government has envisage d the possibility to target these subsidies 
to low income citizens only 
Paragraph 1.13 : We have taken note with interest that Indonesia aims to create "an incentive for 
the development of domestic manufacturing or pr ocessing industries with higher value-added 
exports" through export taxes. Which specific sectors does Indonesia want to further develop? 
What have Indonesia's experiences been with rega rds to the attainment of this objective through 
the application of export taxes? Has Indonesia also considered alternative or complementary incentive schemes to support the development of domestic manufacturing and processing 
industries? 
Response: 
(a) Which specific sectors does Indo nesia want to further develop? 
The acceleration of industrialization focu sed on 15 (fifteen) sub-sectors that are 
covered into 3 (three) major groups namely: A. Mining Industry Group results based , include: 
a. Coal conversion industry; 
b. Refining and oil refinery industry; 
c. Basic chemical industry (including petrochemicals); 
d. Basic metal industry. 
 
 
B. Agriculture-Based Industrial Group, include: 
a. Edible oils and fats industry 
b. Sugar cane-based industry 
c. Cocoa processing industry and chocolate manufacture 
d. Pulp and paper industry 
e. Rubber goods based industry 
 
C. Human Resource Based Industry and Domestic Markets, include : 
a.   Textile, apparel and footwear 
b.   Industrial machinery and household apliances 
c.   Electronic components and telecommunications industries 
d. Component and accessories of automoti f and motor vehicle engine parts 
e. Shipbuilding industry 
f. Furniture industry 
 (b) What have Indonesia's experiences been wi th regards to the attainment of this 
objective through the application of export taxes? WT/TPR/M/278/Add.1 
 
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  Indonesia must be careful in determining th e export tax because it is not just the 
revenues but also it is trade mechanism.  Indonesia will provide incentives for 
investors who reinvest their investment to  Indonesia to produce more downstream 
products. One of the mechanisms in doing so is to encourage downstream 
industries through export taxes. 
(c) Has Indonesia also considered alternativ e or complementary incentive schemesto 
support the development of domestic ma nufacturing and processing industries? 
In efforts to strengthen the competitiven ess of national industry, the government 
also issued a number of fiscal policies in the form of tax ince ntives. The fiscal 
policies included : 
a. Government-borne import du ty incentives (BMDTP) to industry for goods and 
raw / auxiliary industry materials that  are not produced domestically or 
which have been produced but not yet meet the required specifications and 
the numbers are not enough 
b. Tax holidays are provided to pioneer industry with a minimal amount of 
investment amounting to Rp 1trillion,  with business of (1) base metals 
industry, (2) oil refinery industry and / or organic basic chemical industry 
derived from oil and natural gas, (3) machinery industry, and (4) 
communication equipment industry. 
 
While the form of facilities provided ar e (1) Corporate Tax exemption within a 
period of 10 years and a minimum of five  years, commencing from the year of 
commencement of commercial production wi th an investment of 100 percent. (2) 
reduction of Corporate Tax at 50 per cent  of the corporate tax payable over two 
fiscal years, after the expiration of the provision of Corporate Tax exemption 
facility. 
Completing the "tax holiday' also issued Government regulation  No.52 Year 2011 
on income tax facilities for investment in  certain Bossiness Field and /or in specific 
area. Incentive, known as "tax allowances" that provide fiscal facilities either  
i. Reduction in net income by 30% of tota l investment, which is charged for six 
years, amounting to 5%,  
ii. Depreciation and amortization,  
iii. The imposition of income tax on dividends paid to foreign tax subject of 10% 
or more lower tariff approval by the a pplicable double taxation avoidance  
iv. Compensation for loss of at least fi ve years but not more than 10 years 
 
2. Trade policy regime: framework and objectives 
2.1 Administration of trade and investment policy 
 Paragraph 2.1 : We understand that the Indonesian "Government is legally required to offer the 
public the opportunity to give input into the rule-making process orally or in writing" and that 
"consultations are undertaken on an ad-hoc basis as issues arise". Switzerland has made very positive experiences with widely consulting the public in law-making procedures in order to allow 
the public to voice its interests and concerns in an early law-making stage already. We would 
appreciate if Indonesia could elaborate on its experiences made so far, the frequency of as well as 
policy topics subject to such consultations undertaken. 
Response: 
Answer will be provided later. WT/TPR/M/278/Add.1 
 
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  III. Trade Policies and Practices by Measure 
3.1 Measures directly affecting imports  
3.1.2 Customs valuation and rules of origin 
 
Paragraph 3.13 : The secretariat's report refers to the use of a database of market prices. Could 
Indonesia indicate the sources used to compile this database? Are such prices the basis for 
customs to calculate the duty collected on an impo rted good or do they rather base this on the 
declared transaction value? 
Response: 
Indonesia custom office uses customs valu e database as a basis reference whether a 
transaction value provided by the im porter is reasonable or not.  
3.1.3 Tariffs 
3.1.3.1 Tariff bindings 
 Paragraph 3.17  of the WTO Secretariat indicates that " Given the big difference in the tariff 
nomenclatures it was not possible to compare bound and applied rates on a tariff line basis.  
However, a large binding overhang is apparent when comparing the overall MFN applied average 
with final bound average ". Could Indonesia indicate which tariff nomenclature it uses for its MFN 
applied rates and its bound rates? What are the "differences" the WTO Secretariat refers to? Moreover, how does Indonesia ensure that the MFN rates are consistent with its WTO 
commitments as certain products can be classified  under different tariff headings depending on the 
nomenclature used? This could also imply that for the bound rates and the MFN applied rates different levels of tariffs could be in use. How would you reconcile such cases? 
Response: 
Indonesia's commitment on bound tariff can be  seen in Commitment XXI. When there is 
presumption on the tariff classification di fferences, it may be resulted from the 
unfinished process of transposition. In proc essing the transposition, Indonesia uses 
World Custom Organization guideline.  
3.1.6 Contingency measures 
3.1.6.1 Anti-dumping and countervailing measures 
 
In paragraph 3.43, the Secretariat's report notes that the Indonesia Anti-Dumping Committee 
(KADI) may undertake anti-dumping and countervailing investigations on its own initiative or launch an investigation based on an application from domestic industry. Could the Indonesian 
authorities indicate under what circumstances KADI would undertake anti-dumping and 
countervailing investigations on its own initiative without an application from the domestic industry? Also, could the authorities indicate how many cases this procedure has concerned in 
recent years? 
Response: 
KADI has never self-initiated Anti-dumping or Countervailing investigations. So far, all 
investigations by KADI were in response to Indonesian do mestic industry's requests. 
3.1.7 Standards and technical regulations Paragraph 3.55 : The report states that the Indonesian authorities have been making efforts to 
align national standards with international ones and that more than 50% of Indonesian standards 
are now harmonized. Does this mean 50% of Indonesian standards for which international 
standards exist are harmonized or that 50% of all Indonesian standards are international 
standards? Does this figure refer to standards referenced in technical regulations only? Does the Code of Good Practice for the Preparation, Adoption and Application of Standards as set out in 
Annex 3 of the WTO-TBT Agreement also apply to national standards?  WT/TPR/M/278/Add.1 
 
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  Response: 
A study on the level of harmonization is no w being carried out to properly determine 
how harmonized the SNIs are with international standards. The figure 50% 
harmonization is probably too big. This is a very roughly figure that has no confirmed 
basis to calculate. First we need to define  what harmonized to international standard 
really means. The 50% harmonization figure  could possibly not consider the ISO/IEC 
Guide 21 part 1 (adoption of in ternational standards: identical, modified and not equal). 
Besides, there are many (about 1500 SNIs whic h is very specific to Indonesia and which 
do not have an international standard to re fer to (such as traditional crackers, sweets, 
specific terminology to Indonesia etc.). This amount of standards should be excluded in 
the calculation. The interim report shows that  the level of harmonization is around 20%. 
This figure could be bigger considering the fa ct that there are about 650 SNIs that could 
possibly be withdrawn after a syst ematic review a few years ago. 
Now if we are talking about 20% harmonized SNI with international standard, it means 
that 20% of 7614 SNI are identical or modifi ed version of international standards. 
The figure of 20% harmonized standards does not directly refer to regulated standards. 
Some of regulated standards such as in elec trical and electronic product, toy safety 
(soon to be implemented), converter kits for automotive cars are in fact identical to 
international standards. 
3.1.8 Sanitary and phytosanitary measures 
Paragraph 3.68 : The report mentions a draft of a new food law that was expected to receive 
Presidential assent when this TPR report was about to be finalized. Could Indonesia indicate when this draft will be notified to WTO members and briefly outline substantial changes with regard to 
the current legislation. How are Codex Alimentarius  standards, guidelines and codes of practice 
reflected in this new food law? 
Response: 
a. Law No. 18/2012 on Food was not notified to  the WTO, but the draft regulations as 
follow-up regulations of Food Law will be  notifiedin advancebefore coming into 
effect. 
b. Preparation of Food Law was referring to the Codex Alimentarius standards, 
guidelines and codes of practices. It can be found in Chapter VII of Food Safety. 
The Law No. 18/2012 can be downloaded from: 
 http:www.setneg.go.id/index.php?optio n=com_perundangan&id=3782&task=deta
il@catid=1&Itemid=42&tahun=2012 
 http://bkp.deptan.go.id/file/iip angan/UU%20Nomor%2018%20Tahun%202012.
pdf 
 
3.3 Measures affecting productions and trade 
3.3.4 Competition policy and price controls 3.3.4.1 Competition policy 
 
In paragraph 3.121 , the Secretariat's report notes that both the OECD and the authorities 
identified some shortcomings with respect to the existing competition rules, such as the fact that 
the Indonesia Competition Commission (KPPU) lacks the power to obtain evidence in competition 
investigations, which is particularly problematic for cartel-related cases; investigation time-frames 
are too short; penalties for bid-rigging (the bulk of the KPPU's work) are weak; and some legal 
provisions overlap and need to be rationalized. Could the Indonesian authorities indicate whether they have any plans to remedy these shortcomings? WT/TPR/M/278/Add.1 
 
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  Response: 
We wish to inform that Indonesia's compet ition policy and law had been reviewed twice 
by UNCTAD and OECD, in the year 2009 and 2012 respectively. The reviews did raise 
serious concerns about the current situation of the authority of competition agency in 
obtaining evidence and the low fines whic h reduce the deterrent effect to the 
enterprises. The potential problem may be caused by (but not limited to) the 
competition law. A process for an amendment has been taking place at the Commission 
for more than three years. The draft has be en submitted to the Parliament for further 
review. Some of the focuses of the amendment are related to the enhancement of 
Commission's authority, institutional status, and the level of fines. In term of the 
Commission's authority for example, the co mmission is trying to obtain greater 
authority in obtaining evidences such as wire -tapping and confiscation of documents.  
3.3.5.4 Regulatory developments (2007-12) 
Paragraph 3.139 of the Secretariat's report indicates that compulsory licenses have been issued in 
Indonesia in order to permit Government use of some pharmaceutical patents.  
Please describe the applicable provisions, criteria and procedures provided for under Indonesian 
legislation for issuing compulsory licenses. Plea se explain how these national provisions and 
procedures comply with Article 31 of the TRIPS Agreement and in particular its lit. A and c 
(requiring that each permission of such use without authorization of the right holder shall be considered on its individual merits and be limited to the purpose for which it was granted).  
Please also explain how Indonesian legislation implements the obligation on legal review with 
regard to any decision relating to the authorization of such use (TRIPS Article 31 i)). 
Response: 
Indonesia has issued Government-Use authorizat ion in light of "the urgent need of the 
community in the effort to control the HIV/AIDS and Hepatitis B epidemic".  
The Presidential Decree No. 76 of 2012 rega rding Exploitation of Patent by the 
Government on Antiviral and Antretroviral Drugs empowered the Minister of Health to 
appoint a "pharmaceutical company" as th e patent exploiter on behalf of the 
government taking into account the recommend ations from the head of the NADFC. The 
exploitation period covers the remaining patent protection term. 
The decree also set the "compensation fee" at  0.5% of the net selling value of the ARVs 
concerned to the patent holder.  
4. Trade Policies by Sector 
4.2 Sectoral structure of the economy 
 
Paragraph 4.6 : According to the report, the formal priv ate sector contributes about 60% to GDP 
and creates about 70% of the employment. At the same time, it is explained that the private 
sector is largely dominated amongst others by state-owned enterprises (SOEs). How much do 
these enterprises contribute to GDP and how much employment do they create?  
Response: 
Indonesia gives huge rooms to private busine ss player to participate in the process 
development of Indonesia. The government only enters the business on the sectors 
covering public interest. If it is compared state trading enterprises with private business 
players, the contribution of STE is not the majority. Total of STEs in Indonesia more or 
less are 149 companies consisting of 25 compan ies in agriculture sector, 5 companies in 
mining sector, 31 companies in manufacture sector, 2 companies in  electricity sector, 
2 companies in water supply sector, 10 compan ies in construction sector, 4 companies 
in trade sector, 23 companies in transporta tion sector, 1 company in accommodation WT/TPR/M/278/Add.1 
 
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  sector, 3 companies in information and te lecommunication. 8 companies in financial 
services, 23 companies in insurance sect or, 2 companies in real estate and 
10 companies in professional services. 
4.4 Agriculture, fisheries, and forestry 
4.4.3 Trade Policy instruments  
Paragraph 4.14  describes that the government introduced new import tariffs for raw materials 
for processed milk products. We would like Indonesia to clarify the rationale for the introduction of these new tariffs.  
Response: 
New tariffs whether they are lower or higher than before are used by the government to 
manage trade in goods. 
4.4.5 Forestry and forest products 
Paragraph 4.23:  Switzerland understands that, despite various efforts through introduction of 
restrictions on logging and through reforestation programs, the Indonesian government 
experiences difficulties to protect the country's fo restry resources. Could Indonesia elaborate on its 
future plans regarding the enforcement of a sustainable management of natural resources?  
Response: 
Answer will be provided later. 
Appendix 
Table A3. 2 Products subject to import licensing requirements, 2012 
 According to table A3.2 food and beverages can on ly be imported through one of 5 designated sea 
ports or through any international airport. Switzerland would like to ask Indonesia to clarify the 
criteria on which these sea ports are identified and whether the number of ports will be extended 
in the foreseeable future, especially with regard to the capacity to import food and beverages in 
order to further promote carriage by sea. 
Response: 
Answer will be provided later. 
Appendix 
Table A3. 2 Products subject to import licensing requirements, 2012 
 
Table A3 describes the import licensing requirements for animals and animal products. Is our understanding correct that the import of carcass meat for retail sale is not possible? If this 
understanding is correct, we would like to ask Indonesia to provide the underlying reasons for the 
import prohibition of carcass meat for retail sale. 
Response: 
Answer will be provided later. THAILAND 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
III.  TRADE POLICIES AND PRACTICES BY MEASURE 
Page 45 (paragraphs 3.37-3.40) 
 
Question: 
With regard to Indonesia's non-automatic import licensing system, could Indonesia clarify how WT/TPR/M/278/Add.1 
 
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  this current system help achieve various enumerated objectives, especially "to protect domestic 
production" in comparison with other alternative measures? 
Response: 
Answer will be provided later. Question : The procedure for receiving an approval for an import licence, as indicated in the paragraphs, 
involve many steps and are more burdensome and trade-restrictive than necessary.  The licenses 
are generally approved contingent upon a recommendation being provided by one or more ministries or agencies with an expertise in the pa rticular area. In addition, the process of issuing 
the recommendation is unclear and without a specific deadline, causing unreasonable difficulties 
to importers and exporters due to the prolonged an d complicated process. Thailand would like to 
know whether the relevant Indonesian regulations provide for any deadlines for completing the 
consideration of and granting import licences. If so, what are they? Have they been 
implemented? 
Response: 
Answer will be provided later. Question: 
Many WTO Members consider that the Indonesian import licensing system is complicated and 
inconsistent with Indonesia's WTO obligations under the General Agreement on Tariffs and Trade, the Agreement on Agriculture, and the Agreemen t on Import Licensing Procedures.  How does 
Indonesia plan to resolve this problem?  
Response: 
Answer will be provided later. 
IV. TRADE POLICIES BY SECTOR  
Page 77 (paragraph 4.14) Question: 
Do the Indonesia authorities intend to reduce the large gap between bound and applied rates on 
agriculture products? 
Response: 
Indonesia authorities will determined the a pplied rates by considering the economic 
situation on the bound rate limits 
Question: 
Could Indonesia explain the rationale in introducing new import tariffs for raw material for 
processed milk product?  What are the objectives for this measure? 
Response: 
Although Indonesia is not a main producer  of dairy products, Indonesia has a small 
group of dairy farmers to be protected or ascertained marketing distribution channels, 
so we need tax treatment difference be tween local and imported products 
Page 77 (paragraph 4.16) Question: 
Thailand would like to know about the reason(s) behind Indonesian's lowering import quotas for 
beef and cattle products. WT/TPR/M/278/Add.1 
 
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  Response: 
Answer will be provided later. 
Question: 
Could Indonesia please clarify the reasons why it introduced an import quota system on fresh and 
processed fruits and vegetables? Please explain how these measures are consistent with WTO provisions. 
Response: 
Answer will be provided later. 
Page 82 (paragraph 4.42) 
Question: 
As the 2008 Health Ministry decree requires local and foreign pharmaceutical companies 
operating in Indonesia to manufacture locally in or der to get drug approvals, does the Indonesian 
government's system for drug approvals provide an  opportunity for prospective drug exporters to 
Indonesia to apply for drug approvals?  If so, could Indonesia explain the criteria for such application in order to obtain drug approvals for imported drugs? 
Response: 
Answer will be provided later. 
 
Question: 
Do prospective drug exporters have to apply for drug approvals through a local pharmaceutical 
manufacturer in Indonesia with a written consent? 
Response: 
The applicant must be a domestic pharmaceutic al industry located in Indonesia. If druq 
exporters wish to register their prod uct in Indonesia, they must appoint a 
pharmaceutical industry located in Indonesia as the applicant of their products, completed with Letter of Appointment an d Licence agreement between companies. 
A local pharmaceutical industry is a phar maceutical industry located in Indonesia 
covering State Owned Enterprise, Nation al Company, Local Investment Company 
(PMDN), and Foreign Inve stment Company (PMA). 
Question: 
Could Indonesia verify whether the government imposes a requirement for importing drugs that 
foreign pharmaceutical companies must have an establishment for local manufacturing within five 
years or must provide for transfer of technology? 
Response: 
As mentioned in the Minister of Hea lth Decree No. 11010/MENKES/PER/XI/2008, 
imported drug products are those that are especially intended for community's health 
program, new drugs and drug needs bu t cannot be manufactured domestically. 
According to article 10 paragraph (2), writte n approval (Letter of Authorization) from 
foreign to local manufacturer shall cover the tr ansfer of technology with the stipulation 
that in no later than 5 years drugs should  be manufactured domestically, except for 
drugs that are still patent-prote cted or originator drugs. 
Question: If so, could Indonesia provide an explanation whether such requirement(s) are consistent with 
the WTO Agreements, especially the prohibition of quantitative restriction (GATT Article XI) and WT/TPR/M/278/Add.1 
 
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  the TRIPS Agreement? 
Response: 
The provisions of the articles in GATT sh all not prevent any contracting party from 
establishing or maintaining internal quantita tive regulations relating to national policy.  
 UNITED STATES 
I: Questions on the Secretariat Report (WT/TPR/S/278) 
Summary 
Economic Environment 
 Page 7, paragraph 4:   The Secretariat report notes that Indonesian "authorities consider that 
domestic industrial policy considerations, aimed, inter alia , at developing local industries and 
moving up the value chain, should be balanced with maintaining an open foreign trade and investment regime in order to ensure that Indonesia's external commitments continue to be fully 
respected."  Please further describe ho w this balance is being achieved.   
Response: 
Indonesia merchandise exports accounted for 24% of GDP in 2012, with these figure 
declining since its previous review in 2007,  where exports accounted for 29% of GDP. 
On the other hand imports contribution ha s remained stable, accounting for 25% of 
GDP. Indonesian economic growth stable at 6% with a slight decline in 2009 due to the 
economic crisis in U.S. during the review  period. Maintained economic growth, which 
was contributed by investment in terms of  gross fixed capital formation, became the 
main driver of Indonesia's economy beside consumption. 
 Due to the European economic crisis, Indo nesia's export deteriorated in 2012 which 
further threatened economic performance. Faced with the current challenges, the 
government adopted policies intended to impr ove export performance.  Efforts have been 
carried out to diversify the range of  products exported, determine the export 
destinations, and also increase the added value of export products. 
 
In order to improve the value added of th e exported products, Indonesia has launched 
policies to develop downstream industries (m oving up the value chain), including inter 
alia policies that are related to the Increa sing Minerals Value-added through Processing 
and Refining. This policy will increa se job opportunities and improve the 
competitiveness of products.  To support th is down-stream policy, the security of raw 
material supply for local industries must  be ensured through domestic market 
obligations. As a consequence, it may lesse n the quantity of raw materials to be 
exported.   
Policies taken in terms of export and impo rt procedures, identification number for 
importers, and designation point of arriva l for several products imported, are not 
intended to act as a trade restriction, but merely for creating added value for 
Indonesia's export products, enforce inspec tion to protect domestic consumers from 
dangerous or sub-standard goods.  However, since there is no policy to ban exports of 
raw materials, we conclude that there has been no violation of open foreign trade 
principles. In addition, foreign companies wh ich need raw materials from Indonesia still 
have opportunities to invest in downstream subsidiaries in Indonesia in order to fulfil 
the demand of their upstream industries.  
 WT/TPR/M/278/Add.1 
 
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  These policies indicate a balance between do mestic industrial policy and foreign trade 
and investment regime. 
Trade and investment policy framework 
Page 7, paragraph 5:   The Secretariat report states that Indonesia has enacted new laws 
relating to various trade and investment policies over the review period.  In addition to the list in the report, Indonesia also recently enacted a new Food Law, and has drafts of a Trade Law and 
Industry Law.  We request that Indonesia please explain the steps it takes to fully and promptly 
implement Article X of the GATT 1994, Article III of  the GATS, Article 63 of  the TRIPS Agreement, 
and other transparency provisions in the WTO Agreements requiring notification and or publication.   
Can Indonesia please confirm that no law, regulation, judicial decision, administrative rulings, or 
other measures of general application pertaining to or affecting trade in goods, services and TRIPS becomes effective prior to its publication in the Official Gazette or other publicly available source?     
Response: 
 
We can confirm that every measure of genera l application pertaining to or affecting 
trade in goods, services and TRIPS does not become effective prior to its promulgation. 
The Law will be effective one or two years af ter the stipulation and the Law will not be 
effective if there is no implementing regulation. 
 Where does Indonesia publish its laws, regulations, judicial decisions, administrative rulings, and 
other measures of general application pertaining to or affecting trade in goods, services and TRIPS 
prior to their effective dates?   
Response: 
We publish them in our Official State Gazette and other sources such as official websites 
of our ministries or government agencies and, sometimes, through press conferences. 
 
Page 7, paragraph 6:   The Secretariat reports that "Indonesia's medium-term trade policy 
objectives are to increase the export of non-oi l products, strengthen the domestic market and 
manage the availability of basic products; and to strengthen national distribution channels."  
Please explain the steps that the Government of Indonesia is taking to "strengthen its domestic 
market and manage the availability of basic products?"  What specific sectors is Indonesia focusing 
such efforts on? 
Response:  
Answer will be provided later. 
2. Trade Policy Regime: Framework and Objectives 
2.1 Administration of tr ade and investment policy 
Page 20, paragraph 2.1:   The Secretariat report states "the Government is legally required to 
offer the public the opportunity to give input into the rule-making process orally or in writing." 
However, the paragraph goes on to state that "The authorities indicated that consultations are undertaken on an ad hoc basis as issues arise."   
What efforts is the Government of Indonesia undertaking to ensure that all ministries are fully 
implementing the legally required public consultations procedures and that input received from interested parties is taken into account?  
Response: 
 
The Government of Indonesia would remind all ministries that they can be brought 
before the court of law through a lawsuit by the people if they are not given an 
opportunity to give input in a regulation befo re it is enacted. Ou r Law No. 12 Year 2011 WT/TPR/M/278/Add.1 
 
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  concerning the Formation of Laws and Regula tions provides that the Indonesian people 
have the right to give input into the ru le-making process ora lly or in writing.      
 
Can Indonesia please provide more details on its process for reviewing public comments and 
taking these comments into account prior to the effective dates of its laws, regulations, judicial decisions, administrative rulings, and other meas ures of general application pertaining to or 
affecting trade in goods, services and TRIPS?   
Response: 
 
Currently, we do not have a standard proced ure concerning the said process. However, 
in general, the comments are given through a pu blic hearing held by a ministry or other 
government agency before a regulation or other measure comes into effect. The 
comments are then reviewed and considered by the ministry or other government 
agency concerned during the drafting process of the regulation or other measure.    
 
Are comments from interested parties in other WTO Members also reviewed and taken into 
account? 
Response: 
Yes. 
 
Page 20, paragraph 2.1:   We note further that "[t]here is no formal independent advisory body 
to evaluate trade and investment policies and provide advice to the Government."  Is Indonesia considering establishing such a body?  If so, please provide additional detail.    
Response: 
S o  f a r  w e  d o  n o t  h a v e  s u c h  a n  i n d e p e n d e n t an advisory body to evaluate trade and 
investment policies, but Indonesia  is open to learning about the best practices for the 
establishment and operation of such an institution. 
2.3 Trade agreements and arrangements 
2.3.1 WTO participation 
Page 22, paragraph 2.8 : The Secretariat report notes that Indonesia has notifications that are 
outstanding in a number of areas, including agricult ure, import licensing, notification procedures 
for quantitative restrictions, state trading enterprises, and subsidies and countervailing measures, 
as well as services. Indeed, Indonesia's last full notification pursuant to its obligations under Article 25 of the SCM Agreement was in 1997.  We also note that Indonesia has not notified its 
pre-shipment inspection requirements as required by the Agreement on Pre-Shipment Inspection.   
When does Indonesia intend to provide these notifications?   Response: 
Indonesia will notify our preshipment insp ection requirement to WTO as soon as 
possible.  
 
What steps is the Government of Indonesia taking to improve its notification practices and provide 
the necessary notifications to the WTO? 
Response: 
We will arange meetings with related minist ries/agencies to prepare the notification. 
 WT/TPR/M/278/Add.1 
 
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  2.4 Foreign Investment regime 
2.4.2 Negative List 
Page 25, paragraph 2.26 :  We note that the Secretariat Report states that Indonesian 
"authorities indicated that an amendment is be ing drafted with a view to liberalizing some 
restrictions" in its Negative Investment List.  What is the status of this amendment and when does Indonesia anticipate it might be available for review?  Can Indonesia elaborate on what areas will 
be liberalized for foreign investment?  Will Indonesia be considering both removing sectors from 
the list, as well as liberalizing the foreign capital restrictions?  Are there further restrictions on investment anticipated? 
Response: 
 The amendment of the Negative List is still being finalized. The List will be regularly 
reviewed in every 3- year based on the inputs or recommendation from the line 
ministries and other stakeholders. 
 Liberalization for foreign investment is done progressively. Inputs from 
stakeholders are welcome. The important spirit is to create a better climate. 
 Considering the domestic situation, fore ign investment restriction to some areas 
need to be removed gradually. However, the need to take into account safety, moral 
religious or environmental impera tives is a must for Indonesia. 
 Certain sectors (for 100% foreign/ domest ic invesment) remains unchanged, while 
some other sectors  may be opened up. 
2.4 Framework for Business 
Page 31, paragraph 2.36:  The Secretariat reports that "minimum capital requirements for 
establishing a business have been increased."  What is the purpose behind increasing minimum 
capital requirements? 
Response: 
As an UNESCAP report highligthed, there are at least 103 countries around the globe 
that require entrepreneurs to put up a predet ermined amount of capital before starting 
registration of licensing formalities. Fo r Indonesia, increasing the minimum capital 
requirements is a logical respon se to growing interest by fo reign investors to invest in 
Indonesia. The minimum capital requirements are meant to: 
 deter or prevent careless establishm ent of a company in Indonesia; 
 deter or prevent the establishment of  a small company only to commit 
circumvention through Indonesia; 
 ensure that a company has adequate resources for operating business in 
Indonesia; and potentially enables a busine ss owner to have capacity to pay back 
the debt.   
3.  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures directly affecting imports 
3.1.1.1 Registration requirements 
Page 32, paragraph 3.4 :  The Secretariat reports that tw o types of importer registration 
numbers are used, and each importer may only obtain one type.  Please explain Indonesia's 
rationale for why importers have to register as either a "producer importer" for the company's own 
production or a "general importer" for trading purposes.  Further, please explain if domestic 
companies are also required to register as either a production company or a sale company?  If so, 
are they only permitted to hold one type of registration?  WT/TPR/M/278/Add.1 
 
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  Response: 
Our rationale for differentiating between im porter registration numbers for producer 
and for trading purposes is to make our foreign trade policy inline with our domestic 
trade policy especially in the distribution of  goods. Our policy on the distribution of 
goods is that producer can not directly se ll their finished products to individual 
consumers but that these have to be sold  through a distributor and/or retailer.  
Our regime is that companies established in Indonesia must have either an industrial 
license for production company or a trading license for a sales company. These companies can not hold both types of registration simultaneously. 
Page 32, paragraph 3.6 : The Secretariat Report states "A Producer API (API-P) is granted to 
importers importing goods for their own use, such  as capital goods, raw materials, auxiliary 
materials and/or materials to support the production  process.  Trading or transfer of these imports 
is not allowed."  Why does Indonesia prohibit goods, imported for processing under the API-P 
registration, from being sold or traded?  
Response: 
As we mentioned before, our regime di fferentiates between companies that are 
producers and those that are traders. The said prohibition is necessary to prevent 
company from registring as  a pr oducer but acting as a trader. 
3.1.1.2 Port of entry restrictions Page 32, paragraph 3.7 :  The Secretariat report indicates that Indonesia maintains port of entry 
restrictions for a range of goods.  Please provid e an explanation for why there are port of entry 
restrictions?  For instance, why can food and be verages, toys, electronics, footwear, garments, 
and salt only enter through certain ports? 
Response: 
The rationale for the provisions on imports of  the said products through certain ports of 
entry is to create better trade practices th rough ensuring consumer protection in the 
sense that products which enter Indonesia mu st be suitable for human consumption and 
environmentally friendly (i.e. not low qua lity and hazardous products). Those certain 
ports of entry we consider as ports that have  the most sufficient infrastructure both in 
terms of procedural system and physical facilities.   
3.1.1.3 Pre-shipment inspection 
Page 32-33, paragraph 3.8 :  As highlighted in the Secretariat report, we note that Indonesia 
has a long list of goods subject to pre-shipme nt inspection.  Please explain how Indonesia 
determines which goods are subject to pre-shipment inspection requirements.  
Response: 
It is the line ministries that  propose whic h products are to be covered by PSI to the 
Ministry of Trade, with these proposal then being discussed among line ministries.. 
The Secretariat report also states: "most of these imported goods are subject to import licensing 
requirements."  Why do these goods require both import licensing and pre-shipment inspection?   
Response: 
Because import licensing is only a tool of re quirement to import whereas PSI is a tool to 
make sure that the goods arrived at port of destination are same with the imported 
goods listed on the document.  
 
The report notes that various goods, including horticultural products, require pre-shipment 
inspection (PSI) by surveyors who have been appr oved by the Indonesian authorities.  Please WT/TPR/M/278/Add.1 
 
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  describe the PSI requirements for horticultural pr oducts.  Is the list of approved surveyors 
publically available?  How does an importer/expor ter find out which surveyors are approved by the 
Indonesian authorities?  What is the purpose of and rationale for the inspection? 
Response: 
Verification is conducted  at the port of loading. The Verification covers data or 
information on (1) country and port of load ing; (2) customs classification and product 
description; (3) type and quantity of prod uct; (4) time of shipment; (5) port of 
destination; (6) marking on the packagin g which informs that the packaging is 
susceptible to contain food and recyclable ; (7) health certificate; (8) for fresh 
horticultural products, phytosanitary certificat e; (9) certificate of origin; (10) for fresh 
horticultural products, cover letter stating that the packaging which is used complies 
with law and regulation; (11) the attach ment of label in Indonesian language 
concerning information of name and quantity  of the product, name and address of the 
producer or exporter, and name and addr ess of the importer on the product or 
packaging, this label is not required  for certain horticultural products. 
 The list of approved surveyors is publically available.  
 They can find out by asking the governme nt officers responsible for administering 
foreign trade in the Ministry of Trade. 
 The purpose is to make sure that the imported products fully meet the 
requirements and to make sure that the pr oducts that have arrived at the port of 
destination are identical to those im ported goods listed on the document. 
 
3.1.1.5 Risk management 
Page 33, paragraph 3.10 :  The Secretariat report explains the process for importers, and makes 
reference to "reputable importers," "prioritized prominent partner," and "non-prioritized prominent partners."  Please explain what factors are considered in determining "reputable importers," 
"prioritized prominent partner," and "non-prioritized prominent partner."  Are companies able to 
apply for recognition as a "reputable importer," "prioritized prominent partner," or "non-prioritized prominent partner?  If so, what is the application process? 
Response: 
The determination of the Non Prioritized Pr ominent Partner Lane (MITA non prioritas) 
and the Prioritized Prominent Partner Lane (MITA Prioritas) is as a result of a risk 
management derived for the track record of  the importers, type of goods, and the 
compliance of the importers with all the regulations applied.   
Every company can propose themselves as Non Prioritized Prominent Partner Lane 
(MITA non prioritas) and Prioritized Prominent Partner Lane (MITA Prioritas) as long as 
they fulfil all the requirements in this regard. 
Page 33-34, paragraph 3.11 :  The Secretariat report states that an AEO pilot project was slated 
for December 2012.  What is the status of this pilot project, as well as the implementing rules?  Will the proposed implementing rules be open for public comment? 
Response: 
At this moment the Indonesia Customs AEO task force team is preparing the pilot 
project and has made a further study toward some companies. 
The legal basis to implement AEO is Fina nce Ministry Regulation No. 219/PMK.04/2010 WT/TPR/M/278/Add.1 
 
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  3.1.2 Customs valuation and rules of origin 
Page 34, paragraph 3.13 :  The Secretariat report states that Indonesian "authorities indicated 
that a database of market prices is regularly updated."  For what purposes does Indonesia use the 
database of market prices?  Does Indonesia use it  to determine customs value?  If so, in what 
circumstances would it be used? 
Response: 
Indonesia customs is using customs value database as a basis reference whether a 
transaction value provided by the im porter is reasonable or not.  
It is also use as one of the data resources for determining customs value based on 
method II (identical goods), method III (s imilar goods), and method VI (fallback). 
Page 34, paragraph 3.16:  The Secretariat reported that "authorities noted that the big drop in 
appeals was partly due to the issuance in 2010 of Ministry of Finance guidelines for officers on 
determining the customs value of imported goods."  Please provide additional detail regarding the 
guidelines that have been issued to customs officers to determine the customs value of imported goods.  What is the status of the guidelines, and are the guidelines publically available?   
Response: 
In 2010, Minister of Finance Regulation No.: 160/PMK.04/2010 on Customs Valuation, 
which provides more detail guidance for Cust oms Officer in determining customs value. 
The regulation has also been published in th e State Gazette and directly disseminated to 
all stakeholders, and uploaded to the official  website of Directorat e General of Customs 
and Excise( www.beacukai.go.id ). 
3.1.3.4 Temporary changes to customs duties 
Page 39, paragraph 3.27 :  The Secretariat report states that Indonesia may wave import duties 
temporarily for the production of certain goods bu t that the "imports must: not yet be produced 
domestically; be domestically produced but do  not meet the specification needed; or be 
domestically produced but not in quantities necessary to meet the industry need."  How does 
Indonesia determine these requirements?  
3.1.4.2 Luxury tax Page 43, paragraph 3.31 :  The Secretariat report notes that "a 2009 revision to the 
Value-Added Tax and Luxury Tax Law gives flexibility for maximum rates to be raised to 200%."  
Under what circumstances would this flexibility be used to raise the rates? 
Response: 
Luxury Tax is imposed in accordance with th e principle of National Treatment and varies 
in accordance with the prevailing economic conditions and the state budget 
requirements. 
Luxury tax is one of the instruments for th e effort of minimizing the gap of income 
distribution, and the other side can suppo rt the state budget for more government 
expenditure on infrastr ucture development. 
3.1.5.2 Quantitative restrictions Pages 44-45, paragraph 3.36 :  The report notes that among the imports subject to quantitative 
restrictions are: rice, sugar, salt, alcoholic beverages.  For what reason does Indonesia restrict the 
importation of these products?  WT/TPR/M/278/Add.1 
 
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  Response: 
Indonesia does not restrict the importation of  rice, sugar, salt and alcoholic beverages. 
However, we manage the importation of rice , sugar and salt because those commodities 
are necessary for the livelihood of Indonesian  farmers. As for alcoholic beverages, we 
restrict them because it is necessary fo r the monitoring and controlling of their 
production and distribution as they can ha rm public moral. (Masukan Biro Hukum, 
Kemendag) 
Indonesia does not restrict but rather regula te importation by considering the seasonal 
period of the products concerned in order to  provide security to farmers to continue 
growing their crops (Masukan dari Kementan) 
3.1.5 Import prohibitions, restriction s, and licensing Page 45, paragraph 3.37 :  The Secretariat report states that one of the reasons for Indonesia's 
import licensing requirements is "to implement poli cies that aim to protect domestic production."  
Please explain how Indonesia views using import licenses to protect the domestic market in light of the WTO Agreement on Import Licensing Procedures.  
Response: 
First of all, it should be understood th at we use import licenses for goods the 
importation of which is regulated. So, using import licenses is one of the tools which we 
use to achieve our objectives of regulating import of certain goods. One of our main 
objectives is to create conducive business cl imate by preventing deceptive practices by 
importers which in the end coul d harm our domestic market. 
Page 45, paragraph 3.39 :  The Secretariat report highlights a number of products that are 
subject to import licensing.  Please identify the WTO documents where notification of "pearls 
(2012); used capital goods (2011); sodium tripolpyphospate (2011); fertilizer (2011) oil and gas 
(2009); non-hazardous and non-toxic waste (2009); LPG and LPG gas containers (2008); certain food, beverages, medicine, cosmetics, clothing and footwear (2008); electronic goods and 
children's toys (2008); and colour multifunctional machines and colour photocopying and printing 
machines (2007)," as named in the Secretariat's report, have been notified. 
We would further note that in December 2012 Indonesia issued an extension of its import licensing 
requirements for food and beverages, traditiona l medicine and food supplements, cosmetics, 
ready-to-wear clothes, electronics, footwear, and toys.  When will Indonesia notify this import 
licensing requirement to the WTO?  
Response:  
Indonesia will notifiy the import licensing  requirement in questions immediately 
 
Page 45, paragraph 3.40:  In late December 2012, Indonesia issued Ministry of Trade (MOT) 
Regulation 82 and Ministry of Industry (MOI) Re gulation 108, which imposed new import licensing 
restrictions on mobile technology products such as cell phones, laptops, and tablets.  Under 
Regulation 82, importers of cell phones, laptops, and tablets can no longer sell directly to retailers or consumers, must have at least three years of experience, and must use at least three 
distributors to qualify for a MOT importer license.  Please elaborate on when these regulations will 
take effect or whether they will be delayed furt her.  Please also explain the rationale for these 
regulations. Also, why are companies required to use three distributors? 
Response: 
The regulations have been effective as per 1 January 2013. The rationale for the said regulations is fo r consumer protection by preventing low 
quality, below standards, and hazardous elec tronic communication devices or gadgets to 
be imported into Indonesia. WT/TPR/M/278/Add.1 
 
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  We view the three distributors requirement is necessary to achieve the objective of 
regulating import of such products.   
3.1.6.1 Anti-dumping and countervailing duties 
Page 46, paragraphs 3.43 – 3.49:   On October 4, 2012, in G/ADP/Q1/IDN/15 – 
G/SCM/Q1/IDN/15, the United States filed a set of  questions regarding Indonesia's notification of 
its countervailing duty regulations in G/ADP/N1/IDN/3 – G/SCM/N1/IDN/3 (dated April 27, 2013).  
To date, Indonesia has provided no response to these questions.  Could Indonesia please indicate 
when a response will be provided?   
Response: 
Indonesia is still preparing the respon se to the US questions set out in 
G/ADP/Q1/IDN/15 – G/SCM/Q1/IDN/15 
Page 45, paragraph 3.41:  On October 4, 2012, in G/ADP/Q1/IDN/14 – G/SCM/Q1/IDN/14, the 
WTO circulated a number of questions posed by the United States regarding Indonesia's 
Regulation No. 34 (G/ADP/N1/IDN/3 – G/SCM/N1/IDN/3 (dated April 27, 2013).  To date, Indonesia has provided no response to these questi ons.  Could Indonesia please indicate when it a 
response will be provided? 
Response: 
Indonesia is still preparing the resp onse to the US questions set out in  
G/ADP/Q1/IDN/14 – G/SCM/Q1/IDN/14 
Page 46, paragraph 3.48:  According to the Secretariat's report, in the course of its notification 
responsibilities regarding its anti-dumping activity, Indonesia has had issues in not immediately 
notifying all preliminary and final actions taken.  Can Indonesia identify any steps taken or being taken to improve the timeliness of its notifications?  
Response: 
KADI notifies preliminary and final action s in its WTO semi-annua l report. Henceforth, 
Indonesia will improve the notification method pursuant to WTO rules (ADA).   
Page 47, Table 3.9:  In the antidumping investigation involving wheat flour from Turkey, 
Indonesia initiated the investigation in November 2008 and terminated it in August 2012, based on the withdrawal of the petition by the petitioner.  In other words, the investigation lasted nearly 
four years.  Can Indonesia please explain the basis for the duration of this investigation in light of 
Article 5.10 of the ADA to conclude investigations no later than 18 months after initiation? 
Response: 
Committee of Anti Dumping Indonesia (KADI) concluded the anti-dumping investigation 
of wheat flour from Turkey pursuant to AD A that is before 18 months. Petitioner 
withdrew the application while the nati onal interest was being discussed. 
3.1.6.2 Safeguard measures Page 48, paragraph 3.51:   According to the Secretariat's Report, one of the main changes 
introduced by Government Regulation No. 34 is with respect to safeguard rules and the 
introduction of "national interest consideration."  Would Indonesia please explain how any "national interest consideration" would be made operational and would ensure transparency and 
due process for participating parties? 
Response: 
The process of considering the national intere st shall be done by the Minister of Trade 
after receiving recommendation to impose Safeguard Measure from KPPI. The Minister 
of Trade shall discuss the recommendation which involves ministers and/or heads of WT/TPR/M/278/Add.1 
 
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  non-ministerial government institutions th at are related to the policy of Safeguard 
Measure. 
In order to ensure transparency, the imp osition of the Safeguard Measure as the 
outcome of the national interest considerat ion as mentioned above will be provided in 
the relevant notification. 
As for due process for the participating pa rties, it has been provided through the 
investigations, which KPPI conducts in line with Article 3.1 WTO Agreement on 
Safeguards.   
According to the Secretariat's Report, one of the main changes introduced by Government 
Regulation No. 34 is with respect to safeguard rules that allow industry to submit a "structural 
adjustment plan."  Please explain what factors or conditions might be included in a "structural adjustment plan" and how such plans would be incorporated into the analysis and resulting 
determinations by the Indonesian Safeguard Committee (KPPI) during the course of its 
investigation?  
Response: 
 
Regarding "structural adjustment plan", th e Government Regulation No. 34 does not 
regulate the factors or conditions, as it is not required by the WTO Agreement on 
Safeguards. The regulation relating to "str uctural adjustment plan" is formulated in 
accordance with Article 7.2 WT O Agreement on Safeguards.  
Page 48, paragraph 3.52:   According to the Secretariat's Report, Indonesia attributes its 
increase in safeguard actions "to counter the negative effects of trade liberalization."  Would Indonesia please explain the steps it is taking to ensure that safeguard actions are utilized only to 
address imports causing serious injury as set forth in the WTO Agreement on Safeguards and not 
to address other concerns by industry st emming simply from trade liberalization? 
Response: 
In its investigation and actions, Indonesia assures that such investigation and actions 
are as required by the WTO Agreement on Safeguards.  
3.1.7 Standards and technical regulations 
Page 50, paragraph 3.53:   The Secretariat reports that Indonesian authorities indicated that a 
Standardization and Conformity Assessment Act is being drafted.  We understand that a new draft 
Law on Industry is also currently being considered  and that the draft contains significant elements 
regarding standardization, but does not appear to require the use of international standards.  What is the status of this draft law?  What is its relationship to the draft Standardization and Conformity 
Assessment Act?  Will the Standardization an d Conformity Assessment Act harmonize with 
international standards? 
Response: 
 The draft act both on standardization an d conformity assessment procedures (SCA) 
as well as on industry has now already b een reviewed internally and gone through 
public consultation and harmonization pr ocesses before being submitted to the 
2013 national legislation program for further reviewed by the Council of 
Representative. 
 The interconection between draft of Standa rdization and Conformity Assestment Act 
is quite cleare in order to ensure consum er and health protection and also  promote 
the quality assurance of industrial products. 
 Yes. It will and for the time being, Indone sia has been making progress in its effort 
to harmonized some of its standards with  those of internaational standards (for 
examples UNECE Agreement). The use of international standards has becomes the WT/TPR/M/278/Add.1 
 
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  policy of national standards development an d it is now stipulated in the National 
Standardization Guideline (NSG) as the elaboration of the SCA act. All the NSGs are 
used as the references in conducting th e standardization activities at various 
sectors in Indonesia. Indonesia will increase  the number of its standard that are  
harmonized with international standards to gain  international market access. 
Page 50, paragraph 3.54 :  The Secretariat report notes that Badan Standardisasi Nasional 
(BSN) establishes guidelines for standards development approved by the Technical Management 
Board for Standard Development (MTPS).  To what extent have these guidelines been adopted by the various ministries involved in developing standards?  What authority does BSN have to ensure 
that these guidelines are followed? 
Response: 
BSN is the coordinator for standardization ac tivities in Indonesia as mandated by the 
Government. All procedures or references fo r national standardization activities are 
endorsed by BSN to be used by stakehol ders in various sectors in conducting 
standardization activities. The NSG #1:2007 relates to national standards development 
and is adapted from ISO/IEC Directive 1. The 6 principles of standards development 
(openness, transparency, consensus and impart iality, effective and relevance, coherence 
and development dimension) are also adopted in the NSG #1. This NSG #1:2007 is used 
as a reference by various national Techni cal Committees (TCs) /Sub Committees (SCs) 
in developing SNIs (Nationa l Standards of Indonesia). BSN conducts workshop/training 
for the national TCs and SCs to enable them to understand and implement the NSG 
#1:2007  BSN also has other related NSGs such as #2 (for developing national TCs/SCs), 
#3 (for adoption of international standards,  adopted from ISO/IEC Guide 21 part 1), #4 
(for conducting enquiry and e-balloting), #5  (for Standardization personnel/QCer to 
supervise consensus process at TCs/SCs level)  #6 (for SNI numberi ng system) etc. BSN 
has the authority to refuse a program if it does not comply with the NSG, for example if 
a proposed program does not fall under the scop e of the TC or a proposed draft standard 
does not reach a consensus, or if negative vo tes of a draft of SNI are more than 25% of 
total votes cast. 
Page 50, paragraph 3.55 :  The Secretariat report indicates that after the draft national 
standards (Standard Nasional Indonesia – SNI) are prepared, the Technical Committees (TC) "may 
invite other stakeholders to provide inputs."  Please clarify at what stage stakeholders are able to 
provide input.  Under what circumstances, would the TC not invite stakeholders to provide input?   
Response: 
After a draft national standard is prepared (could be up to several technical meetings) 
there will be a consensus at the TC level. In practice, many TCs have already invited 
stakeholders beside the TC members to give  inputs before the TC consensus but this 
could be limited stakeholders. The stakeholde rs can submit written input or present the 
comments in the technical meeting or consen sus meeting but the decision is under the 
authority of the TC. It is at the consensus meeting that BSN present the standardization 
personnel/QCer to monitor whether all requ irements for consensus are fulfilled. When 
making a decision for consensus the TC does not invite stakeholders. 
A broader range of stakeholders (nation-wide ) will be invited again during the national 
consultation process (enquiry stage, using website for 2-month period) where 
stakeholders may give written inputs of tech nical/substantial content. The stakeholders 
could join the enquiry process as long as they are registered as the member of MASTAN 
(Indonesia Standards Society). The member of MASTAN is now reaching almost 4000 people consisting of various disciplines (or ca lled as group of intere st). After considering 
inputs from the enquiry stage, there come an e-balloting process, a kind of "yes, no or 
abstain" voting process, again, conducted by  the stakeholders (MASTAN) resulting in a 
Final Draft National Standard to be  endorsed and promulgated by BSN. WT/TPR/M/278/Add.1 
 
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  Page 50, paragraph 3.58 :  For mandatory national standards (SNIs), the Secretariat report 
states that after the proposal for a technical re gulation has been adopted by a Board comprising 
different ministries and associations, "there follows a drafting period, involving relevant 
stakeholders." Please clarify what is meant by "relevant stakeholders."  How does Indonesia 
determine who is a relevant stakeholder? 
The Secretariat further reports "Technical regulations are issued by the relevant ministry or agency 
and enter into force six months after notification to the WTO."  Is this a new process?  If not, 
please explain why previous regulations (such as  G/TBT/N/IDN/59 of 2012) indicated they would 
be "effective on the date of promulgation?"   
Response: 
 
The term "relevant stakeholders" refers to relevant parties who are involved in 
standardization activities according to a sp ecific sector. This is what is meant by 
relevant stake holder. A stakeholder for automo tive sector is not likely to be relevant 
when a technical regulation for food is bein g drafted. These stakeholders could be from 
the representative of government institut ions, business organizations, industries, 
scientists, producers, and consumers. The dr afting process is done by the regulator 
before being submitted to BSN for fi nal verification and notification. 
T h e  p e r i o d  o f  6  m o n t h s  p r o v i d e d  b e f o r e  a  r e g u l a t i o n  c o m e  i n t o  f o r c e  i s  n o t  a  n e w  
process. This is explicitly wr itten in the NSG #301 (mandatory implementation of SNI)    
We realize the importance of Good Regulatory Practices (GRP ) to be implemented by the 
regulators. Many efforts have been made by BSN to promote the implementation of this 
GRP. However, not all elements of GRP coul d be implemented properly at one time. In 
fact, it is most likely no regulator follow a ll of the GRP elements. A regulator can achieve 
good result by following something different  from established Good Practice, or by 
applying well only a few selected GPRs particul arly relevant to its priorities and needs or 
by starting with a few GRPs and progressive ly adopting others over time. This also 
includes transposing the existing legislatio n becoming the new one that complies with 
international provision. Beside s, frequent tour of duty in the regulator institutions 
compels us to continuously promote this GRP to regulators.  
3.1.7.1 Notifications and specific trade concerns 
Page 51, paragraph 3.60 :  The Secretariat report indicates that domestic and foreign 
stakeholders can submit inquiries regarding proposed and adopted technical regulations online.  
Do these inquiries include comments on proposed technical regulations?  If so, how does the TBT 
enquiry point ensure that those comments are taken into consideration?  
Response: 
After having received a confirmed specific  number for notification from CRN, the 
Secretariat of Indonesia TBT EP uploaded the notification and its draft technical 
regulation in our TBT Information system. Members can then submit comments directly 
through the system or through TBT EP offici al email. Furthermore, all non-substantial 
question of any member are directly an swered. In the meantime, if the comments 
related to technical/substantial issues then  BSN invites relevant stakeholder who joint 
the TBT Notification Working Group. This WG consists of the representative of 
governments, industrial/assoc iation, experts (on call basis) and consumers. All 
technical comments or enquir ies are discussed and review ed before being further 
submitted to the regulator for considerat ion in finalizing the draft of technical 
regulation.  
For your information, in order to enhance our services in the future, we are still 
continuing to improve our TBT IT system.      WT/TPR/M/278/Add.1 
 
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  Page 52, paragraph 3.61:  As stated in the Secretariat report , a draft technical specification and 
mandatory SNI for toy safety was raised by th e United States.  The Indonesian toy safety 
standard, SNI 8124:2010 will potentially require redundant and burdensome in-country testing.  
What is the status of the toy standard?  Has it been adopted?  Will Indonesia offer recognition of 
test results from ILAC-accredited labs, as is common international practice, in the toy safety area?  Would Indonesia provide further information on the technical guidance being developed?  
Response: 
(Dari Kemenperin) 
 Indonesia is currently in the process of notifying the Indonesia National Standard 
for obligatory toy safety to WTO. In th e context of the conformity assessment 
procedure Indonesia would like inform that toy safety regulation is using type 1 
certification. 
Testing of conformity product may be done through: 
‐ Domestic production samples are taken fr om lot/batch of domestic products, or 
‐ Imported product samples are taken from the lot of imported products in each 
shipment. 
For information, the toy safety regulation covers 17 HS number and consists of 
4 SNI and 4 technical specifications of toys. 
 Several laboratories would be appointed by th e Ministry of Industry to facilitate and 
conduct the testing of the products, and that Indonesia had a marking and 
certification scheme conducted by the Na tional Accreditation Body of Indonesia 
( K A N ) .  I n  t h i s  s e n s e ,  l a b o r a t o r i e s  w o u l d  h a v e  t o  s i g n  a  m u t u a l  r e c o g n i t i o n  agreement and a bilateral agreement with KAN and Indonesia. Goods in conformity 
with SNI specification could be granted a ce rtificate to use the SNI mark. In order to 
minimize and t avoid the possibility of ille gal gods entering the Indonesia market 
from a wide marine area, imported goods had to have an SNI mark affixed before 
entering into Indonesia's customs territory. 
 Indonesia has informed the TBT Committ ee that the authorities were still 
developing the technical guidelines th at would set up the mechanism for the 
Indonesian National Standard (SNI) ma rking and certification. Indonesia was 
currently in the process of finalizing tec hnical guidance of toy standard, which was 
intended to avoid unnecessary obstacles to trade in line with TBT agreement. 
3.1.8 Sanitary and phytosanitary measures Page 53, paragraph 3.68 :  The Secretariat report notes that "A new food law has been drafted 
and is expected to receive Presidential assent by  end 2012."  Please provide an update on the new 
Food Law and the status of its implementation.  There were a number of provisions in the Food Law that we are monitoring closely, including that imports are only permitted when domestic 
consumption cannot be met by domestic supply.  Does Indonesia plan to notify the implementing 
regulations of the Food Law to the WTO and will Indonesia consider stakeholder comments before full implementation? 
Response: 
Recently, our legislator had passed a New Fo od Law (Law No.18/2012) which had been 
promulgated on 17 November 2012 replacin g Law No.07/1996 concerning Food as well 
(Old Food Law). The implementing regulations of the Old Food Law which are consistent 
with the New Food Law are still applicable. In  addition to those regulations, we are 
currently still preparing severa l new implementing regulati ons. We always make our 
best efforts to notify our trade-relate d regulations to the WTO including the 
aforementioned regulations. We  have legal obligation, which is regulated by the law, to WT/TPR/M/278/Add.1 
 
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  always take into account comments from all possible stakeholders not only before, but 
also after full implementation of any regulations. 
Page 53, paragraph 3.69 :  The Secretariat report notes that of the 23 regular SPS notifications, 
seven were notified after the measure had entered in to force.  What steps is Indonesia taking to 
improve its notification practices, given that 30% of notifications were made after they had 
entered into force?  How does Indonesia ensure that comments submitted on SPS measures are 
taken into account? 
Response: 
 Indonesia, in this case Indonesian Agricult ural Quarantine Agency as the National 
Notification Body and Enquiry Point drafti ng and preparing the Regulation of the 
Minister of Agriculture concerning The Noti fication Procedures of SPS Regulations to 
the WTO. The regulation will be dissemina ted to relevant agencies so that the 
relevant agencies will aware of the obligation of transparency. 
 Comments from various countries to Indone sian SPS regulations which have been 
notified considered and discussed with the Expert Team to be adapted to the 
conditions of Indonesia. 
3.1.8.1.1 Processed food 
Page 54, paragraph 3.71 :  The Secretariat report states, "Since 2008, import approval from the 
h e a d  o f  B P O M  h a s  b e e n  r e q u i r e d  f o r  e a c h  i m ported shipment of processed food, raw food 
materials, food additives, processing aids, and f ood ingredients."  Please explain why the National 
Agency for Drug and Food Control (BPOM) views as necessary, and requires, approvals for each 
shipment. 
Response: 
Basic Regulation: Government Regulation No. 28 year 2004, Article 38 No. (2), stated: In respect of food imported into the Indone sian customs territory, which shall be tested 
and/or inspected, such food may only be released from the customs and excise after 
obtaining the food importation approval issued by the Head of the Agency .  
Importation approval is mandatory for each shipment of food importation to monitor 
and safeguard the quality of imported food products. It also use as database for 
traceability and alert system in food control. 
NADFC issues importation approval through Indonesia National Single Window system. 
It is processed electronically throug h national electronic application ( www.e-
bpom.po.go.id ) and directly linked to customs.  
NADCF issues import recommendation letter for processed food from animal with 6 
months of validation time. This recommendation is issued prior the importation to fulfil the requirements of issuance the import approv al from Ministry of Trade as mandated in 
Law No. 18 Year 2009 on Livestock and Animal Health article 59.  
3.2.2.1 Export prohibitions Page 55, paragraph 3.78 :  We understand that Indonesia's Supreme Court has struck down 
some elements, including the export ban on minera l ore starting in 2014.  As such, what is the 
status of Ministerial Regulation No. 34 and the prohibition on mining companies from exporting mineral ore products?   
Response: 
Answer will be provided later WT/TPR/M/278/Add.1 
 
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  Page 55, paragraph 3.78, Table 3.12 :  The Secretariat reports that no rationale was provided 
for Indonesia's export prohibition for fish eggs and fry.  Please explain Indonesia's rationale for its 
export prohibitions on fish eggs and fry. 
Response: 
Referring to MOT Regulation No. 44/2012 re garding Products Prohibited from being 
exported, in fisheries and marine sectors whic h are prohibited from being exported, Fish 
Eggs are allowed to be exported. Meanwhile, expo rt prohibition for fish fry in Article 1 of 
MOT Regulation No. 44/2012, are listed on No. 1 and 4 of Annex III. The purpose of the regulation is refer to Minister of Mari ne and Fisheries Regulation No. 18/2009 
concerning on Prohibition to Export Sidat Fry  from Indonesia's Territory, due to increase 
the diversity of fish resources, fill the domest ic needs of fish fry, and fill the domestic 
needs of Sidat Fry 
3.2.2.2 Export restrictions and licensing 
Page 56, paragraph 3.37, Table 3.13: The Secretariat reports that no rationale is given for the 
export restrictions on rattan products. Please explain Indonesia's rationale and the requirements 
for the export restriction on rattan products?  
Response: 
In the framework of rattan, Indonesia consid ers the sustainability of rattanalong with 
the sustainability of forests and the environmen t , it is necessary to have a regulation 
concerning the provision on the export of rattan and rattanpoducts. Regarding the 
aspects of forestry policy in order to su pport to keep the rattan ecosystem from 
exinction due to over -exploitation of natural resources, but also to limit the over exploitation of the forest. 
3.2.2.3 Export taxes 
Paragraph 3.81 and Table 3.14 :  The Secretariat report outlines a number of export taxes, but 
provides ranges and not the exact amount of export tax levied line by line.  Is more information 
publically available containing such information?  What factors does Indonesia consider in 
implementing a specific tax rate?   
Response: 
 Yes, the exact amount of export tax are mentioned in the appendices of MOF decree 
No. 75/2012  
 The consideration of implementing a specific tax rate is to reduce  the preferences of 
exporters to export certain product by de termining export tax rates that will face 
the exporter on the equal gain by sellin g the product to domestic market or 
international market. 
Page 59, paragraph 3.82 :  The Secretariat report notes that there is some discussion of raising 
the export tax on mineral ore products to 50%.  Pl ease provide an update of those discussions.    
Response:  
The current regulation concerning the export tax on mineral ore products is Minister of 
Energy & Mineral Resources Regulation No.7  Year 2012 which stipulates a 20% export 
tax for mineral ore products.  
3.3. Measures affecting productions and trade b 
3.3.1 Government procurement 
Page 61, paragraph 3.99: The Secretariat notes that Indonesia is not a signatory of the WTO 
Agreement on Government Procurement (GPA), bu t that it became an observer in 2012.  The 
Secretariat also notes that in the previous review, Indonesia noted it would study GPA accession WT/TPR/M/278/Add.1 
 
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  further. In light of the GPA Parties' agreement on the revision of the GPA at the WTO Ministerial in 
December 2011, we urge Indonesia to begin accession to the GPA as soon as possible.  The 
addition of Indonesia to the GPA would constitute an important expansion of the GPA. Does 
Indonesia have plans to become a signatory of the GPA? 
Response: 
Becoming an observer to the WTO GPA is  very important in order to learn and 
understand the international best practi ces on government procurement among 
signatories to the GPA. Government procurem ent system in Indonesia is moving from a 
less structured to a more structured system. This effort is reflected in the process of 
establishing a better regulatory framewor k, human resource development and other 
supporting system including capacity buildin g of NPPA. Furthermore, Indonesia has to 
measure readiness of our sectors/industries be fore becoming a signatory. To accelerate 
the government reform in procurement sector, we are now recieving grants from 
Millenium Challenge Corporation USA to assist  us to modernize our procurement system. 
The success of this program is part of readiness criteria in order to able to accede to the 
GPA. 
Page 61, paragraph 3.100, 3.103: The Secretariat notes that there are no centralized 
government procurement bodies in Indonesia, and that there are a large number of national 
ministries, national agencies, provinces, regencies, municipalities, and state-owned enterprises engaged in procurement.  Paragraph 3.103 also notes that the National Public Procurement Agency 
(NPAA), established in 2007, is responsible for developing strategy, policies, and regulations.  Prior 
to 2007, was each procuring entity responsible and able to set certain conditions for procurement, such as requiring that bidders be locally-based sm all businesses?  Do individual procuring entities 
still have this authority, or must all agencies follow the regulations of the NPAA? 
Response: 
Prior to 2007, government procurement was re gulated very sparsely , we might call less 
structured system and the authority whic h developed procurement regulation was 
National Development Planning Agency (Ba ppenas) and it applied to all government 
institution including central, provinces,  and municipalities but those government 
institutions have their own procurement ac tivities (decentralized). Regarding SOEs, 
Indonesia has different policy; each SOE has different procurement regulation, based on 
their own needs. Nevertheless if SOEs received  funds from state budget to buy goods or 
services, they shall follow gove rnment procurement regulation.  
The Secretariat report further notes that Indonesi a's National Public Procurement Agency (NPPA), 
established in 2007, is responsible for developing strategy, policies, and regulations as well as 
providing advice, recommendations, and complaint resolution. Are the policies and regulations available on-line?  Are recommendations and resolutions relating to complaints that arise during 
the procurement process similarly available on-line? 
Response: 
 
The policies and regulations are available on-line through NPPA website 
(www.lkpp.go.id). But the recommendations an d resolutions relating to complaints 
during the procurement proce ss are not available on line. 
3.3.2 Legislative and regulatory framework 
Page 63, paragraph 3.109: The Secretariat notes that Indonesia is starting to develop e-
catalogues for procurement of certain goods. Please identify what goods these lists may be used 
for.  Will Indonesia also allow for foreign suppliers to be on these e-catalogues, or will participation in the e-catalogues be limited to domestic suppliers?  Is there a requirement for these lists to 
contain more than one supplier? WT/TPR/M/278/Add.1 
 
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  Response: 
At present, Indonesia just started to intr oduce the e-catalogue system, which contain 
some vehicles, some internet service provider , some agricultural machineries, and some 
medicines. In the case of vehicles, it co mes from foreign brand but the company has a 
local agent and is registered in Indonesia. For enhancing competitiveness, the lists in the e-catalogues always contain more than one supplier. In the near future, we would 
like to expand the lists in the e-catalogue system. 
Page 64, paragraph 3.111:  The Secretariat report notes procurement complaints may be taken 
to an individual procuring entity's Procurement Se rvices Unit, and that the only and final avenue 
for appeal is the head of the procuring entity.  The Secretariat notes further that the National 
Public Procurement Agency (NPPA) may provide advice  to the head of the procuring entity during 
the appeal process.  Please confirm if this is the case.  Can the NPPA review or resolve complaints?  
Has there been any consideration of allowing NPPA to handle complaints, or for other methods to 
address complaints, such as further appeals to be taken through the court system? 
Response: 
The complaint handling mechanism in th e Secretariat Note complies with the 
government procurement regulation. N PPA only has authority to provide 
recommendations and to advise in order to re solve complaints in response to a formal 
requested, while the decision is the authorit y of each procuring entities. The aim of the 
policy is to maintain and keep the independency of procuring entities. 
3.3.3 State-trading, state-owned enterprises, and privatization 
3.3.3.1 State-trading  
Page 64, paragraph 3.115 : The Secretariat Report notes "The Government is considering 
expanding Perum BULOG's mandate as a buffer agent to include sugar and soybeans."  Please provide an update on the Government's consideration of this expansion.  What process will 
Indonesia follow in making this decision? 
Response: 
The sugar and soybean buffer stocks manage d by Perum BULOG are aimed at controlling 
domestic price fluctuations. The expected qu antity will be the annual requirements of 
the Tempe/Tofu Producers Cooperatives, wh ich will be fulfilled through buying from 
domestic production and importations. Simila r to importations performed by the private 
sectors, customs duties will also be applied for the import of these buffer stocks.   
The mandate to Perum BULOG will be extended as soon as th e regulation is officially 
imposed by the concerned Ministries. 
3.3.3.2 State-owned enterprises and privatization Page 65, paragraph 3.118:   The Secretariat report notes that Indonesia has partially divested 
ownership in various industries including cement, telecommunications, mining, energy, 
pharmaceuticals, construction, highways, steel manufacturing, airlines, and banks.  Does Indonesia plan any further privatizations or divestitures in additional sectors? 
Response: 
As aforementioned within the answer in Paragraph 3.114, Page 64, privatization, 
including divestitures, is not the only primary strategy that is considered by the Ministry 
of SOEs. In accordance with Law No. 19/2003 and Government Regulation No. 33/2005 
j.o Government Regulation No. 59/2009 about State Owned Enterprise's privatizations 
procedures, the SOEs that will be privatized should fulfill the gene ral criteria indicated 
below: 
1) SOEs with competitive industrial sectors WT/TPR/M/278/Add.1 
 
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  2) SOEs with rapidly obsolescent technology. 
 
In addition, the regulations also state some specific criteria for the SOEs which are 
going to be privatized namely: 
1) The SOE doesn't perform public service obligation; 
2) In need of funding source to support growth; 
3) In need to strengthen capi tal structure/leverage; and 
4) Earns profit at least in two consecutive years for the SOEs which are going to be 
offered initially (IPO). 
 
With regards to the criteria as stated abov e and also aligned with the SOEs development 
master plan for the year 2012 – 2014, some SOEs sectors which potentially could be 
privatized namely insurance, real estate, and mining. 
Page 65, paragraph 3.119 :  The Secretariat report states: "Each year the Ministry of Trade 
determines the type and amount of imports of alco holic beverage products."  What is the process 
that the Ministry of Trade follows in making this determination?  What factors are considered in 
determining import amounts? 
Response: 
To make the determination, the Ministry of Trade hosts a meeting with all of the 
stakeholders related to ask and verify data or information needed for consideration as 
mentioned below. 
To determine them, each year, the Ministry of  Trade considers: the import realization of 
alcoholic beverages in the previous 3 years;  total amount asked by importers in their 
application for the import licenses; and foreca st of the amount of tourists coming to 
Indonesia and the needs of hotel, pub, an d restaurant for alcoholic beverages.  
3.3.4.2 Price controls 
Page 68, paragraph 3.127 :  The Secretariat report notes that the Government of Indonesia is 
involved in stabilizing the price of rice.  Does the Government of Indonesia have plans for expanding its price control efforts, such as under the new Food Law?  
Response:  
The government of Indonesia has the resp onsibility to ensure the availability, 
accessibility and affordability of staple food  commodities (e.g. rice, sugar, soybeans, 
etc.) for the people of Indone sia. Therefore, it will be possible that the government 
expands its price control effort to stabilize th e prices of these staple food commodities 
through buffer stock mechanisms without cr eating any distortions in the market. 
3.3.5 Intellectual property rights 3.3.5.3 Legislative and institutional framework 
Page 68, paragraph 3.129:  The Secretariat's report mentions that Article 7 of Indonesia's 
patent law prohibits patents on certain subject matter.  Under Indonesian law, can a person obtain a patent on a gene?  Has Indonesia granted any gene patents to date?   
Response: 
According to Article 7 of Patent Law No. 14/2001, it is clearly stated that microorganism is 
one of patentable subject matter. Gene is considered microorganism and the possibility 
to patenting gene is also stated in  the Patent Examination Guideline. 
 
Page 69, paragraph 3.134:  The Secretariat's report indicates that the National Task Force for 
Tackling IPR Infringement has worked to respond to concerns on IP enforcement.  What agency or 
agencies are responsible for online enforcement?   WT/TPR/M/278/Add.1 
 
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  Response: 
 On 25 May 2012, based on Articles 25 and 27 of the Law No. 11/2008 concerning 
Electronic Information and Transaction,  the Ministry of Communication and 
Information prohibited a number of Internet  Service Provider (I SP) that provided 
illegal download and upload services. So far, there have been 20 (twenty) illegal 
sites blocked.   
 The Ministry of Communication and Inform ation ensures that any websites will be 
blocked/closed down, as long as there is  formal request presented either from 
Indonesia or from other countries. 
 Public awareness activities to educate the public that downloading digital contents 
which are protected by the Copyrights La w is illegal have been held in some big 
cities in Indonesia such as Bandung, Ma nado and Jakarta. These public awareness 
activities also include information on how to legally online downloading. 
 
3.3.5.4 Regulatory Developments  
Page 70, paragraph 3.136:  The Secretariat's report indicates that Article 17 of Indonesia's 
Patent Law requires the patent holder to produce the patented product or utilize the patented 
process in Indonesia.  In that context, how does  Argentina view the TRIPS requirement that patent 
rights shall be enjoyable whether products are imported or locally produced? 
Response: 
The provision of article 17 of the Patent La w is aimed at facilitating the transfer of 
technology, investment, and employment. 
Page 70, paragraph 3.137:  The Secretariat Report indicates that Indonesia is working on 
amendments to many elements of its IP legal framework, including on copyright, trademarks, 
patents and industrial designs.  What is the stat us of these bills?  Is there an opportunity for 
interested parties to provide comment?  What is the timeframe for adoption of these amendments?  
Response: 
The bills are still being discussed internally in the Ministry of Law and Human Rights. 
Further, the  report indicates that the amendments will include "Key issues with respect to 
copyright reform relate[d] to implementation of the Beijing Treaty, internet piracy, and royalty 
collection."  Will any provisions addressing limitations or exceptions on exclusive rights be included 
as part of this reform?  If so, plea se further explain such provisions.   
Response: 
 
For instance, with regard to the Beijing Treaty, the draft of the Copyright Law has 
accommodated the limitation and exception as  described in article 13 of the treaty. 
 
We note that Article 74 of Indonesia's current Copy right Law provides that prior regulations remain 
effective except where they contradict with the new law (2002), and Article 75 confirms the 
continued validity of previously issued copyright re gistrations.  As part of this reform, will any 
provisions be included addressing Berne/TRIPS compatible protection for existing works, as well as 
for producers of sound recordings and performers? 
Response: 
 
Article 74 
With the effect of this Law, all regulations in  the field of Copyright that have existed on 
the date of effect of this Law shall continue  to be valid, provided that they are not WT/TPR/M/278/Add.1 
 
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  contradictory with this Law or they have not been replaced with new ones based on this 
Law. 
Article 75 
Upon the Letters of Copyright Registration, which have been issued by the Directorate 
General based on Lawno.6 of 1982 regarding Copyright as amended by Law no.7 of 1987 
and lastly by Law no.12 of 1997 and are still va lid on the date of enactment of this Law 
shall be declared to be valid for th e rest of the protection period.  
Indonesia is of the view that it is not nece ssary to include new provisions to deal with 
the copyright protection in accordance with  the Berne/ TRIPs also for producer sound 
recording and peforrmers since these are protec ted automatic ally. As stated in Article 
35 of CR Law, the copyrighted works are prot ected whether they are registered or not. 
Article 74/75 are applied only to works which are registered, of which this system also 
possible in Indonesia only for recording purposes. 
 
Article 57 of the current copyright law provides for an exemption from civil liability for non-
commercial possession of "any work," as long as the person "obtains[s]" the work "solely for his 
own need and not using it for any commercial purposes and/or any interests related to commercial 
activities."  How does Indonesia view this provision in light of Article 13 of TRIPS? 
Response: 
 
Indonesia believes that the spirit of ar ticle 13 of the TRIPS Agreement has been 
reflected in article of 57 of the Copyright Law. A non-commercial possession solely for 
his own need and not using it for any commercial purpose is not considered conflicting 
with a normal exploitation of the work and do es not prejudice the legitimate interests of 
the right holder 
In Indonesia, authors have an adaption right, but by Article 24(2) and (3) give the author (and the 
author's heirs) the right to refuse to authorize any changes including any change to the "title" or 
"subtitle" of a work regardless of whether the copyright in that work has been assigned.  Please explain how Indonesia views these provisions in light of Article 12 of Berne?  
Response: 
 
Indonesia does not see any conflict between these two articles. According to 
Article 24(2) and (3) the authors can still enjoy the exclusive right of authorizing 
adaptations, arrangements and other alterati ons of their works. Furthermore, it cannot 
be done only if the author withholds his/her permission.  This means that it is in the 
hands of the author to give or not to gi ve authorization for any changes to another 
party. 
Page 70, paragraph 3.139:  The Secretariat's report indicates that Indonesia issued compulsory 
licenses in 2007 and 2012. What regulations govern the grant of a compulsory license in Indonesia?  To what extent do the regulations provide a process for judicial review, or other 
independent review, of a decision to grant a compulsory license? 
Response: 
The provisions of Compulsory License and the use of patents by the Government 
(Governement Use) are stipulated in the Patent Law No. 14/2001. The provisions of 
Government Use are further elaborated in  the Government Regulation No. 27/2004 
concerning the Procedure of Government Use whereas Governmernt Regulation on 
Compulsory License is still in the process of formulation. 
In 2004, 2007 and 2012 Indonesia decided to issue Government Use for certain antiviral 
and antiretriviral drugs. Accord ing to article 12 of the Patent Law, the decision is final WT/TPR/M/278/Add.1 
 
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  and the  patent holder can, if it does not ag ree with the amount of compensation, file an 
objection in the form of a law suit before the Commercial Court.  
4.  TRADE POLICIES BY SECTOR 
4.3 Infrastructure 
Page 74, paragraph 4.8: The Secretariat report notes that in December 2011, Indonesia's 
parliament passed the land acquisition law.  When does Indonesia expect to issue the 
implementing presidential regulation on the new Indonesian land acquisition law?  Please further explain what the implementing regulations are expected to cover?  
Response: 
It is not easy to determine when the impl ementing regulations will be issued. Many 
detailed provision must be discussed by diffe rent ministries and agencies. However the 
government expects to accomplish this soon. 
4.4 Agriculture, fisheries and forestry Page 75, paragraph 4.11:   The Secretariat report states that Indonesia's "[a]gricultural policy 
priorities are driven by concerns over food self-sufficiency, food consumption and diversification, 
value-added and competitiveness, and the welfare of farmers."  In late 2012, Indonesia adopted a 
new Food Law that provided a framework for im plementing these policy goals, including by 
allowing imports only when there is a domestic shortage and price controls.  What is the status of implementation of the Food Law, including implementing regulations and establishment of a new 
food institute?   
Response: 
Food Law No.18/2012 has been officially i ssued on 17th November 2012. Food Law has 
been used as a reference to other regulati ons such as MOA Regulation on importation 
agricultural products 
Further, the Secretariat report notes that Indonesia introduced the National Programme to 
Increase Rice Production in 2007.  The objective of the program was to increase rice production in 
2007 through 2009.  According to the Indonesian Central Bureau of Statistics, Indonesia has had a surplus in national rice production since 2008. 
Was this program discontinued after the 2009 crop season? 
Response: 
 
National Programme to Increase Rice Production still continues 
 
How does Indonesia notify this program to the WTO?  Indonesia's most recent notification 
(G/AG/IDN/30) for 2004 to 2008 does not appear to include the National Programme to Increase Rice production. 
Response: 
 
G/AG/IDN/30 concerned about notification on Domestic Support for the period 2004-
2008 
If the program has not been discontinued, what purpose does this program continue to have given 
its objective and the surplus of rice production?   
Response: 
 
Answer will be provided later. 
 WT/TPR/M/278/Add.1 
 
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  4.5 Mining 
Page 80, paragraph 4.29: The Secretariat reports that foreign investors are required to divest a 
minimum of 51% of the equity in the mining license holding entity by the 10th year of production.  
What will be the process if there are not enough local buyers who are willing to purchase a 
sufficient number of shares? 
Response: 
The local state-owned enterprise (SOE) is ex pected to buy the shares. Other prospective 
buyer for divestment program is local government and State-owned enterprise (SOE).  
4.6 Manufacturing 
Page 81, paragraph 4.32: The Secretariat report notes that "the role of manufacturing has 
declined significantly or stagnated in its value added, its share of exports, and its share of employment."  It appears that the draft Law on Industry includes a number of provisions on how 
to counter this, including localization and technology transfer requirements, foreign ownership 
restrictions, and imposition of tariffs or quotas to protect domestic industries.  What is the status of this bill and will there be an opportunity to comment on it?  
4.6.2 Trade-related measures 
Page 82, paragraph 4.42 :  The Secretariat report provides information regarding importer 
license under Regulation No. 39/MDAG/PER/10/2010.  We understand that this regulation has 
been struck down by the Supreme Court and new re gulations have been issued.  In light of this, 
please provide an update on the status of this regulation. 
Response: 
The said regulation has been revoked by Re gulation of the Minister of Trade No. 24/M-
DAG/PER/4/2012 and which came into effect on 2 May 2012. 
The Secretariat report also notes: "A 2008 Health Ministry decree requires local and foreign 
pharmaceutical companies operating in Indonesia to manufacture locally in order to get drug approvals."  What is the rationale for this requirement?  Are there any considerations to revoke or 
amend this decree to lift the local manufacturing requirement? 
Response: 
 
Answer will be provided later. 
 
4.7 Services 
4.7.2 Financial services 
Page 85, paragraph 4.52-4.54: The Secretariat Reports that Indonesia's supervisory structure 
over the banking sector is due to change.  Pl ease elaborate on the new financial services 
authority's (Otoritas Jasa Keuangan, OJK) role in supervising all financial services institutions. What will be OJK's mandate and responsibilities and how will OJK coordinate with Bank Indonesia 
in setting banking policies? 
Response: 
Pursuant to Law No. 21 of 2011 concerning Financial Services Authority (Otoritas Jasa 
Keuangan, OJK), OJK is an independent body  that has the authority of regulating, 
overseeing, examining, and investigating  banks, capital market funds, insurance 
companies, pension funds, financing comp anies, and other financial institutions. 
In conducting banks regulation and su pervision, OJK has the authority of: 
1. Regulating and supervising the institut ion of the bank which comprise of: WT/TPR/M/278/Add.1 
 
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  a. Licensing for bank's establishment, opening new branch, companies act, workplan, 
ownership, management, human resources, bank's acquisition, merge and 
consolidation, and also revocation on bank's license.  
b. Banking activites, which includes bank's sou rce of fund, credits or funding, hybrid 
products, and other services activities.  
2. Regulating and supervising the bank soundness which comprise of: 
a. Liquidity, rentability, solvability, asset qu ality, minimum capital adequacy ratio, 
legal lending limit, ration on debt and deposit and bank's statutory reserves.  
b. Bank's report regarding bank's soundness and performance.  
c. Debtor Information System. 
d. Credit testing. 
e. Bank's accounting standard.  
3. Regulating and supervising the implementation  of prudential regulation of the bank 
which comprise of: 
a. Risk management. 
b. Good corporate governance. 
c. Principle on knowing your customer and anti money loundering.  
d. Prevention on terrorism financing and banking crime. 
4. Bank examination.  
 
Based on article 55 paragraph 2 of Law No . 21 of 2011, as of December 2013, the 
function of the bank's regulation and supervis ion shall be handed over from BI to OJK. 
Furthermore, according to arti cle 39 of Law No. 21 of 2011,  
OJK, in conducting its authority, will coor dinate with Bank Indonesia in composing 
banking regulation about, inter alia: 
a. minimum capital adequacy ratio; 
b. integrated banking information system; 
c. policy on foreign fund, foreign currency transactions, and foreign commercial loan; 
d. banking products, derivative transact ions, and other banking activites; 
e. decision on systemically important banks; and 
f. other information excluded from the regu lation of confidential information.  
g. Whereas, due to the authority mandated on  elucidation of Article 7 Law No. 21 of 
2011, OJK will support Bank Indonesia in exer cising his authority on regulating and 
supervising the macroprudential as pect of the financial industry. 
 
4.7.2.1 Banking 
Page 86, paragraph 4.58: Please elaborate on the new regulation on commercial bank 
ownership, which reportedly stipulates that all foreign banks operating in Indonesia under branch 
status must convert into legal entities.   
Response: 
The provision of Bank Indonesia Regulati on concerning commercial bank ownership 
(PBI No. 14/8/PBI/2012) stipulates the lim itations of maximum share ownership in 
Banks based on the shareholder categori es and the relationships between bank 
shareholders. This regulation applies equally  to shareholders for both domestic and 
foreign banks.  WT/TPR/M/278/Add.1 
 
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  The backgrounds of PBI No. 14/8/PBI/2012 
In order to encounter the growing dynamic of recent global and regional economic 
development, Indonesia's banking industry  needs to strengthen and enhance its 
resilience through implementation of prud ential and good corporate governance 
principles. Achieving these goals, Bank In donesia needs to regulate banks ownership 
structure by setting share of ownership maxi mum limits in order to reduce the adverse 
impact of bank operation as a re sult of shareholder domination.  
Certain provisions provided in PBI No. 14/8/PBI/2012 are among others: 
 The maximum limit of the share ownership of  the Banks for each shareholder shall be 
stipulated as follows: 
1. 40% (forty percent) of the Bank's capital, for the legal entity shareholder in 
the form of bank or non bank financial institution. 
2. 30% (thirty percent) of the Bank's capital, for the legal entity shareholder in 
the form of non financial institution.  
3. 20% (twenty percent) of the Bank's capi tal, for the individual shareholder. 
The maximum limit for the individual share ownership of the Sharia Banks 
shall be 25% (twenty five percent) of the Bank's capital.  
 The non-bank financial institutions that can hold up to 40% Bank's share, shall meet 
the criteria: 1. Permitted by their prevailing laws to co nduct long term share ownership; and 
2. Regulated and supervised by the fi nancial institution authority.  
 Foreign citizens and/or foreign legal en tities intending to become controlling 
shareholder must comply with the prescribed requirements for having a commitment 
to support economic development in Indo nesia, obtaining reco mmendation from the 
home authority for financial institution an d holding an investment grade rating as 
prescribed in the regulation. 
 
 Banks may hold shares in excess of 40% owne rship in a bank provided that it obtains 
approval from Bank Indonesia and comp lies with prescribed  requirements. The 
prescribed requiremen ts are as follows: 
1. Having the composite grade of 1 (one) or  2 (two) in the assesment of bank's 
soundness or equivalent soundness grade for the foreign bank; 
2. Comply with the minimum capital adeq uacy ratio based on risk profile; 
3. Having minimum of 6% (six percen t) of the core capital (tier 1); 
4. Obtaining recommendation from the bank's home supervisory authority for 
the foreign bank; 
5. Publicly listed; 
6. Commit to purchase equity bond issued by the acquired bank; 
7. Commit to hold the bank share for a certain minimum period; and 
8. Commit to support Indonesia economic  development through the acquired 
bank. 

 In order to obtain more than 40% ownershi p of the Bank's shares, the bank as the 
shareholder can only acquire up to 40% in the first phase. The next phase, the 
shareholder can increase their share more  than 40% prior to Bank Indonesia's 
approval and fulfil the requirement of having the composite grade of bank's 
soundness and Good Corporate Governance rating of 1 (one) or 2 (two) for the 3 
(three) period of assessment co nsecutively in 5 (five) years period starting the date 
of Bank Indonesia's approval.      
 
4.7.6.1 Legal Services 
Page 94, paragraph 4.101 :  The Secretariat reports, "A foreign law firm seeking to enter the 
market must establish a relationship with a local firm."  What forms may "a relationship" take?  WT/TPR/M/278/Add.1 
 
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  Can such relationships merge into a single firm?  Where a domestic firm and foreign firm have a 
relationship, can the foreign firm hire domestic lawyers, or must all work in domestic law go 
through the domestic partner?  Do lawyers in domestic firms lose any of their privileges when 
partnering with foreign firms?  In the relationsh ip, are firms either expected to share revenues or 
prevented from sharing revenues?  
Response: 
According to Law on foreign advocate No. 18/2003, article 23 stated as follow: 
a. Foreign lawyer shall not appear in courts , undertake legal proceedings and establish 
law firm or representative office in Indonesia 
b. L a w s  f i r m  a r e  a l l o w e d  t o  h i r e  f o r e i g n  l a w y e r  a s  a n  e m p l o y e e  o r  e x p e r t  o n  
international law on the basis of govern ment approval with the recommendation 
from advocate organization 
c. Foreign lawyer obliged to transfer knowledge  to education and legal research on the 
free charge basis 
Foreign law firms are not allowed to establis h their firm in Indonesia, however in the 
practice, some of foreign law firms affiliate with local law firms.   
Page 94, paragraph 4.102 :  The Secretariat reports that foreign lawyers are obliged to provide 
free services.  Are domestic lawyers likewise expected to provide free services?  If not, why not? 
Response: 
Foreign lawyers are obliged to provide pro bo no services.  The obligation to provide pro 
bono services is intended to support efforts to increase the quality of Indonesian 
lawyers. This obligation is pursuant to article 22 law on foreign advocate No. 18/2003. 
4.7.6.2 Audit and accounting services 
Page 94, paragraph 4.104 :  The Secretariat reports that, "Foreign accounting firms must 
operate through technical assistance arrangements with local firms."  What are the "technical assistance" arrangements?  Can the two firms share revenues?  
Response: 
Technical assistance arrangement'' mean th at cooperation between foreign and local 
accounting firms must involve an agreement regarding a mutually agreed methodology 
of rendering/performing professional accoun tancy services. In other words, foreign and 
local accounting firms must show that th e cooperation arrangement facilitates and 
promotes transfer/sharing of profession al knowledge, expertise, and competence 
between the firms and their professionals.  
Revenue sharing is left to the fi rms to decide between themselves. 
4.7.6.4 Health services 
Page 95, paragraph 4.106 :  The Secretariat report notes that "Hospital services are mostly 
closed to foreign investment according to Indone sia's Negative List for Foreign Investment."   
What is the policy rationale for closing foreign investment in health services? 
Response: 
Indonesia has not closed health services to  foreign investment. As per regulations, 
foreign entities may enter into joint ventures  with local partners. Ownership of up to 
67% and above entails a majority stake for the foreign partner, allowing it to nominate the Board of Directors, except for the po sitions of Human Resource Director and 
Personnel Manager. With regards to health services, Indonesia's 2010 Negative List for 
Foreign Investment allows up to 67% foreig n ownership for Hospital services (only for 
specialist and super specialist medical care/m ore specific than specialist medical care) 
in all regions of Indonesia. Under the Mini ster of Health Decree 317 of 2010 concerning WT/TPR/M/278/Add.1 
 
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  Foreign Health Professional Empowerment, fo reign health professionals are allowed to 
enter Indonesia. However, as is the common practice elsewhere, the qualification and 
competency of foreign health professionals entering the country must adhere to the 
national standards. With the consideration of  safeguarding patient safety, professional 
regulatory authorities (PRA) in each country  have determined crit eria to ensure the 
competency of foreign health professionals. In addition, as a developing country foreign 
practitioners are expected to bring about a dditional benefits, such as transferring 
knowledge, skills and technolo gy to local practitioners 
4.7.6.5 Education services 
Page 95, paragraph 4.108 :  The Secretariat report states "The Law on Education Legal Entities 
does not allow foreign investment in higher education in the form of a limited liability company, in conflict with provisions of the existing Inve stment Law."  Please comment on the apparent 
contradiction in investment policy in higher education as indicated by the Secretariat's statement. 
Response: 
There is no 'Law on Education Legal Entities ' at higher education sector. The two laws 
governing education are : The Law No. 20, 2003 : National Education System (Official 
Gazette of Indonesian Republic 2003 No. 78, Appendix No. 4301), and its derivation 
regarding the National Education System at hi gher education is regulated by Law No. 12, 
2012. 
Nevertheless, Indonesia has a non-discri minatory requirement for all education 
providers, both foreign and domestic, to be  in the form of non-profit foundations 
("yayasan"). This does not contradict the negative list and in fact foreign entities may explicitly establish certain higher education services in accordance with the provisions 
of Law No 12 of 2012, provided they meet the requirements contained therein. 
4.7.6.6 Logistics and postal services Page 95, paragraph 4.109 :  What is the policy rationale for placing equity caps and 
geographical limitations on foreign express delivery services, in contrast to global standards?  Are 
there plans to eliminate such restrictions? 
Response: 
Regarding the rationale of the new law's geographic restrictions on foreign and joint 
venture postal services providers, Indonesia b e l i e v e  t h a t  i t  i s  m a d e  o n  t h e  n e e d  t o  
develop these services outside the main island of java in order to ensure that there is 
sufficient domestic connectivity 
4.7.6.7 Audiovisual services 
Page 95, paragraph 4.110 :  The Secretariat report states "Foreign investment is prohibited in 
broadcast and media sectors, including film and video production and distribution, and cinema construction and operation."  At a time when countries are fiercely competing for foreign 
investment in local film and video production, why does Indonesia prohibit such investment?   
Does the 2009 New Film Law supersede the 2008 Regulation?  Does the foreign investment prohibition on "broadcasting" subscription services  apply to non-broadcast, internet audio-visual 
subscription services? 
Response: 
‐ The government prohibits such an investme nt in local film and production due to 
religious reasons as well as to maintain In donesian social-culture. It is one of the 
means for controlling negative impacts of unexpected culture from overseas. 
‐ Law No. 33/2009 is not the amendment of Ministerial Regulation No. 55/2008, but 
replacing the Law No. 8/1992. WT/TPR/M/278/Add.1 
 
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  Further, the Secretariat report notes that  "the Minister of Culture and Tourism issued a regulation 
requiring all local and imported films – both thea trical prints and home video copies – to be 
duplicated locally, with penalties on exhibitors for failing to do so."  The Minister of Culture and 
Tourism's regulation requiring all local and imported films to be duplicated locally would negatively 
affect foreign motion picture companies' release and distribution schedule for the country, and would raise concerns over existing local facilities' ability to handle its volume and quality output 
requirements as well as lab and duplication facili ty security issues. Is the Indonesian Government 
considering amending this regulation to remove the local production requirements?  
Response: 
Amendment of any regulation is possible if it is irrelevant with the current situation and 
the Government has decided to amend the regulation in question.   
II. Questions on the Government Report (WT/TPR/G/278) 
2. Economic and Trade Environment 
2.1 Main economic and policy development  
Page 5, paragraph 2.8 :  I n d o n e s i a  r e p o r t s  t h a t  i t  w i l l  " a m e n d  o r  r e m o v e  ( d e b o t t l e n e c k i n g )  
regulations that inhibit the implementation of investments."  While this is an encouraging 
statement, we are concerned that in recent years Indonesia has introduced and is implementing a 
large number of new trade and investment restrictions, including import licensing requirements, trading rights limitations, preshipment inspection requirements, local content and domestic 
manufacturing requirements, and export restrictions including taxes and prohibitions, that make it 
more difficult for businesses and investors to operate in Indonesia.  Similar restrictions appear to be under consideration in the draft Law on Trade and Law on Industry.  What steps are being 
taken or what mechanisms are in place to ensure that Indonesia adopts policies that facilitate a 
more open and transparent trade and investment regime?      
Response: 
In view of the country's investment polic y, the government runs many and various 
promotional event, awareness raising, inte rnational business, bilateral, regional, 
multilateral forums etc. We believe these means of communication are the way to a 
more open and transparent investment regi me. Stakeholders are invited to share and 
give inputs, possible solution, and make  recommendation to the government.  
2.2 Financial sector 
Page 6, paragraph 2.12 :  Please provide further explanation of the Single Identity Number.  Will 
this impact Indonesia's current fuel subsidy?  
Response: 
Answer will be provided later. 
3.  International Trade Relations  
3.1.2.6 Aid for Trade 
 Page 10, paragraph 3.12 :  Indonesia reports that it provided aid for trade to a few LDCs 
through the South-South Cooperation mechanism.  Can Indonesia elaborate on such aid provided; 
including to which countries in 2010-2012 it has provided aid for trade? 
Response: 
Answer will be provided later. 
5.  Future Policies Directions 
Page 15, paragraph 5.1 : Please clarify what is meant by "encourages utilization of various 
trading schemes."  WT/TPR/M/278/Add.1 
 
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  Response: 
Answer will be provided later. 
Page 15, paragraph 5.2 : Please describe the specific measures Indonesia has adopted or is 
considering to "increase export facilitation." 
Response:  
Answer will be provided later 
Page 15, paragraph 5.4 : Please describe the specific measures that Indonesia is implementing 
or considering to "increase value added and expanding value chain for industrial production processing. Furthermore, what policy instruments is Indonesia using to strengthen the national 
economy? How is Indonesia ensuring that as it promotes development of its domestic market that 
its policies are WTO consistent? 
Response: 
In line with Indonesia second Medium Term  Development Plan (RPJMN II). Government 
of Indonesia has also initiated Masterplan for Accelerating and Expanding Indonesia 
Economic (MP3EI). Under Indonesia's 2025 Vision, to be one of the world developed 
country, one out of three Indonesia's goal is to increase the value added and expand the 
value chain for industrial production processe s. This will be implemented by developing 
downstream industries especially in export base raw material commodities (mineral and 
coal. etc.). This downstream policy is one po licy instrument to strengthen the national 
economy in order to improve value added of ex ported products leading to the increase in 
the value of export and trade surplus. 
Among recent policies taken to increase va lue added of Indonesian export products 
were: 
 Regulation of Minister of Energy an d Mineral Resources No. 11/2012 concerning 
Increasing Minerals Value-added through Proc essing and Refining. This regulation is 
the implementation of Law no. 4 of 2009 concerning mineral and coal mining.  
 Regulation of Minister of Trade No. 29/ M-DAG/PER/5/2012 concerning Provisions of 
Export Restrictions of Mining Products. Ac cording to this regulation, exporters of 
metal minerals, non-metal-mineral, and rock s must be registered and obtain export 
license for their operation. Furthermore, exports of mining products have to be 
verified prior to the export process. 
 
The Government of Indonesia will continue its efforts to strengthen national economy by 
creating a sound business and investment cl imate. Government also promotes growth 
centres and develops the local economy in the region, as well as promoting inclusive 
growth. Under MP3EI, the focus of developm ent is classified into 8 main programs 
(agriculture, mining, energy, industrial, ma rine, tourism, telecommunication, and the 
development of strategic areas), and 22 ma in economic activities. Programs and 
activities will be implemented through 3 st rategies of MP3EI, namely: (i) Economic 
Corridors, (ii) National Conn ectivity, and (iii) Human Reso urces as well as Science and 
Technology 
In order to be complying with WTO agreement,  all domestic trade and industrial policies 
that may affect international trad e are notified to the WTO.    
III: Other Questions 
Local Content Requirements:   We remain concerned about local content requirements in a 
growing number of sectors, including telecommuni cations, mining and oil and gas.  The draft 
Industry Law also includes significant localization and technology transfer provisions.  Please WT/TPR/M/278/Add.1 
 
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  explain whether Indonesia plans to eliminate su ch requirements.  If no, please explain how 
Indonesia views such requirements in light of the TRIMs agreement.   
Page 15, paragraph 5.2 : Please describe the specific measures Indonesia has adopted or is 
considering to "increase export facilitation." 
Response: 
Answer will be provided later. WT/TPR/M/278/Add.1 
 
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  REPLIES PROVIDED AFTER THE MEETING 
BRAZIL 
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT 
IV - TRADE POLICIES BY SECTOR 
(4). Agriculture, Fisheries and Forestry 
 Page 75 paragraph 4.11 and page 77 paragraph 4.13 
 
The report by the Secretariat states that Indonesi an "agriculture policy priorities are driven by 
concerns over food self-sufficiency, food consumption and production diversification, value-added and competitiveness, and the welfare of farmers" and that "import requirements imposed for food 
safety, SPS, and cultural reasons appe ar to have become more stringent". 
 Questions: 
 
1. Please indicate how Indonesia intends to harmonize its concerns over food self-sufficiency 
with free trade of food. 
2. Please explain why import requirements impose d for food safety, SPS and cultural reasons 
became more stringent and indicate whether conc erns over food self-sufficiency were taken 
into account in redefining those requirements." 
 
Response: 
 
1. Indonesia believes that the co rrect terms is “self-reliance” not “self-sufficient”. It 
means that Indonesia will make effort s to improve the ability to produce 
agricultural products to meet its demand. 
2. Indonesia adopts policy of regulating the im portation of agricultural products that 
will promote the goal of self-reliance thro ugh implementations of such regulations 
that take into account the food safety, SPS and cultural reasons. The importation 
of agricultural product shall be permitte d although domestic production and supply 
may be sufficient. 
 
CANADA  
Part IV: Trade Policies by Sector 
4.5 Mining; Paragraph 4.29, Page 80  
It is noted that Indonesia’s Government Regulation No. 24/2012 (amending Government 
Regulation No. 23/2010) on the Implementation of Mi nerals and Coal Mining Activities will require 
foreign investors in the Indonesian mining sector to divest a minimum of 51% of the equity in the mining licence holding entity by the tenth year of production, in accordance with a divestment 
schedule.  It is also noted that the central Government and provincial government or city/county 
government will receive first right of refusal to pu rchase the divested shares, before the shares are 
offered by auction (in order of priority), to: a state-owned enterprise, and regional state-owned 
enterprise or a national company. 
 Does Indonesia intend to retroactively apply this to entities holding a license prior to the 
implementation of Government Regulation No. 24 /2012 or only apply this to new and future 
mining licenses, granted after the implementation of Government Regulation No. 24/2012?  Response: 
 Indonesia will apply this regulation to enti ties holding lisence prior to Government 
Regulation. 
 
How will the value of the divested shares be determined when offered for sale to the various levels of government? 
 WT/TPR/M/278/Add.1 
 
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  Response: 
 
Indonesia is currently drafting the legislation regarding this matter. 
CHILE 
 
Párrafo 2,23/2.24 , página 8-9 2.4. Iniciativas en materia de crecimiento verde 
“Indonesia está realizando los estudios técnicos necesarios para elaborar la "Estrategia de 
desarrollo con bajas emisiones de carbono (Oportunidades y políticas de reducción de las 
emisiones: el sector manufacturero)". El estudio sobre las bajas emisiones de carbono y las 
consiguientes opciones de desarrollo demostrarán que una sólida gestión del medio ambiente, la reducción de las emisiones, la eficiencia económica y el crecimiento son objetivos compatibles, y 
pondrán de manifiesto su importancia para la sostenibilidad del proceso de desarrollo de 
Indonesia.” 
“Indonesia también está intentando reformar la política económica y fiscal para cumplir el objetivo 
de lograr una economía verde. Hay varios estudios en marcha impulsados por el Gobierno para examinar las posibilidades de reducir las emisiones, a saber: i)establecer unas condiciones 
favorables que se sustenten en mecanismos de financiación innovadores y en reformas de políticas 
(política fiscal y de fijación de precios, normas, educación y formación); ii)crear una asociación entre el sector público y el privado que incluya mecanismos de financiación de las inversiones 
verdes iii)situar la inversión verde en el centro de los paquetes de estímulo y del presupuesto 
ordinario del gobierno; y crear unas condiciones generales favorables (acuerdos comerciales, sobre derechos de propiedad intelectual, sobre ayuda oficial para el desarrollo, sobre transferencia de 
tecnología y sobre medio ambiente).” 
Pregunta: ¿Podría la Indonesia desarrollar qué enfoques están evaluando en el tratamiento de los temas 
ambientales en los acuerdos de comercio?  
Response: 
Actually, Indonesia doesn’t has any specif ic policy on “Low Carbon Development 
Strategy” , but we has National Action Plan  for green house gases Emissions Reduction 
that is articulated through Presidential De cree No. 61 year 2011. This Presidential 
Decree has identified sectors that should re duce 26 % of green house gas emission from 
Business as usual with our own resources and 41 % with international aid until 2020. The National Action Plan for green house gases Emissions Reduction also set up the 
equivalent of quantity of CO2 that should be reduced on each sectors.  In term of 
treatment of environmental issues in trade agreements, Indonesia always refer to all regulations included National Action Plan  for green house gases Emissions Reduction 
and involves stake holders included Ministry of Environment to make it inline for sure.      
Texto WT/TPR/S/278 
3 POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 3.3 Medidas que afectan a la producción y al comercio 
3.3.5.4 Cambios en la reglamentación (2007-2012) 
Párrafo 3.138, página 75-76 
“Durante el período objeto de examen, Indonesia recurrió en dos ocasiones (en 2007 y en 2012) a 
licencias obligatorias que permitieron al Gobierno explotar patentes farmacéuticas para producir 
ciertos medicamentos antivíricos y antirretrovirales. En todos los casos, el Gobierno utiliza esas patentes hasta que expiran”.  
Pregunta : 
Chile agradecería mayor información respecto al sistema de indicaciones geográficas. En particular 
agradecería mayores antecedentes respecto a la titularidad de las indicaciones geográficas, WT/TPR/M/278/Add.1 
 
- 168 - 
 
  quienes pueden solicitar una indicación geográfica una vez que esta se incorpora al registro y que 
procedimientos de observancia de estos derechos contempla su legislación.  
Response: 
Regarding in article 56 paragraph (2) Law, no.15 year 2001 jo article 5 paragraph (3) 
Government Regulations no. 51 year 2007 that GI shall be protecte d after registration, 
based on an application filled by; 
a. an institution that represents the society  in the area which produces the goods 
concerned 
b. an institution that is given the authority to do so; and  
c. Groups of consumers of the goods concerned. 
 Pregunta: 
Asimismo, Chile agradecería mayor información sobre este punto en relación con el reconocimiento 
de indicaciones geográficas extranjeras.  
Response: 
So far, there are 3(three) foreign GIs th at have been registered in DGIPR :  
a. Champagne (France,2009),  
b. Pisco (Peru, 2010),  
c. Parmigiano reggiano (Italy, 2011) 
 
Pregunta: 
Chile agradecería una clarificación sobre las IG’s ya reconocidas, como se señalan en la nota al pie 
n°83: “kopi arabika kintamani bali (café) (2008 ); champán (2009); mebel ukir jepara (muebles); 
lada putih muntok (especias); kopi arabika gayo (café); pisco (2010); tembakau hitam sumedang 
(tabaco); tembakau mole sumedang (tabaco); pa rmegiano reggiano; susu kuda sumbawa (leche); 
kangkung lombok (hortaliza); madu sumbawa (miel) (2011); kopi arabika flores bajawa (café) 
(2012); Purwaceng Dieng (bebida a base de hierbas) (2012); Carica Dieng (fruta) (2012); y Vanili 
Kepulauan Alor (vainilla) (2012)”, respecto a cuáles son nacionales y cuáles internacionales y de qué país son estas últimas.  
Response: 
 GIs registered in DGIPR : 
1. Coffee Arabika Kintamani Bali (2008) 
2. Champagne (2009) 
3. Carve furniture Jepara (2010) 
4. White pepper Munthok 
5. Coffee Arabika Gayo 
6. Pisco  
7. Black tobacco Sumedang (2011) 
8. Mole tobacco Sumedang 
9. Parmigiano Reggiano 
10. Horse Milk Sumbawa 
11. Kale Lombok 
12. Honey Sumbawa 
13. Rice Adan Krayan (2012) 
14. Coffee Arabika Flores Bajawa 
15. Purwaceng Dieng 
16. Carica Dieng 
17. Vanilla Island Alor 
18. Coffee Arabika Kalosi Enrekang (2013) 
19. Potato Cilembu Sumedang WT/TPR/M/278/Add.1 
 
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  Furthermore, for the International registration according to the Government regulation 
No. 51 of 2007 related to Geographical Indicati ons Article 20.1 stated that an application 
filed by the applicant who permanent resident  or domiciled outside the territory of the 
Republics of Indonesia should applied throug h Indonesia embassy or through diplomatic 
representative in Indonesia.  
20.2 The application referred to in paragr aph (1) may only be registered if the 
Geographical Indication has gained recognit ion and /or registered in accordance with 
the applicable regulations in the country of origin.  
20.3 The provisions concerning administrati ve examination petition referred to in 
Article 7 shall also apply to external application country. 
20.4 Where an application from abroad have done the requirements as referred to in 
paragraph (1), (2), and (3) Directorate Gene ral has decided that the application can be 
approved for registration and conduct to announce as referred to in Article 11.  
20.5 Directorate General can rejected applicat ion from abroad in terms of requirements 
referred to in paragraph (1), (2) and/or 30 is not fulfilled.  
20.6 Referred to in paragraph (5) that refusal shall be notified to the applicant through 
his authority or diplomatic re presentative in Indonesia within 30 (thirty) days from the 
date of the refusal.  
 
20.7 The procedure of announcements, objections, and objections with appeal in this regulation shall apply mutatis mutandis  against an application from abroad.  
20.8 The application from overse as that registered given protection in accordance with 
provisions in this regulation. 
Regarding to Article 25 that GIs violations include: a. GIs use for commercial purposes, either dire ctly or indirectly on goods that not 
fulfilling the requirements books 
b. Use of a GI mark for commercial purposes, ei ther directly  or in directly on goods, 
of goods that are protected or not protected with intention; (1) to show that the 
goods are comparable to the quality of g oods protected by GI, (2) to get benefit 
from the use of, or (3) to get benefit from the reputation of GI,  
c. Use of GI that could mislead the public wi th respect the Geographical origin of the 
goods; 
d. GI use without right even though if the place of origin of goods stated; 
e. Impersonation or other misuse that can be  misleading with respect to place of 
origin of goods or goods that reflecte d to the quality of the statements can 
contained on : 
1. Wrapping or packaging; 
2. Information in advertising about the item; 
3. Information which can be misleading ab out the origin of goods (in terms of 
packaging goods in a package), or  
4. Other actions which may mislead the public about the truth of the origin 
goods. 
 
Párrafo 3.140, página 76 
 “Se han introducido dos reglamentos con el objetivo de impedir la piratería de medios ópticos. Uno 
de ellos restringe las importaciones de películas cinematográficas con el objetivo de impedir la 
piratería de películas y mejorar la aplicación de la Ley de Censura. Sólo pueden importarse WT/TPR/M/278/Add.1 
 
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  películas de celuloide en forma de película original en negativo o copia de película en negativo 
(reproducción de la película original en negati vo), pero puede incluirse una copia del producto 
acabad. Este reglamento ha sido algo polémico, ya que se afirma que, al exigir que las películas y 
los vídeos de aficionados sean de fabricación indonesia, crea un obstáculo oneroso para el acceso 
al mercado. El segundo reglamento, el Decreto N°11 del Ministerio de Comercio de 2010, introduce un mecanismo de supervisión de las importaciones de ciertos productos, como máquinas 
y aparatos, materias primas y discos ópticos (vírgene s o no), con fines de protección de los DPI”.  
Pregunta: ¿Qué otros productos se encuentran incluidos en la regulación para prevenir la piratería de medios 
ópticos? 
Response: 
1. According to The Government Regulation No.29 of 2004 related to Optical Disc in 
Article 2 paragraph 1 (one) including: type s of optical disc; compact disc, compact 
disc digital audio, compact disc Read  only Memory /CD-ROM, compact disc 
Recordable/CD-R), compact disc Re-Write able, compact disc write once, Digital 
video/versatile disc/DVD, di gital video disc-read only memory, digital video disc 
random access memory, digital video disc re writeable, laser disc , mini disc, video 
compact disc, china video disc , super video compact disc, compact disc interactive, 
compact this photo, digital versatile disc  recordable and super audio compact disc. 
2. Based on Minister of Regulation No. 11 in 2010, the commodities that are subject to 
import licensing are machinery, raw mate rials and optical discs (blank or not). 
4. POLÍTICAS COMERCIALES, POR SECTORES 
4.7.4 Transporte 
4.7.4.3 Transporte marítimo 
Párrafo 4.91, página 99.   
“De conformidad con el artículo 8 de la Ley de Transporte Marítimo, deben ser empresas navieras 
nacionales las que lleven a cabo el transporte marítimo en el país, utilizando para ello 
embarcaciones con pabellón y tripulación indonesios. Análogamente, está prohibido que las 
embarcaciones extranjeras transporten pasajeros o mercancías entre islas o puertos del territorio 
de Indonesia. (…)” 
Pregunta: 
¿Podrían explicar en mayor detalle el “Principio de cabotaje”  que rige en Indonesia?, y ¿En qué 
forma afectaría a los extranjeros? 
Response: 
In accordance with Article 8 of Law no. 17 Ye ar 2008, Domestic shipping shall be carried 
by national shipping company using Indonesian-flagged vessel and manned by 
Indonesian seafarers. Foreign Vessels are pr ohibited to carry passenger and/or goods 
between islands and ports in the territory of Indonesia. Foreign vessel can perform 
other activities that do not include activities  of transporting passengers and/or goods in 
the domestic sea transportation in the territo ry of Indonesia as long as the Indonesian 
flagged-vessels are not available or not sufficien tly available. Other activities consist of : 
a. Oil and gas survey (end  by December 2014); 
b. Drilling (end by December 2015); 
c. Offshore Construction (end by December 2013 for derrick/crane, 
pipe/cable/subsea umbilical riser flex ible laying barge/vessel and end by 
December 2012 for Diving Support vessel); 
d. Supporting Offshore Operation (end by December 2012); WT/TPR/M/278/Add.1 
 
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  e. Dredging (end by December 2013); 
f. Salvage and underwater Work (end by December 2013). 
The foreign vessels for the activities above shall be operated by national shipping 
company and the usage of the vessel requires  minister’s permission. It is given for 
maximum period of 3 (three) months, and it  can be extended after the evaluation. 
CHINA 
 PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
3. TRADE POLICIES BY MEASURE      
Page 34 (Para 3.13) 
 
“Indonesia's rules on customs valuation are contained in Article 15 of Customs Law No. 17 of 2006. Indonesia uses the transaction value as the basis for customs valuation. When this is not 
feasible, Indonesia uses the sequential methods set out in the Customs Valuation Agreement.  
Information was not available on use of the various customs valuation methods. The authorities 
indicated that a database of market prices is regularly updated.”  
Questions: Could Indonesia please explain the reasons for the unavailable information on use of the various 
customs valuation methods? 
Response: 
Customs officers who examine customs declarat ion will later on state on the paper work 
of what kind of customs valuation meth od being used to determine the customs 
valuation. 
Page 43 (Table 3.6 VAT rates, 2012) 
General rate 
 10% 
VAT exemptions for services 
 Medical, social and religious services, postal services;  certain financial and 
insurance services; educational services ; entertainment serv ices performed by 
artists and entertainers; radio and televisi on broadcasting services (other than 
advertisements); public transportation  services;  manpower and recruitment 
services; hotel and boarding house se rvices; government services; parking 
services;  public telephone (coin) serv ices;  and food and catering services. 
Does the VAT preferential policy apply to all serv ice providers in the respective sectors or have 
limitations in this respect? Does it appl y to relevant foreign-funded enterprises? 
Response: 
This policy applies to all services providers in the respective sector as  well as to relevant 
foreign-funded enterprise. 
Page 55 (Table 3.12 Export prohibitions, 2012) 
Product Rationale 
Raw Rubber  Not provided 
Certain wood products including raw and 
semi-processed rattan  Support domestic proc essing industry an d prevent smuggling 
Fish eggs and fry  Not provided 
Certain scrap iron and metal  Implementation of commitments under the Basel Convention 
Certain mining products Environmental protecti on.  Implementation of commitments under the 
Basel Convention    
Various animals, birds, reptiles, insects, 
fish, crustaceans, and plants    Implementation of commitments under the CITES Convention   
Sand, soil and top soil  Environmental protection    
Subsidized urea fertilizer  Improve the effective control of fert ilizer from abuse and diversion, and 
maintain the national availability of fertilizer    WT/TPR/M/278/Add.1 
 
- 172 - 
 
  Questions: 
 Are there restrictions on the domestic use and production in Indonesia of these products prohibited 
from being exported? Why? 
Response: 
The objective is to protect environment agains  over exploitation, as well as for national 
security and safety reasons. Products covere d include raw rattan, sand, soil and top soil, 
and some minerals. 
Page 61 (Para 3.97) 
“The state-owned Asuransi Ekspor Indonesia (ASEI) offers export credit insurance to exporters for 
all products other than oil and gas, in the event that they do not receive payment from the buyer, 
and to banks, in the event that exporters fail to repay their loans. Commercial and political risks are covered. ASEI may reimburse up to 85% of losses, while the remaining 15% is borne by the 
exporter. The premium is calculated based on  country repayment risks; terms of payment 
associated with the transaction; and the credit term. In May 2012, ASEI established a Sharia 
Insurance Unit, offering sharia compliant insurance products.  The authorities noted that there is 
no regulation forbidding domestic insurance companies (including ASEI) from providing their services to foreign clients.”  
Questions: 
Could Indonesia please provide more information on ASEI’s policies for export of domestic 
enterprises? Also, could Indonesia please inform ASEI’s business size, customer coverage and 
claims? 
Response: 
To give you a brief explaination on the stat us, function and scope of business of ASEI, 
please be informed of the following: 
a. ASEI is a State-Owned Enterprise and as su ch is governed by the Law No. 19 Year  
2003 regarding State  Owned Enterprises. 
b. ASEI is the Export Credit Agency (ECA) of  the Republic of Indonesia, by virtue of 
Government Regulation No. 1 Year 1982 and Government Regulation No. 20 Year 
1983, made in pursuant to the Law No. 32 Year 1963 regarding Movement of 
Foreign Exchange. 
c. At the same time, ASEI can also act as a general Insurer under Law No. 2 Year 
1992 regarding Insurance Business. According to  this Law, ASEI is classified as a 
“non-life” insurance company, which me ans that we can sell/provide non-life 
insurance products to the Indonesian market. That is why we also provide 
Domestic Credit insurance, Domestic Cred it Guarantees, Surety Bonds and General 
Insurance 9aside from our core pr oduct “export credit insurance”.) 
In terms of the policies, we implement for ou r export credit insura nce business, please 
be informed of the following: 
 The transactions we insure, to date, are all short-term export transaction (up to 
180 days payment terms); 
 We do not have a portfolio yet for export  transactions that are medium-long term 
(above 1 to 15 years); 
 As a common clause under the short-term credit insurance policies issued by all 
ECAs around the world, we insure non –p ayment of export caused  by commercial 
and political risks; WT/TPR/M/278/Add.1 
 
- 173 - 
 
   We exclude coverage of exports to countries that we consider “high risk 
countries”. We adopt the country risk eval uation results of other ECAs as well as 
our Reinsurer(s); 
 Before we insure an exporter, we cond uct our due dilligence and underwritting 
analysis on the exporter’s buyer. If ba sed on our findings, the buyer’s financial 
information is deemed unsatisfactory, then  we shall reject the exporter’s request 
to insure their exports to that particular buyer. 
In terms of ASEI’s business size, please be informed the following: 
 As mentioned above, ASEI not only provides  “export credit insurance” as we also 
provide general insurance, domestic cred it insurance and guarantees, and surety 
bonds; 
Please see here below the size of our busi ness during the last 5 years for all of our 
business lines: 
CLASS OF BUSINESS (in Billion Rupiahs) 
TOTAL SUM INSURED PREMIUM 
Export Credit Insurance 4,214 40 
Domestic Credit Guarantee 5,828 102 
Surety Bonds 6,969 50 
General Insurance 982,317 655 
Total 999,328 847 
* Please note that our general insu rance business is our largest portfolio  
 Since we have other business lines than ex port credit insurance, our customers are 
not only exporters. 
a. For domestic credit insurance, our custom ers are mostly manufacturers (domiciled 
in Indonesia) that sell th eir products domestically; 
b. For domestic credit guarantees, all of  our customers are banks (domiciled in 
Indonesia); 
c. For surety bonds, our customers are m ostly banks and construction companies 
(domiciled in Indonesia); 
d. Customers for our general insurance busi ness consist of a variety of customers 
(shipping companies, office, banks, indivi dual consumers, etc, all domiciled in 
Indonesia) 
In terms of claims for export credit insuranc e, please kindly find below the amount of 
claims we paid during the last 5 years: 
2008 
Buyer Country Claim Paid 
Stolp International Netherland 162,025,883.70 
Tiffani Italian Impor Ceramic USA 43,828,920.53 
 WT/TPR/M/278/Add.1 
 
- 174 - 
 
  2009 
Buyer Country Claim Paid 
KTV Global QQ KEC Astron Korea 1,169,681,760.00 
PD Manufacturing Singapore 791,652,088.30 
UK Trading Places UK 198,823,476.67 
Standard Snacks Rumania 111,268,777.60 
PETRON GOLF UK 406,878,350.93 
Petron Golf Recovery Expense UK 8,849,869.70 
Durasafe Clain Expense USA 234,924,831.37 
 
2010 
Buyer Country Claim Paid 
BEAS ENTERPRISES Singapore 46,714,610.25 
CARAMEL MANUFACTURING Singapore 505,574,496.25 
Durasafe Claim Expense USA 206,336,975.98 
Yan’s International (Miwafuton) USA 275,144,721.20 
House of Asia USA 121,884,058.50 
Tech Well Plastic Co Thailand 322,179,558.75 
 
2011 
Buyer Country Claim Paid 
Compensados LFPP Brazil 31,738,113.40 
Berriola Salvatore Italy 190,535,912.29 
Taipan Footwear Australia 892,965,937.14 
 2012 
Buyer Country Claim Paid 
Habitat UK UK 174,931,304.24 
EM Euro Germany 696,131,495.52 
Vidya Electrotech India 1,312,636,599.38 
Beng Electronik Indonesia 1,536,840,000.00 
Is Indonesia’s export credit insurance market open to foreign companies? If yes, how many foreign 
credit insurance institutions (including subsidiaries, branches and representative office) are now in 
Indonesia? What were the market shares of thes e foreign institutions in Indonesia in 2012? Has 
ASEI cooperated with any of the foreign institutions? If yes, what are the forms of the cooperation and how does ASEI view the cooperation? 
Response: 
To the best of our knowledge, the only state- owned insurers that provide export credit 
insurance are ASEI and Indonesia Eximbank. WT/TPR/M/278/Add.1 
 
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   As for foreign credit insurance companie s, we are aware that some of them have 
entered our market by way of signing fron ting cooperation deals with local/private 
insurance companies. The foreign insurance companies that are operating in 
Indonesia (through local insurance comp anies) are Atradius Insurance, Euler 
Hermes and Coface. 
 We are also currently in cooperation with AIG Singapore (formely known as Chartis) 
to cover their client in Indonesia that se lls their product domestically and abroad, 
however our cooperation is not a  blanket cooperation scheme such as the other/private insurers have with Atradius  Insurance, Euler Hermes and Coface. Our 
cooperation with Chartis is a facultative reinsurance cooperation  which applies to 
1 project or the sales of 1 policyholder only . For the majority of our export business, 
we insure the exports ourselves as this is the mandate given to us by the 
Indonesian Government. 
 In terms of market share, we do not have sufficient information what our market 
share is since the foreign credit insurers  are newly established in the Indonesian 
market. They have been insuring some Indo nesian clients in the past, but most of 
them were doing it sporadically (on a case-by-case basis) and most of them 
retracted their business during the Asia Fina ncial Crisis, so it is rather difficult to 
compare our market share against th eirs at this moment in time. 
In terms of our market share for our expo rt business vis-a-vis Indonesia national 
export in 2012, please be informed that the total exports we insured amounted to 
IDR 4,2 trillion which is  approximat ely 0.3% of our national export 
±IDR 147 trillion. 
Could Indonesia please inform in detail the composition of the Sharia Insurance Unit as well as its 
business scope? Has Sharia Insurance Unit had special considerations on the insurance rate, coverage and size and premium? What are differe nces between Sharia Insurance Unit and other 
export credit institutions (e.g. Indonesia Exim-bank) in the business fields and export support 
policies? 
Response:  
 ASEI Sharia unit is engaged in general in surance with line of business as follows: 
a. Fire insurance; 
b. Engineering insurance; 
c. Marine cargo insurance; 
d. Marine hull insurance; 
e. Personal Accident Insurance; 
f. Personal Accident Insurance; 
g. Liability Insurance. 
 No, ASEI Sharia unit  does not have spec ial consideration in determining the rate 
(premium) and coverage. Sharia Unit still refers to the common practice in general 
insurance business. 
 ASEI Sharia Insurance Unit currently does  not have an export credit insurance 
product, however, ASEI itself is an Export  Credit Agencies (ECA) in Indonesia which 
provides export credit insurance product. Sharia insurance Unit can support export 
activities by providing Marine cargo Insu rance to protect goods which are exported 
by the exporters. 
 WT/TPR/M/278/Add.1 
 
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  4. TRADE POLICIES BY SECTOR   
Page 80 (Para 4.29) 
“The Indonesian Government recently issued  Government Regulation No. 24/2012 (amending 
Government Regulation No. 23/2010) on the Im plementation of Minerals and Coal Mining 
Activities. The regulation’s preamble explicitly states that one of its rationales is to allow more Indonesians to participate in mining. The significan t change brought about by the new regulation is 
a requirement for foreign investors in the Indonesian mining sector to divest a minimum of 51% of 
the equity in the mining licence holding entity by the tenth year of production, in accordance with a divestment schedule.  For many foreign investors, this will mean a mandatory divestment of 
equity. The share must first be offered for purchase to the central Government. If the central 
government is not prepared to purchase the share, it is to be offered to the provincial government 
or city/county government. If they also refuse, the shares are to be offered by auction to (in order 
of priority) a state-owned enterprise, and regional  state-owned enterprise or a national company.” 
Questions: China also has noted that Indonesia issued new legislation in 2012 restricting foreign equity in the 
mining sector. Before that foreign investors coul d hold equity up to 80% when investing in the 
mining industry in Indonesia, now the new legislation restricts the equity of foreign investors 
within 49% and requires the majority foreign shareholders to divest the equity to local investors 
within 10 years. This policy of Indonesia has severely affetced the enthusiasm and interests of foreign investors. Could Indonesia further explain the reasons for such a move to restrict so 
stringently the equity of foreign investors? Is this restriction related to the prohibition on export of 
mineral ores, which is to be implemented in 2014? 
Response:  
The main reason behind the divestment polic y is to create a sustainable investment 
climate domestically. It does not rela te to the export restriction policy 
Is the government of Indonesia going to consider  changing this policy which has widely made 
foreign investors to believe that the investment environment is worsening in Indonesia? 
Response:  
Indonesia will consistantly be aware of  every possibility re garding investment 
environment 
In November 2012, the Indonesian Court of Consti tution, in accordance with Article 33 of the 
Constitution stipulating that “the state should fully lever natural resources for the well-being of the 
people”, ruled to dissolve the BPMigas whose func tion would be taken over temporarily by the 
Ministry of Energy and Mineral Resources before a new legislation would establish a new regulatory 
body. This rule increases the uncertainty of Indonesian legislation in the oil and gas sector. When 
will Indonesia issue the new legislation and esta blish the new regulatroy body to resolve the 
problem caused by the ruling? 
Response:  
Special task force, namely Special Task Force for Upstream Oil and Gas Business 
Activities SKK Migas, has been establishe d to replace the former BP Migas . This 
institution established by the Government  of the Republic of Indonesia under 
Presidential Regulation No. 9 of 2013 on Mana gement of Upstream Oil and Gas Business 
Activities.  
Page 82 (Para 4.41) 
“Exporters to Indonesia must comply with numerous import licensing requirements 
(Section 3.1.5.3 and Table A3.2). The Government implemented a wide-ranging regulation in 2009 
imposing import licensing procedures on a broad range of products, including electronics, household appliances, textiles and footwear, toys, and food and beverage products. Indonesia WT/TPR/M/278/Add.1 
 
- 177 - 
 
  maintains non-automatic licensing requirements on certain textiles and textile products under 
which, inter alia, only approved local garment or textile producers may import fabrics covered by 
the regulation, and these fabrics may only be used as inputs in domestic production, not for resale 
or transfer.” 
Questions: Does Indonesia plan to adjust the various import restrictions on fabrics as mentioned above in the 
near future? 
Response: 
Based on the Minister of Trade Regulation No . 23 in 2009, the textile and product textile 
that are subject to import lic ensing are fabrics and sheet pr oducts using fabrics as raw 
materials or auxiliary materials.  
Page 95 (Para 4.105) 
“Foreign construction firms are only permitted to be subcontractors or advisors to local firms in 
areas where the Government believes that a local firm is unable to do the work. In addition, for government-financed projects, foreign companies must form joint ventures with local firms.”  
Questions: 
The Indonesian Government has implemented differentiated tax policies for foreign-funded and 
local enterprises, and the tax system is significantly favorable to local enterprises. A foreign firm is 
required to pay as high as 10% departure income tax at the final settlement upon the completion of a construction project. This hurts the enthusiasm  of foreign-funded enterprises to contribute to 
local development with their technological and economic advantages to realize mutual benefits and 
win-win results with Indonesia. Has Indonesia plan ned to implement national treatment in term of 
taxation between foreign-funded and local enterprises? 
Response:   
Tax provisions in the contruction sector do es provide differentiation rates associated 
with business qualifications as evidenced by  the presence or absence of construction 
certification issued by the Construction Se rvices Development Body, and not related to 
whether the company in the form of BUJKN (National Construction Services Business 
Entity) or BUJKA (Foreign Construction Services Business Entity). According to Article 3 
Para.1 of the Government Regulation No. 51 Year 2008, “qualifications” is defined as a 
stratification based on certification issued by Construction Services Development Body 
(LPJK). 
Hence, implementation of final income tax ra te on income from construction services 
based on “qualifications” from LPJK. In  condition contractors have not met 
“qualifications” from LPJK, they exposed to  a higher final income tax rate (4% for 
construction services, or 6% for the services  of planning or construction supervision. 
How does the Indonesian Government examine whet her a local construction firm is qualified for 
undertaking a construction project in relevant industries? Are the criteria same with those applied 
to foreign construction firms? If a local firm is not fully qualified, can a foreign firm be the general contractor instead of a subcontractor? 
Response:   
According to law of construction servic e No. 18/1999, government determines any 
issues related to the foreign construction services company as follows: 
1. Foreign construction services company (Badan Usaha Jasa Konstruksi/BUJK) 
which is allowed to operate Indonesia is identified as the biggest scale company. 
2. BUJK enters to Indonesia in the form of Joint Venture or Joint Operation . WT/TPR/M/278/Add.1 
 
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  3. Joint Operation: In its operation, BUJK  shall collaborate/partner with a local 
company, which is also a big scale compan y in the same sectors (architect, civil, 
mechanical, electrical, landscaping). Joint Venture : foreign equity participation is 
limited to Indonesia’s commitment in each sub sector. 
4. BUJK can only work on the projects whic h have a high cost, high risk and high 
technology. 
Page 95 (Para 4.109) 
“In 2009, the Indonesian legislature introduced a new law with restrictions on the provision of 
postal services, broadly defined to include courier, express delivery, and other logistics services. 
According to the authorities, the law requires postal service providers to be majority-owned by 
Indonesians and foreign providers limit their activities to provincial capitals with international airports and seaports. The Ministry of Communication and Information has said that joint ventures 
will be able to service cities with international airports and seaports, as well as supporting 
economic areas of provincial capitals with international airports and seaports.” 
Questions: 
Could Indonesia please inform the rationale of the new law’s geographic restrictions on foreign and 
joint venture postal service providers?  
Response: 
Article 12.e of Law No. 38 Year  2009 concerning on Post stated that foreign and joint 
ventures postal service provider only operat e in capital city of the province which has 
international airport and/or seaport. . 
CHINESE TAIPEI 
 
PART I: ON REPORT BY THE SECRETARIAT (WT/TPR/S/278) 
3.  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1  Measures directly affecting imports 
3.1.5. Import prohibitions, restrictions and licensing 
3.1.5.3 Import Licensing 
Page 45 (Para 3.39) 
As stated in the Report, the Authorities indicated that around 2060 tariff lines are subject to import 
licensing. This represents around one-fifth of Indonesia’s tariff lines. The number of products 
subject to import licensing increased significantly over the review period, with new measures being 
introduced on: horticultural products (2012); pearls (2012); animals and animals products (2011).  
We are concerned that the significantly increased number of products subject to import licensing 
will increase the uncertainty, administrative costs and timeframe for foreign exporters of certain 
products to the Indonesia market. 
Question(s): 
Does Indonesia intend to strengthen its import licensing system in the future? If so, in which 
category of products is that likely to be? 
Response: 
In accordance with our national objectiv e to ensure comsumers protection, we are 
oblige to strengthen our import licesing regimes for all import products that needs 
quality assurance.    WT/TPR/M/278/Add.1 
 
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  3.2 MEASURES DIRECTLY AFFECTING EXPORTS 
3.2.2  Export prohibitions, restrictions and licensing 
3.2.2.3  Export taxes 
Page 58-59 (Para 3.82)  
With respect to export taxes on mineral ore products, an external source has noted that raising 
the tax to 50% in 2013 is being discussed, in orde r to discourage the front-loading of production 
before the export ban on unprocessed ores enters into effect in 2014. 
Question(s): 
And, does the Indonesian Government plan to increase the export tax rate for raw mineral ores 
this year? 
Response : 
The priority  at the present is to support do mestic mineral procesin g and refining plant, 
and Indonesia currently has no intention to go  to that direction. Information regarding 
an increase in export duty to 50% in 2013 is  absolutely incorrect. Until recently, official 
rate of export duty applied by the governme nt of Indonesia is 20% of export benchmark 
price 
5.  APPENDIX TABLES 
Table A3. 2 Products subject to import licensing requirements, 2012 (Page 118) 
 As stated in the column headed Horticulture (fresh and processed), “horticultural product permits 
are only granted if the Ministry of Agriculture determines that domestic production is insufficient”. 
Question(s): 
What are the standards used by Indonesia to determine whether domestic production is sufficient 
or insufficient? 
What standards are used to determine the quota of imported horticultural products? 
Does Indonesia publish any information on the regulations relating to these standards, which other 
WTO Members may access and refer to? 
Does Indonesia have any plan to simplify the import procedures for horticultural products with a 
view to alleviatingthe document-handling burden on the exportersof WTO Member(s)? 
Response: 
Import licensing regime for horticultura l products has been amended with MOT 
Regulation no.16/M-DAG/PER/4/2013, and MOA Regulation no 
47/Permentan/OT.140/4/2013. 
 COLOMBIA 
 
Informe de la Secretaría WT/TPR/S/278  
3  POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS 
3.1  Medidas que afectan directamente a las importaciones 3.1.5.3  Licencias de importación  
En los párrafos 3.37 y 3.39 del Informe del Inform e de la Secretaría indica que... “Se aplican 
prescripciones en materia de licencias de importación por varios motivos, por ejemplo para 
preservar la salud, la seguridad o el medio ambiente, cumplir compromisos asumidos en el marco de acuerdos internacionales, prevenir el contrabando o aplicar medidas de política encaminadas a WT/TPR/M/278/Add.1 
 
- 180 - 
 
  la protección de la producción nacional. En este último caso, entre los productos afectados figuran 
algunas mercancías sujetas a restricciones cuantitativas (arroz, azúcar, animales y productos de 
origen animal, sal), así como algunos textiles y productos textiles; gas licuado de petróleo (GLP) y 
contenedores de GLP; bienes de capital usados; petróleo y gas; clavo; tripolifosfato de sodio; 
productos hortícolas; y fertilizantes (cuadro A3.2). La última notificación realizada por Indonesia a la OMC en relación con sus procedimientos de licencias de importación abarca el año 2007” 
“3.39.  Las autoridades han señalado que unas 2.060 líneas arancelarias están sujetas a licencias 
de importación, lo que representa aproximadamente una quinta parte del Arancel de Indonesia. El número de productos sujetos a licencias de importación aumentó significativamente durante el 
período examinado, y se introdujeron nuevas prescripciones en relación con los productos 
siguientes: productos hortícolas (2012); perlas (2012); animales y productos de origen animal (2011); bienes de capital usados (2011); tripolifosfato de sodio (2011); abonos (2011); petróleo y 
gas (2009); desechos no peligrosos y no tóxicos (2009); GLP y contendedores de GLP (2008); 
algunos alimentos, bebidas, medicamentos, cosm éticos, vestidos y calzado (2008); productos 
electrónicos y juguetes infantiles (2008); y máquinas multifuncionales, fotocopiadoras e 
impresoras en color (2007).” 
Dado que la última notificación sobre licencias de importación a la OMC se realizó en 2007, y 
desde esa fecha se han establecido medidas a las importaciones agrícolas mediante este 
instrumento, mientras el Gobierno de Indonesia actualiza estas notificaciones, agradecemos se nos suministre obtener información sobre el objetivo, principales características y legislación de las 
licencias aplicadas al sector agropecuario. 
Response:  
We will notify the latest regulation regard ing horticulture import licensing through 
official notification in immediate response.  
EUROPEAN UNION 
 
3. TRADE POLICIES AND PRACTICES BY MEASURE 
3.1. Measures directly affecting imports 
3.1.7. Standards and technical regulations 
Page 51, paragraph 3.57 and 3.59   
 "As at December 2012, there were 7,394 approved SNIs (Chart 3.3): 97% voluntary, and 
3% (i.e. 254) mandatory technical regulations (there  were 211 technical regulations at the time of 
Indonesia's previous Review)."It has been reported to the EU that the trend is that SNIs tend not to be voluntary. E.g. in draft Industry Law they ar e officially voluntary, but operators report that if 
they do not abide by them, they are not allowed to sell or produce your products in Indonesia. 
Question:  How does Indonesia intend to bring SNIs in line with internationally agreed standards and best 
practice to facilitate both exports and imports? 
Response: 
In draft Industry Law, SNIs for industrial products basically are voluntary standards.  
 Technical regulations based on SNI are prep ared and applied with the objectives of 
ensuring national security requirements; protec tion of human health or safety, animal or 
plant life or health, or the environment; im proving competitiveness, and the prevention 
of deceptive practices. This arrangement is  in line with Article 2 paragraph 2 of TBT 
agreement. 
 
Technical regulations based on SNI are app licable non-discriminatorily to domestic 
products and imported products. This arrang ement is in line with Article 2 paragraph 1 
of TBT agreement. WT/TPR/M/278/Add.1 
 
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  In the preparation of draft Technical Regula tion based on SNI, the SNI undergo review 
and revised accordingly in order to harmonize it with relevant international standard. In 
this instance, mandatory SNI is identic with  relevant international standard. In some 
cases, because of fundamental climatic or geographical factors or fundamental 
technological problems, mandatory SNI is th e modification of relevant international 
standard. This arrangement is in line with  Article 2 paragraph 4 of TBT agreement. 
 
3.1.8. Sanitary and Phytosanitary Measures 
3.1.8.1. Selected SPS-related import requirements and restrictions 
3.1.8.1.3. Horticulture Page 54, paragraph 3.73 
 
The Report refers to the implementation of Law on Horticulture (Law No. 13/2010) in 2010. With 
reference to an external source it states, "the law requires importers of horticultural products to 
ensure the safety aspect of the imported food, th e stock availability of domestic products, and the 
production and consumption targets of horticultural products." 
Question:  
Could Indonesia explain to what extent this statement is in line with Indonesia’s obligations under 
the WTO SPS Agreement in not using SPS measures for protectionist reasons? How and when will 
Indonesia bring its SPS measures on horticulture in line with its obligations under the WTO SPS 
Agreement? 
Response: 
Indonesia will evaluate and revise the regu lations that have been implemented to 
comply with obligation of WTO . 
4. TRADE POLICIES BY SECTOR 
4.3 Infrastructure 
Page 74, paragraph 4.7 
 
Indonesia has suffered from years of under-investment which left the country with a poorly developed infrastructure network and distribution systems. 
Question:  
Could Indonesia elaborate upon what measures it will take to address the regulatory restrictions to 
foreign investors with the objective to facilitate its own infrastructural development? (Delegation) 
Response: 
According to Presidential Regula tion on PPP (Public Private Partner ship) : President 
Regulation No. 67/2005, No. 13/2010 and No . 56/2011, Indonesia has had 2 (two) 
times improvements to enhance the effectiv eness of its implementation, through the 
issuance of Presidential Regulation No. 13/2010 and No. 56/2011 through cooperation between the government and Private contained in Presidential Regulation No. 67/2005 are:  
 
a. sustainable funding sufficient in the pr ovision of infrastructure through the 
mobilization of private funds; 
b. improving the quantity, quality and effici ency of through healthy competition; 
c. improving the quality of the management and maintenance of the infrastructure, 
d. encouraging the use of the principle of user  pays services received or things in 
certain things into account ability to pay users. 
 WT/TPR/M/278/Add.1 
 
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  Government of Indonesia gives opportuniti es for foreign investors to own be the 
majority shareholder up to 95% in a busine ss entity through infrastructure PPP scheme, 
except for some specific types of infrastructu re projects, such as: harbour and airport, 
where foreign ownership is maximum is 49% . Role of PPP Agency : Some agencies 
associated with coordination and implementa tion tasks of PPP projects in Indonesia, 
such as: Bappenas (Nasional Development Planning/ Head of National Development 
Planning), Ministry of Financ e, BKPM (the investment coor dinating board), PT Sarana 
Multi Infrastructure (PT SMI), and PT Indo nesia Infrastructure Guarantee (PT PII). 
 
4.4. Agriculture, fisheries, and forestry 
4.4.3. Trade policy instruments 
Page 77, paragraph 4.16 on the Decree of Mi nister of Agricultur e No.60/Permentan/OT. 
140/1/2012.   
Question:  
Could Indonesian authorities consider publishing th eir decisions, taken apparently on a half-yearly 
basis, with respect to authorisations for import of horticulture products?   
Response: 
All regulations including the latest provision related to import of horticulture products 
are accesible through www.kemendag.go.id     
WT/TPR/G/278 
2. ECONOMIC AND TRADE ENVIRONMENT 
2.2. Financial sector 
Page 6, paragraph 2.12 
 
Question: 
How does Indonesia intend to amend its fuel su bsidies (amounting to over US$ 5 billion in 2012) 
to bring it in line with the government stated objectives, especially with regards to  improvement 
of education and healthcare?  
Response: 
Indonesia is in process of reviewing the fuel subsidies policy. 
2.3 Trade and investment 
Page 8, paragraph 2.24  
The government states that reform of the economic  and fiscal policy is carried out to facilitate 
green growth. 
Question:  
Would Indonesia consider adopting measures to facilitate investments in this important area? 
Response: 
Indonesia will consider adopting measure to  facilitate investment with green growth 
concept. 
4.3. Sectoral policies 
4.3.1. Agriculture 
Page 13, paragraph 4.13  
The Report sets out that Indonesia intends to improve the quality and competitiveness (value 
added) of Agricultural Product in the international market through Good Agricultural Practices, Good Handling Practices, Standard Operating Procedures and certification. WT/TPR/M/278/Add.1 
 
- 183 - 
 
  Question: 
Could Indonesia elaborate in detail on the steps that have been taken to improve the quality and 
competitiveness in the agricultural sector?  
Response: 
In order to achieve Good Agricultural Prac tices (GAP), Good Handling Practices (GHP), 
Standard Operating Procedures and Certif ication (SOPC), Agency for Agricultural 
Extension and Human Resource Development ( AAEHRD), which is one of the Directorate 
Generals within the Ministry of Agricult ure, conducts policy measures toward 
agricultural human resource development th rough education, training and extension 
services for government and non government personnel  as well as farmer institutional 
development through the following programs: 
1. Revitalization of agricultural educat ion (higher education and vocational 
education) through developing higher educ ation system (for agriculture officials), 
which are capable of producing profession al and competent functional groups of 
Agricultural Biological Sciences (RIHP) an d agricultural quaran tine personnels, as 
well as through increasing agricultural quality of agriculture vocational high 
schools that are capable of producing grad uates of agriculture vocational schools 
and young entrepreneurs;  
2. Strengthening of competency-based ag ricultural training system through 
increasing intensity of training for farmers and agricultural apparatus; 
3. Increasing  the role of Farmer’s Agricu ltural and Rural Training Center (P4S); 
4. Focusing on agricultural education and tr aining curricula which meet labor market 
needs, including aspects in skills of entrepreneurship; 
5. Development of polyvalent ag ricultural field extension workers and increasing the 
number of non government extensio n workers (farmer facilitators); 
6. Improvement of capacity of farmer institutions throug h training, apprenticeships 
and study visits; 
7. Enhancement of partnerships between farmer  groups and other economic actors to 
realize vertical coordination in agribusiness activities; 
8. Guide the farmer economic organizati ons to participate in agricultural 
development as well as off-farm activities; 
9. Encouragement of the growth of farmers'  groups, cooperatives or other farmer 
organizations in the areas of new deve lopment and improving the bargaining 
position of farmers' groups to become more independent. 
INDIA 
 
Part I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
Page 91 (Para 4.84)  It has been stated that new institutional arrangem ents are being designed which will form part of 
the Railway Master Plan of Indonesia. It has also been clarified that the law allows private sector 
participation in Railway Services for special purpose railways.  
Question: 
 Indonesia may kindly elaborate whether foreign participation in provisions of Railway Services is 
being contemplated as part of the Railway Master Plan and by which time the Railway Master Plan 
can be expected.  WT/TPR/M/278/Add.1 
 
- 184 - 
 
  Response: 
 
In term and condition to conduct capital inve stment in railway field is open for public. 
Business entity is State Own Enterprises, Local Government Enterprises or Indonesia 
Legal entity specially established for railway field as stipulated in Law No. 23, year 2007 
on Railway, and Government Regulation No  56 year 2009 on Railway Implementation. 
In accordance to Indonesia Railway Mast erplan, is stipulated in Minister for 
Transportation Regulation No 43 year 2011, In donesia Railway Master Plan is valid up in 
2030 and may be evaluated every 5 years.  Page 7 (Para 4) 
 
The Indonesian “ authorities consider that domestic industrial policy considerations, aimed, inter alia, at developing local industries and moving up the value chain, should be balanced with 
maintaining an open foreign trade and investment regime in order to ensure that Indonesia’s 
external commitments continue to be fully respected.”   
Question: 
 Could Indonesia provide us the details of the manner in which it aims to strike this delicate balance between the contradictory objectives of more domestic protection and more open trade? 
 
Response: 
 
National policies on developing domestic  industries are designed, and will be 
implemented, in compliance with inte rnational trade rules and principles.  
If we see the applied tariff of Indonesia and Indonesia bound tariff,  no doubt that  
Indonesia implements open trade regime. To give more room for local business players 
to invest in Indonesia, there are some cate gories stating that certain sectors of 
investment are open for local companies, open for foreign investment with certain 
requirements. In trade sector s, poor farmers is main consideration. Import is free 
during the out of harvesting season. 
 Page 55 (Table 3.12) 
 
The Secretariat Report suggests that Indone sia has imposed an export prohibition on  raw rubber 
without any rationale being provided for such a drastic measure.   
 
Question:  Can Indonesia provide the objectives of this measure, simultaneously justifying the same under 
the provisions of the WTO? 
 Response: 
 The objectives of this measure are to support  downstream industry and  increase value 
added. 
 
Page 80 (Para. 4.28) & Page 81 (Para. 4.31)  Indonesia happens to have brought out a new mining legislation whereby mining firms operating in 
Indonesia will face new restrictions in exporting unprocessed ore. Moreover, by another recent 
policy measure, exports of 65 mining commodities in cluding nickel, tin, gold, copper, silver, lead, 
zinc, chromium, platinum, bauxite, iron ore,  and manganese are being regulated. These 
commodities are not only subject to a 20% export duty, the exporters have to comply with the 
stipulated registration and verification procedures.    
Question: 
 India would request Indonesia to clarify whether th e 65 mining commodities includes coal also?  In 
addition, are the above measures in compliance of the WTO Agreements? WT/TPR/M/278/Add.1 
 
- 185 - 
 
  Response: 
 
Coal is not regulated under this regulation.  
Page 47 (para 3.50) 
 Question: 
 
a. What are Indonesia’s plans with regard to increase of production of HRC? 
b. Until the situation improves, what steps Indonesia has taken or proposes to take to ease it? 
c. Since the production over the last 15 years has not improved in relation to demand, why  
b. Indonesia has not allowed free imports to help its downstream industry rather than imposing 
anti-dumping duty resulting in higher cost?  
Response: 
 
a. Latest guideline of our economic developm ent  is to encourage the escalation of 
semi processed products and end products  or downstream industry. Increase of 
production of HRC is a result of that such guidelines and a basic principle to 
support our further domestic production. 
b. Fair competition leading to competitive price will be our purpose. 
c. Although it is a difficult choice (the in terest of suffered domestic producers or 
downstream industries) antidumping duty is a reasonable action to eliminate 
injury suffered by domestic industry. An tidumping duty indicates that there is 
unfair trade practices in international trade leading to injury to domestic industries 
 Part II: Other Questions  
 
The Indonesian Government issued a Ministerial Decree 91/2011 which implies that only those mine owners can undertake such projects that have a majority shareholding in the mining company.  
 
Question:  
a. What is the policy with regard to in vestment in mining infrastructure?  
b. Is there any proposal to relax this policy to hasten the development projects requiring huge 
investments in the mining infrastructure space? 
 
Response: 
 a. Indonesia would like to support the domest ic mineral procesing and refining plant 
b. Domestic mineral processing and refining project can be owned by concortium of 
mining investor 
 
The Indonesian Government has merged two HS codes (at 10 digit level) under AIFTA 
related to import of motorcycles parts; on e was for below 250 cc and one above at 4.5% 
and 12% respectively. With the merger the duty for the below 250 cc has increased 
from 4.5% to 11%.  In 2012, (i.e. after 5 ye ars from 2007) the Indonesian Ministry of 
Finance combined HS Code 8714.19.00.38  and HS code 8714.19.00.90 under one 
heading 8714.10.90 while releasing tariff for the year 2012. HS Code 8714.19.00.00.38 is applicable for parts of motorcycles up to 250cc and 8714.19.00.90 is for parts of 
motorcycles exceeding 250cc. The combined HS code is split into 6 sub headings namely 
8714.10.90.10, 20, 30, 40, 50 and 90.  
Under the AIFTA the tariff rate issued in 2010 for 3 years until 2012 was 4.5% for 
8714.19.00.38 for import of parts of motorcycles below 250cc and 12% for 
8714.19.00.90 for import of parts of motorcycles exceeding 250cc. 
 
In 2013 when new tariff rates under AIFTA were released until 2018, Indonesia have taken reference to 8714.19.00.90 base rate an d reduced it from 12 to 11% resulting in 
about 150% increase of tariff for below 250cc motorcycle parts from existing rate for WT/TPR/M/278/Add.1 
 
- 186 - 
 
  8714.19.00.38 of 4.5%. However, the tariff fo r motorcycle parts under the same new 
combined HS Code from Korea and Japan is 0% and from China 5%.  
 Question: 
 
W h a t  i s  t h e  r e a s o n  b e h i n d  t h e  m e r g e r  o f  H S  c o d e s  ( a t  1 0  d i g i t  l e v e l )  r e l a t e d  t o  i m p o r t  o f  motorcycles parts under AIFTA? Did Indonesia study the impact of merger of these HS Codes? 
 
Response: 
 The merger of these HS Codes are made on the grounds that Indonesian exports for 
these products is not significant. Therefore,  when the transposition of the HS Code in 
2012 proposed to merger these HS Codes.  
JAPAN 
 WT/TPR/S/278 
3 TRADE POLICIES AND PRACTICES BY MEASURE 
3.1 Measures directly affecting imports 
3.1.6 Contingency measures 
3.1.6.2 Safeguard measures (Question3: Page 48, Paragraph 3.51) 
 
Indonesia has imposed safeguard measures for various steel products since 2011. These include 
measures for wires (since March 23, 2011), steel wire products (since November 20, 2012), 
seamless pipes and tubes for oil and gas drilling (since January 20, 2012) and non-alloy aluminum/zinc coated steel sheets (since December 19, 2012).  Japan would like to know whether 
Indonesia has considered making anti-dumping investigations instead of taking safeguard 
measures in these cases. 
Response:  
The consideration of making anti-dumping in vestigation or safeguard investigation was 
based on the condition of the cases. 
The Safeguard Measures was based on the incr ease of imports absolute or relative to 
domestic production causing as to cause or  threaten to cause serious injury to the 
domestic industry that produces like or directly competitive products .  
However, when there was a dumping price, the subject goods imported into Indonesia 
with lower price than its normal value in it s origin country, Indonesia will apply anti-
dumping measures. 
The increase in the use of safeguard measures  was the result of re cent awareness in the 
domestic industry of the availability of trade remedies, i.e. the WTO Agreement on 
Safeguards. 
In accordance with the Article 1.29 of  Go vernment Regulation no. 34 Year 2011, “the 
Indonesian Anti-Dumping Committee, hereinaf ter referred to acronym “KADI”, shall be 
understood to mean the committee which is tasked to undertake investigation in 
relation to anti-dumping measure and count ervailing measures”, and in practice, KADI 
conducts an investigation based on application by domestic industry. WT/TPR/M/278/Add.1 
 
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  REPUBLIC OF KOREA 
 PART I: Questions Regarding the Secretariat Report 
I. Economic Environment 
Page 15 (Para 1.11) 
 (……) Energy subsidies amounted to roughly 28.9% of central government spending in 2011; the 
fiscal resources put into them would be better utilized elsewhere.  
Question: Please indicate whether the proposal of Indonesian Government in 2011 to reduce fossil-fuel and 
electricity subsidies will proceed as planned, and if so, what concrete measures will be taken to 
address the strong resistance? 
Response: 
The amendment of fuel subsidies is now under  the process of the cabinet and it usually 
will be discussed with the parliament. 
III. Trade Policies and Practices by Measure 
Page 45 (Para 3.39) 
The authorities indicated that around 2,060 tariff lines are subject to import licensing. This 
represents around one-fifth of Indonesia's tari ff. The number of products subject to import 
licensing increased significantly over the review period, with new requirements being introduced on: horticultural products (2012); pearls (2012); animal and animal products (2011); used capital 
goods (2011); sodium tripolpyphospate (2011); fertilizer (2011) oil and gas (2009); nonhazardous 
and non-toxic waste (2009); LPG and LPG gas containers (2008); certain food, beverages, medicine, cosmetics, clothing and footwear (2008); electronic goods and children's toys (2008); 
and colour multifunctional machines and colour photocopying and printing machines (2007). 
Question: a. Could Indonesia indicate when it will notify the WTO of its licensing requirements which were 
introduced in 2007?  
b. Please indicate whether Indonesia has a plan to reduce the number of products subject to 
import licensing and, along the same lines, to streamline import procedures which seem to 
be made more complicated by registration requirements, pre-shipment inspection and licensing requirements. 
Response: 
a. We will notify immediately  
b. To ensure the aspects of national intere st (health, safety, security, environment 
and moral nation) and to obtain fair trad e in the domestic market therefore such 
regulation of import license is required.  
Page 59 (Para 3.82) 
With respect to export taxes on mineral ore products, an external source has noted that raising 
the tax to 50% in 2013 is being discussed, in orde r to discourage the front-loading of production 
before the export ban on unprocessed ores enters into effect in 2014 (see above).  
Question: 
Could Indonesia confirm whether it will increase the export taxes on mineral ore products to 50% 
in 2013?  WT/TPR/M/278/Add.1 
 
- 188 - 
 
  Response: 
Information regarding  the increase in export duty to 50% in 2013 is absolutely 
incorrect. Until recently, official rate of export duty applied by the Government of 
Indonesia is 20% of Export Benchmark Price. This matter has not been discussed 
internally 
NEW ZEALAND 
 REPORT BY THE WTO SECRETARIAT (WT/TPR/S/278) 
SECTION III: TRADE POLICIES AND PRACTICES BY MEASURE 3.1 Measures directly affecting imports 
WT/TPR/S/278, p. 32, paras 3 and 4, pp. 44-45, paras 3.35-3.40, p. 53, para 3.69 
 Section 3 of the Secretariat report, page 32, para 3.7 notes point of entry restrictions.  New 
Zealand is concerned about quantitative restrictions to imports (page 44, para 3.36) and the 
import licensing requirements and quotasthat are in place to implement policies that aim to protect 
domestic production of animals, animal products and horticultural products (page 45, 
paras 3.37-3.40).   
New Zealand notes that of the 26 notifications Indonesia has made to the WTO SPS Committee, 
seven were notified after the SPS measures had entered into force (page 53, para 3.69).  
New Zealand shares the concerns of other WTO members around the complexity, lack of transparency and trade-impairing effects of Indonesia’s import licensing requirements. There is a 
need for timely notification of these requirements to the WTO.   
Questions: How does Indonesia calculate and publicise its quantitative restrictions on horticultural products 
and animal products. In particular, import quotas applied to beef products since 2010 and import 
quotas on horticultural imports applied since January 2013: a. Can Indonesia please specifically set out where and how information on these quotas and 
their numerical limits is officially shared with trading partners and WTO Members?  
b. Can Indonesia please also specify the laws and regulations pursuant to which these quotas 
on horticultural and animal products were set? 
 
Response: 
No such measures regarding quantitative re strictions or quotas are stipulated in 
regulations regarding horticultural products and animal products.  
What plans does Indonesia have in place to ensure timely notification to the WTO of agriculture 
policies, import licensing requirements, and quotas in order to ensure a stable environment for both trading partners and consumers? 
 
Response: 
We will notify the latest regulation regardin g horticultural products and animal products 
through official notificati on in immediate response. 
 
Does Indonesia plan to put in place implementing regulations for the Food Law? If so, how will 
traders be informed of these and their effects? 
 Response: 
In accordance to our commitment to WTO, all regulations will be accessible through our official website . 
 WT/TPR/M/278/Add.1 
 
- 189 - 
 
  3.2 Measures directly affecting exports 
WT/TPR/S/278, p. 59, para 3.88 
 
Section 3 of the Secretariat report, page 59, para 3.88 and 3.90 note the use of bonded zones and 
stand-alone export-processing units (EPTEs) to de al with the re-export of products.  Exporters 
have faced considerable issues with the re-export of their shipments from Indonesia to another 
market.   
What is the process for the re-export of agriculture commodities, specifically beef? Response: 
Re-export in term of bonded  zones will only be applied for machinery or unprocessing 
raw material as long as the customs formalit ies  are  not yet being performed and under 
customs control. To re-export those kind of g oods is simply by asking for an approval to 
the Head of Customs Service Office.   
WT/TPR/S/278, p. 34, para 3.12 
Section 3 of the Secretariat report, page 34, para  3.12 notes Indonesia’s membership of the World 
Customs Organisation and its domestic laws and regulations around customs. 
What steps has Indonesia taken in regard to becoming a signatory to the major customs-related 
international conventions (the WCTO Revised Kyot o Convention and the Istanbul Convention on 
Temporary Admission)? 
Response: 
 
Since the amendment of the Customs Law in 2006, most of the major provisions from 
the RKC  have  been adopted into the Indo nesia Law. Directorate General of Customs 
and Excise of the Republic of Indonesia at the moment is still in a process of  an in-
depth academic research to be presented later on to the Minister of Finance. 
 Indonesia has not yet ratified the Istanb ul Convention on Temporary Admission. 
However, most of the regulations have been re ferred to this convention. At this moment, 
Indonesia customs are in the early stage of ratifying this convention by preparing and 
presenting an academic research  to the Minister of Finance. 
SECTION IV: TRADE POLICIES BY SECTOR 
4.4 Agriculture, fisheries and forestry 
WT/TPR/S/278, pp. 75-77 paras 4.11 – 4.18 
Trade Policy Instruments  
Section 4 of the Secretariat report, Page 75, para 4.11 notes the agricultural framework policy in 
the form of five year plans aimed at seeking a balance between supporting producers and ensuring 
affordable prices of essential food items.  New Zealand notes, in particular, the references to food 
self-sufficiencythe quantitative import restrictions in place for animals and animal products, and 
the quota systems in place for beef and horticul tural products.However, Indonesia does not have 
tariff quota commitments for either beef or horticultural products in its WTO schedules.  
Companies are required to apply to the Minister of  Trade to become registered importers of these 
products.  
Page 77, para 4.17 also notes that animal-based food must come with an import recommendation 
from the Ministry of Agriculture’s Directorate General of Livestock and Animal Health Service or the National Agency of Food and Drug Control (BPOM).  There have been considerable delays in the 
issuing of import licenses for horticultural products and as at 22 March Horticulture Product Import 
Regulation (RIPHs) for very small volumes have been released.  In addition, Indonesia has restricted points of entry for horticultural products. WT/TPR/M/278/Add.1 
 
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  Question: 
Could Indonesia please explain how its food security policies are reconciled with high levels of 
behind the border protection in relation to horticulture and agriculture products? 
 
Response: 
Indonesia have National Quarantine Agency that works in border area to ensure all 
imported agriculture and horticulture products are comply with food safety standards 
and regulations. 
What steps is Indonesia taking to ensure that RIPH applications can be processed in a timely 
manner and enable improved flows of imported products, including those currently impacted by 
quantitative restrictions?  
Response: 
No such measures regarding quantitative restrictions are stipulated in our regulations. 
We can assure that all RIPH applications ar e treated in timely manner in accordance 
with SLA process and procedures stipulated in our regulations . 
What measures does Indonesia have in place to ensure that applications to the Minister of Trade to 
become registered importers are processed speedily and in a way that does not impair trade? 
 Response: 
We can assure that all applications for regi stered importers are treated professionally, 
and in timely manner in accordance with SL A process and procedures stipulated in our 
regulations. 
As asked in question 1 under Section 3.1, please confirm how Indonesia calculates and publicises 
its import restrictions on horticultural products and animal products. In particular, paragraph 4.16 of the Secretariat report refers to import quotas applied to beef products since 2010. Furthermore, 
paragraph 4.16 refers to import quotas on horticultural imports applied since January 2013: 
a. Can Indonesia please specifically set out where and how information on these quotas and 
their numerical limits is officially shared with trading partners and WTO Members? 
b. Can Indonesia please also specify the laws and regulations (and provisions within those laws 
or regulations) pursuant to which these quotas on horticultural and animal products were 
set? 
 
Response: 
a. No such measures regarding quantitative re strictions or quotas are stipulated in 
regulations regarding horticultural products and animal products.  
b. No such measures regarding quantitative re strictions or quotas are stipulated in 
regulations regarding horticultural products and animal products.  
Regulations for horticultural products are Law 13 year 2010, MOT Regulation 
No. 16/M-DAG/PER/4/2013, and MOA Regulation no 47/Permentan/OT.140/4/2013.  
For animal products are Law 18 year 2010,  MOT Regulation No. 24/M-DAG/PER/9/2011, 
and MOA regulation No. 50/PERMENTAN/OT.140/9/2011, 
51/Permentan/OT.140/9/2011, and 52/Permentan/OT.140/9/2011. 
 Could Indonesia please explain the reason for the dramatic reduction in beef quota described in 
para 4.16 of the Secretariat report? WT/TPR/M/278/Add.1 
 
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  Response: 
No such measures regarding quantitative re strictions or quotas are stipulated in 
regulations regarding animal and animal products. 
NORWAY 
 
Indonesia has export licensing, prohibitions and restrictions in place to provide an adequate 
domestic supply of essential products and to promote higher-value-added downstream industries. 
Paragraph 16 of the Secretariat’s report states that Indonesia next year will prohibit mining 
companies from exporting mineral ore products and require companies concerned to undertake refining activities onshore.  
Question: 
We would appreciate to be informed concerning which mineral ores such an export restraining 
policy may be introduced. 
Response: 
The list of mineral ores can be found at the attachment of Ministerial Decree No. 11 year 
2012  
In order to speed up the process of establishing companies, some efforts have been done, such as 
simplification and standardization of permit and no n permit procedures at the central and regional 
level for similar licensing (investment registration , trade license, tax payer registration, deed of 
establishment, company registration). 
Question: 
Could Indonesia please provide information regarding new regulations in place or any new 
regulations planned which address oil and gas issues? 
Response: 
The provision on oil and gas regulated by Government Regulation  No. 9 Year 2013. 
We would appreciate if Indonesia would elaborate on the newly established SKK Migas.  Question: 
In particular what differentiates SKK Migas from the former BPMigas? How will the new unit affect 
ongoing and future negotiations of Production Sharing Contracts? 
Response: 
BP Migas is an institution established by the Government of the Republic of Indonesia on 
July 16, 2002. It was as an advisor and supe rvisor Production Sharing Contract (PSC) in 
the course of exploration, exploitation an d marketing of oil and gas in Indonesia. The 
agency was dissolved by the Constitutional  Court ruling on 13 November 2012 because 
it was not in line with the constitution.  
SKK Migas has a board of trustees that wi ll assess the performance of SKK Migas.  
SKK Migas is responsible directly to the Pres ident and is coordinating with the Ministry 
of Energy and Mineral Resources 
SKK Migas is assigned to manage the upstre am oil and gas business activities under a 
Cooperation Contract. The establishment of  this institution is purposed that the 
exploitation of the state’s oil and gas na tural resources will be able to generate 
maximum benefits and revenue to the state for the greatest welfare of the people. 
In performing those tasks, SKK Miga s performs the following functions: WT/TPR/M/278/Add.1 
 
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   to proffer inputs for consideration to  the Minister of Energy and Mineral 
Resources at its discretion in prepar ing and offering the bidding round of 
Working Areas and Cooperation Contract; 
 to sign Cooperation Contracts; 
 to review and submit the plan of field de velopment to be the first production in a 
Working Area to Minister of Energy and Mineral Resources for obtaining approval; 
 to grant an approval for the developmen t plan other than as referred to in 
previous point; 
 to grant an approval for the work programs and budget; 
 to conduct monitoring and to make repo rt to Minister of Energy and Mineral 
Resources on the performance of the Cooperation Contracts; and 
 to appoint sellers of oil and/or gas of the state entitlement that may generate 
maximum profits to the state. 
SINGAPORE 
 
PART I:  QUESTIONS REGARDING THE SECRETARIAT REPORT III TRADE POLICIES AND PRACTICES BY MEASURE 
Page 59,(Para 3.86) 
 Singapore understands that Indonesia has one FTZ and has plans for multiple SEZs. The FTZ 
status of the Riau Islands appears slated for expiry and the law governing FTZs is open to 
nullification. We would appreciate it if Indonesia could elaborate on: (a) whether there are plans for another FTZ apart from the Riau Islands; (b) whether there are plans to change the status of the Riau Islands FTZ and (c) the different features of an FTZ and SEZ. 
 
Response: 
 
Indonesia has two FTZ i.e. Sabang FTZ (est ablished in 2000) and Batam Bintan Karimun 
FTZ (BBK FTZ). To boost economic developm ent in certain and specific territories, 
Indonesia established Special Economic Zone (SEZ). The Government's objective is to 
have six SEZ in operation by 2014. The tw o special economic zones were decreed by 
government regulation in February 2012 . Those SEZ are Sei Mangke and Tanjung 
Lesung. the government’s objective is to have five SEZs developed by 2014, where this objective is clearly stated on our medium term development plan. It should also be 
noted that it is not a must that all five SEZs  in operation by 2014, as we understand that 
preparation and development progress is more important at this time.  If we compare 
the territory of FTZ and SEZ, the territory of SEZ is smaller than that in FTZ. Another 
comparation is that the facilities in SEZ cove r tax, custom, and excise, local taxes, local 
retribution, land, license, imigration and investment. 
 
SWITZERLAND 
 REPORT
 BY THE  SECRETARIAT 
2. Trade policy regime: framework and objectives 
2.1 Administration of trade and investment policy 
 Para 2.1 : We understand that the Indonesian "Government is legally required to offer the public 
the opportunity to give input into the rule-making process orally or in writing” and that 
“consultations are undertaken on an ad-hoc basis as issues arise”. Switzerland has made very positive experiences with widely consulting the public in law-making procedures in order to allow 
the public to voice its interests and concerns in an early law-making stage already. We would 
appreciate if Indonesia could elaborate on its experiences made so far, the frequency of as well as policy topics subject to such consultations undertaken. WT/TPR/M/278/Add.1 
 
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  Response: 
Referring to the Law No. 12 Year 2012 concerning  Establishment of Legislation, public is 
entitled to convey input orally and/or in wri tten in Establishment of Legislation. There is 
no limitation on the basis of regulation topi c for the public to give any input orally 
and/or in written on the process of the esta blishment of legislation. Public can give 
input in any draft of rule and regulation through: 
a. Public hearing meeting;  
b. Job visits;  
c. Socialitation;  
d. Seminar, workshop, and/or discussion.  
 
III. Trade Policies and Practices by Measure 
4. Trade Policies by Sector 
4.4 Agriculture, fisheries, and forestry 4.4.5 Forestry and forest products 
 
Para. 4.23:  Switzerland understands that, despite various efforts through introduction of 
restrictions on logging and through reforestation programs, the Indonesian government 
experiences difficulties to protect the country's fo restry resources. Could Indonesia elaborate on its 
future plans regarding the enforcement of a sustainable management of natural resources?  
Response: 
Indonesia has implemented SVLK – Sistem Veri fikasi Legalitas Kayu (Indonesian Timber 
Assurance System) by the issuance of Minist er of Forestry Regulation No. P.38/Menhut-
II/2009 which then is revised by P.45/Me nhut-II/2012, which one of the subject 
matters is all production forest has to be certified with SFM certification.  
By this system, the management of forest resources becomes the responsibility of all 
actors involved in the scheme. These actors are: government to re gulate and facilitate, 
forest concessionaires to practice SFM, in dependent assessment/verification bodies 
(LP&VI) to conduct SFM certification as we ll as surveillance, National Accreditation 
Committee to accredit LP&VI and independent monitoring to monitor the whole process 
run according to the regulation. 
Appendix 
Table A3. 2 Products subject to import licensing requirements, 2012 
 According to table A3.2 food and beverages can on ly be imported through one of 5 designated sea 
ports or through any international airport. Switzerland would like to ask Indonesia to clarify the 
criteria on which these sea ports are identified and whether the number of ports will be extended 
in the foreseeable future, especially with regard to the capacity to import food and beverages in 
order to further promote carriage by sea. 
Response: 
The rationale for the provision on import of the said products through certain ports of 
entry is to create better trade practices th rough ensuring consumer protection in the 
sense that products which enter Indonesia must be susceptible for human consumption 
and environment friendly (i.e. not low qua lity and hazardous products). Those certain 
ports of entry we consider as ports that have  the most sufficient infrastructure both in 
system and physical facilities.   WT/TPR/M/278/Add.1 
 
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  Appendix 
Table A3. 2 Products subject to import licensing requirements, 2012 
 
Table A3 describes the import licensing requirements for animals and animal products. Is our 
understanding correct that the import of carcass meat for retail sale is not possible? If this understanding is correct, we would like to ask Indonesia to provide the underlying reasons for the 
import prohibition of carcass meat for retail sale. 
Response: 
 Retail sales of imported carcasses, meats,  edible offal and/or processed are not 
allowed due to the fact that the products  are imported in chilled or frozen form. 
 In principle, the chilled or fr ozen products must be kept  chilled or frozen and must 
meet the cold chain system for safety from  contamination. In Indonesia, cold chain 
facility is still limited and mostly owned by hotel, restaurant, catering, and food 
processing sectors. The majority of retails  in Indonesia are traditional markets which 
have no cold chain facility. This condition will lead the imported meat and carcass to 
be distributed with no cold chain facility. Since Indonesia is a tropical country with 
high humidity, this situation will significantly contribute to massive growth of 
microorganism which may be hazardous to customers’  health. 
 
THAILAND 
 
QUESTIONS REGARDING THE SECRETARIAT REPORT 
III. TRADE POLICIES AND PRACTICES BY MEASURE 
Page 45 (paragraphs 3.37-3.40) 
Question: With regard to Indonesia’s non-automatic import licensing system, could Indonesia clarify how this 
current system help achieve various enumerated objectives, especially “to protect domestic 
production” in comparison with other alternative measures? 
Response: 
Indonesia is still reviewing and studying the impact of import policies and their related 
policies. As we categorize our policy is a li ving policy, Import of horticultural products 
was already amended by the newest regulation s of Minister of Tr ade (16 of the year 
2013) and Minister of Agriculture (47 of th e year 2013). Import policy on beef and 
animal products is still under processing an d it is predicted that end of May will be 
finished. 
Question: The procedure for receiving an approval for an import licence, as indicated in the paragraphs, 
involve many steps and are more burdensome and trade-restrictive than necessary.  The licenses 
are generally approved contingent upon a recommendation being provided by one or more ministries or agencies with an expertise in the pa rticular area. In addition, the process of issuing 
the recommendation is unclear and without a specific deadline, causing unreasonable difficulties to 
importers and exporters due to the prolonged and complicated process. Thailand would like to 
know whether the relevant Indonesian regulations provide for any deadlines for completing the 
consideration of and granting import licences? If so, what are they? Have they been implemented? 
Response: 
The application of import license will be pr ocessed from the date of receipt when the 
application is complete and rightful . 
 WT/TPR/M/278/Add.1 
 
- 195 - 
 
  Question: 
Many WTO Members consider that the Indonesian import licensing system is complicated and 
inconsistent with Indonesia’s WTO obligations und er the General Agreement on Tariffs and Trade, 
the Agreement on Agriculture, and the Agreemen t on Import Licensing Procedures.  How does 
Indonesia plan to resolve this problem?  
Response: 
As part of our commitments to trading partners, we are continously reviewing and 
enhance coordination with related stockhol ders to improve our trade policies. The 
implementation of the regulations of import is evaluated from the date of publication.  
IV. TRADE POLICIES BY SECTOR  
Page 77 (paragraph 4.16)  
Question: 
Thailand would like to know about the reason(s) behind Indonesian’s lowering import quotas for 
beef and cattle products. 
Response: 
No such measures regarding quantitative re strictions or quotas are stipulated in 
regulations regarding animal and animal products.  
Question: Could Indonesia please clarify the reasons why it introduced an import quota system on fresh and 
processed fruits and vegetables? Please explain how these measures are consistent with WTO 
provisions. 
Response: 
No such measures regarding quantitative re strictions or quotas are stipulated in 
regulations regarding horticultural  products. We are of the view that this measure are consistent with WTO provisions 
Page 82 (paragraph 4.42) 
Question: As the 2008 Health Ministry decree requires local and foreign pharmaceutical companies operating 
in Indonesia to manufacture locally in order to get drug approvals, does the Indonesian 
government’s system for drug approvals provide an  opportunity for prospective drug exporters to 
Indonesia to apply for drug approvals?  If so , could Indonesia explain the criteria for such 
application in order to obtain drug approvals for imported drugs? 
Response: 
The prioritized Import of drugs are as follow: 
 Drugs for public health programs; 
 New drugs invention; and/or 
 Drugs which are needed but not produced domestically. 
Detailed information concerning criteria and pr ocedure of drug regist ration is stated in 
Regulation of Head of the National Agency of  Drug and Food Control (BPOM) No. HK.03.1 
.23.10.11.08481 year 2011 concerning the criter ia and governance of drug registration. WT/TPR/M/278/Add.1 
 
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  UNITED STATES 
 I: Questions on the Secretariat Report (WT/TPR/S/278) 
Summary 
Trade and investment policy framework 
 Page 7, paragraph 6:   The Secretariat reports that “Indonesia’s medium-term trade policy 
objectives are to increase the export of non-oi l products, strengthen the domestic market and 
manage the availability of basic products; and to strengthen national distribution channels.”  Please explain the steps that the Government of Indonesia is taking to “strengthen its domestic 
market and manage the availability of basic products?”  What specific sectors is Indonesia focusing 
such efforts on? 
Response:  
Export of non-oil products: 
Export of non-oil products has been suppor ted by the export market diversification, 
especially exportation to FTA partners and other emerging markets. 
Government of Indonesia (GoI) has endeavoure d to maintain the level of non-oil export 
through several measures, i.e. promotion to enhance nation branding and promotion  of 
domestic products in several emerging markets. 
Such promotion are carried out in the form of  instore promotion, active abroad expo , 
independent abroad expo, domestic expo and trade mission. 
Managing the avaibility of basic products 
GoI has established the Early Warning System  (EWS) to monitor the level of price and 
avaibility of basic and strategic products th roughout Indonesia. The system has enabled 
the Government to anticipate price fluctuatio n and scarcity of basic and strategic goods. 
The main objective of EWS is to provide accu rate and reliable information to be analyzed 
as recommendation for the decision makers to  conduct a proper action related to price 
stabilization. 
The system can also be reliable data source to anticipate price instabillity while there is 
a national religious holidays, such as Ied and Christmas. The EWS application can be 
accessed at http://e ws.kemendag.go.id/ 
Strengthening national distribution channel : 
In strengthening national distribution channe l, measures which have  been planned to 
be carried out are as follow: 
1. Enhancement basic and strategic goods distribution; 
2. Development of distribution infrastructure s and capacity enhancement of logistic 
business/service provider; and  
3. Coordination in order to regulate and to develop National Logistic System 
(Sislognas) 
The ministry of Trade (MoT ) has exercised several actions to support the program 
through revitalitation of several traditional markets to support economic activity for 
most of Indonesian people. MoT has also es tablished a Regional Distribution Centre 
(PDR) in Makassar, South Sulawesi. The PDR establishment is aimed as a “distribution 
point” of goods especially basic and strategic goods, to be delivered to other regions,  WT/TPR/M/278/Add.1 
 
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  3.  TRADE POLICIES AND PRACTICES BY MEASURE 
3.1.3.4  Temporary changes to customs duties 
 
Page 39, paragraph 3.27 :  The Secretariat report states that Indonesia may wave import duties 
temporarily for the production of certain goods bu t that the “imports must: not yet be produced 
domestically; be domestically produced but do  not meet the specification needed; or be 
domestically produced but not in quantities necessary to meet the industry need.”  How does 
Indonesia determine these requirements?  
3.2.2.1  Export prohibitions 
Page 55, paragraph 3.78 :  We understand that Indonesia’s Supreme Court has struck down 
some elements, including the export ban on minera l ore starting in 2014.  As such, what is the 
status of Ministerial Regulation No. 34 and the prohibition on mining companies from exporting 
mineral ore products?   
Response: 
Information regarding Supreme Court revo king several provisions, including the 
prohibition of raw minerals export  in 2014, is absolutely incorrect. 
Under the prevailing legal system in Indo nesia, the Supreme Court does not possess 
authority to conduct a judicial review of the Act; it can only perform the judicial 
legislation under the Act.  
In regard with regulation of minerals, th e Supreme Court has indeed revoked several 
provisions on the Regulation of the Mi nister of Energy and Mineral Resources. 
Nonetheless, it excludes regulation of proh ibiting the export of raw minerals by 2014 as 
mandated by the Law 4 of 2009 on Mineral and Coal. 
4.  TRADE POLICIES BY SECTOR 
4.4  Agriculture, fisheries and forestry  
Further, the Secretariat report notes that Indonesia introduced the National Programme to 
Increase Rice Production in 2007.  The objective of the program was to increase rice production in 2007 through 2009.  According to the Indonesian Central Bureau of Statistics, Indonesia has had a 
surplus in national rice production since 2008. 
If the program has not been discontinued, what purpose does this program continue to have given 
its objective and the surplus of rice production?   
Response: 
The Government of Indonesia has the responsi bility to ensure the avaibility, accessibility 
and affordability of staple food commodities in cluding rice for the people of Indonesia. 
Surplus of rice production is absorbed by BULOG and used for public stock, domestic food aid and disaster payment. 
 
4.6  Manufacturing 
Page 81, paragraph 4.32: The Secretariat report notes that “the role of manufacturing has 
declined significantly or stagnated in its value added, its share of exports, and its share of 
employment.”  It appears that the draft Law on Industry includes a number of provisions on how 
to counter this, including localization and technology transfer requirements, foreign ownership 
restrictions, and imposition of tariffs or quotas to protect domestic industries.  What is the status 
of this bill and will there be an opportunity to comment on it?  
Response: 
The draft law of industry will regulate solely the industrial policies; among of which are 
the development of industrial estate, gree n industry, enveronmental impact analyze, WT/TPR/M/278/Add.1 
 
- 198 - 
 
  transfer of technology , inovation and hu man resources on industry, facilities for 
industry, industrial information and industrial  license. Other issues related to trade will 
be placed in the Draft Law of Trade.  The latter will regulate dome stic trade, foreign 
trade, export development, development of small scale, medium enterprises, standard 
and cooperatives, consumer protection and trade defense, trade cooperation, border 
trade and e commerce. Both draf t laws have  not been disccused in parliament so that 
there is still big room to comment on them . Comments can be sent to both ministries. 
 
4.6.2  Trade-related measures 
Page 82, paragraph 4.42 :  The Secretariat report provides information regarding importer 
license under Regulation No. 39/MDAG/PER/10/2010.  We understand that this regulation has 
been struck down by the Supreme Court and new re gulations have been issued.  In light of this, 
please provide an update on the status of this regulation. 
Response: 
The said regulation has been revoked by Re gulation of the Minister of Trade No. 24/M-
DAG/PER/4/2012 and which came into effect on 2 May 2012. 
The Secretariat report also notes: “A 2008 Health Ministry decree requires local and foreign 
pharmaceutical companies operating in Indonesia to manufacture locally in order to get drug approvals.”  What is the rationale for this requirement?  Are there any considerations to revoke or 
amend this decree to lift the local manufacturing requirement? 
Response: 
Regulation of Minister of Health no. 1010 year 2008 did not require  the foreign 
pharmaceutical companies  to manufacture in Indonesia for having drug approval. 
Imported drug registration is conducted by  pharmacy industry located in Indonesia 
(foreign or local pharmaceutical companie s) which have acquired approval from 
pharmacy industry abroad (the indust ry intends to export in Indonesia). 
 
II. Questions on the Government Report (WT/TPR/G/278) 2.  Economic and Trade Environment 
2.2  Financial sector 
Page 6, paragraph 2.12 :  Please provide further explanation of the Single Identity Number.  Will 
this impact Indonesia’s current fuel subsidy?  
Response: 
Single Identity Number (IN) is a  unique and an integrated identity  consisiting data 
from government institutions and privates.  It is planned that  IN will replace several 
documents in only one identity so that the ow ner of IN does not necessary to repeat  
complicated prrocedures in gaining a certain do cument. If it succeeds, it will reduce the 
red tape. This IN will not give impact on current fuel subsidy.  
3.  International Trade Relations  
3.1.2.6  Aid for Trade 
 
Page 10, paragraph 3.12 :  Indonesia reports that it provided aid for trade to a few LDCs 
through the South-South Cooperation mechanism.  Can Indonesia elaborate on such aid provided, 
including to which countries in 2010-2012 it has provided aid for trade? 
Response: 
The Government of Indonesia has been active ly conducting technical cooperation within 
the framework of South-South and Triangular  Cooperation. Since the 1980s, Indonesia 
has been organizing technical cooperatio n programs in various areas under the 
framework of Technical Cooperation among Developing Countries (TCDC) and Third WT/TPR/M/278/Add.1 
 
- 199 - 
 
  Country Technical Cooperation (TCTP) utilizin g an annually allocated budget and support 
from development partners.  Indonesia's SSTC brings the vision of a be tter partnership for pr osperity based on the 
following principles: equality; mutual resp ect; non-conditionality; the sharing of 
experience, knowledge and comparative adva ntages; being demand driven; and looking 
for mutual benefits, opportunities and sustainability. 
Indonesia has provided training and technica l assistance on various fields, such as: 
agriculture, economic and development, finance and public administration. On 
agriculture, Herewith the list of Indonesia SSTC :  
 
Indonesia SSTC Country 
Capacity Building Program on Artificial Insemination for 
Cattle  Cambodia, Lao PDR, Fiji, Bangladesh, Srilanka, 
Mongolia, Sudan, Zimbabwe 
the revitalization of the Fa rmers Agricultural Rural 
Training Center (FARTC) in Tanzania and Agricultural 
Rural Farmers Training Center (ARFTC) in Gambia Tanzania and Gambia 
Capacity Building Program On Export and Industry Kenya, Vietnam and Lao 
Capacity Building Program on Capital Market 
Development for ASEAN Countries ASEAN Countries 
Capacity Building Progra m on Democratization and 
Good Governance Program Afghanistan, Bangladesh, Fiji, Lao PDR, Maldives, 
Myanmar, Pakistan, Palestine, PNG, TL, Vanuatu 
and Vietnam. 
5.  Future Policies Directions 
Page 15, paragraph 5.1 : Please clarify what is meant by “encourage utilization of various trading 
schemes.”  
Response: 
Indonesian has a trading scheme: There are 3 (three) trading schemes on Export and 
import as follow: 1. Goods which are free to export/import ; 
2. Goods which are restricted to export/import, 
3. Goods which are prohibited to export/import 
 
Page 15, paragraph 5.2 : Please describe the specific measures Indonesia has adopted or is 
considering to “increase export facilitation.” 
Response:  
Indonesia implements a scheme allowing flexibility to exporters to conduct the 
business, including: 
a. on-line issuance of Certificate of Origin : Indonesia Electronic Ce rtificate of Origin 
(CSEC) 
b. on-line licensing system : Licensing Services on Trades 
III: Other Questions 
Local Content Requirements:   We remain concerned about local content requirements in a 
growing number of sectors, including telecommuni cations, mining and oil and gas.  The draft 
Industry Law also includes significant localization and technology transfer provisions.  Please 
explain whether Indonesia plans to eliminate su ch requirements.  If no, please explain how 
Indonesia views such requirements in light of the TRIMs agreement.   WT/TPR/M/278/Add.1 
 
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  Page 15, paragraph 5.2 : Please describe the specific measures Indonesia has adopted or is 
considering to “increase export facilitation.” 
Response: 
Indonesia implements a scheme allowing flexibility to exporters to conduct the 
business, including: 
a. on-line issuance of Certificate of Origin : Indonesia Electronic Ce rtificate of Origin 
(CSEC) 
b. on-line licensing system : Licensing Services on Trades 
URUGUAY 
 
A continuación se transmiten algunas consultas referidas al informe preparado para el sexto 
Examen de las Políticas Comerciales de Indonesia que ha sido redactado por la Secretaría de la 
OMC bajo su responsabilidad.  
Indonesia mantiene un régimen de licencias no automáticas para productos hortícolas. A través de 
éste los importadores deben cumplir con numerosos pasos antes de importar productos hortícolas. 
Estos regímenes de licencias tienen en las importaciones efectos importantes de restricción del 
comercio y se utilizan para aplicar lo que parecen ser medidas incompatibles con las normas de la OMC.  
Según el Artículo VIII, Párrafo 1 c) del Acuerdo General sobre Aranceles Aduaneros y  Comercio 
(1994), “los miembros deben reducir al mínimo los efectos y la complejidad de las formalidades de 
importación y exportación y de reducir y simplificar los requisitos relativos a los documentos 
exigidos para la importación y la exportación”. El procedimiento para el trámite de licencias dispuesto por Indonesia parece tener demasiadas cargas administrativas que las absolutamente 
necesarias para administrar la medida. Según el Artículo XI, Párrafo 1 del GATT (1994), “los 
miembros no impondrán ni mantendrán prohibiciones ni restricciones a las importaciones….”. Según el Artículo IV, Párrafo 2 del Acuerdo sobre Agricultura de la OMC, “ningún miembro 
mantendrá, adoptará ni restablecerá medidas que provoquen restricciones al comercio….”. En base 
a lo anteriormente expuesto, mucho agradecemos que Indonesia informe acerca de lo siguiente: 
¿Cuál/es es/son el/los objetivo/s de Indonesia para la aplicación de estos regímenes de licencias 
de importación para productos hortícolas frescos?  
Response: 
The objectives of these regulations are: 
 
 To protect human health; 
 To ensure business certainty; 
 Transparancy; 
 To simplify import licensing process; 
  import database system 
¿Cuáles son los períodos de tiempo mínimo, promedio y máximo requeridos para la obtención de 
las licencias de importación? ¿Cómo se asignan las licencias de importación, específicamente en 
relación a volúmenes y orígenes?  WT/TPR/M/278/Add.1 
 
- 201 - 
 
  Response: 
 Not later than 8 (eight) working days after  all required documents appropriately and 
completely  submitted 
 There is no allocation for import licensing regarding volumes and origin of the import 
products. 
¿Los volúmenes totales o los valores totales monetarios de los productos cuya importación se 
autorice, así como los cambios que puedan produc irse son publicados? Sí fuera así, ¿Dónde es 
posible consultar dicha información?  
Response: 
The approved volume and value of the import  product only inform  to the respective 
importer. 
Según el Artículo X, Párrafo 3 a) del GATT (1994), “los miembros aplicarán de manera uniforme, 
imparcial y razonable sus leyes, reglamentaciones, decisiones y disposiciones administrativas”. 
Según el Artículo 1, Párrafo 3 del Acuerdo sobre procedimientos para el trámite de licencias de 
importación, “las reglas a que se someten los procedimientos de trámites de importación se aplicarán de manera neutral y se administrará n justa y equitativamente”.  Los regímenes de 
licencias aplicados por Indonesia no parecen se r aplicados de manera uniforme, imparcial y 
razonable, porque las medidas parecen ser aplicadas de manera imprevisible.  
Según el Artículo XII, 3 a), “cuando se concedan licencias de importación en el marco de 
restricciones a la importación, el miembro que aplique una restricción facilitará, a petición de toda parte contratante interesada en el comercio del producto de que se trate, todas las informaciones 
pertinentes sobre la aplicación de esta restricción, las licencias de importación concedidas durante 
un período reciente y la repartición de estas licencias entre los países abastecedores”. Según el Artículo 3, Párrafo 5 a) del Acuerdo sobre procedimientos para el trámite de licencias de 
importación, “los miembros proporcionarán información pertinente sobre los trámites de licencias 
de importación…”. Las medidas de Indonesia en materia de licencias no parecen informar a los comerciantes de las bases de otorgamiento de las licencias. En base a lo anteriormente expuesto, 
mucho agradecemos que Indonesia informe acerca de lo siguiente: 
 
¿Cuáles son los criterios utilizados para distribuir las licencias de importación entre los 
importadores?  
Response: 
There is no allocation of import of holticul tural product under Regulation of the Minister 
of Trade No. 16/M-DAG/PER/4/2013 dated 22 April 2013, concerning The Provisions of Import of Holtucultural  Product which revoke d the Regulation of the Minister of Trade 
No. 30/M-DAG/PER/5/2012 concerning The Provis ions of Import Horticultural Products 
which amanded several times and the last am anded by Regulation of the Minister of 
Trade No. 60/M-DAG/PER/9/2012  
¿Los orígenes de los productos son contemplados dentro de los criterios utilizados para distribuir y 
autorizar las licencias de importación entre los importadores?  
En caso afirmativo ¿Cómo y cuáles son los criterios utilizados para la distribución de las licencias 
entre los países abastecedores? 
Response: 
There is no Rules of Originis (ROO) consider ation for criteria used to distribute and 
authorize the import licenses to importers. WT/TPR/M/278/Add.1 
 
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  TURKEY 
 REPORT BY THE SECRETARIAT 
1 ECONOMIC ENVIRONMENT  
1. 6 Outlook, para 1.23 
 The Secretariat Report states, “It is important that domestic industrial policy considerations - 
aimed, inter alia, at developing local industries and supporting domestic investors and seeking to move up the value chain - are balanced with maintaining an open foreign trade and investment 
regime.” 
Could Indonesia elaborate on and exemplify the specific policy actions taken in order to maintain the above mentioned balance between industrial policies and an open foreign trade and 
investment regime?  
Response : 
In order to strengthen domestic industries , GoI has set strategic goals, as follow:  
a. Increasing the industrial value-added,  
b. Increasing the share in domestic and international market,  
c. Strengthening the supporting factors for industrial development,  
d. Increasing the capability of technolo gy innovation for energy-saving and 
environmental friendly industries,  
e. Strengthening and completing the industrial structure,  
f. Increasing the spread of industrial development, and  
g. Increasing the role of small and medium industries to GDP. 
 
The current balance of the protective market open for the foreign products indicates that 
the tariff line now is approaching the averag e  o f  6 , 8  % ,  a n d  i f  w e  l o o k  i n t o  t h e  N o n  
Agriculture (NAMA) products, the tariff line is  6 %. This situation shows that Indonesia 
has given more opportunities to fore ign products in Indonesia market. 
 However, Indonesia tariff line is relatively  lower than that of developed or other 
developing countries. 
In regards to the investment, Indonesia has st ipulated that the new investment law is to 
open more sectors for foreign participation and also provide more incentive. Investment 
performance in the industrial sector conti nues to show impressive improvement over 
the last few years. In the second quarter of 2012, foreign direct investment in the 
industrial sector grew by 62.1% or increa sed from 1.9 billion US dollar to $ 3.1 billion 
US dollar compared to quarter 2 in 2011, while  domestic investment increased 14.9% or 
increased from 10.8 trillion rupiah to 12. 5 trillion Rupiah in the same period. 
 
To attract more investment, Indonesian government offers several incentives for capital 
investment, Tax Holiday (PMK 130/2011) and Tax Allowance (PP 52/2011).  
Tax Holiday facility is granted to 5 (five) groups of pioneer industries namely basic 
metals, petroleum refining and / or organic basic chemicals derived from petroleum and 
natural gas, machinery, industry in the field of renewable resources, and 
communications equipment), with a minimu m investment value of 1 Trillion rupiah 
(approximately 110 million US dollar). 
This incentive covers 5-10 years income tax exemption starting from commercial 
production and 100% realized planned inve stment and 50% income tax reduction for 
2 years after the end of the Tax Holiday facility. 
 The other tax incentive provision is Tax al lowance, which refers to the Government 
Regulation No. 52 Year 2011 regarding the In come Tax Facilities for Investment in 
Certain Business Fields and/or in Specific  Areas. This facility is offered to new 
investment or expansion of industri es that fulfills the requirements. 
 WT/TPR/M/278/Add.1 
 
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  Tax Allowance provides fiscal facilities either  (1) reduction in net income by 30 percent 
of total investment, which is able to be dist ributed within six years, amounting to five 
percent; (2) accelerated depreciation and amor tization; (3) the imposition of income tax 
on dividends paid to foreign tax subject of  10 percent or lower in accordance to the 
applicable of double taxation avoidance agr eement; (4) compensation for the loss of at 
least five years but does not exceed 10 years.  
4 TRADE POLICIES BY SECTOR 4. 7 Services, para 4.59 
“BI regulations stipulate that 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. Foreign banks are allowed to establish branches and sub-
branches in 12 major cities in Indonesia.” 
Could the Government of Indonesia explain why these requirements are imposed? Response: 
The requirements imposed on establishing foreign banks in Indonesia  are to help 
ensure that the foreign banks established in  Indonesia are sound and resilient, and thus, 
they do not hamper financial stability or  adversely effect the banking system in 
Indonesia. Such provisions entail that foreig n establishments in Indonesia positively 
contribute to the national economy.   
Foreign banks are allowed to establish branches and sub-branches in eleven major cities 
in Indonesia (not twelve cities as sp ecified by the Secretariat Report).   
 4. 7 Services, para 4.71  
 “…While these foreign ownership level goes beyond Indonesia’s current commitments in its WTO 
GATS schedule, the new limits on fixed services appear to represent a step backward from recent practice…”  
Could the Government of Indonesia explain the concerns that lead them to take these decisions 
concretely? 
Response: 
Please refer to the response to question number 12 (page 84, para 4.47) 
4. 7 Services, para 4.76 
According to the paragraph, Telkom seems do minant in the market and supported by the 
government by having remarkable amount of shar es. Could the Government of Indonesia clarify if 
the mobile operators market functions well enou gh despite this degree of public ownership? 
Response: 
As stipulated in the Ministerial Transpor tation Decree No. 31/2003, the government 
established the Independent Body of Indo nesia Telecommunications Regulator (Badan 
Regulasi TeIekomunikasi Indonesia/BRTI). Th e said decree is revised by the ministerial 
decree of information and communication technology No. 25/Per/M.Kominfo/11/2005. 
BRTI is handled by the Ministry of Communi cation and Information Technology’ (MCIT) 
as stipulated in the Ministerial Decree No. 36/2008. 
BRTI is accountable for ensuring transpar ency, independence, and fairness in the 
telecommunication industry. The BRTI acts to regulate, supervise, and guarantee the 
implementation of fair competition through transparent, predictable, and accountable WT/TPR/M/278/Add.1 
 
- 204 - 
 
  policy and regulation including the licensing proc ess.  BRTI is not part of, or responsible 
to any operators. 
4. 7 Services, para 4.86 
“Efficiency in the major Indonesian ports is questionable, by international standards…”  
Could the Government of Indonesia tell if there is a future plan to improve the conditions and 
capacity of the ports? 
Response: 
Yes. The Government of Indonesia has  plans to improve the conditions and capacity of 
the ports in Indonesia. In this regard, the main plan is  The Master Plan For The 
Acceleration and Expansion of Indonesia’s Economic Development (MP3EI) aiming to 
develop Global Hubs in the western and ea stern part of Indonesia. The Western area 
hub is Port of Kuala Tanjung, and The Easter n area hub is Port of Bitung. These hubs 
would act as international hub ports that provide streamlined linkages to major trading routes.   
4. 7 Services, para 4.104   
“Foreign directors, managers, and technical experts/advisors, unless mentioned otherwise, are 
allowed a maximum stay of two years, with a possible one-year extension.” Could the Government of Indonesia give some information about the reasons which are contained 
in the phrase underlined? 
Response: 
In the case of auditing and accounting serv ices, stay periods are subject to the general 
two-year-rule. 
4. 7 Services, para 4.109 
According to the paragraph, could the Government of Indonesia give more explanation regarding 
these restrictions? When will Indonesia cease to apply these restrictions? 
Response: 
Please refer to the response to question number 106 (page 95, para 4.109) 4. 7 Services, para 4.110 
Why “Foreign investment is prohibited in broadcast and media sectors”?  Is it a security issue for 
Indonesia? Could Indonesia provide clarification if they have a timetable for the removal of these 
prohibitions? 
Response: 
Based on Broadcasting Regulation No. 32/2002, broadcasting services could be 
conducted by 4 institutions, namely; Pub lic Broadcasting Institution, Private 
Broadcasting Institution, Community Broa dcasting Institution, and Subscription 
Broadcasting Institution. With this regard , Private Broadcasting Institution is a 
commercial broadcasting institution, whic h the business only carried out a radio 
broadcasting or television broadcasting serv ices.  The institution should be Indonesia 
legal entity. This private broadcasting inst itution may increase and expand the capital 
from foreign investment in which the amount is not more than 20% (twenty percent) of 
the total capital. Additional questions WT/TPR/M/278/Add.1 
 
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  Government Report  
Economic and Trade Environment Page 5 para 2.8 
With regard to regulations, it is stated that the government will amend or remove regulations that 
inhibit the implementation of investments and will provide both fiscal and non-fiscal incentives. 
Could the Government of Indonesia provide further information about the regulations that will be 
amended or removed, and comment on whether there is a roadmap for the introduction of such legal reforms and how these reforms will be implemented?  What are the fiscal and non-fiscal 
incentives to be provided in this regard and will the foreign firms operating in Indonesia be eligible 
for such incentives? 
Response : 
Fiscal incentives to be provided are Exemptio n of Import Duties on Machines as well as 
Goods and substances for Industrial Constr uction or Development in the Scope of 
Investments and Tax allowance based on revisi on of government regulation concerning 
income tax facility for investment in certai n business fields and/or certain regions. On 
the other hand, the non-fiscal incentives ar e producer importer identification number 
(API-P) and general importer identification (API-U).  
WTO Secretariat's Report 
Economic Environment Introduction Page 12 para 1.3, footnote 1 
 
Despite the growth achieved in overall economic ac tivity, the secretariat report states that over 
50% of the population still lives on less than US$2 a day (purchasing power parity) and income 
inequality, as measured by the Gini coefficient, increased from 0.32 in 2004 to 0.37 in 2009. 
Could the Government of Indonesia  explain its plans to alleviate poverty and fight rising inequality 
in order to achieve a more balanced economic growth? 
Response: 
It shall help to use 2 USD (PPP) as the benchmark to simplify the measurement of 
poverty as we compare the poverty numbe r across and between countries. However 
using 2 USD (PPP) is not how the poverty has been measured in Indonesia. Indonesia 
has two kinds of official poverty measurem ents based on: macro data (available since 
1976) and micro data (available in 2005, 2008 and 2011).   
The macro measurement of the poverty in In donesia is based on basic need approach 
which measures an average consumption of ba sic essentials contained of a 52 items of 
food bundle and 47 items of non-food bundle  typically consumed by the lowest 20% of 
Indonesian population as reference popula tion. The Central Statistical Agency of 
Indonesia (BPS) uses 2,100 calories intake/capita/day resulted from 
52 food-commodities to calculate food povert y line. Using the calorie contents of each 
food, BPS calculated the calorie intake fo r each household. Those with daily food 
consumption worth less than 2,100 kilocalories are classified as poor. To calculate the 
expenditure poverty line, non-food expend itures such as on health, education, 
transportation, etc. (47 items) are added to the calculation. If on e accepts a definition 
that minimum standard of living for cons umption or expenditure at a certain level 
known as the poverty line, those with either  consumption or expenditures below this 
line are considered poor. In case of Indonesia, those with monthly expenditures for both foods and non-foods less than the pove rty line are classified as poor.  
 
In Indonesia, the poverty line varies across provinces and between rural and urban areas. This is due to the differences in food and non-food prices and in consumption WT/TPR/M/278/Add.1 
 
- 206 - 
 
  patterns. Thus, the monthly money metric of  the national poverty line for rural and 
urban areas are also different. The reason why applying the 2 USD (PPP) as benchmark 
will not be that simple.  Curently the National Poverty Line is Rp .259.520,- per capita per month.  With this 
poverty line, total number of people who liv e under poverty line is about 28,59 million 
people, or 11,66% of the total population.  
The macro poverty measurement is useful for planning and evaluating the poverty 
programs and geographical targeting, however, it cannot show who the poor are and where they are, so that it is no operational for direct intervention. 
 
To enable to reduce the poverty head count number, as well as reducing the relatively 
widening gap showed by Gini coefficient,  since 2005 and then 2008, Indonesia has 
stated using the poverty micro data for po verty program targeting. In 2011, Indonesia 
started to integrate the data for the pove rty reduction program targeting using the 
Unified Data Base, which can show poor house holds and the poor - by name by address.  
 
In short, to close the relatively widening poverty gap, Indonesia now is improving the 
poverty targeting by unifying the poverty da ta, improving the current poverty reduction 
programs, integrating and synergizing all poverty reduction programs. Indonesia will 
also launch the Master Plan for Acceleration  and Expansion for Poverty Reduction in 
Indonesia (MP3KI) for transforming poverty re duction programs in the near future.  The 
time frame of the plan is up to 2025.  
Recent Economic Developments Macroeconomic Policy Framework 
Page 15 para 1.11 
It is stated in the government report that Indo nesia faces formidable financing challenges as it 
expands the coverage of its social security system and develops its infrastructure.  
How does Indonesia plan to address these financing challenges given that the coverage of social 
security must be expanded in the face of negative changes in Gini coefficient.?  
Response: 
 
Low income groups in most developing co untries, including Indonesia, usually face 
volatility in consumption due to external shoc ks, either positive or negative. Positive 
shocks such as improvements in surround ing infrastructure, better education or 
additional skills to be absorbed by mark et may lift households out of poverty. 
Meanwhile, negative shocks such as a crop  loss, a job loss and health problems can 
easily send households who are currently no n-poor fall below the poverty line, thus 
more poverty head count numbers and/or  the depth and severity of poverty. 
 
To tackle this issue of poverty gap and th e financing challenging for social security, 
Indonesia has two strategies: 
1. through macroeconomic policy, by focusing more on strengthening domestic 
economy to sustain economic growth by  pushing for domestic consumption, 
increasing the domestic investment th rough the state budget and ensuring the 
absorption of state budget to drive the ec onomy, pushing for the export, ensuring 
the high quality human resources and more attractive environment for the foreign 
direct investment in Indonesia and creati ng the stability in social, political and 
economical condition. It is expected that these can help to strengthen the 
purchasing power of the middle-class and small-medium enterprises so in effects 
will contribute to the ability for subsidy and job creation for the poor, thus the 
ability to pay or finance the social security; 
2. through affirmative policies consisting of  various poverty reduction program.  One 
of the major program in health sector , the social assistance health program WT/TPR/M/278/Add.1 
 
- 207 - 
 
  targeted for the poor (Jamkesmas), w ill be transformed to health insurance 
program for the poor.  This health insurance to finance ONE social security 
program which initially will finance limited  vulnerable groups, but at the end is 
expected to be universal coverage. This plan  is outlined in the Master Plan for the 
Acceleration and Expansion of Reduction of Poverty in Indonesia.  
It is also stated that energy subsidies amounted to roughly 28.9% of central government spending 
in 2011. 
Could the Government of Indonesia explain the types and dollar amounts of energy subsidies 
provided? 
Response: 
The Government allocates some funds in its annual budget, which can be reviewed and 
revised, to compensate general utilization of energy. The total energy subsidies paid in 
2011 was IDR 164.7 trillion or equal to US$17.3 million. 
Trade Policy Regime: Framework and Objectives 
Trade Policy Objectives 
Page 21 para 2.3 
The report states that the Ministry of Trade’s Strategic Development Plan (2010-2014) constitutes 
the main framework for the development of Indonesi a’s trade and it focuses on three goals one of 
which is strengthening the domestic market and strengthening national distribution channels.  
Could the Government of Indonesia explain how it plans to achieve the goal of strengthening the 
domestic market and national distribution channels through trade policy? 
Response: 
There are measures that have been carried ou t by the Government of Indonesia (GoI) as 
supporting actions to strengthen the domestic market, as follow: 
1. Development of trading business thro ugh streamlining the trading business 
licensing and developing online trade licensing resgistration; 
2. Development of small and medium enterprises (SME’s); 
3. Development of creative econ omy as stipulated in Presidential Instruction No. 6 
year 2009; 
4. Enhancement of domestic products cons umption through promotion, and society 
education; 
5. Development and supervision of future exchange; and 
6. Development and supervision of auction market. 
Moreover, the GoI is not only focusing its target to strengthen the domestic market but 
also strengthens national distribution cha nnel which has been carried out through the 
following measures: 
1. Enhancement basic and strategic goods distribution; 
2. Development of distribution infrastructure s and capacity enhancement of logistic 
businesses/service provider; and WT/TPR/M/278/Add.1 
 
- 208 - 
 
  3. Coordination in order to regulate and to develop National logistic System 
(Sislognas) 
3.1.6. Contingency Measures 
According to the page 46 of the Trade Policy Review (TPR) Report by the Secretariat dated 
March 6, 2013, (WT/TPR/S/278) “The Investigations must be completed within 12 months 
(extendable to 18 months in special circumstances)”   
Table 3.9 concerning the anti-dumping investigations  at page 47 of the TPR Report shows that the 
anti-dumping investigation on imports of wheat flour originating in or exported from Turkey, Australia and Sri Lanka which was initiated November 17, 2008  was terminated on 
August 13, 2012 .   
Question: 
Within this framework, could Indonesia explain why above mentioned anti-dumping investigation 
could not be completed within 12 months? Is the extension of the investigation up to nearly 
4 years in line with current Regulation No. 34 which is in force as of 2011? 
Response: 
KADI concluded the anti-dumping investigatio n of wheat flour from Turkey pursuant to 
ADA and Government Regulation no. 34 Year 2011 that is before 18 months. Petitioner 
withdrew the application while the nati onal interest was being discussed. 
3.1.6.2 Safeguard Measures 
According to the page 48 of the Trade Policy Revi ew (TPR) Report by the Secretariat dated March 
6, 2013, (WT/TPR/S/278) “The main changes introduced by the Government Regulation No. 34 
with respect to safeguards rules are: (a) the re moval of a 200-day time frame for investigations”   
Question: 
Turkey would like to get clarification regarding the duration of a safeguard investigation. Is there a 
time-frame for safeguard investigations in Regulation No. 34?  
Response: 
Regarding the timeframe for safeguard invest igations, the Government Regulation No. 
34 does not regulate a timeframe for safeguard in vestigation, as it is  not required by the 
WTO Agreement on Safeguards. 
3.1.6.2 Safeguard Measures According to Article 85 of the Government Regu lation of the Republic of Indonesia, No. 34 
Concerning Safeguard Measure (G/SG/N/1/IDN/3) which is in effect as of July 4, 2011, Indonesia 
notes that: “In circumstances where there is a difference between the applicable rate of 
provisional Safeguard Duty as mentioned in Article 81 paragraph (7) and the rate of Safeguard Duty as mentioned in Article 84 paragraph (6), the following prevails:  
a. the excess in the payment of such provisional Safeguard Duty is not subject to any request 
for refund; or   
b. the deficit in the payment of such provisiona l Safeguard Duty shall not be claimed against 
importers.”    
Question: WT/TPR/M/278/Add.1 
 
- 209 - 
 
  Within this framework, could Indonesia explain how these rules are consistent with Indonesia’s 
obligations under Article 5.1 and Article 6 of the Agreement on Safeguards?   
Response: 
Article 85 of the Government Regulation No. 34  is formulated in accordance with Article 
6 WTO Agreement on Safeguards.   
3.1.6.2 Safeguard Measures 
Table 3.10 regarding the safeguard activity in 2007-2012 which is at page 48 of the TPR Report 
shows that the safeguard investigation against imports of wheat flour was initiated on August 24, 2012.   
Question: Turkey would like to get Indonesia’s views on whether this investigation is consistent with 
Indonesia’s obligations under Articles 2.1, 3.1, 3.2, 4.1.b, 4.2.a, 4.2.b, 6 of the Agreement on Safeguards and Article XIX of GATT 1994? 
Response: 
In the mentioned investigation, Indonesi a assures that such investigations are 
conducted as required by the WTO Agreemen t on Safeguards and Article XIX of GATT 
1994. 
 
3.1.5.3 Import Licensing 
Question: Can Indonesia explain whether Indonesia's broad use of import licensing measures that restrict 
imports of horticultural products, animals and animal products are consistent with WTO obligations under Articles X:3(a) and XI:1 of the GATT 1994; Article 4.2 of the Agreement on Agriculture; and 
Articles 1.2, 3.2 and 3.3 of the Import Licensing Agreement.  
Response: 
With regard to horticultural products, we have introduced new regulations namely 
Minister of Trade Regulation No. 16 Year 20 13 and Minister of Agriculture Regulation 
No. 47 Year 2013 to replace the previous regulations. 
On animal and animal products, the new re gulations are still being reviewed and will, 
hopefully, be introduced by the end of May 2013. 
REPORT BY THE SECRETARIAT 
SUMMARY 
4. TRADE  POLICIES  BY SECTOR 
4.7.6.4  Health Services, pg. 95, para. 107 
 
The Secretariat Report states that Indonesia allows for 67% foreign ownership of private specialist 
hospitals. 
Could Indonesia provide information whether there is a limitation to open representative office in 
health sector in Indonesia? WT/TPR/M/278/Add.1 
 
- 210 - 
 
   
Response: 
Please refer to the response to question No. 104 (page 95, para 4.106) 
4.7.6.4  Health Services, pg. 95, para. 107 
The Secretariat Report cites that “Under Doctors' Practice Law No. 29/2004 and Minister of Health 
Regulation No. 512/2007, foreign doctors should be permitted to practice in Indonesia. However, the situation is unclear as a 2004 technical note from Indonesia's Investment Coordinating Board 
(BKPM) bans foreign doctors from practicing in Indonesia.”  
Could Indonesia give information on when foreign doctors could work in Indonesia? Is there any 
restriction concerning nurses and other health employee to practice? 
Response: 
This phase has its origin in the USTR report  on foreign trade barriers in Indonesia in 
2010. It is not accurate, The Doctor practi ce law No. 29/2004 and the Minister Decree  
Health Decree 317/2010 concerning foreign health professional empowerment 
principally clarifies   that foreign health professionals are allowed to enter Indonesia. 
These are the governing frameworks for fo reign health professionals in Indonesia. 
4.7.6.5  Education services, pg. 95, para. 108 
The Secretariat Report states that Indonesia does not allow foreign investment in higher education 
in the form of a limited liability company, in conflict with provisions of the existing Investment 
Law.  
Could Indonesia explain whether there is a limitati on to open representative office in higher 
education in Indonesia? 
Response: 
Please refer to the response question No. 105 (page 95, para 4.108) 
4.7.6.7  Audiovisual services, pg. 95, para. 110 
The Secretariat Report cites that foreign investment is prohibited in broadcasting and media 
sectors including film and video production and distribution. 
Could Indonesia give detail information on regula tions regarding importation of foreign films and 
videos?  
Response: 
This statement is not accurate. Based on Broadcasting Regulation No. 32/2002, 
broadcasting services could be conducted by 4 institutions, namely; Public Broadcasting 
Institution, Private Broadcasting Institutio n, Community Broadcasting Institution, and 
Subscription Broadcasting Institution. With th is regard, Private Broadcasting Institution 
is a commercial broadcasting institution, which the business only carries out a radio broadcasting or television broadcasting serv ices.  The institution should be Indonesia 
legal entity. This private broadcasting inst itution may increase and expand the capital 
from foreign investment in which the amount is not more than 20% (twenty percent) of 
the total capital.  WT/TPR/M/278/Add.1 
 
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  SRI LANKA 
 Safeguard Investigations initiated by Indonesia on Wheat Flour Imports:  
In pursuance of the Section 3.1.6.2 in the Secretariat’s Report on the Sixth Trade Policy Review of 
Indonesia, which refers to the safeguard investigations initiated by Indonesia on wheat flour imports, Sri Lanka wishes to reiterate that; there is insufficient evidence of increased imports, 
serious injury and/or causal link between the pu rported serious injury and the purported increased 
imports, which are required to impose provisional safeguard measures under Article 6 of the Safeguard Agreement.  
Nor is there any information regarding ‘unforeseen developments’ or ‘the effect of the obligations 
incurred (under the GATT)’, necessitating the impo sition of safeguard measures as required by 
Article XIX of the GATT, which forms part of the WTO legal requirements for safeguard measures. 
 Sri Lanka, therefore, wishes to seek from Indonesia; 
a. A detailed clarification on the basis on which the above investigation has been initiated and 
b. An update on the current status of the on-going safeguard investigations. 
 Response: 
a. The basis for the initiation of such inve stigation was after examining the properly 
documented application. The Investigatin g Authority concluded that there were 
sufficient evidences to justify the In itiation of Safeguard Invesigation. 
b. The current status: we are now at the final stage of the investigation. 
DOMINICAN REPUBLIC 
 
Preguntas adicionales 
Sobre el tema de ventanilla única nacional de Indonesia, quisiéramos contar con mayor 
información sobre el funcionamiento de la ventanilla única nacional de Indonesia, así como el procedimiento y requisitos del registro de inversión extranjera incluyendo las consecuencias del no 
cumplimiento de registrarse. 
 ¿Cómo ha impactado en la economía del país, en especial atención en el desarrollo del sector 
exportador, el establecimiento de un banco destinado exclusivamente a la prestación de los 
servicios de financiación de las exportaciones?.  
Response: 
Currently there are no banks in Indonesia which is exclusively tailored for export 
financing. Several years ago, Indonesia had an Indonesian Export Bank, a state owned 
bank, which focused on export financing.  However in 2009, based on Act No. 2/2009, 
this institution was converted to the Indone sian Export Financing Agency (LPEI). The 
conversion from bank to financing agency was to afford the LPEI greater flexibility in its 
funding activities compared to a commercial bank.  
¿Qué medidas se implementarían a fin de mejorar y optimizar el entorno empresarial en miras de 
fortalecer y consolidar la seguridad jurídica en Indonesia? 
Response: 
Indonesia is committed to improve its busine ss environment, as Indonesia is aware of 
the importance of business environment for promoting the economic growth.  
 
One of the efforts that have been put in  place is synchronizing some conflicting 
regulations, both at the national levels an d regional levels. The other important steps 
are conducting monitoring and evaluation on the implementation of existing regulations, WT/TPR/M/278/Add.1 
 
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  and withdrawing regulations that have been proved to be detrimental to the business 
environment.  Tomando en cuenta que en Indonesia la minería es un sector en expansión y de apoyo del “Plan de 
Desarrollo alargo plazo”, proyecto en proceso de ejecución por el Gobierno?. Cómo podrán 
disminuir en su mínima expansión las externalidades negativas como consecuencia de establecer las medidas de exigir a las empresas mineras exportar productos minerales realizando las 
actividades de refinado en Indonesia, a partir del 2014. 
 Response:  
The mining is the product  that can not be renewel, so Indonesia has  to be careful to 
export  it. Furthermore, we have to take care our environment  “go green” to save the earth. The 2010 Negative List of  Investment (based on Presidential Regulation No. 36 of 
2010) does not include any restrictions on mi neral processing and refining (except for 
lead smelting, which requires a special a pproval from the State Minister for the 
Environment and the Minister of Industry). Therefore, initially, an y independent smelter 
project could be 100% foreign owned. The divestment policies do, however, fall within 
the regulatory authority of the MEMR. Investor  feedback is therefore critical to promoote 
the establishmasent of policies that are cons istent with the government’s industrial 
development goals. 
 
ECUADOR  
Informe del Gobierno  
Párrafo 1.2. Página 3: ¿Podría Indonesia ampliar la información sobre cómo manejó la entrada 
masiva de capitales en su economía? Es decir, podría explicar si esos capitales estuvieron dirigidos al desarrollo productivo del país?  De ser así, ¿hubo algún incentivo para que esa entrada de 
capitales sea dirigida al sector productivo? ¿O se mantuvieron como capitales financieros? 
Response: 
To handle the massive inflow, Indonesia prov ides transparent procedure and direct the 
capital to productive industry. Capital is dire cted to the sectors that have triple down 
effec, such as labor-internsive industry.  Ther e is any incentive for that kind of capital, 
such as tax holiday (Ministry of Monetary Regulation No. 130 Year 2011) and tax 
allowance (Government Regulation No. 62 Year 2008).  
Párrafo 2.5. Página 4: ¿Qué  medidas ha implementado Indonesia para aumentar las 
exportaciones de bienes y servicios producto de la desaceleración económica global? 
Response: 
Indonesia has eshtablished more transparent ex port licensing to incrase export of goods 
and services. Indonesia also encourage expo rt financing company to give exporters 
financial help.  
 Párrafo 2.6. Página 4: ¿Podría Indonesia ampliar la información sobre el Plan Maestro y las 
agrupaciones industriales que el país quiere desarrollar en los próximos 15 años, así como las 
medidas tomadas para acelerar la transformación económica? 
Response: 
According to MP3EI, the development of the center of economic activity is done by 
expanding industry cluster and special econ omic zone (Kawasan Ekonomi Khusus/KEK) 
as well as the enhancement of connectivity between economic centers and centers of 
economic growth along with essential backbone  infrastructure. The integration of center 
of economic activity and connectivity cr eates Indonesia’s  economic corridor. WT/TPR/M/278/Add.1 
 
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  The development of Indonesia’s economic corridor aims to create and elevate the 
competitiveness of Indonesia’s economy, and it  i s  d i r e c t e d  a t  i n c r e a s i n g  p r o d u c t i v i t y  
and the value added of human resources thor ugh the sustainable extension and creation 
of supply chain from up to down stream. 
There are 6 economic corridors, name ly Sumatera, Kalimantan, Java, Bali-
NusaTenggara, Sulawesi, Papua-Maluku with the respective industry cluster centralized in capital of each province, so that the sea and airport are accessibl e by foreign services 
suppliers. 
 Párrafo 4.7. Página 13: Este Párrafo indica que Indonesia cuenta con una lista negativa de 
inversiones, ¿cuáles son estos sectores que Indonesia quiere excluir de las inversiones?, ¿cuáles 
son los motivos por los que Indonesia los quiere excluir y en qué normativa internacionales 
estarían estos sectores establecidos en dicha lista negativa? 
Response: 
The amendment of the Negative List is still being processed. Before it is finalized, the 
government may not officially disseminate it. The meeting forum is needed as the 
important media for socialization of the plan to revise the list. Considering the domestic 
situation, foreign restrictions to some area s obviouslyneed to be removed. However the 
imperative of putting national/public, sa fety, moral hazard and environmental. 
 
Informe de la Secretaría de la OMC  
RESUMEN  
Párrafo 6, página 8: El Párrafo señala que Indonesia cuenta con 10 productos prioritarios de 
interés fundamental para las negociaciones comerciales. ¿Cuál es el tratamiento que Indonesia 
pide a los socios comerciales con quien negocia para dar prioridad a estos 10 productos? ¿Cuál ha sido la experiencia de Indonesia en la negociación de esos 10 productos prioritarios? 
Response: 
There is a minor change on the para 6, page  8. The ten priority products are products 
that were grouped as leading products that  can be prioritized as our main exported 
products. The said 10 of our priority products are : 
1. Tekstil and tekstil products 
2. Electronics 
3. Rubber and rubber products 
4. Palm oil and its downstream industry 
5. Foresty products 
6. Shoes 
7. Otomotives 
8. Shrimp 
9. Cocoa 
10. Coffee 
Due to the fact that those products are our ma in exported products, we use our effort to 
increase the value of its export through promotion.  
 WT/TPR/M/278/Add.1 
 
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  I. ENTORNO ECONÓMICO  
Párrafo 1.13. Página 17: ¿Podría Indonesia ampliar la información sobre los efectos que ha tenido 
la aplicación de incentivos a las exportaciones, en la transformación nacional hacia la producción y 
exportación de productos con mayor valor agregado? 
Response: 
The program for downstream industrial sector s aims to encourage the acceleration of 
industrial growth as a major catalyst in im proving national economic growth. The three 
main priorities of the program are downstream agro-based industries, oil and gas, and 
mineral mining since 2012. 
The GOI has set an industrial growth thro ugh accelerating industrialization program 
from 2012 to 2014. The main target of the program is to increase value-added of 
industrial products national wide through pr omoting downstream industries focusing on 
natural resources. At the end of the day, th is program will create job opportunities and 
eradicate poverty. 
Due to the the fact that we want to assure th e availability of our pimary products as the 
source of downstream industry and to prot ect our environment, we implement export 
tax which will be reviewed regularly as  those policies are temporary action. 
For instance: until 2009, 90 percent of Indonesi an cocoa bean production was exported. 
However, within 4 years, downstream cocoa processing plant investment through large-
scale production capacity significantly improved with the foreign and domestic 
investment. "This year, 80 percent of cocoa beans  is processed in Indonesia, only 20 
percent of the raw material is exported. The Impact of promoting downstream industries 
are 1) attracting investment; 2) creating jo b opportunities / employment; 3) increasing 
the value added of exports for the price of pr ocessed cocoa is considerably higher than 
that of raw seed cocoa. 
 II. REGIMENES DE POLÍTICA COMERCIAL Y DE INVERSIONES  
Párrafo 2.2. Página 22: ¿Existe algún procedimiento institucionalizado en el cual se realicen 
consultas a los sectores productivos en relación a las negociaciones de tratados comerciales 
internacionales? De ser así, ¿cuáles han sido los efectos de dichas consultas al sector privado? 
Response: 
Indonesia has eshtablished more transparent export licensing to incerase export of 
goods and services. Indonesia also encourages export financing company to give 
exporters financial assistance.  III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
Párrafo 3.40. Pág. 48: ¿Por qué se menciona la falta de transparencia y efectos de obstaculización 
del comercio de las prescripciones en materia de licencias de importación que aplica Indonesia? 
Response: 
We have started to revise im port license regulations that are not in line with WTO 
Agreement. 
Párrafo 3.74. Pág. 58: Con respecto al Plan de Importación vigente desde el 2006, para los 
importadores de frutas y hortalizas, en la actualidad ¿existe algún cambio o adición en los requisitos a cumplir en dicho plan? 
Response: 
Yes, there are many changes and additions since 2006. WT/TPR/M/278/Add.1 
 
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  Párrafo 3.78. Pág. 59: Cuadro 3.12 Prohibiciones de exportación, 2012. ¿Es viable imponer una 
prohibición a la exportación de un producto en concreto sin establecer las justificaciones del mismo 
(ejemplo Caucho en bruto, y,  Huevas y crías de pescado)? 
Response: 
Recommendation will be issued after all docume nts requiered is comp leted. The criteria 
is regulated by Ministry of Forestry.  
 Párrafo 3.79. Pág. 59: Frase: "No obstante, los criterios para la concesión o denegación de estas 
recomendaciones no son claros." ¿Qué organismo internacional de comercio regula la claricidad de estos criterios? 
Response: 
Recommendation will be issued after all 
documents requiered is complete d. The criteria is regulated by Ministry of Forestry.  
 Párrafo 3.79. Pág. 59: Cuadro 3.13 Restricciones y licencias de exportación, 2012. ¿A qué se 
refieren con "productos que roten"? Menciona algunos "registros", "acreditaciones" y 
"autorizaciones" que tienen un determinado periodo de validez pero son prorrogables. En cada 
caso cuál es el tiempo máximo de prorrogación permitido? 
Response: 
Referring to MOT Regulation No. 44/2012 regarding Prohibited and Regulated Export 
Products in fisheries and marine sectors, Fi sh Eggs are allowed to be exported, due to 
increase the diversity of fish resources. 
 
Párrafo 3.97. Pág. 65: ¿A qué otros productos distintos del gas y petróleo se ofrecen seguros de 
créditos? 
Párrafo 3.108. Pág. 67: En licitación Pública, en la práctica más utilizada, se le concede al precio 
una importancia del 70 % al 90% de la evaluación total. ¿Cuáles son las otras variables 
consideradas y cual su peso porcentual? 
Response: 
Evaluation method for bidding was devide into technical evaluation and price evaluation.   
 IV. POLÍTICAS COMERCIALES, POR SECTORES  
Párrafo 4.6.1. Página 87: Los incentivos fiscales que Indonesia aplicaría, ¿incluye reducciones en 
las tarifas de impuestos de manera general o específica a determinados sectores productivos? 
¿Existen incentivos fiscales que sean de carácter temporal o permanente? 
Párrafo 4.6.1. Página 93: ¿Qué productos financieros permite tener la legislación del sector 
bancario de Indonesia? ¿De qué manera Indonesia atrae capacitación o experticia de los bancos 
extranjeros para sus bancos locales, o esta no es una prioridad proveniente de la liberalización de 
servicios financieros? 
Response: 
Pursuant to the Banking Act, the primary function of banks in Indonesia is to mobilize 
and collect funds from the public.  
The activities and products of commercial bank s are stipulated in the Banking Act. These 
activities consist of, inter alia: mobilizing sa vings, lending, foreign exchange activities, WT/TPR/M/278/Add.1 
 
- 216 - 
 
  issuing debt securities, transfer of funds,  custodian services, and safe deposit box 
services. To be noted as well is the proh ibitions on commercial bank activities. 
Commercial banks are prohibited from: i) conduc ting equity participation, ii) conducting 
business in insurance. 
For the banking industry, based on Bank Indonesia Regulation, foreign-owned-banks 
with the share minimum of 25% or more  ma y hire foreign employees with considering 
the availability of domestic employees. For that purpose, the banks are required to 
assure the realization of the transfer of  knowledge  in the employment of foreign 
manpower. These requirements shall be implemented by : i) appoinment of 2 counterparts  for 1 foreign manpower, ii) education and training for counterparts 
appropriate  to the qualification of position  to be served by foreign manpower, and iii) 
implementation of training or courses by foreign manpower over a particular period 
especially for bank employees, high school / university students, and/or the public. 
 
Párrafo 4.71. Página 95: Ante la diferencia entre los niveles de propiedad extranjera y los 
compromisos vigentes consignados por Indonesia en su Lista anexa al AGCS concernientes a 
servicios de telecomunicaciones, ¿planea Indonesia hacer alguna reformar para acercar los niveles aplicados a sus compromisos en el marco del AGCS? 
Response: 
Yes, we assest the regulations which not co mply with the  commitments under the GATS 
Preguntas adicionales planteadas por el Ecuador  
Informe del Gobierno 
Evolución del comercio y las políticas relacionadas con el comercio, numeral 4.2) Desarrollo de las 
Inversiones, párrafo 4.6: a Ecuador le gustaría conocer cuál ha sido el impacto y la efectividad de 
las diferentes políticas fiscales para promocionar al comercio (reducción del impuesto a la renta, exoneraciones temporales y reembolsos de aranceles a la maquinaria y materia prima) que 
Indonesia a establecido. 
Response :  
Government of Indonesia provide different po licies to promote trade tax (tex reduction 
income tax holidays and tariff rebate s on machinery and raw materials). 
 
a) Tax Holiday (Tax Reduction Income Tax Holidays) 
This facility has been provide since 2011 (A ugust) refers to Minister of Finance’s 
Regulation No. 130/2011 and cover such incentives:  
 tax free for a period 5 to 10 years after a company or project begins 
commercial production (100% real ization and have the permanent 
license/IUT) 
 investors could be offered an addition al 50% corporate income tax reduction 
for 2 years after the tax holiday period  
This incentives will attract foreign investor s in industrial sectors in Indonesia. In 
this case, amount of applicants  for this facility increased. 
Until end of March 2013, there are 19 applicants already applied for Tax Holiday facility, in details: 
 11 applicants are not fulfil the requirements  (mostly in case of legal entity of 
Indonesia at least 15
th August 2010) 
 6 applicants are eligible to get Tax Holiday and still on progress 
 2 applicants already get Tax Holiday for 5 years each 
 
b) Exemption of Import Duty on Imported Ma chines, as well as Goods and Materials for 
the Building or Development of Industries in the Framework of Investment (Tariff 
Rebates on Machinery and Raw Materials) WT/TPR/M/278/Add.1 
 
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  This facility has been given since 20 09 (Minister of Finance’s Regulation 
No. 76/2012 jo. Minister of Finance’s Regulation No. 176/2009) and provide: 
 Exemption of import duty for 2 (two) years on machinery, goods and 
materials for business activities in the field of industries that produce goods 
and/or 
 Industries that produce serv ices (tourism and culture, 
transportation/communications for public  transport services, public health 
services, mining construction, teleco mmunication  industry, and port)  
This facility  give impact in deepening and empowering  the national industrial 
structure. The beneficiaries of this fac ility mostly come from sugar and textile 
industries. Now, those  industries has grow th significantly in case of production 
realization. 
 
Informe de la Secretaría de la OMC  
Resumen  
Resumen, párrafo 2, página 7, hace referencia a que Indonesia ha adoptado diversas medidas 
para mejorar el entorno empresarial y que ello ha hecho posible su ascenso en diversas 
clasificaciones basadas en indicadores mundiales. En este sentido, ¿Podría Indonesia indicarnos qué tipo de medidas ha adoptado para la mejora de su entorno empresarial? 
Response: 
Indonesia is very much concerned with im proving its business climate. For this, 
improving investment and bu siness climate has been put as one of Indonesia’s 
development priorities in its current medium term plan.  
 Some measures that have been taken to improve the business environment in Indonesia 
are: simplification of business licensing proc edures, implementation of online system for 
business licensing and export/import licensi ng for more transparent and promptier 
services, as well as implementation of on e-stop services for business licensing at 
provincial and district levels. 
 Resumen, párrafo 8, página 8, respecto a la reforma aduanera establecida para reducir el tiempo y 
el costo del despacho de aduana y limitar el contrabando y el fraude, con el objetivo de mejorar la gestión de riesgos y facilitar el comercio introduciendo planes para los importadores reconocidos. 
¿Podría Indonesia indicarnos si estos planes tendrían alguna vinculación con el tema de los 
Acuerdos de Reconocimiento Mutuo? 
Response: 
Indonesia is in the early stage of implemen ting Autorized Economic Operator. Including 
in it, is the possibility of having an MRA wi th other customs administration from other 
countries. 
III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
Capítulo 3, Sección 3.1 Medidas que afectan directamente a las importaciones, párrafo 3.10, 
página 36, respecto de los interlocutores importante s prioritarios y no prioritarios. Partiendo de las 
facilidades que se otorgan a los importadores catalogados como interlocutores importantes prioritarios en el proceso de despacho de las mercancías en comparación a otros importadores. 
¿Podría explicarnos Indonesia sobre la base de qué criterios o definiciones se realiza estas 
distinciones entre importadores y cómo estas facilidades, para el caso de importaciones de mercancías similares, se justan a los principios de no discriminación? WT/TPR/M/278/Add.1 
 
- 218 - 
 
  Response: 
There are 5 entry channels, and each channel is  divided and categorized   based on Risk 
Management System (red, yellow, green, Non Prioritized Prominent Partner Lane (MITA 
non prioritas), Prioritized Prominent Partner Lane (MITA Prioritas)). The determination 
of the channel as the result of the risk mana gement is derived from the track records of 
the importers, type of goods and the co mpliance of the importers toward all the 
regulation applied.   
Every company can propose themselves as Non Prioritized Prominent Partner Lane 
(MITA non prioritas), Prioritized Prominent Pa rtner Lane (MITA Prioritas) as long as 
they fulfill all the requir ements with this regard. 
Capítulo 3, Sección 3.1 Medidas que afectan directamente a las importaciones, párrafo 3.25, 
página 42, en relación a las solicitudes de exen ción de derechos que se presentan a la Junta 
Coordinadora de la Inversiones de Indonesia (BKPM). Partiendo del hecho de que la decisión de 
otorgar determinada exención depende de un resolución del BKPM basada en los tres criterios expuestos. ¿Podría Indonesia indicarnos cómo este plan se ajusta los compromisos de su país en 
materia de inversiones relacionadas con el comercio si se considera que, al introducir la variable 
de la existencia de producción interna en el país en los literales b) y c) como requisito de análisis 
para el otorgamiento de las exenciones por parte de la Junta, parecería existir una vinculación 
entre la exención de derechos y el consumo de bienes de producción nacional. En este sentido, pensando en aquellos bienes importados similares, directamente competidores o sustitutos, cómo 
este plan se ajustaría a los compromisos de Indonesia en materia de trato nacional? Además, 
¿Podría indicarnos Indonesia bajo qué parámetros se determina, en el análisis de solicitud de exención, la satisfacción de las necesidades de la industria? 
Response: 
Before stipulated by the Minist er of Finance, the tariff duty or other tax facilities, would 
have been coordinated in advance of the team or other teams that w provide tax 
incentives for specific investments. 
Capítulo 3, Sección 3.1 Medidas que afectan directamente a las importaciones, párrafo 3.33, 
página 47, en relación a los tipos del impuesto especial de consumo aplicado a las importaciones. 
¿Podría explicarnos Indonesia las disposiciones de la normativa multilateral sobre las cuáles se 
sustenta la aplicación de impuestos superiores a los productos importados de los que se gravan a 
los productos nacionales de bebidas alcohólicas que contengan entre el 5% y 20% y más del 20% 
de alcohol etílico, más aún si de otro lado esta industria de bebidas alcohólicas es considerada como una actividad cerrada a toda inversión amparada en motivos relacionados con la salud, la 
seguridad y el medio ambiente (párrafo 2.27, página 28)? 
Response: 
The regulation of alcoholic beverages excise ta x is not discriminatory because in case of 
product spesification there are several di fferences between imported and domestic 
alcoholic beverages on quality, raw material , production processing, price and market 
segmentation (imported product are more premium class than local product). By 
imposing of excise tax and import duty, im ported product will gain several advantages 
which are : 
a. They will get higher quality for simila r category (different domestic market 
segmentation)  
b. Specific tariff rate system will make the calculation of excise tax and import duties 
simpler and faster, and also will av oid dispute on custom valuation 
c. It gives more guarantees for excelent level of hospitality services by Indonesia 
tourism industry through maintaining im ported alcoholic beverages availability WT/TPR/M/278/Add.1 
 
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  Indonesia is under consideration for effort s to reduce and eliminate the gap between 
the impositions of excise duty of imported  alcoholic beverages to the local origin.  
Capítulo 3, Sección 3.1 Medidas que afectan directamente a las importaciones, párrafo 3.127, 
página 73, en lo referente a la participación del Gobierno en la estabilización de los precios del arroz. Conforme se describe en el párrafo referido, entendemos que la participación del Gobierno, 
como parte de medidas de constitución de existencias públicas, es con fines de seguridad 
alimentaria. ¿Podría indicarnos Indonesia, en el caso de que se concrete el aumento del 10% del precio de mercado que pagan los consumidores, quien asume ese diferencial de precio antes de 
que el Ministerio de Comercio de las instrucciones de importar arroz, para el caso de las compras 
garantizadas por Perum BULOG a los productores nacionales? Además, ¿Cómo se asegura Indonesia que el efecto de estabilización de los precios para temas de seguridad alimentaria no se 
convierta en una medida de sostenimiento de precios a favor de los productores de arroz? 
Response: 
The import volume for the given year is dete rmined by consultations of the coordinating 
team with members from relevant ministries . Three indicators used to determine needs 
for import for the given year are: 
 
 The current rice stock held by BULOG. The data will be provided by BULOG. 
 The difference of average prevailing market price to the Government’s buying price 
at producer’s level. The prevailing market price is published by Central Statistics 
Agency. 
 The estimation of production surplus. The production data is published by Central 
Statistics Agency. 
A minimum of two of the three indicators above have to be fulfilled for importation to be 
performed for the given year. The determined volume of import is expected to meet the 
national supply shortage which, in turn will stabilize the rice prices.  
Regarding 10% increase in the market price at  consumer level, the government will give 
instruction to conduct market operation to stabilize the prices in order to allow trade 
running smoothly .  
Políticas y prácticas comerciales, por medidas, numeral 3.1.5) Prohibiciones, restricciones y 
licencias de importación y 3.1.7.1) Notificaciones y preocupaciones comerciales específicas: Al 
Ecuador le gustaría conocer ¿en qué medida las restricciones a la importación de productos como el camarón así como la limitada concesión de licencias de distribución de alimentos y suplementos 
alimenticios, medicamentos y productos cosméticos obtenidos de sustancias “no halal”, han 
afectado al comercio de esos productos, así como al abastecimiento en el mercado nacional? 
IV. POLÍTICAS COMERCIALES, POR SECTORES  
Capítulo 4, Sección 4.6.1 Incentivos, párrafo 4.37, página 87, referente a los reembolsos por los 
derechos de importación (que suelen variar del 0% al 150% del valor aduanero de las mercancías 
importadas). ¿Podría indicarnos Indonesia cómo se determina ese porcentaje que determinaría el 
valor de reembolso, y qué sucede si el valor de reembolso estaría por encima del valor a pagar por 
concepto de derecho de aduana del bien importado, cómo se implementa la medida de incentivo? 
De igual forma, en relación a la reducción de la renta imponible de hasta un 30% de la inversión de capital realizada. ¿Podría indicarnos Indonesia cómo se determina el porcentaje de reducción y 
qué sucede en el caso de que el valor, como resultado de la aplicación de ese porcentaje, diera 
como resultado un valor superior al que se tiene que cubrir por concepto de renta imponible, la diferencia se la considera como crédito tributario? Considerando que se trata de medidas para 
atraer inversiones extranjeras manufactureras orientadas a la exportación, ¿Cómo esta medida de WT/TPR/M/278/Add.1 
 
- 220 - 
 
  incentivos se ajusta a los compromisos de Indonesia en materia de subvenciones a las 
exportaciones? 
Response: 
Reimburse is applicable only in the bonded  area, as there are advantages to pay, 
especially for the intended import export.  
Capítulo 4, Sección 4.7.3 Políticas comerciales, por sectores, página 90, párrafo 4.68, hace 
referencia a que el sector de telecomunicaciones se rige por la ley No. 36/1999, que establece 
directrices para la liberalización, facilitación, de la entrada de nuevas empresas y el aumento de transparencia y la competencia y que, sin embargo, la ley se aplica por medio de numerosos 
reglamentos gubernamentales y ministeriales,  ¿Podría Indonesia explicarnos cómo estos 
numerosos reglamentos están facilitando la entrada de empresas al sector de telecomunicaciones? 
Response: 
By regulating the obligations to be perfor med by the companies that will enter the 
telecom sector, given the teleco m sector is one sector that  is crucial and can provide 
very high profits for the companies involved in it. 
Instrumentos de política comercial, párrafo 4.13, página 82: Al Ecuador le gustaría conocer con un 
poco más de profundidad sobre las restricciones cuantitativas a la importación de algunos 
productos sobre la base de medidas sanitarias  y fitosanitarias, culturales y de seguridad 
alimentaria y los mecanismos utilizados para establecer dichas regulaciones y el efecto de las mismas en los sectores afectados. 
Response: 
Indonesia is a vast archipelago with import  entrances spread over several islands. 
Safety of imported products, especially thos e that could potentially be a carrier of the 
disease, becomes a major concern for Indone sian government. Ther efore, the products 
that have the potential to be the carrier of a certain disease, are arranged with certain 
requirements. This is in accordance with ar ticle 1 SPS Agreement and the provisions of 
the WHO that the food must be free of contam ination. Given the fact that not all access 
to the Indonesian import all have adequate  laboratory capacity, so only certain entry 
points are opened to receive imported in to carrier media contamination, disease, 
therefore the incoming goods becomes limited. 
Minería, párrafo 4.28, páginas 86: Indonesia ha establecido una nueva normativa que parece 
restringir las exportaciones de minerales en bruto sin ningún tipo de elaboración.  A Ecuador le 
gustaría conocer qué tipo de repercusiones ha tenido la citada normativa en el marco de los Contratos de Inversiones firmados entre el Gobierno y las empresas nacionales y extranjeras? ¿Ha 
habido algún efecto en la inversión extranjera directa destinada a esas actividades? ¿Cuál ha sido 
el efecto en los gremios productivos y de generación de encadenamientos al aplicarse esta medida? 
Response: 
We need to differentiate between export restrictions and domestic management of 
mineral ores production. Export restrictions ar e meant to strictly control the exploitation 
of mineral ores which over decades has been  exploited in an abusive manner due to a 
strong demand of export mark ets. The environmental implications are such that some of 
the exploited areas suffer unrecoverable damage. Export restrictions recently 
implemented have been followed by efforts to  control the domestic production of the 
said mineral, taking into account Indonesia’s strong commitment to green growth. Therefore, there should be no contradictions  between measures to restrict import of WT/TPR/M/278/Add.1 
 
- 221 - 
 
  mineral ores on the one hand, and the domestic  production of mineral ores on the other 
hand as GOI continue enhancing its campaign  to promote responsible mining activities. 
Medidas relacionadas con el comercio, párrafo 4.43, página 88: Indonesia ha impuesto aranceles a 
sus principales productos de exportación primarios como el aceite de palma, el cacao en grano y el 
cuero y la madera, con la finalidad de fortalecer la política de aumento de valor agregado nacional teniendo en cuenta que la mera exportación de materias primas no crea los tipos de empleos 
necesarios para elevar el nivel de vida de su población.  Siendo Indonesia un país que basa su 
economía principalmente en bienes primarios y serv icios, ¿qué tipo de repercusiones ha tenido la 
medida en el equilibrio externo (balanza de pagos)? ¿Existe algún mecanismo diseñado para que 
los impuestos a las exportaciones recaudados se utilicen directamente en el desarrollo de 
productos que utilicen dicha materia prima? ¿Cuáles han sido las repercusiones en términos de pérdida de competitividad, la industria y los encadenamientos productivos? 
Response: 
 Fiscal incentives for the importation of capital goods and raw materials are granted 
for 2 years production with the extension of another 2 years. 
 There is no impact in term of loss compet itiveness, industry and production chain. WT/TPR/M/278/Add.1 
 
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  FOLLOW-UP QUESTIONS AND REPLIES 
 CHINA 
PART I: QUESTIONS REGARDING THE SECRETARIAT REPORT 
3. TRADE POLICIES BY MEASURE    
Page 69 (Para 3.136)  
“A key concern raised in Indonesia's previous TPR with regard to its IPR legislation was that the 
Patent Law (Article 17) requires an inventor, after being granted the patent, to physically produce a product or utilize a process in Indonesia. The authorities explained that the purpose of the 
provision is to encourage transfer of technology, investment, and employment.”  
Questions: 
1. Could Indonesia please clarify whether this requirement in the Patent Law of Indonesia is 
compulsory? What will be the legal consequenc es if the inventor, after being granted the 
patent, has not physically produced the product or utilized the process in Indonesia? 
2. If this requirement is compulsory and will lead  to compulsory licesning or invalidity of the 
granted patent, then it seems to be inconsistent with both the Paris Convention for the 
Protection of Industrial Property and the WTO TRIPs Agreement. What is the view of Indonesia in this respect? 
Response: 
1. The requirement as provided in the Arti cle in the Article 17(1) is compulsory. 
However, there is an exception of the impl ementation provided in the Article 17(2) 
to (4) stating: 
(2) Exempted from the obligation referred to  in paragraph (1) if the making of the 
product or the use of the process is only suitable to be implemented on a regional 
scale. 
(3) The exemption referred to in paragr aph (2) may only be approved by the 
Directorate General if the Patent Holder has submitted a written request that is 
accompanied by the reasons and evidence  issued by the authorized agency. 
(4) The requirements regarding the exemption and the procedure of submitting a 
written request referred to in paragrap h (3) shall be further regulated by 
Government Regulation. 
2. In case no implementation, there is no di rect sanction or consequences. It is not 
lead to cancellation or invalidity of Pate nt, only to compulsory License. Indonesia 
recognizes that there is a problem with this  provision and as Indonesia stated in the 
previous TPR submission, Indonesia is open for any input and suggestion including in this article. The proces of ammending of Patent Law is still on going. Any input 
and suggestion will be considered in the discussion of this amendment process. 
Moreover, according to Paris Convention in  Article 5A.2, it is stated that each 
country of the Union shall have the right to  take legislative measures providing for 
the grant of compulsory licenses to prevent the abuses which might result from 
exercise of the exclusive rights conferre d by the patent, for example, failure to 
work. WT/TPR/M/278/Add.1 
 
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  Page 70 (Para 3.119) 
“Over the review period Indonesia used compulsory licensing on two occasions, in 2007 and in 
2012, to permit Government use of pharmaceutical  patents in order to produce certain antiviral 
and antiretroviral drugs. In all instances, Governme nt use of these patents is until their expiry.”  
Questions: 
 
Could Indonesia please provide more detailed in formation on these two cases of compulsory 
licensing, including for example the specific pharmaceutical patents involved, the licensees and 
fees? 
Response: 
The issuance of the compulsory License (in this regards, Government Use) is all 
provided by the particular Presidential Decr ee. In 2007 the Presidential Decree No. 6, 
2007 regarding amendment of Presidential decree no. 83, 2004 is for antiretroviral 
Nevirapin, Lamivudin and Efavirenz with remuneration of 0,5% respectively. The 
Presidential Decree No.  76, 2012 was issued  for antiviral and antiretroviral namely: 
Efavirenz, Abacavir, Didanosin. Combinatio n of Lopinavir and Ritonavir, Tenofovir, 
combination of Tenofovir and Emtrisitabin an d combination of Tenofovir, Emtrisitabin 
and Evafirenz. 
The renumeration for all of products is 0,5%. Details of other related information in the related Presidential Decrees are as follow: 
I. Presidential Decree of The Republic of Indonesia No. 83 of 2004 regarding Patent  
Implementation by the Government  for Anti Retroviral Drugs. 
 
II. Presidential Decree of The Republic of Indonesia No. 6 of 2007 regarding 
amendment of the Presidential Decree of The Republic of Indonesia No. 83 of 2004 
on Patent Implementation by the Gove rnment for Anti Retroviral Drugs. 
III. Presidential Regulation of The Repub lic of Indonesia No. 76 of 2012 regarding 
Patent Implementation by the Government for Antiviral and Antiretroviral Drugs. No. Name of Active 
Compound Patent Holder Patent 
Number Duration Remuneration 
1 Nevirapin Boehringer Ingelheim 
(BI) ID 0001338 7 Years 0,5 % 
2 Lamivudin Biochem Pharma INC ID 0002473 8 Years 0,5% 
No. Name of Active 
Compound Patent Holder Patent 
Number Duration Remuneration 
1 Nevirapin Boehringer 
Ingelheim (BI) ID 0 001 338 Until expiration of 
Patent, October 
31st , 2011. 0,5 % 
2 Lamivudin Biochem 
Pharma INC ID 0 002 473 Until expiration of 
Patent, January 
28th, 2012. 0,5 % 
3 Efavirenz Merck & Co, INC ID 0 005 812 Until expiration of 
Patent, August 7th, 
2013. 0,5% WT/TPR/M/278/Add.1 
 
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PART II: QUESTIONS REGARDING THE GOVERNMENT REPORT 
Page 5 (Para 2.8) 
 “With regard to regulations, the government will  amend or remove (debottlenecking) regulations 
that inhibit the implementation of investments. As a facilitator and catalyst, the government will 
provide incentives, both fiscal and non fiscal.” 
Questions: 
 
Could Indonesia please exemplify the regulations to  be amended and the specific incentives to be 
provided?  
What are the expected achievements under the MP3EI with regard to better utilizing FDI and 
promoting trade in services, espercially under mode 3 commercial presence? 
Response: 
The specific fiscal incentives to be prov ided are exemption of import duties on 
machineries as well as goods and raw materi als for industrial construction or tax 
allowance based on revision of government re gulation concerning income tax facility for 
investment in certain business fields and, or  certain regions. On the other hand, for non 
fiscal incentives such as producer importer  identification number (API-P) and general 
importer identification (API-U). 
As the PPP infrastructure policy was launche d several years ago, the Government of 
Indonesia is now working intensively to acco mplish the infrastructure targets set out. 
Rules and regulations impeding the im plementation are being reviewed by No. Name of Active 
Compound Patent Holder Patent 
Number Duration Remuneration 
1 Efavirenz Merck & Co, INC ID 0 005 812 Until expiration of 
Patent, August 7th, 
2013. 0,5 % 
2 Abacavir Glaxo Group 
Limited ID 0 011 367 Until expiration of 
Patent, May 14th, 
2018. 0,5 % 
3 Didanosin Bristol-Mayers 
Squibb 
Company ID 0 010 163 Until expiration of 
Patent, August 6th, 
2018. 0,5 % 
4 Combination of 
Lopinavir and Ritonavir Abbot 
Laboratories ID P 0023461 Until expiration of 
Patent, August 28th, 
2018. 0,5 % 
5 Tenofovir Gilead Sciences, 
Inc ID 0 007658 Until expiration of 
Patent, July 23th, 
2018. 0,5 % 
6 ‐ Combination  of 
Tenovofir and 
Emtrisitabin 
‐ Combination of 
Tenovofir, 
Emtrisitabin and 
Evafirenz Gilead Science, 
Inc ID P 0029476 Until expiration of 
Patent, November 
3rd , 2024. 0,5 % WT/TPR/M/278/Add.1 
 
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  interministries. The Government  believes, one by one and st ep by step progress will be 
accomplished. The focus of the government is set in solicited project schemes as 
mandated by the MP3EI policy measures, while unsolicited projects are still welcome. In 
addition, the incentives provided and govern ment support will add the attractiveness of 
the projects. 
Page 6-7 (Para 2.13) 
“Taxes and import duties are one of the instrument s of economic policy to support the acceleration 
and expansion of national economic development. Therefore reform is considered necessary, and 
can be carried out using the following tax approach: 
Tax rates and import duties should be adjusted due to the economic cycle;  …”  
Questions: 
Could Indonesia please introduce its taxes, import duties and related policies applicable to its 
import of services? What would be the adjustments to Indonesia’s taxes and import duties under 
the above-mentioned reform framework that would a ffect the export of services to Indonesia? How 
would the export of services to Indonesia be affected? 
 
Response: 
Indonesia’s policy in term of taxes, import duties and related policies applicable to its 
services imports varies in specific forms, i.e value added tax, income tax, land and 
property tax etc.  
 With regard to value added tax, Indonesia applies tariff 10% on the consumption of 
services, except for some services sector s which are excluded from value added tax 
obligation.   Any parties consuming services sectors whic h are excluded from value added obligation 
will take benefit from this exemption. 
 Indonesia is of the view the importance to in crease its services ex port performance, yet 
any policies made should support it. 
 
PART III: OTHER QUESTIONS 
Are there assistance programmes available in Indonesia which would help small and medium-sized 
enterprises and even individuals to apply for patetnt? 
Response : 
 Currently, Government of Indonesia c.q Di rectorate general of Intellectual Property 
Rights (DGIPR)– Ministry of Law & Human Rights provides incentives for SMEs, 
universities and individual. The Government in  t h i s  p r o g r a m ,  a s s i s t  t h e m  i n  a p p l y i n g  
their IP Rights at DGIPR. Other ministries su ch as Coordinating Ministry of Cooperative 
and SMEs, Ministry of Industry also have similar incentives program for SMEs. 
 EUROPEAN UNION  
 
1.2.1 Trends in growth 
Page 14, paragraph 1.7 
Inflation risks becoming a threat to Indonesia's economic development in 2013. Arguably, inflation 
is partly caused by higher labour costs (minimum wage increases of over 40% demanded in 
Jakarta area for instance) as well as by much higher  food prices since some of the principles of the 
18/2012 Food Law are being put in practice. WT/TPR/M/278/Add.1 
 
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  The EU is aware of certain policies that are developed regarding food (but not only) and according 
to which, when Indonesia has the potential to be  self sufficient according to authorities, then 
imports are to be prohibited (ie new food law) 
Question:  
Can Indonesia explain the rationale for such policy in light in particular of its commitments in the 
WTO and of the likely impact of such policy on inflation as well as on access to, for instance, fruit 
and vegetables?  
Response: 
The government of Indonesia is fully aware that  if the prices, especially food prices, are 
cheap or too low, Indonesian farmers will be in jured leading to that they  may refuse  to 
run the business. Even when the prices went down during harvesting time, they may bur 
their harvested products, they  refuse to r un their business and move to big cities, and 
this may be very dangerous. On the other hand, if food prices are expensive, end 
consumers will suffer. The best thing is that  prices are in the equilibrium. Because of 
that, what Indonesia does is only import  management. We regulate import during 
harvesting time, and the rest is import management. 
EU follow-up question: 
Can Indonesia elaborate on the import management measures in force and their consistency with 
Art XI GATT? 
Response: 
Import management is  applied temporarily. The restriction of imported goods is only 
applicable to some products as  various products are still impo rted to Indonesia.  Art XI 
GATT should not be read as per se  illegal regulation.  Import management measures are 
not inconsistent with WTO provisions since th e purpose of its stipulation is to put order 
in the import timeframe. 
1.2.2. Macroeconomic policy framework 
Page 16, paragraph 1.13 
According to the authorities, export taxes on pr imary commodities can provide an incentive for the 
development of domestic manufacturing or processi ng industries with higher value-added exports. 
The secretariat report notes that export taxes make up to 50% of taxes on trade. 
Question: 
Are there alternative policies to export taxes that the government could consider which would 
contribute to reaching the objectives that the export taxes are supposed to achieve? (for instance policies that would  provide better infrastructure or promote foreign investment into Indonesia)? 
Response: 
Alternatives policies other than export taxes or  export duties are open to be disecussed. 
Our business players are free to give their inputs. 
EU follow-up question: 
Can Indonesia confirm that it is going to organise a consultation on these policies and that 
domestic and foreign companies will be heard?   
Response: 
Yes, consulation is open for domestic and foreign companies to deliver their inputs, 
especially in written comments. The draft ch anges rather rapidly due to various inputs. 
Inputs are welcome and they can be addressed  to Ministry of Agriculture and Ministry of 
Trade. WT/TPR/M/278/Add.1 
 
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  The EU notes that many companies have hesitations with regard to putting in place smelter or 
other processing plants in Indonesia as the investment framework is felt to be too restrictive and is 
too costly (such as the potential processing requirements for ex). 
Question:  
Are there other policies that the government is considering or could consider to attract investment 
that would add value/ production capacity in In donesia (for example but not exclusively in the 
mining sector)?  
Response: 
There are other policies could consider to attract investment that would add value / 
production capacity in indonesia, i.e.;  
c. Tax holiday policy stipulated on MOF decree no 130/2011 
Exemption of corporate tax for maximal 10 years or minimal 5 years, and then 50% 
reduction of corporate tax for 2 years 
d. Tax allowance policy stipulated on Government regulation no 52/2011 
Reduction of nett income before tax (by 30% of direct investment in 6 years (5% for 
each year)), accelerated de preciation and amortization, 10% income tax rate for 
dividend, and compensation for losses for 5 to 10 years. 
EU follow-up question: 
Can Indonesia detail the impact of the abovementioned alternative measures on investment? Response: 
That Indonesia still requires foreign investme nt indicates that there is no reason to 
restrict the investment. The general impact of  said measures is that Indonesia is more 
attractive as one of designated  investments. Statistic of FDI realization based on capital 
investment activity indicates that the va lue of investment in Indonesia recorded 
US$16,214.8 millions in 2010, increasing to  US$ 19,474.5 million in 2012 and reaching 
US$24,567.7 million in 2012.  
The restriction in investment is due to the Government of Indonesia’s intention to bring huge 
benefit of the value added to the citizens and allow Indonesia younger generations to acquire better jobs and wealth. 
The restriction in investment is due to the Government of Indonesia’s intention to bring huge 
benefit of the value added to the citizens and allow Indonesia younger generations to acquire 
better jobs and wealth. 
The EU is aware that there are proposals to modify the current FDI regime and to make it more 
restrictive.  
Question:  
Could Indonesia elaborate on the additional restrictions included in the first draft of the new Law 
on Industry? Does Indonesia consider imposing new excise duties on manufactured products not 
produced in Indonesia to attract more Foreign Direct Investment? Does it consider, given today's 
global supply chains, this to be an effective way to fulfil its economic objectives and a model for other countries to pursue as well?   
Response: 
Excise duties are not regulated under Law of  Industry because it is the system of 
customs and excise laws. The rate of custom s and excise duties is regulated under the 
decree of Minister of Fi nance. Prior to the promulgation of  the decree, there are series of 
discussion among line ministries.  WT/TPR/M/278/Add.1 
 
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  EU follow-up question: 
Is Indonesia (Ministry of Finance) considering to impose excise duties for telephones, as recently 
stated by the Ministry of Trade in the media? If so, will consultations also be held with the 
business community beforehand? 
Response: 
The plan of having Imposition of Excise stud y on mobile phone is still in a process of an 
in-depth study by Fiscal Policy Office of Mini stry of Finance. The Fiscal Policy Office will 
certainly hold hearings with line Mini stries, business community and academics 
beforehand.  
2. TRADE POLICY REGIME: FRAMEWORK AND OBJECTIVES 
2.1. Administration of trade and investment policy Page 20, paragraph 2.1 
The Report provides an outline on the general ru le-making procedure. It states, "the Government 
is legally required to offer the public the opportunity to give input into the rule-making process orally or in writing." Currently, the rather informal ways of that Chamber of Commerce Kadin and 
Employers' Association APINDO includes consultation usually only regarding their members instead 
of inviting the community ((foreign) business) in a wider context. 
Question:  
Does Indonesia foresee a more structural way of holding wider consultations on regulations that 
affect its trade and investment climate?  
Response: 
The main role of government is as fasili tator and actor implementing the business are 
run by Indonesian business players. Consultati ons with business players is  a must both 
in oral and in written. Consultations in a wider context is possible to create more 
tranparency.  
EU follow-up question: 
What will Indonesia concretely do to ensure wider consultations on its regulations?  
Response 
Indonesia enacted law No. 14 of the year 2008 concerning Transparency on Public 
Information. It assures that all management  of public bodies must be accountable 
to the community. Public bodies including the legislative, Executive, Judiciary and Civil 
Society Organizations whose funds either part ially or wholly source from public shall 
publish or convey information openly. All draf ts of the law can be found in the ministry 
of law and Regulation’s website www.keme nkumham@go.id. Comments and inputs are 
welcome and they can be sent to initiator. 
Page 20, table 2.1 and para 3.1.25 page 67 The Coordinating Ministry of Economic Affairs – MENKO – is described here as responsible for 
ensuring coherence of economic policy (including trade policy). It is thus in charge of coordinating 
the Ministry of Trade and Industry. Yet, regulations stemming from those departments tend to contradict each other at times (for instance draft Trade and Industry Laws giving each 
responsibility over trade remedies). In addition, the Negative Investment List of 2010 (36/2010) 
was soon after its release being rendered less valid by a Law on Horticulture restricting foreign ownership to 30% - substantially below the DNI levels of 95%.  WT/TPR/M/278/Add.1 
 
- 229 - 
 
  Question:  
Will MENKO aim to bring together the draft trade and industry laws into one coordinated and 
consistent legislation? Would Indonesia be open to receive feedback on those laws to help this 
process?   
Response: 
Yes, Coordinating Ministry ha s been envolved in formulatin g the policies. Feedback from 
stakeholders is open, especially when the dr aft is still under the process of formulation 
article by article.  
EU follow-up question: 
Can the Indonesian authorities indicate how and by when the consultation process on the trade 
and industry law will be organised? 
Responses 
These drafts of the law have been prepared  and formulated several years ago but they 
are not yet discussed in parliament. Inputs or comments are still open and they can be 
sent to both to the ministry of trade and the ministry of industry  
2.3. Trade agreements and arrangements 
2.3.1. WTO participation 
Page 22, paragraph 2.8 and page 45 para 3.37 
The Report points out that Indonesia did not keep up with its notification obligation particularly 
with regard to import licensing.  
Question:  
What measures are foreseen to remedy the situation and facilitate trade given that in the 
Government report Indonesia stresses in para 3.1.2.4 “its engagement in the WTO for the 
successful outcome of the negotiations in the Group on Trade facilitation “  
Response: 
Indonesia has interest that trade facilitat ion can be one of the outcomes in next 
negotiations as trade facilitation is one of to ols to create free flow of goods not only in 
border line but also in domestic market. 
EU follow-up question: 
What measures are foreseen to remedy the situation and facilitate trade in Tanjunk Priok harbour? 
Response: 
Having Non Prioritized Prominent Partner Lane (MITA non prioritas), Prioritized 
Prominent Partner Lane (MITA Prioritas) as pa rt of Customs modernization is one of the 
ways of how Indonesia supports the initiative of Trade Facilitation especially in Tanjung 
Priok Harbour. Indonesia Customs provide  all importers with good track records a 
chance to apply and become one of the impo rters who get the benefit of Non Prioritized 
Prominent Partner Lane (MITA non prioritas) , Prioritized Prominent Partner Lane (MITA 
Prioritas). 
P o r t  o f  T a n j u n g  P r i o k  i s  c o n s i d e r e d  t o  b e  n o  l o n g e r  a b l e  t o  a c c o m m o d a t e  i n c o m i n g  
containers due to congestion and long dw elling time. Kalibaru harbour or New Tanjung 
Priok harbour is now under process of develo pment. This project shall anticipate the 
addition of 1.5 million TEUS containers  in 2014 and shall reduce dwelling time from 
6.25 days to 3 days.  WT/TPR/M/278/Add.1 
 
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  2.4. Foreign investment regime 
2.4.2. Negative list 
Page 31, Para 2.36  
In the course of 2012, the government (Investm ent Coordinating Board – BKPM) introduced a 
minimum capital requirement of around USD 1 million  for foreigners for establishing a company in 
Indonesia.   The EU is concerned that such measure is to seriously hamper joint ventures between 
innovative, high-tech foreign companies and Indonesian partners. 
Question:   To what extent can the government justify the above mentioned measure in light of its overall 
objective to attract foreign investment and treat foreign and local business in the same way?   
Response: 
The aforementioned requirement is based on the sectoral laws. We demand for 
minimum capital as investment would requ ire a large amount of money. Minimum 
capital requirement at least will avoid disgui sing investors who are not serious in doing 
business in Indonesia.  
EU follow-up question:  
The EU would like Indonesia to further explain how a minimum amount for investment can be the 
criterion  of the seriousness of an investor ‘s intentions regarding its business strategy and 
business plan in Indonesia? 
Response: 
It counts upon the business sectors. Busi ness on Banking Sector requires minimum 
capital of 100 billion IDR starting from Janua ry 1st, 2011. Other se ctors of business for 
foreign direct investment require ten billio ns IDR (paid up capital is US $ 250,000)  
Question: 
Would Indonesia be open to a discussion with the foreign community with regard to its upcoming 
revision of the Investment Negative List, notably to ensure areas that are in the interest of 
Indonesia’s overall economic objectives? 
Response: 
Indonesia is open to series of discussion in reviewing negative list. It is not necessary to 
ask review during the last minutes of the en d of the review but it can be done longer 
time prior to the enactment. Inputs can be de livered or discussed with in line ministries 
and/or it can be sent to or discussed with Coordinating Ministryof Economy. 
EU follow-up question: By when and under which modality will Indonesia organise a consultation? 
Response: 
Indonesia enacted law No. 14 of the year 2008 concerning Transparency on Public 
Information. It assures that all management  of public bodies must be accountable 
to the community. Public bodies including  th e legislative, Executiv e, Judiciary and Civil 
Society Organizations whose funds either part ially or wholly source from public shall 
publish or convey information openly. All draf ts of the law can be found in the ministry 
of law and Regulation’s website www.keme nkumham@go.id Comments and inputs are 
welcome and they can be sent to the init iator (Coordinating Ministry for Economy) WT/TPR/M/278/Add.1 
 
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  3. TRADE POLICIES AND PRACTICES BY MEASURE 
3.1. Measures directly affecting imports 
3.1.1 Procedures 
3.1.1.1. Registration requirements 
 The EU notes that currently, the new system for im port licenses creates massive congestion at the 
ports and shortages of many products on the Indonesian market.  
Question:  What does the government intend to do to solve these problems? Will Indonesia consider 
automatic import licenses to facilitate a faster entry of imports? 
Response: 
Indonesia fully understands the facts and recent  real conditions  in the implementation 
of import license. We learned much from it so that we are starting to review and discuss 
among that matters with in line ministries.  
EU follow-up question: 
Does the EU correctly understand that the current licensing regime will be amended shortly? What 
could the government do meanwhile to facilitate trade?  
Response 
Import licensing regime for horticultura l products has been amended with MOT 
Regulation no.16/M-DAG/PER/4/2013, and MOA Regulation 
No. 47/Permentan/OT.140/4/2013.  
3.1.1.2. Port of entry restrictions 
Page 32, paragraph 3.7 
Port of entry restrictions are in place for a number of items. 
Question:  How does the port of entry restriction accommoda te competitiveness and lowers the overall price 
levels of goods, taking into account  the lack of infrastructure to transport goods efficiently? 
Response: 
We are continuously improving the infrastructure in all designated port to provide better 
service and maintain level of competiveness.  
EU follow-up question: 
Al l  EU c ount rie s  fu lf i l h ig h le ve ls  of  f ood  s afe ty and  p lant he alth SP S ru le s . I nd one s ia d oe s  not 
have to comply with individual EU member state food laws but has access to over 500 million 
consumers following one EU clearance procedure. Will Indonesia therefore, like the EU's other 
trading partners, stop the current discriminatio n and grant with immediate effect a Country 
Recognition Agreement status to all EU agricu ltural imports through Tanjung Perak Sea Port. 
Response: 
 Indonesia is fully aware of high level of food Safety in EU but referring to MoA 
Regulation, recognition of food Safety must be submitted by single country.  
 With regard to MoA Regulation No. 88/2011,  Country Recognition must be submitted 
by single country  
 The said regulation was formulated and  refering to international rules such as 
CAC/GL 20-1995; CAC/GL 47-2003; CAC/GL 26-1997; CAC/GL 53-2003; Codex WT/TPR/M/278/Add.1 
 
- 232 - 
 
  Alimentarius Joint FAO/WHO; Guidelines for strengthening national food control 
system, FAO and WHO 2003; CODEX STAN 193-195, rev2-2006. 
 Country recognition agreement status will be  issued after Ministry of Agriculture 
considers : 
1. Evaluation result of the application and av ailability data on food safety supervision 
system in EU 
2. Assessment report and verification on the food safety supervision system in EU 
3. Conclusion or recommendation of the m eeting on the request for recognition and 
assessment reports  
3.1.1.3. Pre-shipment inspection 
Page 32, paragraph 3.8 
The Report refers to a number of goods requirin g pre-shipment inspections. Ministry of Trade 
(MoT) adopted recently regulation 83/2012 extending the initial 'crisis-related emergency' 
measures (MoT regulation 57/2010, preceded by Mo T regulation 56/2008) by another three years.  
Question: 
Does the government consider that this regulation is still needed from a 'crisis-response' point of 
view?  
Response: 
As regulator, Government shall  ensure safety by allowing the precautionary measures 
available.   
EU follow-up question: 
The EU would like to know which are the sa fety objectives pursued by this measure? 
Response 
The GoI intends to assure that imported prod ucts meet  the requirements. In this case, 
the characteristics, types and details of impo rted products are in line with or conformed 
to the description of goods printed in the docu ment of import. This system helps a faster 
flow of goods in border line as they are already conformed in loading ports.  
3.1.4.3 Excise Tax 
Page 44, paragraph 3.33 
The Excise Tax rate applied to imported alcoholic beverages with an alcohol content of 5% or more 
is higher than for domestic production. The  EU considers that this policy may be an incentive for 
more  illegal trade and parallel market that are detrimental to the government’s objective of tax 
collection and general public health objectives . 
Question:  
Could Indonesia explain how this policy is justif ied with regard to the principle of National 
Treatment in the WTO? Does Indonesia consider e liminating these discriminatory excise duties in 
light of the above remarks? 
Response: 
The regulation of alcoholic beverages excise ta x is not discriminatory because in case of 
product spesification there are several di fferences between imported and domestic 
alcoholic beverages on quality, raw material , production processing, price and market 
segmentation (imported product are more premium class than local product). By 
imposing of excise tax and import duty, im ported product will gain several advantages 
which are : WT/TPR/M/278/Add.1 
 
- 233 - 
 
  a. They will get higher quality for simila r category (different domestic market 
segmentation)  
b. Specific tariff rate system will make the calculation of excise tax and import duties 
simpler and faster, and also will av oid dispute on custom valuation 
c. It gives more  guarantees for excelent level of hospitality services by Indonesia 
tourism industry through maintaining im ported alcoholic beverages availability 
 
Indonesia is under consideration for effort s to reduce and eliminate the gap between 
the impositions of excise duty of imported  alcoholic beverages to the local origin. 
EU follow-up questions 
The excise system explicitly discriminates agains t imported alcohol products above 5° abv, i.e., 
Category B and Category C products, by applying rates that are much lower for domestic products 
than for imported products. For example, imported Category B beverages, where EU wines fall, are 
subject to a tax that is 10,000 IDR greater (1.33 times higher) than the like domestic beverage.  
Domestic Category C spirits are subject to an ex cise rate of 75,000 IDR per litre, while imported 
spirits are subject to an excise rate of 130,000 IDR per litre – some 1.7 times higher.  
- How does Indonesia consider its above system not to be discriminatory?  
- How does Indonesia consider the above to respect its obligations under GATT Article III: 
National Treatment on Internal Taxation and Regulation? 
- Is Indonesia not concerned about the effect of these restrictions and taxes have on 
encouraging parallel and illegal imports and dist ributions, often entailing loss of tax revenues 
and health problems? Hence, would Indonesia consider alternative options? 
Response 
It is not discrimination. That they are in the same HS classification might be confirmed,  
but they are not like products. Imported al cohol products are mostly consumed by 
minority and tourists whereas local produc ts are mostly consumed in the different 
segments of market in Indonesia. It is not sol ely on the issue on excise system, but it is 
closely related to moral hazard and belief.  Accepted suggestions came that alcohol 
beverages shall not be traded in Indonesia, ho wever it  is considered unrealistic as  
there are tourists or foreigners consuming alcohol in Indonesia. In addition, there are 
some local producers of alcohol.   Like trea tment to other hazardous products, we intend 
to make fewer people to consume less alcohol.  Another thing we did was  to restrict the 
distribution of alcohol beverages by placin g the said industry as a closed sector of 
business in our negative lis t on investment system.  
3.1.5. Import prohibitions, restrictions, and licensing 
3.1.5.1 Import prohibitions 
Pages 44 to 45, paragraphs 3.35 to 3.40 
The Report is silent on Indonesia's future commitments to facilitate imports.  
Question:  
Does Indonesia intend to liberalise its strict import quotas?  
Response: 
As part of our commitment to trading partners, we are continuously reviewing and 
enhancing  coordination with related stak eholders to improve our trade policies.  
EU follow-up question: 
Does Indonesia therefore intend to liberalise its strict import quotas?  WT/TPR/M/278/Add.1 
 
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  Response 
Yes, there is no warranty that rules cannot be changed or amended, nonetheless review 
and amendment shall be done progressive ly. We are continuously reviewing and 
enhancing coordination with related stak eholders to improve our trade policies. 
3.1.5.3. Import licensing 
Page 45, paragraph 3.39 
Around 2,600 tariff lines are subject to import licensing, representing around one-fifth of 
Indonesia's tariff, which is a significant increase over the review period. 
Question:  
How does Indonesia justify this increasing trend which has created various concerns among WTO 
Members as stressed in the subsequent Paragraph 40? What steps does Indonesia consider taking to ensure that a uniform, predictable, transparent policy is applied? 
Response: 
As developing country with emerging market , Indonesia is still continuously reviewing 
for the best policies to regulate the importat ion of goods. As part of our commitment to 
trading partners, we are continuously re viewing and enhancing coordination with 
related stakeholders to improve our trade policies.  
EU follow-up question: 
Can Indonesia explain how this policy contributes to legal predictability and to foster trade? 
Response 
Mostly, regulations will not enter into force at  the date of signature. They shall have a 
certain time period of transition so that it is part of legal predictability. Furthermore, 
business players are given time to give inputs . In that case that we encounter negative 
impacts of the issued policy such as inflation rate, smuggling, we are open to review or 
amend them. 
The recent MoT regulation 27/2012 obliges importer s to establish a 'special relationship' through 
the Indonesian embassies abroad. 
Question:   
Will Indonesia provide instruction for its embassies regarding the procedures to obtain a 'special 
relationship' and the various fees embassies are charging, according to reports? 
Response: 
In accordance to Article 9 MoT regulation 27/2012, we are coordinating with our 
embassies in order to provide assistance re garding the procedures to obtain ‘special 
relationship’. Every assistance provided is free of charge.   
EU follow-up question: 
The EU still receives complaints from industry that in certain embassies, costs can amount to over 
US$ 1000 to obtain this special relationship. Can Indonesia publish the rates, procedures and time for obtaining this status per embassy so that business is aware of the additional costs?  
Response 
In accordance to Article 9 MoT regulation 27/2012, we are coordinating with our 
embassies in order to provide assistance re garding the procedures to obtain ‘special 
relationship’. Every assistance provided is free of charge. It is  moderately easy to issue 
the document once the requirements are fulfill ed. We are afraid that the said charge was WT/TPR/M/278/Add.1 
 
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  asked by either consultant, brok er, agent or other third parties . The output would have 
been different had the indust ry prepare it by themselves  
Page 45, paragraph 3.40 
The Report highlights the concern of WTO memb ers regarding the complexity of, the lack of 
transparency, and the trade-impairing effects of Indonesia's import licensing requirements. 
European companies consider the new import licensing requirements and longer time frames for 
processing imports currently being experienced at ports of entry, increasingly burdensome. The EU considers that the lack of information regarding the criteria for granting or refusing the licenses, 
does not comply with Article 3.3 of the WTO Agreement on Procedures for the Granting of 
Licenses. In any case, being discretionary, these measures seem to be in contradiction with Article 4.2 of the Agreement on Agriculture. In addi tion, the EU notes that the system created 
considerable congestion at the ports and shortages of many products on the Indonesian market. 
Question:  What measures does Indonesia envisage to solve these problems? 
Response: 
Review of the regulation is still under the process  
EU follow-up question: 
Can Indonesia provide a timeline for this review? Response 
Indonesia is of the view that all import licensing regimes are stipulated in simple, 
transparent, and professional manner. Fo r horticultural products, we have new 
regulations set into force; Regulation no.16/M-DAG/PER/4/2013, and MOA Regulation 
No. 47/Permentan/OT.140/4/2013 
3.1.6. Contingency measures 
3.1.6.1. Anti-dumping and countervailing measures 
Page 46, paragraph 3.43 
KADI may undertake anti-dumping and countervailing investigations on its own initiative or launch 
an investigation based on an application from domestic industry. Regulation No. 34 introduces the 
requirement that the petitioner or the domestic indu stry supporting the petition must constitute at 
least 25% of total domestic production of the like product(s) to be investigated. The provision does 
not seem to fully reflect provisions of article 5. 4 of AD agreement and 11.4 of SCM agreement (“ if 
it is supported by those domestic producers whose collective output constitutes more than 50 per cent of the total production of the like product pr oduced by that portion of the domestic industry 
expressing either support for or opposition to the application” as the EU understands from the 
legislation) 
Question:  
Does Indonesia consider amending the relevant provisions of its legislation so as to conform to 
WTO SCM agreement and AD agreement? If so, by when? 
Response: 
The provision regarding the 25% domestic production requirement is stated in 
Article 6.1 (anti dumping) and Article 41.1 (countervailing) of Government Regulation 
No. 34/2011. While the requirement regard ing the 50% collective output of total 
production of like product is stated in Article 4.3 (anti dumping) and Article 39.3 
(Countervailing) of Government Regulati on No. 34/2011. Thus, the provisions in 
Government Regulation No. 34/2011 comply with ADA and SCM. WT/TPR/M/278/Add.1 
 
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  EU follow up question 
It is not clear to the EU, based on the available translation of the Government Regulation 
No. 34/2011, if the spirit of WTO AD and SCM Agreem ents is transferred to the relevant regulation 
(34/2011). The EU recalls that the exact WTO wording is the following: "An investigation shall not be initiated pursuant to paragraph 1 unless the authorities have determined, on the basis of an 
examination of the degree of support for, or oppo sition to, the application expressed by domestic 
producers of the like product, that the application has been made by or on behalf of the domestic 
industry. The application shall be considered to have been made "by or on behalf of the domestic 
industry" if it is supported by those domestic pr oducers whose collective output constitutes more 
than 50 per cent of the total production of the like product produced by that portion of the domestic industry expressing either support for or opposition to the application. However, no 
investigation shall be initiated when domestic producers expressly supporting the application 
account for less than 25 per cent of total production of the like product produced by the domestic industry."  
The meaning of the above provisions does not seem to be reflected in articles 4.3, 6.1, 39.3 and 
41.1 of the Government Regulation No. 34/2011 of  Indonesia.Can Indonesia further elaborate on 
the above? 
Response: 
Government Regulation No. 34 Year 200 1 Article 4.3; 6.1 (anti-dumping) and 
Article 39.3; 41.1 (countervailing) reflect Arti cle 5.4 AD Agreement (ADA), reffering to 
page 31 of “A Handbook on Anti Dumping Inve stigation” by Czako, Human, and Miranda, 
as below: 
Article 5.4 of ADA sets forth a two-pronged test for determining whether an application 
has sufficient support among the producer s constituting the domestic industry: 
Firstly, the domestic producers supporting th e application must collectively account for 
more than 50% of the total production of the like product produced by that portion of the domestic industry expressing either supp port for or opposition to the application; 
and  
Secondly, domestic producers expressly suppo rting the application must account for at 
least 25 percent of the total production of the like product produced by the domestic 
industry. 
In the first part, the test is restricted to on ly the production of those domestic producers 
expressing either support for or opposition  to the application for those producers who 
have no expressed an opinion are ignored, an d in the second part, it covers the total 
production of all the domestic producers prod ucing the like product, whether they have 
expressed an opiniion on the application or not.  
Thus, the provisions in Government Regula tion No. 34 Year 2011 comply with ADA and 
SCM. 
3.1.6.2. Safeguard measures 
Page 48, paragraph 3.52 (see also page  8, paragraph 13), and table 3.10 
The Report identifies Indonesia as one of the most frequent users ("second most") of safeguard 
measures with a significant increase in the use of such measures since 2010. 
Question:  
Can Indonesia elaborate on what justifies such increase of the use of safeguard measures?  WT/TPR/M/278/Add.1 
 
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  Response: 
The increase in the use of safeguard measures  was the result of re cent awareness in the 
domestic industry of the availability of trade remedies, i.e. the WTO Agreement on 
Safeguards. 
EU follow-up questions: 
Could Indonesia explain whether investigations are based on complaints lodged by domestic 
industry and how it ensures that these complaints include sufficient evidence to initiate an investigation? 
Response: 
Indonesia assures that the initiation of th e investigations was based of the petition 
lodged by domestic industries and in a ccordance with the requirements on WTO 
Agreement on Safeguards.  
EU initial question N°30:  
Could Indonesia elaborate on how this instrument is applied given that for most cases, there a 
sudden surge of imports was not shown (sometimes even a decrease)? 
Response: 
The said instrument is applied in accordan ce with the WTO Agreement on Safeguards. 
EU follow-up questions: The objective of Indonesia’s safeguards investigations seems to be, according to the WTO 
secretariat report, to remedy the effects of trade liberalization. Could Indonesia clarify whether 
this refers to multilateral trade liberalisation or the effect of liberalisation resulting from Free Trade Agreements with specific countries? 
How does Indonesia explain the fact that the safe guard activity increased while the anti-dumping 
activity seemed to have remained relatively stable? 
Response: 
1. The Safeguard Investigation is referring  to the rules of multilateral trade 
liberalization 
2. The increase in the use of safeguard measur es was the result of recent awareness in 
the domestic industry of the availability of trade remedies, i.e. the WTO Agreement 
on Safeguards. 
Question:  
Does Indonesia aim at re-considering its abundant use of safeguards whereas anti-dumping 
investigations might be more appropriate given the perceived increase of imports often come from 
a single or few destinations only and safeguards affecting all its trading partners?  
Response: 
In conducting its investigation and actions,  Indonesia assures that such investigation 
and actions are conducted as required by the WTO Agreement on Safeguards 
EU follow-up questions: 
How can Indonesia justify safeguards when imports concerned do not increase.? What are the 
references on which Indonesia base its measures? WT/TPR/M/278/Add.1 
 
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  Response: 
Indonesia assures that the safeguard Investig ations are conducted as required by the 
WTO Agreement on Safeguards and article XIX of GATT 1994 
Safeguard Measures may be applied if the prod uct is being imported into its territory in 
such increased quantities, absolute or  relative to domestic production.  
3.1.7.1. Notifications and specific trade concerns 
Page 52, paragraph 3.61 
Over the review period a number of specific concer ns have been raised including the transparency 
in the development of the new regulation regarding trade in halal products and labelling 
requirements. It has been noted that notification to TBT was not done on this issue. 
Question:  
Will halal labelling remain voluntary? 
Response: 
Halal is legal basis for Moslem society in gene ral, not only in Indonesia but also in all 
other moslem countries. Halal  cannot be somehow considered as quality in general 
term. It is a quality for faith which is no t debatable. A product cannot be considered 
halal unless a preliminary audit is conducted to identify the whole production process 
which shall comply with halal requirement. Until now, certificate of Islamic purity 
(Halal) is still voluntary. In the case that a product necessarily uses  a halal label then a 
halal certificate is required. 
For your Information, Legal basis for halal : 
 Food Law No.7/1996 (Article 30.1 and 34.1); 
 Consumer protection Law 8/199;  
 Government Regulation (PP) No. 69/1999 on Food Labeling and Advertisement, 
Article 3.2, 10 and 11; 
 Fatwa Decision of MUI on Approval of Halal.  
Organization responsible fo r Halal Certification are: 
1. The Ministry of Religion (Departemen Agama);    
2. The National Agency for Food and Drug  Control (BPOM) (for food, drug and 
cosmectics products; and,  
3. Indonesian Ulama Council (MUI). 
For more information please visit www.halalmui.or.id  
EU follow-up question: 
Can Indonesia confirm that the discussion in parliament on the new halal law will not affect the 
current situation where the standard is voluntary and not mandatory? 
Responses 
Yes, the standard is still voluntary, but due to  the fact that we want to assure that  
food/ beverages/other goods consumed or used by consumers are safe or halal, 
gradually we encourage business player s to demonstrate halal certificate. WT/TPR/M/278/Add.1 
 
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  Question:  
Will Indonesia maintain allowing importers to sticker products after importation as this would 
provide for the necessary information though not unnecessarily increase costs for trading 
partners?  
Response: 
In the case of label affixing, there are numbe rs of technical regulations required label 
affixing. Several regulations require that sticker must be affixed in the product or 
packaging and labeled before entering into th e Indonesia customs. It is all described in 
technical regulation or technical guid ance to the regulation. For example: 
- Government Regulation No. 69 Year 1999 concerning Food label and Advertisement  
- Minister of Trade Regulation RI No. 62/M-DAG/PER/12/2009 concerning Obligatory 
Label Affixing on any Goods and its amendment Regulation of Minister of Trade No.22/M-DAG/PER/5/2010  
Indonesia is of the view that the affixing marking label (sticker) before importation to 
Indonesia customs aiming at giving rights to the consumers to obtain a correct, clear 
and right information, so that the provisions ar e not intended to create barriers to trade. 
EU follow-up question: 
What is the rationale for maintaining prior import labelling instead of requesting it after import 
since the EU does not see any security or sanitary added value? 
Response: 
People who know precisely whether the goods are halal or not are the people producing 
the said products. We do not see the reason that people in importing countries 
(Indonesia) shall be responsible for something that they do not know anything on the process of production in overseas.  
3.1.8. Sanitary and Phytosanitary Measures 
Page 53, paragraph 3.68 
During the review period a new food law was being drafted and has entered into force.  
According to Article 36 of the Law, imports of food  products are authorised only if the domestic 
production is insufficient or if the product cannot be produced domestically. 
Question:  
How does Indonesia intend to respect its WTO obligations, in particular the commitment not to 
maintain, resort to, or revert to any measures […] including quantitative import restrictions 
provided for in Article 4.2 of the WTO Agreement on Agriculture and in Article XI of the GATT? 
Response: 
Article 96 and 97 provides that Food labels must be affixed on imported food products 
during entry into the territory of Indonesi a, which must include particularly y detailed 
information.  Many elements of information required are in vague terms (e.g. “origin of 
certain food”; “halal for those required”), t hus creating uncertainty and unpredictability. 
Furthermore, Article 98 foresees derogation s to these requirements for “certain food 
wrapped in front of shoppers”, which may re sult in treating differently imported and 
domestic products. WT/TPR/M/278/Add.1 
 
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  EU follow-up question: 
How does Indonesia intend to respect its WTO obligations, in particular the commitment not to 
maintain, resort to, or revert to any measures […] including quantitative import restrictions 
provided for in Article 4.2 of the WTO Agreement on Agriculture and in Article XI of the GATT? 
Response: 
Indonesian Agricultural Quarantine Agency  as the National Notification Body and 
Enquiry Point are drafting the MoA Regulation concerning The Notification Procedures of regulation related to SPS to the WTO. The regulation will be disseminated to relevant 
agencies to increase the awareness the re levant agencies of the obligation of 
transparency. 
Indonesia will evaluate and revise the regu lations that have been implemented to 
comply with obligation of WTO 
Question:  Could Indonesia explain how the new law contributes Indonesia's policy of food self-sufficiency, 
especially considering many of prospective investors were looking at high technology investments 
in for instance high yield seed varieties? 
Response: 
That article shall be implem ented in lower regulation.  
EU follow-up question: 
Could Indonesia explain how the new law contributes to Indonesia's policy of food self-sufficiency, 
especially considering many of prospective investors were looking at high technology investments in for instance high yield seed varieties? 
3.2.  Measures directly affecting exports 
3.2.2. Export prohibitions, restrictions, and licensing 
Page 55 to 56, tables 3.12 and 3.13 
The Report refers to the prohibition of the export of certain raw materials including rattan and 
semi-processed rattan. 
Question:  
Would Indonesia consider the re-evaluation of these prohibitions particularly where the end-user 
would guarantee the continuous and regular im port of this product for domestic use? 
Response: 
There is no permanent regulation on certain issues. The problem we have so far is that 
rattan furniture producers are mostly located in Java island whereas raw materials of 
rattan are available in other islands. We want to  assure that there is a certainty  that for 
furniture producers get the supply of rattan . Furthermore, environment issues are the 
rationale of the said policy. Rattan that wa s sent to Java island is mostly from 
producted/industrial plants 
EU follow-up question: 
The EU understands that Indonesia is not limitin g rattan and other exports. Can Indonesia explain 
what 'permanent' in the above explanation means? 
Response: 
Permanent in this context shall mean  that a regulation can be amended.  WT/TPR/M/278/Add.1 
 
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  3.3. Measures affecting productions and trade 
3.3.1. Government procurement 
Page 60, paragraph 3.99 
The regulation that foreign companies may only bid in cooperation with a national company and 
only on bids that exceed certain thresholds (Article 104 of the PR54) as well as the mandatory use of domestic products if there are providers offering goods or services with a local content 
exceeding 40 % (Articles 97 of the PR54) both po se problems with regard to non-discriminatory 
access for foreign bidders to the public procurement market of Indonesia. Indonesia should be encouraged to change its regulations, provide for the possibility of an independent review 
procedure and abolish the local content rule. The Report emphasizes that Indonesia became and 
observer to the WTO Government Procurement Ag reement (GPA). The EU welcomes Indonesia’s 
observership to GPA. 
Question:  
Could Indonesia indicate when it intends to launch the accession process to GPA? How does 
Indonesia see its Government procurement regulation impact international companies to bid for 
infrastructure projects, in the context of PPPs for instance for the MP3EI (see above? 
Response: 
 At this point, Indonesia has no plan to acceede the GPA but more focusing on 
improving its procurement system to be more structured and international best 
practices-based.   
 Indonesian procurement regulation allows foreign companies to participate for any 
infrastructure projects, as long as the valu e of the projects is above the stipulated 
threshold as mentioned in PR 54/2010 (for construction projects is above 10 million 
USD). 
EU follow-up question: Can Indonesia confirm that foreign companies can bid for public tenders without necessarily having 
a 40% local content requirement? 
Response: 
Foreign companies could participate bid for public tender which is regulated under 
Article 104 of Presidential Regulation No. 54 year 2010 and its second ammendment 
with Presidential Regulation No. 70 year 2012. 
The 40% local content provisions have a pplied for local and foreign companies. 
3.3.5 Intellectual property rights 
3.3.5.4 Regulatory developments (2007- 12), page 70, paras 3.138 to 3.140 
 
Question:  
Could Indonesia explain how such identical treatment is consistent with considering the 
authorization of use of each of the patents on in its individual merits? 
Response: 
In the existing Patent Law, there is no prov ision whether it is allowed to include one or 
more active substance(s) in one Decree or not. Learning and observing recent 
development in the national and internationa l level on this matter, Indonesia would like 
to explore much more detail and further the provision of Article 31(a) of TRIPS in view 
of the existing patent Law and any practice that has been applied in Indonesia. As the 
process of amending Patent Law is still ongo ing, any input will be considered to be 
inserted in the draft law with regards to our deep exploration and assessment.   WT/TPR/M/278/Add.1 
 
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  EU follow-up question:  
Could Indonesia provide more information on the process and timing regarding the amendment of 
its Patent Law? (When can the amended Patent Law be expected to enter into force?) 
Response: 
The Government of Indonesia has made many e fforts in order to put this draft into the 
Parliament. In 2013, all drafts of amandement of IP laws are failed to be included in the 
National Legislation Programs and therefore th ey will be submitted next year (2014). At 
the latest second semester of 2015, we  hope that they would be finalised. 
Question:  
Could Indonesia explain how Article 102 of its Patent Act can be interpreted consistently with 
Article 31(i) of TRIPS? 
Response: 
There are two schemes to use a patent without the authorization of the right holder i.e. 
Compulsory License and Governmeent Use. The provisions on Governement Use are set forth in articles 99-103 of the Patent La w No.14/2001 and further elaborated in 
Government Regulation No.27/2004. Governme nt Use will only be issued in emergency 
situations, therefore objections can only be filed with regard to the amount of 
compensation. 
However, Indonesia is open and very welcom e to discuss and explore in more detail the 
provision of Article 31(i) of the TRIPs, part icularly in connection to any practices and 
what have been regulated in our existing Pate nt Law. As we are still in the process of 
amending the Patent Law, any input will be taken into account to be inserted in the 
Draft with regards to our deep exploration and assessment.   
EU follow-up comment and question: 
The EU notes that Article 31(i) TRIPS does not contain any limitation of the obligation to subject to 
judicial review or other independent review by a di stinct higher authority the legal validity of any 
decision relating to the authorization of the use described in the chapeau of that Article. One the 
other hand, the Indonesian law limits the review regarding Government use to the issue of the amount of compensation. The EU would thus recommend that the wider scope of the TRIPS 
obligation be taken into consideration by Indonesia when amending its Patent Law to ensure the 
consistency thereof with the TRIPS Agreement. Indonesia mentions above that “for compulsory 
license scheme judicial review can be done for any decision”. Could Indonesia clarify where this is 
stipulated? 
Response: 
According to the Patent Law no. No. 14 of 2001 in Article 83, it is stated that Compulsory 
license can be revoked if the owner of th e patent can be granted this including: 
1) Upon a request of the patent holder, the Directorate general may revoke a decision 
on the grant of a compulsory license as referr ed to in Part Three of this chapter if: 
a. the ground that formed the basis for granting the Compulsory License no longer 
pertain; 
b. the compulsory licensee has evidently not implemented the compulsory license or 
has not made any appropriate preparatio n for immediate implementation of the 
license; 
c. the compulsory licensee is no longer comp lying with other terms and conditions, 
including the obligation to pay royalties st ipulated in the grant of the compulsory 
license; WT/TPR/M/278/Add.1 
 
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  2) The revocation as referred to in paragr aph (1) shall be recorded and announced. 
Furthermore, it is a general principle that  any decision issued by the Government 
regarding any administrative decission is subject to judicial review, which can be 
requested to the Administrative State Court. 
3.3.5.6. Enforcement 
Page 72 para 3.144 and 3.145 
 
Paragraph 3.144 sets out certain provisions of Law No. 17 (2006) regarding action that may be taken when there is evidence of IPR violations. Paragraph 3.145 sets out, among other, provisions 
allowing the Commercial Court to issue a provisional decision to prevent the continuation of 
infringement of  IPR, to keep the evidence relating to the infringement of IPR and to request the applicant party to provide evidence of entitlem ent to the IPR and of infringement thereof. 
Question:  
Could Indonesia provide more details regarding the mechanisms in place or under preparation to 
ensure the effective implementation of the above provisions and other provisions in Indonesia's 
system of IPR enforcement, including (but not limited to) information on the following:  
a. whether further regulation (Minister's regulation) as mentioned in Article 53 of Law No. 17 
(2006) has been prepared or is under preparation; 
b. whether supplementary legislation/regulation (e.g. guidelines from the Supreme Court) 
exists or is in preparation regarding the implementation of the provisions allowing the 
Commercial Court to issue a provisional decision to prevent the continuation of infringement 
of IPR, to keep the evidence relating to the infringement of IPR and to request the applicant 
party to provide evidence of entitlement to the IPR and of infringement thereof; 
Response to a) and b): 
Supreme Court Regulation on Injunction has been issued to suspend goods suspected to 
IP infringement at the border with Judici al Scheme. This sche me requires active 
participation of the right holders, and theref ore our customs authority is now working to 
h a v e  a n  M o U  w i t h  i n d u s t r i e s  t o  h a v e  a  m u tual understanding in implementing this 
scheme.    
The other scheme provided by the Customs La w is ex-officio scheme. Indonesia is taking 
a step-by-step actions toward implementing this scheme. Government Regulation on the 
implementation of  this scheme is st ill under process to be established.   
EU follow-up question: Could Indonesia provide more information on the process and timing regarding the preparation of 
this Government Regulation?  
Response: 
The process of this Government regulation through several steps; first step, it must 
acquire permission from President to draft Go vernment regulation. Second; the draft will 
be complied by a team  to allow it to harm onize with the Act. Finally, the Act can be 
established by President. In this matter,  regarding to Law no.12 of 2011 about the 
formulation of regulations that the maximum of  time will takes 1(one) year to process 
the Government regulation. 
EU initial question c): whether any mechanism or database enabling the tracking of IPR 
infringement cases through Indonesia's legal system is under development? 
Question: 
Could Indonesia be more specific in terms of identifying the relevant database for the purpose of 
enforcement and outlining whether/how this ca n be employed by users other than DGIPR? WT/TPR/M/278/Add.1 
 
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  Response: 
Heretofore, there is no specifically law enfo rcement to establish yet. However, since the 
establishment of Indonesia national taskforc e in 2006, through Secretariat that all of 
data particularly enforcement activities re lated to IPR will always serve as input in 
database. So, this can be used to ensure their effective enforcement. 
4.5. Mining 
Page 81, paragraph 4.31 
The WTO secretariat report refers to a prohibition on the legislation referred to in this paragraph 
prohibits mining companies from exporting mineral ore products (currently subject to export 
licensing and taxes) as of 2014, when they will be required to undertake refining activities 
onshore. This measure has been ruled as illegal by Indonesia's Supreme Court but the government 
has refused to amend it subsequently.  
Question:  
Does Indonesia intend to amend its Regulation in order to make it in line with the Supreme Court's 
judgement?  
Response: 
The Supreme Court was only nullifying several Articles in the Minister of Energy and 
Mineral Resources No. 7/2012. However, the said regulation had been previously 
amended before the decision of Supreme Court was issued. According to the new 
regulation (Minister of Energy and Minera l Resources Regulation No. 11/2012), certain 
conditions must be satisfied for exportation of mineral ore products.   
EU follow-up question: The EU reads that the Supreme Court’s rules the following: the  objections to Article 21 of 
MoEMRR 7/2012 were as follows (i) a MoEMR imposed export ban was contrary to numerous 
provisions of the 2009 Mining Law and GR23/2010 and (ii) if there was to be an export ban at all, 
it could only be introduced on the basis of a government regulation, not a ministerial regulation, 
and following consultation with the DPR (parliament).  
What are Indonesia's intentions in the light of this reading? Response 
Export restriction was inconsistent with the Mining Law. In case there shall be export 
restriction policy, it should be regulated in  government regulation (one level below the 
level of Law), not in the ministerial decree. However, the judicial review issued by the 
Supreme Court has weaknesses because The law (Law No 24 of the year 2003, Article 55  says that all judicial reviews (MoEMRR 7/2012)  will be not valid if the law (mining law) 
is under the process of judicial review in Constitution Court.  
The fact is that MoEMRR no 7 of the year 2012 dated February 6, 2012 was amended by 
MoEMRR No 11 of the year 2012 dated May 16, 2012 entering into force May 21, 2012. 
The later MoEMRR allows permit owners to export raw material or ore mineral after they 
acquire recommendation from the Minister of EMRR or related Director General (Article 
21A)  
Preguntas adicionales planteadas por el Ecuador  
Informe del Gobierno 
Evolución del comercio y las políticas relacionadas con el comercio, numeral 4.2) Desarrollo de las 
Inversiones, párrafo 4.6: a Ecuador le gustaría conocer cuál ha sido el impacto y la efectividad de 
las diferentes políticas fiscales para promocionar al comercio (reducción del impuesto a la renta, WT/TPR/M/278/Add.1 
 
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  exoneraciones temporales y reembolsos de aranceles a la maquinaria y materia prima) que 
Indonesia a establecido. 
Evolución del comercio y las políticas relacionadas con el comercio, numeral 4.2) Desarrollo de las 
Inversiones, párrafo 4.7: Indonesia ha adoptado  una lista negativa de inversiones (NIL), que 
recoge las esferas económicas vetadas a la inversión y las esferas en las que la inversión está 
permitida bajo ciertas condiciones. Ecuador desearía conocer ¿cuáles son las condiciones 
establecidas y en qué medida podría afectar a las inversiones que se pretendan hacer en 
Indonesia? 
Informe de la Secretaría de la OMC  
Resumen  
Resumen, párrafo 2, página 7, hace referencia a que Indonesia ha adoptado diversas medidas 
para mejorar el entorno empresarial y que ello ha hecho posible su ascenso en diversas clasificaciones basadas en indicadores mundiales. En este sentido, ¿Podría Indonesia indicarnos 
qué tipo de medidas ha adoptado para la mejora de su entorno empresarial? 
Resumen, párrafo 8, página 8, respecto a la reforma aduanera establecida para reducir el tiempo y 
el costo del despacho de aduana y limitar el contrabando y el fraude, con el objetivo de mejorar la 
gestión de riesgos y facilitar el comercio introduciendo planes para los importadores reconocidos. 
¿Podría Indonesia indicarnos si estos planes tendrían alguna vinculación con el tema de los 
Acuerdos de Reconocimiento Mutuo? 
III. POLÍTICAS Y PRÁCTICAS COMERCIALES, POR MEDIDAS  
Capítulo 3, Sección 3.1 Medidas que afectan directamente a las importaciones, párrafo 3.10, 
página 36, respecto de los interlocutores importante s prioritarios y no prioritarios. Partiendo de las 
facilidades que se otorgan a los importadores catalogados como interlocutores importantes 
prioritarios en el proceso de despacho de las mercancías en comparación a otros importadores. ¿Podría explicarnos Indonesia sobre la base de qué criterios o definiciones se realiza estas 
distinciones entre importadores y cómo estas facilidades, para el caso de importaciones de 
mercancías similares, se justan a los principios de no discriminación? 
Capítulo 3, Sección 3.1 Medidas que afectan directamente a las importaciones, párrafo 3.25, 
página 42, en relación a las solicitudes de exen ción de derechos que se presentan a la Junta 
Coordinadora de la Inversiones de Indonesia (BKPM). Partiendo del hecho de que la decisión de 
otorgar determinada exención depende de un resolución del BKPM basada en los tres criterios expuestos. ¿Podría Indonesia indicarnos cómo este plan se ajusta los compromisos de su país en 
materia de inversiones relacionadas con el comercio si se considera que, al introducir la variable 
de la existencia de producción interna en el país en los literales b) y c) como requisito de análisis para el otorgamiento de las exenciones por parte de la Junta, parecería existir una vinculación 
entre la exención de derechos y el consumo de bienes de producción nacional. En este sentido, 
pensando en aquellos bienes importados similares, directamente competidores o sustitutos, cómo este plan se ajustaría a los compromisos de Indonesia en materia de trato nacional? Además, 
¿Podría indicarnos Indonesia bajo qué parámetros se determina, en el análisis de solicitud de 
exención, la satisfacción de las necesidades de la industria? 
Capítulo 3, Sección 3.1 Medidas que afectan directamente a las importaciones, párrafo 3.33, 
página 47, en relación a los tipos del impuesto especial de consumo aplicado a las importaciones. ¿Podría explicarnos Indonesia las disposiciones de la normativa multilateral sobre las cuáles se 
sustenta la aplicación de impuestos superiores a los productos importados de los que se gravan a 
los productos nacionales de bebidas alcohólicas que contengan entre el 5% y 20% y más del 20% 
de alcohol etílico, más aún si de otro lado esta industria de bebidas alcohólicas es considerada WT/TPR/M/278/Add.1 
 
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  como una actividad cerrada a toda inversión amparada en motivos relacionados con la salud, la 
seguridad y el medio ambiente (párrafo 2.27, página 28)? 
Capítulo 3, Sección 3.1 Medidas que afectan directamente a las importaciones, párrafo 3.127, 
página 73, en lo referente a la participación del Gobierno en la estabilización de los precios del arroz. Conforme se describe en el párrafo referido, entendemos que la participación del Gobierno, 
como parte de medidas de constitución de existencias públicas, es con fines de seguridad 
alimentaria. ¿Podría indicarnos Indonesia, en el caso de que se concrete el aumento del 10% del precio de mercado que pagan los consumidores, quien asume ese diferencial de precio antes de 
que el Ministerio de Comercio de las instrucciones de importar arroz, para el caso de las compras 
garantizadas por Perum BULOG a los productores nacionales? Además, ¿Cómo se asegura Indonesia que el efecto de estabilización de los precios para temas de seguridad alimentaria no se 
convierta en una medida de sostenimiento de precios a favor de los productores de arroz? 
Políticas y prácticas comerciales, por medidas, numeral 3.1.5) Prohibiciones, restricciones y 
licencias de importación y 3.1.7.1) Notificaciones y preocupaciones comerciales específicas: Al 
Ecuador le gustaría conocer ¿en qué medida las restricciones a la importación de productos como 
el camarón así como la limitada concesión de licencias de distribución de alimentos y suplementos 
alimenticios, medicamentos y productos cosméticos obtenidos de sustancias “no halal”, han afectado al comercio de esos productos, así como al abastecimiento en el mercado nacional? 
IV. POLÍTICAS COMERCIALES, POR SECTORES  
Capítulo 4, Sección 4.6.1 Incentivos, párrafo 4.37, página 87, referente a los reembolsos por los 
derechos de importación (que suelen variar del 0% al 150% del valor aduanero de las mercancías 
importadas). ¿Podría indicarnos Indonesia cómo se determina ese porcentaje que determinaría el valor de reembolso, y qué sucede si el valor de reembolso estaría por encima del valor a pagar por 
concepto de derecho de aduana del bien importado, cómo se implementa la medida de incentivo? 
De igual forma, en relación a la reducción de la renta imponible de hasta un 30% de la inversión de capital realizada. ¿Podría indicarnos Indonesia cómo se determina el porcentaje de reducción y 
qué sucede en el caso de que el valor, como resultado de la aplicación de ese porcentaje, diera 
como resultado un valor superior al que se tiene que cubrir por concepto de renta imponible, la diferencia se la considera como crédito tributario? Considerando que se trata de medidas para 
atraer inversiones extranjeras manufactureras orientadas a la exportación, ¿Cómo esta medida de 
incentivos se ajusta a los compromisos de Indonesia en materia de subvenciones a las 
exportaciones? 
Capítulo 4, Sección 4.7.3 Políticas comerciales, por sectores, página 90, párrafo 4.68, hace 
referencia a que el sector de telecomunicaciones se rige por la ley No. 36/1999, que establece 
directrices para la liberalización, facilitación, de la entrada de nuevas empresas y el aumento de transparencia y la competencia y que, sin embargo, la ley se aplica por medio de numerosos 
reglamentos gubernamentales y ministeriales,  ¿Podría Indonesia explicarnos cómo estos 
numerosos reglamentos están facilitando la entrada de empresas al sector de telecomunicaciones? 
Instrumentos de política comercial, párrafo 4.13, página 82: Al Ecuador le gustaría conocer con un 
poco más de profundidad sobre las restricciones cuantitativas a la importación de algunos productos sobre la base de medidas sanitarias  y fitosanitarias, culturales y de seguridad 
alimentaria y los mecanismos utilizados para establecer dichas regulaciones y el efecto de las 
mismas en los sectores afectados. 
Minería, párrafo 4.28, páginas 86: Indonesia ha establecido una nueva normativa que parece 
restringir las exportaciones de minerales en bruto sin ningún tipo de elaboración.  A Ecuador le 
gustaría conocer qué tipo de repercusiones ha tenido la citada normativa en el marco de los 
Contratos de Inversiones firmados entre el Gobierno y las empresas nacionales y extranjeras? ¿Ha habido algún efecto en la inversión extranjera directa destinada a esas actividades? ¿Cuál ha sido WT/TPR/M/278/Add.1 
 
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  el efecto en los gremios productivos y de generación de encadenamientos al aplicarse esta 
medida? 
Response: 
The obligation to build processing facilities  has been stated in the contract. This 
regulation intends to speed up the realizat ion, and It is expected that this would 
stimulate investment in mining sector. 
Medidas relacionadas con el comercio, párrafo 4.43, página 88: Indonesia ha impuesto aranceles a 
sus principales productos de exportación primarios como el aceite de palma, el cacao en grano y el cuero y la madera, con la finalidad de fortalecer la política de aumento de valor agregado nacional 
teniendo en cuenta que la mera exportación de materias primas no crea los tipos de empleos 
necesarios para elevar el nivel de vida de su población.  Siendo Indonesia un país que basa su economía principalmente en bienes primarios y serv icios, ¿qué tipo de repercusiones ha tenido la 
medida en el equilibrio externo (balanza de pagos)? ¿Existe algún mecanismo diseñado para que 
los impuestos a las exportaciones recaudados se utilicen directamente en el desarrollo de productos que utilicen dicha materia prima? ¿Cuáles han sido las repercusiones en términos de 
pérdida de competitividad, la industria y los encadenamientos productivos? 
JAPAN 
 
Report by the Secretariat (WT/TPR/S/278) 4 TRADE POLICIES BY SECTOR 
4.4 Agriculture, fisheries, and forestry 
4.4.5 Forestry and forest products (Question12: Page 78, Paragraph 4.24) 
 
According to the Secretariat report, illegal logging and the smuggling of timber remain serious problems in Indonesia. Japan would like to ask Indonesia to elaborate the conditions of the illegal logging and smuggling 
of timber in Indonesia. 
Response: 
To reduce smuggling of timber in Indonesi a, we implement Custom Law, Forestry law 
and other related regulations on law enforcem ent. To assure that wood products are 
from legal wood, Indonesia requires the export  of timber products to be accompanied by 
V-Legal Document, assuring the legality of the products from the point of harvesting to 
transporting, trading and processing. 
[Follow-up Question] 
Question: Page 78, Paragraph 4.24 
Japan understands that the condition of illegal logging in Indonesia has significantly improved in 
recent years as the result of measures taken by the Indonesian Government.  Japan would like to 
know if Indonesia shares the same idea indicated by the Secretariat report that illegal logging and 
the smuggling of timber still remain serious problems in Indonesia.  If so, could Indonesia kindly 
provide quantitative data that corroborates such argument? 
Response: 
To combat illegal logging and illegal tr ading, Indonesia has implemented two 
approaches: hard approach and soft approach . The Hard approach is conducted by law 
enforcement, which shows significant reductio n of illegal logging cases over the years. 
Data from 2005–2011 (Source: DG Forest Prot ection and Nature Conservation – MoF) is 
shown below. 
 
  WT/TPR/M/278/Add.1 
 
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  Year 2005 2006 2007 2008 2009 2010 2011 
Cases 720 1705 478 220 151 98 59 
 
The Soft approach is conducted by establis hing a system to prevent illegal logging and 
associated trade, namely SVLK – Sistem Veri fikasi Legalitas Kayu (Indonesian Timber 
Assurance System), which is developed by mu lti stakeholders. With SVLK, it is assured 
that all timber products fr om Indonesia are legal and harvested from sustainably 
managed forest. As for timber product export , it is compulsory to be accompanied by 
V-Legal Document for every consignment. The V-Legal Document signifies that the 
exporter has already achieved Timber Legality Certificate.  
 
Illegal logging and smuggling are not only the responsibility of the producing country. 
The consuming countries also have the responsib ility to combat illegal trade, as result of 
illegal logging and smuggling, by implementing  policy to accept only legal timber and 
timber products. Japan, as one of the main importers of Indonesian timber products, is 
requested to implement such policy, to import  timber and timber products which can be 
verified and guaranteed only come from le gal and sustainable source (for example: 
EUTR, ILPA Australia, the US Lacey Act). The aforementioned regulation is needed to 
support producing countries to protect thei r forest resources fr om illegal logging and 
smuggling and to promote legal timber trade.  
 
SWITZERLAND   REPORT BY THE SECRETARIAT 
 
3.3.5.4 Regulatory developments (2007-12) 
Para.3.139 of the Secretariat’s report indicate that compulsory licenses have been issued in 
Indonesia in order to permit Government use of some pharmaceutical patents.  
Please describe the applicable provisions, criteria and procedures provided for under Indonesian 
legislation for issuing compulsory licenses. Plea se explain how these national provisions and 
procedures comply with Article 31 of the TRIPS Agreement and in particular its lit. a and c 
(requiring that each permission of such use without authorization of the right holder shall be considered on its individual merits and be limited to the purpose for which it was granted).  
Please also explain how Indonesian legislation implements the obligation on legal review with 
regard to any decision relating to the authorization of such use (TRIPS Article 31 i)). 
Response: 
Indonesia has issued Government-Use authorization in light of “the urgent need of the community 
in the effort to control the HIV/AIDS and Hepatitis B epidemic”.  
The Presidential Decree No 76 of 2012 regarding Ex ploitation of Patent by the Government on 
Antiviral and Antretroviral Drugs empowered the Minister of Health to appoint a “pharmaceutical company” as the patent exploiter on behalf of the government taking into account the 
recommendations from the head of the NADFC. The exploitation period covers the remaining 
patent protection term. 
The decree also set the “compensation fee” at 0.5% of the net selling value of the ARVs concerned 
to the patent holder.  
Follow-up question by Switzerland: Switzerland thanks Indonesia for the responses on the issuance of compulsory licenses for 
Government use and would appreciate to receive detailed information on the general legal 
provisions applicable to the issuance of compulsory licenses on which the Presidential Decree No 76 of 2012 has been based. Please indicate in particular the relevant legislation and describe the 
applicable procedures. WT/TPR/M/278/Add.1 
 
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  Could the Indonesian authorities also clarify what kind of legal review (administrative or judicial) is 
provided for under the general legislation on compulsory licenses with regard to decisions and 
decrees authorizing the issuance of such licenses. 
Response: 
General Principal any decision to our Law th e Government use is only for the value of 
royalties. On the other hand, according to the Patent Law no. No. 14 of 2001 in 
Article 83, it is stated that Compulsory license can be revoke d if the owner of the patent 
can be granted this including; 
1) Upon a request of the patent holder, the Directorate general may revoke a decision 
on the grant of a compulsory license as referr ed to in Part Three of this chapter if: 
 the ground that formed the basis for granting the Compulsory License no longer 
pertain; 
 the compulsory licensee has evidently not implemented the compulsory license or 
has not made any appropriate preparatio n for immediate implementation of the 
license; 
 the compulsory licensee is no longer comp lying with other terms and conditions, 
including the obligation to pay royalties st ipulated in the grant of the compulsory 
license. 
2) The revocation as referred to in paragr aph (1) shall be recorded and announced. 
Furthermore, it is a general principle that  any decision issued by the Government 
regarding any administrative decission is subject to judicial review, which can be 
requested to the Administrative State Court. 
4.4 Agriculture, fisheries, and forestry 
4.4.3 Trade Policy instruments 
 Para 4.14 describes that the government introduced new import tariffs for raw materials for 
processed milk products. We would like Indonesia to clarify the rationale for the introduction of 
these new tariffs.  
Response: 
New tariffs whether they are lower or higher than before are used by the government to manage 
trade in goods. 
Follow-up question by Switzerland: 
Could Indonesia please elaborate in more detail on the reasons for the introduction of these new 
tariffs? What is meant by “manage trade in good s” in the Indonesian response to our first 
question? 
Response: 
Indonesia has implemented SVLK (Indonesian Timber Assurance System) by the 
issuance of minister of Forestry Regula tion No. P.38/2009 which then revised by 
No. P.45/2012, which one of the subject matters is all production forest has to be 
certified with AFM sertification. 
By this system, the management of forest resources becomes the responsibility of all 
actors involved in the scheme. These actors are: government to re gulate and facilitate, 
forest concessionaires to practice SFM, in dependent assessment/verification bodies 
(LP&VI) to conduct SFM certification as we ll as surveillance, National Accreditation 
Committee to accredit LP & VI and independent monitoring to monitor the whole 
process run according to the regulation. WT/TPR/M/278/Add.1 
 
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  THE UNITED STATES 
Page 7, paragraph 4:   The Secretariat report notes that Indonesian “authorities consider that 
domestic industrial policy considerations, aimed, inter alia , at developing local industries and 
moving up the value chain, should be balanced with maintaining an open foreign trade and 
investment regime in order to ensure that Indonesia’s external commitments continue to be fully 
respected.”  Please further describe ho w this balance is being achieved.   
 
Response: 
 
Indonesia’s merchandise exports accounted fo r 24% of GDP in 2012,  however this is 
lower than that of its previous review in 2007, where exports accounted for 29% of 
GDP. On the other hand, imports contributi on has remained stable, accounting for 25% 
of GDP. Indonesia’s  economic growth is st able at 6% with a slight decline in 2009 due 
to the economic crisis in US during the review period. Maintained economic growth, 
which was contributed by investment in term s of gross fixed capital formation, became 
the main driver of Indonesia’s economy besides consumption.  
Due to the European economic crisis, Indo nesia’s export deteriorated in 2012 which 
further threatened economic performance. Faced with the current challenges, the government adopted policies intended to impr ove export performance.  Efforts have been 
carried out to diversify the range of  products exported, determine the export 
destinations, and also increase the added value of export products. 
 In order to improve the value added of th e exported products, Indonesia has launched 
policies to develop downstream industries (m oving up the value chain), including inter 
alia policies that are related to the Increa sing Minerals Value-added through Processing 
and Refining. This policy will increa se job opportunities and improve the 
competitiveness of products.  To support th is down-stream policy, the security of raw 
material supply for local industries must  be ensured through domestic market 
obligations.  As a consequence, it may lessen the quantity of raw materials to be exported.  
 
Policies taken in terms of export and impo rt procedures, identification number for 
importers, and designation point of arriva l for several products imported, are not 
intended to act as a trade restriction, but merely for creating added value for 
Indonesia’s export products, enforcing inspec tion to protect domestic consumers from 
dangerous or sub-standard goods.  However, since there is no policy to ban exports of 
raw materials, we conclude that there has been no violation of  open foreign trade 
principles. In addition, foreign companies wh ich need raw materials from Indonesia still 
have opportunities to invest in downstream su bsidiaries in Indonesia in order to fulfill 
the demand of their upstream industries.  
 
Question:  
In its response, Indonesia notes: “Policies taken in terms of export and import procedures, 
identification number for importers, and designation point of arrival for several products imported” are used to “create added value for Indonesia’s export products.”  Please further explain how such 
policies create added value for Indonesia’s export products? 
 
Please also explain how Indonesia’s response that “since there is no policy to ban exports of raw materials, we conclude that there has been no violation of open foreign trade principles,” in light of 
the statement in paragraph 3.78 (page 55) of the Secretariat’s report that states that “Indonesia 
will prohibit mining companies from exporting raw mineral ore products as of 2014”?  
Response: 
There  are a few mistakes in our first answer stating that there is a correlation  between 
import policies and added value of exported products from Indonesia. The truth is that 
the import policies such as import procedur es, identification number for importers and 
designation point of arrival for several prod ucts  are used for monitoring, surveillance 
and data collection purposes on the flow of imported goods and its distribution.  WT/TPR/M/278/Add.1 
 
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  Secretariate report saying that Indonesia w ill prohibit mining companies from exporting 
raw mineral ore products as of 2014 is a cond itional term which either can be occured in 
the  future or cannot be occured in the future. Existing regulation from the Ministry of 
Energy and Mineral Resources cl arifies that there is no ban for export of  raw material. 
Trade and investment policy framework 
 Page 7, paragraph 5:   The Secretariat report states that Indonesia has enacted new laws 
relating to various trade and investment policies over the review period.  In addition to the list in 
the report, Indonesia also recently enacted a new Food Law, and has drafts of a Trade Law and Industry Law.  We request that Indonesia please explain the steps it takes to fully and promptly 
implement Article X of the GATT 1994, Article III of  the GATS, Article 63 of  the TRIPS Agreement, 
and other transparency provisions in the WTO Agreements requiring notification and or publication.  Where does Indonesia publish its laws, regulations, judicial decisions, administrative rulings, and 
other measures of general application pertaining to or affecting trade in goods, services and TRIPS prior to their effective dates?   
Response: 
 
We publish them in our Official State Gazette and other sources such as official websites 
of our ministries or government agencies and, sometimes, through press conferences. 
 
FOLLOW UP QUESTION: 
Please clarify whether there is one central location where all laws, regulations, etc. are available?  
If there is no central location, what types of measures (presidential, governmental, ministerial) are published in the Official State Gazette? 
Response: 
Referring to Law no. 12 Year 2012 concerning  the Establishment of Legislation, the 
notification and publication of the Law, Government Regulation in Lieu of Law, 
Government of Regulation, and Presidential Decree are promulgated in the State Gazette 
of the Republic of Indonesia. The promulgati on and the publication of such regulations 
are conducted by Minister of Justice and Hu man Rights and the publication is conducted 
by its Rule and Regulation Directorate Genera l. In term of Regional Regulations, the 
Regulations are promulgated in the Regional Gazette by Regional Government Secretary 
and the publication is conducted by its lega l bureau. Legislations which are promulgated 
in the State gazette is accessable at any time at www.setneg.go.id; www.setkab.go.id; 
www.ditjenpp.kemkumham.go.i d; and www.bi.go.id.  
 
2. Trade Policy Regime: Framework and Objectives 
2.1 Administration of tr ade and investment policy 
 Page 20, paragraph 2.1:   The Secretariat report states “the Government is legally required to 
offer the public the opportunity to give input into the rule-making process orally or in writing.” 
However, the paragraph goes on to state that “The authorities indicated that consultations are undertaken on an ad hoc basis as issues arise.”    
What efforts is the Government of Indonesia undertaking to ensure that all ministries are fully 
implementing the legally required public consultations procedures and that input received from 
interested parties is taken into account?  
Response: 
 
The Government of Indonesia would remind all ministries that they can be brought 
before the court of law through a lawsuit by the people if they are not given an 
opportunity to give input in a regulation befo re it is enacted. Ou r Law No. 12 Year 2011 
concerning the Formation of Laws and Regula tions provides that the Indonesian people 
have the right to give input into the rule-mak ing process orally or in  writing.       
 WT/TPR/M/278/Add.1 
 
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  US FOLLOW UP QUESTION: 
Indonesia indicates that it provides that “the Indonesian people have the right to give input into 
the rule-making process.”  Please clarify whether this right is open to any interested party or only to Indonesian citizens.  
Response:  
Article 96 of the law No. 12 Year 2011 conc erning the Establishment of Legislation 
states ‘Public is entitled to convey inputs orally and/or in written in Establishment of 
legislation process. The word “public” shall mean i.e. social organi zation, professional 
group, non government organizati on, and indegenous people group.  
Can Indonesia please provide more details on its process for reviewing public comments and 
taking these comments into account prior to the effective dates of its laws, regulations, judicial 
decisions, administrative rulings, and other meas ures of general application pertaining to or 
affecting trade in goods, services and TRIPS?   
Response: 
 
Currently, we do not have a standard proced ure concerning the said process. However, 
in general, the comments are given through a pu blic hearing held by a ministry or other 
government agency before a regulation or other measure comes into effect. The 
comments are then reviewed and considered by the ministry or other government agency concerned during the drafting process of the regulation or other measure.    
 
US FOLLOW UP QUESTION: 
Does Indonesia plan to establish a st andard procedure for this process? 
Response: 
Indonesia has regulated the mechanism of pu blic comments review on the enactment of 
legislation process in the Law No. 12 concer ning the Establishment of Legislation. 
Referring to the Law, Public is entitiled to convey inputs orally and/or in written in 
establishment of legislation through: 
 
a. Public hearing meeting; 
b. Job visits; 
c. Socialisation; 
d. Seminar, workshop, and/or discussion. 
 
2.3  Trade agreements and arrangements 2.3.1  WTO participation 
 
Page 22, paragraph 2.8 : The Secretariat report notes that Indonesia has notifications that are 
outstanding in a number of areas, including agricult ure, import licensing, notification procedures 
for quantitative restrictions, state trading enterprises, and subsidies and countervailing measures, 
as well as services.  Indeed, Indonesia’s last full notification pursuant to its obligations under Article 25 of the SCM Agreement was in 1997.  We also note that Indonesia has not notified its 
pre-shipment inspection requirements as required by the Agreement on Pre-Shipment Inspection.   
 When does Indonesia intend to provide these notifications?   
Response: 
 
Indonesia will notify our preshipment insp ection requirement to WTO as soon as 
possible.  
 WT/TPR/M/278/Add.1 
 
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  US FOLLOW UP QUESTION: 
While we appreciate Indonesia’s response regarding its plans to notify its preshipment inspection 
requirements, we would also seek further information on Indonesia’s plans to make the other outstanding notifications, including agriculture, import licensing, notification procedures for 
quantitative restrictions, state trading enterprises, and subsidies and countervailing measures, as 
well as services.  We again note that Indonesia’s last full notification pursuant to its obligations under Article 25 of the SCM Agreement was in 1997.  When does Indonesia intend to submit 
another full notification of its subsidy programs?  Further, we urge Indonesia to notify its 
preshipment inspection requirements in advance of the next WTO Customs Valuation Committee meeting.   
Response: 
 
Indonesia will notify full notification of subsidy programmes and PSI requirements to 
respective WTO Comm ittee immediately. 
 
2.4  Foreign Investment regime 2.4.2  Negative List 
 
Page 25, paragraph 2.26 : We note that the Secretariat Report states that Indonesian 
“authorities indicated that an amendment is be ing drafted with a view to liberalizing some 
restrictions” in its Negative Investment List. What is the status of this amendment and when does 
Indonesia anticipate it might be available for review? Can Indonesia elaborate on what areas will 
be liberalized for foreign investment? Will Indonesi a be considering both removing sectors from the 
list, as well as liberalizing the foreign capital restrictions? Are there further restrictions on 
investment anticipated? 
Response: 
 
 The amendment of the Negative List is still being finalized. The List will be regularly 
reviewed in every 3-year period based on  the inputs or recommendation from the 
line ministries and other stakeholders. 
 Liberalization for foreign investment is done progressive ly. Inputs from 
stakeholders are welcome. The important spirit is to create a better climate. 
 Considering the domestic situation, foreig n investment restriction to some areas 
need to be removed gradually. However,the need to take into account safety, moral 
religious or environmental impera tives is a must for Indonesia. 
 Certain  sectors (for 100% foreign/ dome stic invesment) remains unchanged, while 
some other sectors  may be opened up. 
 
US FOLLOW UP QUESTION: 
We note that Indonesia’s response indicates that the amendment of the Negative list is still being 
finalized.  Is there a timeframe for the amendment to the negative list? Please explain the process 
for stakeholders to submit input to the line minist ries and confirm whether or not there will be a 
formal request for comments in order to notify stakeholders of the review process?  Can Indonesia further explain what sectors for foreign investment it is considering opening? 
Response: 
The amendment of DNI (Negative Investment Li st)  is under approval of the ministries 
in Indonesia. 
 
3.1.1.1  Registration requirements  
Page 32, paragraph 3.4 :  The Secretariat reports that tw o types of importer registration 
numbers are used, and each importer may only obtain one type.  Please explain Indonesia’s rationale for why importers have to register as either a “producer importer” for the company’s own production or a “general importer” for trading purposes.  Further, please explain if domestic WT/TPR/M/278/Add.1 
 
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  companies are also required to register as either a production company or a sale company?  If so, 
are they only permitted to hold one type of registration?  
Response: 
Our rationale for differentiating between im porter registration numbers for producer 
and for trading purposes is to make our foreign trade policy inline with our domestic 
trade policy especially in the distribution of  goods. Our policy on the distribution of 
goods is that producer  cannot directly se ll their finished products to individual 
consumers but that these have to be sold  through a distributor and/or retailer.  
Our regime is that companies established in Indonesia must have either an industrial 
license for production company or a trading license for a sales company. These companies cannot hold both types of registration simultaneously. 
 
US FOLLOW UP QUESTION: 
Why does Indonesia’s domestic trade policy not permit companies to directly sell finished products 
to individual consumers? Is this required of all domestic companies and if so, what is the 
regulation that requires this? Does this apply to small and medium-sized companies? 
Response: 
Indonesia’s domestic trade policy does not pe rmit producer companies, not all kind of 
companies, to directly sell finished products to individual consumers.  This is aimed to 
create welfare distribution.   Not all of domestic companies, but depe nding on their company’s classification. 
This applies to certain kinds of sm all and medium-sized companies.  
 Page 32, paragraph 3.6 :  The Secretariat report states “A Producer API (API-P) is granted to 
importers importing goods for their own use, such  as capital goods, raw materials, auxiliary 
materials and/or materials to support the production  process.  Trading or transfer of these imports 
is not allowed.”  Why does Indonesia prohibit goods, imported for processing under the API-P 
registration, from being sold or traded?  
Response: 
As we mentioned before, our regime di fferentiates between companies those are 
producers and those that are traders. The said prohibition is necessary to prevent 
company from registering as a pr oducer but acting as a trader. 
 US FOLLOW UP QUESTION: 
Please explain the rationale for not allowing companies to be both a producer and a seller.  What is 
the policy objective that is being achieved? 
Response: 
The policy objective is to create welfare distribution.  
3.1.1.3  Pre-shipment inspection Page 32-33, paragraph 3.8 :  As highlighted in the Secretariat report, we note that Indonesia 
has a long list of goods subject to pre-shipme nt inspection.  Please explain how Indonesia 
determines which goods are subject to pre-shipment inspection requirements.  
Response: 
It is the line ministries that  propose whic h products are to be covered by PSI to the 
Ministry of Trade, with these proposal then being discussed among line ministries. 
 
US FOLLOW UP QUESTION: 
What measures does Indonesia have in place to ensure that any proposed PSI requirements do not 
duplicate other requirements, such as product registration measures? WT/TPR/M/278/Add.1 
 
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  Response: 
Pre shipment inspection is not a registration  measure, but it is rather to ensure the 
conformity between products being imported  and the document enclosed, hence it will 
not duplicate with other requirements. 
 
The Secretariat report also states: “most of these imported goods are subject to import licensing 
requirements.”  Why do these goods require both import licensing and pre-shipment inspection?   
Response: 
 
Because import licensing is only a tool of re quirement to import whereas PSI is a tool to 
make sure that the goods arriving  at port  of destination are same with the imported 
goods listed on the document.   
US FOLLOW UP QUESTION: 
 Please clarify this response.  As PSI requires that inspection occur before shipment, how would PSI 
requirements serve to ensure that a shipment is  verified against documentation after arrival in 
Indonesia?  Does Indonesia implement inspection  requirements for imports in addition to the 
preshipment inspections?    
 
Response: 
To assist the effective implementation of th e import policy therefore the fulfillment of 
obligations import administration needs to  be ensured, and also not to mention to 
assure that goods being imported  are acceptable and suitable. 
The report notes that various goods, including horticultural products, require pre-shipment 
inspection (PSI) by surveyors who have been appr oved by the Indonesian authorities.  Please 
describe the PSI requirements for horticultural pr oducts.  Is the list of approved surveyors 
publically available?  How does an importer/expor ter find out which surveyors are approved by the 
Indonesian authorities?  What is the purpose of and rationale for the inspection? 
Response: 
 Verification is conducted  at the port of loading. The Verification covers data or 
information on (1) country and port of loading; (2) customs classification and 
product description; (3) type and quantity  of product; (4) time of shipment; (5) 
port of destination; (6) marking on the packaging which informs that the 
packaging is susceptible to contain food an d recyclable; (7) health certificate; (8) 
for fresh horticultural products, phytosanitary  certificate; (9) ce rtificate of origin; 
(10) for fresh horticultural products, cove r letter stating that the packaging which 
is used complies with law and regulati on; (11) the attachment of label in 
Indonesian language concerning informatio n of name and quantity of the product, 
name and address of the producer or exporter, and name and address of the 
importer on the product or packaging, this label is not required for certain 
horticultural products. 
 The list of approved surveyors is publically available.  
 They can find out by asking the governme nt officers responsible for administering 
foreign trade in the Ministry of Trade. 
 The purpose is to make sure that th e imported products fully meet the 
requirements and to make sure that the prod ucts that have arrived at the  port of 
destination are identical to those im ported goods listed on the document. WT/TPR/M/278/Add.1 
 
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  US FOLLOW UP QUESTION:  
  It is our understanding that many of these requirements would likely be covered by the 
product registration requirements (e.g. BPOM ’s registration requirements cover label 
compliance reviews, as do Ministry of Agriculture’s horticultural import licensing 
requirements).  Why does Indonesia view it necessary for a third party to inspect compliance for these same elements prior to shipment since they are A) registered prior to 
shipment, and B) inspected upon arrival in Indonesia?   
 We appreciate Indonesia’s confirmation that th e list of approved surveyors is publically 
available, and request that Indonesia indicate wher e this list is published?  Is it available on 
the internet? 
 How does Indonesia intend to consider Codex guidelines in conjunction with its current PSI 
requirements?   
Response: 
Certain imported products shall be treated through conformity assesment (instead of 
PSI) done by a surveyor in loading port in which the cost of it is borned and paid by 
importer in Indonesia. The rationale or the pu rpose of this policy is to assure that the 
imported products are conformed with th e description of goods listed in import 
declaration document. Inspection done by Cu stom Officer is part of custom standard 
procedures (document investigation) whose pu rpose is to decide the amount of duty 
import. 
3.1.1.5  Risk management 
Page 33, paragraph 3.10 :  The Secretariat report explains the process for importers, and makes 
reference to “reputable importers,” “prioritized prominent partner,” and “non-prioritized prominent 
partners.”  Please explain what factors are considered in determining “reputable importers,” “prioritized prominent partner,” and “non-prioritized prominent partner.”  Are companies able to apply for recognition as a “reputable importer,” “prioritized prominent partner,” or “non-prioritized 
prominent partner?  If so, what is the application process? 
 Response: 
 The determination of the Non Prioritized Pr ominent Partner Lane (MITA non prioritas) 
and the Prioritized Prominent Partner Lane (MITA Prioritas) is as a result of a risk 
management derived for the track record of  the importers, type of goods, and the 
compliance of the importers with all the regulations applied.   Every company can propose themselves as Non Prioritized Prominent Partner Lane 
(MITA non prioritas) and Prioritized Prominent Partner Lane (MITA Prioritas) as long as 
they fulfill all the requirements in this regard. 
 US FOLLOW UP QUESTION: 
Where can companies obtain additional information regarding the application process for applying 
to become a Non Prioritized Prominent Partner Lane  (MITA non prioritas) and Prioritized Prominent 
Partner Lane (MITA Prioritas)?  What are the requir ements that must be fulfilled for determination 
as a MITA non prioritas and MITA Prioritas?   
Response: 
The provision of MITA has been covered under  Regulation of  the Director General of 
Customs and Excise No. P-24/BC/2007. The in formation regarding application process 
of MITA can be accssesed on www.beacukai.go.id  
3.1.2  Customs valuation and rules of origin 
Page 34, paragraph 3.13 :  The Secretariat report states that Indonesian “authorities indicated 
that a database of market prices is regularly updated.”  For what purposes does Indonesia use the 
database of market prices?  Does Indonesia use it  to determine customs value?  If so, in what 
circumstances would it be used? 
 WT/TPR/M/278/Add.1 
 
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  Response: 
 
Indonesia customs is using customs value database as a basis reference whether a 
transaction value provided by the im porter is reasonable or not.  
It is also used  as one of the data resou rces for determining customs value based on 
method II (identical goods), method III (s imilar goods), and method VI (fallback). 
 
US FOLLOW UP QUESTION: 
 Indonesia indicates that the customs valuation database is used to determine whether a transaction value provided by the importer is reasonable or not.  
 
 Please confirm that Customs cannot reject the declared value based solely on a difference 
between the declared value and the value in the database.  
 Please further elaborate on how the database prices are used to determine customs value 
using the identical goods, similar goods, and fallback method?   
 How does Indonesia view the use of the database prices in light of the procedures provided 
for in the WTO Custom Valuation Agreement?  
 How does Indonesia determine the prices in the database?   
 
Response: 
 For low risk importer who declares thei r goods, the declared value will be 
acceptable even if it shows significantl y different from the database. The customs 
value will be accepted as transaction value. 
 Database is derived from previous im portation where transaction value was 
accepted. 
 Used as data source for method II, III or VI since it is derived from previous 
importation where transaction value was accepted. 
 Data is derived from customs declaration (previous importation) where the date of 
its BL is no longer than 90 days. 
Page 34, paragraph 3.16:  The Secretariat reported that “authorities noted that the big drop in 
appeals was partly due to the issuance in 2010 of Ministry of Finance guidelines for officers on 
determining the customs value of imported goods.”  Please provide additional detail regarding the 
guidelines that have been issued to customs officers to determine the customs value of imported 
goods.  What is the status of the guidelines, and are the guidelines publically available?    Response: 
 In 2010, Minister of Finance Regulation No.: 160/PMK.04/2010 on Customs Valuation, 
which provides more detail guidance for Cust oms Officer in determining customs value. 
 
The regulation has also been published in th e State Gazette and directly disseminated to 
all stakeholders, and uploaded to the official  website of Directorat e General of Customs 
and Excise (www.beacukai.go.id). 
 
US FOLLOW UP QUESTION:   
In light of the WTO Customs Valuation Agreement,  which provides that Members shall notify the 
Committee of any changes in the administration of customs valuation laws and regulations, when will Indonesia notify Ministry of Finance Re gulation 160/2010 to the WTO Customs Valuation 
Committee?  
 Response: 
Indonesia is at the moment in a process of ev aluating Regulation of  Minister of Finance 
with regard of Customs Valuation and will shor tly notify it as soon as it is finalized. 
3.1.3.4  Temporary changes to customs duties WT/TPR/M/278/Add.1 
 
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  Page 39, paragraph 3.27 :  The Secretariat report states that Indonesia may wave import duties 
temporarily for the production of certain goods bu t that the “imports must: not yet be produced 
domestically; be domestically produced but do  not meet the specification needed; or be 
domestically produced but not in quantities necessary to meet the industry need.”  How does 
Indonesia determine these requirements?  
 
US FOLLOW UP QUESTION: 
There was no initial response to this question. We remain interested in receiving a response.  
Response: 
Import duties is decided by the Minister  of  Finance. Prior to the de cision of the Minister 
of Trade, there is a series of  meeting, co nsultation and discussion conducted by Team 
Tariff from in line ministries.  This said Team  recommends either to waive, to lower or to 
increase the import duties. 
Page 45, paragraph 3.40:  In late December 2012, Indonesia issued Ministry of Trade (MOT) 
Regulation 82 and Ministry of Industry (MOI) Re gulation 108, which imposed new import licensing 
restrictions on mobile technology products such as cell phones, laptops, and tablets.  Under Regulation 82, importers of cell phones, laptops, and tablets can no longer sell directly to retailers 
or consumers, must have at least three years of experience, and must use at least three 
distributors to qualify for a MOT importer license. Please elaborate on when these regulations will 
take effect or whether they will be delayed further. Please also explain the rationale for these 
regulations. Also, why are companies required to use three distributors? 
Response: 
The regulations have been effective as per 1 January 2013. 
The rationale for the said regulations is fo r consumer protection by preventing low 
quality, below standards, and hazardous elec tronic communication devices or gadgets to 
be imported into Indonesia. We view the three distributors requirement is necessary to achieve the objective of 
regulating import of such products.   
 
US FOLLOW UP QUESTION: 
 
Indonesia’s response indicates that the requirement for companies to use three distributors is necessary “to achieve the objective of regulating import” of mobile technology products such as cell phones, laptops and tablets.  Please elaborat e on how Indonesia views such a requirement as 
necessary for this objective?  Does Indonesia also impose the requirement for three distributors in 
other industry sectors?  How does having three distributors differ from having one distributor in achieving this objective for import regulation?  
 
Response: 
The import policy is implemented in accordan ce to secure the aspect of health by 
preventing low quality, below standards,  and hazardous electronic communication 
devices or gadgets to be imported into Indonesia. 
The three distributors’ requirement is necessa ry to achieve the objective of regulating 
import of cell phones, laptops, and tablets. 
 
Page 47, Table 3.9:  In the antidumping investigation involving wheat flour from Turkey, 
Indonesia initiated the investigation in November 2008 and terminated it in August 2012, based on 
the withdrawal of the petition by the petitioner.  In other words, the investigation lasted nearly 
four years.  Can Indonesia please explain the basis for the duration of this investigation in light of Article 5.10 of the ADA to conclude investigations no later than 18 months after initiation? 
Response: 
Committee of Anti Dumping Indonesia (KADI) concluded the anti dumping investigation 
of wheat flour from Turkey pursuant to AD A that is before 18 months. Petitioner 
withdrew the application while the nati onal interest was being discussed. WT/TPR/M/278/Add.1 
 
- 259 - 
 
   
US FOLLOW UP QUESTION: 
Article 5.10 of the antidumping agreement stipulates that, “[i]nvestigations shall, except in special 
circumstances, be concluded within one year, and in no case more than 18 months, after their 
initiation.”  Please confirm that in future antidumping investigations, Indonesia will ensure that the 
final adjudication, including the actual imposition of a measure or termination of the proceeding will be completed within the 18 month deadline specified in Article 5.10.  
Response: 
Article 8.1 and 8.3 of Government Re gulation No. 34 Year 2011 stated that: 
“an investigation for the purpose of imposing  anti-dumping measure starts at the time 
of its public notice. An investigation ends on  the date of the final determination of the 
investigation.” 
In addition, Government Regulation No. 34 Year 2011 also regulates the mechanism and 
the timeline procedure for the decision whet her or not to impose anti-dumping duty.  
 
Page 48, paragraph 3.52:   According to the Secretariat’s Report, Indonesia attributes its 
increase in safeguard actions “to counter the negative effects of trade liberalization.”  Would 
Indonesia please explain the steps it is taking to ensure that safeguard actions are utilized only to 
address imports causing serious injury as set forth in the WTO Agreement on Safeguards and not to address other concerns by industry st emming simply from trade liberalization? 
 
Response: 
 
In its investigation and actions, Indo nesia assures that the aforementioned 
investigation and actions are as required  by the WTO Agreement on Safeguards.  
 US FOLLOW UP QUESTION: 
The United States appreciates Indonesia’s response, but it does not appear to be responsive to the 
question asked.  Given the concern raised in the question that Indonesia is using safeguards to “counter the negative effects of trade liberaliz ation,” please explain the specific steps that 
Indonesia is taking to ensure that safeguard actions are being taken only to address imports 
causing serious injury and not to address other concerns by industry stemming simply from trade 
liberalization?  
Response: 
Indonesia assures that The safeguard actions were taken when  the requirements on the 
WTO Agreement on Safeguards have been fulfilled.  
Page 50, paragraph 3.55 : The Secretariat report indicates that after the draft national standards 
(Standard Nasional Indonesia – SNI) are prepared , the Technical Committees (TC) “may invite 
other stakeholders to provide inputs.”  Please clarify at what stage stakeholders are able to provide input.  Under what circumstances, would the TC not invite stakeholders to provide input?   
Response: 
After a draft national standard is prepared (could be up to several technical meetings) 
there will be a consensus at the TC level. In practice, many TCs have already invited 
stakeholders beside the TC members to give  inputs before the TC consensus but this 
could be limited stakeholders. The stakeholde rs can submit written input or present the 
comments in the technical meeting or consen sus meeting but the decision is under the 
authority of the TC. It is at the consensus meeting that BSN present the standardization 
personnel/QCer to monitor whether all requ irements for consensus are fulfilled. When 
making a decision for consensus the TC does not invite stakeholders. A broader range of stakeholders (nation-wide ) will be invited again during the national 
consultation process (enquiry stage, using website for 2-month period) where 
stakeholders may give written inputs of tech nical/substantial content. The stakeholders 
could join the enquiry process as long as they are registered as the member of MASTAN (Indonesia Standards Society). The member of MASTAN is now reaching almost 4000 
people  from various disciplines (or called as group of interest). After considering inputs 
from the enquiry stage, there comes an e-ba lloting process, a kind of “yes, no or WT/TPR/M/278/Add.1 
 
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  abstain” voting process, again, conducted by  the stakeholders (MASTAN) resulting in a 
Final Draft National Standard to be  endorsed and promulgated by BSN. 
 
US FOLLOW UP QUESTION: 
Is membership in MASTAN open to foreign companies and individuals?  
Response: 
Referring to MASTAN statute, the member of MASTAN shall be Indonesian citizen. 
 
Page 52, paragraph 3.61:  As stated in the Secretariat report , a draft technical specification and 
mandatory SNI for toy safety was raised by th e United States.  The Indonesian toy safety 
standard, SNI 8124:2010 will potentially require redundant and burdensome in-country testing.  
What is the status of the toy standard?  Has it been adopted?  Will Indonesia offer recognition of 
test results from ILAC-accredited labs, as is common international practice, in the toy safety area?  Would Indonesia provide further information on the technical guidance being developed?  
Response: 
 Indonesia is currently in the process of notifying the Indonesia National Standard 
for obligatory toy safety to WTO. In the context of the conformity assessment 
procedure Indonesia would like inform that toy safety regulation is using type 1 
certification. 
Testing of conformity product may be done through: 
 
Domestic production samples are taken fr om lot/batch of domestic products, or 
Imported product samples are taken from the lot of imported products in each 
shipment. 
For information, the toy safety regulation covers 17 HS number and consists of 4 SNI 
and 4 technical specifications of toys. 
 
 Several laboratories would be appointed by the Ministry of Industry to facilitate and 
conduct the testing of the products, and that Indonesia had a marking and 
certification scheme conducted by the Na tional Accreditation Body of Indonesia 
(KAN). In this sense, laboratories would have to sign a mutual recognition agreement and a bilateral agreement with KAN and Indonesia. Goods in conformity 
with SNI specification could be granted a ce rtificate to use the SNI mark. In order to 
minimize and avoid the possibility of illega l goods entering the Indonesian market 
from a wide marine area, imported goods  shall have an SNI marking affixed before 
entering into Indonesia's customs territory. 
 Indonesia has informed the TBT Committee that the authorities were still 
developing the technical guidelines th at would set up the mechanism for the 
Indonesian National Standard (SNI) ma rking and certification. Indonesia was 
currently in the process of finalizing tec hnical guidance of toy standard, which was 
intended to avoid unnecessary obstacles to trade in line with TBT agreement. 
US FOLLOW UP QUESTION: 
Will Indonesia accept ILAC-accredited labs in the country of manufacture in lieu of a separate 
mutual recognition or bilateral agreement?  When  will the technical guidance be ready?  Does 
Indonesia intend to make a draft of the techni cal guidance available for public review and 
comment?  
Response: 
The final draft of the Minister  of Industry Regulation is now being prepared for signing 
by the Minister. In the meantime, the techni cal guidance will be developed further after WT/TPR/M/278/Add.1 
 
- 261 - 
 
  the draft was enacted. In our procedure for a regulation to be effective come into force 
at least 6 months after the promulgation/signe d by the minister. This is to enable all 
affected parties to adjust to comply to the regulation.   
With regard to the conformity assessment procedures, Indonesia is a signatory of 
ILAC/APLAC mutual recognition arrangem ent (MRA) for testing and calibration 
laboratories. Therefore, MRA could possibl y be accepted from other APLAC/ILAC 
signatory countries as commonly practiced inte rnationally. However, since this MRA is 
done by the accreditation body among member  countries and considering the fact that 
not all accreditation body belo ngs to government/regulator then there should be a kind 
of MoU between government/regulator to government/regulator on equal basis. 
3.2.2.2  Export restrictions and licensing 
Page 56, paragraph 3.37, Table 3.13: The Secretariat reports that no rationale is given for the 
export restrictions on rattan products. Please explain Indonesia’s rationale and the requirements 
for the export restriction on rattan products?  
 
Response: 
 
In the framework of rattan, Indonesia considers the sustainability of rattan along with 
the sustainability of forests and the environmen t. It is necessary to have a regulation 
concerning the provision on the export of rattan and rattan products. This intends not 
only to support in keeping the rattan ecosystem  from exinction due to over exploitation 
of natural resources, but also to limit the over  exploitation of the forest regarding the 
aspects of forestry policy   
US FOLLOW UP QUESTION: 
 Indonesia indicates that it restricts the export of rattan products to ensure sustainability of forests 
and the environment.  Does Indonesia also restrict the use of raw rattan and rattan products 
domestically?  Response: 
 Indonesia does not restrict the use of ra w rattan, but Indonesia encourages rattan 
cultivated from industrial forest. When ratta n growing in natural forests is considered 
quite adequate from the aspect of enviro nmental issues then the rattan export ban 
policies could be reviewed. 
3.3.3  State-trading, state-owne d enterprises, and privatization 
3.3.3.1  State-trading 
Page 64, paragraph 3.115 : The Secretariat report notes “The Government is considering 
expanding Perum BULOG's mandate as a buffer agent to include sugar and soybeans.”  Please 
provide an update on the Government’s consideration of this expansion.  What process will 
Indonesia follow in making this decision?  Response: 
 The sugar and soybean buffer stocks managed by Perum BULOG are aimed for controlling domestic price fluctuations. Th e expected quantity will be the annual 
requirements of the Tempe/Tofu Producers Cooperatives, which will be fulfilled through 
buying from domestic production and import ations. Similar to importations performed 
by the private sectors, customs duties will al so be applied for the import of these buffer 
stocks.   
The mandate to Perum BULOG will be extended as soon as th e regulation is officially 
imposed by the concerned Ministries.  
US FOLLOW UP QUESTION: 
We appreciate the information on Indonesia’s plan s to expand the Perum Bulog’s mandate to cover 
sugar and soybeans.  Where does Indonesia publish the annual requirements it may use to 
determine quantities for these new programs?  Would Indonesia determine domestic and imported 
quantities for these programs using some method other than the market?  How does Indonesia WT/TPR/M/278/Add.1 
 
- 262 - 
 
  plan to manage this program in a non-trade distorting manner, within its current WTO 
commitments? 
Response: 
The annual per capita requirements and nati onal production for sugar and soybean are 
published by Central Statistics  Agency. Referring to the annual per capital requirement, 
we estimate total domestic consumption an d national production, and the required 
volume for import for the given year. The mandate given to Perum BULOG will not cover 
a substantial share of the market, thus privat e sectors are still allowed to participate in 
the market. In addition, trade measures, su ch as custom duties, import licenses are 
applied similarly to Perum BULOG and the priv ate sectors. Thus, we expect that this 
program will not distort the market as in the case of rice. 
 
3.3.3.2  State-owned enterprises and privatization Page 65, paragraph 3.118:   The Secretariat report notes that Indonesia has partially divested 
ownership in various industries including cement, telecommunications, mining, energy, 
pharmaceuticals, construction, highways, steel manufacturing, airlines, and banks.  Does Indonesia plan any further privatizations or divestitures in additional sectors? 
 
Response: 
 As aforementioned within the answer in Paragraph 3.114, Page 64, privatization, 
including divestitures, is not the only primary strategy that is considered by the Ministry 
of SOEs. In accordance with Law No. 19/2003 and Government Regulation No. 33/2005 j.o Government Regulation No. 59/2009 about State Owned Enterprise’s privatizations 
procedures, the SOEs that will be privatized should fulfill the gene ral criteria indicated 
below:  
3) SOEs with competitive industrial sectors 
4) SOEs with rapidly obsolescent technology. 
 
In addition, the regulations also state some specific criteria for the SOEs which are 
going to be privatized namely: 
 
5) The SOE doesn’t perform public service obligation; 
6) In need of funding source to support growth; 
7) In need to strengthen capi tal structure/leverage; and 
8) Earns profit at least in two consecutive years for the SOEs which are going to be 
offered initially (IPO). 
 
US FOLLOW UP QUESTION: 
Indonesia indicates that criteria for privatizing SOEs include ensuring that “the SOE doesn’t 
perform public service obligation.”  What definition is used for “public service” in this context?   
Response: 
Public Service Obligation (PSO) is government  obligatory which is implemented by State 
Owned Enterprise (SOE) to provide and to distribute certain good(s) and/or service(s) that  is needed by the peoples. The Govern ment may give special assignment for STE to 
conduct PSO with regard to the intent and purpose of SOEs. If the assignment is not 
financially profitable, the gove rnment should provide compensa tion for the loss of SOEs 
plus the profit margin. 
Loss calculation is done by comparing the cost  of goods sold and selling price set by the 
government, while the calculation of the margin  is set at a percentage and/or a certain 
amount of cost of goods sold.  
Page 65, paragraph 3.119 :  The Secretariat report states: “Each year the Ministry of Trade 
determines the type and amount of imports of alco holic beverage products.”  What is the process 
that the Ministry of Trade follows in making this determination? What factors are considered in 
determining import amounts? WT/TPR/M/278/Add.1 
 
- 263 - 
 
  Response: 
 
To make the determination, the Ministry of Trade hosts a meeting with all of the 
stakeholders related to ask and verify data or information needed for consideration as 
mentioned below. 
To determine them, each year, the Ministry of  Trade considers: the import realization of 
alcoholic beverages in the previous 3 years;  total amount asked by importers in their 
application for the import licenses; and foreca st of the amount of tourists coming to 
Indonesia and the needs of hotel, pub, an d restaurant for alcoholic beverages.  
 US FOLLOW UP QUESTION: 
Does Indonesia also restrict domestic production of alcoholic beverage products?  
Response: 
In order to improve the protection of health , peace, public order against the effects of 
alcohol consumption therefore the domestic pr oduction of alcoholic beverages needs to 
be controlled. The Alcoholic Beverages Produc t for domestic market is regulated by the 
Minister Trade Decree No. 11 Year 2012 conc erning the second ammendment of Trade 
Minister Decree No. 43 Year 2009 concerning the provision of procurement, circulation, 
selling, controlling and monitoring alcoholic beverage. 
Page 70, paragraph 3.139:  The Secretariat’s report indicates that Indonesia issued compulsory 
licenses in 2007 and 2012. What regulations govern the grant of a compulsory license in 
Indonesia?  To what extent do the regulations provide a process for judicial review, or other 
independent review, of a decision to grant a compulsory license?  
Response: 
 
The provisions of Compulsory License and the use of patents by the Government 
(Governement Use) are stipulated in the Patent Law No.14/2001. The provisions of 
Government Use are further elaborated in  the Government Regulation No.27/2004 
concerning the Procedure of Government Use whereas Governmernt Regulation on 
Compulsory License is still in the process of formulation. 
In 2004, 2007 and 2012, Indonesia decide d to issue Government Use for certain 
antiviral and antiretriviral drugs. According to article 12 of the Patent Law, the decision is final and the  patent holder can, if it do es not agree with the amount of compensation, 
file an objection in the form of a la w suit before the Commercial Court.  
 
US FOLLOW UP QUESTION: 
We understand that the Regulation on Compulsory Licensing is in the process of being drafted.  
Will Indonesia seek foreign stakeholder input in the development of this regulation? 
Response: 
In this matter, Indonesia always gives o pportunities to any parties to discuss and 
explore in more detail related to draft re gulation. In each preparation for draft 
regulation, we have stages of  socialization in which that we convey to get input or 
feedback from any parties to be able to finalize the regulations or other measures. 
Page 81, paragraph 4.32: The Secretariat report notes that “the role of manufacturing has 
declined significantly or stagnated in its value added, its share of exports, and its share of employment.”  It appears that the draft Law on Industry includes a number of provisions on how 
to counter this, including localization and technology transfer requirements, foreign ownership 
restrictions, and imposition of tariffs or quotas to protect domestic industries.  What is the status of this bill and will there be an opportunity to comment on it?  
 
US FOLLOW UP QUESTION: 
We note that this question was not answered.  We remain interested in Indonesia’s response. WT/TPR/M/278/Add.1 
 
- 264 - 
 
  Response: 
The Draft Law on Industry is still in process of conclusion. Feedback from stakeholders 
is open, especially when the draft is still under the process of formulation article by 
article.  
II. Questions on the Government Report (WT/TPR/G/278) 
 Page 15, paragraph 5.4 : Please describe the specific measures that Indonesia is implementing 
or considering to “increase value added and expanding value chain for industrial production 
processing. Furthermore, what policy instruments is Indonesia using to strengthen the national economy?  How is Indonesia ensuring that as it promotes development of its domestic market that 
its policies are WTO consistent? 
 Response: 
In line with Indonesia second Medium Term  Development Plan (RPJMN II). Government 
of Indonesia has also initiated Masterplan for Accelerating and Expanding Indonesia 
Economic (MP3EI). Under Indonesia’s 2025 Vision, to be one of the world developed countries, one out of three Indonesia’s goals is to increase the value added and expand 
the value chain for industrial production processes. This will be implemented by 
developing downstream industries especially  in export based raw material commodities 
(mineral and coal. etc). This downstream po licy is one policy instrument to strengthen 
the national economy in order to improve value added of exported products leading to 
the increase in the value of export and trade surplus. Among recent policies taken to increase value added of Indonesian export products are: 
 
 Regulation of Minister of Energy and Mineral Resources No. 11/2012 concerning 
Increasing Minerals Value-added through Proc essing and Refining. This regulation is 
the implementation of Law no. 4 of 2009 concerning mineral and coal mining.  
 Regulation of Minister of Trade No. 29/ M-DAG/PER/5/2012 concerning Provisions of 
Export Restrictions of Mining Products. A ccording to this regulation, exporters of 
metal minerals, non metal-mineral, and rock s must be registered and obtain export 
license for their operation. Furthermore, exports of mining products have to be 
verified prior to the export process. 
 
US FOLLOW UP QUESTION: 
Indonesia indicates that exporters of metal minerals, non-metal-minerals, and rocks much obtain 
an export license.  What factors are considered in issuing the export licenses?  
Response: 
A mining company can be admitted to ex port mineral in raw material until 
December 2013 if the company has made a cl ear statement regarding their capability to 
build a factory/smelter in order to increa se added value of mining products. This 
statement must be submitted to the Ministry  of Mineral and Energy Resources (ESDM) , 
afterward ESDM issues Certific ate of Clean and Clear (CNC) containing statements that 
the mining area and the company are free form legal issues and from overlapping. 
To obtain an export license issued by the Mi nistry of Trade, a company or an exporter 
shall meet following requirements:  
 
a. showing a proof of Certificate of Clean and Clear (CNC) possession  
b. obtaining Recommendation from Director Gene ral for Mineral and Coal, the Ministry of 
Energy and Mineral Resources for ET-Mining certification  
c. certified as Registered Exporter for Mini ng Products (ET-Mining) referring to the 
Recommendation from DG Mineral and Coal  
d. obtain Recommendation from DG Mineral and Coal for Export License  WT/TPR/M/278/Add.1 
 
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After a company or an exporter has obtained  Recommendation from DG Mineral and Coal 
for Export License, they shall submit a requ est to the Ministry of Trade along with the 
Recomemndation. If all requirements is co mpleted, Ministry of Trade will issue the 
export license. 
 
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