G/TRIMS/W/157
24 April 2015
(15-2208)  Page: 1/2
Committee on Trade-Related Investment Measures  Original: English
 
INDONESIA – NEWLY ADOPTED INDUSTRY LAW AND TRADE LAW 
REPLIES TO QUESTIONS FROM CANADA1 
The following communication, dated 15 April 2015, is being circulated at the request of the 
Delegation of Indonesia. 
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We refer to the Canada's questions contained in document G/TRIMS/W/138 dated 13 August 2014, Indonesia hereby wishes to provide the following clarifications:   
Questions 
 Article 22 of the Trade Law stat es that "the promotion of Domestic Product consumption 
[…]  shall be carried out through alignmen t by way of promotion, introduction or 
marketing and setting out a requirement to use Domestic Product".   
1. How will Indonesia ensure that these Laws are consistent with the National 
Treatment obligations of the TRIMS?  
Reply 
 
The Trade Law and the Industry Law are formulated  in the spirit of strengthening the national 
economy, taking into account the Indonesian commitments to the WTO rules. Furthermore, GATT Art. XVIII clearly stipulates the rights of Members in the early stages of development to 
pursue development interests to improve the low standads of living.  
 Obligation to use domestic goods and services will be reserved only for goverment procurement. 
Indonesia is not party to the Government Procurement Agreement in the WTO. 
 Canada is also concerned of the potential far-reaching scope of this provision.  
 
2. Does Indonesia plan to apply this across the Indonesian economy or to limit 
its application to certain sectors or industries?  
Reply 
 The provision applies to all sectors across economy and for all regions in Indonesia.  
Canada is also concerned about the scope of the Trade Law as it pertains to 
import/export restrictions and the control of essential and strategic goods. Canada 
notes that Article 25 permits the Indonesian government to "control the availability of 
essential Goods and/or strategic Goods throug hout the territory of the Unitary State of 
the Republic of Indonesia to be in sufficien t quantity, excellent quality and affordable 
price."   
3. Can Indonesia please elaborate on this and the policy rationale behind this?  
 
                                               
1 G/TRIMS/W/138.   G/TRIMS/W/157 
 
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  Reply 
 
The Government is responsible to provide and ensu re the availability of Basic Goods and Essential 
Goods in sufficient quantity, affordable price and excellent quality for the sake of public welfare, 
development, and national security. 
 
4. In addition, could measures aimed at "c ontrolling" these goods take the form 
the import and export restrictions? 
Reply 
 No, "Controling" means that the Government take s the responsibility and therefore must ensure 
the availability of Basic Goods and Essential Goods in sufficient quantities and affordable price for 
the people. Various measures which may be taken by the Government, as and when necessary, to attain this responsibility will take into account the Indonesian commitment to the WTO rules.     
 
Canada notes that throughout the Trade La w, Indonesia makes reference to "essential 
and strategic goods". Canada also notes that the description of these goods is due to 
follow in the Presidential Regulation.  
 
5. Is Indonesia in a position to provide members of this Committee with possible 
examples of the goods that would fall under these two categories? 
Reply 
 
The elucidation of Article 25 of the Trade Law prov ides definition and examples of the goods that 
fall under these categories. Basic Goods means goods that are exceptionally needed to serve the 
livelihood of the public as well as are supporting element of public welfare such as rice, sugar, 
cooking oil, eggs and milk. Essential Goods means strategic goods which have important role in 
determining the continuity of national development such as fertilizer, cement as well as oil and 
gas.  Canada notes that the Trade Law stipulates th at many provisions are to be articulated 
further in a future Presidential Regulation.  
 
6. Could Indonesia please provide some insight into the timing of this 
implementation legislation? 
Reply 
 
According to Article 121 of the Trade Law, Implemen ting Regulations to this Law; either in the 
form of Government Regulation, Presidential Regulation, or Ministerial Regulation; shall be completed not exceeding 2 (two) years after the promulgation of the Law. The Law was signed, 
promulgated and entered into force on 11 March 2014. 
 
7. To what degree will the business community  be consulted with regards to the 
drafting of the implementing legislation?  
Reply 
 
All stakeholders including business community will always be engaged in the process of drafting 
the implementing regulations. 
 
8. What consultation has occurred already with regards to the Trade Law itself?  
Reply 
 Consultation with stakeholders had been regula rly conducted before the Trade Law was signed.  
 
9. Are English versions of these Laws avai lable publicly? (If not), does Indonesia 
have any plans going forward to make an  English copy of these laws publicly 
available? 
Reply 
 
Official translation of these Laws is not yet available and still in the drafting process. 
 
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