WT/TPR/M/278  
1 August 2013  
(13-4126)  Page: 1/50  
Trade Policy Review Body  
10 and 12 April 2013   
 
 TRADE POLICY REVIEW 
INDONESIA  
RECORD OF THE MEETING 
Chairperson:  H.E. Joakim Reiter (Sweden) 
 
 
Page 
1   INTRODUCTORY REMARK S BY THE CHAI RPERSON ...................................................... 2  
2   OPENING STATEMENT BY THE REPRESENTATIVE OF INDONESIA ................................ 4  
3   STATEMENT BY THE DISCU SSANT ............................................................................... 9  
4   STATEMENTS BY MEMBERS........................................................................................ 12  
5   REPLIES BY THE REPRESENTATIVE OF INDONESIA AND ADDITIONAL 
COMMENTS ..................................................................................................................... 43  
6   CONCLUDING REMARKS BY THE CHAIRPERSON ........................................................ 49  
 
  
Note: Advance written questions by WTO Members and the replies provided by Indonesia are 
reproduced in document WT/TPR/M/278/Add.1 and will be available online at 
http://www.wto.org/english/tr atop_e/tpr_e/tp_rep_e.htm. WT/TPR/M/278 • INDONESIA 
 
- 2 - 
 
  1  INTRODUCTORY REMARKS BY THE CHAIRPERSON 
1.1.  The sixth Trade Policy Review of Indonesia was held on 10 and 12 April 2013. 
The Chairperson H.E. Mr. Joakim Reiter (Sweden) welcomed the delegation of Indonesia headed by 
Mr. Bayu Krisnamurthi, Vice Minister of Trade; the rest of the delegation from Indonesia and 
colleagues from the mission in Geneva; and the di scussant, H.E. Mr. Martin Eyjólfsson (Iceland). 
1.2.  The Chairperson recalled the purpose of th e Trade Policy Reviews and the main elements of 
the procedures for the meeting. The report by Indonesia was contained in document 
WT/TPR/G/278 and that of the WT O Secretariat in WT/TPR/S/278. 
1.3.  Questions by the following delegations had been submitted in writing at least two weeks in 
advance and had been transmitted to the delegation  of Indonesia: Brunei Darussalam on behalf of 
ASEAN; Malaysia; Australia; Norway; Colombia; Pakistan; Canada; United States; Chile; Brazil; 
Korea; Singapore; New Zealand; China; Chinese Taipei; Japan; EU; Hong Kong, China; Thailand; 
and Switzerland. The following delegations su bmitted written questions after the two-week 
deadline: India; Sri Lanka; Turkey; the Do minican Republic; Ecuador; and Uruguay. 
1.4.  Since its previous review in 2007, Indonesia has made steady economic progress with an 
average annual real GDP growth rate of 5.9%. GDP per capita almost doubled and the poverty 
incidence halved from its post-crisis peak. Today’s reports detail how Indonesia has taken steps to 
improve its business environment and initiate reforms, the results of which has been reflected in 
rankings in various global indicators. This recalls one of the main conclusions of the previous trade policy review of 2007 in which Indonesia was commended for its ambitious reform programme, covering, inter alia, infrastructure, investment and the financial sector with a view to improving 
economic growth, increasing employment and reducing poverty.  
1.5.  Another element of continuity between this  and the previous review is that trade remains 
limited as a share of economic output. In addition, Indonesia continues to trade more 
energy-related products than any other product ca tegory on both the import and export sides, 
pointing to continued challenges of trade diversification.   
1.6.  In the 2007 review, the then draft new Investment Law met with considerable interest, 
although questions at the time were raised about the law's implementation, including about the 
transparency and scope of the new negative list of investment restrictions that was under preparation. Since then, as the current review sh ows, there have been significant developments 
with respect to Indonesia's investment regime . The new law together with its comprehensive 
negative list were enacted in 2007 and the negative list was further revised and liberalised in 
2010. Overall, the changes seem to offer greater tr ansparency in terms of the sectors covered and 
a reduction in administrative burdens. On the other hand, ownership limitations, local content 
requirements and certain divestment conditions – seemingly linked to a growing emphasis on 
industrial policy and promoting domestic manufacturing – point to a possible opposite direction of trade and investment policy-making. I am sure this topic, as in 2007, warrant closer scrutiny here 
today.  
1.7.  At the 2007 trade policy review, WTO Members applauded Indonesia for its efforts on 
customs reform and for improvements made to the import system. It is clear from the 2013 reports, that Customs reform remains prominent on the government's agenda with the launch of 
Indonesia's National Single Window, which allows for the online processing of customs 
documentation, applications for licences, and duty payments. On the other hand, import procedures are complicated by registration requirements, port of entry restrictions for several 
products, and more extensive pre-shipment insp ection and import licensing requirements, the 
latter affecting around 20% of tariff lines.  
1.8.  On tariffs, there has also been continuity between the 2007 and 2013 reviews. The tariff has 
remained Indonesia's main trade policy instrument, albeit a relatively small source of tax revenue 
and the simple average MFN applied tariff have  decreased, leaving often a large gap between 
applied and bound duty rates. Interestingly, nearly  half of Indonesia's trade taxes are levied on 
exports, mainly commodities, the main policy objectives being development of downstream 
processing facilities, price stabilization, and reducing the rate of depletion in non-renewable 
resources.  WT/TPR/M/278 • INDONESIA 
 
- 3 - 
 
  1.9.  As reported in 2007, Indonesia was a relatively active user of anti-dumping measures and it 
is worth noting that since then Indonesia has enacted new rules governing anti-dumping, countervailing and safeguard measures. Indonesia's use of safeguard actions has increased significantly in recent years, making it the WTO's second most frequent user of this instrument.  
1.10.  Since the Secretariat report was circulated, Indonesia has submitted notifications to the 
WTO in a number of areas where they were outs tanding. Members would encourage Indonesia to 
continue to keep its notifications up to date. WT/TPR/M/278 • INDONESIA 
 
- 4 - 
 
  2  OPENING STATEMENT BY THE REPRESENTATIVE OF INDONESIA (MR. BAYU 
KRISNAMURTHI) 
2.1.  First of all, let us praise God Almighty for bestowing His blessing to us so that we can gather 
here today in good health. 
2.2.  It is my great honour, on behalf of th e Indonesian Delegation, to express my highest 
appreciation to His Excellency Ambassador Joakim Reiter, Chairman of the Trade Policy Review Body, for chairing this two-day policy review  for Indonesia. My sincere thank goes to 
H.E. Ambassador Martin Eyjólfsson of Iceland for agreeing on taking the task as our discussant 
and spending some of his valuable time to prepare comments based on the two reports before us. I also wish to express our appreciation for the ex cellent work of the WTO Secretariat in preparing 
the Secretariat Report which, together with In donesia’s Government Report, should serve as a 
valuable basis for us to have fruitful discussions today and Friday. 
2.3.  Indonesia has been one of the strongest su pporters of the multilateral trading system under 
the auspices of the WTO. Six years ago the Indonesian Delegation presented our trade policy 
against the background of great economic challenges of the time. And six years down the road, we 
are still trapped in a world of uncer tainties, world of great challenges. 
2.4.  My opening statement will cover three main areas of interest. First, I will highlight recent 
Indonesia’s economic performance. This will be followed by my general response to some issues 
raised by Members with regards to Indonesia’s polic ies. I will then conclude by sharing our views 
on where Indonesia is now, and how Indonesia would contribute to the advancement of regional and world economy. 
2.5.  We are all aware that there have been ma jor changes and developments that took place in 
Indonesia, the region and the world around in the past six years. They certainly affect all of us, and Indonesia is no exception. Some of us continue to struggle to stay afloat, while some others 
perform rather well. On this note, I would like to brief you on how our economy has performed in 
the past four or five years. 
2.6.  Since the last time we did the trade review in 2007, Indonesia’s GDP has grown by an 
average of nearly 6% per annum, and in 2012 al one the economic grew by 6.23%, among the 
highest within the G-20 member countries. During the same period, our GDP per capita had doubled from about US$1,800 to near US$3,800, while the poverty incidence declined from its peak of 27% in 1999 to 12.4% in 2011. It was in  2010 that Indonesia humbly proud to join the 
“one trillion dollar countries” when our GDP based on the Purchasing Power Parity was recorded at 
US$1.03 trillion. The figure has been improving sinc e then, to a record of US$1.2 trillion in 2012. 
2.7.  Amidst continued volatility of food and oil prices, inflation has been kept under control at an 
average 5.9% between 2007 and 2012, with a modest inflation rate of 4.28% being posted in 
2012. Along with it, we experience an increase of FDI into Indonesia. We regained our investment grade rating from Fitch Rating in late 2011 and from Moody’s Rating in early 2012. It took 
14 years for Indonesia to get back to where it stands before the Asian Financial crisis. As of today, 
Fitch Rating scores Indonesia at BBB-, while Moody Rating ranks Indonesia at Baa3 and 
Standard&Poors rates Indonesia at BB+. 
2.8.  FDI into Indonesia in 2011 grew by 20.2% while in 2012 another growth of 26% was 
recorded which further helped the country from a slowdown in exports. Naturally, as the FDI 
increases, so does our imports. The year 2012 marks the first time in decades for Indonesia to experience trade deficit with the world. Total export in 2012 was recorded at US$190 billion while 
import reached US$191.7 billion. Reflective of significant increase in FDI in the past two years, 
73% of import in 2012 consists of raw or supportin g materials, followed by 20% import of capital 
goods. Thus, we can expect that business activities , be they in agriculture, industry or services, 
will accelerate in the coming months and years. 
2.9.  All these take place against the backdrops of  continued efforts by the Government to improve 
business climate in the country. Indonesia’s simple average MFN tariff stands at 7% while trade weighted average tariff is 4.1%. Measures have also been taken to improve further Indonesia’s 
Single Window while work had commenced in 2011 to develop Indonesia’s Trade Repository using WT/TPR/M/278 • INDONESIA 
 
- 5 - 
 
  the Single Window as the platform. At the Ministry of Trade, practically all services to business 
clients have been put under one roof. Other agencies have also considered developing a one-stop service as part of a nation-wide effort to create a business environment which is transparent, simple, clear and consistent. 
2.10.  There should be no surprise that Indonesia performs relatively well at the time when world 
economy faces continued challenges of economic slowdown, recession and crisis. If Indonesia’s domestic market is to be referred to as the bastion of economic resilience of the country, I must 
add that it is a combination of domestic economic potentials and efforts to continuously adapt, 
adjust and calibrate policies against an ever-changing environment which has allowed Indonesia to stay afloat and perform relatively well.  
2.11.  This is the way Indonesia tries to correct th e imperfection in the multilateral trading system. 
This is the path Indonesia chooses to take in addressing the on-the-ground, real-time challenges 
at home, and not to let the economy turning to negative growth which will certainly affect the 
regional economy as we witnessed in 1997 and 1998. Hence, others may see that Indonesia’s 
policy setting is somewhat unpredictable, and this has invited Members to post some questions in 
the context of this Trade Policy Review. My Delegation would like to underscore that the policies we adopt in recent months and years are “living po licies.” They will evolve and be readjusted and 
recalibrated commensurate with the challenges emanating from global trade with which Indonesia 
has been integrated. 
2.12.  My Delegation would like to thank Members of WTO who have submitted their written 
questions. There are 741 questions in total, and th e Government of Indonesia has done its best to 
provide response although I should convey regret fully that not all questions can be addressed at 
this point. If I could classify these questions into main categories, there are five groups of issues on the table. They are general issues, investment, import and export policies, intellectual property 
rights, and issues that can be classified as “other issues.” 
2.13.  Master Plan Program for the Acceleration and Expansion of Indonesia’s Economic 
Development or MP3I has been the main focus fo r the Government of Indonesia to catapult the 
economy into the future. We focus on sustainable ec onomic growth supported by the availability of 
natural and human resources. It is expected that by sticking on the program we can accelerate our economic development and humbly elevate Indonesia as one of the top ten economies in the world 
by 2025 and world’s top six by 2050. I am partic ularly keen on suggesting business and potential 
investors to study in great details the Master Plan and join our efforts to develop further the 
largest economy in Southeast Asia. 
2.14.  Another general issue is about the Special Economic Zones.  It is true that Indonesia has a 
special trade regime in its so-called Free Trade Zones such as Batam, Bintan and Karimun. As we 
need a breakthrough to accelerate economic activities in time of a stiffer competition in the market place, the Special Economic Zones are established to provide fiscal and non-fiscal incentives or 
facilities to business. Currently there are two Special Economic Zones being developed. One of 
these is Sei Mangkei in North Sumatera which is designed to be the base for palm oil industry. The other Special Economic Zones is in Tanjung Lesung, Banten, which will be focusing on tourist development. These two SEZs will be followed by a handful of potential locations to serve investors 
and local businesses with suitable business environment. 
2.15.  On banking, Indonesia is determined to develop a banking sector which is resilient and 
competitive to contribute to national economic development. Among other things, efforts are taken 
to enhance the intermediation function, including facilitating the financial access of lower-income 
groups to formal financial services through the establishment of a National Strategy for Financial Inclusion.  
2.16.  On investment, a quick scan on Indonesian Investment Law tells us that some provisions 
regulate issues that have been administered under  other legislations. However, the Government is 
mindful of not creating duplication or complexity of among different laws and regulations. For this purpose, a one-stop investment services was esta blished at the Investment Coordinating Board to 
assist investors in understanding documentations and procedures to follow. Some features of 
investment regime in Indonesia include the principle of equal treatment, good corporate governance, expropriation, free of transfer, one st op service and corporate social responsibility.  WT/TPR/M/278 • INDONESIA 
 
- 6 - 
 
  2.17.  As a rule of thumb, all business fields are open for investment, except those listed as closed 
or open with certain conditions. The list of business fields that are closed or open with certain conditions is determined by a presidential decree regulating the negative list that shall be reviewed regularly in order to adapt to new dynamics. In formulating the negative list, certain principles 
serve as the basic guidelines; which are simplicity, transparency, legal certainty, compliance with 
international conventions or commitments, and the unity of Indonesia’s territory as a single market.  
2.18.  In general, investment in Indonesia can be classified into three different categories. They 
are, first, sectors open to investment; second, sectors closed to investment; and lastly, sectors open to investment with certain conditions. The conditions referred to include a requirement to partner with local business, to invest in certain locations, and to secure special permits. 
2.19.  Allow me to elaborate a little bit on our investment “One-Stop Services.” It is to simplify 
procedures of getting investment permits that the Law mandated the Government to establish a simple system to issue permits and to reduce a lengthy start-up time for investment. Having the 
system in place, the Investment Coordinating Board BKPM has necessary tools to intensify 
coordination among ministries and regional governments to curb any bureaucratic hurdles. 
2.20.  Agriculture is a primary sector in our econ omy.  Including livestoc k, fishery and forestry, 
agriculture employs more than 40% direct empl oyment, but contribute only 12.51% to our GDP 
(at 2000 constant price), compared to 25.6% co ntribution by the manufacturing sector. With a 
population of more than 240 million to feed, combined with a growing middle class who represents about 40% of the population, it is not an easy task for the Government to establish food security 
for the entire populace. Hence, efforts have been taken to develop a policy-mix of allowing imports 
of agriculture products and at the same time promoting the development of agriculture sector. The challenge, however, is to ensure that agriculture provides numerative incomes to farmers amidst 
increased inflows cheaper or below-standard products.  
2.21.  Some Members also are questioning Indonesia’s import and export policies in recent years. 
As a general principle, the Government applies justifiable reasons to control or prohibit import and 
exports of a few products. These reasons include safety, security, health, environmental, IP 
protection, social, culture and moral hazard reasons. 
2.22.  Policy on the importation of agricultural pr oducts is aimed at fulfilling Indonesia’s domestic 
needs. As there is a huge gap between production  and consumption, the agricultural policy is 
driven towards developing the agricultural sectors which matter the most to the low-income 
farmers and resource-poor producers who represent 90% of farmers and producers of agriculture products. Nonetheless, as mentioned earlier, Indonesia adopts a policy-mix which takes into 
consideration the need to develop domestic agricultural sector but at the same time allowing 
import to satisfy national demand without severely harming domestic producers especially when it comes to dumped or subsidized products. Clearly, current import licensing policy is not intended to 
limit or restrict imports. 
2.23.  On SPS, I wish to share with you that the Indonesia Quarantine Agency had found various 
pest-related diseases alien to Indonesia originating from imported horticultural products. The lack of adequate facilities and human capacities to in spect, control, and execute quarantine treatment 
has forced the Government to opt for a policy of minimizing the entry and further spread of exotic 
organisms in Indonesia. This leads to the closur e of several under-equipped and overloaded ports, 
and the implementation of Certification for Mutual Recognition for Food Safety System. As a 
country with the largest population of Muslims in the world, Indonesia also applies a requirement 
for imported products to observe ‘halal’ practices. 
2.24.  On tariff, concerns were raised on the unc ertainty, or lack of transparency thereof, of 
Indonesia’s applied tariff rates. I can assure you that Indonesia’s tariff rates are available on-line 
including through the Indonesian Single Window, and any changes made to the existing applied rates are still within the boundaries on Indonesia’s tariff bound rates in the WTO. As it stands today, Indonesia’s simple average final bound rates for agriculture is 47% while that of non-
agriculture is 35.6%. WT/TPR/M/278 • INDONESIA 
 
- 7 - 
 
  2.25.  On another front, the Government of Indonesia had enacted laws and regulations on 
Intellectual Property Rights or IPR in line with its international obligations and more importantly in accordance with Indonesia’s own determination to enforce and protect the Intellectual Property R i g h t s  s o  a s  t o  s u p p o r t  t h e  v i s i o n  t o w a r d  a  m o r e  c o m p e t i t i v e  e c o n o m y .  I t  s h o u l d  b e  
acknowledged, however, that enforcing the IP laws  and regulations poses a great challenge to the 
Government who has to put an eye on more than 17,000 islands across the archipelago. Nonetheless, measures were taken to better provide the protection of IPR in the market place, 
including at the borders. 
2.26.  Information Technology Agreement or ITA is yet another area being mentioned by some 
Members. Indonesia is a member of the ITA signed in 1996 in Singapore. Repeated calls were made for Indonesia to join the negotiations to expand the coverage of the ITA. I have to admit 
that my fellow Indonesians are very receivable to the development of information and 
communication technology, with more than 60% of our 240 million populations are very much 
ICT-oriented. But, initial assessment showed that the development of IT industries has not been as 
expected when Indonesia joined the agreemen t in 1996. One indication is that domestic 
contribution to the IT value chains in Indonesia is only 25% of the total value of the final products. Therefore, Indonesia continues studying the merits of joining the negotiations of expanding the 
coverage of ITA, and is not in the position at this juncture to decide. 
2.27.  Lastly, on government procurement, Indonesia is grateful to be accepted as an observer at 
the WTO Committee on Government Procurement. The objective of Indonesia joining discussion as an observer is to deepen our knowledge and understanding on ways to improve our own GP 
system in line with the international best practices. It is not meant to be interpreted that Indonesia 
will join the Committee with a full membership status. 
2.28.  Just to share with you how serious Indonesia is in enhancing our GP system, since 2003 
efforts have been taken to gradually improve our government procurement regime in a more 
systematic way. Further, in 2007-2008, Indonesia participated in the Baseline Indicator Assessment conducted by the OECD, where Indone sia scored 61.59% with regard to compliance 
with international standards. We believe that the scores are much higher today. Looking ahead, 
the Government should ensure that domestic industries are well-prepared to compete with foreign suppliers, and for this reason, Indonesia will not join the Government Procurement Agreement anytime soon. 
2.29.  Looking at the questions and related response, it will be of no surprise if one might see the 
strong correlation between that details and technical policies with Indonesia’s economic performance explained earlier. 
2.30.  I come to the last part of my opening statement. Let me begin by saying that Indonesia is a 
moving picture. It is a country of a constant change, seeking to reach the equilibrium between 
realizing its vision as a nation to develop and enshrine on the one hand, and contributing positively 
to the global community, on the other hand. 
2.31.  Inward, as I described earlier, Indonesia has adopted various policies to ensure that we are 
able to manage our home, keeping the country in tact, especially in time of global economic 
hardship we are facing today. To us, this is a small window available as the multilateral trading 
system we all cherish does not provide the panacea on how to deal with domestic pressures when 
global market is shrinking and other countries either resort to protectionist measures or commit unfair trade. 
2.32.  Outward, Indonesia has continued to enhance its international engagement in many fora. In 
ASEAN, Indonesia continues working closely with other ASEAN Members to bring the vision of 
ASEAN Economic Community closer to reality. To address the need for inclusive growth in ASEAN, 
Indonesia initiated in 2011 the establishment of  the ASEAN Framework for Equitable Economic 
Development as a way to ensure that as the ten ASEAN economies integrate, we are able to close the development gaps amongst and within ASEAN Member States rather than let them widens. 
2.33.  This year Indonesia assumes the chairmansh ip of APEC, and we agreed to advance APEC’s 
work under the main theme of “Resilient Asia-Pacif ic, Engine of the Global Growth.” The basic idea 
underlining this theme is that APEC should be able to contribute more to global economy, and to WT/TPR/M/278 • INDONESIA 
 
- 8 - 
 
  do so, APEC itself should be resilient enough to sustain major economic shocks in the future by 
bringing in SME, youth and women entrepreneur and the vulnerable onto the front page. Hence, priorities will be given to the attainment of th e Bogor Goals, promoting sustainable development 
with equity, and enhancing connectivity. 
2.34.  It is also Indonesia’s utmost interest to see all the substance in the Doha Development 
Agenda be completed sooner than later. Indonesia has a strong faith on the merits of the WTO and DDA negotiations. Judging from the global trade today where protectionist measures are on the 
rise and bilateral, regional and trans-regional FTAs proliferate, there is an urgent need for us to re-
energize the multilateral negotiations and regain confidence in the WTO. After giving much consideration, and in view of contributing posi tively to the conclusion of the negotiations, 
Indonesia is prepared to host the Ninth WTO Ministerial Meeting in December in Bali.  
2.35.  For sure, the success of the Ministerial M eeting does not hinge only on the logistical 
preparations, although I myself will be very happy to see delegates from 159 Members of WTO 
spend their valuable time in Bali. It is what we can deliver in Bali meeting which matters the most. 
To us, the Bali meeting should serve as a breakthrough, a window of opportunity, for all of us to 
confirm that we want a multilateral trading system that works for everybody, be they developed and developing countries or Least-Developed Countries. I believe that we should aim at a small 
Bali package which is balanced in term of accommodating the interests of all Members of WTO. 
2.36.  It is within the spirit of contributing meaningfully to the multilateral trading system that, in 
addition to hosting the Ministerial Meeting later this year, Indonesia is prepared to consider offering a Duty-Free, Quota-Free treatment to the LDCs Members of the WTO to allow them taking 
part in international trade in a more meaningful way. By the same token, Indonesia would like to 
give our utmost commitment and support to facilitate the refinement of the multilateral trading system that work for all. A multilateral trading sy stem that promote both free trade and fair trade. WT/TPR/M/278 • INDONESIA 
 
- 9 - 
 
  3  STATEMENT BY THE DISCUSSANT 
3.1.  I want to begin by welcoming the delegation of Indonesia, headed by Vice Minister of Trade 
Mr. Bayu Krisnamurthi, and thank you for your op ening statement. I would also like to thank 
Indonesia and the Secretariat team for their high-q uality reports. They form a good factual basis 
for our discussions today and on Friday.  
3.2.  I am honoured to take part in the Trade Policy Review of Indonesia and after having read 
about the fascinating country of Indonesia under my preparations I must admit I am looking even 
more forward to the Ministerial Conference in Bali . Let’s hope we will have a successful outcome.  
3.3.  The sizable Indonesian delegation – from 9 ministries - reflects the importance that 
Indonesia attaches to the WTO, this review an d the opinions of other WTO Members. It also 
reflects the complexities of administering a cross-cutting trade agenda, where competencies are 
shared by many ministries. I wish to thank Indonesia for making so many officials available here 
today, forty I believe. This should facilitate a detailed exchange of views and ensure that our open and frank discussions are shared throughout the relevant parts of the Indonesian administration.  
3.4.  Both of you have already provided overviews of the major recent developments in 
Indonesia’s economic policy and trade. To avoid dup lication, and for the sake of brevity, I will limit 
myself to some general observations that reso nated with me as I reviewed the reports.  
3.5.  Firstly I will touch upon Indonesia’s economic development in a broader context. 
3.6.  Secondly I will talk about the interplay between the government's strategy and Indonesia's 
trade regime. 
3.7.  Thirdly, the elements of Indonesia's trade policy.   
The broader context 
3.8.  For starters, I want to put Indonesia’s economic development into a broader perspective. 
What struck me most when researching Indonesia was its vast size and sheer diversity.  
3.9.  Charles de Gaulle once famously asked how anyone could govern a nation that has 
246 different kinds of cheese. I wonder how he wo uld have felt about a nation of more than 
17,000 islands spread out over 2 million square kilometres, with numerous ethnic groups speaking 
over 700 languages.  
3.10.  The complexities seem enormous; but th ey have proven manageable and provide an 
important source of strength for Indonesia.  
3.11.  Looking back, the economic development of Indonesia in the past half a century has waxed 
and waned.  
3.12.  From near economic ruin and hyper-inflatio n in the 1960s, to the oil boom of the 70s, to the 
economic crash of the late nineties 1997-98, an d finally to the relative smooth sailing of the 
present global financial crisis.  
3.13.  Yet the long-term trend is unmistakably positive.  3.14.  The previous speakers have already described impressive developments since the last 
Review. And despite setbacks and challenges, over all, Indonesia has taken meaningful steps to 
adjust and learn from their experiences.   
3.15.  Closer towards the present, I believe the Asian crisis was an important turning point for 
Indonesia. Since then, the country has shown remarkable resilience.  
3.16.  Indonesia has solidified its macroeconomic foundations through a series of important policy 
reforms and improved governance. The numbers speak for themselves. Eight years of more than WT/TPR/M/278 • INDONESIA 
 
- 10 - 
 
  6% growth, increased investment, stable purchasi ng power and the growth of exports of goods 
and services. Poverty and unemplo yment levels have also decreased markedly in the past few 
years (6.5% in 2012), and the debt to GDP ratio of 23.5% in 2012 is the envy of many in this room, especially in my part of the world. All of this has been facilitated by a strengthened 
macroeconomic framework and, importantly for us, a more liberal international trade regime.  
3.17.  This is important because Indonesia is important. Indonesia matters in a systemic way to 
the global trading system. It is the largest economy in South East Asia, it has the 4th largest 
population in the world and it is endowed with abundant natural resources in one of the most 
dynamic and vibrant regions in the world.  
3.18.  Reflecting this, Indonesia has assumed an active (leadership) role in many regional and 
global forums, including the G-20, ASEAN, APEC and not least the WTO - where Indonesia has 
nominated a highly qualified candidate for the post of Director General, and will host the Ministerial 
Conference later this year in Bali. I wish you great success in the busy months ahead.  
Interplay between Government Strategy and Trade Policy 
3.19.  What I found perhaps most interesting when going through the reports was the interplay 
between trade policy, on the one hand, and the ov erarching economic strategy called the Master 
Plan for the Acceleration and Expansion of Indonesia’s Economic Growth, on the other hand. The 
Plan is quite ambitious – to transform Indonesia in to one of the top ten economies in the world by 
2025 – and the scope is nearly all-encompassing. To achieve this, real economic growth must be sustained at between 7-9% per year. 
3.20.  The trade agenda pillar of the broader stra tegy appears to be predicated on three medium 
term trade policy objectives:  
 To increase the export of non-oil products,  
 to strengthen the domestic market and manage the availability of basic products; and  
 to strengthen national distribution channels.   
3.21.  The Secretariat report goes into quite some detail on the measures being applied to achieve 
Indonesia’s objectives, including systemic efforts to reduce constraints on trade, investment and 
production and to streamline procedures at the border. These are welcome developments.  
3.22.  But the report also looks at measures needed to improve overall competitiveness and 
sustain growth, and identifies the main challenges facing the export of non-oil products, in particular the manufacturing sector. Indonesia also recognises that in order to achieve its aims, 
the role of the private sector must be stre ngthened. But there seems to be an underlying 
contradiction between this clearly defined objective and the significant government involvement in the economy.  
3.23.  I think I speak for many Members here toda y when I say there is widespread interest in 
seeing how the gradual implementation of the ‘Plan’ will impact on Indonesia's trade regime. More precisely, what is the role of the private sector within the government led architecture of the Plan? 
It would also be useful to hear Indonesia’s view on how the long term plans for the future, with 
the focus on domestic industrial policy considerations, will be balanced with international – and increasingly regional and bilateral – trade commitments. 
Elements of Trade Regime 
3.24.  The third issue I want to raise today concerns some elements of Indonesia’s trade regime. 
Let’s start with the good news. 
3.25.  Indonesia should be acknowledged for taking decisive measures to improve trade and 
investment policies since the last review. It has enacted important laws and reform measures to 
investments, the SPS regime, export financing, cu stoms procedures, as well as in sectors such as 
agriculture, fisheries, shipping, mining and tourism. The Government has also taken important WT/TPR/M/278 • INDONESIA 
 
- 11 - 
 
  steps in the fight against illegal logging practices and IUU fisheries. Further afield, Indonesia 
continues to strengthen regional ties through AS EAN and is becoming ever more active on the 
bilateral front.  
3.26.  Within the WTO, Indonesia continues to play a constructive role in the DDA negotiations. As 
coordinator of the G-33, it has submitted a proposal on special safeguard measures and speaks 
with clarity on behalf of like-minded countries. I would also mention that its decision to become an observer to the WTO Government Procurement Agreement in 2012 was welcomed and hopefully a 
harbinger of things to come.  
3.27.  But there are also weaknesses in the trade regime that deserve scrutiny. Some of these 
have been raised directly by Members in their advance questions. These include the complexity, lack of transparency and trade-impairing effects of Indonesia's import licensing requirements, 
which have increased since the last review. Other measures - including export restrictions and 
taxes on raw resources and ownership limitations on banks - have recently raised concerns about the direction of trade and investment policy-making.  
3.28.  A number of macroeconomic challenges have also led to a decline in the rate of growth in 
Indonesia’s manufacturing sector. The real appreciation of the rupiah, rising unit labour costs, strong international competition, especially from China, and a tightening of profit margins have all 
made Indonesia’s manufacturing sector less competitive relative to its regional neighbours.  
3.29.  All in all, therefore, it would be interestin g for all of us to hear the authorities' views about 
the challenges raised above. How are they bein g addressed in the broader "Master Plan"? And I 
would also be curious to hear how Indonesia plans to distinguish itself and its economic and trade 
strategy from regional competitors on the global scale?  
3.30.  As a Discussant, I chose to look at Indonesia’s trade policy from a bird’s eye view; to 
explore the interplay between the comprehensive economic strategy and trade; and to raise some 
of the strengths and weaknesses of the current regime. There are certainly many other important 
issues in the trade policy of Indonesia that I did not touch upon in detail but that will certainly be raised by the Members.  
3.31.  Indonesia is a success story by all accounts. We welcome its growing role in the multilateral 
trading system and its positive contribution to regional and global development. On the other hand, Indonesia faces some structural and geographic challenges having to balance legitimate domestic interests with international obligations.  WT/TPR/M/278 • INDONESIA 
 
- 12 - 
 
  4  STATEMENTS BY MEMBERS 
BRUNEI  DARUSSALAM  ON BEHALF  OF ASEAN 
4.1.  Indonesia is a large contributor to ASEAN’s economy making up 15% of total trade in the 
region and representing 40% of ASEAN’s GDP an d population. Therefore, we value Indonesia’s 
significant role in driving ASEAN’s economic growth and trade.    
4.2.  ASEAN notes the strong economic performanc e of Indonesia during the review period, where 
the average annual real GDP growth rate was at  an impressive 5.9%, GDP per capita almost 
doubling, and the drastic reduction of poverty levels. Indonesia’s ranking in various global 
indicators for its business environment have also improved, mainly due to the recent progressive legal and institutional changes in their foreign investment regime, the reduction of restrictive requirements and the increase in transparency. 
4.3.  In a regional context, together with ASEAN partners, Indonesia has played a prominent role 
in continuing and actively working towards ac hieving an ASEAN Community by 2015 in all the 
three ASEAN pillars of political and security cooper ation, socio-cultural cooperation, and economic 
cooperation. Under the economic pillar, the ASEAN Economic Community has been progressively 
strengthened, with the entry into force of the ASEAN Trade in Goods Agreement (ATIGA) in 2010 and the ASEAN Comprehensive Investment Agreement (ACIA) in March 2012. 
4.4.  Under ASEAN’s Single Window programme, Indonesia is in the forefront among ASEAN 
members in implementing her National Single Window, where we witnessed better facilitation of customs documentation, licences and duty payments. ASEAN encourages Indonesia to keep up with these impressive efforts and hopes that Indonesia will progressively resolve some of the 
outstanding import procedure issues in the WTO. 
4.5.  ASEAN would also like to commend Indonesia’s Finance Ministry on the conclusion of their 
tariff harmonization programme in 2010, where they have successfully lowered Indonesia’s 
average MFN tariff from 9.5% to 7.8%. ASEAN supports Indonesia’s efforts in matters regarding 
tariff rates, including the narrowing of gaps between the bound and applied rates.  
4.6.  For 2013, Indonesia has shown exceptional le adership and contribution to the multilateral 
trade system by hosting the APEC Summit and its related meetings as well as the Ninth WTO 
Ministerial Conference in December, for both of which ASEAN wishes Indonesia great success. 
4.7.  ASEAN would particularly like to thank Ambassador Triyono Wibowo and Ambassador Syafri 
Adnan Baharuddin and the Indonesian team for their diligent efforts and constructive engagement 
with all delegations, especially with ASEAN Members, here in Geneva. 
4.8.  We congratulate Indonesia on its econom ic progress it has experienced over the review 
period; however, as noted by the Secretariat’s report, some policy measures may impact the 
sustainability of that growth. Some of us in ASEAN have submitted written questions to the 
Indonesian delegation to clarify individual po ints on these and other issues. We value the 
opportunity to engage in this dialogue with Indonesia and would like to thank them in advance for 
their written responses. On behalf of ASEAN co untries, we wish Indonesia every success in their 
Sixth Trade Policy Review. 
MALAYSIA 4.9.  We are pleased to be here today to participate in the Trade Policy Review of one of our own 
A S E A N  m e m b e r .  W e  a r e  h a p p y  t o  n o t e  t h e  m a n y  p o s i t i v e  n e w s  o n  I n d o n e s i a  a s  s t a t e d  i n  t h e  
Secretariat Report. Among them, are the steady economic progress with an average annual real GDP growth rate of 5.9%, GDP per capita almost doubling and the decline of poverty from 24% to 
12.4% in 2011. 
4.10.  Furthermore, simple average MFN tariff has been reduced from 9.5% in 2006 to 7.8% in 
2012. Additionally, the Secretariat Report noted the launch of Indonesia's National Single Window 
and improvements in transparency in government  procurement. We congratulate Indonesia for 
these achievements. WT/TPR/M/278 • INDONESIA 
 
- 13 - 
 
  4.11.  Malaysia's trade with Indonesia incr eased by 5% to US$19 billion in 2012; from 
US$18.3 billion in 2011. In 2012, Malaysia's ex ports to Indonesia were US$839 billion while 
imports totalled US$10.1 dollars. 
4.12.  Investment cross-flows between our tw o countries are encouraging. Between 2006 and 
2011, Indonesian investments in Malaysia amounted to US$805.90 million, in sectors such as 
manufacturing, hotels, golf-courses, restaurants and other services sectors. 
4.13.  Meanwhile, in 2012, Malaysia's investments in Indonesia amounted to US$529.6 million, 
positioning Malaysia as the 11th largest investor in Indonesia; and Malaysia as the 2nd largest 
investors in Indonesia within ASEAN. 
4.14.  Looking to the future, the leaders of both  our countries have set a target of achieving 
US$30 billion of bilateral trade between our two countries by 2015. This is particularly so with 
ASEAN deeper integration in 2015 with the ASEAN Economic Community comes into being. 
4.15.  Bearing this in mind, more effort would be put in to solve issues which inhibit trade and we 
will continue to engage bilaterally, regionally and multilaterally, in order to resolve these issues. 
4.16.  Because of our shared cultural heritage, relations between Indonesia and Malaysia are close 
and continue to deepen. At the same time, it cannot be denied that bilateral issues and problems will emerge from time-to-time, even among the best of friends. We believe however, that 
regardless of problems, the people-to-people relationship between our countries is still very strong 
and that we continue to be mutually supportive and grow in all aspects as ASEAN. 
AUSTRALIA 4.17.  Australia has a strong and mutually beneficial trade relationship with Indonesia. Two-way 
trade in goods and services rose 8.3% over the course of 2011-12 fiscal year to reach 
US$14.9 billion. The strength of this relationsh ip is underpinned by a long history of close 
co-operation. Australian Minister for Trade, Dr. Emerson, met Indonesian Trade Minister Wirjawan 
in Canberra for the tenth Trade Ministers' Meeting in October last year, and Australia welcomed the 
entry into force of the ASEAN-Australia-New Zealand Free Trade Agreement for Indonesia in January last year. 
4.18.  Indonesia has made commendable progress in consolidating democratic reforms. This, 
together with sound macroeconomic management and strong underlying economic fundamentals, saw Indonesia through the worst of the Global Financial Crisis. And Indonesia looks to secure its future through infrastructure investment under the Government's Master Plan for the Acceleration 
and Expansion of Indonesia's Economy to facilitate growth in its domestic economy and enhanced 
engagement with the international community. 
4.19.  While trade flows between us are good, there is considerable potential to increase trade and 
investment between Australia and Indonesia, particularly given the proximity, size and 
complementary nature of our economies. However, more needs to be done to address regulatory 
uncertainty and to facilitate trade and investment. To this end, our Leaders voiced their strong 
support of the Indonesia-Australia Comprehensive Economic Partnership Agreement negotiations, 
the first round of which concluded in March 2013 in Jakarta. The Indonesia-Australia Comprehensive Economic Partnership Agreement has the potential to unlock significant opportunities for further genuine cross-border partnership and has already attracted strong 
endorsement from the business communities on both sides. 
4.20.  We acknowledge that our trade and investment relationship with Indonesia has faced 
challenges in recent years and we have registered our concern about these challenges with 
Indonesia. Australian agriculture and horticulture trade, as well as the services and resources 
sectors, have been adversely affected. We note that a range of Indonesian measures have also 
had negative consequences for Indonesian consumers and contributed to inflationary pressures. 
We want to continue to work with Indonesia to address these challenges. 
4.21.  2013 is a critical year for advancing the global trade agenda, culminating in Indonesia's 
hosting of the 9
th World Trade Organization Ministerial Meeting. We are working closely with WT/TPR/M/278 • INDONESIA 
 
- 14 - 
 
  Indonesia both as MC9 host and APEC chair to de fine a credible and forward-looking package of 
outcomes for MC9.We believe we share Indonesia's view that the outcomes should include a trade 
facilitation agreement, as well as initiatives on agriculture and development. 
4.22.  In this context, Australia notes Indonesia ha s indicated an intention to address food security 
issues in 2013 in APEC at the WTO. Australia welcomes Indonesia's interest, and looks forward to 
working with Indonesia in highlighting how sound trade policies can contribute to enhanced food security for all countries. 
4.23.  In the longer term, we also look forward to working with Indonesia in the Regional 
Comprehensive Economic Partnership negotiations, involving ASEAN and its six FTA partners. As Australia prepares to host the G-20 in 2014, we look forward to working together with Indonesia as G-20 partners. 
NORWAY 
4.24.  Indonesia is the world's fourth most populous nation and a significant player in the WTO. 
W e  h a v e  s e e n  a n  i m p r e s s i v e  e c o n o m i c  p r o g r e ss and growth for Indonesia, on average 6% 
annually in recent years. Furthermore, GDP per capita has almost doubled during these years. 
4.25.  However, we have seen a number of developments or measures that raise concern about 
Indonesian trade policy, including the application of export restrictions and taxes on raw 
resources, tighter import licensing requirements, point of entry restrictions on imports, and trade 
remedy measures. 
4.26.  Indonesia has introduced export licensing, prohibitions and restrictions to promote the 
domestic supply of essential products and to promote higher value-added downstream industries. 
We have further noted plans to prohibit mining companies from exporting mineral ore products 
and to require companies concerned to undertake refining activities onshore. Norway would be 
concerned by the introduction of such export restrictions. 
4.27.  A substantial share (around 20%) of Indonesia's tariff lines are affected by import licensing 
requirements, which have been expanded since Indonesia's previous trade policy review. Like 
other Members, we are alarmed by these requirements and question to the WTO justification of 
applying import licensing requirements as a mean to protect domestic production. 
4.28.  We also register with considerable unease the regularity of Indonesia's use of trade remedy 
measures. Indonesia is a frequent user of both safeguard and anti-dumping measures. As of November 2012, Indonesia had 18 definitive anti-d umping measures in force, and is one of the 
most frequent initiators of safeguards investigations and actions in recent years. 
4.29.  95% of Indonesia's tariff lines are bound. Average bound rates, however, exceed the 
average applied rate by 37%, thus reducing the pred ictability of applied tariffs both in the short 
and the long run. In January last year, Indonesia raised tariffs to 5% on a number of lines that 
were previously duty free. We are uneasy about the signals which this raise of tariffs sends. Specifically, the increased tariff for fertilizers is  a concern to Norwegian exporters. Furthermore, 
our understanding is that Indonesia subsidizes domestic production of fertilizer products, and that 
Indonesia has increased this subsidy substantially. 
4.30.  On a more positive note, Norway fully concurs with Indonesia's view regarding the primacy 
of the multilateral trading system. We entirely sh are Indonesia's view of the significance of the 
multilateral trading system and the resulting benefits to Members. 
4.31.  As a supplement to the WTO, Norway, together with other EFTA states, pursue an FTA with 
Indonesia, which we hope to conclude in the fo reseeable future, to the benefit of all parties. 
4.32.  We praise Indonesia for its role and contributions during the DDA negotiations. We 
recognize the valuable contribution and strong le adership taken by Indonesia by hosting the next 
Ministerial Conference in Bali in December, which we expect to be conducive to the work of the 
WTO. WT/TPR/M/278 • INDONESIA 
 
- 15 - 
 
  COLOMBIA 
4.33.  The Secretariat report states that, during the period under review: 4.34.  Indonesia has been applying a series of macroeconomic policies that have enabled it to 
achieve average growth rates of 5.5%; to almost double per capita GDP; to reduce the incidence 
of poverty from 24% to 12.4%; to bring inflation down to single-digit levels; to double its 
international reserves, and to bring about a su bstantial reduction in government debt as a 
percentage of GDP. These factors placed Indonesia in a better position to confront the 2008 crisis 
than other countries in the region. 
4.35.  However, the contribution of internatio nal trade to these surprising economic results 
continues to be a modest one, as the share of exports in GDP is between 21% and 26%, and that 
of imports between 15% and 18%. Fuels are the main  driver of trade, followed by commodities. 
4.36.  The manufacturing sector has been losing  ground in terms of its share of GDP, while 
commodities and services have driven the GDP gr owth results recently recorded in Indonesia. 
4.37.  In the matter of Indonesia's trade policy , the Secretariat report highlights a number of 
significant advances: 
 Introduction of major legislative and institutional changes in the foreign investment regime, 
 such as the elimination of the 30-year limit on foreign investment permits, the non-
 imposition of barriers to repatriation of capital and access to international arbitration with 
 respect to investor-State disputes. 
 Improvement of transparency in government  procurement with the introduction of 
 mandatory e procurement for public tenders. 
 Customs reform, which has entailed changes in cluding the launch, in 2007, of the National 
 Single Window, whereby customs documentation, applications for licences and duty  payments can be processed online. 
4.38.  Despite these and other advances, there are still areas of concern for investors, Indonesia's 
trading partners and WTO Members: 
 Although the country continues to be a major world supplier of mining products, rules are 
 being applied that require mining companies to  process ore in Indonesia before shipping it 
 abroad. 
 New export taxes on certain products have been  introduced. Furthermore, it is noted that 
 food safety and SPS regulations are now stricter. 
 Since the previous review, there has been an increase in the application of import licensing 
 requirements, which currently cover some 20% of tariff lines. 
4.39.  In this connection, although the adoption of measures is based on valid domestic policy 
considerations, it is essential that they be compatible and consistent with Indonesia's international 
commitments. 
4.40.  In conclusion, we wish to emphasize that Indonesia's continued progress on the path of 
growth will give rise to various challenges, such as: closing the development gap between the 
country's regions; diversifying sources of growth; and developing transport, communication and public service infrastructure. 
4.41.  We are confident that Indonesia can continue  on the path of growth of recent years, and 
achieve the objective set in its Master Plan for the Acceleration and Expansion of Economic 
Development, namely to transform the country into a developed economy by 2025, on the basis of equity and social inclusion. WT/TPR/M/278 • INDONESIA 
 
- 16 - 
 
  PAKISTAN 
4.42.  Indonesia has made remarkable progress du ring the period under review. Its current GDP 
doubled from US$432 billion in 2008 to US$846 billion in 2011. The poverty incidence also halved from 24% to 12.4% in 2011. 5.5% economic growth rate in 2011 was the highest in 14 years. 
Current account has generally remained in surplus since 1998 which has helped to provide a 
source of external financing and a four-fold increase in foreign reserves over the past decade. 
4.43.  Indonesia's strong recent GDP performanc e has been driven by services and commodities. 
In terms of agricultural output, Indonesia is the world's largest producer of crude palm oil and the 
second largest producer of rubber, and cocoa be ans. However, the share of manufactured exports 
has declined. The resilience of Indonesia's financial system contributed to the stability of the banking sector during the global crisis. Indonesia's telecommunications market has continued to 
expand and is attracting high levels of FDI due to rapid growth and long-term potential of 
Indonesia's large domestic consumer base, its vast natural resources, and its relatively low cost production base. 
4.44.  Other positive improvements include: so lid macroeconomic indicators; efficiency of the 
financial sector; better procedures for registering and licensing businesses; an enhanced climate for FDI through improvements to laws regulating investor protection; reductions in corporate 
income; measures to speed up property registration and building permit applications; introduction 
of bankruptcy reforms; the launch of a single window service at several of Indonesia's main seaports; and the successful establishment of institutions and development of initiatives to curb corruption. 
4.45.  However, a number of measures, including ex port restrictions and taxes on raw resources, 
tighter import licensing requirements, point of entry restrictions on imports, ownership limitations on banks and certain divestment requirements for foreign mining companies, have recently raised 
concerns about the direction of trade and investment policy-making. Around 20% of Indonesia's 
tariff lines are affected by import licensing requirements. Concerns have been raised by WTO Members with regard to the complexity, lack of  transparency and trade-impairing effects of 
Indonesia's import licensing requirements. 
4.46.  The rates of import duties have fallen in Indonesia, conferring benefits on consumers as well 
as on firms relying on imported intermediate inputs. It has reduced simple average MFN tariff from 9.5% in 2006 to 7.8% in 2012. However, the difference between average applied and bound rates 
remains much higher for agricultural products (a t 9.5% and 47.1% respectively) reflecting a large 
binding overhang. Tariff preferences offered by Indonesia through bilateral and ASEAN FTAs have 
resulted in significant tariff reductions, ranging from 0.8% to 5.9%, thus widening the gap with its 
MFN tariff rate. 
4.47.  Indonesia has been an important trading partner of Pakistan. Pakistan's bilateral trade with 
Indonesia has increased from US$645.3 million in 2004-05 to US$1378.4 million in 2011-12, with 
the trade balance in favour of Indonesia. A Comprehensive Economic Partnership Agreement 
(CEPA) was signed in 2005 and in 2011; both count ries successfully concluded the negotiations for 
a PTA. We hope that the agreement will be put into operation soon. Both countries also aim to conclude an FTA soon which will help further strengthening of trade between the two countries. 
CANADA 
4.48.  Canada commends Indonesia for its strong overall economic performance in recent years, 
as outlined by the Vice-Minister. Indeed, Indonesia is one of the fastest growing economies in 
Southeast Asia. As the discussant highlighted, conservative management of public finances, 
political stability, strong domestic demand and lo w export dependence have all served Indonesia 
well. We all could learn from its success at reducing its public debt by nearly 20%.  
4.49.  But since the last Review, it appears that  Indonesia has also pursued a number of policies 
that call into question its support for open markets and international trade, and these measures run counter to its goal of poverty alleviation. At a minimum, Indonesia’s growth is less than it could achieve as a result. The Vice-Minister emphasized the ambitious government reform 
program that aims to transform Indonesia into a developed country by 2025. Yet we have to WT/TPR/M/278 • INDONESIA 
 
- 17 - 
 
  contrast its words with a number of its actions. Allow me to highlight five areas that are holding 
Indonesia back. 
4.50.  First, Indonesia’s growth requires a favourable environment for business. However, 
Canadian companies continue to report that the business environment is particularly challenging. 
Regulatory requirements are complex, government  approval processes are slow, and there seems 
to be a lack of coordination among the many levels of government. For Indonesia to achieve its ambitious growth objectives, it will have to take steps to improve this environment. 
4.51.  Second, for agriculture and agri-food products, Indonesia has adopted the strategic 
agricultural development goal of achieving sustainable self-sufficiency, increasing food diversification, and improving the welfare of Indonesian farmers. It is our view that food security is not the same as food self-sufficiency. Strengthen ing the capacity of farmers to adapt to both 
domestic and international markets is important to a sustainable agricultural sector. But open 
trade and access to reliable sources of agricultural and agri-food products is an important component in achieving food security, and in our view, Indonesia needs to consider seriously the 
contribution that open markets can make to the ac hievement of its agricultural development goals. 
4.52.  Running against this is Indonesia’s discretionary import permit quota system for certain 
agriculture products, particularly livestock products, which jeopardize the cooperation that has 
otherwise led to growing and mutually beneficial bilateral trade in this sector. We have repeatedly 
raised these concerns in multiple WTO fora and again urge Indonesia to bring the import regulations in question into conformity with WTO rules. 
4.53.  Third, contrary to the Vice-Minister’s assurances, the border measures and trade remedy 
that Indonesia has also recently adopted have the effect of restricting trade in general, in what 
appears to be an effort to promote import subs titution. As mentioned by others, this includes 
import licensing requirements, pre-shipment contro l and inspection requirements, and restrictions 
on exports. These worrisome developments may not only risk damage Indonesia’s economy but 
also undermine the multilateral trading system. 
4.54.  With respect to trade remedies, as no ted both by the Secretariat and Norway, the 
substantial increase in Indonesia's use of safeguard measures has made it one of the most 
frequent initiators of investigations and resulting actions. Safeguards are unique among trade remedies measures in that they target fairly traded imports. Indonesia should be especially diligent in following the established rules governing their use.  
4.55.  Fourth, for investment, Indonesia is an im portant producer and exporter of industrial raw 
materials, but this area also presents many challenges for foreign investors. The adoption of the Mining Law of 2009 and mining regulations in 2012, which seem to impose a new mandatory 
divestment obligation that make it difficult for fo reign junior mining companies to raise funds to 
continue exploration work. So, despite its wealth of natural resources, Indonesia is missing out on important opportunities to develop its own mining projects that would create jobs for Indonesians 
and bring benefits to its own economy. We are pl eased to be negotiating with Indonesia a Foreign 
Investment Promotion and Protection Agreement (or FIPA). While much remains to be done, it is in Indonesia’s own interest to facilitate this foreign investment. 
4.56.  Finally, returning to the business environment, Indonesia has recently taken a variety of 
measures to address corruption and reduce its devastating effects on its economy. We applaud 
these measures, but cannot help but note that Indonesia still ranks 128 out of 185 economies in the most recent World Bank’s Ease of Doing Business survey, and places 118th out of 176 in 
Transparency International’s Corruption Perceptions Index. We therefore welcome Indonesia’s 
continuing efforts and increased determination.  
4.57.  Canada expects the discussions on the economic  policies of the Republic of Indonesia to be 
highly fruitful. We have thus prepared a set of questions and will attentively await the replies of 
the Republic of Indonesia. Finally, Canada wishes  the delegation every possible success in fulfilling 
its task and would like to reiterate that it appreciates being given the opportunity to participate in this review. WT/TPR/M/278 • INDONESIA 
 
- 18 - 
 
  UNITED  STATES 
4.58.  Indonesia is the world's 17th largest economy and the largest in Southeast Asia. Indonesia 
enjoyed robust economic growth over the past five  years, with an average annual GDP growth rate 
of 5.9% from 2007 to 2011. As the Government of Indonesia's report notes, Indonesia's economy 
was among the top worldwide performers, with a 4.6%  GDP growth rate, during the difficult global 
conditions of 2009. Goods exports reached almost US$204 billion in 2011, double the US$101 billion in 2006. 
4.59.  The United States-Indonesia trade and investment picture demonstrates the importance of 
our bilateral commercial relationship. The United States and Indonesia traded US$26 billion in total two way goods trade last year. Our most recent data shows that in 2011, bilateral trade in services totalled US$2.1 billion and U.S. foreign direct investment (FDI) in Indonesia was US$11.6 billion. 
We are committed to further strengthening our bilateral relationship through our Trade and 
Investment Framework Agreement, or TIFA, which we signed in 1996. As TIFA partners, we are focusing on expanding trade in agriculture and non-agricultural goods, investment and services. 
4.60.  Five years ago, during Indonesia's last Trade Policy Review, the United States commended 
the Indonesian government for pursuing a campaign of trade reform and liberalization. We were encouraged by the steps Indonesia had taken in th e years after the Asian financial crisis to open 
its economy. Those steps contributed to Indonesia' s strong economic growth over the last five 
years, as Indonesia has benefited greatly from its participation in the world economy. However, in the last couple of years, it appears that the fo rward momentum of liberali zation that had created 
so much hope for Indonesia has been replaced by economic nationalism and protectionism. 
Indonesia's report highlights that it is adopting policies designed to promote domestic production, 
move the Indonesian economy up the value chain to a higher level of development, and achieve agriculture self-sufficiency. While these objectives are understandable, we have concerns about 
the import substitution and restrictive market access policies that Indonesia is using to achieve 
them. 
4.61.  Indonesia has introduced and implemented a wide array of new trade and investment 
restrictions since its last TPR. These include import licensing requirements, trading rights 
limitations, pre-shipment inspection requirements, foreign equity restrictions, local content and domestic manufacturing requirements, and export restrictions, including taxes and prohibitions. We are also highly concerned about Indonesia's frequent use of safeguard investigations that do 
not appear to meet a number of the requirem ents of the WTO Agreement on Safeguards. In 
addition, we are monitoring troubling developments related to the new Law on Food, as well as the draft Trade and Industry Laws. 
4.62.  We have conveyed our continuing and deepening concerns about these trade policy trends 
in Indonesia to the Indonesian government to lit tle effect. In the face of the growing concerns 
expressed by its trading partners, Indonesia continues to restrict access to more and more sectors 
of its market by making its regulations even more complicated, disruptive, trade restrictive, and 
expansive, as they affect more and more sectors of the economy. We are troubled by these measures that appear to be inconsistent with Indonesia's WTO commitments. For instance, Indonesia's trade-restrictive measures applied to horticultural products, animals, and animal 
products have created a complex web of import licensing requirements that, along with quotas, 
have the effect of unfairly restricting U.S. and ot her foreign exports. Despite our repeated efforts 
to engage bilaterally in the WTO on these issues, our concerns have not been addressed and, as a 
result, we turned to the formal WTO dispute settlement proceedings earlier this year to find a 
solution. We do not turn to this mechanism lightly. Litigation is an action of last resort. We remain open to finding a solution that will allow us to focus our attention on improving our trade 
relationship. 
4.63.  Indonesia is a market of huge potential, with an economy of 240 million people and more 
than 60 million low-income Indonesian workers projected to join the middle class in the coming decade, significantly increasing already strong co nsumer demand. As a leading developing country, 
Indonesia is well positioned to reap the benefits of further trade liberalization. 
4.64.  Indonesia has sought a larger leadership role on the international stage, as chair of APEC 
and host of the WTO Ministerial in Bali this year. The United States looks forward to working with WT/TPR/M/278 • INDONESIA 
 
- 19 - 
 
  Indonesia and other WTO Members on ensuring successful outcomes for these meetings. But 
Indonesia's policies to restrict market access are not in keeping with those of a country seeking to take a global leadership role on trade. 
4.65.  We have submitted a number of specific questions on these and other issues. The United 
States appreciates Indonesia's responses to our written questions, which we are carefully 
reviewing. We look forward to discussing furthe r Indonesia's trade policy regime, both on those 
issues where we are already cooperating as well as on issues that pose challenges to our trading 
relationship. We remain committed to working with Indonesia and our other WTO partners to 
strengthen and build on the WTO's rules-based foundation. 
CHILE 4.66.  Chile's bilateral relations with Indonesia have poetic overtones. Pablo Neruda, one of our 
most distinguished Nobel prize winners, began writing "Residencia en la Tierra", one of his most 
outstanding books of poems, in Jakarta. Since 1965, our two countries have enjoyed excellent bilateral relations and have concluded agreements, most notably in the fields of economic and 
technical cooperation, fisheries and telecommunications. 
4.67.  In the multilateral sphere, we support a dynamic role in the Pacific basin and promote 
connections aimed at political, economic, cultural and business integration in the region, making 
particular use of the framework offered by APEC and the Forum for East Asia Latin America 
Cooperation (FEALAC). 
4.68.  It should indeed be remembered that the entire process of liberalization within APEC has 
been marked by the "Bogor Goals" (1994) agreed in Indonesia. 
4.69.  Indonesia is our biggest trading partner among the ASEAN countries; bilateral trade 
amounts to US$400 million, with a deficit of more than US$100 million for Chile. 
4.70.  Both countries are aware of the tremendous  potential for deepening their trade relations; 
hence, since 2008, we have been evaluating the possibility of negotiating a free trade agreement. 
A joint viability study has in fact already been co nducted, which made clear the benefits that would 
accrue to both economies from such an agreement. 
4.71.  Apart from the economic advantages, an ag reement of that nature would strengthen Chile's 
links with ASEAN and the possible negotiating bl oc of the Regional Comprehensive Economic 
Partnership (RCEP). 
4.72.  In the WTO framework, we are united by ma ny ties such as the G 20 and the Cairns Group, 
and we are therefore pleased that this review  shows us a vibrant Indonesia that has made 
considerable economic progress, with a GDP that has almost doubled between the previous review period and the present one, and which lowered the poverty threshold by half in 2011, from a level 
of 24%. 
4.73.  We also welcome the implementation of practices that contribute to trade facilitation, such 
as the single window system and the efforts made to improve the legal system, so as to 
strengthen protection for intellectual property rights. 
4.74.  However, we take note of the limited cont ribution of trade to domestic output and we are 
concerned at a series of measures adopted by Indonesia which could have negative systemic effects such as export and import restrictions, import licensing requirements affecting almost 20% 
of tariff lines, the introduction of new rules on anti dumping, countervailing and safeguard 
measures, particularly the latter which have increased substantially since 2010 and put Indonesia in second place among countries applying this instrument within the WTO. 
4.75.  Chile is also concerned at the recent SPS measures adopted by Indonesia, which affect our 
exports of fruit and vegetables. We hope that, in the short term, through a healthy bilateral dialogue, our two countries can resolve contingencies created by such measures. Chile is confident 
that a solution satisfactory to both parties will be found in the near future. WT/TPR/M/278 • INDONESIA 
 
- 20 - 
 
  4.76.  Chile welcomes the fact that Indonesia is playing an increasingly prominent role on 
international issues in keeping with its rise in various rankings based on global indicators. Apart from chairing APEC in 2013, it will host the Ni nth Ministerial Conference of the WTO and other 
important international events, which is testimony to the buoyancy and strength of this economy. 
4.77.  As an ancient Indonesian proverb says: The tree does not fear the storm. We hope that the 
tree of Indonesia will continue producing fruits like the ones we have seen in this review. 
BRAZIL 
4.78.  This year, Indonesia and Brazil celebrat e 60 years of the establishment of diplomatic 
relations. Since 2008, Indonesia is one of the countries with which Brazil has established a 
Strategic Partnership. The Brazilian government regards this partnership as a useful instrument to help intensify relations between our two countries, but also between Brazil and the ASEAN 
member countries. Last year, Brazil joined the ASEAN Treaty of Amity and Cooperation. 
4.79.  Since its last TPR in 2007, Indonesia has not only succeeded in overcoming the world 
economic crisis. It has also been posting strong economic performances over the past few years. 
GDP growth rates have averaged 6%, pushed by an  increased participation of Indonesia in world 
trade flows. The Master Plan for Acceleration and Expansion of Indonesia's Economic Development has been playing a major role in building a prosperous society in Indonesia. 
4.80.  In the process, Indonesia has increased it s presence regionally as well as globally. The 
country will host the APEC Summit Meeting, in Octo ber. Even more relevant for the WTO, the ninth 
Ministerial Conference is a clear sign of Indonesia's commitment to the international trading system and to a meaningful package of deliverables under the DDA mandates. 
4.81.  In the DDA negotiations, our two countries share a wide range of common interests, 
especially in agriculture, industrial goods and intellectual property, and, with other Members, coordinate actions in groupings such as the Ca irns Group, the G-20, the NAMA-11 and the W-52 
coalition. 
4.82.  Indonesia and Brazil share, in brief, common features. They are both populous and 
democratic developing countries, faced with the challenge of fighting poverty under democratic 
deliberation processes. 
4.83.  Bilateral trade stood at US$3.7 billion in 2012. Imports from Indonesia to Brazil exceeded 
US$1.9 billion in 2011, an increase of more than 200% compared to 2007. Indonesia has also become an increasingly important market for Brazilian goods. In 2012, Brazilian exports to 
Indonesia reached US$2 billion. Brazil exports mostly primary goods (iron, sugar and cotton) while 
it imports from Indonesia primary goods and produc ts with higher added value, such as synthetic 
fibres, oils, rubber and electric appliances. 
4.84.  Despite high growth rates, there is still much room for growth and diversification in bilateral 
trade flows. Trade with Brazil still represents on ly 1% of Indonesia's trade flow. As a major food 
exporter, especially meat products known for their high quality and worldwide acceptance, Brazil is 
concerned over SPS barriers to access the Indonesian market. In this context, we would welcome 
any efforts by Indonesia to implement the principles  of regionalization and the Article 6 of the SPS 
Agreement. Brazil is also available to hold discussions with Indonesia on a sanitary certificate for trade on poultry products. 
4.85.  Let me note in this respect that bilateral co-operation has been making significant progress, 
especially in areas such as agriculture and planning. A consultative committee has been set up on agriculture and planning. A consultative committee has been set up on agriculture that has already 
met six times. As for planning, the first meeting of the Bilateral Group on Economic and Social 
Themes will take place later this year. Other areas of on-going bilateral co-operation are environment and climate change. 
4.86.  We sincerely expect that the relations between Indonesia and Brazil will continue to be 
strengthened in a constructive and open way, with a view to promoting not only bilateral trade in WT/TPR/M/278 • INDONESIA 
 
- 21 - 
 
  goods and services but also productive investments, mostly in tourism, engineering, oil and gas, 
as well as in agriculture and mining. 
KOREA 4.87.  I would like to note that, as was laid out in the Secretariat Report, Indonesia has made 
steady economic progress. This has been demonstr ated by its average annual GDP growth rate of 
5.9% during the review period. Also, it is part icularly noteworthy that the Indonesian economy 
remained strong even in the face of the recent  global recession and the 2012 and 2013 forecasts 
by the World Bank stand at 6.1% and 6.3% resp ectively. We have also been impressed by the 
Indonesian government "2011-2025 Master Plan fo r the Acceleration and Expansion of Economic 
Development (MP3EI)" which we believe lays a solid foundation for higher levels of sustainable growth in Indonesia. In this regard, I am pleased to point out that our government has been 
cooperating as a major partner for this plan since it was agreed at the summit level by both 
countries in December 2010. 
4.88.  Turning to the bilateral economic relations between Korea and Indonesia, we can easily see 
that they remain as strong and vibrant as ev er. In 2012, the trade volume between the two 
countries reached US$29.6 billion with Korea standing as Indonesia's 7
th largest trading partner, 
and Indonesia positioned as Korea's 8th largest trading partner. Another key indication of our 
strong relationship is that in 2012 Korea was the 3rd largest investor in Indonesia and Indonesia 
was the 7th largest investor in Korea. 
4.89.  Looking ahead in order to further our already close economic ties beyond the Korea-ASEAN 
FTA, the governments of Korea and Indonesia started the CEPA negotiations in April last year. It is 
reported that currently there is a common goal between the two governments regarding the 
conclusion of the negotiation by the end of this year. Again, such an example highlights the fact 
yet again that bilateral cooperative relations betw een Korea and Indonesia remain strong and that 
we do hope and expect them to grow even stronger in the coming decades. 
4.90.  On the multilateral front, as the Secretariat noted, Indonesia has been actively engaging in 
the discussions in areas including agriculture, th e WTO Information Technology Agreement (ITA), 
Services, and Government Procurement. In many ways, Indonesia has demonstrated its trust in 
the multilateral trading system and its willingness to work hard to move things forward. On this note, I would like to commend the efforts Indonesia is making towards ensuring the successful Ministerial Conference in Bali this year and we are committed to working in a cooperative spirit to 
these ends. 
SINGAPORE 4.91.  Singapore and Indonesia enjoy a longstanding bilateral relationship of deep economic links. 
In 2012, Indonesia was our 4th largest trading partner with bilateral trade reaching US$64 billion.  
Our bilateral trade covers a wide range of se ctors, from refined petroleum products, to 
telecommunications equipment, electrical machinery and circuit apparatus - reflecting a strong 
degree of integration between our manufacturing sectors. Bilateral investment also grows steadily.  
Since 2009, Singapore has been the largest foreign investor in Indonesia. In 2012, US$4.9 billion was invested through 805 projects in Indonesia, accounting for about 20% of Indonesia’s total Foreign Direct Investment
1, in sectors such as environmental services and telecommunications.  
We are also each other's top source of tourist arrivals, reflecting the close links between our 
peoples. 
4.92.  Indonesia has always taken a deep involvement in regional and international engagement.  
Her contribution to the multilateral trading system is best demonstrated by her generous 
undertaking to host the 9th WTO Ministerial Conference later this year. ASEAN’s various initiatives, including the 2015 ASEAN Economic Community target and the Regional Comprehensive Economic 
Partnership (RCEP) initiative, will all help businesses forge stronger economic links both within 
ASEAN and with our external partners. Last year, we welcomed Indonesia’s participation as observer to the WTO Government Procurement Agreement (GPA). We also hope to welcome Indonesia to the on-going talks in Geneva to ex pand the coverage of the Information Technology 
                                               
1 Source: BKPM (Indonesia Investment Coordinating Board). WT/TPR/M/278 • INDONESIA 
 
- 22 - 
 
  Agreement (ITA). From Vice-Minister Bayu’s remarks this morning, we fully understand the 
domestic debate on this matter based on past ex perience. Here we encourage Indonesia to also 
consider the future potential and related benefits continued IT liberalisation will bring. These include potential foreign investment, lower costs to Indonesia’s many IT consumers, and the 
associated spin-offs IT has for Indonesia’s growing services sector. 
4.93.  Indonesia was one of the few countries that emerged from the 2007/8 global financial crisis 
relatively unscathed.  Since 2010, it has achieved stable GDP growth of above 6%. Despite the 
global economic slowdown in recent years, th e Indonesian economy has performed well as an 
outcome of solid fundamentals, a stable banking se ctor, and strong domestic consumption. In this 
connection, we welcome the various steps Indonesia has taken to foster a good business environment, including the liberalisation of its investment regime and the implementation of a 
National Single Window, now operational at its ten main customs entry points. We also welcome 
the Master Plan for the Acceleration and Expans ion of Indonesia’s Economic Development (MP3EI) 
2011–2025, which aims to increase business co mpetitiveness and transform the Indonesian 
economy. The foreign investment law of 2007 was a significant step in the right direction, 
providing greater clarity to investors with respect to the responsibilities of national and local governments. 
4.94.  Given its complex archipelagic structure, Indonesia faces challenges in establishing 
infrastructure, transport and communications networks. Recognising these realities, we encourage Indonesia to continue its pursuit of an open trade and investment regime. This includes improving its regulatory environment and border procedures , as a transparent and predictable rules-based 
environment is essential to growing trade and attracting investment which, in turn, generate jobs 
and economic growth. The spectrum of trade rest rictive measures identified in the Secretariat 
report have recently been the focus of concerns among the membership. We already see that 
some steps are being taken in response to these. In particular, we are encouraged by recent 
reports of plans to revise regulations and facilitat e approvals for import of horticultural products. 
4.95.   We hope that Indonesia will continue to work responsively with WTO Members to further 
foster trade and growth. We understand Indonesia’s aspirations to nurture local industry. In this 
regard, continued trade and investment openness will help Indonesia participate in, and benefit from the global value chains, many of which are being built or enhanced in the Asian region to take advantage of prevailing opportunities. We look forward to the positive results of the reforms 
Indonesia has planned, and to the further liberalisation of the economic policies and practices. We 
are certain that with determination, Indonesia will be well on-track to achieve the goals they have set, which include becoming one of the top ten economies in the world by 2025. 
4.96.  From Members’ questions and feedback th is morning, it is clear that the Indonesian 
economy is of keen interest to many who view her as an important trade and investment partner.  Such interactions demonstrate the intrinsic value of the TPR process in providing for a frank 
exchange of views and suggestions on ways to improve members' trade policies and practices for 
further economic growth. 
NEW
 ZEALAND 
4.97.  Since its last review in 2007, Indonesia’s role in the global economy has expanded, and 
Indonesia has enjoyed enviable rates of growth. Within the Asia Pacific region, Indonesia’s 
leadership role has also strengthened. Unsurprisingly, Indonesia is a significant and highly valued economic partner for New Zealand underpinned and supported by AANZFTA. Accordingly, New 
Zealand takes an active interest in Indonesia’s trade and investment policy.   
Positive aspects of Indonesia’s trade policies 4.98.  We welcome the expanded role Indonesia is playing on global trade issues including as 
Chair of APEC in 2103, and join others in thanking  Indonesia for agreeing to host December’s 9th 
Ministerial Conference. Delivering an outcome to this meeting which sends a positive message about the crucial role of this organisation is important for all Members. A key challenge in the weeks ahead is to identify a realistic and balanc ed convergence on a number of Doha elements for 
Bali. It is also very clear that whatever specific agreements or decisions may be reached in Bali a 
considerable agenda of further work will remain to be advanced post-Bali. In the longer term, New WT/TPR/M/278 • INDONESIA 
 
- 23 - 
 
  Zealand shares Indonesia’s commitment to work towards the eventual successful conclusion of the 
Doha Round negotiations and is confident that Indonesia’s leadership in hosting and preparing the way for a successful Bali meeting this ye ar will contribute to this goal.    
4.99.  New Zealand is pleased to note the develo pments around Foreign Direct Investment set out 
in the report. In particular we commend Indonesi a on the improvements in transparency and the 
reduction in administrative burdens provided for in the 2007 Investment Law, and the on-going liberalisation of Indonesia’s negative list for investment. We encourage Indonesia to continue to 
liberalise its regulatory environment to facilitate FDI. 
Areas of concern 4.100.  At the same time, we note that the Secretariat’s report identifies a number of trade 
policies and practices that remain of concern, many of which are being highlighted in Members’ 
statements today.   
4.101.  In previous reviews New Zealand has expressed its concerns that Indonesia has continued 
to apply trade restrictive measures and we note here that the Secretariat’s report indicates that 
significant new trade restrictive measures have been implemented during the review period.  
4.102.  New Zealand has posed a series of questions to Indonesia about some specific trade 
policies.  In particular, New Zealand is concerned about the imposition of quantitative restrictions 
and import licensing requirements for beef and horticultural products – as an example of the 
impact of these restrictions New Zealand exports of beef to Indonesia have dropped from 35, 000t 
in 2009 to just over 10,000t in 2012. 
4.103.  New Zealand also notes the general lack of  consultation and transparency associated with 
the development and introduction of trade relate d measures. Consultation has been sporadic and 
key stakeholders have not always been included in these processes. It is important that notification of regulations that may affect trading partners should be conducted in a timely fashion, 
before implementation, in order to allow partners the chance to understand them fully and to help 
industry adopt processes to ensure compliance with the often complex requirements (such as around labelling).   
4.104.  Greater clarity around the implementation and operation of regulations is also to be 
encouraged, as a lack of information creates uncertainty for business, further impacting trade. New Zealand therefore encourages Indonesia to mo ve towards a more open system of consulting 
and notifying regulations. Opaque regulations bene fit no one – least of all the Indonesian public, 
who have experienced exponential price rises in key products including beef and onions. 
4.105.  In conclusion, New Zealand commends recent  steps taken - particularly around investment 
policy. At the same time, we continue to share a range of concerns with other aspects of 
Indonesia’s trade policy and we look forward to fu rther discussion of the issues that have been 
raised here during the course of this review. 
CHINA 
4.106.  Indonesia is the fourth most populous nation in the world full of vigour and promise. Since 
the previous trade policy review in 2007, it has been  steadily growing at an average rate of 5.9%. 
This is a valuable achievement against the global turmoil. Based on the two reports of Secretariat 
and Indonesia, it may be attributed to the following factors: 
4.107.  The first one is the solid economic fundamentals of Indonesia including its strong fiscal 
position, constantly reduced external debt and nearly doubled international reserves.  
4.108.  The second one is the tremendous efforts of Indonesia to build more attractive investment 
climate and nurture greater competitive edge with a series of long-and medium-term as well as 
annual plans. China commends Indonesia for such efforts and is interested in learning more about these plans. WT/TPR/M/278 • INDONESIA 
 
- 24 - 
 
  4.109.  The third one lies in systematic efforts by Indonesia to reduce constraints on trade, 
investment and production. Examples include th e streamlining of customs procedures and the 
revised and more liberal “negative list” in investment fields.  
4.110.  The last one is of course the active participation of Indonesia both multilaterally in the 
WTO and regionally in Asia Pacific. Indonesia is the coordinator of G-33 on DDA agriculture 
negotiations in the WTO and a leading member of ASEAN. This year Indonesia will host two big 
events: the APEC Summit Meeting and the 9t h WTO Ministerial Conference. China thanks 
Indonesia for hosting these events, and commit to working with Indonesia for complete success of 
both events. In particular, China shares the same firm commitment with Indonesia, and many other Members, to spare no efforts for a small package in Bali.  
4.111.  That being said, as the Secretariat Report  pointed out, there’s still room for improvement 
of Indonesian trade policy. For instance, Indonesi a’s import procedures tend to be complicated 
with tight registration requirements, port of entry restrictions and extensive pre-shipment inspection. Its import licensing requirement is rather complex and needs more transparency. It 
also has mandatory divestment requirements for foreign mining companies. We have sent to 
Indonesia our questions and thank them for their responses.  
4.112.  Finally on the bilateral side, China is now Indonesia’s largest trading partner. With the 
China-ASEAN FTA, our bilateral trade reached US$66 billion in 2012, 60 times of the trade in early 
1990s when we established diplomatic relations.  China’s accumulative FDI in Indonesia has 
increased to US$2 billion, ranking Indonesia No. 2 destination of China’s FDI in ASEAN countries. China is also Indonesia’s No. 2 source of foreign tourists and each year over ten thousand 
Indonesian students come to China to study. We are confident that, with our joint efforts, our 
bilateral cooperation will witness even brighter future. 
SEPARATE
 CUSTOMS  TERRITORY  OF TAIWAN,  PENGHU,  KINMEN  AND  MATSU 
4.113.  We have for long enjoyed a close and highly beneficial trading relationship with Indonesia, 
and this cooperative relationship has expanded in recent years, especially in the areas of investment, energy, agriculture, fisheries and labour recruitment. In fact, in the last five years 
since 2007, the amount of two-way trade between us has almost doubled in value, and it 
continues to grow at a steady pace. Indonesia is also one of our most important investment destinations, and we now rank as Indonesia's ninth largest source of foreign investment. 
4.114.  We would like to take this opportunity, as a close cooperative partner of Indonesia, to 
praise both the government and the people on the country's remarkable economic performance 
since 2007. In just over five years, GDP per capita has been almost doubled and the incidence of poverty reduced by half. These achievements, along with the establishment of other solid 
fundamentals, have provided some good under lying support in the face of the 2008 global 
recession. We believe that Indonesia's 2011 Master Plan for the Acceleration and Expansion of Economic Development can really help the country achieve the stronger, more suitable economic 
expansion that it seeks over the next fifteen years. 
4.115.  Indonesia has been taking steps, as well, to improve its business environment, and this is 
being reflected in improved rankings in various global indicators. Its new Investment Law, for example, is very welcome, and in particular its provision of national treatment to foreign investors. 
At the same time, it must be said that inadequate infrastructures and restrictions on investment in 
certain fields, in particular the negative list, are still a cause for concern. We would like to see the Indonesian government taking a more balanced course between its domestic policies on the one 
hand and the maintenance of an open foreign trade and investment regime on the other. 
4.116.  Indonesia has also adopted some import and export measures recently that are proving to 
be of concern to WTO Members. We share these concerns, especially in such areas as customs 
procedures, export restrictions, export taxes on raw materials, import licensing requirements and 
point-of-entry restrictions on imports. Our hope was that Indonesia, being a strong advocate of TF in the DDA negotiations and promoter of its inclusion in the "Bali small package", would be making its customs procedures and requirements less strict and burdensome than before. WT/TPR/M/278 • INDONESIA 
 
- 25 - 
 
  4.117.  On exports, we would ask Indonesia to make its export tax scheme more transparent and 
more easily understood by foreign investors. 
4.118.  As far as imports are concerned, unfortunately, the numbers of products being subject to 
import licensing are rising. Indonesia's new Law on Horticulture, effective from 2010, has 
tightened import quarantine procedures and restricted entry points at some minor ports. Our 
worry is that such licensing requirements will lead to greater uncertainty, higher administration costs and longer timeframes for foreign exporters to the Indonesian market. 
4.119.  On the issue of anti-dumping measures, we continue to have concerns over Indonesia's 
investigation procedures, in particular the principles of de minimus  and non-discrimination. These 
have been brought to the attention of the Anti-dumping Committee, but no explanation has yet been forthcoming. 
4.120.  In addition, Indonesia's use of safeguard actions has increased significantly in the last 
three years, according to the Secretariat Report, making it now the WTO's second most frequent user of this instrument. In a recent case involving ourselves, we found it difficult to obtain the 
relevant information and petition, therefore we would urge the Indonesian government to better 
observe the procedures and transparency requir ements set out in the Safeguard Agreement. 
4.121.  Turning back now to the multilateral front, we have welcomed Indonesia as an Observer to 
the Agreement on Government Procurement (GPA ) in 2012, and we are looking forward to its 
formal accession to the GPA in the not-too-distant future. Also, given its extremely important and strategic role in the Asia-Pacific area, Indonesia is expected to commit to further liberalization soon through various regional or bilateral free trade agreements. At the same time, we are looking 
to Indonesia to play a more active role in the DDA negotiations, and in the Services sector in 
particular. 
4.122.  This year, of course, Indonesia faces two especially important and challenging tasks within 
the WTO. The first is the running of the campaign for the Chairpersonship of this organization, and 
the second is the hosting of the landmark Ninth Ministerial Conference in December. We are sure that both of these important tasks are in very good hands. 
JAPAN 
4.123.  Indonesia has implemented sound fiscal and investment policies. From the last review in 
2007 to 2011, Indonesia’s real GDP grew by an av erage of 5.9% per year . Japan highly commends 
Indonesia’s policies and efforts supporting its steady economic growth. 
4.124.  While most Millennium Development Goals (M DGs) are on course to be achieved on time 
as noted in the Secretariat report, however, a stronger proper income distribution policy may be needed to address the issue of poverty reduction. Developing infrastructure, such as roads, ports, 
and electricity, is also necessary for further improvement of the business environment and 
expanding trade. Japan is working closely in cooperation with Indonesia to address these 
challenges. 
4.125.  Now let me move to trade and trade-related policies. Here, we have three general points 
and six specific points.  
4.126.  General points. First, WTO. Indonesia will host MC9 in December. It will also host APEC 
Ministers of Trade Meeting in April as well as APEC economic leaders’ meeting in October. We 
expect Indonesia will address various concerns raised by members of WTO and thereby play a 
leadership role in furthering liberalization of  trade for the success of various such events. 
4.127.  Second, balance of trade. As the report by  the Secretariat says, Indonesia’s export heavily 
depends on oil and minerals and related products. It seems that the recent trade deficit has been 
the result of such declining commodity prices. Diversification of its industry is needed and Indonesia will need to continue its efforts for that. 
4.128.  Third, protectionism. As has been constantly pointed out in the Council for Trade in Goods 
and other relevant WTO bodies including TPR today, it is our concern that Indonesia introduced WT/TPR/M/278 • INDONESIA 
 
- 26 - 
 
  many protectionist measures in recent years aiming at domestic industry development. Japan is 
particularly concerned about that those measures are leading to lack of transparency and predictability in Indonesia’s trade regime, which will be a bad signal to the business community. Japan hopes that Indonesia will address those concerns in an appropriate manner soon. 
4.129.  Now, let me turn to the six specific points. First, import restrictions. Trade minister’s 
regulations on iron and steel importation require special importer registration concerning specific iron and steel products and impose pre-shipment inspections. At first, these were introduced as 
temporary measures against the Lehman Shock and we re supposed to be terminated at the end of 
2010. However, they have been extended to the end of 2015 and still being applied. These are 
imposing burden to our business community. Full examination will be necessary on the necessity 
of the continued application of the measure on the basis of WTO agreement on pre-shipment 
inspection. 
4.130.  Second, horticultural products. Since Sept ember 2012, Agricultural Minister’s regulation 
requires importers to obtain “recommendation” document in advance. In addition, the Ministry of 
Agriculture decided not to issue the recommendations on 13 products for 6 months from this 
January. This trade restrictive measure is our concern not only in content but also in procedure since adequate information of the measure as well as the reason has not been announced in 
advance properly.  
4.131.  Third, the new mining law. “New mining law” established in December 2008 and the 
Minister’s regulation in February 2012 require minerals to be refined or go through other proceedings before being exported. Japan has concerns that the measures may constitute export 
restrictions by limiting the export of certain mineral products. Those measures must be operated 
consistent with WTO obligations, and Japan will continue to look at the practice for the future. 
4.132.  Fourth, customs procedures on certain products. Apparently, customs procedures on some 
goods related to movies or animations require long time for clearing the Indonesian customs, more 
time than usual. As a result, there are cases where projection of movies or broadcasting of animations had to be cancelled and the opportunities to sell those were lost. Japan requests 
Indonesia to solve the problem as soon as possible. 
4.133.  Fifth, restrictions on movies and broadc asting. In Indonesia, foreign investors cannot own 
more than 49% of stocks concerning movie related services, and foreign companies cannot enter into making films, including editing and making subtitles. They cannot enter into services of 
production, distribution and projection of films, either. With regard to broadcasting, there are still 
strict restrictions on foreign ownership and the quota for foreign programmes. Japan wishes to ask the prospect for Indonesia to relax these restrictions. 
4.134.  Sixth, financial services. Indonesia is promoting the reform on financial regulation 
including the establishment of financial services agency (OJK). We are concerned that regulatory changes may include strengthening regulations on foreign ownership and on forms of commercial 
presence for foreign banks. While autonomous liberalization of services is underway in many Asian 
countries, Japan is looking carefully such movement in Indonesia including the consistency of WTO and other international commitments. 
EUROPEAN
 UNION 
4.135.  The last review of Indonesia was six years ago. Despite the impact of the global financial 
crisis, the Indonesian economy has enjoyed substantial growth and is now the 17th largest economy in the world. With the 4th biggest worl d population, Indonesia has performed well over 
the recent years.  
4.136.  Poverty in Indonesia has gradually declined since 2008 from 15.4 % to 12.5 % in 2011 
while per capita GDP has increased steadily reaching € 2.700 in 2011. Over the same period FDI 
inflows doubled from € 7 billion to € 14 billion and trade represents 43% of the GDP.  
4.137.  The EU welcomes Indonesia's achievements and recognises Indonesia as a load bearing 
and responsible partner of the international system which contributes to promoting global security and prosperity. Indonesia is a key global player, a member of the G-20 and the driver of WT/TPR/M/278 • INDONESIA 
 
- 27 - 
 
  integration in ASEAN. Indonesia plays a key role in the negotiations for the establishment of the 
Regional Comprehensive Economic Partnership (RCE P). The EU fully supports and encourages the 
timely implementation of the ASEAN regional integration processes.  
4.138.  This year is very important for Indonesia since it will chair both the APEC and the 9th WTO 
Ministerial Conference. The EU hopes that Indone sia will, with the joint effort of all the WTO 
membership, ensure a successful outcome of the Bali meeting, to revamp our organisation and restore its credibility as a valid institution capable of tackling globalisation for the benefit of all. 
4.139.  The EU is pleased with the development of  its relationship with Indonesia and with the 
perspective attached to it. The signing of the Partnership and Cooperation Agreement in 2009 and 
the Voluntary Partnership Agreement for the promotion of legal timber trade and forest governance are the reflections but not the only ones of the mutual objectives we share with the 
development of our relationship.  
4.140.  Indonesia and the EU are also important trade and investment partners. The EU is 
Indonesia’s third largest export destination. That makes Indonesia the 23rd largest source of 
imports into the EU. The EU is also an important investor to Indonesia with more than € 20 billion 
of direct investment stocks.  
4.141.  Our two-way trade amounted to almost € 25 billion in 2012 but much more could be done 
and there is untapped potential. In 2011 the EU and Indonesia endorsed a Vision Group 
recommendation to start negotiations on an EU -Indonesia Comprehensive Economic Partnership 
Agreement. Intensive contacts have taken place since.  
4.142.  Despite all these positive developments, th e EU would like to convey its growing concerns 
about the trade policy trends in Indonesia, especially regarding the increasing number of laws and 
regulations that are having systemic consequences for foreign operators’ access to Indonesia’s market and which impact on Indonesia’s ability to fulfil its WTO commitments.  
4.143.  Despite the impressive economic performance achieved, Indonesia’s government and 
legislature have introduced and are implementing a large number of new trade and investment restrictions, most of them have been reported by the Secretariat, such as: import licensing 
requirements, port of entry restrictions on many imports, trading rights limitations, pre-shipment 
inspection requirements, local content and domestic manufacturing requirements (including those in the energy sector), and export restrictions (including taxes and prohibitions). All together, these requirements create a complex web of approval s that are disruptive and threaten to make 
Indonesia’s market impenetrable. 
4.144.  Since the Secretariat’s report was finalised, new draft Trade and Industry laws have been 
considered. The EU would be very worried if these laws were applied as they stand. This leads me 
to emphasize the importance of transparency and consultation prior to adopting important 
measures that affect trade and investment. All these elements that I have just mentioned affect business confidence. This is illustrated by Indonesia’s ranking 128th in the World Bank Doing 
Business report 2013.  
4.145.  Among the most important obstacles that impact on trade and investment, I would like to 
stress the following ones that also have been subject of the EU advanced questions:  
4.146.  First, the cumbersome import procedures. Around one fifth of all Indonesian tariff lines are 
subject of import procedures and licenses that crea te confusion. This applies to a broad range of 
products, including electronics, household appliances, textiles and footwear, toys, and food and beverage products. Second, the adoption of 16 new safeguard measures since 2010 is also a 
worrying trend. Thirdly, the insufficient use of international standards and the local content 
requirements impede trade and investment in many sectors. Fourth, the conditioning of the right to trade in certain sectors to the criterion of self-sufficiency renders the environment for doing 
business very unpredictable and is detrimental to any long term trade or investment objective not 
only in the sectors concerned but also and in the areas of the economy that are directly or 
indirectly related. The lack of proportionality and lack of evidence for certain measures that are not supported by science or risk analysis in the area of SPS is another issue of concern for the EU. WT/TPR/M/278 • INDONESIA 
 
- 28 - 
 
  Finally, we would urge Indonesia to reform the public procurement legislation and to further 
combat bid rigging.   
4.147.  In conclusion, the EU encourages Indonesia to meet its natural desire to grow its economy 
by moving up the added value chain while complying with its international commitments in a 
manner that will be supportive of the multilateral trading system. 
HONG  KONG,  CHINA 
4.148.  Hong Kong, China and Indonesia are close neighbours. Underpinned by a strong bilateral 
relationship, we maintain multi-faceted and vibrant trade ties. Indonesia's economy has grown 
well since the last Review in 2007, averaging 5.9%  annually. As an economic powerhouse in the 
region, Indonesia is becoming an increasingly active contributor in world economic development.  As such, Hong Kong, China is very happy to see Indonesia hosting the APEC Summit Meeting and 
the 9th WTO Ministerial Conference later this year. As the 4th most populous country in the world 
(with about 250 million people), Indonesia will certai nly play an even bigger role in the future in 
shaping the regional and global economic landsca pes. Hong Kong, China looks forward to greater 
cooperation and a closer relationship with Indonesia in the years to come. 
4.149.  On Indonesia's trade policies, we note that it has taken steps to improve its business 
environment. However, trade remains relatively small as a share of economic output. Indonesia 
may consider enhancing its trade liberalisation and facilitation – dismantling constraints and 
streamlining border procedures will help attract more trade and investment. 
Investment 4.150.  Turning to the specific aspects of Indonesia's trade policies, we note that in recent years 
Indonesia has facilitated foreign investment and streamlined investment approval procedures.  
While Indonesia has now adopted a negative list approach to open many fields to foreign investment, we note that a number of business activities continue to be subject to investment 
restrictions. When compared to those of other econ omies, foreign investors may still find the list of 
restricted sectors rather long. We suggest Indonesia review its negative list more frequently and open more sectors to encourage investment. 
Trade facilitation 
4.151.  On trade facilitation, we note that Indonesia has reformed its Customs to increase its 
transparency and accountability.  Commendably, a National Single Window was launched in 2007, 
which allows online processing of customs documents, licence applications and duty payments. It 
is now operational at all of Indonesia's ten main Customs entry points. Indonesia is also 
introducing authorised operator and expedited shipment schemes for reputable importers to 
improve risk management and facilitate trade.  We welcome and applaud the progress made and 
encourage Indonesia further to liberalise its customs regime. 
4.152.  We appreciate Indonesia's active participation in the Negotiation Group on Trade 
Facilitation with a view to bringing the negotiation process to an early conclusion. We look forward 
to working closely with Indonesia for a fruitful outcome on this at MC9. 
Tariffs 4.153.  On tariffs, we appreciate that Indonesia has bound 95% of its tariff lines and reduced its 
simple average applied MFN tariff from 9.5% in 2006 to 7.8% in 2012, following a five-year tariff 
harmonisation programme concluded in 2010. However, the average bound rate at 37.4% 
considerably exceeds the average applied rate at  7.8%, which imparts a degree of uncertainty for 
importers. In addition, although most tariff rates are applied at 40% or below, tariff rates of 150% 
have been applied to 43 lines (e.g. motor vehicles ). We encourage Indonesia to review the current 
arrangements with a view to providing further tariff reductions and greater predictability. WT/TPR/M/278 • INDONESIA 
 
- 29 - 
 
  Agriculture 
4.154.  We note that there is a high level of government intervention in the agricultural sector.  
For imports, while the applied rates could be low, the tariffs on more than 1 300 agricultural products are bound at 40% or above. This large ga p, together with seemingly arbitrary changes in 
the applied rates, creates uncertainty for busine sses. We also note that quantitative import 
restrictions have been maintained for rice, sugar and salt, and introduced for animals and animal products. It appears to us that import requirem ents for food safety, SPS, and cultural reasons 
have become more stringent. Domestically, the government also provides a wide range of input 
subsidies. We encourage Indonesia further to liberalise this sector to facilitate access. 
Services 4.155.  On services, we note that Indonesia has undertaken various measures and plans to 
facilitate growth of trade in services, including establishing new regulatory authorities and 
amending regulations. We note with interest the increasing importance of the services sector in 
terms of both GDP (about 38%) and employment (a bout 44% of the labour force) in Indonesia. 
We appreciate the GATS commitments made by Indonesia in the strategic sectors of 
telecommunications and financial services, but we continue to have concerns over other equally important sectors, such as audio-visual and maritime and port services, in which Indonesia has not 
yet allowed foreign suppliers to play a greater role. We encourage Indonesia further to liberalise 
the trade regime for foreign investment and review the relevant market access conditions. 
Contingency trade measures 4.156.  On contingency trade measures, we note that Indonesia has remained a significant user of 
anti-dumping measures, and has made increasing use of safeguard measures. We hope Indonesia 
will exercise restraint in the use of contingency trade measures, and conduct the relevant proceedings in strict adherence to the pr ovisions of the concerned WTO Agreements. 
THAILAND 
4.157.  Trade relationship between Indonesia and Thailand has been strengthened for the past 
couple of years. As of last year, Indonesia beca me our fifth trading partner and only second to 
Malaysia in ASEAN. The total trade value from 2010-2012 averaged at US$16.6 billion per year. In 
2012, Thailand’s total trade value with Indonesi a was approximately US$19.3 billion, increasing 
from 2011 by 10.56%. 
4.158.  Thailand is impressed with Indonesia’s st eady average annual growth rate of 5.9% since 
Indonesia’s previous review and even during  the 2008-09 global recession. Other notable 
economic performances are greater transparency and improvement in rules in foreign investment regimes, customs reform including National Single Window which greatly facilitates the customs 
procedures, and decrease of average MFN tariff to 7.8% in 2012 from 9.5%. 
4.159.  Echoing the ASEAN statement previously delivered, I would like to express our 
appreciation to Indonesia for its increasingly important role in multilateral trading system, by 
hosting the two global economic meetings this year including the Ninth Ministerial Conference to 
be held in Bali.  We wish Indonesia all the success in those events. 
4.160.  Thailand is also grateful for Indonesia’s contribution in ASEAN both in trade and beyond.  
Together with other ASEAN colleagues, Thailand is looking forward to further integration with 
Indonesia under the ASEAN Economic Community in 2015. 
4.161.  Despite the positive signs above, along with some WTO Members, Thailand has been 
affected by specific import procedures of Indonesia on our horticultural products, including 
registration requirements, port of entry restrictions for several products, and import licensing 
requirements.  We are currently monitoring those measures, and we hope that we can find a satisfactory solution on this matter soon. 
4.162.  With the increase of trade between Thailand and Indonesia, it is not unexpected that 
several concerns and questions have been put forward by our authorities. Besides the import WT/TPR/M/278 • INDONESIA 
 
- 30 - 
 
  procedures on our horticultural products, Thailand also has questions on new import tariffs for raw 
materials for processed milk products, lower import quotas for beef and cattle products, import quota introduction for fresh and processed fruits and vegetables, and regulations with regard to 
drug manufacture and importation.  We would like  to thank Indonesia’s delegation for the answers 
to our questions, which our authorities will study carefully. We also look forward to further 
response to the remaining questions. 
SWITZERLAND 
4.163.  Indonesia is Switzerland's fourth most important trading partner in the ASEAN region.
2 In 
2011, our overall merchandise trade amounted to about US$740 million.3 This is an increase of 
16% compared to the previous year. 
4.164.  Switzerland and Indonesia have markedly intensified bilateral economic and trade relations 
during the past few years: 
 First, Indonesia is a priority country for Swiss economic development co-operation since 
2009. 
 Second, we have established a regular bilateral dialogue within the framework of a Joint 
Economic and Trade Commission. 
 Third, Switzerland together with the other EFTA States and Indonesia are in the process of 
negotiating a Comprehensive Economic Partnership Agreement; this agreement will further 
intensify our bilateral economic and trade relations. 
4.165.  Please let me now make seven specific remarks on Indonesia's economic and trade policy. 4.166.  First, on investments: overall, Swiss companies today hold roughly US$7.4 billion
4 direct 
investments in Indonesia. This means 45 000 jobs in Indonesia. We are pleased to read in 
Indonesia's TPR report that Indonesia provides "equal and fair opportunities for all businesses" and that bureaucracy shall "serve the needs of business".
5 We appreciate such a framework for doing 
business in Indonesia very much and are confident that Indonesia's Investment Coordinating 
Board is translating this in new business opportunities.6 
4.167.  Second, on subsidies for the poor: Switzerland and other countries have commented 
Indonesia's subsidization policy in the energy sector in other multilateral fora7 before. We are thus 
very pleased to read in Indonesia's TPR report that the Indonesian budget policy aims to use subsidies "as an instrument of social policy protection by switching the subsidy objective from subsidy for goods into direct subsidy for the poor".
8 We believe that well targeted subsidization 
schemes are crucial for achieving social policy objectives without wasting public funds. 
4.168.  Third, on developing national industries: we fully support Indonesia's goal to develop 
domestic manufacturing and processing industries with higher value-added exports.9 We trust that 
policies adopted to achieve this aim will not be trade restrictive. 
4.169.  Fourth, trade in goods related licensing procedures: we noted that Indonesia has 
introduced a number of import licensing requirements during the past year. Certain agricultural 
products may, for example, be imported today through a small number of designated sea ports 
only. We would like to seek clarification from Indonesia on the underlying reasons for these new requirements and to receive further details on their application in practice. 
4.170.  Fifth, on the protection of intellectual property rights: according to its TPR report, 
Indonesia aims to strengthen the national innovation system and move towards a more 
                                               
2 After Singapore, Thailand and Malaysia. 
3 CHF 697 Mio. 
4 CHF 7 Mrd. 
5 Report Indonesia 2.10. 
6 See Report Indonesia, 2.19-2.20. 
7 Namely OCDE. 
8 Report Indonesia 2.12. 
9 Report Indonesia 5.4. WT/TPR/M/278 • INDONESIA 
 
- 31 - 
 
  innovation-driven economy.10 The protection of intellectual property rights is a key for attracting 
and developing innovative industries. Switzerl and fully agrees with the view expressed by 
Indonesia in its TPR report that the three TRIPS issues GI register, GI Extension and TRIPS/CBD disclosure should be discussed in parallel as part of the horizontal TRIPS negotiation process.
11 
4.171.  Sixth, on government procurement: in October 2012, Switzerland, together with other 
Parties, welcomed Indonesia as a new observer to the WTO Government Procurement Agreement. We encourage Indonesia to apply to become a full-fledged Party to the Agreement in the near 
future. 
4.172.  Seventh, and finally, on Indonesia's role within the WTO: we welcome Indonesia's 
commitment to the multilateral trading system of the WTO.
12 Switzerland much appreciates that 
Indonesia offers to host the 9th Ministerial Conference on the island of Bali and recognizes the 
efforts by Indonesia for the preparations of this meeting. Switzerland is looking forward to 
continuing its co-operation with Indonesia and other WTO Members in the preparation of this year's Bali Ministerial. 
4.173.  Switzerland and Indonesia do not only carry the same colours in their national flags. There 
are many other similarities between the two countries. Of course, there are also some differences and it is important for both our countries to engage in trade negotiations in order to overcome 
differences related to trade policies. 
4.174.  We would like to close this short statement by thanking Indonesia for its openness to 
constructive multilateral and bilateral dialogues. This openness is the precondition for identifying common ground and trade policy solution, which are beneficial to all of us. 
INDIA 
4.175.  India has enjoyed close cultural ties with Indonesia, stretching back in time to at least two 
millennia. Indonesia is India’s second largest trading partner in the ASEAN region with a bilateral 
trade of over US$21 billion in 2011-12 (up fr om US$6.9 billion in 2007-08). Since President 
Yudhoyono’s visit to India in early 2011, when 16 inter-governmental agreements were concluded for cooperation in various sectors, a biennial Trade Ministers Forum has been set up to discuss 
expansion of bilateral trade and economic cooperation. The two sides have agreed to launch 
negotiations for a bilateral Comprehensive Econom ic Cooperation Agreement (CECA) and set up a 
CEO’s forum, an energy forum and a trade an d investment forum. Several reputed Indian 
companies have made significant investments in infrastructure, power, textiles, steel, automotive, 
mining, banking, consumer goods and IT.  
4.176.  At the regional level, Indonesia is a prominent member of the G-20 and ASEAN. India 
concluded an FTA with ASEAN in 2009 and late last year agreed to launch negotiations for a 
Regional Comprehensive Economic Partnership Agreement (RCEP) between ASEAN and its FTA 
partners. We are confident that these initiatives wi ll give a further boost to our trade and economic 
cooperation. 
4.177.  On the multilateral front, India highly appreciates Indonesia’s active role in the WTO as 
coordinator of the G33 group, of which India is also a member. The G-33, under Indonesian 
leadership, has tabled a proposal on food security for a decision at MC9. We hope that it will be able to garner support of the wider WTO membership which will help us in moving towards a 
successful outcome in Bali.  
4.178.  India is happy to note that during the period under review, Indonesia continued to grow 
steadily at an average annual growth rate of 6% , doubling its per capita GDP to nearly US$3,500 
and significantly lowering poverty and unemployment. Its solid fundamentals, a resilient banking 
sector, large domestic market and relatively low dependence on external trade, have helped Indonesia to successfully tide over the global economic crisis. Effective monetary and 
macro-prudential policies have kept inflation under control.  
                                               
10 Report Indonesia 5.4. 
11 Report Indonesia 3.13. 
12 Report Indonesia 3.1-3.2. WT/TPR/M/278 • INDONESIA 
 
- 32 - 
 
  4.179.  The outlook for GDP growth remains encouraging led by strong consumption and 
investment growth, and supported by a recovery in  exports. In the years ahead, Indonesia hopes 
to achieve higher growth rates through a long term strategy of diversification and infrastructure development. We wish Indonesia success in accelerating its economic transformation and realizing 
its vision of becoming a developed and prosperous nation by 2025.  
4.180.  While India welcomes steps taken by Indonesia to liberalize foreign investment and 
facilitate trade (a new foreign investment law has been enacted, tariff harmonization has lowered 
the simple average MFN tariff from 9.5% to 7.8% in 2012 and a National Single Window has been 
created for online processing of documentation), a number of recent policy announcements have raised concerns on the current direction of trade and investment policy-making, which could adversely affect the confidence of investors and trading partners. I would like to briefly touch upon 
some of India’s concerns:  
4.181.  First, even though India is one of the la rgest global exporters of bovine meat and fully 
complies with OIE guidelines to ensure animal health, Indian bovine meat exporters continue to 
encounter problems in exporting to Indonesia. We request Indonesia to ease these restrictions 
which are hampering bilateral trade. 
4.182.  Second, the requirement for foreign drug registration holders to set up a production facility 
in Indonesia within two years of registration, length registration procedures, a FDI cap of 75% and 
exclusion of foreign companies from distribution are severe limiting factors. We encourage greater 
transparency, simplification of procedures and liberalization in the pharmaceutical sector.  
4.183.  Third, a number of recent policies in the mining sector are impacting Indian companies 
which have made substantial investments in the coal mining sector in Indonesia. These include, a 
regulation requiring foreign investors to divest a minimum of 51% of their equity by the 10th year 
of production. Also problematic is the domestic market obligation which requires mining companies 
to sell 26% of their production locally. Further, with effect from 2014, mining companies would be 
required to carry out processing and refining of mineral ores, including coal, within Indonesia. In addition, a recent ministerial decision allows only those mine owners to undertake mining 
infrastructure projects like railways and ports which have a major share-holding in the mining 
company. We hope Indonesia will take appropriate steps to review these policies soon.  
4.184.  Finally, difficulties are being faced by Indian banks based in Indonesia in obtaining 
approvals for their personnel and technology up-gradation. We hope Indonesia will address these 
concerns. 
SRI
 LANKA 
4.185.  My delegation takes this opportunity to congratulate Indonesia for its remarkable economic 
growth of 6.5% recorded in 2011, in midst of th e global economic slowdown, debt crisis, natural 
disasters and other challenges. We note that the growth achieved during the period reviewed is 
underpinned by the domestic resilience in the form of increased investments, stable purchasing 
power and the growth in exports, both in goods and services. As per the Indonesian government 
report, we observe that the momentum of economic growth and stability also have boosted economic quality reflected through the reduction in unemployment rates and decrease in poverty. 
4.186.  Indonesia remains an increasingly important trading partner for Sri Lanka. 
Notwithstanding, the recent global economic downturn, the total value of merchandise trade 
between the two countries has increased by threefold since 2003. 
4.187.  In 2012, Sri Lanka's imports from Indonesia hit almost US$420 million, while Sri Lanka's 
exports to Indonesia stood at only US$87 million. The balance of trade has always been heavily 
favourable to Indonesia. 
4.188.  As much as 82% of Sri Lanka's exports to Indonesia consist of wheat flour, followed by a 
few other product categories, including apparel which account for 3%. WT/TPR/M/278 • INDONESIA 
 
- 33 - 
 
  4.189.  Sri Lanka's main imports from Indonesia include coal, chemical products, cement, tobacco 
products and palm oil. Sri Lanka is of the view that there is a great potential for the two countries to further enhance their trade and investment flows. 
4.190.  However, my delegation is highly concerned about the increasing number of safeguard 
investigations initiated by Indonesia over the recent years. In fact, this scenario has been reflected 
a few times in the Secretariat Report as well. 
4.191.  It is understood that Indonesia has initiated as many as 10 safeguard investigations during 
the period under review and 9 of them have ended up with imposition of safeguard measures. This 
is not at all an acceptable situation, if the objective had been to safeguard the uncompetitive domestic industry. 
4.192.  As referred to in the section 3.1.6.2 of the Secretariat's Report, one of these investigations 
concerns wheat flour, is the main export item of Sri Lanka to the Indonesian market. Following the 
investigations initiated in August last year, Indonesia has imposed a provisional measure of 20% duty on this product with effect from 5
th December 2012. 
4.193.  As mentioned a little while ago, I wish to reiterate that wheat flour accounts for as much 
as 82% of Sri Lanka's exports to Indonesia. Th e provisional measure has seriously eroded the 
competitiveness of Sri Lanka's wheat flour exports. The declining exports would undoubtedly widen 
further our trade gap with Indonesia. Needless to say this would affect the contribution the wheat 
flour industry has been making to the Sri Lanka economy in terms of employment generation and foreign exchange earnings. 
4.194.  We understand that the investigations are still on and a final decision will be taken in June 
2013. However, it is pertinent to mention that the above provisional measure of 20% duty, which 
has been imposed for a period of 200 days, is capable of causing an irreparable loss to the wheat flour industry in Sri Lanka, which remains very small. 
4.195.  Sri Lanka is particularly concerned over the manner in which Indonesia had decided to 
initiate the investigations. 
4.196.  We reiterate that there is neither sufficient evidence of increased imports, serious injury 
and/or causal link between the purported seriou s injury and the purported increased imports, 
which are required to impose provisional safeguard measures under Article 6 of the Safeguard Agreement nor information regarding "unforeseen developments" of "the effect of the obligations incurred, necessitating the imposition of safeguard measures as required by Article XIX of the 
GATT, which forms part of the WTO legal requirements for safeguard measures. 
4.197.  Therefore, Sri Lanka has sought clarification from Indonesia as to on what basis the above 
safeguard investigations have been initiated. We also would like to have an update on the current 
status of the on-going investigations. We wish to  convey our thanks to the Indonesian delegation 
for the response made available to us. 
4.198.  Being a strong believer of the multilateral system, Sri Lanka deeply appreciates the 
Members adherence to non-discriminatory, predictable and transparent policy measures. 
Therefore, we urge Indonesia to reconsider it s decision and withdraw the provisional measure 
imposed on wheat flour imports. 
4.199.  In conclusion, my delegation recognizes the significant role played by Indonesia in the 
WTO deliberations, and also appreciates the efforts of Indonesia in spearheading G-33 with issues 
related to poverty reduction, food security, rura l development and economic growth in developing 
countries. 
TURKEY 
4.200.  We are very happy to observe that, since its previous review in 2007, Indonesia has made 
steady economic progress with an average annual GDP growth rate of 5.9%. Indonesia has applied 
sound economic policy governance by maintaining a strong fiscal position, reducing its debt, and 
doubling its international reserves. As an additional  positive element, according to the World Bank, WT/TPR/M/278 • INDONESIA 
 
- 34 - 
 
  real GDP is expected to grow by 6.4% in 2012 and 6.3% in 2013. During this period, Indonesia 
has also been able to double its per capita GDP and drastically reduce the level of poverty. 
4.201.  The Secretariat Report underlines that Indonesia's strong economic performance has been 
driven by services and commodities, the former  sector providing 38% of the GDP in 2011 and 
growing almost twice the rate of manufacturing and agriculture. We think that this is an indication 
that the country has been experiencing a positive  and dynamic structural change in terms of its 
GDP composition. 
4.202.  The Secretariat Report also mentions that, since the last review, Indonesia has taken 
important steps to improve its business environment including through a better macroeconomic climate, establishment of a national single window for trade and licensing activities and FDI regime. Indeed, FDI inflow to Indonesia has increased from US$10.4 billion in 2009 to 
US$19.5 billion in 2011. 
4.203.  On the trade policy front, it is also good to see that Indonesia has experienced a decline in 
its average MFN tariff rate from 9.5% in 2006 to 7.5% in 2012. The Secretariat Report also 
underlines the fact that 95% of Indonesia's tariffs are bound but at 37.4%, and that the average 
bound rate largely exceeds the average applied rate, creating a degree of unpredictability. The Report also explains that 20% Indonesia's tariff lines are affected by import licensing 
requirements, which have been expanded since Indonesia's last trade policy review. I think that 
this increase in import licensing requirements has a strong potential to negatively affect Indonesia's trade relations. 
4.204.  Turkey enjoys excellent political relations with Indonesia. Currently, we negotiate several 
important agreements with Indonesia including a Comprehensive Trade and Economic Partnership 
Agreement, an Agreement on Cooperation and Mu tual Administrative Assistance in Customs 
Matters, a Memorandum of Understanding on Energy and Mineral Resources Co-operation, a 
Memorandum Concerning Environmental Management and Pollution Control, and an Agreement of 
Co-operation on Disaster Relief and Emergency Management. 
4.205.  We attach utmost importance to employ ing additional policy instruments including a 
comprehensive FTA to further enhance our trade and economic relations with Indonesia. As a 
matter of fact, Turkey and Indonesia have formed a working group to prepare the foundations for a Turkey-Indonesia FTA within the ASEAN framework. We are determined to accelerate the process of finalization of our FTA. 
4.206.  Coming to our bilateral commercial relations, we mainly export cereals, flour, tobacco, 
textile and industrial products to Indonesia. In this  context, I should like to emphasize that cereals 
and specifically flour constitute our single most substantial export item. In return, Turkey imports 
textiles, fibres, rubber, palm oil, and paper products. 
4.207.  Since the last TPR, the total trade volu me between Turkey and Indonesia has increased 
from US$1.533.663 billion to US$2.039.550 billion in 2012 with the balance being largely in favour 
of Indonesia. In 2012, Turkey has imported US$1.795.832 billion worth of goods from Indonesia. 
In return, in the same period we have exported goods worth US$243.718 to Indonesia, recording a deficit of around US$1.552 billion. 
4.208.  In addition to the large existing asymme try in bilateral trade between our two countries, 
Indonesia's recent imposition of a safeguard measure on wheat flour imports from Turkey has the 
potential to further aggravate the trade imbalance between two countries. We are seriously concerned about the measure taken by Indonesia on wheat flour in which we have a substantial 
export interest. As a result of the measure taken on  this item, Turkey's exports have fallen sharply 
from US$137.5 million in 2011 to US$73.6 million in 2012 recording a 46.5% decline. I wish to 
take this opportunity to once again urge our Indonesian friends to consider withdrawing this 
measure for which there is no national justification. 
4.209.  Finally, I should also like to state that Turkey strongly appreciates Indonesia's active 
contribution to the work of the WTO. Turkey wo rks closely with Indonesia in several important 
areas including through our joint G-33 membership in agriculture. Turkey also appreciates the WT/TPR/M/278 • INDONESIA 
 
- 35 - 
 
  Delegation of Indonesia's intensive efforts to prepare the next WTO Ministerial in Bali. We will do 
everything in our power to suppo rt Indonesia in those efforts. 
NIGERIA 4.210.  Nigeria notes and commends Indonesia for the steady economic progress it has made 
since the last Trade Policy Review in 2007. The av erage annual real GDP growth rate of 5.9% and 
GDP per capita have almost doubled, and the po verty incidence has also declined from a post-
crisis peak of 24% to 12.4% in 2011. At the same time, as a result of growth that averaged 5.5% 
during 2002-2011, inflation declined sharply, from more than 58% in 1998 to around 5% in 2010, 
and public debt has fallen from around 76% of GDP in 2001 to under 25%. Other commendable efforts include Indonesia's market diversification, which in my delegation's view is in the right direction, particularly, the foresight in reducing th e dependence on oil, as well as the aggressive 
recourse to renewable energy. Nevertheless, there remains some critical issues to be tackled, 
including establishing the extensive infrastructure of transport, communications and more public utilities that are essential for Indonesia's economic and social development. It would be 
appreciated if Indonesia could elaborate on how it intends to address this critical infrastructural 
challenge. 
4.211.  Nigeria, like Indonesia, believes that open markets, non-discrimination and global 
competition in international trade are conducive to global and national welfare. My delegation, 
therefore, wishes to acknowledge the active and co nstructive role that Indonesia is playing in the 
DDA negotiations. As a member of the G-20 and Coordinator of G-33, Indonesia has tirelessly 
focused on ensuring that further agricultural trade liberalization take into account the development 
needs and concerns of the developing country Memb ers. Addressing the prob lems of food security, 
livelihood security and rural development in develo ping countries therefore remain our shared core 
values. 
4.212.  As highlighted in the Secretariat Report, Indonesia uses trade policy actively, sometimes 
as an instrument to attain its long-term goals, such as promoting overall economic growth, fostering industrial development, or self-suffici ency. Nevertheless, Indonesia has not involved in 
providing a stable trade policy environment to attain these goals; and has sustained its 
commitment to the core principles of a rules-base d Multilateral Trading System. The hosting of the 
9
th WTO Ministerial Conference (MC9) at Bali with the prospects of re-energising the Doha Round 
negotiations significantly underscores that commitment. Nigeria is therefore pleased to note the 
considerable efforts made by Indonesia to increa se the pace of its economic development and the 
transparency of its trade policies. The Secretariat Report indicates that, Indonesia implemented several reform programmes to develop a more efficient, open, and competitive economy 
specifically, a number of customs related reforms were implemented several reforms were 
implemented over the review period with a view  to improving the investment climate in the 
country. The reforms included the introduction of a single administrative document; 
implementation of the Indonesia National Single  Window and the development of customs prime 
services with trade facilitation for prioritized and non-prioritized prominent partners to reduce the time and cost of clearing customs, and to limit  smuggling and customs fraud. However, despite 
Indonesia's efforts on the reforms, lack of competition in some sectors of the economy remains 
one of the major challenges. We hope that the reforms will help Indonesia in meeting its 
development needs and to address the key concerns in other sectors of its economy. 
4.213.  At the bilateral level, Nigeria and Indonesia enjoy strong warm and cordial relations. Trade 
between the countries increased from US$1. 24 billion to US$2 billion in 2010 and 2011, 
respectively. The countries also share many similarities with respect to co-operation in international organizations like the Developing Eight (D-8), G-15 and other Non-Aligned Movement 
(NAM). Apart from the Bilateral Agreement on Economic and Technical Co-operation that was 
signed in 2001, Nigeria and Indonesia have signed a Memorandum of Understanding (MoU) on various areas, including aviation, anti-corruption an d agriculture. Today, more than 15 Indonesian 
companies operate in Nigeria through joint ventures, producing a variety of products from 
pharmaceuticals to consumer products. It is agreed that the volume of trade and investment flows 
between the two countries would continue to grow, especially as consequence of the recent visit to Nigeria by President Yudhoyono with a delegation of almost 100 businessmen. WT/TPR/M/278 • INDONESIA 
 
- 36 - 
 
  URUGUAY   
4.214.  Indonesia and Uruguay initiated diplomatic relations in 1965, and it is Uruguay's intention 
to continue improving trade relations with Indonesia and the entire South East Asian region. 
4.215.  At the same time, it is important to emphasize that our two countries maintain good 
relations in the different international forums in which they participate actively and constructively. 
4.216.  Uruguay wishes to take this opportunity to  express its concern at the exclusion of the port 
of Jakarta as a point of entry into Indonesia for fresh fruit and vegetables. This measure has 
harmed Uruguay's trade interests and we therefore urge that the necessary measures be taken to 
restore Jakarta to its position as a port of entry into Indonesia for such products. 
4.217.  At the same time, we consider it important that all Members have opportunities to obtain 
recognition by Indonesia in respect of fruit safety. Moreover, the introduction of non automatic 
licensing for horticultural products should not result in trade-restrictive measures. 
4.218.  We have submitted some questions on th is topic and we look forward to the replies. 
Uruguay wishes to emphasize the constant contribution made by Indonesia to the multilateral 
system and hopes that the next Ministerial Confer ence in Bali will be an important step towards 
the successful finalization of the Doha Deve lopment Round and the strengthening of the 
multilateral trading system on the basis of predictable, transparent and balanced rules. 
DOMINICAN  REPUBLIC 
4.219.  In the context of its sixth Trade Policy Review, we wish to congratulate the Government of 
Indonesia, since the Secretariat report shows that, since the previous review in 2007, Indonesia has made steady economic progress, with an av erage annual real GDP growth rate of 5.9%. GDP 
per capita practically doubled to almost US$3,500,  and the incidence of poverty declined from a 
post crisis peak of 24% to 12.4% in 2011. These re sults, achieved despite the global crisis of 2008 
2009, confirm the effectiveness of the macroeconomic policies applied, which led to economic 
growth and poverty reduction. 
4.220.  We also commend the Master Plan for the Acceleration and Expansion of Economic 
Development 2011 2025, adopted by the Government in 2011, which recognizes that higher and 
sustainable economic expansion requires that the country diversify sources of growth, accelerate 
infrastructure development and close the develo pment gap between eastern and western regions. 
In addition, real GDP has been forecast by the Wo rld Bank to grow by 6.1% in 2012, and to rise 
slightly to 6.3% in 2013, assuming continued strong consumption and investment growth, 
supported by a recovery in exports. 
4.221.  We wish to draw attention to the need for the improvement of infrastructure, which is of 
fundamental importance for the country's develo pment, taking into account the Secretariat's 
observation that Indonesia faces considerable difficulties in establishing the extensive 
infrastructure of transport, communications and public utilities that is essential for its economic and social development. It is noted that investment in this area is highly inadequate and that 
roads are congested, ports are bottle necked, and many Indonesians do not have access to either 
potable water or reliable electricity supply. We urge the Indonesian authorities to follow the 
directions given in the 2011 Master Plan for improving this situation. 
4.222.  The Secretariat report highlights the steps taken by Indonesia to improve its business 
environment, as reflected in its rise in various rankings based on global indicators. Other notable 
reforms include the launch of Indonesia's National Single Window to facilitate online processing of customs documentation, applications for licences and duty payments. Efforts have also been 
undertaken to improve risk management and facilitate trade by introducing schemes for reputable 
importers. We congratulate Indonesia on these reforms. 
4.223.  However, we draw attention to the fact that it is indicated in the report that import 
procedures tend to be complicated by registration requirements, port of entry restrictions on 
several products and extensive preshipment inspection and import licensing requirements, which WT/TPR/M/278 • INDONESIA 
 
- 37 - 
 
  have increased during the period under review. We  urge the Indonesian authorities to endeavour 
to simplify these procedures so as to improve the flow of trade with the country's trading partners.  
SAUDI  ARABIA   
4.224.  Indonesia enjoyed robust economic growth over the review period with an enviable 
average annual real GDP growth of 5.9% be tween 2007 and 2011. Indonesia's performance 
continued to be robust in 2012, with 6.1% growth, and this trend is likely to continue this year. 
4.225.  Indonesia's long-term national development agencies, contained in Indonesia's 
Medium-Term Development Plan for 2005-2025, as well as in its Master Plan Acceleration and 
Expansion of Indonesia Economic Development fo r 2011-2025, recognize the important supportive 
function of appropriate, ancillary domestic policies and measures for the promotion of international trade and the attraction of investment as well as for sustainable economic development. The 
Kingdom of Saudi Arabia notes that Indonesia, which remains largely dependent on the trade of 
fuels and minerals, adopted policies to diversify its production and increase exports of non-oil products. The Kingdom of Saudi Arabia congratulates Indonesia for the performance of its 
economy over the last five years. 
4.226.  The Kingdom of Saudi Arabia and Indonesi a have been economically and politically close 
for many decades, and this relationship continues to progress. Both of our countries are member 
states of the Organization of Islamic Cooper ation (OIC) and the G-20 and we have concluded 
agreements in investment and double taxation. 
4.227.  Trade between the Kingdom of Saudi Arab ia and Indonesia more than double between 
2004 and 2008 and Indonesian exports to Saudi Arab ia grew by more than 25% over the first ten 
months of 2012. There is a real commitment, at  both the political and business levels, to the 
mutually-advantageous promotion of trade and inve stment. This was highlighted during the recent 
visit of Indonesian President Susilo Bambang Yudh oyono, Minister of Trade, Gita Wirjawan, and 
Minister of Industry, Ms. Hidayat, to the Kingdom of Saudi Arabia at the beginning of this year. 
During this presidential visit, political and busi ness leaders from both countries explored further 
opportunities for co-operation so as to increase two-way trade and investment between our 
countries. 
4.228.  With investments of close to US$10 billion in Indonesia, Saudi Arabian investors are 
contributing to Indonesia's economic development. Foreign direct investment will further increase as a result of the conclusion of negotiations between Saudi Aramco and Pertamina Persero PT to 
build a US$30 billion refinery in Tuban, East Java, and the development of a mineral project of 
US$10 billion. In their Trade Policy Review Reports, Indonesia and the Secretariat refer to the new foreign investment regime that was enacted in 2007 and the resulting improvements, including the 
one-door integrated service (PTSP) and the Na tional Single Window for Investment (NSWI). 
However, despite the notable improvements resultin g from the simplification of procedures and the 
improvement of Indonesia's ranking in international surveys, Saudi investors continue to be 
confronted by difficulties when attempting to inve st in Indonesia. Investment regulations still lack 
clarity, procedures are often administered in an insufficiently transparent manner and bureaucracy hinders the approval of applications for licence and non-licence services. In order to continue to attract investments from Saudi Arabia, particularly in the energy sector, and other Members, 
Indonesia is invited to pursue the reform of its investment policies. 
4.229.  I wish to commend and highlight Indonesia's commitment for the furtherance of all aspects 
of the WTO and on the world trading order. As noted in the Secretariat Report, Indonesia, which is 
an original WTO Member, has maintained a solid record of meeting its WTO notification obligations 
and has taken part, as party and third party, in a number of dispute settlement proceedings in recent years. Indonesia has also made meaningful contributions in negotiating fora. Perhaps most 
significantly, Indonesia has displayed reasonableness, forthrightness and balance in the manner in 
which it recognizes the current benefits and limitations of the multilateral trading system and expresses its view that developing countries in  particular need the Doha Development Agenda 
(DDA) to conclude. The Kingdom of Saudi Arabia supports Indonesia's call, and hopes that MC9, 
which is to be held in beautiful Bali – will contribute to moving the DDA and this organization 
forward. We are fully confident that the Government of Indonesia will be able to organize a successful and fruitful conference. WT/TPR/M/278 • INDONESIA 
 
- 38 - 
 
  ECUADOR 
4.230.  We will begin by recognizing Indonesia's st eady economic growth which, over the last six 
years, has resulted in an average annual GDP growth  rate of around 5.9%, so that the incidence of 
poverty fell from 24% during the global financial crisis to 12.4% in 2011. In that connection, we 
consider that this growth can be maintained and enhanced, and that it may thus benefit the other 
WTO Members through the expansion of trade ties. 
4.231.  Ecuador supports the trade policy objectives pursued by Indonesia, as they closely reflect 
our Government's aspiration to increase exports of non petroleum products, strengthen the 
domestic market and improve supply. We also share a global vision of the future of the multilateral trading system, so that this system may be balanced and fully meet the current and future expectations and needs of the developing countries on the basis of the "development dimension". 
4.232.  In this connection, we wish to stress the leadership displayed by Indonesia in the WTO and 
other forums on the need to consolidate the TRIPS Agreement through the inclusion of a mandatory provision for the disclosure of the origin of genetic resources and/or associated 
traditional knowledge. This is a position which my country fully shares and promotes in conjunction 
with Indonesia. We likewise support the use made by Indonesia of the flexibilities under the TRIPS 
Agreement, through the establishment of compulsory  licensing to permit the use of pharmaceutical 
patents for public health needs. Ecuador has followed a similar policy in this sphere by establishing 
compulsory licensing for specific medicines. 
4.233.  Although our bilateral trade relations are st ill embryonic, there is a balance in favour of 
Indonesia. Indeed, between 2007 and January 2013, Ecuador's exports amounted to only about 
US$19 million, while Indonesia, over the same period, consigned goods to Ecuador of a value close 
to US$241 million. Ecuador maintains a strong interest in consolidating trade relations with Indonesia and for that purpose has initiated approaches at government level with a view to 
achieving the stated objective. 
4.234.  We wish to express our appreciation to Indonesia for its readiness to host the Ninth 
Ministerial Conference of the WTO and we look forward to the satisfactory conclusion of the 
meeting under its coordination. 
MOROCCO 4.235.  After showing strong resilience in the face of the global financial crisis in 2009, the 
Indonesian economy rebounded well in 2010, with a growth rate of 6.1%. 
4.236.  In 2011, exports and investment contributed to a remarkable upturn in foreign trade. 
Exports amounted to US$201.5 billion, or double the figure recorded in 2006 (US$103.5 billion). 
4.237.  Foreign direct investment flows rose to US$13.3 billion, an increase of 173% compared 
with 2008 (US$9.3 billion). 
4.238.  Morocco welcomes this growth, which continued to accelerate in 2011, reaching a level of 
6.5%, and thus placing Indonesia at the top of the ASEAN rankings. 
4.239.  Morocco also welcomes the fact that Indone sia is one of the ten countries most frequently 
cited by transnational firms as a leading destination for direct investment in 2011 2013. 
4.240.  The Indonesian Government has played an impressive role in reviving its economy, in 
particular through effective policy management and substantial reforms which have served to 
strengthen the macroeconomic framework, liberalize the international trade regime and produce 
good economic results. 
4.241.  Indonesia has also established a Master Plan for the Acceleration and Expansion of 
Economic Development 2011 2025, which provides for US$470 billion in investment by 2025; the 
Government thus aspires to make Indonesia one of the ten leading world economies within 15 years. WT/TPR/M/278 • INDONESIA 
 
- 39 - 
 
  4.242.  Indonesia takes an active part in the agriculture negotiations and is a member of the G-33 
to which it submitted a proposal on special products and special safeguard measures. Its proposal was based on the interests of developing and least developed countries, namely poverty reduction, food security, rural development and economic growth. 
4.243.  Morocco welcomes the support given by Indonesia to the LDCs in terms of aid for trade, 
with the aim of improving their integration into the world trading system, and in particular its aid in the context of the South South cooperation mechanism, in the form of technical assistance. 
4.244.  Morocco also takes this opportunity to congratulate Indonesia on the active role it has 
played in the negotiations under the Doha Round since its launch in 2001, as well as on its commitment and resolve to conclude those negotiations at the Ninth WTO Ministerial Conference in Bali. 
4.245.  We would also highlight Indonesia's commitment and its contribution to regional 
cooperation, in particular to the development of ASEAN, the East Asia Summit and the G-20. 
4.246.  Indonesia also takes an active part in negotiations within the Asia-Pacific Economic 
Cooperation (APEC) forum and the Organization of Islamic Cooperation (OIC). 
4.247.  Indonesia is strongly attached to the multilateral trading system and to trade liberalization 
in the WTO framework. 
4.248.  Indonesia's commitment to promoting the mu ltilateral trading system is reflected in the 
strengthening of its trade relations and the diversification of its partners. 
4.249.  Morocco congratulates the Indonesian Government on its successful and impressive track 
record of recent years and on its remarkable dynamism within the multilateral trade context. 
HONDURAS 
4.250.  The Secretariat report highlights the fact  that the Indonesian economy partially succeeded 
in avoiding the adverse effects of the 2008 global recession thanks to its large domestic market 
and low degree of dependence on foreign trade. In the wake of the global economic slowdown, 
Indonesia recorded steady economic progress, wi th an average annual real GDP growth rate of 
5.9%. It should be emphasized that per capita GDP doubled to US$3,500, while the incidence of 
poverty declined from 24% to 12.4% in 2011. 
4.251.  Taking into account its solid economic fundamentals and its active participation in 
multilateral activities, there is no doubt of the important role played by Indonesia today in the global economy. It is currently the 17th largest economy in the world and the fifth largest in Asia. 
Its exceptional macroeconomic results are attributable to sound policy management and the major 
reforms undertaken since the Asian crisis, which have strengthened the macroeconomic framework and liberalized the international trade regime. 
4.252.  We note with satisfaction the Government's goal of accelerating and expanding economic 
development in order to make Indonesia a develo ped country by the year 2025. To that end, the 
Master Plan for the Acceleration and Expansio n of Economic Development 2011 2025 was adopted 
in 2011, and according to the Government report, it s implementation is expected to constitute the 
engine of strong, inclusive and sustainable economic growth, while becoming an important source of job creation. However, Indonesia faces various challenges, such as: diversifying its sources of growth, accelerating infrastructure development and closing the development gap between eastern 
and western regions. 
4.253.  In the trade policy context, Indonesia gran ts MFN treatment to all WTO Members. In order 
to improve its trade and investment policies, Indonesia has enacted new laws on investment, the 
SPS regime, export financing and special economic zones, as well as on agriculture, fisheries, 
mining and tourism, among others. 
4.254.  In the WTO context, Indonesia has played a very active and important role in the round of 
negotiations under the Doha Development Agenda, so much so that it will host the next Ministerial WT/TPR/M/278 • INDONESIA 
 
- 40 - 
 
  Conference. Under its chairmanship of the G-33, of which Honduras is also a member, important 
proposals have been developed on special products and special safeguard measures, which are aimed at combating poverty, and achieving f ood security, rural development and economic 
growth. 
EL
 SALVADOR 
4.255.  We are pleased to see from the reports su bmitted that Indonesia's economic growth during 
the period of this review has reached an annual average level of close to 6.5%, the highest rate 
for the period 2007 2011 and the highest also since the economic crisis of 1997 1998. 
4.256.  We note that, since the last review in 2007, Indonesia's efforts have yielded steady 
economic growth, and it has developed trade polic ies which provide employment opportunities for 
its population, such as the Master Plan for the Acceleration and Expansion of Economic 
Development 2011 2025, adopted by the Indonesian Government in 2011, as well as the 
promotion of initiatives to reduce poverty levels, such as the Long-Term Development Plan (2005 2025) which has set broad targets for economic growth and poverty alleviation. 
4.257.  According to the reports submitted, Indonesia has continued reaping the benefits of the 
trade liberalization and structural reform process, and has enacted new laws relating, inter alia, to investment, the SPS regime, export financing and special economic zones, as well as agriculture, 
fisheries, shipping, mineral and coal mining, and tourism. These will result in the expansion of 
exports, as well as imports, thereby enhancing the attractiveness of the investment climate and boosting infrastructure development, the busine ss environment and investment. That having been 
said, we wish to emphasize that these improvements will only take place if those initiatives are 
supplemented by procedures to facilitate the establishment of investors. 
4.258.  Like other developing country Members such  as El Salvador, Indonesia faces difficulties in 
improving and securing access to foreign markets for its main exports and increasing competition, 
and we therefore agree on the fact that it is the multilateral WTO framework which provides 
optimum scope to address these issues. 
4.259.  We thank the Government of the Republic of Indonesia in advance for all the efforts its 
making in preparation for the Ninth WTO Ministerial Conference, the importance of which cannot 
be overstated. 
4.260.  Furthermore, we would lay stress on the active leadership role of Indonesia in the current 
round of negotiations, and in this connection and with regard to the WTO agriculture negotiation, 
El Salvador shares common interests with Indonesia, which coordinates the group of developing 
countries known as the G 33, promoting the issue of  special products and the special agricultural 
safeguard, which is intended to ensure food se curity, rural development and the security of the 
means of subsistence of our populations, as well  as to address sensitive areas of our domestic 
economies, which largely depend on the agricultural sector. 
BENIN 
4.261.  The delegation of Benin highly commends the excellent results obtained by Indonesia in 
the economic, trade and social spheres, and expresses its sincere congratulations. 
4.262.  Indeed, since the previous review, an d to this date, the Indonesian economy has 
performed well, despite the difficulties caused by the global economic and financial crisis. 
4.263.  In a world context which, on the face of  it, is unfavourable, the Indonesian economy has 
recorded steady growth, with an average annual re al growth rate of 5.9% in the gross domestic 
product (GDP). 
4.264.  During the first three quarters of 2012, this growth rate stood at 6.3%. 
4.265.  Thus, in order to sustain existing achiev ements and continue on the path of growth, the 
Indonesian Government adopted the National Long Term Development plan for 2005-2025, which 
has as its aim, by 2025, to make Indonesia a developed country and one of the ten largest WT/TPR/M/278 • INDONESIA 
 
- 41 - 
 
  economies in the world, through a radical and efficient transformation of the domestic economy 
which is firmly oriented towards strong, comprehensive and sustainable economic growth. 
4.266.  The Indonesian Government has also introduced major economic and trade reforms, 
including the following: 
 establishment of the single window in 2007; 
 also in 2007, adoption of a new law on foreign direct investment; 
 creation of several regional economic zones and special economic zones; 
 thoroughgoing reform of the banking and financial system; 
 development and implementation of coherent sectoral policies to streamline procedures; and 
 development of production infrastructure in se veral fields (agriculture, energy, transport, 
 telecommunications, etc.). 
4.267.  The Indonesian Government is implementi ng a bold policy of employment promotion and 
poverty reduction. 
4.268.  As the fifth largest economy in Asia, Indonesia participates in the implementation of the 
Aid for Trade initiative, both as a beneficiary and a donor. 
4.269.  The delegation of Benin highly values th e support provided by Indonesia to the LDCs in 
their efforts to achieve full and effective integration in the multilateral trading system, and its 
contributions to some of them in the context of technical assistance under the heading of South 
South cooperation. 
4.270.  It welcomes with great satisfaction the announcement made this morning by the 
Indonesian Government that it will offer duty-free and quota-free access to its markets for 
products originating in the LDCs. 
4.271.  We urge Indonesia to expand the number of beneficiaries of its assistance, as well as the 
areas in which it is offered, which could cover sectors of importance to the LDCs such as trade 
related infrastructure and building production capacity. 
4.272.  The delegation of Benin would also like to  commend Indonesia's active involvement in the 
multilateral trade negotiations under the Doha Round. 
4.273.  It reiterates its congratulations to Indonesia on its generous offer to host the Ninth WTO 
Ministerial Conference and the accelerated efforts to prepare for that important meeting which is 
taking place at a key stage of the negotiations. 
NEPAL   
4.274.  Indonesia is a good friend of Nepal. Indonesia's remarkable economic progress has been 
exemplary for all developing countries and we express our best wishes for the continuity of the same in the coming years. 
4.275.  We believe that the economy in South-East Asia, with Indonesia's appropriate policy 
instruments, could significantly impact on other economies and play a crucial role in contributing to the implementation of trade and to the poverty alleviation in the region and in the world at 
large. 
4.276.  Nepal would like to express its sincere appreciation to the Indonesian Government for its 
trade policy measures and would like to welcome the Indonesian Government's new initiative of duty-free and quota-free market access to all least developed countries. 
4.277.  We are hopeful that with the Indonesian Government hosting the Bali Ministerial 
Conference it will come with concrete outc omes that would be beneficial to all.  WT/TPR/M/278 • INDONESIA 
 
- 42 - 
 
  CUBA 
4.278.  The reports submitted show the positive re sults achieved in the implementation of a trade 
policy that responds to national interests and demonstrates the importance attached by Indonesia to the multilateral trading system. 
4.279.  Indonesia participates actively in the WTO, particularly on development-related matters. 
Particular mention should be made of its work as a member of the G 20 and as Coordinator of the G-33, where proposals have been put forward that  are of great significance for poor and low 
resource countries in the agricultural sector, such as those concerning special safeguard measures, 
special products and food security, on which we share common positions. 
4.280.  In the area of bilateral trade relations, Cuba's trade with Indonesia has been increasing in 
recent years. Our two countries are working to foster economic links by promoting business 
meetings. In May 2012, a negotiating forum was held, which helped identify common interests. 
4.281.  The Cuban delegation is genuinely satisfied at the success achieved by Indonesia in 
growing its economy and we encourage it to cont inue developing policies capable of meeting the 
great challenges arising out of the international economic crisis facing developing countries. 
4.282.  We wish Indonesia every success in this sixth Review and in the preparation of the Ninth 
Ministerial Conference in Bali. WT/TPR/M/278 • INDONESIA 
 
- 43 - 
 
  5  REPLIES BY THE REPRESENTATIVE OF  INDONESIA AND ADDITIONAL COMMENTS 
5.1.  Allow me first of all to extend my deep appreciation to H.E. Joakim Reiter, Chair of TPRB, 
H.E. Martin Eyjólfsson, the discussant and all partic ipants of this Indonesia’s TPR for their positive 
comments as well as their valuable questions. Indonesia highly appreciates the questions 
indicating Members’ great interests to Indonesia’s trade policies during the period under review. 
For Indonesia, those questions would be placed as  a good drive for further strengthening our trade 
and trade-related policies while also continuing our economic development.  
5.2.  Being the fourth most populated country in th e world, the complexity of problems in terms of 
its social structure and geographical peculiarities, Indonesia’s economy is still facing great challenges, particularly in catering its particular development needs. This is certainly not an easy task and requires bold policy of the Indonesian government to safeguarding the interest of 
majority of its population. Like other developing countries, it is imperative for Indonesia to have 
some more space in designing public policies, particularly for addressing its development needs.   
5.3.  Against this backdrop, Indonesia’s policy setting may be seen somewhat unpredictable, and 
this seems to inspire Members to pose questions in this Trade Policy Review. As I mentioned in my 
opening remarks, the policies that we adopt in recent years are “living policies”. Thus, they evolve and are readjusted and recalibrated to commensur ate with the challenges emanating from the 
volatility of global economy. However, I would like to assure all Members that Indonesia’s policies 
will remain abide to its commitment with the WTO provisions.   
5.4.  Indonesia is of the views that the broa d thrust of the Members’ questions and comments 
mainly relate to several areas i.e. import licensing, safeguard measures, customs procedure, 
standards, banking, export restriction, SPS, pr e-shipment inspection, investment policy including 
Master Plan for the Acceleration and Expansion of Indonesia’s Economic Development (also known 
as MP3EI).  
5.5.  As requested by some members, it is our great pleasure to share information on MP3EI. The 
Master Plan is aimed at accelerating the expansion of economic development intended to drive a self-sufficient, advanced, just, and prosperous In donesia by 2025. The implementation of MP3EI is 
carried out in cooperation with various stakeholde rs. The 22 main economic activities under this 
framework covers among others shipping, textiles , food – beverages, steel, palm oil and rubber. 
These main economic activities are designated ba sed on the inherent potential and strategic value 
of six economic regions/corridors which are expected to boost economic development throughout 
the nation.  
5.6.  As an initial step, the Master Plan mainly focuses on developing infrastructure, such as 
construction of transportation routes, information and communication technology (ICT). It 
enhances connectivity among the regions and reduces transportation as well as logistical costs 
through the development of industrial clusters and special economic zones (SEZ), which in turn would accelerate economic growth. In 2013, 146 ground-breaking projects worth US$54.5 billion 
are expected to be launched.  
5.7.  We understand some concerns of the Member s on the lack of coordination in implementing 
our trade and trade-related policies. As mentioned in our opening statement that Indonesia is a country of a moving picture as well as reco gnizing the Members’ comments on the vast and 
diverse characteristics of Indonesia, creating solid coordination remains to be our greatest 
challenges. 
5.8.  This issue relates to the process towards the strengthening of Good Governance. Since 2006, 
Indonesia has undertaken bureaucratic reform with three government institutions as the pilot 
projects i.e. the Ministry of Finance, Supreme Co urt and The Audit Board of Republic of Indonesia. 
In 2010, through Presidential Decree No. 81 year 2010, Indonesia issued Bureaucracy Reform 
Grand Design 2010-2025. This means a major change  in Indonesian Government paradigm as to 
enable the country in facing the 21st century challenges. The reform involves thousands of overlapping processes across government institutions, millions of public officials, and requires a huge amount of budget. It restructures the bureaucratic processes from the highest to the lowest 
level. The process of the reform is taken gradually through concrete, realistic and diligent efforts. 
Indonesia is also striving to strengthen and modernize policies and practices of central and local WT/TPR/M/278 • INDONESIA 
 
- 44 - 
 
  government management, and adjust the functions of government agencies with the task 
paradigm and new roles. 
5.9.  To take as examples are the Indonesian National Single Window (INSW) launched in 2008 
and the One Stop Services For Investment (OSSI) in 2009. INSW allows single submission, 
processing and synchronizing data and information as well as single customs clearance decision 
and cargo release (single exit and single entry point). OSSI is aimed at reducing bureaucratic red tape which expedites the process of business license issuance. 
5.10.  My delegation would like to express sincer e appreciation for inviting Indonesia to join the 
GPA and ITA expansion. On joining the GPA, Indonesia still requires a room to strengthen our domestic industry competitiveness. We are committed to simplifying continuously the procedures and applying the electronic procurement system accordingly under one roof system throughout 
Indonesia. It is the National Public Procurement Agency (LKPP) who has the role to set up policy 
guidance for public procurement system. All details procedures including the complaint mechanism has been regulated under the Presidential Regu lation No 70/2012. While on ITA expansion, 
Indonesia continues studying the merit of joining the negotiation of ITA II. 
5.11.  Let me now address the very concern of several members on some issues. On import 
licensing in particular in the area of agriculture, I would like to emphasize the strategic role of 
agriculture in Indonesia. Forty per cent of labour force depend their livelihood on this area. 
Therefore our policy is mainly mainstreamed towards the agricultural development. In order to ensure food security, Indonesia has also developed a policy mix of allowing import of agricultural 
products. Indonesia takes this issue seriously and is currently undertaking domestic consultations 
with all stakeholders to assess and review the regulations to be more compliance with the WTO 
provisions. As it is the responsibility of a gove rnment to ensure the sanitary and safety of the 
imported products, Indonesia has also exercised its rights to apply SPS requirements and 
measures. In this regard, Indonesia maintains its utmost efforts to implement the measures based 
on scientific evidence, equivalent SPS measures applied by other Members, as well as standards developed by international standard setting bodies, such as the Codex Alimentarius, OIE, and 
IPPC. 
5.12.  In recent years, Indonesia Quarantine Agency has identified and found 15 exotic plant 
diseases alien to Indonesia originating from imported horticultural products, mostly entering the Tanjung Priok sea port. The lack of adequate facilities and human-resource capacities to inspect, 
control, and execute quarantine treatment has forc ed the Government to opt policies to ensure the 
sanitary and phytosanitary of imported products. Such policies include the closure of several under-facilities ports, temporary ban, and the implementation of Certification for Mutual 
Recognition for Food Safety System and Freedom from Fruit Flies Status. Indonesia is one of the 
countries in the world that is free from foot and mouth disease. Thus we have to ensure that the importation of agricultural and animal products meets the national requirements.  This policy is 
also implemented to certain non-agricultural products such as toy products, cosmetic and food and 
beverages, to ensure consumer protection.  
5.13.  We highly appreciate the concerns raised by Members on the import licensing issues. We 
are currently reviewing our policies in respond to those questions and the results will be expected 
in a few weeks. 
5.14.   Regarding the issue on standards, I would like to underline that Indonesia aligns its 
standardization policy with international standards, such as toys safety standards as well as 
converter kits. Indonesia will continue to expand gradually on other products with international 
standards. Currently, around 20 % of our national standards are harmonized with international standards, and we will expedite the process of  adopting international standards through among 
others fast track system. 
5.15.  With regard to the import of steel prod ucts, our policy is to regulate the intermediate 
products rather than the end products. This facilitates the Government to conduct market surveillance, taking into account the specific condition and the availability of technical 
infrastructure.  WT/TPR/M/278 • INDONESIA 
 
- 45 - 
 
  5.16.  On Pre-Shipment Inspection, Indonesia app lies Technical Verification on imported goods in 
the Port of Loading to clarify the type and specific ation of product, as well as to ensure that the 
imported goods fully meet with the requiremen ts stipulated in the national regulations. 
5.17.  Indonesia faces environmental challenges in its effort to achieve sustainable economic 
development. In this regard, our policies in addressing the trade related resources, is aimed at 
conserving the exhaustible natural resources while at the same times ensuring sufficient availability for domestic development. These are the very underlining reasons for the 
implementation of export restriction and export duty on mining. 
5.18.  On banking, Indonesia's policy is geared  towards enhancing resiliency and competitiveness 
of banks to safeguard financial stability, establis h an efficient banking industry, and contribute to 
national economic development through increasing the intermediation function.  
5.19.  The provisions of Bank Indonesia Regu lation concerning commercial bank ownership 
stipulate the limitations of maximum share ow nership in Banks based on the shareholder 
categories and the relationships between bank sh areholders. This regulation applies equally for 
both domestic and foreign shareholder and is not intended to capping bank’s ownership by 
foreigners and not limits market access for foreigners to participate in Indonesian banking activities.  
5.20.  The background of Bank Indonesia Regulati on concerning commercial bank ownership is in 
order to strengthen and enhance Indonesia’s banking resilience through implementation of prudential and good corporate governance principles . This provision is also provided to encounter 
the growing dynamic of recent global and regional  economic development. Achieving these goals, 
Bank Indonesia needs to regulate banks ownership structure by setting share of ownership 
maximum limits in order to reduce the adverse impact of bank operation as a result of shareholder domination. 
5.21.  All in all, I understand that our response may not be comprehensive and satisfactory. On 
top of that, we will ensure that we will complete the written response in due course. We are also open to further discussion with all Members to address their specific concerns thoroughly. This 
multilateral peer review mechanism proves to be very beneficial for Members to tap maximum 
benefit of multilateral trading system. 
5.22.  Before concluding this statement, I feel obliged to share with all delegates that by 
undertaking this trade policy review, Indonesia could gain better reflections on her trade policies. 
This mechanism is not only providing Indonesia wi th a better understanding on the impacts of its 
trade policies to the respective trading partners, but more significantly, also assisting us to indicate imperfections as well as offering alternative solutions for Indonesia’s trade policies. As an 
old proverb says ‘we are building the ship as we sail it’. Thus we believe that the sizable questions 
will help us build the ship.    
5.23.  It is therefore, Indonesia appeals to all Members to conserve this multilateral trading 
system which is now at stake due to the impasse of the DDA. In this regard concrete and 
concerted efforts towards the conclusion of the Doha Development Agenda are urgently needed. We require re-doubling our pace, changing our mindset and injecting more political will to reinvigorate the negotiation process. Ensuring that  MC9 in Bali delivers fruitful and meaningful 
outcome will play significant role towards the full conclusion of DDA. Failure is certainly not an 
option, as it would be the epitaph of the multilateral trading system. 
DISCUSSANT 
5.24.  In my intervention I will  try to pick up on some of the messages and comments by Members 
from the first day – both positive ones as well as when Members have spotted imperfections in Indonesia’s trade policy. 
5.25.  A couple of days ago we had fruitful an d enlightening exchange of views. From the number 
of questions, the approximately 750, we received, it should be clear that the Indonesian economy 
is of key interest to the WTO Membership. WT/TPR/M/278 • INDONESIA 
 
- 46 - 
 
  5.26.  On Wednesday Indonesia was generally commended for her economic performance since 
the last TPR. Eight years of 6% growth, increased investment, strong fiscal position, stable purchasing power and decreased unemployment and poverty levels were hailed. The debt to GDP ratio level is something that even Joakim’s empl oyers in Stockholm would envy not to mention my 
own bosses in Reykjavík. 
5.27.  So, I think it is a fair assessment to claim that there is consensus in the room that 
Indonesia's economy has been among the brighter performers in Asia during the past years.  
5.28.  Regulatory reforms such as better proced ures for registering and licensing businesses, 
enhanced climate for FDI, measures to speed up property registrations and building permits and developments of initiatives to curb corruption were also looked at positively by Members in the Wednesday session. 
5.29.  All this being said and not to be underestimated, the membership was also critical. 
Especially of the developments in the past co uple of years where some felt that economic 
modernisation had been side-lined in favour of domestic industries.  
5.30.  What was mentioned in this context was i.e. pre-shipment inspection requirements, foreign 
equity restrictions, import licensing requirements, i.e. for horticulture products, significant decrease of import quotas, especially for livestock products, export restrictions, i.e. in the area of 
mining, and trading rights limitations. The importan ce of increasing the numbers of licensed import 
ports was furthermore underlined. 
5.31.  The prudent and sparse use (and desirable the non-use) of safeguards lies close to the WTO 
heart and the extensive initiation of safeguar ds by Indonesia, 16 new ones since 2010, was 
criticized by some members, as well as anti-dumping measures.  
5.32.  The low scores in the World Bank and Transp arency International Indexes were described as 
worrisome while efforts to curb corruption were also praised. 
5.33.  Many Members have noticed Indonesia’s se rious efforts in enhancing GP system and would 
highly welcome Indonesia’s full membership of the Government Procurement Agreement. So I guess they were a little bit disappointed when on Wednesday, Indonesia stated that it was not on 
the agenda to join the GPA “anytime soon”. It is furthermore safe to say that Indonesia’s formal 
participation in the negotiations of the expand ed coverage of the ITA would also be highly 
welcomed by the members of the WTO. 
5.34.  So now I will allow myself to sum up the criticism in the following manner:  
5.35.  Whilst the aim to transform Indonesia into  one of the top ten economies in the world by 
2025 is widely acknowledged and the decade long pa inful restructuring for banks and companies is 
applauded the recent trends of renewed protectionism is regarded by some Members as 
ill-considered and a renewed openness to foreigners would be highly appreciated.  
5.36.  One of Indonesia’s main tasks is the enor mous structural and geographic challenge it is 
faced with. Foreign money to finance much-needed roads, ports and power plants are needed, 
even more so in light of the present current account deficit. Shaking off the confidence of 
international investors would be costly and legitimate and easily understandable domestic interests will have to be reconciled with international obligations.  
5.37.  On Wednesday, the Indonesian Head of De legation Vice Minister Krisnamurthi, emphasized 
that the policies Indonesia has adopted in recent months and years are “living policies” and will 
“evolve and be readjusted”.  
5.38.  I think that I talk on behalf of all Members participating in this TPR when I say that they 
would appreciate if their comments, both the positive  and critical ones, will be kept in mind in the 
constantly on-going readjustment phase not least that they be kept informed of imminent changes that can affect their economic operators in one way or another. 
5.39.  Finally I want to mention Indonesia’s lead on trade.  WT/TPR/M/278 • INDONESIA 
 
- 47 - 
 
  5.40.  On Wednesday, Indonesia as a load bearing and responsible partner of the international 
trading system was widely recognised and applauded. To mention a few, her key roles in the G-20 and in the ASEAN integration process as well as a leading role in the DDA round is both welcomed and highly appreciated. This year is especially  important for Indonesia and members are grateful 
for her role as the host of the MC9 in Bali wh ich will hopefully restore the confidence of the 
multilateral trading system.  
5.41.  It is obvious that Indonesia has assumed the role of a key global player that will only grow 
ever more important in the near future. 
EUROPEAN
 UNION 
5.42.  The EU would like to thank the delegation of Indonesia for the replies to our advance 
questions and for the additional information provided this morning. 
5.43.  The EU has carefully examined the replie s provided by Indonesia and acknowledges that 
Indonesia commits to reply to some of its questi ons after the deadline. Regarding the replies that 
Indonesia has already supplied the EU notes with  regret that they do not provide sufficient 
explanations on various aspects. While we recognize that it is a challenge to reply to a large 
number of questions in a short period of time, we ha ve to insist on satisfactory replies. Therefore 
we have, exceptionally, prepared a comprehensiv e list of follow-up questions and I will only 
mention a few areas here: 
 The surge in the use of safeguards instruments and its compatibility with the WTO; 
 The need that Indonesia ensures appropriate and timely consultation of stakeholders prior to 
adopting key legislation that impacts on trade and investment such as but not only the draft 
trade and industry law, the SPS measures, the negative list scope and to do so sufficiently 
on time so that input can be collected; 
 The impact of the labelling requirements for various products; 
 The lack of consistency of the trade policy objectives of several key laws either adopted or 
under draft with the commitments of Indonesia to fight protectionism and support the multilateral trading system (e.g. food law, draf t Industry and Trade Laws and the revision of 
the negative list); 
 The clarification of the legislation and measures  related to the scope and the enforcement of 
Intellectual property rights; 
 The legislation affecting the mining sector following the ruling of the Supreme Court. 
5.44.  Given the important responsibilities that In donesia plays in the multilateral trading system, 
the EU considers that it is of utmost importance that Indonesia acts in conformity with its commitments taken in the WTO and the G-20 to fight protectionism. The EU has strong 
expectations that Indonesia shall take seriously th e concerns expressed by its partners during this 
Trade Policy Review and will do its utmost to address them as well as to reply to all the questions raised by the Members. 
UNITED
 STATES 
5.45.  We appreciate Indonesia's efforts to respond to our advance written questions. As we noted 
on Wednesday, we remain concerned regarding the direction that Indonesia has taken with regard to its trade policy, especially in light of the large number of trade and investment restrictions 
Indonesia has introduced and implemented since its last TPR.  
5.46.  We are also troubled by the lack of transp arency surrounding some of these policies. To that 
end, we would urge Indonesia to continue its e fforts to enhance the transparency of the trading 
regime including by submitting its required WTO no tifications, many of which are well overdue. We 
remain committed to working together to enhance our trade relationship bilaterally and within the WTO rules.  
5.47.  We have submitted follow-up questions for Indonesia regarding areas where we would seek 
additional clarification. We would also note that Indonesia indicated that several answers would be provided later. We remain interested in answers to all questions submitted and look forward to receiving Indonesia's responses. WT/TPR/M/278 • INDONESIA 
 
- 48 - 
 
  JAPAN 
5.48.  Japan expresses our sincere appreciation for the effort made by the Indonesian delegation 
for providing us with informative oral explanation of our concerns. I also appreciate the helpful comments from the discussant, H.E. Mr. Martin Eyjólfsson. 
5.49.  Regarding the answers to our questions provided in a written manner, we are still carefully 
considering the answers, however, at this stage. Japan is submitting another follow-up question on 
illegal logging and smuggling of timber. We are looking forward to receiving an answer to the 
question in due course.  
5.50.  Finally, we reiterate our hope that Indonesia will address various concerns raised by 
Members and thereby play a leadership role in furthering liberalization of trade for the success of the WTO and the 9th ministerial conference and APEC meetings which Indonesia will host this 
year. 
5.51.  I wish the Indonesian delegation a pleasant stay here in Geneva and a safe trip back to 
Jakarta. 
CHINA 
5.52.  China submitted advance written questions, they reflect concerns of us on certain practices 
and measures of Indonesia but more our interest in getting to know better the country, in 
particular its trade-related regimes and policies. 
5.53.  We thank Indonesia for the detailed responses provided for our questions and will bring 
them to the relevant authorities back in Beijing for more in depth study. We added several more questions. It is our believe that the valuable information provided to us will further enhance our 
cooperation with Indonesia, both bilaterally and regionally. 
SRI
 LANKA 
5.54.  Sri Lanka appreciates the efforts of Indonesia for sharing valuable information on many 
aspects of the Indonesian trade policy. Sri Lanka has also noted that Indonesia would respond to 
our concerns that we raised the first day of th e meeting and we look forward to receiving the 
responses. 
ECUADOR 
5.55.  Ecuador appreciates the replies and comments submitted by Indonesia. We recognize the 
delegation's effort to answer the various questions posed by Members. However, Ecuador wishes to improve its understanding of the formulation and implementation of specific fiscal and 
commercial policies adopted by Indonesia. 
5.56.  To that end, we have submitted some addi tional questions and, in addition to any written 
replies that Indonesia may provide, we are keen to hold bilateral meetings in Jakarta in order to 
discuss the replies in more depth. 
INDONESIA 5.57.  I would like to give my higher appreciation to all Members who submitted additional 
questions and follow-up questions. I can ensure you that my team and I we will do our maximum 
to answer in due time as provided by the WT O regulations. We would like to thank all the 
observations and concerns on Indonesia and wish you to see all of you in Bali. WT/TPR/M/278 • INDONESIA 
 
- 49 - 
 
  6  CONCLUDING REMARKS BY THE CHAIRPERSON 
6.1.  The sixth Trade Policy Review of Indonesia has enabled us to improve our understanding of 
the key developments in its trade and trade-related policies since its previous review in 2007, and of the challenges it faces. The Government and Secretariat reports, together with Indonesia's 
written responses to the numerous questions by Me mbers, have contributed to the transparency of 
Indonesia's trade policies and practices. Our discussion has clearly benefited from the active participation of the Indonesian delegation, led by the distinguished Vice-Minister for Trade 
Mr. Bayu Krisnamurthi, as well as from the insightful contribution of the discussant, Ambassador 
Martin Eyjólfsson, and the numerous interventions by Members. I thank Indonesia for its constructive engagement and commitment to this exercise. 
6.2.  Members commended Indonesia on its strong economic performance during the review 
period, characterized by the doubling of GDP per ca pita and the halving of poverty incidence from 
its post-crisis peak. Indonesia has made solid progress in consolidating economic reform. Improvements to the business climate, strong do mestic demand, low export dependence, together 
with sound macroeconomic management, saw Indonesia get through the global financial crisis. 
Members noted that Indonesia is looking to facilitate growth and transform Indonesia into a developed country by 2025 under the far-reaching reform programme in the government's Master 
Plan for the Acceleration and Expansion of In donesia's Economic Development. Members noted 
also the remaining challenges to Indonesia’s future economic development, inter alia , economic 
and trade diversification, infrastructure and income distribution, as well as the business environment and governance.  
6.3.  Stressing Indonesia's growing economic prominence globally, including as a G20-country, 
Members appreciated the constructive role played  by Indonesia on the international stage as a 
driver of integration in ASEAN, chair of APEC, coordinator of the G33 and host of the WTO 
Ministerial in Bali in December, a clear sign of Indonesia's commitment to the international trading 
system and to achieving a meaningful package of  deliverables under the DDA mandate. Members 
further warmly welcomed Indonesia's statement, on  10 April that it will provide duty free, quota 
free treatment to LDCs.  
6.4.  At the same time, however, Members expressed their growing concern about new trade and 
investment measures that raise important questions about the direction of trade and investment policy-making in Indonesia and that seem at times to be at odds with Indonesia’s professed 
support for open trade and strengthening the multilateral trading system. From a close 
examination of the observations made by delega tions, it appears to me that the Indonesian 
authorities need to reflect carefully on what has been said and might consider introducing changes 
or improvements in certain areas and I have noted Vice-Minister Krisnamurthi's remarks in this 
regard:   
 Customs and related reforms:  while praising Indonesia's efforts overall in the area of 
customs reform, not least in Single Window, Members urged Indonesia to reconsider a 
number of trade restrictive measures - including import licensing and permit requirements, which apply to a broad range of products and cover around 20% of all tariff lines and other measures such as point of entry restrictions on imports, pre-shipment inspection 
requirements as well as various export taxes and prohibitions - which have the effect of 
disrupting trade and reducing access to Indonesian markets. Members encouraged 
Indonesia to make further efforts to simplify complex and opaque import requirements and 
procedures and make them more transparent. 
 Standards and other technical requirements:  some Members pointed to the insufficient 
use by Indonesia of international standards an d the lack of evidence supported by risk 
analysis for certain SPS-related measures that impede trade and investment. 
 Trade remedies:  Members noted with some concern the increasingly frequent use of 
safeguards investigations, concerning which Indonesia was encouraged to exercise diligence in following established rules governing their use.   
 Investments:  ownership limitations on banks and some other services sectors 
(broadcasting, maritime etc.) and certain divestment requirements for foreign mining WT/TPR/M/278 • INDONESIA 
 
- 50 - 
 
  companies under the 2009 Mining Law and the 2012 mining regulations, as well as 
investment conditions and local content requirements, present challenges for the current and future foreign investors and are examples  of questions raised by Members about the 
increasing complexity and restrictiveness of regulation. While Members welcomed the 
improvements in transparency and the reduct ion in administrative burdens in the 2007 
Investment Law and the on-going liberalization of Indonesia's negative list for investment, 
they also encouraged Indonesia to more periodically review and further reduce its negative 
list for investment.  
 Government procurement:   While welcoming Indonesia’s observership to the GPA, 
members inquired about its plans for accession, as well as about foreign participation in domestic government procurement.  
 Tariffs:  While Members welcomed successive steps taken by Indonesia to reduce its 
average applied MFN tariff rate, which conferred benefits on consumers as well as on firms relying on imported intermediate inputs, they expressed however some concern about the 
difference between average applied and bound rates, creating a large binding overhang, 
which imparts a degree of uncertainty  and unpredictability for traders.  
 Transparency: Members also noted a lack of consultation and transparency associated with 
the development and introduction of various trade-related measures and the point was 
made that notification of regulations that may affect trading partners should be done in a timely fashion before implementation, in order to allow partners the possibility to fully understand them. 
6.5.  Overall, while there was broad understanding among Members for Indonesian policy 
objectives designed to promote domestic production and employment, move the Indonesian economy higher up the value chain and achieve food security, Members strongly encouraged 
Indonesia to make more and better use of trade and investment policies that comply with its 
international commitments, are supportive of the multilateral trading system and better reflect 
Indonesia’s ambitions to have a leading role at the global stage. 
6.6.  This successfully concludes our Review of Indonesia. It has been informative, yielding many 
useful insights into Indonesia's trade policies and practices and the challenges it faces. Let me once again thank the Indonesian delegation, the discussant and Members for contributing to what has been a both detailed and enlightening discussion  and we look forward to receiving Indonesia's 
responses to any outstanding questions, including the follow-up questions submitted over the last 
two days. 
 
 
__________