G/TRIMS/W/158  
 
27 April 2015  
(15-2227)  Page: 1/2  
Committee on Trade-Related Investment Measures  Original: English  
 
 INDONESIA – NEWLY ADOPTED INDUSTRY LAW AND TRADE LAW 
REPLIES TO QUESTIONS FROM THE EUROPEAN UNION1 
The following communication, dated 15 April 2015, is being circulated at the request of the 
Delegation of Indonesia. 
 
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 We refer to the European Union’s questions contained in document G/TRIMS/W/140 dated 16 September 2014, Indonesia hereby wishes to provide the following clarifications:  
 
Questions  
 Could Indonesia clarify the following aspects: 
i. The possibility for the Government to im pose export bans on biological and 
non-biological raw materials (Industr y law) and impose restrictions on 
export and import of certain goods fo r national interest (Trade law);  
Reply 
 
The Trade Law and the Industry Law is formulated  in the spirit of strengthening the national 
economy and taking into account the Indonesian commitment in the WTO.  
 According to Article 32 and 33 of the Industry Law, the Government may take necessary measures 
to secure the availability of the natural reso urce for the domestic needs to support the 
development of domestic industries and to redu ce excessive dependence on the export of raw 
materials through value addition. These measures could be taken with some considerations, e.g: 
 
 to preserve natural resources 
 apply to natural resources which are strategic, non-renewable and limited 
 for the realization of  independent and competitive industrial structure and also maintain the 
price stability.  
 As for in the Trade Law Article 54, the Government may restrict exports and imports based on 
provisions on GATT Article XX, among others: 
 
 necessity to protect national security or public interest; and/or 
 necessity to protect the health and safety of people, animal, fish, plant, and the 
environment.  
 These laws have mandated numerous Implementing Regulations that will further elaborate 
the relevant provisions stipulated in the laws. Formulation of the Implementing Regulations will 
also be guided and deeply take into considerat ion the Security, Safety, Health and Environment 
(K3L-Keamanan, Keselamatan, Kesehatan dan Ling kungan) purposes for consumers, producers, 
market stability as well as international commitments, including WTO. The Government believes 
that this will be regulated and implemented in a manner that is not inconsistent with WTO rules.   
                                               
1 G/TRIMS/W/140.  G/TRIMS/W/158 
 
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  ii. the mandatory use of domestic produc ts and increased use of national 
standards;  
Reply 
 
The mandatory use of domestic products provided for in the Trade Law and the Industry Law will 
be reserved only to government procurement.   
The use of national standards through Indonesia National Standard (SNI) is implemented in 
voluntary basis. For certain products, however, th e standard shall be mandatory. This requirement 
applies to both domestic and imported products. The use of national standard is aimed for consumer protection purposes.  
 
iii. the use of safeguard measures, either  tariff or non-tariff- measures to 
protect the industry from international competition.  
Reply 
 
Safeguard measures are justified and commonly applied by WTO members in the case of import 
surges which cause, or threaten to cause, serious injury to the domestic industry. In 
Indonesia, implementation of  safeguard measures is regulated in the Government Regulation no. 34/2011 concerning antidumping measure, compulsory measure, and trade safeguard 
measure. Article 70 (1) of the Regulation stipulates, any imported goods, may be imposed 
safeguard measure if: 
 
a. there have been a surge of imports absolutely or relatively on goods similar to the like 
products or directly competitive products; and 
b. the surge causes of serious losses or threat of serious losses to the domestic industry.  
 
 Could Indonesia give an indication on the number of implementing regulations 
that have to be issued over the next two years? 
Reply 
 
There are numerous implementing Regulations mandated by the Trade Law which 
includes 9 (nine) Government Regulations, 14 (fou rteen) Presidential Regulations, and 20 (twenty) 
Ministerial Regulations.  
 
 Could Indonesia specify the timeline for publication of the implementing rules 
and whether they will be open to public consultation?  
Reply 
 
Implementing Regulations of the Trade Law an d the Industry Law shall be completed not 
exceeding 2 (two) years after the entry into force of respective laws. Stakeholders will be closely 
engaged in the process of drafting the implementing regulations. 
  
 
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