WORLD TRADE  
ORGANIZATION   
G/LIC/Q/IDN/22 
13 September 2012 
 (12-4903) 
Committee on Import Licensing Original:   English 
  
 
NOTIFICATION UNDER ARTICLES OF THE AGREEMENT ON  
IMPORT LICENSING PROCEDURES FROM INDONESIA
1 
 
Questions from the United States and the European Union to Indonesia 
 
Indonesian Import Restrictions on Horticultural Products 
 
 The following communication, dated 12 September 2012, is being circulated at the request of the delegations of the United States and the European Union. 
 
_______________ 
 
  Ministry of Agriculture (MOA) Regulation 03 and Ministry of Trade (MOT) Regulation 30 
threaten to seriously impede imports by establishi ng a non-transparent, complicated, and discretionary 
import permit system for fresh and processed hor ticulture products.  A lthough Indonesia has 
postponed implementation of this import permit scheme until 28  September 2012, interested foreign 
and domestic stakeholders are perplexed by the complex requirements of the new system and are 
concerned that, if implemented, the new requireme nts would have substantial consequences for access 
to Indonesia's market for a wide range of fresh  and processed horticulture products.  In light of 
Article 1.4(b) of the WTO Agreement on Import Licensing Procedures (also known as, the "Import 
Licensing Agreement"), the United States and the European Union request that the Indonesian 
government not implement Regulations 03 and 30  until we and other Members are given the 
opportunity to discuss our concerns with Indonesia, and so that Indonesia, in turn, will be able to "… 
give due consideration to these comments and results  of discussion."  In this regard, we note that 
Article 1.4(a) of the Import Licensing Agreement requires that "Copies of these publications (including Regulation 38) shall also be made availa ble to the Secretariat."  When will Indonesia make 
such copies available to WTO Member s in light of this obligation? 
  We also observe that Indonesia has failed to notify Regulation 03, published on 1 February 2012 in the State Gazette of The Re public of Indonesia of 2012 No. 148, to the WTO.  
This regulation, which involves the issuance of  import permit recommendations by Indonesia's 
Ministry of Agriculture to the Ministry of Trad e, is an essential component of the proposed new 
system and must be notified, per Article 5.1 of the Import Licensing Agreement, which stipulates that 
Members "shall notify the [Import Licensing] Committee …within 60 days of publication".  
 
 In addition, we have serious  concerns about Indonesia's regul ations in light of other WTO 
Agreements, such as the WTO Agreement on Techni cal Barriers to Trade and the Agreement on the 
Application of Sanitary and Phytosanitary Measures.   We reserve our right to raise issues in the 
context of additional WTO Agreements and their committees that arise as a result of Indonesia's 
regulations.  
 
                                                      
1 See Understanding on procedures for th e Review of Notifications (G/LIC/4). G/LIC/Q/IDN/22 
Page 2  
 
  Comments on Notifications G/LIC/N/2/IDN/5 and G/LIC/N/2/IDN/6 
 
Section 2a) :  The notification states that the following products are subject to the licensing 
procedures:  "Ornamental Products, HS No. 0603; Fr esh Horticultural Products , HS No. 0701, 0703, 
0704, 0706, 0709, 0 710, 0803, 0804, 0805 , 0806, 0807, 0808,  0810; and Processed Horticultural 
Products, HS No. 0712, 0904, 2001, 2004, 2005, 2007, 2008, 2009, 2103."  However, in MOT 
Regulation 30 we note that Appendix 1 does not list all of the tariffs within each of these four-digit 
headings.  If a horticultural product is not in this  list, can it be freely imported without an import 
permit and without restriction?  Please identify each tariff within these 4-digit categories that is not 
subject to MOT Regulation 30 and MOA Regulation 3.  In addition, please confirm that MOT 
Regulation 30 and MOA Regulation 3 cover the same products.   
 Section 2c) :  Indonesia identified only one administrative body for the submission of applications.  
MOA Regulation 3 and MOT Regulation 30, however, specify several administrative bodies from 
which an importer must seek approval in order to  meet the requirements to obtain a Product Import 
Recommendation (RIPH) and/or import license.  Therefore, we ask that Indonesia please list each 
administrative body from which an importer must seek written approval in order to obtain a RIPH and/or import license.   Section 2e) :  How does Indonesia justify its import licenses as "automatic" under Article 2 of the 
Import Licensing Agreement?   It appears that the li censes are not considered or issued until after the 
importer obtains a number of additional licenses, perm its, certificates, etc., from a number of different 
sources.  That is, according to each notification ( G/LIC/N/2/IDN/5 and G/LIC/N/2/IDN/6): 
 
 "Application for securing the appointment as IT  of Certain Products shall be submitted in 
writing to the Director by enclosing the following copy documents of:  
 
 a. Trading License (SIUP)  b.  Corporate Registry Number (TDP);   c.  Taxpayer Code Number (NPWP);   d.  General Producer Importer Identity Number (API-U);  e.  The proof of ownership of cold storage; 
 f.  The proof of ownership of re frigerated transportation equipment; 
 g. The proof of the sales contract of hor ticultural products with at least 3 (three) 
distributors for at least 1 (one) year; 
 h. The proof of experience as a distributor of horticultural products for 1 year;  i. Sufficient stamp duty statement stating that it will not sell horticultural products 
directly to consumers or retailers." 
 and:  "Application for securing the appointment as Producer Importer of Horticultural Products 
(IP-Produk Hortikultura) shall be submitted in writi ng to the Director General by enclosing the 
following copy documents of: 
 
 a. Industrial Business License or other si milar business permit that use Horticultural 
Product raw materials, issued by the competent authority or technical service;  
 b. Corporate Registry Number (TDP);  c. Taxpayer Code Number (NPWP); 
 d. Producer Importer Identity Number (API-P); 
 e. The proof of ownership of cold storage;  f. The proof of ownership of re frigerated transportation equipment; 
 g. The recommendation of Horticultural Product Import (RIPH) from the  Ministry of 
Agriculture or designated official."  G/LIC/Q/IDN/22 
 Page 3 
 
 
   Please indicate "the measure being implemented though the import licensing procedure" as 
requested in the notification template.   
Regulations 03 and 30 
 
 We have numerous concerns regarding Ministry of Trade (MOT) Regulation 30 and Ministry 
of Agriculture (MOA) Regulation 03.  Together th ese regulations constitute an import permit system 
for horticultural products that appears complex, discr etionary, non-transparent, and trade distorting.  
These regulations raise questions in light of Ar ticle 3.2 of the Import Licensing Agreement which 
states that "Non-automatic licensing shall not have tr ade-restrictive or - distortive effects on imports 
additional to those caused by the imposition of the restriction.  Non-automatic licensing procedures 
shall correspond in scope and duration to the measure they are used to implement, and shall be no 
more administratively burdensome than absolutely necessary to administer the measure."  Inasmuch 
as we question whether the administrative procedur es used to implement Indonesia's import licensing 
regime "are in conformity with the relevant provisions of GATT 1994…" (See Article 1.2, Import 
Licensing Agreement), Indonesia's regulations could significantly impair trade. 
  We are particularly concerned that these regul ations may result in unscheduled quantitative 
restrictions, similar to the ones already in place for livestock products.  Furthermore, we question to 
what extent Indonesia imposes these new restrictions on domestically produced goods.   How is the widening gap between the treatment of domestic vers us imported products consis tent with Indonesia's 
General Agreement on Tariffs and Trade (GATT) / World Trade Organization (WTO) commitments? 
  While we were relieved that Indonesia agr eed to postpone the implementation of these 
regulations from June until the end of September (as per Regulation 38), we still have many serious 
outstanding questions and remain concerned that they cannot be addressed by September.  Our 
questions relating to the Import Licensing Agreement are included below.  We reserve our right to 
bring additional questions to Indonesia’s attention in accordance with Article 1.4(b) of the Import 
Licensing Agreement.   Until we can engage in a full and produc tive discussion with Indonesia regarding our 
concerns, as Article 1.4(b) of the Import Licensing Agreement requires, we seek indefinite suspension 
of the measures in question. 
 
QUESTIONS REGARDING REGULATIONS 3 AND 30 
 
 What is the present status of Regulations 03 and 30? 
 
 On 9 July 2012, Indonesia notified "Regulation of the Minister of Trade No. 38/M-DAG/PER/6/2012 dated 14 June 2012 concerning to  The Amendment of The Regulation of The 
Minister of Trade Number 30/M-DAG/PER/5/2012 concerning The Provisions on the Import of Horticultural Products" (G/LIC/N/2/IDN/6).  What is Regulation 38's present status and what is its 
relationship to Regulati on 03 and Regulation 30? 
 
 On 1 February 2012, Indonesia en acted "REGULATION OF MINISTER OF 
AGRICULTURE OF THE REPUBLIC OF INDON ESIA, NO. 03/Permentan/OT.140/1/2012," and 
published it in the "STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2012 NO. 148." The requirement to notify this Regulation is co ntained in Article 5 of the Import Licensing 
Agreement. When will Indonesia notify this Regulat ion to the WTO in light of its obligation?  
  In its notification of Regulation 38 (G/LIC /N/2/IDN/6), Indonesia did not respond to the 
question contained in Section 1(b), i.e., "If the no tified measure refers to a change in an already 
notified import licensing procedure, please indicate th e document symbol of the notification to which G/LIC/Q/IDN/22 
Page 4  
 
  change(s) has(ve) been introduced."  What is I ndonesia's response to this question?  Please confirm 
whether the postponement applies to both Regulations 03 and 30.  When Indonesia notifies Regulation 03, can the government confirm that  it will respond to the question contained in 
Section 1(b) of the WTO notification form?  SPECIFIC QUESTIONS 
 REGULATION 03 OF MINISTER OF AGRICULTURE OF THE REPUBLIC OF INDONESIA  
 
 We are concerned about the government's appa rent disregard for its commitments under the 
WTO Agreement on Import Licensing Procedures. We expect Indonesia to notify Regulation 03 and 
to provide copies of its publication to the Secretaria t for Members' to examine (see Article 1.4 of the 
Import Licensing Agreement).  In accordance with our  understanding of Regula tion 03, we offer the 
following initial comments and questions:   
 Article 7 contains the criteria for determini ng whether to grant an import permit, including: 
production of similar product domestically; domestic  consumption; horticulture product to be 
imported; availability of similar horticulture pro duct domestically; product's potential to distort the 
market; and harvest time of the horticulture product.   How is Regulation 03 consistent with the WTO 
principles of non-discrimination and national treatment; and, how is it consistent with Article 1.3 of 
the Import Licensing Agreement, which states that "T he rules for import licensing procedures shall be 
neutral in application and administered in a fair and equitable manner."? 
  Article 17 stipulates that import permits "shall be valid for a period of three (3) months for 
one (1) time import."  Import permits obtained fro m the Ministry of Trade under Regulation 30, 
however, are valid for one year.  How does Indonesi a reconcile these differing requirements and the 
burden placed on importers under Regulation 3? 
  Why does Regulation 3 require  "every person who will perfo rm import of horticulture 
product to Indonesian territory" to obtain a "H orticulture Product Import Recommendation" (RIPH)? 
Are domestic producers of like horticultural pro ducts also required to meet similar licensing 
requirements? 
 
 How does this Regulation ensure "that impor t licensing procedures are not utilized in a 
manner contrary to the principles and obligations  of GATT 19942 (Preamble to the Import Licensing 
Agreement)?   
 What precisely are the GATT 1994-consistent measures (identified by Article and paragraph) 
that Indonesia’s RIPH is intended to administer (see Article 1.2 of the Import Licensing Agreement)? 
  In light of Article 1.2 of the Import Licensing Agreement, how does Regulation 03 comply with Article 3.2 of the Import Licensing Agreement which states that "Non-automatic licensing shall 
not have trade-restrictive or -distortive effects on imports additional to those caused by the imposition 
of the restriction.  Non-automatic licensing pro cedures shall correspond in scope and duration to the 
measure they are used to implement, and sha ll be no more administratively burdensome than 
absolutely necessary to administer the measure."?   How does Indonesia believe that, with the multiple  layers of review contained in the import 
license system created by Regulations 3 and 30, incl uding those required of an importer in the lead-up 
to actual application for the RIPH, the government is fulfilling its commitment under Article 1.6 of 
the Import Licensing Agreement? 
  G/LIC/Q/IDN/22 
 Page 5 
 
 
  REGULATION 30 OF MINISTER OF AGRICULTURE OF THE REPUBLIC OF INDONESIA:  
ARTICLE-BY-ARTICLE QUESTIONS 
 
 In light of Regulation 03, and according to our understanding of Regula tion 30 as amended by 
Regulation 38 and notified to the Import Licen sing Committee, we have the following specific 
questions regarding Regulation 30: 
 
ARTICLE 2 
 
1)  Why does Indonesia consider the availa bility of domestic horticultural product when 
determining if horticultural impor ts are permissible (Article 2(1)b)? What specific impact 
does this consideration have on the issuance of the license?  How is consideration of domestic horticultural product in this manner consis tent with Indonesia's WTO obligations?  
  What is meant by "goal setting of Horticultu ral Product of production and consumption" in 
Article 2(1)c?  Does this mean that import quotas will be set or that the quantity of 
horticultural imports will be limited?  How is this  provision in conformity with the relevant 
provisions of GATT 1994, as required by Article 1.2 of the Import Licensing Agreement?  
 2)   How is the determination made as to whet her domestic production is insufficient and imports 
will be allowed?  Who makes the decision?  Ho w is this provision in conformity with the 
relevant provisions of GATT 1994, as require d by Article 1.2 of the Import Licensing 
Agreement? 
 
ARTICLE 3 
  If a product is not listed in Appendix I, do th e import requirements not apply?  Can those 
products be freely imported without an im port license and without restriction? 
 
ARTICLE 4 
 
1)  How will the "Coordination meeting of ministerial level" process work?  Would import 
volumes be publicly announced?  How often would this meeting take place?  Which agencies 
would participate in the Coordination Meeting?   
 2)  How will the process of Echelon-1 level officials making company-specific import 
determinations work?  Does the Ministry plan to make determinations by category (i.e. an 
amount for all PI-Horticultural Product (P IHP) importers and an amount for all 
RI-Horticultural Product (RIHP) importers)?  Will the Ministry  make a determination for 
specific importers?  Who will be involved?  Will these decisions be made public? Who will make them public and in what publication will they appear? 
 
ARTICLE 5 
 
 What is the policy objective of classifying companies into either a RIHP or PIHP category?  Please explain what companies in each category will be  permitted to do.  What is the significance of 
using the word "acknowledgement" vs. "stipulat ion?"  How does this "simplify and bring 
transparency to, the administrative procedures and prac tices used in international trade, and to ensure 
the fair and equitable application and administra tion of such procedures and practices"?  How does 
this differentiation comply with Article 1 of the Import Licensing Agreement, including Articles 1.2, 
1.3 and 1.4? 
 G/LIC/Q/IDN/22 
Page 6  
 
  ARTICLE 7 
 
1a) What is the purpose of requiring a copy of the Industrial Business License?  What does 
obtaining this license entail?  What are the requirements to be a competent institution or 
technical service to provide such a license?  Are domestic producers subject to the same 
requirements? 
 1e, f)   Why are horticultural importers required to provide evidence of the ownership of cold storage 
and cold transportation?   How would this re quirement work for products that do not require 
immediate cold storage (e.g., onions)? 
 
1g)   The paragraph states that the RIPH is "a letter issued by a related competent technical 
unit/institution official and constituting the requi rement for the issuance of Import Permit".  
Please clarify which Ministry issues each RIPH .  How does this paragraph comply with 
Article 1.6 of the WTO Import Licensing Agre ement which stipulates that "…Applicants 
shall have to approach only one administrativ e body in connection with an application.  
Where it is strictly indispensable to approach  more than one administrative body, applicants 
shall not need to approach more than three administrative bodies."? 
 2)   Why does the Ministry of Trade plan to c onduct an on-site visit to verify each and every 
applicant for PIHP or RIHP status?   Who is part of the field inspection team?  Why does the 
Ministry believe that five days will be suffici ent to complete the inspection?  How is this 
provision in conformity with the releva nt provisions of GATT 1994, as required by 
Article 1.2 of the Import Licensing Agreement? 
 
ARTICLE 8   
 
 What is the basis for limiting imports to "m aterial or support material for the need of 
industrial production process that is owned by th e company…?"  Does the prohibition on trading and 
transferring imported goods mean that a company with a PIHP license must re-export imported 
products that it cannot use for whatever reason?  How is this provision in confor mity with the relevant 
provisions of GATT 1994, as required by Article  1.2 of the Import Licensing Agreement? 
 
ARTICLE 9  
 
1h)  Would the requirement that all importers have one year of experience as a horticulture 
products importer restrict commercial activ ities to current importers?  How would new 
importers enter the system?   
 1i)  What is the rationale behind the requirement for importers to sell to distributors only, and not 
directly to retailers?  Do domestically-p roduced horticultural products face the same 
distribution requirements?  How is this provision  in conformity with the relevant provisions 
of GATT 1994, as required by Article 1.2 of the Import Licensing Agreement? 
 
ARTICLE 11 
 
 Given the considerable amount of information required to be submitted, how can the Ministry 
assert that 5 days is sufficient to process/publish the import permit? 
 
ARTICLE 12 
 
 Again, what is the rationale behind the require ment for importers to sell to distributors only 
and not directly to retailers?  Do domestica lly-produced horticultural products face the same  G/LIC/Q/IDN/22 
 Page 7 
 
 
  distribution requirements? How is this provision in conformity with the relevant provisions of GATT 
1994, as required by Article 1.2 of the Import Licensing Agreement? 
 
ARTICLE 13 
  How does this Article align with Article 6 (3) of Regulation 3?   
 
ARTICLE 14  
 
1a)  What are the laws and regulations referred to in  this article with respect to packaging in direct 
contact with food?  How is this provision in conformity with the relevant provisions of 
GATT 1994, as required by Article 1.2 of the Import Licensing Agreement? 
 1b)   What are the Foods Packaging Logo and Recycle Logo, and where can businesses find these?  
Why are they necessary if all food products in Indonesia are under the oversight of the 
Ministry of Agriculture and are subject to food safety requirements?  Is this logo marking 
required for domestic products, as well?  Give n the requirements that all horticultural 
products comply with food safety regulations, wh y an additional label marking required?  
How is this provision in conformity with th e relevant provisions of GATT 1994, as required 
by Article 1.2 of the Import Licensing Agreement? 
 
1c)   What are the requirements for these marking s? How is this provision in  conformity with the 
relevant provisions of GATT 1994, as require d by Article 1.2 of the Import Licensing 
Agreement? 
 2)   Article 14 says, "The fulfilment of the pack aging requirements as referred to in paragraph (1) 
shall be proven by a certificate of test results issued by a laboratory of a competent authority 
and recognized by the local government."  Please explain this statement.  Can the competent 
authority be in the exporting country or only in Indonesia?  Who pays for the lab testing?  What qualifies as a competent lab? 
  What is considered an "ornamental horticultu ral product" (Article 14(3))? Are all of the 
packaging requirements also required for domesti cally produced goods? How is this provision 
in conformity with the relevant provisions of GATT 1994, as required by Article 1.2 of the 
Import Licensing Agreement? 
 
ARTICLE 15 
 
 Do these labelling requirements apply to processed  and fresh products?  Is this different from 
the previous labelling requirements?  Is a supplementa l label acceptable?  Please clarify at what stage 
in the process Bahasa labels will be required to be  affixed to products?  Ca n the label be applied upon 
entry and applied in a facility under the importer’s co ntrol, subject to government approval?  How is 
this provision in conformity with the relevant pr ovisions of GATT 1994, as required by Article 1.2 of 
the Import Licensing Agreement? 
 
ARTICLE 16   
 
 Will labelling be at the item, pack, container, or tray level?  
 
ARTICLE 18 
 
1)   Is the Label Inclusion Certificate in Indonesian Language (SKPLBI-Horticultural Product) 
different from the Bahasa labelling requirement?  Are domestic products also required to meet G/LIC/Q/IDN/22 
Page 8  
 
  this labelling provision? What constitutes a "bus iness player?"  How is this provision in 
conformity with the relevant provisions of  GATT 1994, as required by Article 1.2 of the 
Import Licensing Agreement? 
 1a)   What is an Industrial Business License?  W ho issues it and what qualifications are needed to 
obtain one?  How is it feasible for a business play er to obtain all of this information and how 
long would the process take? How does this "simplify, and bring transparency to, the administrative procedures and practices used in in ternational trade, and to ensure the fair and 
equitable application and administration of such procedures and practices?" Are domestic 
businesses required to obtain the same kind of license  and present it to the authorities before it 
is allowed to do business in Indonesia?  What  information must the domestic license contain? 
  What is the purpose of requiring an importer to obtain a power of attorney in order for 
Indonesia to grant a label compliance certifica tion?  Are domestic businesses required to 
obtain such power of attorney and present it to  the authorities before it is allowed to do 
business in Indonesia? 
 3 and 4) How does Indonesia ensure that five da ys is sufficient to issue the SKPLBI-Horticultural 
Product?  Is a SKPLBI-Horticultural Product need ed for each and every type of product the 
business player may handle, or do all hortic ultural products fall under one umbrella? 
 
 How does one qualify for the Label Inclusion Obligatory Release Letter, which exempts a 
product from labelling provisions? 
  How is this article in compliance with th e Agreement on Import Licensing Procedures?   
 ARTICLE 21  
 
 Please explain the import verification process further and provide information regarding who 
will be the relevant body, or company conducting surv eying in foreign ports?  What does a shipper do 
if an appointed surveyor is not present in a port of  export?  Why is this process required?  Please 
describe how this process fulfils the requirem ents of the Import Licensing Agreement? 
 
ARTICLE 22 
 
j)  Please define what an analysis certificate is.  Will this certificate be issued by BPOM?  What 
are the requirements to obtain such a certificate?  What is the scientific basis for requiring an 
analysis certificate?  Are domestic interests required to obtain the same kind of analysis 
certificate?  How is this provision in conform ity with the relevant provisions of GATT 1994, 
as required by Article 1.2 of the Import Licensing Agreement? 
 
ARTICLE 26  
 a)   The article notes that recognition as a PIHP or RIHP may be revoked if import reports are not 
submitted three times. Will importers be warned  after each indiscretion or simply banned 
after three failures to submit?  May an importer reapply to obtain PIHP or RIHP status?  How is this provision in conformity with the re levant provisions of GATT 1994, as required by 
Article 1.2 of the Import Licensing Agreemen t?  How does this article comply with 
Articles 1.7 and 1.8 of the Import Licensing Agreement? 
  G/LIC/Q/IDN/22 
 Page 9 
 
 
  ARTICLE 30 
 
 The article notes that a company may be s ubject to sanctions if not in accordance with 
packaging and labelling provisions.  What flexibility  will be offered if an y requirements have not 
been properly addressed in early shipments?  Ho w are domestic products treated?  How does this 
article comply with Articles 1.7 and 1.8 of the Import Licensing Agreement? 
 
ARTICLE 33  
 
 Are the goods listed in Article 33(1) required in  order to gain recognition as MIHP or RIPH?  
What specifically would this process entail? Why is there not a simpler process or general exemption 
for products that will not be sold or traded?   
__________