G/LIC/Q/IDN/38  
 
11 May 2017  
(17-2525) Page: 1/8 
Committee on Import Licensing  Original: English  
 
 IMPORT LICENSING SYSTEM OF INDONESIA  
REPLIES FROM INDONES IA TO THE UNITED STATES  
The following communication, dated  2 May 2017 , is being circulated at the request of the 
delegation of Indonesia . 
 
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The United States has long had questions about Indonesia’s import licensing requirements for 
cellphones, handheld computers, and tablets.  The United States, with the European Union, 
submitted questions regarding this import licensing in documents G/LIC/Q/IDN/25 and 
G/LIC/Q/IDN/26 in 2013.  The U nited States submitted additional questions in document 
G/LIC/Q/IDN/31 in 2014.  We appreciate Indonesia’s earlier responses to our questions regarding 
these requirements in documents G/LIC/Q/IDN/28, G/LIC/Q/IDN/29, and G/LIC/Q/IDN/33/Add.1.  
The United Sta tes understands that Indonesia’s Ministry of Trade recently issued 
Regulation  41/M-DAG/PER/5/2016, which is the third amendment to Ministry of Trade 
Regulation  82/M DAG/PER/12/2012 (previously amended by MOT Regulation  
48/M-DAG/PER/8/2014) regarding provis ions on imports of cellular telephones, handheld 
computers, and tablet computers, and that the Ministry of Indu stry recently issued 
Regulation  68/2016, which appears to set forth requirements for obtaining recommendations for 
designated importers.   
 
As a general matter, we continue to question the purpose of the requirements and procedures 
related to imports of cellular phones and handheld and tablet computers.   In addition, we have a 
number of specific questions about the changes to the import licensing requirements for these 
products.   
 
  Q1: We ask that Indonesia notify this regulation (Regulation 41/M -DAG/PER/5/2016) to 
the Committee as it contains new requirements for obtaining an import license.  
 
Response  
 
Indonesia has notified the regulation to WT O under documen t number 
G/LIC/N/2/IDN/36 on 22  March 2017.  
 
We further request Indonesia’s written response to the general observations and concerns, as well 
as to the questions that follow:  
 
Article I.1 of Regulation 41/2016 appears to amend Article 4 o f MOT Regulation 82/2012 to 
establish separate requirements for cellphones, handheld computers, and tablets depending on 
whether the products are 3G or 4G LTE enabled.  
 
  Q2: What is the rationale for establishing separate requirements for products that in clude 
4G LTE technology as opposed to those that do not?  
 G/LIC/Q/IDN/38  
 
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  Response  
 
The requirement is to facilitate and expedite the importation of cellphones, handheld 
computers, and tablets.  
  Q3: Are there similar separate requirements for domestically -produced cellph ones, 
handheld computers, and tablet computers based on whether they are 3G or 4G LTE 
enabled?  If so, please provide the legislative or regulatory references for those 
requirements.  
 
Response  
 
The requirements apply to all companies which applies for Reg istered Importer 
establishment on cellular phone, hand -held computers, and tablet computers.  
 
Under Article 4(1)a, as amended, it appears that companies applying for recognition as a 
Registered Importer (IT) to import 3G enabled devices can be holders of e ither an Importer 
Identity Number -General (API -U) or an Importer Identity Number -Producer (API -P).  However, 
under Article 4(1)b, as amended, companies applying for an IT who intend to import 4G LTE 
enabled devices must hold an API -P.   
 
  Q4: What is the p urpose of requiring importers to obtain an IT designation?  
 
Response  
 
Registered Importer is an instrument for importation management. It is used as a 
requirement to obtain an Import Approval for the import of cellular phone.  
 
  Q5: How is the IT requiremen t different than the requireme nt to obtain an API -U or an 
API-P?  For example, what different purposes do these requirements serve, if any?  How 
do the procedures to obtain an IT and an API -U or an API -P differ?  
 
Response  
 
The Importer Identification Numbe r (API) serves as an identity for companies that carry 
out importation activities.  Whilst, the Registered Importer (IT) of cellular  phone, hand -
held computer, and tablet computer is a requirement to import cellular phone, hand -held 
computer, and tablet com puter.  
 
  Q6: Are domestic companies also required to obtain separate designations to produce and 
to sell these products in the Indonesian market? If so, please provide the legislative or 
regulatory references for those requirements.  
 
Response  
 
The require ments apply to all companies which apply for Registered Importer 
establishment on cellular phone, hand -held computers, and tablet computers.  
 
  Q7: What is the rationale for allowing both API -U and API -P holders to import 3G devices, 
while only allowing API -P holders to import 4G LTE devices? How do the procedures to 
obtain an API -U versus an API -P differ?  
 
Response  
 
The holders of API -P could import 3G and 4G enabled devices as long as they have met 
their obligation to establish cellular phone, handheld co mputer, tablet computer 
industry in Indonesia or has conducted cooperation with domestic industries of those 
products. While the holders of API -U, which haven’t met their obligation to establish 
cellular phone, handheld computer, tablet computer industries  in Indonesia, could only 
import 3G enabled devices .  G/LIC/Q/IDN/38  
 
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    Q8: What is the difference between the “recommendation” for 3G enabled devices in 
Article 4(1)a.4 and the “industry investment recommendation” for 4G LTE enabled devices 
in Article 4(1)b.4?  Please inc lude an explanation of any differences in light of MOI 
Regulation 68/2016.  
 
Response  
 
Recommendation for 3G:  It notes that the company has not yet conducted any 
cooperation with domestic cellular phone, handheld computer, and tablet computer 
industries or has not yet made a commitment  to develop  related industries  in Indonesia .  
Recommendation for 4G : It notes that the company has conducted cooperation with 
domestic cellular phone, handheld computer, tablet computer industries or has 
developed related indus tries in Indonesia . 
 
  Q9: What is the rationale for requiring importers to show a relationship with at least three 
distributors?  Are domestic producers also required to use three distributors?  
 
Response  
 
It is to ensure that the importers would only condu ct importation  activities , and do not 
conduct direct selling of the said products to consumers or retailers , as it is emphasized 
in Article 9 of MOI Regulation 82/2012. Yes, the provision also applies to domestic 
producer.  
 
  Q10: Please explain how the new  regulation’s requirements are “no more administratively 
burdensome than absolutely necessary” as set forth in Article 3.2 of the Import Licensing 
Agreement.  
 
Response  
 
In MOI Regulation 41/2016,  there are  several  administrative requirements that have 
been  eliminated to facilitate the importation  of cellular phone, handheld computer, and 
tablet computer . The administrative requirements that have been eliminated are  as 
follows : 
 
- A copy  of Business Permit (SIUP) or other similar business permits, TDP, NPWP,  
NIK, NPIK.  
- IT-Certain Products and PIB as the experience proof of being importer.  
- Proof of distributor experience at least for 3 years in the form of SIUP, 
Registration Letter of Goods Distributor and Designation Letter of Cooperation as 
distributor.  
 
In addition, the administrative requirements regarding PI submission which has been 
eliminated  are as follows:  
 
- Import plan.  
- Statement from principal which shows import plan.  
- Certificate of Labelling in Bahasa (SKPLBI)  
 
Therefore , the requirements a re no more administratively burdensome than the previous 
one.  
 
As we understand the requirement in Article 4(1)b.1, which provides that importers of 4G LTE 
enabled devices must hold an API -P, importers may only import 4G LTE devices for further 
processing , and cannot import finished 4G LTE enabled cellphones, handheld computers, and 
tablets for sale.   
 
  Q11: Please confirm our understanding.  If our understanding is not correct, please 
explain.  G/LIC/Q/IDN/38  
 
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  Response  
 
The provision  regulates that the importation of ce llular phone, handheld computer, and 
tablet computer with 4G network could be conducted by the holder of API -P who has 
established cellular phone, handheld computer, and tablet computer industries in 
Indonesia , and has established cooperation at least with  three domestic distributors.  
 
  Q12: Please explain how, if at all, companies who have an API -U instead of an API -P would 
be able to import these products into Indonesia.  
 
Response  
 
The companies are required to have API -P to import 4G LTE enabled devices . The holder 
of API -U could only import 3G enabled devices.  
 
  Q13: Please identify the WTO -consistent measure that Indonesia is implementing through 
this import licensing.  
 
Response  
 
As noted before that the current regulation has eliminated several adminis trative 
requirements, so the regulation is no more administratively burdensome. As to that 
reason, we believe that the regulation is consistent with the WTO provisions.  
 
In the response contained in G/LIC/Q/IDN/33/Add.1, Indonesia indicated that the previ ous 
requirement to “develop industry” did not “generate any trade distortions.”  Under the new 
requirements, it appears that importers can no longer import finished 4G LTE enabled cellphones, 
handheld computers and tablets.  
 
  Q14: Please explain what impac t Indonesia anticipates the new requirements, including 
the requirement that an importer hold an API -P to import 4G LTE enabled devices, will 
have on imports of cellphones, handheld computers, and tablets.  If Indonesia considers 
that these new requirement s will not distort trade, please explain why.  
 
Respo nse 
 
The new requirement is aimed at the creation of  better administrative environment for 
the importation of cellular phone, handheld computer, and tablet computer. It is also 
aimed at protecting the rig hts of the consumers  to obtain a clear information 
concerning the products as well as to assure that their rights to receive immediate 
response whenever there is any question or problem with the products would be 
fulfilled .  
 
Under Article 4(2), as amende d, the recommendation on industry investment for 4G LTE enabled 
devices must contain information regarding proof of development of, or proof of cooperation with, 
the domestic cellphone, handheld computer, or tablet industry.   
 
  Q15: Please clarify the mea ning of these requirements.  What is considered proof of 
development of the domestic industry? What qualifies as proof of cooperation with the 
domestic industry?  Please provide examples of the types of documents required.  
 
Response  
The proof of developmen t of the domestic industry is the compilation of legal documents 
showing that the industry has  already been  established in Indonesia. Legal documents 
include company profile, industrial business license or any similar purpose legal 
document, and other lice nses which is issued by the Government of Indonesia.  
 
The proof of cooperation with the domestic industry is a legal document which contains 
related information of the commitment of cooperation between two or more parties to 
produce cellular phone, handhe ld computer, and tablet computer.  G/LIC/Q/IDN/38  
 
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    Q16: Who is responsible for determining whether the proof provided is sufficient?  
 
Response  
 
Ministry of Industry of the Republic of Indonesia.  
 
  Q17: Who provides this evidence?  May an applicant choose to provide either  evidence of 
proof of development of the domestic industry, or proof of cooperation with the domestic 
industry?  
 
Response  
 
The applicant should provide the evidence of proof of development of the domestic 
industry, or proof of cooperation with the domestic  industry in order to obtain the 
recommendation. Yes, the applicant may choose one of those documents.   
 
  Q18: Please explain what factors are considered in providing a “recommendation” for 
purposes of importing devices that are 3G enabled under Article 4 (1).  Please also identify 
what documents or other information are required in order to obtain a “recommendation.”   
 
Response  
 
The documents or information, which is required to obtain the recommendation, differ 
based on which category the applicants woul d like to apply. The details of the 
requirements for each category y are provided in Article 4, Article 5, and Article 6 of MOI 
Regulation 68/2016.  
 
MOI Regulation 68/2016 appears to outline requirements for obtaining a “recommendation” 
required to be desi gnated as a registered importer of cellphones, handheld computers and tablet 
computers.   
 
  Q19:  MOI Regulation 68/2016 does not refer to MOT Regulation 41/2016.  Please explain 
whether and how this regulation relates to MOT Regulation 41/2016.  Does MOI Regulation 
68/2016 apply with respect to products incorporating 4G technology, 3G or lower 
technology, or both?  
 
Response  
 
MOI Regulation 68/2016 is in line with MOT Regulation 41/2016. It  regulate s the 
issuance of recommendation for importation of cellula r phone, handheld computer, and 
tablet computer.  
 
The MOI Regulation 68/2016 does not regulate the standard of technology, but the type 
of product, such as cellular phone, handheld computer, or tablet computer. The MOI 
Regulation 68/2016 requires several documents as follow s: 
 
- The proof of development of the domestic industry;  
- Designation document of Registered Importer (IT) for cellular phone, handheld 
computer, and tablet computer; or  
- The previous proof of cooperation with producer of cellular phon e, handheld 
computer, and tablet computer and other company legal documents.  
 
Also, the recommendation of the Ministry of Industry  is given to importing company for 
aftersales service, or the company with particular specification and particular purposes.  
 
  Q20:  MOI 68/2016 appears to create three categories of applicants who can obtain a 
recommendation:  Category A, B, and C. As we understand these categories, Category A 
are those who produce cell phones and computers in Indonesia; Category B are those th at 
have a “cooperation agreement” with domestic producers that can provide “proof of 
industry development”; and Category C are those who are importing products with “special G/LIC/Q/IDN/38  
 
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  specifications and special purposes” or importing for aftersales service.  Please confirm or 
correct this understanding.  In addition, please provide further detail on what qualifies as a 
“cooperation agreement” and what qualifies as “proof of industry development.”  Also, 
please explain what is meant by “special specifications” and “sp ecial purposes”, and 
provide examples.  
 
Response  
 
Refer ing to MOI Regulation 68/2016, the understanding of those categories are as 
follow s: 
 
- Category A: The a applicant  is a produce r of cellular phone, handheld computer, and 
tablet computer ; 
- Category B:  The a applicant  is an  import er or a produce r which have established a 
cooperation with domestic cellular phone, handheld computer, and tablet computer  
industry ; 
- Category C: The a applicant  is an  import er with special specifications and purposes 
or for aft ersales services.  
 
The cooperation agreement is a legal document that legally recognized by Indonesia ’s 
domestic law which contains related information of cooperation commitment between 2 
or more parties to produce cellular phone, handheld computer, and ta blet computer in 
Indonesia.  
 
  Q21:  Please explain whether MOI 68/2016 provides the requirements for a 
“recommendation” needed to be designated a registered importer (IT) for 3G devices 
under MOT 41/2016 Article 4(1)a, or the requirements for the “recomme ndation on 
industry investment” under MOT 41/2016 Article 4(1)b for 4G LTE devices, or the 
requirements for both.  If MOI Regulation 68/2016 does not set forth the requirements for 
a “recommendation on industry investment,” please indicate whether there is  a separate 
regulation that sets forth those requirements, provide a citation for any such regulation, 
and explain what is required to obtain a “recommendation on industry investment.”  
 
Response  
 
As noted above (No. 19), the MOI Regulation 68/2016 is not r elated to the standard of 
technology, but the type of product, such as cellular phone, handheld computer, or 
tablet computer. The recommendation is needed to be designated a registered importer 
(IT) for both 3G and 4G devices.  
 
Article 7 of MOT Regulation 82/2012, as amended, appears to require that companies obtain an 
import approval (PI) in addition to the IT.  
 
  Q22: What is the purpose of requiring importers to obtain a PI for these products?  
 
Response  
 
PI is a mechanism for importation in Indonesia.  
 
  Q23: What is the difference between the PI issued by the Ministry of Trade and the TPP 
Import issued by the Ministry of Industry (MOI) under MOI Regulation 108/2012?  Do the 
PI and TPP -Import serve different purposes?   
 
Response  
 
Yes, the purposes of the P I and TPP are different.  
 
The Proof of Product Registration (TPP) is a letter which shows the registration of every 
cellular phone, handheld computer, and tablet computer that will be produced in G/LIC/Q/IDN/38  
 
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  Indonesia or imported to  the territory of  Indonesia. The Imp ort Approval (PI) is a 
permit which is given to  conduct  an importation into the territory of  Indonesia.  
 
  Q24: What is the average validity period for the PI?  
Response  
 
The expiration date for PI is adjusted to the expiration date of TPP which  is issued b y 
MOI.  
 
  Q25: On what basis may a PI be rejected?  
 
Response  
 
The application  would be rejected if a company is not ful ly filled the requirements as 
stated in  MOT Regulation No 41/2016.  
 
  Q26: Article 7(5), as amended, provides that the PI shall be sent via  the Indonesia 
National Single Window.  What information is included with the PI?  
 
Response  
 
The information which is included in PI, as follows:  
 
- The expiration date of PI;  
- Quantity and specification of products;  
- Company identity; and  
- Destinati on port.  
 
Article 9, as amended, provides that cellphones, handheld computers, and tablets imported by IT 
holders can only be traded or transferred to distributors.  
 
  Q27: Why may imported products only be traded or transferred to distributors? Why are 
importers not permitted to sell these products directly to retailers or service providers?  
  
Response  
 
This regulation is made based on the Trade Law . The Law states  that each actor or 
distribution chain in importation activities should have specific role and functions. Each 
actor should perform in accordance to their own role and functions . 
 
  Q28: Are domestic producers also required to sell cellphones, handheld computers, and 
tablets through distributors?  If so, please provide the legislative or regulatory  references 
for those requirements.  If not, please explain why domestic products may be sold directly 
to consumers, while imported products may not.  
 
Response  
 
The provision also applies to domestic producers.  
 
Article 24B states that holders of ITs issue d before July 1, 2016, have to come into compliance 
with Article 4 as amended by September 1, 2016.  
 
  Q29: What does this mean for existing holders of ITs who currently import 4G LTE devices 
for sale, in particular holders of API -Us?  
 G/LIC/Q/IDN/38  
 
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  Response  
 
Article 24B regulates the transition period for IT which  is issued before 1 July 2016. The 
holder of the said IT should make an adjustment to the current requirement which is 
stipulated in MOT Regulation No. 41/2016.  
 
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