G/TRIMS/Q/IDN/10  
28 September  2021 
(21-7221) Page: 1/2 
Committee on Trade -Related Investment Measures  Original:  English  
 
  
INDONESIA  ‒ IMPORT RESTRICTION ON AIR CONDITIONERS  
QUESTION S FROM JAPAN  
The following communication, dated and received on 24 September 2021, is being circulated at the 
request of the delegation of  Japan.  
 
_______________  
 
 
Under the Regulation of the Ministry of Trade No.  68/2020 which was revised in August  2020, 
air conditioners are subject to mandatory import licensing mechanism. However, there are cases 
where the licenses have been issued with delay and the number of licenses is limited without any 
particular rational reasons. Japan is therefore concerned that this import licensing mechanism may 
substantially constitute import restrictions that are inconsistent with Article 11.1 of the GATT and 
Article 2.1 of the TRIMS  Agreement. Against this backdrop Japan would appreciate replies from 
Indonesia to the questions.  
Question 1  
What are the reasons and background why the following items: footwear, electronics, bicycle and 
tricycle have been added after the last revision, t o the import licensing mechanism as the products 
that only API -U holders are allowed to import?  
Question 2 
Japan observed a number of cases which took a few months from application to issuance of import 
license without any particular explanation, in particular in the first 6 month after the entry into force 
of the Regulation. In addition, less number of air conditioning units than applied were approved for 
importation and no explanation for such limitation was provided. As the Regulati on stipulates neither 
the standard processing period nor the criteria to determine the importation volume to be permitted, 
the predictability for the business is seriously harmed due to poor transparency.  
Those operations without transparency and predictab ility can be said to be in accordance with the 
purpose of legislation; ie "to support the smooth flow of goods, providing business certainty and 
accelerating business licensing services, as well as increasing the effectiveness of the 
implementation of poli cies on imports of electronics".  To ensure transparency and predictability, 
Japan is of the view that it would be required at least that the relevant law and regulations explicitly 
provide standard processing period and criteria to determine the importatio n volume to be 
permitted, and that there should be sufficient notification period before the enforcement of such law 
or regulations so that the opinions of stakeholders would be appropriately reflected.  Japan 
appreciates when and how Indonesia can implemen t these requests to ensure transparency of the 
measure.  
Japan would appreciate if Indonesia could explain the reasons why it took as long as a few months 
as processing period and why only less importation volume than applied was permitted, in the course 
of import licensing procedures until now after the enforcement of the Regulation of the Ministry of 
Trade No.  68/2020 . G/TRIMS/Q/IDN/10  
- 2 - 
  Question 3 
Is OSS Management and Operating Institution which issues NIB involved in issuing import license 
and determining their content? I f it is the case, what is the role of the OSS? In particular, in what 
cases does the OSS "act on behalf of import approval" as mentioned in Article 11 of the Regulation?  
Question 4 
The Order of the Minister of Trade No.  68/2020  provides that it will be eva luated six months after 
the Regulation comes into effect. Has this evaluation already been done? What was the results?  
 
__________