. /.   WORLD TRADE  
ORGANIZATION  G/TRIMS/W/75 
6 August 2010 
 (10-4209) 
Committee on Trade-Related Investment Measures Original:   English 
  
 
COMMUNICATION FROM INDONESIA 
 
Indonesia's responses to the questions posed by Japan 
 
in document G/TRIMS/W/71  
 
  The following communication, dated 5 August 2010, is being circulated at the request of the 
Delegation of Indonesia.   
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 We refer to Japan's questions contained in document G/TRIMS/W/71 dated 17 December 
2009.  Indonesia hereby wishes to provide the following clarifications: 
 
Question 
 
 Regarding Indonesia's response No. 1 in G/TRIMS/W/63, Japan understands that the 
provision of the Decree imposes obligations on th e Service Obligation Operator or on the service 
providing operators.  In this regard, Japan would like to know if Indonesia's government 
activities carried out under the Decree No. 38/200 7, as amended by the Decree No. 32/2008, are 
government procurement.  For example, woul d these government activities be regarded as 
government procurement defined under Article III:8(a) of the General Agreement on Tariffs and Trade 1994 (GATT 1994) and/or Article XIII: 1 of the General Agreement on Trade in 
Services (GATS)?   
 
Reply
 
 
 As Indonesia's response to the European Un ion and the United States question No. 1 on 
Document G/TRIMS/W/63, it is clear that the proj ect is funded by the Government of Indonesia as 
Government Procurement.  The Government sel ects operator(s) through bi dding process to provide 
telephone services in under-served / un-served areas which are non profitable and not attractive for 
telecommunication operators.   
 
Question 
 
 Is the "bidding process", referred to in th e response No. 1, conducted in accordance to 
the relevant domestic laws and regulations of the government procurement?    
Reply
 
  The mechanism of bidding process is in acco rdance with the regulation of the government 
procurement (Presidential Decree No. 80/2003).   
 G/TRIMS/W/75 
Page 2  
 
  Question 
 
 Could you also please provide explanations on who would be eligible for the Service 
Obligation Operator?   
 Reply
 
  All Indonesia Network Operators such as Cellula r Operators, Satellite Operators, etc. could 
participate in the bidding process of USO Project.    Question   Regarding Indonesia's response to Questions 4 and 5 in G/TRIMS/W/63, Japan considers that, even if the regulations of the Decree  are not directly related to trade in goods, the 
imposition of the local procurement obligatio n by the Decree would eventually affect the 
distribution of goods.  More detailed explanatio ns on the consistency between the Decree and 
the Article II of the TRIMs Agreement would be appreciated.   
 
Reply
 
 
 The spectrum frequency is a limited resource,  controlled and managed by the government.  
Ministerial Decree No. 7/2009 is only implemented for Broadband Wireless Access (BWA) operators 
which are the winners in the Bidding Process of the use of spectrum frequency allocation at 2.3 GHz for BWA services (not regulating the general public but only the winners of the bidding).  This regulation does not regulate export and import restric tion or the amount of export and import, so the 
Ministerial Decree is consistent with article II of the TRIMs Agreement.   
 
Question 
 
 With respect to the guidelines for the evalua tion of the achievement of the domestic 
component level in telecommunication op eration, Japan would like to understand why 
the numerical target in Paragraph 1 of Ar ticle 2 in the Decree 07/2009 has been deleted 
and replaced by the introduction of the Decree 10/2009 which has entered into force 
on 16 October 2009.   
 Reply
 
  There is no deletion and replacement in Pa ragraph 1 Article 2 of Decree 07/2009.   
 
 
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