WORLD TRADE  
ORGANIZATION  G/LIC/Q/IDN/11 
5 February 2009 
 
 (09-0544) 
Committee on Import Licensing Original:   English 
  
 
IMPORT LICENSING SYSTEM OF INDONESIA 
 
Questions from the UNITED STATES and the EUROPEAN COMMUNITIES 
 
to INDONESIA  
 
 
 The following communication, dated 30 January 2 009, is being circulated at the request of the 
delegations of the United States and the European Communities.  
_______________ 
 
  Indonesia recently introduced new administrative procedures regulating imports of a broad range of products including electronics, household app liances, textiles, apparel, footwear, toys, and 
food and beverage products.   The pr ocedures are contained in the Regulation of the Trade Minister of 
the Republic of Indonesia, Number 44/M-DAG/PER /10/2008, dated 31 Oct ober 2008 (“Decree 44”), 
as modified by Regulation of the Trade Minister of the Republic of Indonesia, Number 56/M-
DAG/PER/12/2008, dated 24 December 2008 (“Decree 56” ).  The decree appears to create new non-
automatic import licensing requirements according to the definitions contained in the WTO 
Agreement on Import Licensing Procedures.  As of mid-December, as many as two hundred or so 
applications for import licenses for the covered produc ts have been rejected so far, according to 
Indonesian news articles.  We seek additiona l information from Indonesia about these new 
requirements and submit the following questions:  1. Have the import licensing procedures foreseen under Regulation of the Trade Minister of the 
Republic of Indonesia, Number 44/M-DAG/PER/10/2008 , dated 31 October 2008 (“Decree 44”), as 
modified by Regulation of the Trade Minister of the Republic of Indonesia, Number 56/M-
DAG/PER/12/2008, dated 24 December 2008 (“Decree 56” ), been notified to the WTO Committee on 
Import Licensing Procedures?  If not, when will Indonesia do so?  
2. We believe that the requirements of D ecree 44 and 56 establish non-automatic import 
licensing procedures as defined in Article 1 a nd Article 3 of the WTO Agreement on Import 
Licensing Procedures.  If Indonesia disagrees, please explain. 
3. Please clarify the objective of the Decree.  (We’ve heard various explanations.  Is it to combat 
“illegal trade”, “track imports”, and/or promote “health and safety”?) 
(a) With regard to alleged smuggling into I ndonesia, can Indonesia provide figures, data, 
studies, or other analysis demonstrating the ex tent of this problem, particularly with 
respect to the products covered by the Decree? 
4. How and according to what criteria have the products covered by the Decree been selected? 
Can Indonesia share information on the process – studi es, analyses, and consultations – that have 
underpinned the selection of products? G/LIC/Q/IDN/11 
Page 2  
 
  5. Please explain the criteria used by Indonesia for granting and/or allocating licenses or 
registering/designating importers. Of the applications  received so far, how many have been declined? 
Why? 
(a) Under what circumstances would a license app lication be denied other than failure to 
submit the necessary documents, as required in Article 2 of Decree 56? 
(b) Will the relevant authorities be consultin g with domestic industries or business 
associations in deciding whether or not to grant import license applications?  Article 2.4 of the original decree, D ecree 44, appeared to reference such 
consultations. 
6. What studies and analysis have been made to  ascertain that the measures in the Decree 
(import licensing, pre-shipment inspection, port entr y limitations,  etc.) are the most appropriate and 
least trade restrictive in terms of achieving the stat ed objective? Can Indonesia share this information? 
7. When will these import measu res enter into force? 
8. Article 11 of Decree 56/2008 provides that the provi sions are not applicable to the “temporary 
import of certain products.” Are goods in transit th erefore exempt from the provisions of the decree? 
9. Regarding the requirements outlined in Article 2.3 of Decree 56, are importers required to 
submit documents for each individual shipment, or can they complete one submission that is valid for 
numerous shipments? 
10. Article 5 of Decree 56 restricts importation of  certain importable products to only five sea 
ports and all international airports.  What is the ju stification for restricting imports to only five sea 
ports?  Why were these ports selec ted over others?  May importers choose another port if they are 
willing to forego the facilities at the identified ports?  If not, why not? 
11. Article 5, paragraph 2 of Decree 56 says that im ports of Certain IT-Products for the needs of 
free trade zones and free ports is governed by th e rules and procedures concerning free trade zones 
and free ports.  
(a) Does this mean that free trade zones and free ports are not subject to any of the 
requirements of Decree 56, including registration and verification? 
12. Some of the tariff lines are textile sector pr oducts, including appare l and made-up textile 
goods, as well as alcoholic beverages.   
(a) How do the new import licensing requirements overlap or interact with other existing 
import licensing requirements for the same products, particularly 19/M-Dag/PER/5/2005 for textiles and apparel and 230/MPP/Kep/7/1997 for alcoholic 
beverages?   
(b) What steps are being taken to minimize the burden on traders of duplicative non-
automatic licensing procedures?  Upon impl ementation of Decree  56, will goods in 
HS chapters 61-63 be subject to tw o sets of registration requirements? 
13. Article 6 of Decree 56 requires that every import of these products be subject to a verification 
or “Import Technical Investigation.”  
(a) What specific issues are being investigated and verified?  G/LIC/Q/IDN/11 
 Page 3 
 
 
  (b) Are there technical regulations that provide the basis for such investigations?  If so, 
please explain.  Are there other reasons that  form the basis for the investigations, 
consistent with Indonesia’s WTO obligations? 
(c) What is the reason for requiring that every shipment be investigated?  Why will it be 
necessary to investigate products that are iden tical to products that have already been 
investigated in previous shipments? 
(d) What will the verification consist of, do cumentary and/or physical inspections? 
(e) What information and documents must be submitted for verification? 
(f) In what form will physical inspections take place? 
(g) How long is the whole verification process envisaged to take? 
(h) From the information received from appointed Surveyors (Succofindo and PT 
Surveyor Indonesia) it seems that both the importer and the exporter must submit an application and documentation for verifi cation. If so, why? Why must the same 
documentation (e.g. Taxpayer Number and Special Importer Identify Number) be submitted to both the Ministry of Trade (in applying for a license) as well as to the 
surveyor (as part of the verification process)?  Why do the appointed surveyors 
require additional documenta tion to be submitted (e.g. Trading License (SIUP))? 
(i) Will Indonesian customs authorities, for th e purpose of customs clearance, also 
require the documents submitted to the appoi nted surveyors for verification under the 
Decree, as well as carrying out documentary and physical inspections? 
(j) What costs will be associated with verification or investigation, as mentioned in 
Article 6.3? 
(k) What is the role of the surveyors?  What  are they?  How are they appointed?  Does 
Indonesia already have approved surveyors in foreign ports? 
14. Please clarify the meaning of Article 11 of Decree 56, including Articles 11(c) and 11(d), 
which appear to exempt certain business activitie s from the new requirements.  What business 
activities will be covered by the decree and wh ich ones will be exempted?  Why?  How will 
Indonesian customs determine the ultimate use of the imports? 
__________