. /.  WORLD TRADE  
ORGANIZATION   
G/TRIMS/W/96 
4 May 2012 
 (12-2395) 
Committee on Trade-Related Investment Measures Original:   English 
  
 
INDONESIA'S REGULATIONS ON COMMUNICATION AND INFORMATION 
REGARDING THE SUPPLY OF THE UNIVERSAL TELECOMMUNICATION  
SERVICE OBLIGATION AND THE GUIDELINES FOR EVALUATION  
OF THE ACHIEVEMENT OF DOMESTIC COMPONENT LEVEL IN 
TELECOMMUNICATION OPERATIONS 
 
Replies to Follow-up Questions from Japan
1 on Indonesia's Responses2 
   The following communication, dated 3 May 2012, is being circulated at the request of the 
Delegation of Indonesia. 
 
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Questions 
 
 Japan would like to express its appreciation for Indonesia's efforts to provide the replies 
to Japan's questions in the document G/TRIM S/W/80.  On the other hand, Japan has several 
points to clarify the coverage of the "Govern ment Procurement" under the relevant laws or 
regulations in Indonesia.  
- Generally, Japan recognizes that the proc urements by the government through 
the government projects be regarded as "Government Procurement" under the relevant laws or regulations.  On the other hand, why does Indonesia also regard the procurement by the service operators on telecommunication that makes a bit 
for government project as "Government Procurement"?  Japan would like Indonesia to specify the relevant laws or regulations regarding the definition of the 
"Government Procurement". 
 For instance, MINISTER OF COMMUNICATION AND INFORMATICS 
REGULATORY (07/PER/M.KOMINFO/01/2009 ）stipulates that " Telecommunication 
devices/tools used for wireless broadband service purposes as mentioned in Article 16 which use radio frequency band 2.3 GHz and 3.3 GHz must contain at least 30% (thirty per cent) of 
TKDN/DCL (see Article 1 number 15) for subscriber station (SS) and 40% (forty per cent) for base 
station (BS)".  
 
Reply 
 • The Ministerial Decree No. 7/2009 is a legal instrument in supporting the Government 
program to utilize certain part of radio sp ectrum form implementing Broadband Wireless 
Access (BWA) system.  The Ministerial Decree is only implemented for BWA operators which are winner of bidding process of govern ment project to build telecommunication 
                                                      
1 G/TRIMS/W/86.  
2 G/TRIMS/W/80.  G/TRIMS/W/96 
Page 2  
 
  facilities in under developed/under- served/un-ser ved areas which are non-profitable and non-
attractive for telecommunication service operators .  The fund to finance the project in the 
above areas comes from the government.  Therefore, any procurement made by service operators who win the above kind of project  is considered government procurement. 
 
• Presidential Decree No. 54/2010 defines govern ment procurement as an activity to obtain 
goods/services by ministries/Institutions/Regiona l Government or other institution from the 
process of planning until the completion of all activities in obtaining goods/services financed 
wholly or partly by state budget or Regiona l Government budget or government or regional 
government loan or grant. 
 Questions  
- Does this regulation also apply when foreign service operators on 
telecommunication procure the telecommuni cation devices/tools in Indonesia for 
purposes other than the government project? 
- If the regulation applies to such a case, Japan will be concerned that these 
measures seem to be inconsistent with the Article III of GATT 1994 and the Article 2 of the TRIMs.  Please provide Indonesia's view on this inconsistency. 
Reply 
 
 The Ministerial Decree only applies to telecommunication procurement in the government 
project.  Therefore, it is not inconsistent with Article III of GATT 1994 and Article 2 of the TRIMs. 
 
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