. /.   WORLD TRADE  
ORGANIZATION  G/TRIMS/W/80 
22 December 2010 
 (10-6866) 
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 
 
Indonesia's Replies to Follow-up Questions posed by Japan
  
in Document G/TRIMS/W/78  
 
 
 The following communication, dated 16 December 2010, is being circulated at the request of 
the Delegation of Indonesia.  
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 Indonesia wishes to refer to the questions raised by the delegation of Japan in document 
G/TRIMS/W/78 regarding Indonesia's law applicab le to investment activities in Indonesia's 
telecommunication sector (Ministerial Decree No. 7 Year 2009).  Indonesia hereby wishes to provide the following clarifications: 
 
Question 1  
 Indonesia, in document G/TRIMS/W/75, replies to the first question stipulating that "it 
is clear that the project is funded by th e Government of Indonesia as Government 
Procurement".  In this regard, if "service ob ligation operators" carrying out procurement are 
not the government itself or entities under the control of the government, such procurement 
would not be considered as cases of government procurement.  Japan considers that the sole 
fact that the projects are funded by the govern ment and the government  selects operator(s) 
through a bidding process is not sufficient to regar d such entities as government institutions or 
those under the control of the government.  Pl ease provide us with the grounds on which 
Indonesia regards such operators as government inst itutions or entities under the control of the 
government.  
Reply
 
  Article 1.12 of the Presidential Regulation No . 54/2010, as an amendment to the Presidential 
Decree No. 80/2003, defines provider of goods/ser vices as a corporate body or individual that 
provides goods/construction works/consulting services/other services.  
Question 2 
  What are the terms and conditions of gov ernment procurement in relevant domestic 
laws and regulations of Indonesia?  Japan would like to know the relevant provisions 
specifically. G/TRIMS/W/80 
Page 2  
 
  Reply
 
  The terms and condition are:   a) It is an activity to obtain goods /services by Ministries/Institution/Regional 
Government or other institutions from the process of planning until the completion of 
all activities to obtain goods or services;   
  b) Ministries/Agency/Institution which are referred in item a
) use in part or wholly, 
State Budget (APBN) or Regional Budget (APBD). 
 
Question 3 
  As to the fourth reply in the above-men tioned document, Indonesia replies, "[t]his 
regulation does not regulate export and import restriction or the amount of export and import." 
Japan understands that Article 2 of the Agreement of TRIMs contains not only the obligation of 
general elimination of quantitati ve restrictions, but also that of  national treatment provided for 
in paragraph 4 of Article 3 of GATT 1994.  Give n that, even if the Ministerial Decree is 
consistent with the obligation regarding the qua ntitative restrictions, it does not necessarily 
fulfill the requirement of Article 2 of the Agreement  of TRIMs.  In this regard, please provide 
Indonesia's view. 
 
Reply
 
  Indonesia reiterates its previous r esponse in document G/TRIMS/W/75 that 
Decree No. 7/2009 does not regulate export or import restrictions.  Indonesia would also like to 
confirm that the Decree does not differentiate in tr eatment between local and foreign service providers 
so it is not inconsistent with Article 2 of TRIMS Agreement. 
 
Question 4   As to the fourth reply in the above-mention ed document, Indonesia does not reply to our 
question on your view that the imposition of the local procurement obligation by the Decrees 
(including the Decree 10/2009) would eventually affect the distribution of goods.  In this regard, Japan would like to ask again for Indonesia's view on the consistency of the measure with Article 2 of the Agreement of TRIMs. 
 Reply
 
  Indonesia has already replied to the ques tion of Japan in document G/TRIMS/W/75.  
Furthermore, Indonesia would like to  reiterate that no deletion and re placement have been taken in 
Paragraph 1 of Article 2 of the Decree No. 7/2009 since the Minister of Communications and Information Technology has never enacted Decree  No. 10/2009.  The Decree No. 7/2009 does not 
regulate trade flows/distribution of goods and does not contain provisions that restrict imports of 
flows of investment to Indonesia, thus Indonesia belie ves that it is not inconsistent with Article 2 of 
the TRIMS Agreement.   In addition, Indonesia also believes that  national regulation relating to Government 
Procurement framework is not inconsistent with other provi sions under the WTO Agreements 
including the TRIMS Agreement.  
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