Indonesia, 2001Indonesia, 2001 Chapter 1 : Tariffs

Chapter 1 : Tariffs

 

Objective

 

APEC Economies will achieve free and open trade in the Asia-Pacific Region by :

 

(a)           Progressively reducing tariff measures

 

(b)          Ensuring the transparency of APEC economies’ respective tariff measures

 

 

Guidelines

 

Each APEC economy will:

 

(a)                 take into account, in the process of progressive reduction of tariff measures, intra-APEC trade trends, economic interests and sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region;

 

(b)                ensure that the progressive reduction of tariffs is not undermined by the application of unjustifiable measures; and

 

(c)                 consider extending, on a voluntary basis, to all APEC economies the benefits of reductions and eliminations derived from sub-regional arrangements.

 

 

Collective Actions

 

APEC Economies have agreed to take Collective Actions to help achieve these goals.  These actions are contained in Collective Action Plans (CAPs) which are updated annually. The current CAP relating to tariffs can be found in the Tariffs and Non-Tariff Measures Collective Action Plan. 

 

 

Indonesia's Approach to Tariffs in 2001

 

             Indonesia is committed to working together with other member economies to achieve free and open trade in the region by 2010/2020 by progressively reducing tariffs and enhancing the transparency of the tariff regimes. In line with the guidelines stipulated in the Osaka Action Agenda, the reduction of Indonesian tariffs will continue to take into account the trends of intra-APEC trade and Indonesia's own economic interests while ensuring that a reduction of tariffs has positive impacts on trade and economic growth.

 

             Indonesia has progressively reduced tariffs based on the schedule of tariff reduction adopted unilaterally in 1996. Tariffs ranging between 0 and 10% had increased from 56.1% of Indonesia's total tariff lines in 1996 to 83.12% in 2001. Accordingly, tariffs ranging between 15 and 30% had decreased from 42.77% of the total tariff lines in 1996 to 15.86% in 2001. In addition, tariffs higher than 40% constitutes less than 1% of the total tariff lines.

 

 


 

 

Case Study of a Tariff Liberalisation Initiative

 

Tariffs reform in Indonesia began in 1995 when Indonesia issued a far-reaching tariff reform package (Pakmei '95). The said package, which was also adopted as part of Indonesia's APEC action plan, laid out a future tariffs reductions’ schedule. Tariff reductions on individual line items alternate from year-to-year, depending on the level of the tariff before 1995. Long-term targets for the year 2003 are 0, 5, and 10 percent.

 

As a result of Pakmei '95, Indonesia's average tariff had decreased from almost 20 percent in 1994 to less than 8 percent in year 2000.

 


Indonesia's Approach to Tariffs in 2001

Section

Improvements Implemented Since Last IAP

Current Tariff Arrangements

Further Improvements Planned

 

Bound Tariffs

 

 

 

Indonesia bound 93,88 % of its tariff lines in the Uruguay  Round.  This binding of a majority of tariffs across the board is at a ceiling rate of 40 %.

 

Indonesia is committed to Schedule XXI as attached in the UR Final Act on goods and services. Indonesia has already made Measures on Merchandise Trade, especially on Tariff Measures for both industrial products and agricultural products as follows:

 

- Industrial ProductsThe binding of majority tariffs cover 94 % of all tariff lines (7,537 out of 8,041 lines on HS 9 digit basis) and 91 % of total   imports, of Industrial Products.  These tariffs bindings were applied immediately after Indonesia became a member of  the WTO on 1 January 1995.

 

- Agricultural ProductsIndonesia’s commitment includes  tariffication and  binding of all agricultural items. The commitment covers reduction   of  tariff at least 10 % per  line  item (24 % overall) to be carried out in   10 years. A guaranteed access on rice imports of 70,000 tons annually  (at a 90 % tariff) will be effective immediately.  A subsidy of rice export is maintained within a band  between US $ 27.6 (1995) and US $ 21.5 million (2004) annually, covering a

volume of between 295 and 257 thousand tons, respectively.

 

 

No further improvements planned

 

Applied Tariffs

 

 

 

- According to Indonesia's schedule on tariff reduction, most of the tariff lines will range between 0% and 10% in the year 2003. In fact, by June 2000, more than 75% of Indonesia's tariff lines have already reached the said tariff range. In addition, 64.6% of the total tariff lines have been reduced to reach either 0% or 5%.

 

- Tariffs ranging between 0% and 10% have increased from 56.1% of Indonesia's total tariff lines in 1996 to 75.48% in 2000.

 

- Tariffs ranging between 15% and 30% have decreased from 42.77% of the total tariff lines in 1996 to 23.4% in 2000.· Tariffs of higher than 40% constitute only about 1% of the total tariff lines.

 

- Indonesia's simple average tariff rates have decreased from 13.91% in 1996 to 8.17% in 2000.

 

- Throughout the year 2000, more than 2000 tariff lines have been reduced.

 

 

- Tariffs ranging between 0% and 10% have increased from 56.1% of Indonesia's total tariff lines in 1996 to 83.12% in 2001.

 

- Tariffs ranging between 15% and 30% have decreased from 42.77% of the total tariff lines in 1996 to 15.86% in 2001.

 

- Tariffs higher than 40% of the tariff line constitutes only about  0.62% of the total tariff lines.

 

- Indonesia's simple average tariff rates have decreased from 13.91% in 1996 to less than 8% in 2001.

 

For contact point and further detail :

 

http://www.beacukai.go.id

Directorate General for Custom and Excise

Ministry of Finance of Indonesia

 

http://www.dprin.go.id

Directorate General for Foreign Trade

Ministry of Industry and Trade

Tel:(62-21) 3450071

 

- By the year 2001, more than 400 tariff lines will be reduced.

 

- Tariff reduction will be continuously implemented in the near future and by 2003 tariff will range between 0 % - 10 %.

 

- Tariffs will be progressively reduced to reach APEC goal of free and open trade no later than the year 2020

 

Tariff Quotas

 

 

 

Indonesia does not apply tariff quotas

 

Indonesia does not apply tariff quotas

 

Indonesia does not apply tariff quotas

 

Tariff Preferences

 

 

Indonesia has committed under Common Effective Preferential Tariff or CEPT Scheme for AFTA. To implement the ASEAN-AFTA commitments, Indonesia has taken measures since 1994 to reduce its tariffs, and renewed the schedule of tariff reduction for AFTA by the year of 2003, which includes 7.192 tariff lines.

 

- Within the year 2001, tariff ranging between 0-5% of Indonesia's CEPT-AFTA rates are 90.14% of 7.192 tariff lines.

 

- Indonesia only offered preferential tariffs on one item (polymer polypropylene) in the first round of negotiations under the Global System of Trade Preferences among Developing Countries (GSTP).  In the ongoing second round of negotiations, Indonesia has offered preferential treatment on 35 additional items.

 

- Indonesia benefits from Generalized System of Preferences (GSP)  treatment from Belarus, Bulgaria, Canada, The Czech Republic, the European Union, Hungary, Japan, Norway, New Zealand, Poland, the Russian Federation, The Slovak Republic, Switzerland and the United State of America.

 

 

All 7.192 tariff lines under the CEPT AFTA rates in 2003 will  range between  0% - 5%.

 

Transparency of Tariff Regime

 

 

 

No improvements since the last IAP

 

In order to ensure transparency of tariff regime, Indonesia provides details of its tariffs through various publications and databases including the APEC Tariff Database and the WTO.

 

 



Improvements in Indonesia's Approach to Tariff  Measures since 1996

Section

Position at Base Year (1996)

Cumulative Improvements Implemented to Date

 

Bound Tariffs

 

 

 

Indonesia is committed to Schedule XXI as attached in the UR Final Act on both goods and services.

 

Indonesia was one of the signatories of ITA I (Information Technology Agreement) and currently participates in the negotiation of ITA II.

 

Applied Tariffs

 

 

 

- Tariffs ranging between 0% and 10% in 1996 were 56.1% of Indonesia's total tariff lines .

 

- Tariffs ranging between 15% and 30% in 1996 were 42.77% of the total tariff lines.

 

- Tariff ranging higher than 40% constituted only about 1% of the total tariff lines.

 

- Indonesia's simple average tariff rates in 1996 were 13.91%.

- Most of Indonesia's tariff lines will range  between  0% and 10% in the year 2003. In fact, by June 2000, more than 75% of Indonesia's tariff lines had already reached the said tariff range. In addition, 64.6% of the total tariff lines had been reduced to reach either 0% or 5%.

 

- Tariffs ranging between 0% and 10% in 2001 is   83.12 % of Indonesia's total tariff lines.

 

- Tariffs ranging between 10% and 20% in 2001 is  15.26 % of the total tariff lines.

 

- Tariffs ranging higher than 20% in 2001 constitutes about 1.62% of the total tariff lines.·    Indonesia's simple average tariff rates in 2001 were less than 8%.

 

 

Tariff Quotas

 

 

 

Indonesia does not apply tariff quotas

 

Indonesia does not apply tariff quotas

 

Tariff Preferences

 

 

 

Indonesia has committed under Common Effective Preferential Tariff or CEPT Scheme for AFTA . By the year 1998 only  41.67 % of Indonesia’s CEPT rates were higher than Indonesia’s MFN rates, while 58.33 % of Indonesia CEPT rates were already applied in accordance with MFN basis.

 

 

Within the year of 2001, tariff ranging between 0 – 5 % of Indonesia's CEPT-AFTA rates is  90.14% of  7.192 tariff lines

 

Transparency of Tariff Regime

 

 

 

In ensuring transparency of  tariff regime, Indonesia participates actively in the APEC Tariff Database and regularly updates its tariff data.

 

 

No further improvements planned

 


 

APEC INDIVIDUAL ACTION PLAN:  TARIFF SUMMARY REPORT FOR 2001

(PLEASE COMPLETE BOXES)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Goods

Agriculture excluding Fish

Fish and Fish Products

Petroleum Oils

Wood, Pulp, Paper and Furniture

Textiles and Clothing

Leather, Rubber, Footwear and Travel Goods

Metals

Chemical & Photographic Supplies

Transport Equipment

Non-Electric Machinery

Electric Machinery

Mineral Products, Precious Stones & Metals

Manufactured Articles, n.e.s

ITEM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Bound tariff lines as a percentage of all lines

93.88

100.00

100.00

100.00

98.67

100.00

99.55

93.76

96.32

31.36

92.25

90.05

94.75

85.08

Duty-free tariff lines as a percentage of all lines

21.81

13.70

7.48

41.18

43.16

1.53

15.91

13.87

17.66

31.82

73.02

29.35

25.36

14.55

Preferential tariff lines as a percentage of all lines

98.60

94.66

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

93.55

Ratio of tariff lines with quotas to all lines

2.17

3.86

0.00

17.65

1.52

0.51

0.45

4.05

3.60

0.45

2.17

0.25

2.33

0.00

Simple average bound tariff rate

37.24

47.73

40.00

40.00

39.64

29.19

39.73

38.42

38.15

38.99

34.00

28.06

39.05

36.03

Simple average applied tariff rate

7.29

0.08

4.97

2.94

4.08

10.54

7.27

8.13

5.59

17.42

2.28

6.13

4.58

7.66

Simple average applied preferential tariff rate - indicate for

each preferential arrangement

4.23

3.99

4.71

2.35

3.05

4.85

5.50

5.32

4.17

6.20

1.54

4.31

3.33

5.19

Average applied tariff rate for all lines subject to duty

9.32

10.52

5.37

5.00

7.17

10.71

8.65

9.44

6.78

25.55

8.45

8.68

6.13

8.97

Import-weighted average applied tariff rate - specify FOB

or CIF

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Import-weighted average bound tariff rate - specify FOB

or CIF

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                Notes

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                (a)     Incorporates 1999 notification to WTO, ITA Agreement, and other recent modifications to HS codes that have not yet been notified.

                      (b)     ASEAN Free Trade Agreement.

                      (c)     Refers to lines with quotas, prohibitions, or other import licensing restrictions.

                     (d)      The ad valorem equivalent of specific tariffs for rice is assumed to be 30 percent.

                     (e)      Because of difficulties in matching new HS codes with those from previous years, import weighted data are not yet available.

 


 

APEC INDIVIDUAL ACTION PLAN:  TARIFF DISPERSION TABLE FOR 2001

(PLEASE COMPLETE BOXES)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

All Goods

Agriculture excluding Fish

Fish and Fish Products

Petroleum Oils

Wood, Pulp, Paper and Furniture

Textiles and Clothing

Leather, Rubber, Footwear and Travel Goods

Metals

Chemical & Photographic Supplies

Transport Equipment

Non-Electric Machinery

Electric Machinery

Mineral Products, Precious Stones & Metals

Manufactured Articles, n.e.s

NUMBER OF TARIFFS AT OR BETWEEN

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0%

1590

136

11

7

227

18

35

120

211

70

471

118

87

79

0%<X<=5%

3337

769

131

10

200

305

95

383

758

26

91

129

220

220

5%<X<=10%

1132

31

0

0

68

383

46

144

148

17

46

101

14

134

10%<X<=15%

967

9

5

0

31

468

43

140

33

29

37

54

22

96

15%<X<=20%

146

11

0

0

0

0

1

74

44

2

0

0

0

14

>20%

113

32

0

0

0

0

0

4

1

76

0

0

0

0

Specific

5

5

0

0

0

0

0

0

0

0

0

0

0

0

TOTAL

7290

993

147

17

526

1174

220

865

1195

220

645

402

432

543

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                 Note

 

 

 

 

 

 

 

 

 

 

 

 

 

 

                                      

 

 



Chapter 2 : Non-Tariff Measures

Chapter 2 : Non-Tariff Measures

 

Objective

 

APEC Economies will achieve free and open trade in the Asia-Pacific Region by :

 

(a)           Progressively reducing non-tariff measures

 

(b)          Ensuring the transparency of APEC economies’ respective non-tariff measures

 

 

Guidelines

 

Each APEC economy will:

 

(a)                 take into account, in the process of progressive reduction of non-tariff measures, intra-APEC trade trends, economic interests and sectors or products related to industries in which this process may have positive impact on trade and on economic growth in the Asia-Pacific region;

 

(b)                ensure that the progressive reduction of non-tariff measures is not undermined by the application of unjustifiable measures; and

 

(c)                 consider extending, on a voluntary basis, to all APEC economies the benefits of reductions and eliminations of non-tariff measures.

 

 

Collective Actions

 

APEC Economies have agreed to take collective actions to help achieve these goals.  These actions are contained in Collective Action Plans (CAPs) which are updated annually.  The current CAP relating to non-tariff measures can be found in the Tariffs and Non-Tariff Measures Collective Action Plan.

 

 

Indonesia Approach to Non-Tariff Measures in 2001

 

Indonesia is committed to working together with other member economies to achieve free and open trade in the region by reducing unjustifiable non-tariff measures and ensuring the transparency of non-tariff measures.

 

Indonesia has committed in the context of Uruguay Round to eliminate 98 non-tariff barriers by the year 2004. In addition, Indonesia had accelerated the elimination process by eliminating so 83 non-tariff barriers in 1996.

 

Indonesia also has undertaken unilateral actions to remove or reduce non-tariff barriers which are not included in the Uruguay Round commitments, as follows :

 

- firstly, the removal of restrictions on import of used and new fishing vessels;

- secondly, gradual reduction of export taxes on logs, sawn timber, rattan and minerals;

- thirdly, the removal of restrictions on import and marketing of wheat, wheat flour, soybean and garlic;

- fourthly, the opening of sugar and rice import to general importers; and

- fifthly, relaxation of import licensing requirements and other restrictions previously applied to the automotive sector.

 

To achieve the Bogor Goal, Indonesia will refrain from introducing unnecessary barriers to trade while gradually removing the existing non-tariff measures, except those which may be justified for health, safety, security and environmental reasons.

 

 

 


 

 

Case Study of an NTM Reduction or Elimination Initiative

 

In the past, import surcharges have been a major feature of the Indonesian tariff. Surcharges had been imposed on certain items to offset the elimination of NTMs such as restrictive licensing or import bans and, hence, in facilitating adjustment by domestic producers. In the Uruguay Round, Indonesia committed itself to eliminate surcharges on all bound items ( a total of 172) within ten years.

 

This commitment was fulfilled ahead of schedule. Surcharges imposed on all imported goods, whether bound or unbound, were eliminated on 1 January 1996, in accordance with the new Customs Law. In effect, surcharges were either merged with existing tariffs (about 80 items).

 


Indonesia's Approach to Non-Tariff Measures in 2001

Section

Improvements Implemented Since Last IAP

Current Non-Tariff Measures Applied

Further Improvements Planned

 

Quantitative Import Restrictions/

Prohibitions

 

 

 

Indonesia has undertaken unilateral actions to remove or reduce non-tariff barriers which are not included in our UR commitments, as follows : (i) the removal of restrictions on import of used and new fishing vessels; (ii) gradual reduction of export taxes on logs, sawn timber, rattan and minerals; (iii) the removal of restrictions on import and marketing of wheat, wheat flour, soybean and garlic; (iv) the opening of sugar and rice import to general importers; and (v) relaxation of import licensing requirements and other restrictions previously applied to automotive sector.

 

 

- Indonesia maintains import bans or prohibitions due to health, environmental, cultural and social reasons.

 

- As a signatory to the Montreal and Vienna Conventions, Indonesia bans trade in chloro-fluoro carbons and conforms with the decisions taken by the parties to the Basel Convention on waste and waste products.

 

For contact point and further detail:

http://www.dprin.go.id

Directorate General for Foreign Trade

Ministry of Industry and Trade

T: (62-21) 3858204, 3860940, 3450071

e-mail: djdaglu@dprin.go.id

 

 

No further improvements planned.

 

 

Quantitative Export Restrictions/

Prohibitions

 

 

 

No changes made since the last IAP

 

 

- Export bans and prohibition covers several products such as fisheries, wildlife, hide and skins of certain animals such as reptiles, rubber materials (notably rubber block) and variety of waste and scrap products. The aim is to protect endangered species of wild flora and fauna as well as to prevent export of hazardous materials.

 

- Apart from imposing textiles quotas with importing countries, the reason of these export restrictions are based on (i) protection of natural resources and endangered species; (ii) promotion of higher-value-added downstream industries; (iii) upgrading the quality of export products; and (iv) ensuring adequate supply of "essential products", (v) and imposing to controls on textiles and clothing under MFA.

 

 

Export restrictions will be further eliminated.

 

 

Import Levies

 

 

 

Indonesia doesn’t impose import levies.

 

 

Indonesia only applies ad-volarem tariff rate, and has no additional import levies.

 

 

No further improvements

 

 

Export Levies

 

 

 

Indonesia doesn’t impose export levies.

 

- For natural resources, specific taxes have been converted into ad-volarem duties so as to reduce anti-export sentiment while also preventing over exploitation of natural resources and deteriorating of environment. 

 

- Replacing export tax and levies by resource rent taxes. The taxes on log, sawn timber, rattan and sand will be reduced to 15%.

 

 

Reduction of export taxes on certain products will be scheduled.

 

 

Discretionary Import Licensing

 

 

 

No changes made since the last IAP

 

 

Licenses are classified into several types of operation, i.e.: importer-producer (IP licenses), registered importer (IT) and general importer (IU, automatic licensing).

 

For contact point and further detail:

 

http://www.dprin.go.id

Directorate General for Foreign Trade

Ministry of Industry and Trade

T: (62-21) 3858204, 3860940, 3450071

e-mail: djdaglu@dprin.go.id

 

 

No further improvements planned.

 

 

Automatic Import Licensing

 

 

 

No changes made since the last IAP

 

 

- Import licensing is applied to number of products for the health, safety, security, religion or environmental reasons. Products that are subject to import licensing include alcoholic beverages, chemicals included in List 2 and 3 of “the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction” and hazardous waste and waste products.

 

- Information on this subject could be accessed through website of Ministry of Industry and Trade :

 

http://www.dprin.go.id

Directorate General for Foreign Trade

Ministry of Industry and Trade

T: (62-21) 3858204, 3860940, 3450071

e-mail: djdaglu@dprin.go.id

 

 

No further improvements planned

 

 

Discretionary Export Licensing

 

 

 

No changes made since the last IAP

 

 

Indonesia's exports on certain agricultural products,  mining products , petroleum products and manufactured products (especially for textiles and clothing) were regulated by the Government. Export of those products is possible only through approved and registered exporters. In the case of textiles and clothing products, the arrangement was designed to monitor quota allocation and entitlements under the MFA regime.

 

For further detail and contact point:

 

http://www.dprin.go.id

Directorate General for Foreign Trade

Ministry of Industry and Trade

T: (62-21) 3858204, 3860940, 3450071

e-mail: djdaglu@dprin.go.id

 

 

No further improvements planned

 

 

Voluntary Export Restraints

 

 

 

No changes made since the last IAP

 

 

Indonesia applies VER for certain agriculture products (such as rubber) under the provision of international agreement

 

For further detail and contact point:

http://www.dprin.go.id

Directorate General for Foreign Trade

Ministry of Industry and Trade

T: (62-21) 3858204, 3860940, 3450071

e-mail: djdaglu@dprin.go.id

 

 

 

No further improvements planned.

 

 

Export Subsidies

 

No improvement since last IAP

 

Indonesia doesn’t apply export subsidies

 

 

No actions required.

 

Minimum Import Prices

 

 

 

No improvement since last IAP

 

 

Indonesia doesn’t apply export subsidies

 

 

No actions required.

 

 

Other Non-Tariff

Measures Maintained

 

 

 

No improvement since last IAP

 

 

Indonesia doesn’t apply export subsidies

 

 

No actions required.



Improvements in Indonesia's Approach to Non-Tariff Measures since 1996

Section

Position at Base Year (1996)

Cumulative Improvements Implemented to Date

 

General Policy

Position

 

 

 

Indonesia has committed to eliminate 98 non-tariff barriers by the year 2004 in the context of Uruguay Round (UR). In fact, we had accelerated the elimination process which in 1996, 83 non-tariff barriers had been eliminated.

 

 

Indonesia continue to eliminate the remaining NTMs measures that are part of its UR commitments by 2004.

 

 

Quantitative Import Restrictions/

Prohibitions

 

 

 

Indonesia doesn’t impose import prohibitions except for health reason, moral hazard, environmental protection or prohibited under international agreement

 

 

- In July 1997, Indonesia removed restrictions on the import of used fishing vessels. This policy was further expanded in 1998 to include all new and used ships.

 

- In 1997 restrictions on import and marketing of wheat, wheat flour, soybean and garlic were removed

 

- In 1998 import of sugar and rice was opened to general importers

 

 

Quantitative Export Restrictions/

Prohibitions

 

 

 

Indonesia applies export prohibitions only for the domestic supply reason, environmental protection, and product export development.

 

 

There has not been any change since 1996.

 

 

Import Levies

 

 

 

Indonesia doesn’t impose any import levies.

 

 

There has not been any change since 1996.

 

Export Levies

 

 

 

Indonesia applied export tax to 80 products covering a wide range of forest products (notably logs, sawn timber and rattan), agricultural products (crude palm oil and coconut oil), and mining and metal products (ores and concentrates of copper, lead, tin and platinum, aluminium waste), etc

 

 

- In 1998, export taxes on leather, cork, ores and waste alluminium products had been abolished.

 

- In March 1998, export taxes on log, sawn timber, rattans and minerals were reduced to maximum 20 percent.

 

- In December 1999 export taxes on log, sawn timber, rattan and sand to 15 percent as a step toward the policy of replacing export tax and levies by resource rent taxes.

 

- The maximum export  taxes on palm nuts and kernels have gradually been reduced as follows:

   - to 40 percent in April 1998;

   - to 10 percent in July 1999;

   - to 3 percent in February 2001;

 

 

Discretionary Import Licensing

 

 

- Indonesia applied a number of tariff lines subject to import licensing for 197 in year 1996. The coverage of this licensing varies from food commodities (such as rice, wheat, sugar) to strategic industries products (chemicals, iron, steel etc).

 

 

- In 1998, several restrictions were abolished, allowing free competition in some areas, such as : 1) import and marketing of wheat, wheat flour, soybean and garlic; and 2) sale or distribution of flour.

 

- In June 1999, 47 import licensing requirements on motor vehicles were relaxed.

 

- In January 2000, general importers are allowed to import sugar and rice.

 

- Trend of the import licensing, are as follows :      

 

   - Year 1997      189  tariff lines

   - Year 1998       199 tariff lines

   - Year 1999       121 tariff lines

   - Year 2000       121 tariff lines.

 

 

Automatic Import Licensing

 

 

 

Indonesia maintained this measure, which affected to about 40 tariff lines. The restrictions covers on chemical products, including waste and pesticides, chloro-fluoro carbons and in conformity with decisions taken by Basel Convention.

 

 

- The importation of used trawlers and merchant-ships was liberalized in July 1997.

 

- The ban on the importation of used ships was abolished in 1998.

 

 

Discretionary Export Licensing

 

 

 

Indonesia imposed export licensing for 1800 tariff lines ranging from coffee, vegetables, spices, manioc, wood, plywood, processed timber, to liquified gas and mining products.

 

 

- In 1998 many agricultural products had been removed such as lived cattle, wheat, wheat flour, sugar, silver, gold, tin, LNG, butane, propane and some chemicals.

 

 

Voluntary Export Restraints

 

 

 

Indonesia applied export control for natural rubber under the international agreement.

 

There has not been any change since 1996.

 

 

Export Subsidies

 

 

 

Indonesia didn’t impose this measure.

 

 

There has not been any change since 1996.

 

Minimum Import Prices

 

 

 

Indonesia didn’t impose this measure.

 

 

There has not been any change since 1996.

 

 

Other Non-Tariff

Measures Maintained

 

 

 

There is no other NTM imposed by Indonesia

 

 

There has not been any change since 1996.

 

 



Chapter 3 : Services

Chapter 3 : Services

 

Objective

 

APEC Economies will achieve free and open trade and investment in the Asia-Pacific Region by :

 

(a)     Progressively reducing restrictions on market access for trade in services; and

 

(b)    Progressively provide for, inter alia, most favoured nation (MFN) treatment and national treatment for trade in services.

 

 

Guidelines

 

Each APEC economy will:

 

(a)     contribute positively to the WTO negotiations on trade in services;

 

(b)    expand commitments under the General Agreement on Trade in Services (GATS) on market access and national treatment and eliminate MFN exemptions where appropriate; and

 

(c)     consider undertaking further actions to facilitate supply of services.

 

 

Collective Actions

 

APEC Economies have agreed to take collective actions to help achieve these goals.  These actions are contained in Collective Action Plans (CAPs) which are updated annually.  The current CAP relating to services can be found in the Services Collective Action Plan.

 

 

Indonesia's Approach to Trade in Services in 2001

 

            1. Indonesia has committed and has taken various measures to trade in services :

             · Indonesia has taken measures unilaterally to reduce restrictions on market access to trade in services

            · Indonesia has adopted extensive deregulation measures from time to time to allow greater private sector’s participation and to facilitate market entry by foreign suppliers

 

            2. Indonesia’s services is quite open. In some several services sub-sector, foreign participation may have majority position.

 


Chapter 3 : Indonesia's General Approach to Trade in Services in 2001

*Competition Policy will be dealt with in the Competition Policy Chapter (link)

Section

Improvements Implemented Since Last IAP

Current Entry Requirements

Further Improvements Planned

 

Foreign Investment or Right of Establishment (including Joint Venture Requirements)

 

 

 

For further information see Cha