Problems relating to Trade and Investment on Indonesia
9. Restrictive export/import trade, duty, and customs clearance |
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Issue |
Issue details |
Requests |
Reference |
| (1) High Import Duty | - High import duty of 24% is levied upon Chinese metal fittings and Japanese decorated sheets. - While zero import duty applies to single function projector (for being an ITA Product), high import duty applies to multi-function projectors. |
- It is requested that GOI takes step to reduce the tariff rate. - it is requested that GOI takes step to: -- work for solution of the problems. -- confirm and provide the latest information on ITA expansion, and -- continues to furnish information on further movements on this issue. |
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| (2) Abrupt Raise of Import Duty | - Import duty on printers abruptly announced in December 2010, was implemented from January 2011. Currently, 5% import duty is levied on printers. - In January 2011, GOI abruptly raised the import duty rate (from zero to 5%) on certain import products (parts for refrigerators, etc.) without observance of the official publication period, which was abruptly given at its website only after enforcement of the higher import duty levy. It has materially damaged the business operation of the factory. |
- It is requested that GOI provides sufficient and adequate explanation. | - Financial Minister Decree No.241 [2010] of 22 December 2010: Peraturan Menteri Keuangan Nomor 241/PMK.011/2010 |
| (Action) - In July 2005, ASEAN/PRC FTA (ACFTA) entered into force. - In June 2007, ASEAN/South Korea FTA (AKFTA) entered into force. - In January 2010, ASEAN/India FTA (AIFTA) entered into force. - In January 2010, ASEAN Trade in Goods Agreement (ATIGA) entered into force, replacing The Common Effective Preferential Tariff (CEPT) Scheme. - On 2 June 2011, Ministry of Finance promulgated Regulation No. 80/PMK.011/2011, raising the import tariff rate on 8-items of processed foods from 5% to 10%. - On 11 February 2014, the Indonesian legislature passed the new Trade Law that expressly vests GOI with the right to restrict export/import for the purpose of protecting the domestic market and industries. It is a matter of concern to all that the new Trade Law will work to strengthen the administrative power toward tightening the going import licence, quantitative restrictions, application of compulsory standards, and may trigger the legislative intervention into the FTA issues. - On 28 February 2015, ministry of finance promulgated regulation on MNF (most favoured nation) tariff rate for imported steel products destined to the downstream industry. The regulation has been enforced since 30 May 2015. - On 23 July 2015, ministry of finance promulgated ministerial regulation No. 132/PMK.010/2015 that raised MFN tariff rates, which have been enforced since 23 July, 2015. Products subject to tariff rate increase cover a wide range, including among others, cars, foods, apparel, etc., from the previous 10%-40% to flat 50% on cars, from 5% to 20% on coffee/tea, from 5% to 30% on meat, quite a substantial raise in all cases. On alcoholic drinks, the previous per liter tariff levy has been changed to the maximum 150%, proportionate to the alcoholic level. In addition, consumable property, such as air conditioners and apparels are subject to tariff rate increase. |
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| (Improvement) - In July 2008, Japan-Indonesia Economic Partnership Agreement (JIEPA) entered into force. Under JIEPA, the tariff-exempted items are expanded from 34% as of April 2005 to 96%, inclusive of exemption of import tariff for steels used for specified purposes. Import tariff on electric/electronic products is repealed with immediate effect or will be reduced in stages by 2010. Import tariff for built up automotive vehicles over 3000 cc will be repealed by 2012, while on other vehicles (inclusive of bus and trucks) it will be reduced to less than 5% or be repealed. The import tariff on the majority of parts for automotive vehicles will be repealed by 2012, while 5-20% tariff will not be imposed on high class steel materials used for automotive vehicles and parts thereof, electric/electronic products, construction machinery & equipment and energy sectors (Under the User Specific Duty Free Scheme [USDFS]). - On 14 April 2008, Japan and the ASEAN member states concluded ASEAN-Japan Comprehensive Economic Partnership Agreement (AJCEP). - On 30 June 2008, Minister of Finance Regulations Nos. 94, 95 and 96 were promulgated, setting forth the method for tariff rate reduction under JIEPA, Harmonised Tariff Schedule up to 2012, and 328 items for tax exemption under USDFS. - In 2010, the ASEAN+6 such as Indonesia repealed 99% of the CEPT import tariffs. - On 2 June 2011, Ministry of Finance (MOF) promulgated Regulation No. 80/PMK.011/2011 dated 13 April 2011, amending import tariffs on 190-items (of raw materials, capital goods, and consumables in chemical goods, foods, machineries, electronic appliances, and marine transport industries) in support of the domestic industries (particularly, industries in agriculture, printing, textiles, textiles, leather, footwear, lighting equipment, rubber, plastic, shipping, etc.) entered into force on 18 April 2011. This Regulation repealed 5% import tariff on 182-items of raw materials and capital goods, in order to support industries in raw materials, capital goods and related industries. The breakdown of these items are: (1) basic chemicals - 59-items, (2) soybeans - 1-item, (3) machineries - 91-items, (4) equipment - 16-items, (5) photographic equipment - 2-items, and (6) shipping - 13-items, out of which under Chapter 84 are included: certain steam turbine, air/vacuum pump, centrifugal separator, chicken egg incubator, machineries (for printing, textile, leather, footwear, lighting equipment, rubber and plastic), under Chapter 85 are included: certain electromagnet, sound and video recording parts, electrolytic capacitor for power generation, electric switch/circuit, picture tube, and insulated wire, while under Chapter 90 are included: certain lens, camera and x-ray equipment. |
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| (3) Tariff levied on Solar Module in violation of ITA | - Solar module being a product subject to ITA (Information Technology Agreement), the ITA signatories are under obligation to repeal the concessionary tariff rate on solar module (HTS No. [the first 6-digits]: 8541.40). Indonesia, being a signatory to ITA, also, the ceiling of the Indonesian WTO concessionary rate (each WTO signatory committed on import product) is "0%". Nevertheless, GOI levies 5% tariff upon import of the actual solar module. (Remarks:) Indonesian tariff on "solar module": -- tariff schedule No: 8541.40.22.00 -- WTO Schedule of Tariff Concessions: 0% -- Most favoured nation tariff rate: 5% (The tax rate actually levied in Indonesia) |
- It is requested that GOI applies zero per cent tariff in pursuance of the WTO concessionary list and under the ITA's most favoured nation tariff rate (of "0%"). (The Indonesian operation described on the left column is in violation of WTO agreement (GATT Article 2), and ITA, which is aimed at removing tariffs on information technology related products). | - WTO Schedule of Concessions - List of Goods subject to ITA - Indonesian Ministry of Finance Tariff Schedule |
| (Info) '- The URL's of the coverning laws: -- WTO Schedule of tariff concessions: http://www.wto.org/english/tratop_e/schedules_e/goods_schedules_table_e.htm -- Ministerial declaration on trade in information technology products - situation of schedules of concessions in goods: http://www.wto.org/english/docs_e/legal_e/itadec_e.htm |
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| (4) Lopsided Import Duty Rates between Parts and Finished Products | - Import duty is zero on construction equipment. However, import duty is levied on certain parts for manufacturing construction equipment. Despite the MFS contribution by investment into equipment, promotion of employment, acquisition of foreign currency from export, payment of business tax, etc, the higher import duty levied on Parts debilitates competitive edge for domestically manufactured construction equipment of member firm's subsidiary (MFS). - Due to the absence in the Negative List of the Industrial Parts (IDP's) not available for procurement domestically in Indonesia, GOI levies high import duty on them. Furthermore, registration of the IDP's on the master list does not remove IDP's from the goods subject to import duty. This is the problem. The IDP's (car parts) in concern are ERW (Electric Resistance Welded) pipes, while such ERW pipes usable by hydraulic equipment for construction machines cannot be locally procured in Indonesia. - Import duty is zero on finished products under AFTA, while 5-10% import duty is levied on import of raw materials. This tariff heavily burdens the domestic sales in Indonesia of the products that MFS locally manufacture in Indonesia. |
- It is requested that GOJ and GOI reopen negotiation for Japan/Indonesia Economic Partnership Agreement (incorporating tariff reduction in stages). No development has taken place despite the proposal made by HINABI, Association of Heavy Equipment Manufacturers of Indonesia. - It is requested that GOI properly applies the tax exemption measures on products, which cannot be locally procured in Indonesia. - It is requested that GOJ takes step to persuade GOI to levy zero import duty on the raw materials. |
- Japan/Indonesia Economic Partnership Agreement - Change in HS Code by GOI - Negative List (Minister of Industry Regulation No.106 of 29 October 2012) - Trade Regulation |
| (5) Difficulty in Activating Import Licence Scheme | - The import licence scheme (ILS) comprises of two types, API-P (import of materials for manufacturers) and API-U (import of goods in general), provided, however, that a single firm is disallowed to obtain both licenses. Consequently, ILS bars manufacturers from making "pass-through sales of finished products" from group companies operating in overseas' countries, hence depriving them of the freedom of mutually complementing production. - Import licence issued to manufacturers is limited to raw materials and work-in-process, excluding finished products. As an exception, by acquisition of importer producer licence (importir produsen:IP), manufacturers may import finished products. However, its acquisition takes a long time, necessitating, moreover, a trip to Jakarta. |
- it is requested that GOI takes step to enable acquisition of both licences by a single firm so that manufacturers may import finished products. | - Customs Act (November 2006) - Industrial and Trade Regulation - Minister of Trade Regulation of 28 September 2015 (70/M-DAG/PER/9/2015) |
| (Action) - On 1 May 2012, the Minister of Trade ("MOT") issued MOT Regulation No. 27/M-DAG/PER/5/2012, revoking previous Regulations. Registration No. 27/M-DAG/PER/5/2012 restricts the scope of sectors to distributors and trade firms holding General Import Licence (or Angka Pengenal Importir-Umum, namely,) General API (API-U) to only 1-sector per enterprise out of the 21-sectors classified by HS Code numbers. - Minister of Trade Regulation No. 27/M-DAG/PER/5/2012 promulgated on 1 May 2012 amends previous Regulation as regards the provisions for import licence on finished products, restricting import under Producer API (API-P) that allows the holder of API-P import of products only for the purpose of conducting a "market test" or for a complementary purpose (products which are not produced in Indonesia by the importer itself) and only for a limited quantity and limited period, while the holder of General API (API-U) is licenced to import only products in 1-sector per enterprise out of the 21-sectiors identified by the Regulation. While under this Regulation, application must be continued until 31 December 2012, further adjustment is under deliberation, as it has met with strong protests from the industries in Japan, the U.S., etc. - In September 2015, minister of trade promulgated regulation No. 70/M-DAG/PER/9/2015 eliminating the provisions that granted import of finished products by the enterprises issued with manufacturer/importer number (API-P). As a result, such firm with API-P in hand can only import raw materials and semi-finished products. - On 28 September 2015, subject to acquisition of minister of trade import licence, the existing importer's number (API) requires renewal by 30 June 2016 on both general API (API-U) and manufacturer API (API-P). (trade minister regulation No. 70/M-DAG/PER/9/2015 of 28 September 2015)). - On 22 March 2016, ministry of industry promulgated regulation, concerning issuance of import licence for finished products (complementary goods and goods for test market purposes and after-sales service) for manufacturers holding manufacturing importer licence number (API-P)(enforced on 22 March 2016). Resulting from the API-P holder's recovery of import qualification, acquisition of ministry of industry recommendation letter has become necessary, triggering the imposition of additional Import quantitative restriction on specific industries. - Ministry of trade regulation on restricting import of finished products, due for enforcement from 1 January 2016, has been postponed by opposition of the Industries. New regulation is under deliberation with the exclusionary provision that recovers API-P holders' import right of finished products. |
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| (Improvement) - On 21 September 2012, MOT promulgated Regulation No. No.59/M-DAG/PER/9/2012, deregulating Regulation No. 27/M-DAG/PER/5/2012 that allows the holder of API-U licence to import plural items of products per importer, in the case where an importer has a special relationship with the party abroad from whom the imported items are purchased (agreement showing control over the economic activities, ownership in equity share, distribution agreement, loan agreement, supplier contract, etc.) - On 21 October 2015, Ministry of Trade (MOT) promulgated and enforced from 1 January 2016, regulation on registration and issuance of importer's licence number (API). API-U holders may import beyond the single product, without needing to apply new number, repealing the (complementary goods or samples) restrictions on API-U holders. Furthermore, MOT introduced "post audit" scheme that monitors importers observance of API-U or API-P regulation. - On 23 December, 2015, MOT promulgated minister of trade regulation No.118, authorising enterprises holding manufacturer/importer registration No. (API-P) to import and sell to other enterprises industrial products as complementary goods, industrial product samples for test marketing, and for after-service. (enforced on 1 January 2016). |
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| (6) Nebulous and Delayed Import Licence Acquisition Procedures | - On import of mineral oil (including lubricant), machines, etc., the following issues get in the way of smooth economic activities: (1) The flow is nebulous on the licence acquisition process, (2) It is nebulous how long it takes for its acquisition. - On ink-jet colour printers, it requires filing of import licence application in every 6-months per category: 1) SFP, 2) MFP 3in1, and 3) MFP 4in1. It materially impacts MFS sales activities, as it takes substantial time from the application date to the approval date. Moreover, there have been cases where quantitative restrictions have been imposed between the application and approval, impacting upon MFS sales activities. |
- It is requested that GOI determines: -- the process, and -- the period. - It is requested that GOI takes step to: -- expedite the approval and licencing process, and -- repeal import quantitative restrictions. |
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| (7) Nebulous Abrupt Forced Suspension of Import Customs Clearance | - Relative to import of alloy metals that compels import licence acquisition and pre-shipment inspection, in the absence of a clear-cut guideline, customs suddenly suspended its clearance. As a result, it led to an advent of abnormal state of affairs, as the cargoes loaded on the steamer before completion of the pre-shipment inspection, had to tarry for about two months at the Port. There were frequent occurrences of hiatus of the production lines at the customers. Moreover, importers refused to pay huge amounts of the warehousing costs. It takes substantial time for acquisition and renewal of licences. Pending acquisition, MFS faces inability to get cargoes cleared through the customs. It hinders stable maintenance of foreign trade transactions. |
- As it stands, it takes about 2-months for acquisition/renewal of import license. It is requested that MOI and MOT expedite the issuance/renewal procedures. | - Ministry of Trade Decree No.28 |
| (8) Rigorous/Nebulous/ Delayed Food Import Procedures |
- Import of 3-fresh foods (meat, vegetable, and fruit) requires applications for import quota per item. It takes much time and cost for preparing multiple requisite documents until the completion of customs clearance. In addition, when importing from Japan, non-tariff barriers exist: for example, imported products must pass the radioactive contamination inspection on the total lot, the pre-shipment standards inspection, hygienic quality, compositional and microbiological testing. General processed foods are lumped together in the flow of intensified regulatory control on imports. | ||
| (9) Provisions Restricting the Import of Lubricants | - A member firm owns water treatment plant engineering company (WTPE) that imports and supplies to its domestic customers centrifugal dehydrators imported from abroad as one of the constituents of the system delivered to customers. After delivery and during the product maintenance, for purpose of maintenance, WTPE receives request for purchase of lubricants. No licence is necessary when WTPE imports lubricants as one of the constituents of the system, however, NPT (Nomor Pelumas Terdaftar=Registration No. for Lubricants) is necessary for import of lubricants alone, which can be imported only by IP (Importer & Producer). Therefore, WTPE faces difficulty in providing proper product maintenance service to its customers. | - It is requested that GOI takes steps to repeal the restrictions for import of lubricants used for express purposes of product maintenance for the products procured abroad. | - Decision of Minister of Industries & Trade No. 233/2001 (233/MPP/KEP/7/2001) |
| (10) Delayed Application of AJCEP | - Although the material procurement and manufacture of products have grown by leaps and bounds, GOI's delayed ratification of AJCEP disturbs strengthening more the manufacturing network through an effective exploitation of the Indonesian assets. | - It is requested that Indonesia to become a signatory to AJCEP for activating raw materials procurement and producing fabrication. | |
| (11) Disunity and Opacity in COO Description Requirement | - There is no established uniform and transparent interpretation rules over the trivial entry errors, etc. on HS code, customs valuation, C/O, etc. so that cases of unjustifiable duty collection occur frequently, due to the improper judgement of the customs personnel. | - It is requested GOI takes step to upgrade the appreciation of the customs personnel (in regard to provision of guideline, etc. on fine detailed C/O description, stipulated in Japan). | |
| (12) Difficult Use of Third Country Invoice under FTA | - Since January 2010, ASEAN-PRC FTA(ACFTA) has removed substantial import duty, provided, however, Indonesia does not apply "Form E" on blockage transactions via a third country so that the original duty applies in such case, whereas. Thailand, Vietnam, etc. do apply "Form E" on blockage transactions via a third country. Since October 2011, pursuant to Indonesian Customs Authority Notification, customs clearance under the FTA duty rate has been made possible. A member firm of JBCTIF has begun applying the FTA duty rate starting from the November 2011 shipment ex-PRC factory. However, the Form E issuance status remains unstable as to PRC CIQ, where 80% of Form E issuance is rejected by CIQ. As regards the documents on import customs clearance, GOI requires description of the import invoice amount on Form D/E that differs from the ex-factory amount so that documental issuance can be made only after shipment of goods from the factory. In case shipment is made from countries closer to Indonesia, goods arrive at the destination earlier than the documents from time to time. As a result, much time is wasted for customs clearance. |
- It is requested that GOJ negotiate with GOI for it to: -- deregulate the confirmation requirement to level with other ASEAN Member States, as MFS has assigned a staff solely devoted to checking the documents related to customs clearance with the Customs Authority before issuing Form D in order to minimise the customs clearance delay, and -- obviate the need for the amount description at least as regards Form D/E. "The IV No. for Importer" described on the documents for importer, separately submitted would dissolve the problems. |
- Form E |
| (Action) - On 27 August 2012, AEM approved the recommendation for repeal of the F.O.B. price description requirement on Form D at the ASEAN Economic Ministers (AEM) Conference and at the 26th AFTA Council, targeting approval in February 2013 and enforcement by Mid 2013. As of 17 January 2014, it remains rejected. |
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| (13) Complex/Nebulous USDFS under Japan/Indonesia EPA | - "Industrial minister regulation No.43/M-IND/PER/7/2008" sets forth the industrial group entitled to the beneficiary treatment (B/T) under the user specific duty free scheme (USDFS) set forth under the framework of republic of "Indonesia/Japan Economic Partnership Agreement". The enterprises in concern are classified as "parts and accessories for vehicles with 4-wheels or more with engine", with a possibility of being considered eligible for SKVI-USDF. However, it takes a complex procedure, needing a vast amount of documents, a long time with nebulous response, if any. In practice, obtaining the B/T (USDFS) approval is difficult. |
- It is requested that in enforcing USDFS, GOI takes step to: -- improve the practical methods of filing application, examination protocol, and its requisite period, -- clarify if the application meets the requirements. |
- Industrial Minister Regulation No.43/M-IND/PER/7/2008 |
| (14) Non-Acceptance of CO under Japan/Indonesia EPA | - When discrepancies occur in the first 6-digits between EPA HS (2002) and HS (2012) at the point of import/export, upon import declaration at the Indonesian customs, special certificate of origin (CO) gets rejected at Indonesia customs upon filing import declaration. As a result, the beneficial treatment under EPA gets denied, even if the origin qualification is amply satisfied. | - It is requested that GOI: -- accepts the CO requirements by submission of comparative list of HS code, old and new, and -- incorporates the comparative list into the wordings of EPA between GOI and GOJ. |
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| (15) Denied Retroactive Application of EPA Certificate of Origin (CO) | - After completion in Indonesia of customs clearance, retroactive application of EPA CO is denied. Also Indonesian customs requires the original of the specific CO. Because of this requirement, if the cargoes get airfreighted in emergency, importers are denied of the EPA benefits in certain cases. | - It is requested that GOI accepts the retroactive application or accepts CO in (PDF) copy. | |
| (16) Abuse of Antidumping Measures | - On 24 June 2011, GOI initiated antidumping investigation on cold rolled steel from 5-Countries/Areas, including Japan, ROK, ROC, PRC and Vietnam. - On 19 March 2013, Ministry of Finance made final determination of dumping finding levying, for 3-years, dumping duties in the range of 5.9% to 55.6% against all 5-subject countries. Although no distinction can be made on HS code commodity classification, most of cold rolled steel plates imported from Japan are destined for use in automotive, electric/electronic products manufacturing industries, therefore they are distinctively different in both quality and supply volume from products manufactured in Indonesia. However, GOI disregards the Japanese respondents' contentions of "No Injury" to the Indonesian domestic industry. - On 19 March 2013 Anti-Dumping Committee of Indonesia, Ministry of Commerce (KADI) released antidumping duty levy on cold rolled steel coils and sheets (CRC/S) imported from Japan, PRC, ROK, Vietnam and ROC. As to Japanese steel manufacturers, 18.6% and 55.6% antidumping duties apply in total disregard of the Japanese respondents' contentions of "No Injury" to the Indonesian domestic industry, namely, most cold rolled steel plates imported from Japan are destined for use in automotive, electric/electronic products manufacturing industries, distinctively different in both quality and supply volume from the cold rolled steel plates domestically manufactured in Indonesia. - Import restrictions upon steel products by antidumping measures: -- Antidumping measures on cold-rolled steel: antidumping duty levied on cold-rolled steel from Japan, ROK, Taiwan and Vietnam. -- Antidumping duty levied on carbon steel (aluminium zinc plated) from Vietnam/Taiwan/ROK/etc. -- Safeguard measures upon wire rod: It is likely import embargo could result, if the law is invoked. - Antidumping duty levied on cold-rolled steel from Japan: GOI levies antidumping duty on cold-rolled steel from Japan, despite the fact that the Japanese products, mostly supplied to cars and home electric appliances demanding high quality, do not substantially compete against the Indonesian products. Therefore, it can give no material injury to the domestic industry. Thus, exclusion from the Japanese products from the antidumping duty levy is being requested. On 22 December 2014, Ministry of Finance (MOF) announced exclusion of the Japanese products in concern from antidumping duty levy on the ground of their chemical contents, without however, giving precise conditions for the exclusion. |
- It is requested that GOI: -- revokes the Antidumping Measures, or -- sets in place Exclusionary Measures. - It is requested that GOI repeals the antidumping determination (and applies the antidumping measures by reflecting the reality.) - It is requested that GOI avoids getting trapped into useless protectionism of the domestic Industries (including whether the local production is feasible) and investigate the ongoing state of affairs carefully, before making decisions. - Indonesia imports cold-rolled steel from Japan, 70% to car industries, and 5% to electric/electronic products industries. The MOF Announcement on the left column is ambiguous if the products are really excluded from the antidumping duty levy by the MOF announcement. |
- Regulation No. 34 Antidumping Law - Ministry of Finance Regulation No. 65/PMK.011/2013 dated March 19, 2013 (as amended by Ministry of Finance Regulation No. 224/PMK.011/2014 dated December 22, 2014 |
| (Action) - On 19 March 2013, Indonesian Anti-Dumping Committee (KADI), Ministry of Trade published imposition of anti-dumping duty on cold rolled coil, steel sheet (CRC/S), imported from Japan, South Korea, Vietnam and Taiwan. GOJ has sought GOI's special consideration, while Japanese industrial association has requested application of exclusionary measures as to Japanese products. - In April 2014, GOI initiated interim review on cold-rolled steel from Japan. - On 30 March 2015, Ministry of Finance (MOF) promulgated ministerial regulation No. 55/PMK.04/2015, clarifying the procedures for collection and refund of antidumping duty (AD) countervailing duty (CV) and safeguard duty (SG) (enforced from 16 April 2015). - On 8 September 2015, Indonesia antidumping committee initiated antidumping sunset review on cold rolled coils and sheets from China, Japan, ROK, Taiwan and Vietnam. - In February 2016, Indonesian car manufacturers requested GOI to exclude imported steel products (used in the car manufacturing process) from the antidumping measures that now impose antidumping duty, as such measures are likely to wane the price competitiveness of the finished products. Conversely, Indonesia iron & steel industry association (IISIA) seeks GOI the maximum use of the locally manufactured cold-rolled steel sheets that fully meet the car manufacturers requirements. |
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| (17) Abuse of Safeguard Measures | - Since 2011, GOI has invoked safeguard measures on multiple steel products. Precisely, on wires (beginning the levy of additional duty ("the Levy") from 23 March 2011), on steel wires (beginning the Levy from 20 November 2012), and on seamless steel wires for excavation of Oil/Gas (beginning Investigation/ Levy from 6 August 2013), and on unalloyed aluminium, and zinc plated steel plate (beginning investigation from 19 December 2012). While it seems these measures are intended to curb import surge from countries other than Japan, it does involve Japan. It interferes with the Japan's effort to maintain a stable international trade environment. |
- It is requested that GOI discontinues abuse of safeguard measures. | - Government Regulation, No. 34 of 2011 Concerning Antidumping Measure, Countervailing Measure and Safeguard Measure |
| (Action) - On 6 August 2013, GOI launched imposition of safeguard measures on seamless steel pipe for oil-gas drilling. - On 5 July 2014, GOI launched imposition of safeguard measures on unalloyed aluminium zinc plated steel sheet. - On 21 January 2015, GOI launched imposition of safeguard measures. - On 6 August 2015, GOI launched imposition of safeguard measures. - MOF launched for 3-years from 18 August 2015 safeguard measures on imported steel rod wires, provided, however, excluding 121-countries, inclusive of the ASEAN 7-countries. - On 28 October 2015, WTO set up a panel upon Vietnam government's complaint on the GOI's initiation of safeguard measures against import of unalloyed flat coiled steel products. |
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| (18) Nebulous Launching of Safeguard Measures | - In regard to the safeguard measures on galvanised steel plate, while ministry of finance gave prior notice to the customs on the commencement date of the safeguard measures, no such notice whatsoever was given to importers. It was only after the launching date of the safeguard measures that importers came to learn the fact. Importers were compelled to continue to import materials without prior measures to the safeguard.. After that, importers, all of a sudden, received order for payment of huge amount of tax on safeguard measures. Such GOI' action hinders maintenance of the stable international transactions. | - In regard to the restrictions on alloy steel, and the safeguard measures on galvanised steel plate that share the common issues, it is requested that GOI, before making decisions: -- invites public comments to hear the views of the industries in concern, -- ascertains the impact upon the industries from implementation of the measures, -- gives extra care to ensure legislative changes gets transmitted timely to the concerned parties, and -- secures ample transitional period to enable importers to make the requisite preparation. |
- Ministry of Trade Regulation No.34/ M-DAG/PER/6/2014 on Safeguard Measures |
| (19) Delayed and Nebulous Customs Clearance Procedures | - In regard to import of instruments, equipment, etc. (Equipment), the requisite documents, requirements, etc. vary by the customs official in charge in contents and in kinds on equipment, which is identical to the one previously imported. - As it stands, it takes 1 to 2-months for completing customs clearance on cargoes shipped by sea, causing problems in business operation. - A lot of time is necessary for import customs clearance, impacting production schedule at factories. Uncertainty in customs clearance procedures defies calculation of the exact schedules all around. - Some customs clearance delays are caused by the absence of customs personnel, etc. - Import customs clearance takes much time, while the cause of delays remains unidentified. |
- It is requested that GOI takes steps to prepare guidelines, clarifying the requisite documents and other requirements. - It is requested that GOI cuts down the time required for completing the customs clearance. - It is requested that GOI streamlines the customs clearance procedures. - It is requested that GOI streamlines the customs clearance procedures. - It is requested that GOI clearly identifies the customs clearance process, and the basis of its judgement. |
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| (Action) - In March 2006, GOI published "Policy Package for Improving the Investment Environment" based on PD No.3 of 27 February 2006. The major programs related to customs clearance include the following items; Amendment of Regulation to streamline customs inspection process during 2006, preparation of import/export application system toward introduction of the single window in 2008, gradual reduction in the use of the red zone and gradual expansion of designated enterprises under the priority lane during 2006, reduction in time and cost for cargo process during 2006, Review of bonded zones, and tightening efforts to annihilate smuggling. The policy cites the following items. There include among others: (a) Streamlining legislation on customs inspection procedure by June 2006, (b) Setting the target for the customs inspection time (30 minutes on green line, 3 days on red line) through expansion of General Customs Bureau' EDI System, (c) Preparing by December 2006 the import/export application system to support the National Single Window 2008 Project, (d) Revising the implementing regulation with a clear and transparent valuation standards applied on a consistent basis for determining green line, red line and gold line through adequate equipment and technology, (e) Editing by June 2006 Guideline setting forth the procedure to follow in customs classification of certain major items, (f) Preparing by March 2006 applications toward the National Single Window 2008 that brings together trade net and port net, reduces the cargo handling time and dispenses with the cost elements incompatible with legislation at Tanjung Priok Port and Skarno Hatta and Soekarno-Hatta Airport, and (g) Obviating the need to go through the local General Customs Bureau offices for registration and application with the view to streamline the customs operation. - On 11 May 2006 PD No.17 was issued to establish The Advisory Team that gives advice to the President consigned to execute tax and tariff reform under PI No.13/2006. - In July 2007, Main Customs Office (KPU) at Tanjung Priok Port started the one-stop-service. - On 1 July 2008, Agreement Between Japan and The Republic of Indonesia for an Economic Partnership came into effect. The Agreement embodies a consultation mechanism in the form of "a Sub-Committee" comprising of government and private sector members, "on Improvement of Business Environment and Promotion of Business Confidence". In respect of customs procedure, the Agreement provides for both parties to make or enhance: 1) Customs procedures that are predictable, consistent and transparent; 2) Customs procedures that are harmonized and simplified; and 3) Cooperation and exchange of information between the customs of Japan and Indonesia. - On 15 July 2009, Ministry of Transport promulgated Circular KN. 42/1/8/DTPL-09 that mandates payment of tally service charges prior to cargo delivery at all ports. - On 23 March 2010, Directorate General of Customs and Excise (DGCE) promulgated Circular No. SE-05/BC/2010) setting forth its policy on examination of Import Declaration Document of Goods under the FTA Scheme with certain Asian Countries/regions. The Circular refers to Indonesian FTA's with The Agreement on The Common Effective Preferential Tariff Scheme for The ASEAN Free Trade Area (CEPT-AFTA), ASEAN-PRC FTA (ACFTA), ASEAN-South Korea FTA (AKFTA) and Japan-Indonesia Economic Partnership Agreement (JIEPA). - On 9 December 2010, MOF promulgated Regulation No. 219/PMK.04/2010 concerning Customs Clearance Procedures for Authorised Economic Operator (AEO), enforced on the same date. AEO is entitled to Preferential Measures in Customs Clearance under the Basic SAFE Framework document concerning Security and Facilitation of the Global Supply Chain (Basic SAFE Framework) of The World Customs Organisation (WCO). On 15 September 2005, GOI signed the Basic Agreement concerning implementation of "the Basic SAFE Framework". While Regulation No.219 sets forth the framework for implementation of AEO, no Detailed Rules have been promulgated for implementing AEO under Mutual Recognition Arrangements (MRA) with other countries. MOF Directorate General of Customs and Excise Duty is responsible for promulgation of Detailed Rules of Implementation for AEO Application, Details on Preferential Measures for Customs Clearance Procedures and MRA related procedures. - On 8 July 2014, GOI promulgated Presidential Regulation No. 71 to ratify "Protocol of Amendment to the International Convention on the Simpification and Harmonaizasion of Customs Procedures (Amended Kyoto Protocol)". -- Presidential Regulation No. 71/2014 [In Bahasa Indonesia]. (http://sipuu.setkab.go.id/PUUdoc/174158/Perprse%20Nomor%2071%20Tahun%202014.pdf) - On 21 July 2014, GOI promulgated New Presidential Regulation No. 76 "For Integration of Indonesia National Single Window (INSW)" -- Presidential Regulation No. 76/2014 [In Bahasa Indonesia]. (http://sipuu.setkab.go.id/PUUdoc/174173/Perpres%20Nomor%2076%20Tahun%202014.pdf) [In Bahasa Indonesia]. |
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| (Improvement) - In December 2004, Japan-Indonesia Joint Economic Forum was inaugurated. It created Japan-Indonesia Strategic Investment Action Plan (SIAP) that addresses to 118 items in 4-sectors, tax/customs duty, labour, infrastructure, and buildup of industrial competitiveness/development of SME's. It is recognised that some advancement has been made over 70% of the targeted items. - Directorate General of Customs & Excise (DGCE) Notice. No.INS-02/BC/2005 sets forth allocation of work time for qualified personnel, appointment of a deputy in the absence of the person with signing authority, discontinuation of morning exercise on Fridays, and improved performance in the Friday afternoon after lunch. - DGCE No. SE-28/BC/2005 "Notice on Customs svc on Saturdays, Sundays and or Other Holidays" extends office hours of Customs Service on Saturdays. - DGCE Notice No.1019/BC.2/2005 replacing Notice No. S-152/BC.04/2001 enables Technical Director to authorize movement of goods from one bonded warehouse to another. - DGCE Note No.S-753/BC/2005 seeks Directors of the local customs IV to exchange dialogs with the related agencies with the view to expedite delivery of imported cargoes in mixed loading at airports. DGCE Note S-754/BC/2005 2005 also seeks Director of Soekarno-Hatta International Airport to exchange dialogs with the related agencies with the view to expedite import/export operations at airports. - Since August 2005, the FAQ Section has been continually updated and expanded at (http://www.beacukai.go.id/) maintained by Directorate General Of Customs & Excise (DGDC). - At the Official Web Site of DGCE updated on 22 August 2005, online pre-instruction system of HS code is established. - GOI now implements National Single Window ("NSW") at Batam port in response to the Agreement to Establish and Implement the ASEAN Single Window ("ASW") signed at the 11th ASEAN Summit in December 2005. Tanjung Priok and Belawan Ports are on schedule for NSW. - MOT Decree No.09/M-DAG/PER/3/2006 provides that Trading License ("SIUP"=Surat Izin Usaha Perdagangan) is issued within 5 days (rather than 7-10 days) and implementation of the administrative penalty is simplified. - The following developments are reported during April 2006 under PI No. 13/2006: --Cargo handling time is shortened by cutting down the cargo delivery time from 5 days to 3 days at ports. --The number of Qualified Importers is increased from 71 to 77. --Automatic cargo handling at the bonded warehouse (TPB) is made compulsory at Batam Customs and a trial test is made at Purwakarta Customs for bonded warehouse process application system ("SAP"). - 24-hour Telephone Consultation Service (24-hour Call Center) has started at customs offices of major seaports and airports, including Tanjung Priok Port and Jakarta International Soekarno-Hatta Airport. (SIAP Report of November 2006). - The Red Line Customs Inspection dropped from 40% to 27% by September 2006. - Three days (five days in case of Priority Channel) are normally granted for block (refusal of filing application), and if adequate explanation is given in advance to customs, it is possible to extend for two more days. (S-1520/BC/2005). - Notice (S-1520/BC2/2005) of 12 July 2006 makes it publicly known widely that the submission of the identical documents can be dispensed with. - Notice (S-1520/BC2/2005) of 12 July 2006 and obligatory instructions (INS-02/BC/2005) of 13 July 2006 were issued, providing explanation for supplemental documents and documents used in the event of "block". Obligatory instructions stipulate strict observance of the Friday prayer time, etc. that relates to obligatory hours. - Customs declaration on Green Line with slight documentary errors (on hard copies only) can be accepted, provided, however, that, filing the corrected set of documents to Customs within three days of cargo delivery is a mandatory obligation. - Notice has been issued already to the effect that copy of Bills of Lading will suffice on Green Line. (S-1520/BC2/2005, S2213/BC2/2005) - According to the questionnaire survey involving 587 enterprises in the major cities by Social-Economic Research Institute of Universitas Indonesia during June through August 2006, the number of days required for import customs clearance is reduced from 6.1 days in 2005 to 3.1 days in 2007. - Since 17 December 2007, GOI started its test run on the National Single Windows at Tanjung Priok Port. |
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| (20) Duplicated Export/Import Customs Clearance Procedures | - MFS has completed setting in place electronic data interchange (EDI) system for customs clearance. Nevertheless, GOI requires filing of application by paper documents as before in parallel, including the double charge of the application fees. | ||
| (Action) - On 9 September 2015, President Joko Widodo announced the 1st economic policy package toward the economic recovery, including the repeal of duplications in rules and regulations as its first phase. After repeal of 89-rules and regulations out of 154, the administration will promulgate 17-Decrees, 11-presidential orders, 63 ministerial orders, etc. |
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| (21) Disunity of Numbers among Import Declaration, Application, and Acceptance | - On PIB (Import Declaration Form) 2-sets of numbers exist, namely, 20 (=6+8+6) digits used by importer/forwarder, and the customs approved unique number (6-Digits), complicating the clerical work in actual operation. Nomor pengajuan (application number) Nomor pendaftaran (acceptance number) |
- It is requested that GOI accepts application number as acceptance number as is, or else adopts the system that uses single number from application to acceptance. | |
| (22) Increased burdens due to Introduction of Pre-Shipment Inspection | - Indonesian Customs, after the manner similar to other countries, has adopted Red/Yellow/Green Lanes in its customs clearance process, depending upon the past import performance and reliability of importers. Goods in Red Lane are subject to full examinations including the physical inspection by opening the ocean containers, while those in the Green Lane require only documental examination. In addition, the majority of the goods must clear pre-shipment inspection at each shipment location as part of the vexatiously complex, time-consuming import process. It does not stand to reason, why the pre-shipment inspection is additionally compelled when the physical inspection by opening the ocean containers is effected on importers with low reliability or no shipment record. Moreover, compulsion of pre-shipment inspection to importers with good reputation or past import record that enjoy customs clearance at Green Lane does not stand to reason, either, because from time to time at an irregular interval, the physical inspection is made by opening the ocean containers. - Indonesia is the only country among ASEAN Member States that requires pre-shipment export inspection. - Trade Minister Decree No. 8 of 18 February 2009 compels Exporter Registration and Pre-Shipment Inspection (ERPSI) on the products covered by the Decree until end of December 2010. - On 11 June 2009, Trade Minister Decree No.21, amending regulation, came into effect, (excluding cars, electric/electronic products, heavy equipment, energy, importers entitled to the priority lane, etc.), requiring exporter's assumption of inspection fees for each shipment, and on-site inspection at steel manufacturers' mill port. - Trade Minister Decree No.54 promulgated on 28 December 2010, entered into force on 1 January 2011, which is based on Trade Minister Decree No.21 is a Measure with limited validity for 2-years up to 31 December 2012. Decree No.54 gave rise to an unstable period where yes or no of the inspection requirement was kept in the dark, since the new rules had not been disclosed up to the last minute of promulgation of Trade Minister Decree No.54. - On January 2012, change in HS Code System was implemented, provided, however, that. "Commerce Minister's Decree" compelling pre-shipment inspection was not adequately amended. As a result, goods, which were outside the scope of pre-shipment inspection (illustrative example, wire rods), can no longer be shipped without pre-shipment inspection. - On 1 March 2012, Trade Minister's Amended Decree No.8 was promulgated and enforced. The Amended Decree changed the target items under AHTN2013 (by increasing the target items from 166 to 212-items) and extended the enforcement period by 3-years to 31 December 2015. GOI continues the long-term import restrictive measures, introduced with a limited effective date, without giving them a sufficient re-verification. |
- It is requested that GOI repeals unnecessary pre-shipment inspection pursuant to the existing Indonesian Customs Regulation. - It is requested that GOI repeals pre-shipment export inspection. - It is requested that GOI: -- repeals the Decree No.8 that compels ERPSI until end of December 2010, and -- makes more stringent the prior publication requirement under the WTO rules. |
- Trade Minister Decree No. 8 and 21 - Trade Ministry Decree No. 54 and 8 - Decree of Minister of Trade Republic of Indonesia No. 48/M-DAG/ PER/12/2011, No. 34/ M-DAG/KEP/1/2012, Compulsory Pre- Shipment Inspection by the Designated Inspection Institutions on Used Machinery Machine Parts, and Special Vehicles. |
| (Action) - Beginning 1 February 2009, Ministry of Trade (MOT) has promulgated measures (the Measures) to control import of certain products for two-years during 15 December 2008 through 31 December 2010 against importers registered with MOT and certain ports. "Pre-shipment inspection" (PSI) mandates double inspection on the subject import cargoes, namely, PSI and the regular customs clearance procedure. A number of government representatives expressed their concern that the double inspection requirement is inconsistent with the WTO Agreement and defeats the purpose of Post Clearance Audit (PCA) mechanism that benefits import goods subject to the PCA. - In mid-December 2008, MOT postponed until 1 February 2009 implementation of import restrictions for clothing, footwear, electronic appliances, toys and nonessential grocery items. The purpose of this postponement, it is reported, is to avoid backlog of the subject import goods at the designated sea/air ports during the Christmas and the new year periods. Moreover, the customs inspectors are not made ready for implementing the import restrictions. It is incumbent upon MOT to further clarify the HS Code numbers of the goods subject to these restrictions. - On 20 February 2009, MOT made it a mandatory requirement for importers to obtain inspection certificate at the port of export on import of steel and steel products, provided, however, that, the inspection certificate requirement is exempted on the three-industries (cars and car parts, electronics and electronic parts, and shipbuilding). (Decree No. 8/M-DAG/PER/2/2009) - On 11 June 2009, MOT promulgated Regulation No. 21/M-DAG/PER/6/2009 (Regulation 21) that mandates PSI at port of export on imported steel. Regulation 21 amends and clarifies the inspection requirements laid down in Regulation No. 8/M-DAG/PER/2/2009 (Regulation 21) promulgated on 20 February 2009. Report of the Surveyor (designated as PSI inspection agency), which serves as PSI Certificate, must accompany the Customs Declaration submitted to the Indonesian Customs. Regulation 21 reduces the number of tariff items subject to PSI from 202 items to 169 items, while maintaining the exemptions from the PSI requirement under Regulation No. 8 and authorising additional exemptions, namely, the following: 1) Imported cars, electronics and shipbuilding industries from Free Trade Zones and Bonded Warehouse into the Indonesian Customs Territories, 2) Priority Lane designated importers, and 3) Industries that hold the Industrial Verification Status under the User Specific Duty Free Scheme (USDFS) of Japan-Indonesia EPA, or other customs measures designated by MOT pursuant to international agreements. - In February 2009, Ministry of Trade, Indonesia (MOT) expanded the List of the Designated Ports by adding Pelindo Port in Dumai for the restricted import items, which include clothing, footwear, electronic appliances, and non-essential luxury items. Government of Indonesia (GOI) released this import restriction in late October 2008, restricting the import of the subject goods into Indonesia only to the seaports or airports designated by MOT. To import goods listed in the restricted import items, importers must be registered with MOT as "Registered Importer of the Specified Items". These items are also subject to pre-shipment inspection. MOT compels Import Goods Inspector Report only on import of clothing. This import restriction was enforced on 1 February 2009. Many foreign governments expressed their concern about this import restriction, as revealed in the Joint Questionnaire (G/LIC/Q/IDN/11) to GOI submitted to the WTO Import Licence Committee in the names of EU and USA. (Thailand and Canada also submitted Quenstionnaire). - On 29 December 2010, Ministry of Trade promulgated Regulation No.57, setting forth import restrictions valid for the specified products for two-years from 1 January 2011 to 31 December 2012. This Regulation stipulates the requisite terms for import of "the Specified Products", (namely, foods and beverages, clothing, footwear, electronic products, children's toys, the traditional herb medication drugs, and cosmetics), including registration of importers, pre-shipment inspection, and designation of import port. - In March 2014, the Federation of Japanese Chambers of Commerce and Industry in ASEAN (FJCCIA) submitted its request to the ASEAN Secretariat, urging the need to review selection of the subject items of the products to ensure if such inspection is really necessary and to eliminate any chance of double inspection. (JETRO Overseas Business News of 3 September 2014) - On 30 December 2015, the period for pre-shipment inspection measures has been extended by one year to 31 December 2016 (amended minister of trade regulation No.113) |
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| (Improvement) - The Ministry of Trade (MOT) has issued Regulation No. 73/M-DAG/PER/10/2014 ("The 3rd Amendment") to amend the existing regulation on designated import ports for certain electronic products, etc. by exempting Priority Line Importers (Importir Jalur Prioritas) from Mandatory Verification by an appointed surveyor in regard to pre-shipment compatibility inspection and technical inspection (enforced from 1 December 2014). -- URL for MOT Amended Regulation No.73 (In Bahasa Indonesia) (http://jdih.kemendag.go.id/files/regulasi/2014/10/14/perubahan-ketiga-atas-permendag-no-83m-dagper122012-tentang-ketentuan-impor-produk-tertentu-id-1413807056.pdf) -- List of Applicable Products: HS64, HS73, HS84, HS85, HS95 (http://www.jmcti.org/trade/bull/trade/alert/arti/2014_10/Annex_211014.pdf) |
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| (23) Nebulous Period of Cargo Inspection for Customs Clearance | - MFS registered at customs as a "firm without problem" gets its cargo selected at random for customs inspection. In such event, customs would not disclose when the inspection is over, so that it disrupts MFS's production and distribution schedules. | - It is requested that GOI: -- obviates the need for Customs Inspection, for a firm found without problems. -- discloses the completion date of the required inspection. |
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| (24) Vexatiously Complex and Delayed Customs Clearance on Expatriates' Duty-Free Import | - GOI requires submissions of the Originals of KITAS (stay permit) and IMTA (work permit) for custom clearance, it takes more than 1-month after arrival of the expatriate in Indonesia to receive the personal effects. Duty free shipment by sea has become allowable only once per family, and the full duty becomes payable for failure to begin the customs clearance within 3-months of the first arrival in Indonesia. Without acquisition of KITAS and MITAS, duty free customs clearance is not possible. Otherwise, full duty payment is necessary for customs clearance. - The customs levy high duty amounts on personal effects such as foods of an expatriate shipped from Japan upon the expatriate's new appointment as a resident representative. The duty amount is unpredictable, as it is left to discretion of the individual customs personnel. Furthermore, it is unpredictable how long it takes for the customs clearance. Frequently, pilferage of goods occurs inside the package. |
- It is requested that GOI deregulates the requirements set forth in the left column. - It is requested that that GOI takes step to have customs personnel observes the prescribed duty amount without arbitrary judgement and expedites the customs clearance. |
- Customs Act 2006, Law No.17 |
| (25) Hike in Export Duty | - Abruptly, GOI has raised the export duty on wooden chips from USD2.00 to USD3.50 per GMT so that MFS stands in less competitive position than the competitors in Thai and Vietnam where no export duty is payable. | - It is requested that GOI either repeals or reduces the Export Duty. | |
| (Action) - Since 8 August 2015, export tax of flat 1.5% is levied upon IUP (licenced mining and mineral business operators). (finance minister order No.107). |
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| (26) Introduction of Export Restrictions on Unprocessed Minerals | - On 12 January 2009, new Mining Act was promulgated, due for enforcement in five years. Should GOI restricts Nickel Ores export, it would materially affect continuity of business for the domestic ferro nickel manufacturers using nickel ores. As a result, it would give the grave impact upon the domestic stainless steel manufacturers using ferro nickel in Japan. Since May 2012, GOI has begun export duty levy. By Decree of Ministry of Industry, export of nickel ores was actually suspended (for about a month) temporarily from May. Since June, subject to payment of export tax of 20%, export has been resumed on enterprises satisfying certain conditions. (Thus, the enterprises in concern could manage to get by without serious confusions by relying upon the residual stock.) On 12 January 2014, the export embargo measures on nickel ores came into effect, banning export of unprocessed nickel ores. Domestic manufacturers in Japan have taken temporary measures of piling up stock of raw materials. However, should export ban continues without any relaxing measures, it is a matter of concern that it would impact upon production of ferro nickels and stainless steel products using ferro nickels. - Minister of trade enforced new mining act No.4 of 2009, and since 12 January 2014, has compelled the domestic smelting/processing of minerals, implementing the total embargo of nickel ore export. Furthermore, huge export tariff levied on copper concentrates and iron ore, proportionate to purity, etc. gives heavy impact upon mining and mineral enterprises. |
- It is requested that GOI avoids application of restrictions. | - New Mineral Act (Mineral & Coal Mining Industries Act) - New Mining Law No.4, 2009 - Minister of Energy/Mineral Resources Decree No.1, 2014 |
| (Action) - On 12 January 2009, New Law on Mineral and Coal Mining was enacted, due for enforcement 5-years later (in January 2014). (Substantive details due for publication within 1-year remained unpublished as of 15 January 2010). GOI announced that in the beginning of 2014, export of unprocessed Minerals would be totally banned in order to turn the domestic smelting a mandatory requirement. - In May 2012, GOI banned export of certain mineral ores. However, GOI has since authorised export of ores to enterprises constructing smeltery by levying 20% export tax. - In September 2012, Ministry of Energy and Mineral Resources announced that it would take a relief measure from the total export ban on unprocessed mineral resources upon enterprises with a plan under way for constructing their smelters domestically in Indonesia. - On 8 October 2012, at the Fourth Japan-Indonesia Joint Economic Forum, METI Minister Edano expressed his concern about the GOI's export ban of nickel ore from Indonesia from the beginning of 2014. Nevertheless, the discussions ended without any progress. - New Mining Law passed The Consultative Assembly due for enforcement beginning January 2014 totally bans export of unprocessed minerals. - Law No.3 of 2014 on Industries came into force on 15 January 2014, which is the new industrial law to strengthen international competitiveness of the domestic industries. (Law No.3 of 2014 on Industries). Article 31 stipulates, "GOI will advance development of domestic processing industries to increase the added values of the natural resources". - In January, GOI introduced export restrictions on palm oil, tin, nickel, bauxite, etc., provided, however, that GOI approves export continuation on concentrate of copper, iron ore, lead, tin, etc. - In February 2014, GOI managed to let the new Trade Law pass the legislature that empowers the Administration to restrict export/import trade to protect the domestic market/industries. - On 12 January 2014, GOI enforced export embargo on raw ore. Regulation No. 1 relative to the terms for the domestic processing on the ores mining companies can export during the determined period (12 January 2014 through 31 December 2016). Regulation No.1 that provides the domestic processing requirement is accessible at the following URL (in Bahasa Indonesia): (http://prokum.esdm.go.id/permen/2014/Permen%20ESDM%2001%202014.pdf) - On 24 June 2014, Ministry of Industry promulgated Regulation No.59/2014 to expand the designated conformity assessment bodies on the Indonesian National Standard. Ministry of Industry Regulation No.59/2014 (http://regulasi.kemenperin.go.id/site/baca_peraturan/1788) - On 14 July 2014, Ministry of Finance promulgated Amended Regulation on Administration and Collection of Export Tariffs (Regulation No. 146/PMK.04/2014 ("Regulation No. 146") - GOI, under trade minister decree "04/M-DAG/PER/1/2015" of 5 January 2015, announced the compulsion of opening letters of credit (L/C) upon export of 4-items, "mineral ores, cals, petroleum/natural gas, and palm oil". The Decree aims mainly at grasping the export amounts and stabilizing the prices: -- The export price of the goods in concern shall be no less than the prices prevailing in the international market. (Article 2.2) -- Mandating export enterprises attachment of letters of credit to export declaration (PEB) (Article 4)--GOI authorised inspection institute will confirm the use of letters of credit, and will issue inspection report (Article 5)(BTMU "Global Business Insight" of 16 February 2015) - On 23 June 2015, President promulgated GOI Regulation No.41 year 2015 (enforced on 23 June 2015). This regulation permits government to control export and affect export embargo under certain circumstances such as ensuring stable supply to domestic industries, keeping appropriate price in domestic market and contributing to the added value activity, etc. It provides for export embargo/restrictions of natural resources. GOI's export control permits GOI's imposition of export tax, allocation of export quota, and supply responsibility to the domestic industries. [Reference:] Government Regulation No.41 Year 2015 (in Indonesian) at: http://sipuu.setkab.go.id/PUUdoc/174554/PP0412015.pdf |
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| (27) Application of Minimum Export Prices | - On 23 September 2010, GOI compelled Indonesian mining enterprise to' establish export prices with reference to the basic coal price determined by the international market prices obtained under the specified calculation formula. | - It is requested that GOI repeals its directive concerning establishment of export prices. | - Minister's Decree No.17 on Energy and Mineral Resources |
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