INDONESIA – newly adopted industry law and trade law
Replies to Questions from canada[1]
The following communication,
dated 15 April 2015, is being circulated at the request of the Delegation of Indonesia.
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We
refer to the Canada's
questions contained in document G/TRIMS/W/138 dated 13 August 2014, Indonesia
hereby wishes to provide the following clarifications:
Questions
Article 22
of the Trade Law states that "the promotion of Domestic Product
consumption […] shall be carried out
through alignment by way of promotion, introduction or marketing and setting
out a requirement to use Domestic Product".
1.
How
will Indonesia
ensure that these Laws are consistent with the National Treatment obligations
of the TRIMS?
Reply
The Trade Law and
the Industry Law are formulated in the spirit of strengthening the national economy, taking into account the Indonesian commitments to the WTO rules. Furthermore,
GATT Art. XVIII clearly stipulates the rights of Members in the early
stages of development to pursue development interests to improve the low standads of living.
Obligation to use
domestic goods and services will be reserved only for goverment procurement. Indonesia is not party to the Government Procurement Agreement in the WTO.
Canada is also concerned of the potential far-reaching
scope of this provision.
2.
Does
Indonesia
plan to apply this across the Indonesian economy or to limit its application to
certain sectors or industries?
Reply
The provision applies
to all sectors across economy and for all regions in Indonesia.
Canada is also concerned about the scope of the Trade
Law as it pertains to import/export restrictions and the control of essential
and strategic goods. Canada
notes that Article 25 permits the Indonesian government to "control the
availability of essential Goods and/or strategic Goods throughout the territory
of the Unitary State
of the Republic
of Indonesia to be in
sufficient quantity, excellent quality and affordable price."
3.
Can
Indonesia
please elaborate on this and the policy rationale behind this?
Reply
The Government is
responsible to provide and ensure the availability of Basic Goods and Essential
Goods in sufficient quantity, affordable price and excellent quality for the
sake of public welfare, development, and national security.
4.
In
addition, could measures aimed at "controlling" these goods take the
form the import and export restrictions?
Reply
No, "Controling"
means that the Government takes the responsibility and therefore must ensure
the availability of Basic Goods and Essential Goods in sufficient quantities
and affordable price for the people. Various measures which may be taken by the
Government, as and when necessary, to attain this responsibility will take into
account the Indonesian commitment to the WTO rules.
Canada
notes that throughout the Trade Law, Indonesia makes reference to "essential
and strategic goods". Canada
also notes that the description of these goods is due to follow in the
Presidential Regulation.
5.
Is
Indonesia
in a position to provide members of this Committee with possible examples of
the goods that would fall under these two categories?
Reply
The elucidation of Article 25 of the Trade Law provides definition and
examples of the goods that fall under these categories. Basic Goods means goods
that are exceptionally needed to serve the livelihood of the public as well as
are supporting element of public welfare such as rice, sugar, cooking oil, eggs
and milk. Essential Goods means strategic goods which have important role in determining
the continuity of national development such as fertilizer, cement as well as
oil and gas.
Canada notes that the Trade Law stipulates that many
provisions are to be articulated further in a future Presidential Regulation.
6.
Could
Indonesia
please provide some insight into the timing of this implementation legislation?
Reply
According to Article
121 of the Trade Law, Implementing Regulations to this Law; either in the form
of Government Regulation, Presidential Regulation, or Ministerial Regulation;
shall be completed not exceeding 2 (two) years after the promulgation of the
Law. The Law was signed, promulgated and entered into force on 11 March 2014.
7.
To
what degree will the business community be consulted with regards to the
drafting of the implementing legislation?
Reply
All stakeholders
including business community will always be engaged in the process of drafting
the implementing regulations.
8.
What
consultation has occurred already with regards to the Trade Law itself?
Reply
Consultation with
stakeholders had been regularly conducted before the Trade Law was signed.
9.
Are
English versions of these Laws available publicly? (If not), does Indonesia have
any plans going forward to make an English copy of these laws publicly
available?
Reply
Official translation
of these Laws is not yet available and still in the drafting process.
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