Indonesia – Newly adopted industry law and trade law
REplies to questions from the European Union[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 European Union’s questions
contained in document G/TRIMS/W/140 dated 16 September 2014, Indonesia hereby wishes to provide the following
clarifications:
Questions
·
Could
Indonesia clarify the following aspects:
i.
The
possibility for the Government to impose export bans on biological and
non-biological raw materials (Industry law) and impose restrictions on export
and import of certain goods for national interest (Trade law);
Reply
The Trade Law and the Industry Law is
formulated in the spirit of strengthening the national economy and taking into
account the Indonesian commitment in the WTO.
According to Article 32 and 33 of the
Industry Law, the Government may take necessary measures to secure the
availability of the natural resource for the domestic needs to support the
development of domestic industries and to reduce excessive dependence on the
export of raw materials through value addition. These measures could be taken
with some considerations, e.g:
· to preserve natural resources
· apply to natural resources which are strategic, non-renewable and
limited
· for the realization of
independent and competitive industrial structure and also maintain the
price stability.
As for in the Trade Law Article 54, the
Government may restrict exports and imports based on provisions on GATT Article
XX, among others:
· necessity to protect national security or public interest; and/or
· necessity to protect the health and safety of people, animal, fish,
plant, and the environment.
These laws have mandated numerous
Implementing Regulations that will further elaborate the relevant
provisions stipulated in the laws. Formulation of the Implementing Regulations
will also be guided and deeply take into consideration the Security,
Safety, Health and Environment (K3L-Keamanan,
Keselamatan, Kesehatan dan Lingkungan) purposes for consumers, producers,
market stability as well as international commitments, including WTO. The
Government believes that this will be regulated and implemented in a manner
that is not inconsistent with WTO rules.
ii.
the
mandatory use of domestic products and increased use of national standards;
Reply
The mandatory use of domestic products provided for in the Trade Law and
the Industry Law will be reserved only to government procurement.
The use of national standards through Indonesia National Standard (SNI)
is implemented in voluntary basis. For certain products, however, the standard
shall be mandatory. This requirement applies to both domestic and imported
products. The use of national standard is aimed for consumer protection
purposes.
iii. the use of safeguard measures, either tariff or
non-tariff- measures to protect the industry from international competition.
Reply
Safeguard measures are justified and commonly applied by WTO members in
the case of import surges which cause, or threaten to cause, serious injury to
the domestic industry. In Indonesia, implementation of safeguard measures is regulated in the
Government Regulation no. 34/2011 concerning antidumping
measure, compulsory measure, and trade safeguard measure. Article 70 (1) of the Regulation stipulates, any imported goods, may be imposed
safeguard measure if:
a.
there have been a surge of imports absolutely or relatively on goods
similar to the like products or directly competitive products; and
b.
the surge causes of serious losses or threat of serious losses to the
domestic industry.
·
Could
Indonesia give an indication on the number of implementing regulations that
have to be issued over the next two years?
Reply
There are numerous implementing Regulations mandated by the Trade Law
which includes 9 (nine) Government Regulations, 14 (fourteen)
Presidential Regulations, and 20 (twenty) Ministerial Regulations.
·
Could
Indonesia specify the timeline for publication of the implementing rules and
whether they will be open to public consultation?
Reply
Implementing Regulations of the Trade Law and the Industry Law shall be completed not exceeding 2 (two) years after the entry
into force of respective laws. Stakeholders will be closely engaged in the
process of drafting the implementing regulations.
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