INDONESIA – certain measures addressing local
content
in investment in the telecommunications
sector
Replies to Questions from Japan[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 Japan's questions contained in document
G/TRIMS/W/154 dated
13 April 2015, Indonesia hereby wishes to
provide the following clarifications:
Question 1
Article II
of TRIMS Agreement draws the provision of Article III of GATT, and
paragraph 4 of Article III of GATT stipulates that the products of
the territory of any contracting party imported into the territory of any other
contracting party shall be accorded treatment no less favourable than that
accorded to like products of national origin. In our view, all of the
above-mentioned measures seem to be inconsistent with paragraph 4 of
Article III of GATT and Article II of TRIMS Agreement. Does Indonesia consider
these measures to be consistent with the agreements? If so, please explain the
reason.
Reply
Indonesia reiterates its
previous response in document G/TRIMS/W/75 that Decree No. 7/2009 is already in
line with all WTO provisions, especially GATT Article III.8(a). Indonesia would
also like to confirm that the Decree does not differentiate treatment between
local and foreign-service providers so it is consistent with Article 2 of TRIMs
Agreement.
Question 2
In
addition, according to the provisions of 1 (a) of the Annex of the TRIMS
Agreement, TRIMs that are inconsistent with the obligation of national
treatment provided for in paragraph 4 of Article III of GATT include the
measures which require the purchase or use by an enterprise of products of
domestic origin or from any domestic source. Therefore, in our view, those above-mentioned
measures are inconsistent with paragraph 4 of Article III of GATT and TRIMS
Agreement. Does Indonesia consider that those local requirements measures are
consistent with paragraph 4 of Article III of GATT and TRIMS Agreement? If so,
please explain the reason.
Reply
The regulation is intended to
develop telecommunication sector in remote and under-served/unserved areas, as
well as rural areas which require government assistance. Therefore, Indonesia
perceives that this program falls under government procurement activities which
is regulated under Article III.8(a) of GATT 1994. As such, the enactment of
this regulation does not violate the national treatment principle as stipulated
in Article III.4 of GATT 1994 and TRIMs Agreement.
Question 3
With
regard to Decree 41/PER/M.KOMINFO/10/2009, which stipulates the calculation
method of the TKDN, it does not clearly define suppliers and products to which
the TKDN is applied. In accordance with Article VI of the TRIMS Agreement which
stipulates transparency, could Indonesia explain what TKDN is imposed and to which
types of telecommunications operators?
Reply
Please refer to our response in
number 2.
Question 4
Are there
any revision or additional regulations to those measures? If any, please provide
English translations.
Reply
So far, there is no revision or
additional regulation to the measures in question.
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