QUESTIONS FROM THE UNITED STATES TO INDONESIA

The following communication, dated 4 June 2025, is being circulated at the request of the delegation of the United States.

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The United States seeks clarity from Indonesia on its reward of customs officials involved in the successful settling of a violation of customs laws, as outlined in Article 113D of Indonesia's Customs Law no. 17.

The United States has heard from U.S. companies that Article 113D constitutes an incentive for aggressive and excessive imposition of penalties on imports. To this end, the United States seeks clarity on several issues related to the Article:

1.     How does the Government of Indonesia ensure that rewarding customs officials for successful settling of violations does not incentivize arbitrary or excessive targeting of legitimate importers?

2.     What safeguards are in place to ensure high evidentiary standards are met before a customs official becomes eligible for a reward?

3.     What analysis has the Government of Indonesia undertaken to assess the impact of Article 113D on trader confidence, anti-corruption efforts and enforcement of penalties?

4.     How does Article 113D comply with Indonesia's obligations under Article 6.3.3 and 6.3.4 of the WTO Trade Facilitation Agreement? Article 6.3.4 states that each Member shall ensure that it maintains measures to avoid conflicts of interest in assessment or collection of penalties, and Article 6.3.3 states that any penalty imposed shall depend on the facts and circumstances of the case and shall be commensurate with the degree and severity of the breach.

5.     The United States encourages Indonesia to end incentives for the settlement of violations of customs laws. Does Indonesia have plans to end this practice?

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