Individual Action Plan Update for Indonesia for 2014



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Individual Action Plan Update for Indonesia for 2014


Highlights of recent policy developments which indicate how [economy] is progressing towards the Bogor Goals and key challenges it faces in its efforts to meet the Goals.










IAP Chapter (and Sub-Chapter and Section Heading, if any)

Improvements made since 2012 IAP

Further Improvements Planned

Tariffs

Minister of Finance Regulation no. 133/PMK.011/2013 FMD.
Indonesia has implemented a tariff system based on HS 2012 wich covers 10,025 tariff lines (previously it covered 8,755 tariff lines).
The implementation is based on Minister of Finance Regulation (PMK) no. 213/PMK.011/2011 and amended by Minister of Finance Regulation no. 133/PMK.011/2013 FMD.
The tariff commitments in several free trade agreements have been converted from HS 2010 to HS 2012. Those agreements are as follows:
1) ASEAN Trade in Goods Agreement (ATIGA) (PMK 208/PMK.011/2012)
2) ASEAN-China FTA (PMK 117 / PMK.011/2012)
3) ASEAN-Korea FTA (PMK 118/PMK.011/2012)
4) ASEAN-India FTA (PMK 221/PMK.011/2012)
5) Indonesia-Japan Economic Partnership Agreement (PMK 209/PMK.011/2012)
6) Indonesia-Pakistan Preferential Tariff Agreement (PMK26/PMK.011/2013)

7) ASEAN-Australia-New Zealand FTA (PMK208/PMK.011/2013)







Website for further information:

www.tarif.depkeu.go.id




Contact point for further details:

http://www.tarif.depkeu.go.id/ContactUs/?contact




Non-Tariff Measures

Minister of Trade Regulation no. 54/M-DAG/PER/8/2012 on Procurement, Circulation, Sales, Monitoring, and Control of Alcoholic Beverages.

Objective: to regulate the imports of alcoholic beverages. The regulation comes into force on October 1, 2012.



NA



Minister of Trade Regulation no. 08/M-DAG/PER/2/2012 on the Import of Iron or Steel

Objective: to improve the importing process of iron or steel so to support the implementation of ASEAN Harmonized Tariffs Nomenclature.

Iron or steel may only be imported by Producer Importer (IP) Iron or Steel; or Registered Importer (IT) Iron or Steel. The regulation comes into force on January 1, 2011 until December 31, 2015.






Minister of Trade Regulation no. 61/M-DAG/PER/9/2013 on the Import of Certain Products

Objective: to improve the importing process of certain products such as food and beverages products, traditional medicine dan herbal products, cosmetic products, garment, footwear, electronics and children’s toys.

Those certain products may only be imported by Registered Importer (IT).

The seaports for the importation of Certain Products are Belawan in Medan, Tanjung Priok in Jakarta, Tanjung Emas in Semarang, Tanjung Perak in Surabaya, Soekarno Hatta in Makassar, Dumai in Dumai, Jayapura in Jayapura; Tarakan in Tarakan, Krueng Geukuh in North Aceh and/or

The airports for the importation of Certain Products are Kualanamu in Deli Serdang, Soekarno Hatta in Tangerang, Achmad Yani in Semarang, Juanda In Surabaya, and Hasanuddin in Makassar.

While seaports of Dumai, Jayapura and Tarakan are only for food and beverage products, Krueng Geukuh serves only for food and beverage products, apparel, footwear and electronics.









Minister of Trade Regulation no. 84/M-DAG/PER/12/2012 on Importer Identity Number (API).

Objectives: to provide business certainty, create conducive business climate, and increase effective implementation of the provisions on the Importer’s Identity Number (API). The regulation comes into force on March 31, 2013.







Minister of Trade Regulation no. 23/M-DAG/PER/9/2011 on the Procurement, Distribution and Control of Hazardous Materials.

Objectives: to improve the effectiveness of supervision of hazardous materials, especially imported materials by stipulating designated ports of entry and conducting technical verification of imported hazardous materials at the port of loading.

The seaports for the importation of hazardous materials are Belawan in Medan, Tanjung Priok in Jakarta, Tanjung Emas in Semarang, Tanjung Perak in Surabaya, and Soekarno Hatta in Makassar; and/or all international airports. This regulation comes into force on November 1, 2011.






Minister of Trade Regulation no. 46/M-DAG/PER/8/2013 about The Provisions on the Import and Export of Animals and Animal Products.

Objectives: to increase the consumer protection, to ensure the sustainability of bio-diversity, business certainty, transparency and simplification of licensing procedure and to improve import administration. The regulation comes into force on September 2, 2013.





Website for further information:

www.kemendag.go.id



Contact point for further details:

Directorate General for International Trade Cooperation

http://ditjenkpi.depdag.go.id




Services

BUSINESS SERVICES: LEGAL
As in 2012 IAP





BUSINESS SERVICES: ACCOUNTING
To further elaborate and implement the Guidelines of the Public Accountant Law Number 5 Year 2011, two government regulations have been enacted, as follows:
Government Regulation Number 84 Year 2012 on Public Accountant Profession Committee (http://www.sjdih.depkeu.go.id/fullText/2011/84~PMK.02~2011Per.HTM )

Objective: to improve the effeftiveness and representativeness of the profession’s disciplinary systems. The committee’s main functions are:




  1. to act as a professional appellate body, to whom public accountants may address any appeal on the Finance Minister’s decision of the results of the examination and/or.

  2. to give advice to the Finance Minister on matters concerning public accountant professional regulation.


Government Regulation Number 1 Year 2013 on Tariff Rates and Type of Non Tax Revenue Applicable in The Ministry Of Finance (www.ppajp.depkeu.go.id/remository/downloads/uuap5-2011bt.pdf)

Objective: to list all chargeable fees to obtain necessary licenses and approvals for practicing public accountant.







  1. The Government of Indonesia is planning to issue another Government Regulation on Public Accountants’ code of conducts in order to further elaborate professional practice matters.

  2. An effort is also underway to consolidate and integrate the existing 55,000 registered accountants into Indonesia’s professional accountant landscape by granting an exclusive right to the registered accountants in opening non-assurance accounting firms as well as its supporting professional systems.




BUSINESS SERVICES: ARCHITECTURAL
As in 2012 IAP





BUSINESS SERVICES: ENGINEERING
As in 2012 IAP





BUSINESS SERVICES: OTHER PROFESSIONAL SERVICES
As in 2012 IAP





BUSINESS SERVICES: OTHER
As in 2012 IAP





COMMUNICATION SERVICES: POSTAL
As further elaboration and implementation guidelines of Law Number 38 Year 2009, Indonesia has issued the following regulations:

  1. Minister of Communication and Information Technology Regulation Number 01/PER/M.KOMINFO/01/2012 on Formula of Tariff of Comercial Postal Services

Objective: to create fair and competitive business among commercial postal operators.


  1. Minister of Communication and Information Technology Regulation Number 21 Year 2012 on Postage Stamp

Objective: to optimise the role of postage stamp in promoting Indonesia’s tourism and culture.


  1. Government Regulation Number 15 Year 2013 on the Implementation of Law No 38 Year 2009 on Postal Services

Objective: to govern, among others, licensing requirements and procedures as well as universal postal services.





COMMUNICATION SERVICES: EXPRESS DELIVERY
Indonesian Government recognizes express delivery services as part of postal services. Existing laws and regulations on postal services can be also applied to this services, as follows:


  1. Government Regulation Number 82 Year 2012 on the Operation of Electronic System and Transaction.

Objective: to ensure every component and integration throughout the Electronic Systems works properly. Electronic Systems Components include Hardware, Software, experts, governance, and security. This Government Regulation also regulates the obligation of Electronic Systems Operator in general and Electronic Systems Operator for public services. Electronic System Operator for public services is required to place the data center and disaster recovery center in Indonesia, to obtain airworthiness Certification of Electronic Systems from the Minister, and shall be registered to the Ministry that is related to the communication and information fields.


  1. Minister of Communication and Information Regulation Number 10 Year 2013 on Organisation and Work Procedure of Provider Center and Telecommunication and Information Financing Manager.

Objective: to provide and manage the Telecommunication and Information Financing that is related to the implementation of universal obligation based on laws and regulations.





COMMUNICATION SERVICES: TELECOMMUNICATIONS
As in 2012 IAP




COMMUNICATION SERVICES: AUDIO VISUAL
As in 2012 IAP

It is planned to revise the investment negative list regarding foreign capital participation on audio visual services.




CONSTRUCTION RELATED ENGINEERING SERVICES
As in 2012 IAP





DISTRIBUTION SERVICES


  1. Minister of Trade Regulation Number 53/M-DAG/PER/8/2012 concerning Franchise Operation

Objective: to govern the minimum distance between modern market and traditional market.


  1. Minister of Trade Regulation Number 68/MDAG/PER/10/2012 concerning Franchise for Modern Store

Objective: to govern the ownership limitation of modern store.


  1. Minister of Trade Regulation Number 07/M-DAG/PER/2/2013 concerning the Franchise Partnership Development for Food and Beverage

Objective: to govern the number of ownership limitation for restaurant outlet/bar/cafe of their own.


  1. Minister of Trade Regulation Number 60/M-DAG/PER/9/2013 on the Obligation on the Usage of Franchise Logo

Objective: to govern the obligation on the usage of logo as an identity of the Franchisor and Franchisee.



  1. Minister of Trade Regulation Number 70/M-DAG/PER/12/2013 on the Guidelines of Structure and Maintenance of Traditional Market, Shopping Center, and Modern Store

Objective: to govern the number and distance of Traditional Market, Shopping Center, and Modern Store Establishment.






EDUCATION SERVICES
Educational activities employing international system shall comply with existing regulations, as follows:

  1. Government Regulation No. 19/2005 and No. 32/2013 on National Standard of Education;

  2. Government Regulation No. 55/2007 on Religious Education;

  3. Government Regulation No. 47/2008 on Compulsory Education;

  4. Government Regulation No. 48/2008 on Educational Budgeting;

  5. Law Number 43 Year 2007 on Library to support the operational of legal entities of education;

  6. Law Number 14 Year 2005 on Teacher and Lecturer;

  7. Law Number 24 Year 2009 on Flag, Language, National Symbol, and National Anthem;

  8. Government Regulation Number 17 Year 2010 on Education Management and Implementation;

  9. Government Regulation Number 66 Year 2010 on Management and Provision of Education;

  10. Law Number 12 Year 2012 on Higher Education and;

  11. Law Number 20 Year 2013 on Medical Education.







ENVIRONMENT SERVICES
As in 2012 IAP





FINANCIAL SERVICES


  1. Law Number 21 Year 2011 on Financial Services Authority of Indonesia (Otoritas Jasa Keuangan or “OJK”)

Objective: to regulate and supervise the functions of the Indonesian capital market and non-banking financial institutions (NBFI) that was previously under the purview of the Capital Market and Financial Institution Supervisory Agency (BAPPEPAM-LK) which have been effectively transferred to the OJK by 31 December 2012.

With the inclusion of banking sector under the authority of the OJK as of 31 December 2013, OJK will work towards establishing an integrated supervision, regulation and consumer protection framework of the entire Indonesian financial sector.

All regulations regarding financial services (banking, capital market, insurance, pension fund, leasing, and other financial services) remain valid as long as they are not contradicted with the OJK Law.


FINANCIAL SERVICES: FINANCE COMPANIES
As in 2012 IAP




FINANCIAL SERVICES: BANKING


  1. Bank of Indonesia Regulation Number 14/25/PBI/2012

Objective: to enhance the quality of statistics on export-import data and to monitor foreign currency flow, Indonesia has issued this regulation that requires exporters to receive export proceeds through foreign exchange banks in Indonesia at the latest, 3 months after the Export Declaration Form (PEB) date.

With this regulation, the reporting requirements is further relaxed in terms of timing and amount. Reporting is only required for export proceed that reported in PEB more than USD 10,000 (before: every amount), at the latest on the 5th of the following month upon receipt (before: 3 working days upon receipt).






FINANCIAL SERVICES: INSURANCE
As in 2012 IAP





FINANCIAL SERVICES: CAPITAL MARKET
As in 2012 IAP





HEALTH RELATED SOCIAL SERVICES


  1. Minister of Health Regulation Number 67 Year 2013 on the Empowerment of Health Workers and Citizens

Obejctive: to syncronize and integrate all domestic regulations related to foreign health services professionals.





TOURISM TRAVEL RELATED SERVICES
As in 2012 IAP

It is planned to revise the investment negative list regarding foreign capital participation on tourism travel related services.




RECREATIONAL CULTURAL SPORTING SERVICES
As in 2012 IAP





TRANSPORT SERVICES: MARITIME


  1. Minister of Transportation Regulation No. PM 8 year 2012 on multimodal transport management and enterprise

Objective: to administer Multimoda Regulation and how enterprise/foreign services provider could administer and register its multimoda.


  1. Minister of Transportation Regulation No. PM 6 year 2013 on Harboring services tariff type, structure and category

Objective: to govern the type of tariff and structure as well as port services category.


  1. Minister of Transportation Regulation No. PM 7 year 2013 on the Obligation of Indonesian flagged vessels to register its classification at the Classifying Board/Agency

Objective: to govern the obligation clasifications for Indonesian vessel including its sanction, if there is any violation.





TRANSPORT SERVICES: AIR
As in 2012 IAP





TRANSPORT SERVICES: RAIL

As in 2012 IAP





TRANSPORT SERVICES: ROAD

  1. Government Regulation Number 79 Year 2013 on traffic network and road transport.

Objective: to govern the implementation of freight terminals that can be held by the government and third parties.

It is planned to revise the investment negative list regarding foreign capital participation on road transport services





TRANSPORT SERVICES: OTHERS
As in 2012 IAP




ENERGY SERVICES


  1. Minister of Energy Regulation No. 2013 Year 2013 on Provisions and Procedures for the use of foreign labor and workforce development in Oil and Gas business activities

Objective: to govern the areas that open to foreigners, submission procedures, and qualifications procedures.


  1. Ministry of Energy Regulation Number 35 Year 2013 on the Electricity Business Licensing Procedures

Objective: to govern, among others, business licensing procedures for power auxiliary service (consulting services, construction and installation, inspection and testing, maintenance, operation, research and development, training, and laboratory testing)


  1. Minister of Energy Regulation Number 32 Year 2013 on special permit granting procedures in the field of Mining, Minerals, and Coal

Objective: to govern the terms and procedures for filing a special business license including mining support services.





OTHER SERVICES
As in 2012 IAP





Website for further information:

Accounting Services

www.ppajp.depkeu.go.id

www.iapi.or.id
Communication Services

www.postel.go.id

www.kominfo.go.id
Financial Services (Banking)

www.bi.go.id
Financial Services (Insurance, Capital Market and Finance Companies)

www.ojk.go.id
Distribution Services

www.ditjenpdn.kemendag.go.id
Health Services

http://www.depkes.go.id

www.inamc.or.id
Communication Services (Audio Visual)

http://www.parekraf.go.id
Tourism Travel Related Services

http://www.parekraf.go.id
Recreational and Entertainment Services

http://www.parekraf.go.id
Transport Services (Road)

http://www.hubdat.web.id
Transport Services (Air)

http://hubud.dephub.go.id/
Transport Services (Rail)

http://www.dephub.go.id/


Transport Services (Others)

http://www.dephub.go.id/
Educational Services

http://www.kemdikbud.go.id

http://litbang .kemdikbud.go.id



http://dikti.kemdikbud.go.id/

http://www.bsnp-indonesia.org
Labor Issues:

http://www. depnakertrans.go.id





Contact point for further details:

Accounting Services

ppajp@depkeu.go.id

info@iapi.or.id

Communication Services

ikhba@postel.go.id
Health Services

pusat.ksln@gmail.com
Communication Services (Audio Visual)

nwadnyani@gmail.com
Tourism Travel Related Services

nwadnyani@gmail.com
Recreational and Entertainment Services

nwadnyani@gmail.com
Educational Services

sekretariat.kabalitbang@gmail.com

info@bsnp-indonesia.org





Investment


INVESTMENT APPLICATION

Chairman of the Investment Coordinating Board Regulation No. 5 of 2013 on Guideline and Procedure of Investment License and Non-License Services

    • This regulation revokes and replaces CIICB Regulation No. 12 of 2009 on Guideline and Procedure of Investment Application.

    • It further simplifies investment application procedure by eliminating “Registration” step, so investors only need to apply for Principal License and Business License.

    • Foreign direct investment must fulfill the following requirements (unless stipulated differently):

      • Total investment must be higher than IDR10,000,000,000,- (or its equivalent in USD), excluding land and property.

      • Issued/subscribed capital in equal amount as paid-up capital (at least IDR2,500,000,000,- or its equivalent in USD).

      • Each shareholder to have at least IDR10,000,000,- share subscription or its equivalent in USD. Ownership percentage will be calculated from the amount of owned share in IDR.

Chairman of Investment Coordinating Board Regulation No. 12 of 2013 on the Amendment of CICCB Regulation No. 5 of 2013 on Guideline and Procedure of Investment License and Non-License Services

    • This regulation amends previous obligation to retain divestment share to Indonesian as regulated in Article 108 point (5) in CIICB Regulation No. 5 of 2013. The divested share is transferable to foreign investors on a commercial basis, subject to the Negative Investment List.

A capital venture company (CVC, or PMV, Perusahaan Modal Ventura) is allowed to become a shareholder of any investing company in Indonesia. These subscription shares from CVCs, either domestic or foreign capital share, are treated as national share. It is limited to 10 years and could be extended to the next 5 years.

Provide brief points only



INVESTMENT FACILITATION

    1. One-Stop Shop Service in Investment

Chairman of Indonesia Investment Coordinating Board Regulation No. 7 of 2013 on One-Stop Shop Implementation

    • OSS is dedicated to provide easy, fast, precise, accurate, transparent and accountable Licensing and Non-licensing services. This regulation aims to organise the implementation of OSS.

    • Among the regulated aspects of OSS include OSS service coverage, OSS personnel and their duties, and The Online Tracking System for investment has been officially launched since October 24th, 2013. This service is accessible worldwide through BKPM portal http://www.bkpm.go.id It aims to provide transparency and certainty to investors about the status of their investment application.

Types of licenses that can be accessed through the online tracking system are: Principle License, Approval for Machinery, Goods and Material Import Facilities, and Business License.

In the near future, online tracking system will be developed to enable investors track their application status in Provincial or Regional One-Stop Service Agencies throughout Indonesia.



INVESTMENT INCENTIVES

  1. Tax Allowance

As in 2012 IAP.

  1. Tax Exemption/Reduction

As in 2012 IAP.

  1. Import Duties

Minister of Finance Regulation No. 76/PMK.011/2012

    • This regulation amends Minister of Finance Regulation No. 176/PMK.011/2009 concerning the Exemption of Import Duty on Imported Machines, as well as Goods and Materials for the Building or Development of Industries In the Framework of Investment.

    • By these two regulations, Indonesia has eliminated import duties on machinery, goods and materials used in vehicles assembling and components industries.

    • Exemption for import duties are given for two years.

    • For goods and materials, exemption may be granted for 4 years, with requirement of at least 30% of the total value of machines used must have been locally purchased as approved by Ministry of Industry. This exemption may be extended for another one year, especially for goods and materials included in commodity list under import regulation.

  1. Tax Facilities

As in 2012 IAP.

  1. Bonded Zones

Minister of Finance Regulation No. 120/PMK.04/2013

    • This regulation is the third amendment of Minister of Finance Regulation No. 147/PMK.04/2011 on Bonded Zones.

    • It is a part of new fiscal policy package aimed to curb the widening current account deficit and to promote economic growth by focusing on the domestic market.

    • Permission to raise domestic sales portion from the production in the bonded zones may be granted, subject to the approval of the Minister of Industry.

    • Companies within bonded zones are also allowed to subcontract its core activities to local companies.

Minister of Finance Regulation No. 44/PMK.04/2012

    • This regulation is the second amendment of the Minister of Finance Regulation No. 147/PMK.04/2011 on Bonded Zones.

Minister of Finance Regulation No. 255/PMK.04/2011,

    • This regulation is the first amendment of Minister of Finance Regulation No. 147/PMK.04/2011 on Bonded Zones.

  1. Special Economic Zone

As in 2012 IAP.

  1. Industrial Estate

As in 2012 IAP.





RELEVANT INVESTMENT LEGISLATION

None


PROMOTED AREAS / SECTORS FOR FOREIGN INVESTMENT

  1. Priority / Promoted Sectors Or Industries


Presidential Regulation No. 16 of 2012 on General Plan on Investment

This regulation underlines three priority sectors in investment, as follows:



  1. Food Commodities, consisting of (i) rice; (ii) corn; (iii) soybean; (iv) sugar; and (v) CPO.

  2. Energy, focusing on (i) optimizing the renewable source of energy as an attempt to reduce the use of fossil energy; (ii) balancing exports with domestic needs for energy in oil and gas sector; (iii) bridging electricity gap across the nation; and (iv) developing coal activities in certain coal producer locations.

  3. Infrastructure, a strategic domain of which the main priorities are (i) harbors; (ii) power plants; (iii) transportation; (iv) public roads; and (v) soft infrastructure in health and education sectors.

Although the priorities have been set, it is still subject to the Presidential Regulation No. 36 of 2010 on List of Lines of Business Closed and Open, with Conditions, to Investment (known as the Negative Investment List).





  • Presidential Regulation No. 36 of 2010 on List of Lines of Business Closed and Open, with Conditions, to Investment (known as the Negative Investment List) is currently under the process of amendment.

  • At least 5 sectors that used to be opened to only domestic investors are considered to be opened to foreign investors, such as those related to airport and seaport transportation services; vehicle roadworthy testing services; and eco-tourism management.

  • The openings of transport related sectors are aimed to attract private investors to participate in infrastructure projects that are carried through Public Private Partnership (PPP) scheme.

  • In addition, Indonesia would also povide flexibility to more than 10 lines of business, including pharmaceuticals, financial services, in particular venture capital, as well as telecommunication sector related to multimedia integration and cellular network.

Website for further information:

www.bkpm.go.id



Contact point for further details:

  • Director of Investment Deregulation, Indonesia Investment Coordinating Board

  • Director of Regional Cooperation, Indonesia Investment Coordinating Board

  • Head of Subdirectorate of Law at the Bureau of Legislation, Public Relations and Secretary to the Chairman, Indonesia Investment Coordinating Board



Standards and Conformance


Standards

As of October 2013, 9624 standards (9363 standards are voluntary and 261 SNIs are mandatory) has been approved as the National Standards of Indonesia (SNI).

The National Standardization Agency of Indonesia (BSN) has continued to the alignment of national standards to international standards. The objective is that all national standards comply with international standards.


As in 2012 IAP






On Drugs and Foods

As in 2012 IAP

As in 2012 IAP

Website for further information:

For Standards:

www.bsn.go.id



For foods and drugs:

www.pom.go.id





Contact point for further details:

Centre for Cooperation on Standardization – BSN
kerj_int@bsn.go.id



Customs Procedures


Paperless Trading

  1. Improvement of the implementation of the National Single Window (NSW): currently 18 government agencies are participating in the importation process, and all government agencies are participating in the exporting process.

  2. Making NSW mandatory for all importers, exporters, and customs brokers

  3. Implementing NSW at 5 main ports (Tanjung Priok, International Airport of Soekarno-Hatta, Tanjung Emas, Belawan, Tanjung Perak)

Implementation of the National Single Window with broader scope and more participation of government agencies.





Implementation of Harmonised System Convention
The Harmonized System 2012 has been utilized since January 1, 2012.

To maintain and update the HS Goods Classification through active participation and involvement in the HS Technical Committee Session of the WCO and any related regional level technical meeting (ASEAN).






Adoption of Kyoto Convention
Completed a review on the conformance of existing customs laws, rules and procedures with the principles of Revised Kyoto Convention.


Accession to the Revised Kyoto Convention through ratification.






Development of Authorized Economic Operator (AEO) programs and Mutual Recognition Arrangement (MRA)


  1. Issuance of Minister of Finance Regulation No. 219/PMK.04/2010 on AEO

  2. Completed a feasibility study on the implementation of AEO

  3. Conducting a Pilot Project for the implementation of AEO Program, by involving 9 exporters which have been granted priority channel for importation.

  4. Launched the AEO program on 17 December 2013






  1. Issuance of DG of Customs and Excise Regulation on the implementation of AEO Program

  2. Starting to develop an MRA in 2016






Adoption of Systematic Risk Management Techniques

    • Passenger Information System (PNRGOV)

  1. Raising the initiative of Passenger Name Record (PNR) Implementation in APEC SCCP I and APEC SCCP II 2013

  2. Conducting a survey within APEC to identify the needs and obstacles in the implementation of PNRGOV

  3. Holding APEC PNR Workshop to enhance capacity and to set up a commitment to implement PNRGOV between APEC member economies and airlines operating in Asia Pacific.

    • Revising regulation on bonded-warehouse

Starting consultation period for the implementation of PNRGOV in Indonesia in the first quarter of 2014

Implementation of risk management on bonded-warehouse






Implementation of TRIPs Agreement

Enacting Director General Regulation concerning the implementation of Supreme Court Regulation on IPR



Implementing Supreme Court Regulation on IPR




Integrity

  1. Establishing the Ministry of Finance Corporate Values, namely Integrity, Professionalism, Synergy, Services and Perfection

  2. Collaborating with Corruption Eradication Commission in controlling the integrity of all customs officers

  3. Launching embedded control program and internal control system

  4. Launching work performance management program

Consistently enforcing and disseminating the Ministry of Finance Corporate Values to further improve customs officials’ awareness and compliance




Provision for Temporary Importation

The Implementaion of ATA/CPD Carnet is subject to President’s approval









Public Availability of Information on Customs Laws, Regulations, Administrative Guidelines and Rulings provided to Business Sector on an ongoing basis

Establishing Call Center (a single point of contact)



Improvement of Indonesian Customs’ website in 2014




Other issues (this includes other customs activities which facilitate trade which are not part of the SCCP)

  1. Transforming all customs offices to modern customs offices, identified by customs clients / stakeholders’ satisfaction orientation, establishment of internal compliance system, and balanced level of customs control delivered by optimizing risk-management system

  2. Implementing Auto Gate System at Temporary Storage, KPPT (Integrated Customs Service Zone), Integrated Cargo Release System (i-Cares), and TPFT (Integrated Physical Examination Area) to expedite flow of goods in Tanjung Priok sea port




Website for further information:

www.beacukai.go.id




Contact point for further details:

International Affairs Directorate

(APEC Desk),

Directorate General of Customs and Excise,

Ministry of Finance.


ariadiwidia@gmail.com

kasubditregional.ina.customs@gmail.com




Intellectual Property Rights


Indonesia is a contracting party to the Marrakesh Treaty to Facilitate Access to Published Works for Persons Who Are Blind, Visually Impaired or Otherwise Print Disabled. The Treaty was signed on 24 September 2013.

Indonesia is now in the process of amending its IPR Laws namely Copyright Law, Patent Law, and Trademark Law. Many improvements, including revised and/or new provisions, are introduced in the bills.

Website for further information:

www.dgip.go.id

www.timnaspphki.dgip.go.id



Contact point for further details:

Director of Patent, Ministry of Law and Human Right

Secretariat of National Task Force on IPR, Director of Cooperation and Promotion





Competition Policy


Law Enforcement
The enactment of Government Regulation No. 17 Year 2013 on the Implementation of the Law No. 20 Year 2008 on Micro, Small, and Medium Enterprises (MSMEs).

Mergers and Acquisitions
Related to merger and acquisition (M&A), in 2013, there has been an amendment in KPPU Regulation No. 13/2010 on M&A Guidance through the KPPU Regulation No. 2/2013. The amendment introduce new limitation, where the M&A assessment only can be done when all necessary data needed in the assessment is deemed completed, including those related to market data and structure. Therefore, the preparation for notification by the merging parties to the competition authority will take longer than usual, if they are not prepared to such information.
Number of M&A’s notification is increased every year since the enactment of Government Regulation No. 57/2010 on mergers and acquisitions. The number was only declined in 2012 due to European crisis (which become important market by the enterprises aimed at M&A actions). In 2013, the notification is increased to 71 notifications. From that number, 25% of it is mergers by foreign enterprises.

Coordination between regulators/ministries
From inter-institutional perspective, there has been an increased in cooperation between competition authority and its stakeholders. Intensive cooperation (memorandum of understanding) has been established between competition authority and five public universities on the adaptation of the competition law curriculum. Cooperation in law enforcement also received positive signal by the presence of cooperation between competition authority with the Attorney General and Ministry of Justice and Human Rights. In the context regulatory reform, cooperation was made between competition authority and the Ministry of Home Affairs and the two local Governments, to support of regional policies that adapt the sound competition principles.
Cooperation with Other Economies and Regions
In 2013, Indonesia was the Chair of APEC. In the field of competition policy, Indonesia has contributed to the start of regional program as part of the initiative for APEC 's New Strategy for Structural Reform (ANSSR) to reduce differences and development of competition law and policy across APEC region.
At the regional level, Indonesia has consistently demonstrated its role in assisting the process of adaptation of competition law in various economy in ASEAN, particularly Malaysia and Laos. To support this, Indonesia and other ASEAN economies has managed to put together a guideline for core competencies in the field of competition law and policy to serve as reference by competition regulatory bodies in that region.
At the bilateral level, Indonesia has made a formal cooperation (memorandum of understanding) with Korea in the field of competition law enforcement. The cooperation is carried out by competition authorities in the two economies. Meanwhile, competition policy itself has become negotiated aspects in many international trade negotiations, particularly those of EFTA states, European Union, Australia, and Korea.

Currently Indonesia is in the process of amending its competition law. The draft is being discussed at the Parliament. It is expected that the amendment is concluded in 2014.



Website for further information:

http://www.kppu.go.id or http://eng.kppu.go.id



Contact point for further details:

Secretary General

Komisi Pengawas Persaingan Usaha

Phone. +62-21-3507015/16/49

Fax. +62-21-3507008

E-mail. international@kppu.go.id




Government Procurement


Under Presidential Regulation no.70/2012, from 2011, every ministry should announce its procurement on centralized government procurement website. Furthermore, government sector agencies are obliged to implement the Electronic Procurement (e-procurement) by 2012 up to 100%, and to set up permanent Procurement Service Units by 2014. The Regulation also provides more opportunity to SMEs to participate in government procurement, with SME being given priority for procurement valued below 2,5 billion IDR.

Developing and improving e-procurement system with e-tender and e-purchasing (e-direct purchase and order methods)







Website for further information:

www.lkpp.go.id



Contact point for further details:

 humas@lkpp.go.id or
Helpdesk : 021 - 7918 1153
Fax : 021 - 797 3548
Email : helpdesk-lpse@lkpp.go.id



Deregulation/Regulatory Review


Law no. 12/2011 on the Formulation of Laws and Regulations revokes Law no. 10/2004 on the same subject. It expand the obligation for the forward planning of new regulations beyond laws and sub-national regulations to include government and presidential regulations. In addition, this law requires ex ante assessment and public consultation for bills and draft of regulations.

As regulated in the previous Law (no. 10/2004), law no 12/2011 also stipulated principles in rule making process, such as:



  • Clarity of purpose (of regulatory instruments);

  • Appropriate authority (for regulatory decision making);

  • Appropriate (regulatory) instrument (for purpose);

  • Implementable;

  • Outcome-oriented;

  • Clear wording (of regulatory instruments); and

  • Openness (of regulatory decision making).




  • The implementing regulation of the Law No. 12/2011 is currently drafted and planned to be enacted on 2014.

  • The National Mid-term Development Plan 2015-2020 which is currently drafted, covers a comprehensive regulatory reform plan.




Website for further information:

www.bappenas.go.id

www.bphn.go.id

www.kemenkumham.go.id



Contact point for further details:

Mrs. Diani Sadiawati

Director for Analysis of Law and Regulations

Ministry of National Planning and Development

diani@bappenas.go.id
Mr. Subianta Mandala

Deputy Director

National Law Development Agency

subianta_mandala@yahoo.com





Implementation of WTO Obligations/ROOs


During 2012, Indonesia has submitted 60 notifications related to the implementation of the Multilateral Agreements on Trade in Goods. Notifications cover 11 areas under in Committee on Safeguard, 21 areas under Technical Barriers to Trade (TBT), 8 areas under Import Licensing, 14 areas under SPS, 1 area under Agriculture, 1 Area under TRIPs, and 4 under Commitee Anti Dumping Practices.
During 2013, Indonesia has submitted 38 notifications related to the implementation of the Multilateral Agreements on Trade in Goods. The notifications cover 7 areas in Committeee on Safeguard, 14 areas under TBT, 6 areas under Import Licensing, 7 areas under SPS and 4 areas under agriculture.


Provide brief points only

Website for further information:

www.kemendag.go.id



Contact point for further details:

http://ditjenkpi.kemendag.go.id

Directorate for Multilateral Cooperation

Phone: (6221) 3840139

Fax: (6221) 3847273





Dispute Mediation


As in 2012 IAP

Provide brief points only
Website for further information:

http://www.bani-arb.org


Contact point for further details:

The Indonesian Arbitration Center (BANI)


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