ࡱ>  t<rq bjbjt+t+  AA`|yj]VVVBxxx8:* & ~1L4KMMMMMM$> 2 qxr6&&r6r6qROtt* ROROROr6& tpx* Kttttr6KROVROT).JxK* lA Htrade policies and practices by measure Introduction Since its previous Trade Policy Review in 1998, Indonesia has undertaken systematic efforts to increase the pace of its economic development by removing government-based constraints to trade, investment, and production. The tariff has increasingly become Indonesia's main trade policy instrument, albeit a minor source of tax revenue (less than 5% of the total). The average applied MFN tariff is currently 7.2%(2002), down from 9.5% in 1998. Whereas the average applied MFN tariff for industrial products is 7%, that for agricultural imports is 8.4%. More than 83% of tariff rates are currently in the range zero to 10%. In line with long-standing sectoral support, the highest tariffs apply mainly to alcoholic drinks/preparations and completely built-up motor vehicles (with cylinder capacity exceeding 2,500cc). Some 93% of tariff lines are bound, which imparts a high degree of predictability to the tariff. However, at 37.6% the simple average of final (i.e. 2005) bound MFN rates considerably exceeds the average applied MFN rate, providing the authorities with a great deal of scope to increase applied tariffs within bindings. Over 99% of applied tariff rates are advalorem, a feature that contributes to the transparency of the tariff. Nonetheless, the structure of the tariff has remained complex, involving 18 ad valorem rates (the same as in 1998), and three specific rates (one, since 2000, affecting rice, and two, since mid 2002, for sugar). The tariff also embodies a degree of escalation, which has become more pronounced for semi-processed food, beverages and tobacco products as well as for paper, printing, and publishing. In the light of apparently more liberal measures, ϲʹ tariff quota commitments for milk and cream and its products as well as for rice, have seemingly not been applied; in the case of the former, the applied tariff is well below the in-quota rate while for rice the applied rate is specific (for which a properly calculated AVE is not available) rather than the ad valorem in-quota rate. In 2002, applied tariff rates on 41 nine-digit HS items (mainly alcoholic beverages) exceeded their final bound rates (to be applied by 2004) by up to 20 percentage points. As a result of these considerations, the tariff continues to be a potential obstacle to a more efficient allocation of domestic resources. Computerized documentation requirements and customs clearance have facilitated both imports and exports; registration of importers has remained a major requirement. Indonesia has implemented the ϲʹ Customs Valuation Agreement as from January 2000. The overall scope of import restrictions and licensing requirements seems to have become more focused and strengthened through special import licences (as from 2002); bans for sanitary reasons have affected imports of chicken parts and fresh milk. No origin-related restrictions have been maintained, except those affecting trade with Israel. Indonesia, has become quite an active user of anti-dumping measures mainly against imports of base metals and chemicals from the region; safeguards legislation was passed in 2002. Mandatory standards have been expanded to cover more fertilizers and raw sugar; new food labelling requirements were passed in 1999. Involvement in mutual recognition arrangements has increased. Indonesia is not a signatory of the ϲʹ Agreement on Government Procurement (GPA); it revised its government procurement regime to, inter alia, increase domestic sourcing and improve ethics. Foreign suppliers have remained subject to specific requirements, and price preferences for local producers of goods have doubled. Countertrade transactions resulting from export performance requirements for foreign firms tendering for certain types of government procurement contracts and construction projects have fallen off considerably. Indonesia has eliminated its extensive tariff and tax incentives for local content in the automotive sector. Exports of products subject to restrictive measures have been allowed only through registered and approved exporters. As from 2001, an export ban for round wood and wood chips has applied. Exports of certain items have continued to be "supervised" (subject to approval) or "regulated" (subject to quotas) to, inter alia, promote higher-value-added downstream activities, upgrade the quality of export products, and ensure adequate domestic supply of essential products. Export taxes (on palm oil, crude palm oil and their derivative products, rattan, wood, minerals, sand) have been simplified and reduced; only ad valorem rates, which are calculated on the basis of minimum/benchmark export price or export check price (HPE), remain in force. Efforts have been made to provide export finance, based on commercial considerations, to firms that have no bad debt. Support for production and trade has been provided through financial assistance for R&D and regional tax incentives. Indirect taxes have been levied in a non-discriminatory manner; it is unclear whether regional levies, and taxes are also non-discriminatory. Trade distorting market support (largely exceeding Green Box outlays) has been maintained for rice, and a subsidy for (domestically made) fertilizers for small-scale rice producers was re-introduced. A petroleum fuels subsidy has favoured the industrial and public sector, and market prices for fuel have applied only to a few activities, including foreign flag vessels. State involvement in the economy (including exclusive import rights to domestic producers of certain sensitive items (such as rice, cloves, alcoholic beverages, sugar, hot- and cold-rolled coil iron, and steel products)) has continued with a view to assisting domestic production and/or promoting or exclusively controlling/restraining trade in virtually all important sectors. Price controls have been maintained for essential goods, services, and public utilities. Indonesia has sought to strengthen protection of intellectual property rights by expanding its international commitments. Pursuant to ϲʹ commitments, it has undertaken considerable work with a view to passing TRIPS-related legislation, but institutional constraints have continued to impede effective implementation. Indonesia's competition policy framework has been put into effect; most cases dealt with so far relate to collusion on tenders. Action has also been taken on consumer protection; responsibility is now shared between the Government and non-governmental organizations. Difficulties have been encountered in meeting environmental policy objectives. Measures Directly Affecting Imports Registration and documentation requirements As from 2003, importers are subject to registration requirements with two public entities (Ministry of Finance/Customs, Ministry of Industry and Trade) to avoid fraudulent practices; as of 1999, all importers (trading companies or producers) must have an Importers Identity Number (API). Basic documentation requirements seem to have remained virtually unchanged since 1998; they include: import declaration; pro-forma invoice; commercial invoice; certificate of origin; bill of lading legalized by the carrier; insurance certificate; special certificate for certain products; and packing list. Since 1997, the Customs Directorate of the Ministry of Finance has operated a post-entry audit and partly paperless system. Import documentation is submitted at a first stage in a standard form through computer diskette, followed by a hard copy. At the four main ports (Tanjung Priok I, II, III and Soekarno-Hatta I-II), customs clearance, the payment of duties, and random verification can (since 1997) be made through an Electronic Data Interchange (EDI) system; at the time of the previous Review, more than half of the banks were EDI-connected. Merchandise imports are processed by Customs through the green channel (90% of all goods in 1998, 80% in 2001) or the red channel. Goods directed to the red channel undergo physical examination and a check of the declared value. Customs inspection may also take place after importation at the importer's warehouse. Since May 2002, rice importation has been carried out solely by importers registered with the Ministry of Industry and Trade with special import licences (section(2)(v)) and have been subject to comprehensive red channel inspections at discharging ports; "technical smuggling" (i.e. under invoicing and falsification of import documentation) of rice has reportedly increased. Responsibility for customs administration was fully transferred from preshipment inspection firms (SGS and PT Surveyor Indonesia) back to the Directorate General of Customs and Excise in 1997. Tariffs General features Since its previous Review in 1998, Indonesia has adjusted its tariff in accordance with the implementation of its ϲʹ commitments, the unilateral reduction programme (1995-03), and its domestic policy imperatives. The level and structure of tariffs appear to have undergone fundamental change (Table III.1). The tariff has remained a relatively minor source of tax revenue, accounting for 4.7%(2003 estimates) of total tax revenues (section (4)(i), Table III.5); nonetheless, it is an important instrument of trade policy. The tariff is a relatively complex instrument, containing 7,532 tariff lines, 4.5% more than in 1998 and 21 rates (18ad valorem, 3specific). A large number of the tariff lines (68%) are subject to zero or 5% ad valorem duties. Bound tariff rates tend to be substantially lower than applied rates and the gap has widened since 1998 as a result of scheduled tariff cuts, thus providing increased scope for the authorities to raise applied MFN tariff rates. During 2002, the authorities considered raising applied rates on strategic commodities such as rice, wheat, soyabeans, and fruit, as well as electronics, but it is unclear whether they did so. Table III.1 Structure of MFN tariffs in Indonesia, 1998, 2002 and 2005 (Per cent) 19982002U.R.a1.Bound tariff lines (% of all tariff lines)b93.2..93.22.Duty-free tariff lines (% of all tariff lines)20.221.939.13Non-ad valorem tariffs (% of all tariff lines)0.00.20.04Tariff quotas (% of all tariff lines)0.00.00.05Non-ad valorem tariffs with no AVEs (% of all tariff lines)0.00.20.06Simple average bound rate....37.6Agricultural products (HS01-24)....47.3Industrial products (HS25-97)....35.9ϲʹ agricultural products....47.7ϲʹ non-agricultural products....35.9Textiles and clothing....29.37"Nuisance" bound rates (% of all tariff lines)c....0.08Simple average applied rate9.57.2..Agricultural products (HS01-24)8.68.3..Industrial products (HS25-97)9.77.0..ϲʹ agricultural products8.88.3..ϲʹ non-agricultural products9.67.0..Textiles and clothing14.610.5..9.Domestic tariff "spikes" (% of all tariff lines)d1.81.5..10.International tariff "spikes" (% of all tariff lines)e14.53.4..11.Overall standard deviation (SD) of tariff rates15.711.1..12."Nuisance" applied rates (% of all tariff lines)c0.00.0.... Not available. a Final bound calculations are based on the 1998 tariff schedule. Including ITA. b Representing fully bound rates. Partially bound rates represent 2.4% of all tariff lines. c "Nuisance" rates are those greater than zero, but less than or equal to 2%. d Domestic tariff spikes are defined as those exceeding three times the overall simple applied rate (indicator 8). e International tariff spikes are defined as those exceeding 15%. Note: 1998 tariff is based on 9-digit HS96 nomenclature, 2002 tariff is based on 9-digit HS02 nomenclature. For 2002, 12 lines carrying specific rates are excluded from the calculations. Source: ϲʹ Secretariat calculations, based on data provided by the Indonesian authorities. The Ministry of Industry and Trade, Ministry of Agriculture, Ministry of Finance, Ministry of Energy and Mining, Ministry of Forestry, Ministry of Defence and Security, Ministry of Transportation, State Minister of Environment, BULOG, Board of Central Statistic (BPS), and the Drug and Food Control Board have maintained regulatory powers over tariff policy matters in the context of a body called "Tim (Team) Tariff" (which has met every Wednesday since the early 1990s); the Directorate of Customs of the Ministry of Finance is an enforcement agency. The customs tariff is announced in January (or June) of each year through a Decree of the Ministry of Finance and published in the Official Gazette; it is also available online (http://www.dprin.go.id/regulasi1/english). Tariff changes may take place throughout the year, entering into force through Ministerial Decree. Indonesia has submitted its import data and customs tariff annually to the ϲʹ Integrated Database; it has also supplied tariff information regularly to the APEC tariff database. MFN tariff bindings Indonesia's commitments on ϲʹ tariff bindings are being implemented, except for the largest part of non-agriculture items (bindings fully in force since 1995). Different implementation periods affect ϲʹ-agriculture items (from 1995 to 2004), non-ϲʹ agriculture products under HS sections 15.04 and 16.03 (from 1995 to 1999) and Information Technology Agreement(ITA) products (from 1997 to 2005). By 2005 Indonesia's simple average bound tariff rate is to drop to 37.6%. At present, 93.2% (or 95.6% including partially bound items) of all tariff lines are bound as a consequence of the Uruguay Round Agreement and the 1997Information Technology Agreement(ITA). Bindings cover all agricultural tariff lines(ϲʹϠagriculture definition), and 94.9% of manufactured products (91% of total imports of industrial products). Bound rates range from 9% to 210% for agriculture, and from zero to 150% for manufactured products. Import surcharges on all (bound and unbound) items were eliminated ahead of schedule (within a period of ten years) in January 1996. Between July1996 and February1999, Indonesia's binding commitments were waived from the obligations under Article II of GATT 1994 to allow for the implementation of the recommended amendments on 1January1996 to the Harmonized System nomenclature and, subsequently, to undertake ArticleXXVIII negotiations. The new Schedule of Concessions incorporating these rectifications and amendments became effective on 18February1999. Duty-free items At present, 21.9% of Indonesia's tariff lines are duty free, up from 20.2% in 1998(Chart III.1, Table III.1).  Specific duties Specific duties replaced ad valorem duties for rice and sugar seemingly to avoid under-invoicing practices; the authorities seem to favor specific duties because they are based on volume rather than a declared value, which may be false. Since January 2000, rice and rice flour imports have been subject to a specific duty of Rp430 per kg. (claimed by the authorities to be equivalent to an advalorem rate of approximately 30%, at an exchange rate of Rp10,000 per U.S. dollar). By November2002, specific duties (in force since July 2002) affecting raw sugar and white sugar had reportedly been increased to Rp 550 (from Rp 450) per kg. and Rp 700 (from Rp 534) per kg., respectively, although the authorities have not confirmed this increase to the ϲʹ Secretariat. No information on these changes has been notified to the ϲʹ. Tariff quotas Under ϲʹϠmarket-access commitments, Indonesia has had tariff quota commitments since 1995, which have not been applied so far because of a seemingly more liberal regime in place (i.e. applied rates lower than in-quota rates and quota-free imports). These commitments concern milk and cream and its products (in-quota bound rate 40%, applied MFN rate 5%), and rice (in-quota bound rate 90%, applied MFN rate Rp 430/kg. (section (d) above). Applied MFN tariffs Since its previous Review, Indonesia has introduced changes to its tariff in accordance with the scheduled implementation of its binding commitments (section(b) above), its domestic policy considerations, and the reform packages. Between 1998 and 2002 the overall simple average applied MFN tariff rate fell from 9.5% to 7.2% (Table III.1). In line with the APEC goal of free and open trade, tariff reductions are to continue with the objective of implementing a three-tier customs tariff (zero, 5%, and 10%). Many of Indonesia's bound rates are considerably higher than the applied duties, thus imparting a degree of uncertainty to its tariff. The current gap of 30.4 percentage points between the average bound and applied MFN tariff rates provides considerable scope for the authorities to raise applied rates within bindings. The widening of this gap since 1998 is mainly the result of unilateral reductions in applied rates; applied rates have been increased in very few instances. The difference between average applied and bound rates in 2002 was much higher for agricultural products than for industrial products(ChartIII.2). The authorities indicated their willingness for negotiating further cuts to the bound rates. In 2002, applied tariff rates on 41 nine-digit HS items exceeded their (final) bound levels by up to 20 percentage points (mainly alcoholic drinks), but this may be corrected through the implementation of binding commitments in 2004; as indicated earlier, the authorities do not intend to implement their binding commitments progressively. The average rate of customs duty collected on total imports dropped to about 0.8% in 1999/00, then rose again to about 2% (1999/00) (Chart III.3). This rate has remained much lower than the average applied MFN rate, thus indicating the widespread use of preferences and exemptions. MFN tariff dispersion The potential efficiency losses associated with the customs tariff depend not just on the average applied MFN tariff rates, but also on the dispersion of those rates across products. Tariff dispersion indicators show that the dispersion in applied MFN tariff rates has fallen since 1998 with tariff "spikes" and the standard deviation in tariff rates all declining (Table III.1 and ChartIII.1). This decline in dispersion is due, inter alia, to reduction of the maximum ad valorem rate(from 200% to 170%) as well as a higher concentration in lower rates (e.g. zero, 5%, 10%). In 2002, imports of 23nine-digit HS96 items carried the highest advalorem tariff of 170% and threeitems were subject to the second highest rate of 90%, both of which affect alcoholic drinks/preparations; completely built-up sedan/station wagon motor vehicles with a cylinder capacity exceeding 2,500cc (three nine-digit HS96 items) are subject to the third highest rate of 80%.  MFN tariff escalation Changes in the customs tariff have affected the pattern of tariff escalation differently in each activity. Since 1998, it has remained relatively unchanged for textiles and leather, chemicals, and fabricated metal products and machinery (Chart III.4 and TableAIII.1). More pronounced escalation is apparent for semi-processed products in the food, beverages, and tobacco industry as well as for paper, printing and publishing (due to a reduction of tariffs on final products). Duty concessions/ exemptions During the period under review, Indonesia's scheme for the concessional entry of imports has remained unchanged. Products eligible for duty exemption or relief include: machinery for the establishment and development of industry (e.g. telecommunication equipment and networks, as from 2002); goods and materials for the establishment and development of industry for a specified period of time; equipment and substances used to prevent environmental pollution; seeds and breeding animals for the establishment and development of agricultural industry, animal husbandry, or fishery; marine products caught by licensed hauling vessels; goods exported to undergo repair, processing, or testing; goods re-imported in the same state; goods that are naturally damaged, whose quality has deteriorated, that are destroyed or have decreased in volume or weight between the time of transportation on the Customs Territory and the time of import approval for home use; human therapeutic substances, blood grouping and tissue typing reagents; goods imported by the Government for public purposes; and goods for temporary admission.   Tariff preferences and rules of origin Preferences Indonesia continues to grant preferential tariff treatment for products covered under the ASEAN CEPT, and the Global System of Trade Preferences among Developing countries (GSTP) (Chapter II(6)(ii)); these permit reductions of up to half of the MFN rate. Rules of origin Since 1998, no changes seem to have been made to Indonesia's rules of origin. Indonesia notified the ϲʹ that it has no judicial decisions or administrative rulings of general application relating to non-preferential rules of origin. Indonesia intends to ensure full compliance with the internationally harmonized rules of origin laid down by the World Customs Organization (WCO). Specific rules of origin apply to ASEAN members in order for them to benefit from preferential tariff under the Agreement on the CEPT. According to CEPT rules, a product is generally deemed to be of ASEAN origin if a minimum of 40% of its content originates in any member country, the 40% local content applying to both single-country content and cumulative-ASEAN content. For textiles and textile products, the local-content requirement can be expressed either as a percentage (the 40% level) or based on the principle of substantial transformation. Indonesia participates actively in the ASEAN Customs Policy Implementation and Work Programme (PIWP) (Plan of action for implementing ASEAN Customs Vision in 2020); Indonesia coordinates work in the two key areas: Customs Post Clearance Audit, and Customs Valuation. Customs valuation Since January 2000, Indonesia has fully implemented the ϲʹ Customs Valuation Agreement. In September 2001, the authorities notified the ϲʹ of the Government Regulation on Customs Valuation for the Calculation of Import Duties. Indonesia did not request a reservation to maintain a system of minimum values for a limited time under paragraph 2 of Annex III of the ϲʹ Agreement on Customs Valuation. Indonesia has invoked a transition period of three additional years to apply the computed value method under Article 20.2, and paragraphs 3 and 4 of Annex III (no expiry date). To ensure smooth implementation of the Agreement, Indonesia has, inter alia, held training for customs and excise officials on customs valuation, expanded computerization and sought technical assistance from other developing Members of ϲʹ. The authorities indicated that the implementation of the Agreement resulted in an increase in tax revenue and transparency in the calculation of the customs value. Nevertheless, difficulties were encountered in completing a database as well as problems with post clearance audit due to hidden payments between seller and buyer. Other levies and charges In addition to fees for cargo handling, imported and domestic goods are subject to internal indirect taxes, which apply to imported and domestically produced goods alike (section (4)(i)(a)). Import prohibitions, restrictions, and licensing During the period under review, no automatic import licensing appears to have been imposed. Non-automatic licensing requirements have seemingly been in place to enforce import prohibitions, restrictions, and controls that may be operated for reasons of human health, hygiene and sanitation, animal and plant life, environmental conservation, and essential security, in compliance with domestic legislative/policy requirements as well as international commitments. Trade with Israel has remained restricted. Imports of chicken parts (as from September 2000) and luxury cars (from February to 1June 2000) have been banned; the latter prohibition was revoked for fiscal purposes (i.e. to collect more tax revenue from import duties on cars). Imports of video tapes, laser discs, and other entertainment products for both exhibition and private use seem to have been controlled through a censor board. In the Uruguay Round, Indonesia undertook to remove all non-tariff barriers on 179 bound items (98manufactured products, 81 agricultural products (except for those subject to state trading)). But as noted in its previous Trade Policy Review, despite efforts to reduce the scope of import licensing as a trade distorting device, its economic significance has remained strong. The product coverage of import restrictions/prohibitions remains unclear. The authorities indicated to the Secretariat that by December 2002, the importation of 179 nine-digit HS items was restricted and 41 nine-digit HS items were prohibited. However, according to other sources, the product coverage of restrictive licensing requirements has been gradually reduced since the previous Review, to 141 tariff lines in 2002 from 160 in 1998. Import restrictions and special licensing requirements seem to have been imposed or maintained, inter alia, on meat and poultry products (Importer Letter of Recommendation required, as from September 2000), cloves (as from July2002), alcoholic beverages, artificial sweeteners, lube oil, hand tools, engines, pumps, and tractors. Since March 2002, special import licences have affected sensitive items such as rice (reimposed as from May 2002), corn, soya beans, sugar, textiles, textile products, footwear, electronics, and toys; the authorities indicated that these licences, which are granted on a domesticneeds assessment basis, are in place to fight smuggling and to balance supply and demand in a transparent manner. Transparency has been improved slightly through the availability of some information on import prohibitions on the Internet (http://www.beacukai.go.id). Nevertheless, notification of Indonesia's laws, regulations, and administrative procedures, as well as replies to the Questionnaire onImport Licensing Procedures (annual) has been submitted to the ϲʹ only once, in October1998; no further information on import licensing has been made available to the ϲʹ since then. State trading While efforts have been made to privatize state-trading entities (largely in connection with IMF requirements in this area (Chapter I)), widespread state involvement in the economy has continued with a view to assisting domestic production and/or promoting or exclusively controlling/restraining trade in virtually all important sectors (Table III.2). In 1998, state participation seemed particularly pronounced in activities such as agri-industry and consumer goods, logistics, financial services, and construction/building materials (Chart III.5). Exclusive import rights have been maintained for certain firms or certain categories of goods (alcoholic beverages, sugar) or expanded (cloves (as from July 2002), textile cloth (as from 2002), hot- and cold-rolled coil iron and steel products, as from 8November2002 and through 2003) depending on the product. Table III.2 State involvement in the economy, 2000 EntitiesActivityDegree of government ownership/ situation in privatization programmeGoodsAgriculture and forestryBadan Urusan Logistik (BULOG)aRice100%PT Perkebunan Nusantara IVaPlantation100%; 10-35% to be privatizedPT Perkebunan Nusantara IIIaPlantation100%; 10-35% to be privatizedManufacturingPT Indo FarmaaPharmaceutical100%; 10-49% to be privatizedPT Pupuk KaltimaFertilizer100%; 10-49% to be privatizedPT Kimia FarmaaPharmaceutical100%; 10-35% to be privatizedPUSRI (holding)bFertilizer holding100%; 100% to be privatizedTable III.2 (cont'd)Mining and energy PT Tambang Batu Bara Bukit AsamaCoal mining100%; 10-35% to be privatizedPT Aneka TambangaMining65%; 14% to be privatizedPT Tambang TimahbMining65%; up to 65% to be privatizedPT Perusahaan Umum Listrick Negara (PLN)Electricity..PT Perusahaan Pertambangan Minyak dan Gas Bumi Negara (PERTAMINA)Petroleum and natural gas mining..Perusahaan Gas Negara (PGN)Gas distribution..WaterPDAM DKI Jakarta (pam jaya)Water supply (Jakarta)..PDAM Kodya Dati Il BandungWater supply (Bandung)..PDAM Tirtanadi MedanWater supply (Medan)..ServicesTelecommunications and media PT TelkombTelecom65%; up to 14% to be privatizedPT IndosatbTelecom65%; up to 14% to be privatizedBankingPT Bank Mandiri (Persero)Bank..PT Bank Negara Indonesia (Persero)Commercial bank..PT Bank Rakyat Indonesia (Persero)Commercial and foreign exchange bank..PT Bank Tabungan Negara (Persero)Commercial bank..TransportationPT Angkasa Pura IIaAirport100%; 49% to be privatizedPT Garuda IndonesiaCivil aviation..PT Pelayaran Nasional Indonesia (PELNI)Shipping company..PT Perusahaan Pertambangan Minyak dan Gas Bumi Negara (PERTAMINA)Tanker services..Tourism PT Wisma NusantarabHotel/office42%; up to 42% to be privatizedPT Perhotelan dan PerkantoranbHotel/office100%; 100% to be privatizedJIHDbHotel management3.3%; up to 3.3% to be privatizedOtherPT SucofindoaSurveying 95%; 15-20% to be privatizedAgency for Strategic Industries (BPIS)bCoordinates for production of capital goods100%; 100% to be privatizedPT Kerta NiagaaTrading100; 100% to be privatizedPT SarinahbRetail100; up to 75% to be privatizedBadan Koordinasi Pernanaman Modal (BKPM) (Investment Co-ordinating Board)Development organization..Commercial Advisory Foundation in Indonesia (CAFI)Development organization.... Not available. a Fast-track SOE in 2000. b "Standby" fast-track SOE in 2000. Source: East Asia Analytical Unit, Department of Foreign Affairs and Trade, Australia (2000), Indonesia: Facing the Challenge [Online]. Available at: http://www.dfat.gov.au/publications/indonesia/index.html [21 October 2002]; Embassy of the United States in Jakarta, Indonesia, Recent Economic Report: GOI Revamps State-Owned Enterprise Masterplan (3 July 2000) [Online]. Available at: http://www.usembassyjakarta.org/econ/ imigoi070600.html [4 October 2002]; the Europa World Yearbook (2001), 42 Edition, Europa Publications 2001, London; and ϲʹ document G/STR/N/7/IDN, 23 August 2002.  Indonesia met its latest ϲʹϠnotification requirements on state trading in August2002 (full notification); in accordance with past practice, its notification covered only the rice trading operations of the National Logistics Agency (Badan Urusan Logistik's, BULOG) (TableIII.2). The authorities indicated that BULOG is the only SOE in Indonesia; as from May 2003, BULOG is to be turned into a (financially accountable and transparent) semi-profit organization (Perum BULOG), but its rice-related responsibilities are to remain unchanged. Government procurement Government procurement is used as a significant instrument of industrial policy. Indonesia is not a signatory to the ϲʹ Agreement on Government Procurement (GPA), but is an active participant in the Working Group on Transparency in Government Procurement; it passed new legislation in 2000. The new regime substantially revised but did not cancel existing government procurement regulations dating back to 1994. Its explicit policy objective is to "increase the use of domestic production, design and engineering with the aim of expanding domestic employment and national industries". Other key changes include new ethics guidelines for procurement officials (although the decree lacks detailed enforcement rules), set-asides for small and medium-sized enterprises (SMEs), and special rules for consulting services. Between 1998 and 2000, the Indonesian government procurement market for goods, services, and public works is estimated to have increased from 5.7% to 7% of GDP annually. No further data on public expenditure (central/local government agencies, SOEs) for the purchase of goods and services and public works were available from the authorities. Practices discriminating against foreign suppliers have been maintained since the previous Review of Indonesia; their participation in procurement contracts is subject to certain conditions. Foreign suppliers are authorized to participate in large contracts only (i.e. those exceeding at least twofold the minimum amounts/value set for local suppliers, Table III.3). Table III.3 Government procurement thresholds (Rupiah) Type of contractorContracting-out servicesGoods/servicesConsulting servicesSmall-scale or cooperatives<1 billion<500 million<200 millionMedium1 billion-10 billion500 million-4 billion200 million-1 billionLarge>10 billion>4 billion>1 billionForeign suppliers>25 billiona>10 billiona>2 billionaa Contracts over this limit require the winning contractor, foreign or domestic, to "cooperate with a small or medium-scale company or cooperative in the implementation of the contract". Source: Indotradezone.com, Indonesia's New Government Procurement Regulations, [Online]. Available at: http://www.indotradezone.com/Informasi/frame_Procurement.html [20 March 2002]. Procurement of foreign goods is authorized only when goods are not produced domestically, or when the technical specifications of domestic products fail to meet required standards. Explicit requirements and instructions are set (but not mandatory for contracts funded by foreign aid) for the use of domestically sourced material, services or labour (including experts); cooperation with a local SME or cooperative in the implementation of the contract is required. Price preferences are set at 15% for domestic goods (50% higher than the previous rate) and 7.5% for services. Foreign firms bidding on certain government-sponsored construction or procurement projects may be asked to purchase and export the equivalent in selected Indonesian products. Four procurement methods apply: tenders; direct selection; direct appointment; and selfmanagement. Special provisions and procedures (general selection, direct selection, direct appointment) apply to the procurement of consulting services. SOEs with shares listed on the stock exchange remain exempt from government procurement requirements. At the time of the previous Review, all government agencies and state-owned enterprises were responsible for their own procurement in the case of contracts not exceeding Rp 10 billion. Above this amount (involving about 250 contracts per year), contracts were submitted for final approval to the Central Procurement Team (TEP), an inter-ministerial body. Prices were ultimately controlled by the Finance and Development Supervisory Agency (BPKP), an independent public auditor reporting to the House of Representatives. Complaints have been reported about irregularities in the administration of tenders relating to the purchase of banknote paper by Bank Indonesia and of telecommunications equipment by the state-owned telecommunications companies PT Telkom and Indosat. Countertrade Indonesia's countertrade regime appears to have remained unchanged. Countertrade policy is aimed at linking imports relating to procurement by ministries, public-sector institutions and SOEswith exports of non-oil commodities other than those banned, restricted, and controlled, or on the negative list of countertrade. Public procurement operations excluded from countertrade activities are: those financed through a soft loan from the World Bank, IBRD, IDB, or ADB; those involving technology transfer and services of consultant, surveyor, or lawyer; and imports for joint venture with a foreign company. At the time of the previous Review, most countertrade activities were generated under two government schemes involving: export performance requirements for foreign firms tendering for certain types of government procurement contracts and construction projects (financed by domestic funds, value between Rp 500 million and Rp 10 billion); and foreign investment companies located in bonded areas or export-processing zones entitled to use countertrade arrangements (with their parent companies) for the duty/tax-free importation of equipment for production (including raw materials, intermediate capital goods and machinery, factory equipment, and components), against the exportation of their final product. Products eligible for countertrade have been reviewed every year by the Ministry of Industry and Trade. Since the previous Review, the level of countertrade transactions has fallen off considerably, as the Government almost ceased all major tender activities; in 2000, total countertrade dropped to US$3.2million before rising to US$17 million in 2001. Countertrade operations are expected to pick up as the Government's awarding of tenders increases. Local-content requirements Apart from local-content requirements in connection with government procurement contracts (section (vii) above), no other requirements of this type seem to be in force. Indonesia eliminated all local-content requirements notified under the ϲʹ Agreement on Trade-Related Investment Measures (TRIMs) ahead of schedule (end of the five-year transition period set on 1January 2000); these consisted of requirements on fresh milk and cream (1998), utility boiler equipment (1998), and soybean cake (1996). Furthermore, in accordance with IMF and ϲʹ obligations, in connection with its substantial lowering of tariff rates in all market segments by mid-1999, Indonesia eliminated the extensive tariff and tax incentives for local content for the automotive sector (Chapter IV(4)). Contingency measures Anti-dumping and countervailing measures Indonesia is a relatively recent but quite active user of these practices. Until late 1995, when the first anti-dumping legislation was passed, tariffs and surcharges were used to protect industries against foreign imports when national or private interests were considered to be affected. The institutional framework was established in 1996, and anti-dumping and countervailing laws were notified to the ϲʹ Committees on Anti-Dumping Practices and on Subsidies and Countervailing Measures; the legislation was reviewed by these Committees in 1997. In 2001, the regulatory framework was amended for procedures and requirements for an investigation of importation of a product alleged to be dumped or subsidized; the authorities indicated that the new regulation would be notified to the ϲʹ. Indonesia has regularly submitted semi-annual reports on actions in this area to the relevant ϲʹϠCommittees. Since 1998, Indonesia's recourse to anti-dumping action has shown a generally downward trend (ChartIII.6, Table AIII.2); with 43cases initiated between 1996 and 2002, Indonesia was the world's 11th largest user of such measure. Of the 27anti-dumping investigations initiated between 1998 and June2002, 15 were subject to provisional measures, nine resulted in definitive measures (involving anti-dumping duties) out of which seven remained in force in February 2003. Actions affected mainly base metals (steel) and chemicals originating mostly in countries from the region. No countervailing measures have been taken during the period under review. Safeguards As a result of pressure from local manufacturers, in December 2002 Indonesia introduced the first regulatory framework for a safeguards mechanism; in February 2003, the authorities indicated their intention to notify this legislation to the ϲʹ. Under the new regulation, safeguards may take the form of higher import duties applied initially for a period of six months, but may stay in place for four years, depending on the findings of the investigation. In February 2003, its implementation was pending as the institutional framework was not set; the authorities considered the possibility of enlarging the responsibility of the Indonesian Anti-dumping Committee to cover safeguards investigation.  Standards and other technical requirements Standards General framework Since Indonesia's previous Review, the institutional framework regarding standards has remained largely unchanged; in 2000, the authority of the National Standardization Agency of Indonesia (Badan Standardisasi Nasional, BSN), the non-department governmental institution responsible for the development of standardization, was enhanced. Standardization activities undertaken in various institutions are coordinated within the National Standardization System (Sistem Standardisasi Nasional, SSN) established by BSN. The SSN is a basis and guide for every standardization activity in Indonesia. Under this system, the role and responsibility of each ministry or technical institution in metrology, standards, testing, and quality assurance are being improved. Furthermore, producers, consumers, associations, and scientists have seemingly participated more actively in the development and activities of standardization. The SSN ensures that Indonesia National Standards (SNI) is the only Indonesian national standard, which is agreed by all parties through consensus at the central and regional levels in Indonesia. Indonesia has updated its legislative framework in this area, most recently in 2000. Standards have continued to be set on a non-discriminatory basis. As indicated in the previous Review, they are generally based on international standards, including those set by the Codex Alimentarius Commission, the International Organization for Standardization (ISO), and the International Electrotechnical Commission. Mandatory standards By February 2003, there were 187 mandatory SNIs, consisting of the 74 under the Ministry of Industry and Trade, and 113 under the Ministries of Agriculture and of Marine Affairs. Since its previous Review, Indonesia has increased the number of mandatory SNIs under the responsibility of the Ministry of Industry and Trade from 56 (1998) to at least 74 (2002, Table III.4). These now cover, interalia, raw sugar, wheat flour for foodstuff, battery cells, cement, tyres, plastics, fertilizers (virtually all SNIs passed in 2002), and steel items; they relate to community safety, security, health, environment conservation and/or economic considerations. Table III.4 Mandatory SNIs in industry and trade, 2002 No.TitleNo. SNIMinistry decreeDate1Portland Cement15-2049-1994256/M/SK/II/197922/11/792Dry Cell Battery04-2051-1990256/M/SK/II/197922/11/793Urea Fertilizer02-2801-1998/Rev. 1992256/M/SK/II/197922/11/794Concrete Reinforcement Steel Bars07-2052-1997/Rev. 1990256/M/SK/II/197922/11/795Galvanized Steel Sheet07-2053-1990256/M/SK/II/197922/11/796Fluorescent Ballast for 50 Hz Alternating Current04-3561-1994256/M/SK/II/197922/11/797Hot Rerolled Equilateral Rectangels Steels with Round Edge07-2054-1990256/M/SK/II/197922/11/798Electric Bulb04-3560-1994256/M/SK/II/197922/11/799Zinc Coated Steel Pipes07-0039-1987288/N/SK/7/198010/07/8010Low Carbon Steel Wire07-0040-1987288/N/SK/7/198010/07/8011Welding Electrode Seated by Low Carbon Steel07-0049-1987288/N/SK/7/198010/07/8012Round Edge Profile Channel Hot Rolled Steel07-0052-1987288/N/SK/7/198010/07/8013Low Carbon Steel Wire Rood07-0053-1987288/N/SK/7/198010/07/8014Rerolled Concrete Reinforcment Steel Bars07-0065-1987288/N/SK/7/198010/07/8015Zinc Coated Steel Sheet with Colored Paint Layer07-0066-1987288/N/SK/7/198010/07/8016Carbon Steel Pipe for Machine Structure07-0067-1987288/N/SK/7/198010/07/8017Carbon Steel Pipe for General Structure07-0068-1987288/N/SK/7/198010/07/8018Union Pipe (Conduit)07-0069-1987288/N/SK/7/198010/07/8019Hot Rerolled Equilateral Rectangles Steel with Round Edge07-0070-1987288/N/SK/7/198010/07/8020Spiral Welded Steel Pipe07-0071-1987288/N/SK/7/198010/7/8021XLPE Material for Electrical Cable Insulators Rated Voltage 1 kV up to 30 kV 04-2697-1992407/M/SK/10/198003/10/8022PVC Insulated Wire Rated Voltage 450/750 Volt (NYA)04-2698-1999/ Rev. 1992407/M/SK/10/198003/10/8023PVC Insulated and Seated Cables, Rated Voltage 300/500 Volt (NYM)04-2699-1999/ Rev. 1992407/M/SK/10/198003/10/8024PVC Insulated and Seated Cable with 0,6/1 kV Nominal Voltage (NYY, NAYY)04-2701-1999/ Rev. 1992407/M/SK/10/198003/10/8025PVC Insulated and Seated Underground Cable, Steel or Aluminum Wire Shelded with 0,6/1 kV Nominal Voltage (NYFGbY/NAYYFGbY/NYRGbY/ NAYRGbY/NYFGaY/NAYGaY/NYRGaY/NAYRGaY)04-2700-1999/ Rev. 1992407/M/SK/10/198003/10/8026Performance Test of Alternating Engine Power for General Use05-0119-1987312/M/SK/9/198412/09/8427Performance Test of Benzene Combustion Engine for Motor Vehicles09-0120-1995/Rev. 1987312/M/SK/9/198412/09/8428Term of Alternating Engine05-3562-1994312/M/SK/9/198412/09/8429Water Debit Measurement09-0140-1987312/M/SK/9/198412/09/8430Performance Test of Centrifugal Pump05-0141-1987312/M/SK/9/198412/09/8431Test Methods for Prime Mover of trial Run for Shipping.09-0142-1987312/M/SK/9/198412/09/8432Plain Cement Asbestos Sheet03-1027-1989317/M/SK/8/198611/08/8633Symetrycal Corrugated Asbestos Cement Sheet03-2050-1990317/M/SK/8/198611/08/8634Lead Acid Batteries for Vehicles09-0038-1999/ Rev. 1987400/M/SK/12/198709/12/8735PVC Insulated and Sheated Flexible Cable with 500 V Nominal Voltage (NYMHY)04-3234-199274/M/SK/2/198817/2/8836PVC Insulated and Sheated Flexible Cable with 500 V Nominal Voltage (NYMHY Oval)04-3235-199274/M/SK/2/198817/2/8837PVC Insulated and Sheated Flexible Wire with 1000 V Nominal Voltage (NYAF)04-3226-199274/M/SK/2/198817/2/8838PVC Insulated and Sheated Flexible Double wire and Triple Wire with work up to 380 V (NYZ/NYD)04-3237-199274/M/SK/2/198817/2/88Table III.4 (cont'd)39PVC Insulated and Sheated, Twin up to Quintuplets Cables 380 V Nominal Voltage (NYAF)04-3238-199274/M/SK/2/198817/2/8840Pressure Vessel 1-A05-3563-19946/M/SK/I/198920/01/8941Brake Fluid for Motor Vehicle06-2768-1992334/M/SK/12/198922/12/8942Motor Vehicles Information09-0604-198983/M/SK/8/199014/08/9043Motor Vehicles Identification Number (VIN)09-1411-198984/M/SK/8/199014/08/9044Drinking Water05-3553-1994120/M/SK/10/199024/10/9045Pozolan Portland Cement15-0302-1999/29/M/SK/2/199516/02/9546Lime Pozolan Cement15-0301-198929/M/SK/2/199516/02/9547Mixed Portland Cement15-3500-199329/M/SK/2/199516/02/9548Tyres for Passenger Cars06-0098-1998/ Rev. 198729/M/SK/2/199516/02/9549Tyres for Truck and Buses06-0099-1996/ Rev. 198729/M/SK/2/199516/02/9550Tyres for Light Truck06-0100-1996/ Rev. 198729/M/SK/2/199516/02/9551Tyres for Motorcycles Edible Salt06-0101-1998/ Rev. 198729/M/SK/2/199516/02/9552Salt01-3556-2000/ Rev. 199429/M/SK/2/199516/02/9553Tin Coating weight on Cans for Foods and Beverages09-2652-1998/ Rev. 199229/M/SK/2/199516/02/9554Artificial Feeds for Shrimp01-2724-1992--55Wheat Flour for food stuffa01-3751-2000 323/MPP/Kep/11/2001 -56Self-ballast lamps for general lighting services04-6504-2001 337/MPP/Kep/11/2001 -57Ammonium Sulphate Fertilizerb02-1760-1990 140/MPP/Kep/3/200203/05/0258Triple Superphosphate Fertilizerb02-0086-1992 140/MPP/Kep/3/200203/05/0259Triple Superphosphate Plus-Zn Fertilizerb02-2800-1992 140/MPP/Kep/3/200203/05/0260Nitrogen Phosphore Potassium Fertilizerb02-2803-1992 140/MPP/Kep/3/200203/05/0261Ammonium Chloride Fertilizerb02-2581-1992 140/MPP/Kep/3/200203/05/0262Dolomite Fertilizerb02-2804-1992 140/MPP/Kep/3/200203/05/0263Potassium Chloride Fertilizerb02-2805-1992 140/MPP/Kep/3/200203/05/0264Mono Amonium Phosphate Fertilizerb02-2810-1992 140/MPP/Kep/3/200203/05/0265Urea Amonium Phosphate Fertilizerb02-2811-1992 140/MPP/Kep/3/200203/05/0266Diamonium Phosphate Fertilizerb02-2858-1992 140/MPP/Kep/3/200203/05/0267Super Phosphate Fertilizerb02-3769-1995 140/MPP/Kep/3/200203/05/0268Natural Phosphate Fertilizerb02-3776-1995 140/MPP/Kep/3/200203/05/0269SP-36 Plus Zn Fertilizerb02-4873-1998140/MPP/Kep/3/200203/05/0270Borat (Borac Acids) Fertilizerb02-4959-1999140/MPP/Kep/3/200203/05/0271Sipramin (Supplement Fertilizer in liquid) Fertilizerb02-4958-1999 140/MPP/Kep/3/200203/05/02a Not identical to international norms; it is intended to improve people's nutrition through fortification of wheat flour using micro nutrient. b Not identical to international standard because the so-called "hara" element needed by Indonesian soil is different from other countries' soil. Note : The authorities indicated that these SNIs are compulsory for domestic products only; those from No. 1 to 54 were not notified to the ϲʹ. Source: National Standardization Agency of Indonesia [Online]. Available at: http://www.bsn.or.id/fpdb/INDAG_ WJB_en.asp; and Indonesian authorities. Voluntary standards Most (97%) of the 6,311 SNIs remain voluntary. As from 2000, draft SNIs are formulated by a Technical Committee on the basis of consensus among the technical institutions of each ministry involved. SNIs are based on international/regional standards or foreign national standards through adoption or adaptation of relevant standards. In February 2003 the BSN was in the process of evaluating the alignment of SNI with international standards. Testing and certification Since 2000, standards implementation and conformity assessment have been carried out through accreditation and certification. Certification is performed by certification bodies, inspection bodies, training providers, and accredited laboratories. Since September 2002, the National Accreditation Body of Indonesia (KAN) has assisted the BSN in providing accreditation to laboratories, certification bodies, and inspection bodies. Accredited certification bodies and testing/calibration laboratories issue certificates in accordance with their accreditation terms and coverage. International cooperation International cooperation on standardization has been conducted through Indonesia's participation in the work of bodies such as the Codex Alimentarius Commission (CAC), the International Organization for Standardization (ISO), the International Electrotechnical Commission (IEC), the ASEAN Consultative Committee on Standards and Quality (ACCSQ), the International Laboratory Accreditation Conference (ILAC), the Asia Pacific Economic Cooperation (APEC) and the ϲʹ Committee on Technical Barriers to Trade. As a result, since the previous Review, Indonesia's involvement in mutual recognition arrangements (MRAs) has expanded with KAN's signature of the Pacific Accreditation Cooperation MRA (August 2000), the International Accreditation Forum MRA (November 2001), the Asia Pacific Laboratory Accreditation Cooperation MRA (May 2001) and the International Laboratory Accreditation Cooperation (June 2001). Indonesia has maintained its 1996 mutual recognition arrangement with the Philippines for product certification and approval schemes of tyres and tyre products, plywood, accumulators, matches, and incandescent lamps. Indonesia is also involved in the preparation of MRAs for acceptance of testing reports and certificates for some products, such as electrotechnics, cosmetics, pharmaceuticals, and foodstuff, in the context of ASEAN. Transparency Since 2001 virtually all standards-related information has been made available online and at BSN's Standard Information Centre. BSN is an ISONET (ISO Information Network) reference point and the ϲʹ enquiry point responsible for notification matters in the framework of the ϲʹ Agreement on Technical Barriers to Trade (TBT). Between 2000 and 2002 (April), Indonesia made seven notifications under the TBT Agreement of technical regulations (including on food labelling and advertising) prior to their implementation; the timeliness of submission allowed for 30-60 day comment period. Sanitary and phytosanitary regulations Compliance with health and safety requirements (including registration with the Ministry of Health) as well as with SNIs is required for all food items. In addition to other conditions, as from May 2000 certificates accompanying imported fruit must state that the fruit is free from fruit fly, and for potatoes that they are free from wart disease (Synchrytrium endobioticum). Between May 1996 and May 2001, import restrictions have applied on fresh fruit from New Zealand. Certain food items require a halal certificate and approval prior to importation; in September 2000, the importation of chicken parts was banned, apparently to protect local industry and to ensure that imports were halal. Certificates assuring that food is dioxin-free have been required; in 1999 a temporary ban on imports of Belgian and Dutch farm, poultry, and food products was imposed because of concerns over dioxin contamination. Since 2001, Indonesia has banned imports of fresh milk from Argentina because of the outbreak of Foot and Mouth Disease(FMD) there; an FMD-connected ban on Argentine corn was in force until November 2001. Since 1996, the production, importation, and distribution of food supplements (defined as vitamins, minerals, extracts, plant substances, amino acids, concentrates or any combination) must, inter alia, be by licensed pharmaceutical companies or local-government-licensed food supplement companies, and be manufactured in compliance with food manufacturing practices. Hygiene and safety requirements have been set as well as maximum daily limits for vitamin and mineral amounts. All processed food products must be tested by the National Agency of Drug and Food Control (BPOM). Upon implementation of the 1998 Consumer Protection Law, as from July 2000 a registration number (ML) must be obtained from BPOM to import food products. Following complaints that the ML-related procedures were time consuming and costly, the BPOM granted temporary MLs for food items that, according to the authorities, had already entered Indonesian territory, but had not received the approval from BPOM. The authorities indicated that the time limit for completion of allML registration procedures had been extended until December 2002, and no more MLs would be granted afterwards. Importation of live animals also required an inspection certificate from the Indonesian Veterinary Service. All medical devices, cosmetics, and household health supplies must be registered with the Director General of Food and Drugs. Imported and locally produced medicines alike require a certificate of analysis from the manufacturer. Brochures (in Indonesian) must accompany over-the-counter medicines for distribution in Indonesia. Retailers must confine their sales of patent medicines to those of recognized companies (retailers are prohibited from repacking or mixing operations). International cooperation To meet requirements in developed country markets with respect to pesticide residues, microbiological contaminants, additives, and heavy metal content of fish and poultry products, by 2001 the Ministry of Agriculture was trying to establish and strengthen a certification body on quality systems based on the FAO/CAC Hazard Analysis Critical Control Point (HACCP), and testing laboratories. The Indonesian agricultural, livestock, and fisheries sector seems to have been successful in implementing the HACCP quality management system programmes; consequently, an MRA has been signed with the EU, and studies have been made examining the possibility of developing SPS-related MRAs with the Netherlands and New Zealand. Indonesia has undertaken bilateral informal discussions with other ASEAN partners with a view to facilitating transparency in trade in food. Transparency Between 1998 and 2002, 16 notifications relating to SPS requirements on food safety, animal health, and plant protection were submitted to the ϲʹ Committee on Sanitary and Phytosanitary Measures; Indonesia also notified its enquiry point and national notification authority. In the context of the work of this Committee, Indonesia indicated its requirements for capacity building and training in relation to food safety, and animal and plant health. At SPS Committee meetings, some Members expressed concern over Indonesia's import restrictions relating to Foot and Mouth Disease and fruit flies (fresh fruit from New Zealand). Marking, labelling, and packaging Since 1979, the SNI mark (indicating conformity with the relevant standard) has been either compulsory (item involving safety and health aspects subject to mandatory SNI) or voluntary. Drugs and pharmaceuticals must be marked on the immediate container to show origin, nature, composition, quality, quantity, and registration number. Under new food labelling requirements, effective as from 1999, all packaged food products distributed in Indonesia must be labelled exclusively in Bahasa language, Arabic numbers, and Latin letters; the authorities indicated that the use of any other language, number and letters is allowed as long as there are no other synonyms for the purpose of food trade with foreign countries. The use of stickers was authorized temporarily (i.e. until enactment of the new regulation). Since 1999, specific wording has been required for the labels of certain food items, including milk products, baby food, alcoholic beverages, and halal food, to indicate their content. The date of minimum durability (expiration date) has been required for food items. Food additives must be identified. As from January 2001, any food containing genetically engineered or irradiated products must be labelled in compliance with BPOM requirements. As indicated earlier (sections (xi)(a) and (xi)(b)), since 1998, Indonesia has notified to the ϲʹ Committee on Technical Barriers to Trade several mandatory standards including tworelated to food labelling requirements. Measures Directly Affecting Exports Registration and documentation As in the case of imports of restricted items (section (2)(v)), exports of products subject to specific export measures (section (3)(ii) and (3)(iii)) have been allowed only through registered and approved exporters. Basic documentation requirements for exports have remained unchanged since the previous Review. They include, basically, an export declaration (PEB) in diskette form, unless an international document (e.g. ATA Carnet, TRIPTIEK, CDP Carnet consignments by PT Pos) is used. Physical inspection of merchandise exports is required for suspected cases of customs or internal tax fraud, temporary exportation/importation, items subject to export tax (PE), use of drawback system facilities (BAPEKSTA), and gold powder/ingots/bars. Since August 2001, inspections have been carried out by the Customs Office (LPBC), taking over PT Sucofindo's (Surveyor) functions; inspection may take one day and no fee is involved. Export prohibitions, restrictions, and licensing During the period under review, export prohibitions and restrictions have been maintained to ensure: protection of natural resources and endangered species (e.g. in accordance with CITES); promotion of higher-value-added downstream industries; upgrading the quality of export products; adequate supply of essential products; and controls on items subject to international commitments (e.g. MFA). Export prohibitions Indonesia bans exports of certain live fishery products, rubber of low quality, rubber materials, crude leather of reptile, ferrous scrap/waste (except if originating in Batam Island), round wood and wood chips (as from 2001), and CITES-protected wild animals and natural plants. To combat a fertilizer shortage, as from August 2000 export of urea has been banned. As from 2002, exports of sea sand have been suspended with a view to protecting the ecosystem; the authorities indicated that sea sand exportation may be undertaken by registered exporters under an annual quota system, presently suspended. Exports to Israel remain banned. Export restrictions ("supervised" exports) To ensure an adequate domestic supply of certain agricultural, mineral, and industrial products at reasonable prices, Indonesia has maintained its export approval requirements for so-called "supervised" products. In January 2002, supervised exports were: certain live bovine animals, live fish, palm nuts/kernels, lead and bauxite ores/concentrate, petroleum oils/products, urea fertilizer, crocodile leather (wet blue), unprotected wild animals and plants, silver/gold unwrought/powder/ingots/semi-manufactured, waste/scrap of cast iron/alloy steel/tinned iron steel/stainless steel/copper/brass/aluminium. No data on approvals granted/refused, reasons for refusal, or the reason for not notifying these restrictions to the ϲʹ have been provided by the authorities. Export licensing and quotas ("regulated" exports) Since the previous Review in 1998, the system of regulating exports through licensing and quotas (including product coverage) has remained unchanged; at that time, the lack of transparency and adverse economic effects of the system were noted (e.g. administrative discretion in quota allocation to approved exporters encouraging the formation of powerful export cartels, notably in the wood, plywood, and rattan industries). As of January 2002, Indonesia regulated exports of certain types of manioc (destined for the EU)), coffee and its extract/essence/concentrate/preparations (Association of Coffee Producing Countries), textiles and clothing (MFA export quotas), rubber, veneer and plywood or similar laminated wood, and teakwood. No further information on the use of these measures was available from the authorities. Export taxes To promote downstream processing and higher-value-added exports, Indonesia has maintained its export taxes on certain commodities; in the light of its IMF commitments, it reduced the scope and rates of tax, which are now ad valorem only. Between 1999 and February 2001, the number of products subject to export tax was reduced slightly from 12 nine-digit HS96 items (including coconut oil) to four groups of commodities (i.e. rattan, wood, minerals, sand, and palm oil); the range of rates was narrowed (from 10%-40%, to 1%, 3% and 15%) and the level and dispersion of rates (from seven to three) were also cut. Export taxes are calculated on the basis of a formula containing a minimum/benchmark export price or export check price (HPE). The introduction of an export tax on leather was under consideration in November 2002. Such taxes constitute implicit assistance to the downstream activities for the products involved. Export check (benchmark) prices Indonesia has continued to set and regularly update export check prices (HPEs) for items subject to export taxes to simplify tax collection as well as to combat under-invoicing; an HPE has been set at US$3 per cubic metre for sea sand to prevent environmental damage, even though exports of this item are prohibited. HPEs do not always correspond to world prices; despite rising international prices, the authorities indicated that theHPEs for crude palm oil and its derivative products remained fixed. Export assistance Grants According to the relevant notifications to the ϲʹ, during the period under review Indonesia did not provide any direct subsidies to rice exports. Under ϲʹ commitments, Indonesia has to ensure annual cuts in export subsidization for rice; budgetary outlays should be reduced from US$27.7million (1995) to US$21.5 million (2004), covering a progressively reduced volume of rice exports from 295,000 tonnes to 257,000 tonnes, respectively. Duty and tax concessions The operation of the duty exemption and drawback schemes remains unchanged (section(2)(ii)(i)). Imported or domestically purchased inputs used in the manufacture of exported products are apparently exempt from custom duties and internal taxes, which may be refunded upon exportation of the final product. The authorities indicated that no subsidized credit has been available to agricultural and small and medium-sized firms (section (4)(ii)). Free-trade export zones and similar schemes Indonesia has continued to operate its free-trade zones and industrial estates, which are combined in several bonded warehouse areas administered by SOEs (mainly the island of Batam, Nusantara Harbour, and the Port of Tanjung Priok). Bonded zones are intended for the processing and assembly of goods, including their design, engineering, sorting, initial inspections, and packaging. Companies may be 100% foreign owned for five years, and 95% ownership thereafter is permitted, provided 100% of the product is exported. Companies operating in bonded zones have been required to export at least two thirds of their production, excluding components, which can be sold on the domestic market provided domestic sales do not exceed 50% of realized export value. In the context of the 1999 Automotive Policy (Chapter IV (4)(ii)), the limits on the levels of domestic sales allowed from automotive production facilities in bonded zones have been raised, from 50% to 100% of export value in the case of components, and from 25% to 50% of export value in the case of fully assembled products. The authorities indicated that apart from the exemption from import duties and the facility to sell a part of the output to the domestic market, no other incentives are available to firms established in these zones. Export finance, guarantees, and insurance Since September 1999, the state-owned PT Bank Ekspor Indonesia Persero (BEI) has ensured pre- and post-shipment finance and guarantee facilities (for exports and imports), which were formerly operated by Bank Indonesia (the central bank). To enhance export activities, the BEI guarantees letters of credit (L/C) and issues guarantees for domestic exporters who need loans from local banks. Guarantees have been refused for loans to companies with bad debts (i.e. most export-oriented firms); BEI assesses exporters (and importers) on the basis of normal prudential banking norms. Terms and conditions of finance are set in accordance with commercial considerations. Low-interest funding from Japan's Export-Import (J-EXIM) Bank and from the Miyazawa Plan is used to finance BEI, which had initial capitalization of Rp 3 trillion. The state-owned Export Insurance Indonesia (ASEI) remains the major source of export insurance for products other than oil and gas; as from December 1999, its scope was expanded through a memorandum of understanding signed with the state-owned Asuransi Jasaraharja Putra (AJP) to provide export insurance coverage to SMEs. In 2002, ASEI entered into general insurance business to provide one-stop service to its clients as well as to maximize its net worth equity. ASEI's core business involves export credit insurance and guarantee as well as bonds (construction bonds, customs bonds, etc.). Premium rates for the comprehensive policy range from 0.2% (for a short term irrevocable L/C for shipments to the United States, Australia, Europe, and Japan) to 4% (for a one-year L/C to several high-risk countries) of the gross invoice; the rate is determined by country risk, the presence of payment security (or lack thereof), and the period of credit. For SMEs, the ASEI has covered claims of export payment risks, and the AJP those for loss of goods; the premium tariff of 0.2%2.2% of export value is based on export destination, exporters' terms of payment, and L/Cs. Measures Affecting Production and Trade Taxation Indonesia has reduced steadily its reliance on direct taxes to less than 48% of its tax revenues (TableIII.5). The VAT and the sales tax on luxury goods have remained the main indirect tax components followed by excise taxes and taxes on international trade (customs duties, export taxes). Table III.5 Structure of direct and indirect tax revenue, 1997-03 (Rp billion and per cent) 1997/98a1998/99a1999/00a2001b2002b2003b,cTotal (Rp billion)70,935 96,082 107,124 184,736214,713254,140(Per cent of total) Income tax 48.50 51.3051.3050.2148.1347.58VAT on good and services and tax on sales of luxury goods 35.50 29.5030.8030.2331.5731.78Import duties4.202.303.505.325.514.70Excise duties7.208.309.709.5410.4611.00Export tax0.204.800.800.380.140.20Land and building tax3.703.303.403.403.503.90Other taxes0.700.500.500.920.690.84a Data for fiscal years from Bank Indonesia statistical publication. b Data for calendar years provided by the authorities. c Estimates. Source: Bank Indonesia, Indonesian Financial Statistics, September 2002; and data from the Indonesian authorities. Indirect taxation As indicated in Chapter I, apart from regional tax reform, the indirect tax system has not undergone any major changes. Indonesia currently levies the following indirect taxes: since 1985, a 10% value-added tax (VAT) on the sales price of domestic goods and the c.i.f. value plus customs duties for imports and services (including imports, commerce, and processing); since January 2001, a luxury sales tax on 37 groups of goods at rates ranging from 10% to 75%. In principle, indirect taxes are levied in a non-discriminatory manner; the authorities indicated that since 2000, the luxury sales tax and the VAT have no longer been levied solely on imported goods. At the time of the previous Review, it was indicated that sales taxes levied on cigarettes (lower rate for Indonesian-made Kretek cigarettes), certain non-alcoholic beverages, motorcycles with engine capacity of less than 250cc and motor vehicles, were not in line with the non-discrimination principle. In 1998, the exemption from luxury sales tax provided in favour of the National Car Programme was the subject of a dispute settlement case at the ϲʹ; as a result, this measure was eliminated.  To facilitate tax collection and ensure greater compliance, since 1995 Indonesia has maintained an extensive withholding tax system consisting of a prepayment and a final income tax (on interest from savings deposits, Bank Indonesia Certificate (SBI). In 2001, in connection with wider regional autonomy and related tax decentralization, various regional levies and taxes were adopted. Direct taxation Since the previous Review, Indonesia has changed income tax rates for enterprises and individuals. Personal tax rates were lowered in 2001. Statutory tax rates have been set at: 5% (down from 10% in 2000) on taxable income up to Rp 25 million; 10% (from 15%) on income from Rp25million to 50million; 15% (from 30%) on income between Rp 50 million and 100 million; 25% (from 30%) on income between Rp 100 million and 200 million; and 35% (up from 30%) for income exceeding Rp 200 million. Corporate income tax rates now are set at 10% (up to Rp30million), 15% (from Rp 30million to Rp 100million) and 30% (above Rp 100million). As indicated in the previous Review, effective tax rates may be considerably less than these statutory rates, as a result of various tax concessions, especially for certain firms in the industrial sector or for companies located in certain regions. The outcome is significant variation in effective tax rates, and thus in the tax incentive to invest, across industries and even enterprises. As from July 2001, new regulations affecting the forestry sector, required reforestation funds to be paid three years in advance. The principle of fairness and non-discrimination (toward foreign entities) is embodied in existing tax legislation. Routine tax audits seem to boost the actual tax rate by a significant margin. Production assistance Since its previous Review, Indonesia has continued to provide assistance to domestic producers largely in the form of tax incentives(sections (2)(ii)(i) and (3)(v)); new legislation on these incentives entered into force as from January 2001, replacing the 1996 legislative framework. At present, industry- and/or region-specific (decentralization) incentives are available in the form of: investment tax allowance (income tax reduction up to 30% of the realized investment spread over six years), accelerated depreciation and amortization; loss carried forward facility (up to ten years), and a 10% income tax on dividends (possibly lower if stipulated in the provisions of an existing tax treaty). A Rp 6trillion (US$660 million) fiscal stimulus package (exemption from/reduction of luxury tax) was put in place to help businesses coping with rising production costs triggered by the simultaneous increase in fuel prices, electricity tariffs, and telephone charges. In early 2003, a second package was under consideration (elimination/reduction of luxury tax rates on some 45 items, mainly electronics), to boost domestic demand and help local goods to compete with smuggled items. The authorities have indicated that no subsidized credit is now available. At the time of the previous Review, the Export-Import Bank of Indonesia maintained several subsidized credit programmes, primarily aimed at agriculture and SMEs; the entire structure of subsidized credits was to be modified by ongoing economic reforms. Indonesia has provided trade-distorting market price support for rice through BULOG (section(2)(vi)); in 2000 budgetary outlays stood at Rp 2.2 trillion or 71% of total domestic support notified. In 2000, spending on Green Box measures was dominated by domestic food aid operations (34%) and general services (e.g. estate crops, food crops and horticulture development programmes); this type of spending was Rp 887.5 billion or about 29% of total domestic support. Reportedly, the 2003 Budget (Rp 1,315billion) re-introduced the fertilizer subsidy (for urea, SP-36, ZA, NPK) for small-scale rice producers until 2005; quantitative limitations exist and the subsidy level varies from Rp 94 to Rp 250 (in the case of urea) per kg., depending on the type of fertilizer. It seems that this subsidy is accorded exclusively to domestically produced fertilizers. Financial support for research and development activities has been maintained, mainly to promote high technology and technologically sophisticated industries; it accounts for about 0.18% of GDP. The Petroleum fuels (BBM) subsidy (50% of the market price in 2001 and 75% in 2002), which is destined for the industrial and public sector, has been maintained though budget outlays that have been reduced gradually (Chapter IV); the authorities indicated that this type of public support has reduced their capability to fund programmes relating to poverty reduction, improvement of the health service, education, etc. The market price of fuels (i.e. Mid Oil Platt's Singapore plus 5%) applies only to general mining, oil and gas mining, foreign-flag-bearing ships, and ships with foreign destination. Ceiling and floor prices are in force. Price controls (operated through so-called administered prices) have continued in order to prevent overshooting of prices for a handful commodities and services deemed essential for the population. They affect rice, petrol, electricity, liquefied petroleum gas, salt, cement, hospital services, potable/piped water, city transport (depending on the region), air transport, telephone charges, trains, toll road tariffs, and post. Competition and consumer policy Competition policy Indonesia passed its first competition (anti-monopoly) law in 1999; despite alleged overall weaknesses of the legal regime and the new law (see below), this legislation is reportedly a key tool in reducing collusion and other restrictive practices that have contributed to inefficiency and corruption in the Indonesian economy. The law prohibits and/or severely restricts specific anti-competitive business practices such as contracts (oligopoly, price-fixing, restrictive market-sharing arrangements, boycotts, cartels, and trusts), activities (such as monopoly leading to unfair competition or excessive control of marketing or production, joint market control that created obstacle for the new entries), and other practices that involve abuse of dominant market position. Sanctions may take the form of fines, compensation for damages, termination of certain activities or actions that caused damages, and retendering. The legislation is aimed at establishing a climate conducive to business through fair competition, thus ensuring equal business opportunities and increasing national economic efficiency. According to some observers, the law has failed to make a clear distinction between anti-competitive business conduct and market structure, and lacks a precise definition of the "relevant market" to be used when investigating a complaint of anti-competitive behaviour, which is to be dealt with by KPPU on a case-by-case basis. In a market such as Indonesia's a vast archipelago with many geographically dispersed and segmented markets where a firm or group of firms with a small market share at the national level may take market control at the provincial or regional market there seems to be a need to define a market in a way that will enhance overall competition. The authorities indicated that action is to be taken in this respect. Since June 2000, an independent Commission for the Supervision of Business Competition (KPPU) has been entrusted with policy advisory tasks and all implementation aspects of the legislation; action may be taken on the basis of presumed monopolistic practices and/or unfair business competition reported by the public or by business, or cases discovered by the Commission. Initial resource constraints are being resolved progressively with, interalia, the support of foreign national, regional, and international institutions such as Ausaid (Australia), the German Competition Commission, USAID (United States), the European Commission (EU), and the World Bank. Indonesia has also benefited from technical assistance from the Japan Fair Trade Commission, the Korea Fair Trade Commission, the U.S. Federal Trade Commission, and the World Bank. During the period under review, Indonesia has participated actively in the work of the ϲʹ Working Group on the Interaction between Trade and Competition Policy. Between June 2000 and December 2001, 40 cases were reported and seven cases were handled; three were on KPPU initiatives, the rest were based on complaints from the public. Most of the cases dealt with by the KPPU related to tender collusion (70%) involving an SOE or a governmental agency, as well as government-triggered discrimination and price stipulation (economy class airfare, taxi tariff, fuel distribution), monopolistic behaviour (involving SOEs Pertamina, State Electricity (PLN), Jamsostek, Telkom) and anti-competitive international trading and domestic market structure (anti-dumping measures in favour of wheat flour and carbon black). During 2002, 47 cases were reported to the KPPU; it handled eight cases (five reported by the public or business actors, and three cases upon KPPU's initiative), no information was available with respect to the other cases. Consumer policy A comprehensive Law on Consumer Protection (LCP) enacted in 1999 (effective as from 21April 2000), was a major step forward in the protection of consumer rights. The LCP regulates unfair competition, standard clauses, warranties and guarantees, advertisements, and product liability, as well as the establishment of the institutional framework for consumer protection in Indonesia. Consumer protection is defined as "all efforts ensuring legal certainty to provide protection to consumers", thus underscoring the importance of legal certainty in Indonesia; it seems that the LCP is seen as the umbrella that will integrate and strengthen law enforcement in the area of consumer protection. The responsibility for consumer protection is now shared between the Government and non-governmental organizations. The National Consumer Protection Board (NCPB) and the Consumer Dispute Settlement Board (CDSB) are to be entrusted with LCP implementation; in February 2003 these institutions were being prepared. Consumer protection organizations that meet legal standing requirements (i.e. registered NGOs), as set under the LCP, may represent consumers at the courts. Intellectual property rights Indonesia expanded its commitments on protection of intellectual property rights (IPRs) by becoming a party to the World Intellectual Property Organization (WIPO) Copyright Treaty (6March2002); it now participates in 7 out of 21 treaties administered by the WIPO. Indonesia is considering ratifying treaties such as the WIPO Performance and Phonograms Treaty and the Budapest Treaty on the International Recognition of Deposit ofMicroorganism for the purpose of Patent Procedure. Indonesia participates actively in the discussions on the establishment of Patent Law Treaty, which may be used as a standard for the procedure and protection. Like several other developing ϲʹ Members, Indonesia missed its January 2000 deadline for ensuring full implementation of the Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). Nevertheless, pursuant to its TRIPS obligations, in December2000 new legislation on industrial designs, layout-designs of integrated circuits, protection of plant varieties, and trade secrets entered into force; by July 2001, amendments had been passed to the existing patent, trade marks and copyright legislation. Since its previous Review, Indonesia has participated actively in the work of the Council for TRIPS, and gave extensive replies to questions raised at the review of its legislation in the year 2000. Indonesia has benefited from legal and technical assistance (mainly training and workshops) provided by Australia, the EU, Japan, Switzerland, the United States, the International Union for the Protection of New Varieties of Plants, the World Bank(see below), World Customs Organization, World Health Organization, and WIPO. Institutional issues and enforcement action Since 1998 policy formulation (including the development of legislation) has rested with the Presidential Commission on IPRs, which consists of high-ranking officials from the government agencies involved in IPR matters (i.e. Ministry of Justice, Customs, Police). The administration of IPR registration has been carried out by the Directorate General of Intellectual Property Rights. Enforcement has been the responsibility of the Attorney General, Police, Customs and the courts. A key issue for the effectiveness of the IPR regime is the coordination of activities between these different offices and agencies and at national and regional levels. Indonesia is currently contemplating a more integrated administrative organization and putting in place, in cooperation with the World Bank, an integrated information system on IPR, which would connect the various actors involved (central and regional offices, Ministry of Justice, Police, Customs). Border enforcement procedures are found in Articles 54 to 64 of the Customs Law, which reflect the procedural requirements set in Articles 51 to 60 of the ϲʹ Agreement on TRIPS (Special Requirement Related to Border Measures). Technical assistance has been undertaken in the form of training for Customs and the Police as well as judges and attorneys, and employees of the Department of Trade and Industry. Between 1998 and 2002, seizures at ports and airports seem to have largely involved video compact discs (VCD); seizures dropped considerably in 2002. Despite regulatory developments and other initiatives, by 2000, law enforcement was the most crucial problem as public awareness of and support for IPR protection was limited. Nonobservance of IPR legislation is considered a crime and is therefore handled by the Police and special IPR investigators. According to the Directorate General of Intellectual Property Rights (DGIPR), limited resources do not allow for staff training and proper administration and enforcement of IPR legislation. Furthermore, a growing underground economy compounds the difficulty of controlling a territory composed of 13,500 islands. In addition, the authorities recognize that difficulties in enforcing IPR protection are the result of, inter alia: lack of knowledge; different views and perceptions of IPRs (including a hostile social environment and the economic crisis); lack of coordination among law enforcement agencies; weak civil remedies and criminal penalties; and deficiencies in the judicial mechanism. As a result of poor investigative techniques, poor handling of evidence and lack of expertise, the judicial system is considered to be ineffective in enforcing IPRs. Civil litigation has been the most common form of IPR enforcement in the domestic market-place. From 1999 to 2002, criminal cases, which were handled by the Civil Servant Investigators (PPNS) of DGIPR, involved 29 offences consisting of 13 cases on copyrights, 11 cases of trade marks, and 5 cases of patents. In relation to law enforcement, DGIPR also participates in the appointment/designation of expert witnesses; it appointed/designated expert witnesses in 25 cases of copyright infringement, 7cases of patent infringement and 78 cases of trademark infringement in the period 1999-02. Penalties for violations have been toughened and may include both imprisonment (up to seven years (copyright)) and monetary fines (up to Rp1billion (copyright/trademarks)). Nevertheless, there has been particular concern over increased piracy over recent years (section (b) below). Industrial property Patents and utility models As indicated earlier, patent legislation was most recently revised in July2001. Products and production processes are protected for a period of 20 years commencing from the filing of the patent application, subject to certain requirements. Compulsory licensing and a provision that limits protection for patents "implemented" in Indonesia (i.e. used for domestic production) are now in force. Regarding pharmaceuticals, joint-venture companies are prevented from acting as licensees of any foreign company other than their parent, unless the company can prove that it has been producing the drug in other countries under a licensing agreement; this provision obliges foreign pharmaceutical firms to seek a locally owned firm or invest within Indonesia and licence its own affiliate. Under new legislation, fines for patent infringement were increased and an independent Patent Commission was established to rule on disputes and appeals. The new legislation transferred jurisdiction of the patent cases from the district (criminal cases) to the commercial court though reportedly the judges of the latter court have no IPR expertise. Protection of plant varieties Indonesia passed a new law for the protection of plant varieties in December 2000. Indonesia has not ratified the UPOV Convention. Trade marks In 2001, Indonesia amended its (Trade) Mark Law (in force as from August 2001) with a view to streamlining provisions on registration of marks and de-registration of marks fraudulently obtained. Trademarks may now be protected for a period of ten years (extendable) from the date of receipt. Trademark rights are determined on a first-to-file basis rather than on a first-use basis. After registration, the mark must actually be used in commerce. The law offers protection for service marks and collective marks and sets forth a procedure for opposition after examination by the trademark office; opposition must be submitted within threemonths of publication, which follows substantive examination. No distinction is made between "famous" marks and "well-known" marks (the sole term used by the law). The legislation provides protection to "well-known" trademarks, although, to the detriment of several foreign marks, the registration procedures for trademarks as "well known" have not been fully developed yet; a regulation on this matter is being prepared. Cancellation actions are now intended to be easier as they may be filed at the commercial court. Under new legislation, the mark registration process has become faster though it is still manual (i.e. without electronic means, pending completion of office automation); the law requires no more than 14 months and 10 days to complete the whole process (from submission of the application until the issue of the certificate of mark). According to the authorities, at present there is no backlog in processing a mark application for registration, "although some cases require more time". Reportedly, trademark registration has remained a lengthy process due, inter alia, to human resource constraints. Until recently the Trade Mark Office had a batch of applications for registration in the tens of thousands. Moreover, after registration is granted, the Trade Mark Office may take up to 12months to issue the certificate of registration, which is needed to commence enforcement proceedings. The Indonesian Trade Mark Appeals Board, which was established in 1995, became operational in January 2001. Industrial designs The new Law on Industrial Design has secured protection of new industrial designs for a period up to tenyears from the date of receipt. An industrial design is considered to be new if, at the date of its receipt, it is not the same as previous disclosures. Since June 2001, applications have been submitted to and processed by the Directorate General of Intellectual Property Rights. As at December 2002, 4,271 applications had been submitted. Trade secrets Under the new law, trade secrets cover methods of production, processing, sale or other information in the area of technology and/or business; no time limitation is set and protection remains in force as long as the trade secret is maintained and not disclosed to the public. Protection is afforded to information that is secret in nature and of economic value. The registration of the transfer of rights and of trade secret licence agreements has been undertaken by the Directorate General of Intellectual Property Rights. Copyright and related rights In line with ϲʹ TRIPS and with WIPO commitments, copyright legislation was last amended in 2002, and several implementing regulations have been prepared (on copyrights held by the State, management of information, optical discs, IPR consultants, Copyright Council), as well as presidential decrees (on filing an application and licensing agreements). The law now affords protection to foreign and domestic works, expands the scope of coverage and raises the terms of protection to international standards in line with newly acquired commitments. Copyrights for literary, educational, and scientific volumes, architecture, maps, dramatic, musical, or artistic work, are granted for the lifetime of the author plus 50 years. Copyright protection for computer programs, phonograms, performances, broadcasting works, and cinematography works is granted for 50 years; protection for photography works is granted for 25years from their first publication. The legislation does not include provisions for remedies against end-user piracy, e.g. unauthorized copying of a legitimate copy. Piracy rates for optical media (i.e. audio CDs, video CDs (VCDs), DVDs, and CD-ROMs containing business software applications and/or entertainment software) and books in English-language (textbooks, reference books, and computer related volumes) are of particular concern to the international community; the domestic market is dominated by pirated optical media products and Indonesia now seems to have enough production capacity to export these items. According to a recent study by Business Software Alliance, Indonesia's piracy rate was the 3rd highest in the world (share of pirated retail sales to total software sales), although there was a slight decline, from 89% in 2000 to 88% in 2001. To address the problem, in addition to the ban on pirated video and audio works, police forces conduct regular raids on shops offering pirated material; these raids have resulted in the seizure of large amounts of illegal optical media and diskettes. Other measures (environmental) Indonesia is a party to numerous international or regional environmental treaties (Table III.6), and is preparing to fulfil its commitments under the Kyoto Protocol, for which ratification is to be completed by 2003. Table III.6 Environmental treaties to which Indonesia is a party TreatyRatified by IndonesiaUnited Nations Convention on Biological Diversity (UNCBD)23 August 1994UNEP Convention on International Trade Endangered Species of Wild Fauna and Flora Cites)28 December 1978United Nations Framework Convention on Climate Change (UNFCCC)23 August 1994International Plant Protection Convention 1977 Convention on The High Seas 1961 Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological Biological) and Toxin Weapons and on their Destruction1991Convention Concerning the Protection of the World Cultural and Natural Heritage 1989Convention on the Physical Protection of Nuclear Material 1986 United Nations Convention on the Law of the Sea (Unclos)1993International Tropical Timber Agreement 1995ASEAN Agreement on the Conservation of Nature and Natural Resources1988Convention on Early Notification of a Nuclear Accident 1993 Vienna Convention for the Protection of the Ozone Layer and Montreal Protocol on Substances that Deplete the Ozone Layer as Adjusted and Amended by the Second Meeting of the Parties London 27-29 June 1990 1992 Convention for the Prevention of Pollution from Ships (1973)1986 Protocol of 1992 to Amend the International Convention on Civil Liability for Oil Pollution Damage (1969) 1999 Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal 1993 International Convention on the Establishment of an International Fund for Compensation for Oil Pollution Damage 1978 and 1998 Convention on Wetlands of International Importance Especially as Waterfowl Habitat 1991 United Nations Convention to Combat Desertification in those Countries Experiencing Serious Drought and/or Desertification, Particularly in Africa 1998 International Plant Protection Convention 1977Source: ϲʹ Secretariat. Indonesia seems to be facing major environmental problems such as rapid deforestation (owing to illegal logging and agricultural burning), air pollution (caused by motor vehicles), water pollution, and carbon emissions. Since its previous Review, Indonesia has updated its regulatory framework in this area; legislation puts the onus on companies to maintain records so that they can defend themselves if prosecuted. In 2001, the list of the types of businesses subject to analysis on environmental impact was updated to be extended to businesses located near preserved areas or deemed to have an important impact on the environment. A major constraint in implementing policy in this area seems to be the fragmentation of information; various Ministries, such as Mines and Energy, Agriculture, Forestry, and Public Works, collect data, but these are not cross-referenced with other data held. The Environmental Impact Management Agency (BAPEDAL) has no enforcement powers, but relies on voluntary compliance by industry with its various environmental programmes (e.g. Clean River Programme, Blue Sky Programme, Cleaner Production Programme). The 1999 target for phasing-out leaded petrol was not met. Various industrial operators have yet to fulfil their original commitment to install wastewater-treatment plants; disputes over water pollution involving mining companies have been difficult to settle because of a lack of internationally accredited laboratory facilities to determine levels of toxic pollutants. Efforts have seemingly been made to ensure that the energy industry becomes a pioneering force in the country's sustainable development. Reportedly, inadequate enforcement of environmental regulations has increased pressure from donors and local environmental groups. The authorities indicated that compliance programmes have been developed such as the enhancement of environmental inspection and Environmental Performance Rating Programme (PROPER). Experience from implementing PROPER has shown that compliance difficulties were partly due to lack of technology; in response, the Ministry of Environment is developing policies to enhance gradual compliance. Indonesia has participated in the work of the ϲʹ Committee on Trade and Environment; it submitted a paper on agriculture and environment together with other ϲʹ Members.  Decree of the Minister of Industry and Trade No. 550/MPP/Kep/10/1999 of 5 October 1999 amended by Decree of the Minister of Industry and Trade No. 253/MPP/Kep/7/2000 of 4 July 2000.  Directorate General of Customs and Excise of Indonesia (2002).  Country Commercial Guide (2002).  Bank participation in the system is essential, since the customs authorities can clear the goods electronically only when confirmation of payment of duty (by the banks) is received through EDI (ϲʹ,1999).  Directorate General of Customs and Excise of Indonesia (2002); ϲʹϠ(1999).  Oryza Rice Market Report (2002).  Indonesian Customs Law 10/1995, effective on 1 April 1997; ϲʹϠ(1999).  ϲʹϠ(1999).  ϲʹ document G/MA/IDB/2/Rev.15, 17 September 2002.  APEC Tariff Database [Online]. Available at: http://www.apectariff.org/ [20 September 2002].  The authorities indicated that since the ϲʹ Agreement on Agriculture does not require a staged implementation process, Indonesia and other developing countries are permitted to implement their commitment at the end of implementation in 2004.  These sections cover fish fats/oils and meat/fish/crustaceans extracts/juices.  The ITA, which was agreed at the Singapore Ministerial Conference, has 40participants (February2001, counting European Communities as one) and provides for the elimination of customs duties and other duties and charges on computers, telecom equipment, semiconductors, semiconductor manufacturing equipment, software, and scientific instruments, on an MFN basis (ϲʹϠdocument G/IT/1/Rev.17, 16February2001). The ITA does not cover consumer electronic goods. In 2001, Indonesia was among the 15th leading exporter of IT goods (ϲʹ, 2002, Table IV.45).  Schedule XXI-Indonesia, 15April1994.  The 317 presently unbound tariff lines concern sensitive manufactured products (approximately 10% of non-oil imports in 1998) such as iron and steel, certain chemicals, plastics and rubber products, some pharmaceuticals, machinery, ships, aircraft and parts, motor vehicles and parts (ϲʹ,1999).  ϲʹϠdocuments WT/Let/318, 18February1999; G/MA/W/23/Rev.1, 6June 2001.  Decree of Ministry of Finance No. 568/KMK.01/1999; USTR (2002).  Reuters, 31 March 2003.  ϲʹ document G/AG/N/IDN/23, 8 October 2001.  PartI-B, ScheduleXXI Indonesia, 15April1994.  During this period tariffs on a large number of items were lowered while on a few sensitive items tariffs were reimposed (sugar, rice) or raised (hot- and cold-rolled coil products) (APEC, 2001); Dow Jones Newswires, 8 November 2002; USTR(2002)).  The authorities indicated that Decree of the Ministry of Finance No. 378/K.MK.01/1996 contains the unilateral tariff reduction schedule up to 2003.  ASEAN (undated)  Decree of the Minister of Finance No.474/KMK.01/2002, 19 November 2002. ϲʹ document G/RO/N/16, 5 March 1997.  APEC (2001).  ϲʹ document G/RO/N/4, 7 August 1995; ϲʹϠ(1999).  ASEAN online information. Available at: http://www.aseansec.org/economic/customs/ custmain.htm [11December 2002].  APEC (2001).  ϲʹ document G/VAL/N/1/IDN/1, 27 September 2001.  ϲʹ document G/VAL/2/Rev.15, 21 October 2002.  The items include: narcotics, psychotropics, explosive materials, firearms and ammunition, fireworks, defined books and printed materials, audio and/or visual recording media, telecommunication equipment, colour photocopiers, parts and equipment thereof, endangered species of wild fauna and flora, and parts thereof, certain species of fish, medicines, food and beverages not registered at the Department of Health, dangerous materials, pesticides, ozone-depleting substances and goods containing ozone depleting substances, wastes, and culturally valuable goods (Directorate General of Customs and Excise, 2002).  The authorities indicated that this is to deal with: chicken leg/quarters without Halal Certificate from U.S. islamic bodies; and the particularly low price of chicken leg/quarters, which are seemingly a secondary option to breast meat.  Decree of the Minister of Industry and Trade No. 49/MPP/Kep/2/2000, 25 February 2000, to ban the import of cars 4,000cc and larger or with a price tag exceeding US$40,000; Decree of the Minister of Industry and Trade No. 192/MPP/6/2000, 2 June 2000.  Country Commercial Guide (2002).  At that time, import licensing protected the most sensitive products, which accounted for the bulk of remaining licences (agricultural commodities, alcoholic beverages, motor vehicles, certain chemicals, iron and steel products, and scrap material) (ϲʹ,1999).  USTR (2002), p. 189; ϲʹϠ(1999).  USTR (2002), p. 189.  Country Commercial Guide (2002).  Oryza Rice Market Report (2002). In August 2000, the National Logistics Agency (BULOG) lifted the restriction on rice imports; however, BULOG had left open the possibility of re-imposing the restriction in the future, if local prices were depressed or to prevent a rice glut.  Decree No. 732/2002.  ϲʹϠdocuments G/LIC/N/1/IDN/1, 2 November 1998; G/LIC/N/3/IDN/1, 2 November 1998; and G/LIC/W/17, 4 September 2002.  Imports are authorized for three registered importers, including one state-owned enterprise.  Imports of these items have been permitted only by local producers of similar products and by registered importers (Decree of the Ministry of Industry and Trade cited in Dow Jones Newswires, 8November2002).  ϲʹϠdocument G/STR/N/7/IDN - G/STR/N/8/IDN, 23 August2002.  The Jakarta Post, 10 and 11 February 2003.  Non-participation in the GPA means that Indonesia is not bound by the ϲʹ principles and rules on transparency and non-discrimination in this area.  Presidential Decree No. 18/2000. Available online at: http://www.kimpraswil.go.id/publik/ DasarHkm/awal.htm [20 November 2002].  Indotradezone.com (2002).  This estimate reflects the share of general government consumption expenditure to GDP, and is based on BPS (Central Bureau of Statistics) statistics (available at: http://www.bps.go.id/index.shtml). No other data were made available to the Secretariat.  ϲʹϠ(1999).  Indotradezone.com (2002).  Bureau of Economic and Business Affairs/U.S. Department of State (2002).  The supplier is selected through direct negotiation after comparing bids.  The supplier is selected directly. In cases of small purchases, single supplier, or urgent need, the procedure is subject to approval of ministers or heads of local government or SOEs.  The planning and execution of the contract is carried out by the prospective purchaser of the goods/services using its own workers and equipment or contract workers.  Participants are selected through a pre-qualification process.  Method applicable to contracts below Rp 50 million or in cases where the procurement process resulted in a single bidder.  Bureau of Economic and Business Affairs/U.S. Department of State (2002).  ϲʹϠ(1999).  USTR (2001).  ϲʹϠ(1999); U.S. Commercial Service (2002).  As indicated in the previous Review, prior to the Asian crisis, the value of countertrade was US$400million (1997); this fell to US$195 million in 1998 and US$287 million in 1999.  U.S. Commercial Service (2002).  ϲʹ documents G/TRIMS/N/1/IDN/1, 1 June 1995; G/TRIMS/N/2/Rev.9, 28 September 2001.  In 1996, Indonesia withdrew motor vehicles from its original notification (ϲʹ document G/TRIMS/N/1/IDN/1/Add.1, 28 October 1996). In 1997, the granting of duty and sales tax exemptions under the 1993 and 1996 schemes on imported parts and components conditional upon local content have been subject to the ϲʹ dispute settlement procedures (ϲʹ document WT/DSB/M/47, 18 September 1998). (USTR,2002; APEC, 2001.)  More information on the legislative and institutional background may be found in ϲʹϠ(1999).  Decree of the Ministry of Industries and Trade No. 216/MPP/Kep/7/2001 revising Articles 1, 2, 3, 4, 5, 6, and 8 of the MOIT Decree No. 261/MPP/Kep/9/1996.  Data based on Indonesia's notifications to the ϲʹ Secretariat.  Presidential Decree No. 84/2002 regarding safeguard measures of 16 December 2002, as indicated by the authorities. This development seems to have been prompted by the difficulties of local manufacturers under pressure from the massive importation of textile and electronics products from China (The Jakarta Post.com, Ruling drafted to safeguard local industries[Online]. Available at: http://www.thejakartapost.com/ detailbusiness.asp?fileid=20020218.J01 [18 February 2002]).  The Jakarta Post.com, Ruling drafted to safeguard local industries.  This includes: the assessment and formulation of national policy in national standardization; coordination of functional activities in carrying out BSN tasks; facilitation and direction of standardization activities by governmental technical institutions; organizing national and international standardization cooperation; general administration service in general planning; and organization and working structure, personnel, finance, archiving, encrypting, and infrastructure (online information by the BSN. Available at: http://www.bsn.or.id/default_eng.htm [7 September 2002]).  Government Regulation No. 102/2000. Information on regulations in force may be found in BSN online information, List of BSN Guidelines. Available at: http://www.bsn.or.id/BSN_guidelines.htm [26March2002].  Table III.4 takes into account compulsory SNIs affecting industry and trade; those affecting agricultural, fisheries, and husbandry items are not taken into account as this information is available online only in the Bahasa language and access to the website directory is difficult. ϲʹ documents G/TBT/N/IDN/1, 15January 2001; G/TBT/N/IDN/2, 10 December 2001; G/TBT/N/IDN/3, 23 April 2002; and G/TBT/N/IDN/4, 23 April 2002.  Certification bodies (CBs) cover product certification, ISO 9000 quality system certification (QSC), personnel certification, ISO 14000 environmental management system certification (EMSC), HACCP system certification and training providers.  BSN online information. Available at: http://www.bsn.or.id/default_eng.htm [7September2002].  National Accreditation Body (KAN) (undated).  ϲʹϠ(1999).  Available at: http://www.bsn.or.id.  ϲʹ document G/TBT/ENQ/20, 13 March 2002.  No notifications were submitted in 1998 and 1999.  Dun & Bradstreet, Inc. (2001), p.633.  ϲʹ documents G/SPS/R/20, 16 January 2001 and G/SPS/R/22, 5 October 2001.  Dun & Bradstreet, Inc. (2001), p.635; ϲʹ document G/SPS/GEN/92, 15 September 1998; and Economist Intelligence Unit (2002), p. 51.  Regulation on importation procedures of animals and products derived from animals released by Director General of Livestock, on 30 June 2000, and Regulation of the Government No. 69 on Food Labelling and Advertisement of 21 July 1999.  Economist Intelligence Unit (2002), p. 51.  ϲʹ documents G/SPS/R/25, 18 January 2002 and G/SPS/R/27, 2 August 2002.  Dun & Bradstreet, Inc. (2001), p.635.  USTR (2002).  Dun & Bradstreet, Inc. (2001), p.635.  APEC (2001).  The number of recognized fish industries on the quality management system has increased from 155 (1994) to 259 (February 2003).  These national institutions are important in receiving and disseminating information concerning SPS measures (G/SPS/GEN/27/Rev.9, 14 March 2002). Indonesia is a member in the three international standard-setting bodies explicitly referred to in the SPS Agreement: the Codex Alimentarius, the International Office for Epizootics, and the International Plant Protection Convention (G/SPS/GEN/49/Rev.4, 30 April 2002).  ϲʹ documents G/SPS/GEN/295/Add.6, 13 February 2002 and G/SPS/R/27, 2 August 2002.  ϲʹ document G/SPS/GEN/204/REV.2, 15 February 2002.  National Standardization Agency of Indonesia (BSN) (undated).  Government Regulation No. 69/1999 on Food Labelling and Advertisement.  Government Regulation No. 69/1999 on Food Labelling and Advertisement (ϲʹ document G/SPS/N/IDN/9, 26 July 2000).  Dun & Bradstreet, Inc. (2001), p.635.  ϲʹ documents G/TBT/Notif.00/478, 29 September 2000 and G/TBT/Notif.00/383, 5September2000.  Approved exporters are considered the companies or individuals already recognized by the Ministry of Industry and Trade as exporters of certain goods subject to the provisions in force (Decree of the Minister of Industry and Trade No. 182/MPP/Kep/4/1998, 20 April 1998).  ASEAN (undated).  APEC (2001).  Joint Decree of the Minister of Forestry and the Minister of Industry and Trade No. 1132/KPTS/-III/2001 and No. 292/MPP/Kep/10/01 concerning Export Termination of Round Wood and Wood Chips.  Decree of the Minister of Industry and Trade No. 57/MPP/Kep/I/2002, 31 January 2002 on the amendment to attachment to decree of the Minister of Industry and Trade No. 558/MMP/KEP/12/1998 on general provisions in the export field as already amended for several times and the latest by decree of the Minister of Industry and Trade No. 294/MPP/Kep/10/2001 (available at: http://www.dprin.go.id/regulasi1/ english/ inat2002.asp [25 March 2002]). APEC Electronic Individual Action Plan (e-IAP) (2001).  Presidential Decree No. 33/02; Joint Decree of the Minister of Industry and Trade No.89/MPP/KEP/2/2002, Minister of Marine and Fishery No. SKB.07/Men/2002 and State Minister for the Environment No. 01/MENLH/2/2002, 14February 2002.  ϲʹϠ(1999).  ϲʹϠ(1999).  The degree of utilization (share of in-quota exports to total quota level) of MFA-related quotas has varied depending on the market and items. In 2002, the situation in the different markets was: for the UnitedStates utilization exceedeed 60% for most item categories (several at 100%); Canada exceeded 60% for less than half of product categories (up to 92%); EU exceeded 60% for virtually all product categories (up to 95%) and Turkey exceeded 60% for half of the product categories exceeding 60% (up to 90%). During the period under review, these quota-restricted markets have been the destination of up to 46.1% of exports of the product categories concerned.  Decree of the Minister of Industry and Trade No. 57/MPP/Kep/I/2002, 31 January 2002 on the amendment to attachment to decree of the Minister of Industry and Trade No. 558/MMP/KEP/12/1998 on general provisions in the export field as already amended several times, the latest of which by decree of the Minister of Industry and Trade No. 294/MPP/Kep/10/2001. APEC (2001).  Decrees of the Minister of Finance No. 30/KMK.01/1999, 29 January 1999, No.567/KMK.017/1999, 31 December 1999, and No. 66/KMK.017/2001, 9February 2001.  The export tax formula is: export tax rate X export check price (HPE) X number of units of goods X exchange rate.  Decree of the Minister of Industry and Trade No. 641/MPP/KEP/9/2002, 23 September 2002.  According to notifications submitted to the ϲʹ between 1998 and June 2002, five countervailing actions have been taken against Indonesian exports of certain polyester (fibres, yarn) and steel (plate, rolled flat) products, by Canada, the EU, and the United States.  Schedule XXI-Indonesia, Part IV Section II; APEC Secretariat online information. Available at: http://www.apec-iap.org/document/INA_2001_IAP.htm [28 March 2002].  The establishment of new free-trade zones (Sabang, Dumai, Batam, Bintan, Karimun, Natuna, Bitung, Morotai, and Biak) was under consideration in 2002.  Partnership for Business Competition (2002).  U.S. Embassy Jakarta (1999).  Regulation No. 37/1999, 25 May 1999, regarding state capital participation of the Government of the Republic of Indonesia for establishment of the limited liability company (Persero) in the banking field.  The amount of financing depends on its working capital needs within one trade cycle, with a maximum of 90% from the L/C or total sales contract. The maximum period of repayment is 360 days, and financing is available in rupiah or U.S. dollars. The guarantee fee is 0.25% of the amount of L/C opened, and there is a confirming fee charged by the lending bank, a maximum of 2% per annum. The interest rate on loans guaranteed by BEI is based on its prime lending rate, and the interest rate applied to the exporter by the lending bank is the BEI lending rate plus margin, for both rupiah and U.S. dollar loans.  Economist Intelligence Unit (2002), p. 54.  ASEI also offers credit guarantee against risks of payment default by the exporter on credit granted by banks or other financial institutions, and a guarantee for credit beyond the maximum legal lending limit.  ASEI is classified as a general insurance company subject to general insurance laws and regulations.  Customs bonds are a guarantee against the nullification (non-payment) of the import tax on goods to be re-exported. In case of failure to re-export, the Government (through the Director-General of Customs and Excise) may liquidate the bond corresponding to the payment of the import tax due.  Economist Intelligence Unit (2002), p. 53.  Special VAT rates are levied on building service charges (4% of invoice value); travel agents services (1% of invoice value); the sale of cigarettes (8.4% of invoice value); courier services (1%); total sales by retailers (10% of the sales price); self-building (4% of total costs); and factoring services (0.5% of the total fee).  Goods exempt from VAT include: agricultural, plantation and forestry products, harvested, picked or tapped directly from the source (such as grain, palm oil, and rubber); animal-husbandry products; hunting/catching or farming livestock; fishery products; mining and drilling products gathered directly (such as oil and salt); basic necessities (such as rice and iodised salt); food and drink served in hotels and restaurants; shares, bonds and other commercial paper; electricity, except for luxury housing estates; and pipe water. Services exempt from VAT are: health care; orphanages; funerary; postal; banking; insurance and financial; religious; educational; non-commercial arts and broadcasting; public transport; manpower; hotel; and telecommunications.  Rates are set at: 10% (soft drinks, cosmetics, televisions, radios and tapes, air-conditioning equipment); 20% (carpets, sanitary goods, "luxury" home appliances like washing machines and air conditioners, and musical instruments); 30% ( boats, golf and skiing equipment); 40% (alcoholic beverages, leather products, wool and silk carpets, gold-made items, footwear, furniture, and porcelain), 50% (aircraft, helicopters, etc.); and 75% (other alcoholic beverages). Government Regulation No. 145/2000 as amended by Government Regulation No. 7/2002 and Government Regulation No. 6/2003, 1 February 2003.  Law No. 18/2000 on Value Added Tax and Luxury Sales Tax.  ϲʹ document WT/DS54/R, WT/DS55/R, WT/DS59/R, WT/DS64/R, 2 July 1998. Government Regulation No. 14/1998 and Circular Letter of Director General of Tax No. SE-02/PJ.5/1998.  Indonesia applied a final tax (payable on certain transactions) in the shipping, airline, and foreign gas and drilling industries. This tax has been extended to other forms of income, including rent, interest on bank deposits, interest/discounts on traded bonds, proceeds on listed company share disposals, property disposals by real-estate developers, individuals, and construction contracting firms, and income derived from planning, supervision, and consulting services.  Partnership for Business Competition (2002).  U.S. Embassy Jakarta (2001b).  Economist Intelligence Unit (2002), p. 28.  The 1996 legislation (Government Regulation No. 45/1996), which was seemingly applied in a discretionary manner, is discussed in ϲʹϠ(1999). Economist Intelligence Unit (2002), p. 28.  Investment Cooperating Board (2001).  The Jakarta Post, 11 January 2003.  USTR (2002). ϲʹϠdocuments G/AG/N/IDN/26, 5October 2001 and G/AG/N/IDN/26/Corr.1, 27November2001.  Decrees Keppres No. 10/1999, 1 February 1999, No. 45/2001, 1 April 2001, and No. 9/2002, 16January 2002.  Economist Intelligence Unit (2002), p. 32.  See Competition Indonesia online information at: http://english.pbc.or.id/.  Law No. 5/1999 on Prohibition of Monopoly Practice and Unhealthy Business Competition, 5March 1999.  Partnership for Business Competition (2002).  Partnership for Business Competition (2002).  Prior to the LCP, several laws contained provisions relating to consumer protection (e.g. Law No.2/1966 regarding Hygiene, Law No. 15/1985 regarding Electricity, Law No. 23/1992 regarding Health, Law No. 7/1996 regarding Food, and Law No. 10/1998 regarding Amendment of Law No. 7/1992 regarding Banking). Asia Pacific Consumer Law (undated).  Asia Pacific Consumer Law (undated).  Law No. 19/2002 effective as from 29 July 2002. See Ministry of Industry and Trade online information. Available at: http://www.dprin.go.id/default_e.htm [10 December 2002].  Indonesia is also a party to the Convention Establishing the World Intellectual Property Organization (as from 1979, ratified in 1997), the Paris Convention for the Protection of Industrial Property (as from 1950, ratified in 1997), the Berne Convention for the Protection of Literary and Artistic Works (ratified in 1997); Hague Agreement Concerning the International Deposit of Industrial Designs (as from 1950, ratified in 1986); the Patent Cooperation Treaty (ratified in 1997); and Trade Mark Law Treaty (ratified in 1997). Information provided by the Indonesian authorities; and WIPO online information. Available at: http://www.wipo.int/treaties/general/parties.html#1 [9 December 2002].  ϲʹ document IP/C/W/270, 31 May 2001.  The 2001 legislation covers: Law No. 14 on Patents (replaced the Patent Law of 1989 as amended in 1997); Law No. 15 on Marks (replaced the Marks Law of 1992 as amended in 1997); and Law No. 19 on Copyrights (replaced the Copyrights Law No. 12 of 1997 regarding the amendment of Law No. 6/1982 on Copyrights as amended by Law No. 7/1987).  Indonesia's replies (including statistics) are contained in ϲʹ document IP/Q/IDN//1, IP/Q2/IDN/1, IP/Q3/IDN/1, IP/Q4/IDN/1, 4 August 2000.  Notwithstanding these efforts, Indonesia has remained on the "priority watch list" since 1998 (except for the year 2000, "watch list" only) under "Special 301" of the amended 1974 (1988) Trade Act of the United States (USTR, National Trade Estimate reports 1999-2002). With the assistance of the United Nations Development Programme (UNDP), WIPO, IP Australia and the Japan Patent Office (JPO), Indonesia has conducted a series of public information and awareness seminars in almost all major cities, e.g. Jakarta, Surabaya, Semarang, Medan, Ujung Pandang, Bandung, Denpasar, Yogyakarta, Padang, and Manado.  ϲʹ document IP/Q/IDN//1, IP/Q2/IDN/1, IP/Q3/IDN/1, IP/Q4/IDN/1, 4 August 2000.  Economist Intelligence Unit (2002), p. 25.  Reportedly, cases brought in court are seriously backlogged due to inefficient procedures, the significant documentation needed to support prosecutions, unfamiliarity with IPR matters, and the regular non-availability of judges, witnesses, or defendants. In 2000, out of 208 cases brought to the courts, only two were decided and 206cases were pending (International Intellectual Property Alliance, 2002).  International Intellectual Property Alliance (2002).  This new law revised/amended Patent Law No. 13 of 1997.  Economist Intelligence Unit (2002), p. 29.  Economist Intelligence Unit (2002), p. 25.  Law No. 29/2000 on the Protection of Plant Varieties is administered by the Department of Agriculture.  UPOV (2003).  Mark Law No. 15/2001 amendment to the Mark Law No. 14 of 1997.  Reportedly, several international rights holders have lost rights to their marks to local registrants, because of the complicated and bureaucratic process for de-registration. Economist Intelligence Unit (2002), pp. 25-26 and 28-29; Investment Indonesia Online (2002).  Economist Intelligence Unit (2002), p. 26.  Previously cancellation actions were difficult to implement and requests had to be lodged within five years of the trademark registration date.  Economist Intelligence Unit (2002), p. 27.  Law No. 31/2000; Investment Indonesia Online (2002), Industrial Design.  Law No. 30/2000.  More information may be found in Investment Indonesia Online (2002), Trade Secret.  Law No. 19/2002, 29 July 2002 [Online]. Available at: http://www.dprin.go.id/regulasi/english/ 2002/07/LAW_19.HTM [11 December 2002].  According to statements by the Director-General of Intellectual Property Rights (Ministry of Justice and Human Rights), following agreement between the authorities and software developers, the new regulations are to allow the public sector institutions to escape punishment stipulated by the law, given their role in society (The Jakarta Post, 13 February 2003).  Investment Indonesia Online (2002).  International Intellectual Property Alliance (2002), p. 150.  Reportedly, optical media production capacity expanded alarmingly in 2001, to at least 70 illicit production lines from fewer than a dozen a year earlier; this capacity seems far in excess of Indonesia's domestic demand. This may be the outcome of the intensification of the fight against copyright infringement, audio and video piracy elsewhere in the region, with IPR pirates finding refuge in Indonesia (International Intellectual Property Alliance (2002).  Business Software Alliance (2002). The Business Software Alliance (BSA) represents leading U.S. software and computer technology companies (e.g. Compaq, Digital, IBM, Intel, Apple, Microsoft, Novell, Lotus).  These actions had to be carried out by extra police units, due to riots that broke out during the first round of investigations. Of the 1 million pirate CDs seized, 80% were international and local music, and 20% were movies. Documentary records covering sales and deliveries revealed that on average the 28 retailers raided sold over 280,000 pirate optical discs per week to East and West Java, Timor, Sulawasi, Kalimantan, Irian Jaya, and Lombock (International Intellectual Property Alliance, 2002).  It now consists mainly of: Law No. 23 of 1997 regarding Environmental Management; Law No. 5 of 1990 regarding Conservation of Natural Resources; GR No. 18 of 1999 regarding the Management of the Waste of Hazardous & Toxic Materials; GR No. 19 of 1999 regarding the Control of Marine Pollution; GRNo.20 of 1999 regarding the Control of Water Pollution; GR No. 27 of 1999 regarding Analysis of Environment Impacts; GR No. 41 of 1999 regarding the Control of Air Pollution; GR No. 80 of 1999 regarding Area Ready for Construction and Independent Environment Ready for Construction; GR No. 54 of 2000 regarding Institution for Providing Service in Settling Environmental Disputes out of Court; Presidential Decree No. 10 of 2000 regarding the Agency Controlling Environmental Impacts. British Embassy in Indonesia (2001a).  Decree 17/2001 of May 2001.  This programme contains written guidelines for specific industries, such as textiles, electroplating, tapioca, tanning, pulp and paper, palm oil, and gold mining.  ϲʹ document WT/CTE/W/106, 11 February 1999. WT/TPR/S/117 Trade Policy Review Page  PAGE 32 Indonesia WT/TPR/S/117 Page  PAGE 33 Page III. 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Available at http://www.dfat.gov.au/publications/indonesia/index.html [21 October 2002].<($`rr  0  @ ]l "<#Agri-industry & consumer goods 33< " Nrr  0   @j  ]  < Energy 3< 3 Nrr  0\  @ 9 ]\  < Tourism 10< @ Nrr  0  @+ n ]d  <Strategic industries 13< | Nrr  0  @ c  ]  <Telecommunications & media 4<  Nrr   0L  @g6 L } ] L  <Financial services 19< r Nrr   0  @[ ] \   < Logistics 32< C Nrr   0  @p]   < Mining 4< 5 Nrr   0<  @] <  %<&Construction & building materials 18< % Nrr   0  @l ] T  !<"Forestry, paper & wood products 8< ! Nrr  0  @,+  ]  ;<<Note: SOEs allocation by sector as found at the source.< *;zP3dU}  3Q: MFN 1997Q ; Q ; Q3_ O   f1 ) i @zatؑ6J"+zca( UUPlaid MM<43_ O   f1 ) i @zatؑ6J"+zca( UUPlaid MM<4 3_ O  fO G i*@za$E2fY_,I!)( >|Wide upward diagonal MM<43_ O  f; 3 i@za|T>( wwwwwwSmall grid MM<43_ O   f5 - i@zaP0%Ÿ0귢o'%( {Shingle MM<43_ O   fC ; i@za 1=<*I؜U( wwwwwwwwLight vertical MM<43_ O   fG ? i"@zaLa]0|r( }}Outlined diamond MM<43_ O  fS K i.@za|ka@O+8k( |>Wide downward diagonal MM<43_ O  f1 ) i @zaԑ]>]F( wwWeave MM<43_ O   fC ; i@za",Z[Dq0( ~Diagonal brick MM<43_ O  f+ # i@zaB]"I<9k_( 5% MM<4E4D$% M 3O&Q4$% M 3O&Q4FA:3OD3" 44% MP3OQ'44 eI Agri-industry and consumer goodsEnergyTourism1Strategic industiresATelecommunications and media-Financial serivces LogisticsMiningO#Construction and building materialsM "Forestry , paper and wood productse@@@$@*@@3@@@@2@ @e>  Chart1 ɀ  dMbP?_*+%"??U} + T0  MFN 1997) Agri-industry and consumer goods~ @@Energy~ @Tourism~ $@Strategic industires~ *@%Telecommunications and media~ @Financial serivces~ 3@ Logistics~ @@Mining~ @, #Construction and building materials~ 2@+ "Forestry , paper and wood products~  @;!"/7-$!>PH 0(  >   Sheet1 ɀ  dMbP?_*+%"??U> Sheet2 ɀ  dMbP?_*+%"??U> Sheet3 SummaryInformation(DocumentSummaryInformation8_1113639269 F d FOle  ՜.+,D՜.+,H PXl t|  OMC - ϲʹt11 Sheet1Sheet2Sheet3Chart1  WorksheetsCharts 6> _PID_GUIDAN{D7300509-1402-11D7-BE9F-00062970E56E} FMicrosoft Excel ChartBiff8Excel.Sheet.89qOh+'0HPdt  Belkhodja PoissonMicrosoft Excel@A_@_G@`ICompObj!bObjInfo#WorkbookxSummaryInformation($ ɀBa=<=-}7!:X1!Arial1!Arial1!Arial1!Arial1!Arial1!Arial1!Arial1!Arial1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1!Arial1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman"$"\ #,##0;"$"\ \-#,##0!"$"\ #,##0;[Red]"$"\ \-#,##0""$"\ #,##0.00;"$"\ \-#,##0.00'""$"\ #,##0.00;[Red]"$"\ \-#,##0.00=*8_ "$"\ * #,##0_ ;_ "$"\ * \-#,##0_ ;_ "$"\ * "-"_ ;_ @_ .))_ * #,##0_ ;_ * \-#,##0_ ;_ * "-"_ ;_ @_ E,@_ "$"\ * #,##0.00_ ;_ "$"\ * \-#,##0.00_ ;_ "$"\ * "-"??_ ;_ @_ 6+1_ * #,##0.00_ ;_ * \-#,##0.00_ ;_ * "-"??_ ;_ @_ "$"#,##0_);\("$"#,##0\)!"$"#,##0_);[Red]\("$"#,##0\)""$"#,##0.00_);\("$"#,##0.00\)'""$"#,##0.00_);[Red]\("$"#,##0.00\)72_("$"* #,##0_);_("$"* \(#,##0\);_("$"* "-"_);_(@_).)_(* #,##0_);_(* \(#,##0\);_(* "-"_);_(@_)?:_("$"* #,##0.00_);_("$"* \(#,##0.00\);_("$"* "-"??_);_(@_)61_(* #,##0.00_);_(* \(#,##0.00\);_(* "-"??_);_(@_)#,##0.0_);\(#,##0.0\) 0.0_)0.0                + ) , *    #   #            #  # #   (  ! # Chart1UdSheet1,1Y  = 3   $$r 1=<*I؜Uiza 1=<*I؜U( wwwwwwww$rLa]0|rizaLa]0|r( }}rԑ]>]Fizaԑ]>]F( wwrB]"I<9k_izaB]"I<9k_(  0e0e    A@ 8c8c     ?A)BCD|E||@  -First stage of processingisic 31Food, beverages and tobaccoisic 32Textiles and leatherisic 33Wood and furnitureisic 34Paper, printing and publishingisic 35 Chemicalsisic 36isic 37 Basic metalIsic 38isic 39OtherSemi-processedFully processedPaper, printing and publishing 'Fabricated metal products and machineryNon-metallic mineral products Data for Chart III.4n.a. xh``T0n`LtwXww``T04mw`T04Hxwn`T04`   wip0OLwH^0T00w` nyw`46nT+DOw@46+d6q4w4+8uwCnMwNwH4]F( wwWeave MM<4E4  3QQ ;Q ;Q3_ O  f+ # i@zaB]"I<9k_( 5% MM<4E4  3QQ ;Q ;Q3_  NM  ##d4E4D$% M 3O& Q4$% M 3O& Q4FA| 3OG3 b#M&43*4@N#M4523 O  43" 43" 44% T MQ2Z3O& Q  n.a.'4% MQ2Z3OQ'4% MQ2Z3OQ'4% MQ2Z3OQ'4% MQ2Z3OQ'4% MQ2Z3OQ'4% MQ2Z3OQ'4% MQ2Z3OQ'4% MQ2Z3OQ'4% MQ2Z3OQ'44 e?Food, beverages and tobacco?Food, beverages and tobacco?Food, beverages and tobacco?Food, beverages and tobacco1Textiles and leather1Textiles and leather1Textiles and leather1Textiles and leather-Wood and furniture-Wood and furniture-Wood and furniture-Wood and furnitureGPaper, printing and publishing GPaper, printing and publishing GPaper, printing and publishing GPaper, printing and publishing  Chemicals Chemicals Chemicals ChemicalsENon-metallic mineral products ENon-metallic mineral products ENon-metallic mineral products ENon-metallic mineral products  Basic metal Basic metal Basic metal Basic metalW'Fabricated metal products and machineryW'Fabricated metal products and machineryW'Fabricated metal products and machineryW'Fabricated metal products and machineryOtherOtherOtherOthere @@*@@@ @ffffff(@@@333333?333333#@@@333333@@@ffffff@@ffffff@@333333@@@333333@333333@$@@@ffffff@@@@$@@e rr  00  @, ]03 E<FChart III.4 Tariff escalation by 2-digit ISIC industry, 1998 and 2002<E N|  BNMM?I"] 04  ɀ&A Page &PMN\\MARCOPOLO4\1047-C1ps XXA4 9''''" dX??3` $ ` $  ` % ` $R0.( 3f3f3 vB @ <D?OO]`x7xx  6?Y7d ] 8 -<.Average applied rate in manufacturing (10.0%)<- N3d 23 M NM4  3QQ ; Q ; Q3_ O   fG ? i"@zaLa]0|r( }}Outlined diamond MM< 4E4  3QQ ; Q ; Q3_ O  f1 ) i @zaԑ]>]F( wwWeave MM<4E4  3QQ ; Q ; Q3_ O  f+ # i@zaB]"I<9k_( 5% MM<4E4  3QQ ; Q ; Q3_  NM  ##d4E4D$% M 3O& Q4$% M 3O& Q4FAa 3O 3 b#M&43*4@N#M4523 O  43" 43" 44%  M5Z3O& Q  n.a.'4% M5Z3OQ'4% M5Z3OQ'4% M5Z3OQ'4% M5Z3OQ'4% M5Z3OQ'4% M5Z3OQ'4% M5Z3OQ'4% M5Z3OQ'4% M5Z3OQ'44 e?Food, beverages and tobacco?Food, beverages and tobacco?Food, beverages and tobacco?Food, beverages and tobacco1Textiles and leather1Textiles and leather1Textiles and leather1Textiles and leather-Wood and furniture-Wood and furniture-Wood and furniture-Wood and furnitureEPaper, printing and publishingEPaper, printing and publishingEPaper, printing and publishingEPaper, printing and publishing Chemicals Chemicals Chemicals ChemicalsENon-metallic mineral products ENon-metallic mineral products ENon-metallic mineral products ENon-metallic mineral products  Basic metal Basic metal Basic metal Basic metalW'Fabricated metal products and machineryW'Fabricated metal products and machineryW'Fabricated metal products and machineryW'Fabricated metal products and machineryOtherOtherOtherOthereffffff@@+@$@ffffff@333333&@3333331@$@@@*@$@ @ffffff@@$@@333333@"@$@333333@333333@$@@!@)@$@333333@$@$@ffffff @!@+@$@e xx   64  @ 2:] 48 2<Not applicable. Calculations for 2002 exclude 12 lines carrying specific rates. ϲʹ Secretariat calculations, based on data provided by the Australian authorities.<_anxx * 6? 7J]*p9 2 <n.a. Note: Source:< B -xx - 6  @ Lw]-D: < Per cent< .n^  w8Mb{ 9# ~ ] 9`: 0   A"?Outlined diamond-D :ixg_ z]0`; 1 `A?5%7߂x:y]1`= 2 T` @?@2 x:%az]2`P> <First stage of processing<~ 3 T @?u;w8M jz]3? <Fully processed<Q 4  ~A @?Light vertical w@bLb{]4`@ 5  l A ?Weaveq#RzxE'y]5`$ 6 T @?m([wQ80&{]6l <Semi-processed<Rxx 8 6P  @0L]8P < Per cent< .xx K 6?  j ]K ,<-Average applied rate in manufacturing (7.5%)<, Nf^ O c $? ^1]O`8~~ P <? * 0]P <1998< f^ T c $?z]T`t#~~ U <h ? J ]Uh $ <2002< xpB X@ 6D? m ]X`$zP3dD$% M 3O&Q4$% M 3O&Q4FA3O3 b#M43*#M! M43" 444eee> ` ɀ  dMbP?_*+%MN\\MARCOPOLO9\1047-C1ps XXA4 9''''" PX??U} } m#} m} }  4T0@@ @ @ @   T0T0T!00Data for Chart III.4$&!!!!!!!~ 8@$!!!!!!! "First stage of processing(Semi-processed(Fully processed""!!!!!!!isic 31$&Food, beverages and tobaccoy@{@@"$@"!!!!!!!isic 32&Textiles and leather@X@@"$@"!!!!!!!isic 33&Wood and furniture@k@@"$@" !!!!!!!isic 34''Paper, printing and publishing @0@@#$@$ !!!!!!!isic 35& Chemicals~@@@@$@ !!!!!!! isic 36' (Non-metallic mineral products  `x@`@$@  !!!!!!! isic 37 & Basic metal @!@)@$@  !!!!!!! Isic 380 ''Fabricated metal products and machinery )n.a.  @$@$@  !!!!!!! isic 39 &Other @@@$@ & &!!!!!!~ H@$!!!!!! 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L---'--- I  $ 4 I ^ I 4---'--- v  $ a v w v a---'--- 0;  $; P 0; E& 0; ---'--- l  $ W l  l W---'---   $     ---'--- W  $ B W l W B---'--- ---'--- ---'---  ---'---  ---'---  ---'---    2 N0$ 2 N5$ 2 1*10$$ 2 *15$$ 2 *20$$ 2 ,*25$$ 2 *30$$ 2 *35$$ 2 (*40$$ 2 |*45$$ 2 *50$$---'---  ---'---    2 01$$ 2 02$$ 2 603$$ 2 04$$ 2 05$$ 2 B06$$ 2 07$$ 2 08$$ 2 O09$$ 2 10$$ 2 11$$ 2 [12$$ 2  13$$ 2  14$$ 2 h 15$$ 2  16$$ 2  17$$ 2 t 18$$ 2 # 19$$ 2  20$$ 2 21$$---'---  ---'---  -- -4--as!4---- -X])ITimes New Roman|wgwE  -Times New Roman|wgwF  - ---- - 2 =I Chart III.2H82,!'''2|2 INAverage applied MFN and final bound tariff rates, by HS section, 1998 and 2002H2,,22,288,8^=H288!8282888!2,!!,2!,'82N8',,!2822222882222'  ----  !---- -  3Times New Roman|wgwB ] - Times New Roman|wgwC ] - - - - - -  2  3Note:6&!2 y 3- 2 3Source*&*!!- 2 : '  ----fE---- -TVTimes New Roman|wgw3  - - -  %2 Average applied MFN 0!!!!%%%?)02 O! 1998 (9.5%)!!!!!!C'  ----  r---- -  - - - - - - - - - -  92 !01 Live animals & prod. !!,!!%8!8%!%*2 02 Vegetable products!!0!!%%!%%(2 b 03 Fats & oils !!)!8!+2 04 Prepared food, etc.!!)%!%!!%'2  05 Mineral products!!?%!%!%%-2 j 06 Chemicals & products!!0%8!8%!%%'  ----  D---- -  U- - - - - - - - - - - -  '2 U07 Plastic & rubber!!)!8%%%"2 U08 Hides & skins!!4%8%%%2 b U09 Wood & articles!!C!!%8!(2 U10 Pulp, paper, etc.!!)%%%!%+2  U11 Textiles & articles!!,!8!*2 j U12 Footwear, headgears!!)!!0!%!%!!'  ---- ---- - ~ *- - - - - - - - - - - -  *2 *13 Articles of stoness!!0!!%.2 *14 Precious stones, etc.!!)!%!%.2 b *15 Base metals and prod.!!,!8!!%%%!%2 *16 Machinery!!?!%%!+2  *17 Transport equipment!!,!%%!%%%8%-2 j *18 Precision instrument.!!)!%%%8%'  ----o Z ---- -f H - - - - - -  (2 19 Arms & ammunition!!088!88%%!%-2 20 Miscellaneous manuf..!!?!%!%8!%%*2 b 21 Works of art, etc.!!C!%!!'  --- -- !!- - -&X- -%- - $S-- &------ -- - -  %2 Average applied MFN 0!!!!%%%?)02 9 2002 (7.2%)!!!!!!C'  --&i- -%DDz- - $#xDdx-- &--C!---- -K4Times New Roman|wgw6  - -  2 \4Per cent3%%%%.'  --&  --%  -- $   --&--1 ---- - !- - - -  2 5 Average bound0!!!%!%%%2 &  (37.6%)!!!C'  ----&--&?p&-- -B( ww-- !@yW- ---&--YW--&-- &---- - .- -  2 TMFN 1998?)0!!!!'  --& Q -- $ U l  l--&--k& ---- -Y. - -  2 U Bound,!%%%'  --&0 @ &-- -B( -- !?xXH - ---&-- XH --&-- & ---- - . - -  2 T MFN 2002?)0!!!!'  ---- Y W---- - F i- - - - - -  2  inCalculations for 2002 exclude 12 lines carrying specific duties. Only HS sections 02, 03, 08, 09 and 11 are 6&!*&&*&!&&&&!&!**!&&*!!&!!&*&*!!!**!:*&:*!!&*&&&&&&&&&**&&&!!X2 y i6fully bound. HS sections 19 and 21 are fully unbound.*&*&***:*!!&*&&&**&&&!!*&***&***~2 iOSecretariat calculations, based on data provided by the Indonesian authorities.*!!!!&!&!&!*&&**&!*&**&&*!&&*!**&*!**&*!&*&**&!!'  -- -'   '      'ObjInfo#&DWorkbook=!SummaryInformation(%'EDocumentSummaryInformation8I \pPoisson Ba=< =A(%<X@"1*! CG Times (W1)1*! CG Times (W1)1*! CG Times (W1)1*! CG Times (W1)1*! CG Times (W1)1!Arial1!Arial1.!Times New Roman1!Arial1!Arial1.!Times New Roman1.!Times New Roman1.!Times New Roman1*! CG Times (W1)1.!Times New Roman1 !Palatino1!Geneva1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1*! CG Times (W1)1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1!Arial1!Arial1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman1.!Times New Roman"$"\ #,##0;"$"\ \-#,##0!"$"\ #,##0;[Red]"$"\ \-#,##0""$"\ #,##0.00;"$"\ \-#,##0.00'""$"\ #,##0.00;[Red]"$"\ \-#,##0.00=*8_ "$"\ * #,##0_ ;_ "$"\ * \-#,##0_ ;_ "$"\ * "-"_ ;_ @_ .))_ * #,##0_ ;_ * \-#,##0_ ;_ * "-"_ ;_ @_ E,@_ "$"\ * #,##0.00_ ;_ "$"\ * \-#,##0.00_ ;_ "$"\ * "-"??_ ;_ @_ 6+1_ * #,##0.00_ ;_ * \-#,##0.00_ ;_ * "-"??_ ;_ @_ "$"#,##0_);\("$"#,##0\)!"$"#,##0_);[Red]\("$"#,##0\)""$"#,##0.00_);\("$"#,##0.00\)'""$"#,##0.00_);[Red]\("$"#,##0.00\)72_("$"* #,##0_);_("$"* \(#,##0\);_("$"* "-"_);_(@_).)_(* #,##0_);_(* \(#,##0\);_(* "-"_);_(@_)?:_("$"* #,##0.00_);_("$"* \(#,##0.00\);_("$"* "-"??_);_(@_)61_(* #,##0.00_);_(* \(#,##0.00\);_(* "-"??_);_(@_)"$"\ #,##0;\-"$"\ #,##0!"$"\ #,##0;[Red]\-"$"\ #,##0""$"\ #,##0.00;\-"$"\ #,##0.00'""$"\ #,##0.00;[Red]\-"$"\ #,##0.00;6_-"$"\ * #,##0_-;\-"$"\ * #,##0_-;_-"$"\ * "-"_-;_-@_-,'_-* #,##0_-;\-* #,##0_-;_-* "-"_-;_-@_-C>_-"$"\ * #,##0.00_-;\-"$"\ * #,##0.00_-;_-"$"\ * "-"??_-;_-@_-4/_-* #,##0.00_-;\-* #,##0.00_-;_-* "-"??_-;_-@_- "Fr."\ #,##0;"Fr."\ \-#,##0% "Fr."\ #,##0;[Red]"Fr."\ \-#,##0&!"Fr."\ #,##0.00;"Fr."\ \-#,##0.00+&"Fr."\ #,##0.00;[Red]"Fr."\ \-#,##0.00C>_ "Fr."\ * #,##0_ ;_ "Fr."\ * \-#,##0_ ;_ "Fr."\ * "-"_ ;_ @_ KF_ "Fr."\ * #,##0.00_ ;_ "Fr."\ * \-#,##0.00_ ;_ "Fr."\ * "-"??_ ;_ @_ 0.0 0.00000 0.0000 0.000                + )          !  ! " "  !    ! " " "\   (@  "8@ " "   !8 "< "8 8 ``i̜̙3f3333f3ffff333ff333f33f33BBB\`$!Chart1R Chart III.2Sheet1,<=  7[.&/1111111!1111444444444444444444444444)"(((&&//0000000000///////-----M/*rLa]0|rizaLa]0|r( }}rB]"I<9k_izaB]"I<9k_( 3 R0e0e    A@ A5% 8c8c     ?1 d0u0@Ty2 NP'p<'pA)BCD|E||@  010203040506070809Data for Chart III.2 Final boundavg Final boundavg 1998avg 2002  t>46"@w`T0@#k#LtwXww`T04"mw`T04"Dxw@#`T04"$#8%#j ,4"$#8%#r ip0<~~<+"Ow4"6"OLwH<T0,t00m 7wzm00n E000nnp߿0n<pt0lL4Pyw4"6"@#e#Ow;4"6"e#6"q4we#\8uw4"$#8%#w6"j m `T0 6 x|w`T0$#w?wwcVwx1#w`T0`T0##d{0Æ0x1#`T0`T0ŕ0`T0`T08)0`T0`T0y0p%0B` 0Q` 0D  MN\\MARCOPOLO4\1106-C1ps XXA4 9''''" dX??3` 0` 0` %` $ ` $ ` $ !` $ "` $'#` $#$` $%` $ &` $'  ( T x  6M  @n]MQ [<\Chart III.2 Average applied MFN and final bound tariff rates, by HS section, 1998 and 2002 <YZ [w Rxx  6`M  @ ]`MPR  <Note: Source: < !b"b !,banxx  6M  @0Pav]MR $!<"Average applied MFN 1998 (9.5%)<#X! Ntd 49XZnG 3 S ] `S  D\J @@Text 549ƢE]\JtT <01 Live animals & prod. 02 Vegetable products 03 Fats & oils 04 Prepared food, etc. 05 Mineral products 06 Chemicals & products< RX N  BJ@?Y49-E]JU <07 Plastic & rubber 08 Hides & skins 09 Wood & articles 10 Pulp, paper, etc. 11 Textiles & articles 12 Footwear, headgear<$mX   BT@?/49A4DE]TdV <13 Articles of stones 14 Precious stones, etc. 15 Base metals and prod. 16 Machinery 17 Transport equipment 18 Precision instrument<$Xa  BT@? E49XZnG]TW H<I19 Arms & ammunition 20 Miscellaneous manuf. 21 Works of art, etc.<$9XH ~v   <@?] `X|B   BD?KC] `Yxx   6xU  @K] xUZ $!<"Average applied MFN 2002 (7.2%)<#X! N|B   BD?EjE] `<[xx   6U  @M] U\ < Per cent<%&m|B  BD?  ]`\xx  6hV  @L ]hV$^ $<Average bound (37.6%)<&X Nn*^  } r:N # R] `|^jb  s * @ } C6.]`P_l\ >N #  }  9] `.  dA"@?Outlined diamond>I ]`_vv  6W  @M N]W@a "< MFN 1998<'-X NlR\ 8)} 9N # #*} r:N] `aphB  0@?8) *8 ]`bvv  6lW  @+} 9N]lWdc "<Bound<&X Nlj\ ;-} 8)MD # &W} #*MD] ` d  HA@?5%;- >]`dvv  6W  @I} 8)MD]W(f "< MFN 2002<'-X Nxx  6 X  @= ] Xf <Calculations for 2002 exclude 12 lines carrying specific duties. Only HS sections 02, 03, 08, 09 and 11 are fully bound. HS sections 19 and 21 are fully unbound. Secretariat calculations, based on data provided by the Indonesian authorities.<!banп352d 3QQ ;Q ;Q3_ O   fG ? i"@zaLa]0|r( }}Outlined diamond MM<4E4 3QQ ;Q ;Q3_ O  f+ # i@zaB]"I<9k_( 5% d4E4 3QQ ;Q ;Q3_ M   d4E4 3QQ ;QQ3_  NM   d4E4 3QQ ;QQ3_  NM  $$d4E4 3QQ ;QQ3_  NM  %%d4E4D$% M 3O&Q4$% M 3O&Q4FA3O.3 bM&43*I@N#M&4523 M NM43" 43" 44% MpP3OQ'44e 01 01 01 02 02 02 03 03 03 04 04 04 05 05 05 06 06 06 07 07 07 08 08 08 09 09 09 10 10 10 11 11 11 12 12 12 13 13 13 14 14 14 15 15 15 16 16 16 17 17 17 18 18 18 19 19 19 20 20 20 21 21 21e@@G@#@@B@@333333@fffff&F@#@@B@@ffffff@33333sD@#@@B@1@0@J@#@@B@333333@ffffff@33333C@#@@B@@@33333B@#@@B@ffffff(@!@fffffC@#@@B@333333@ffffff@C@#@@B@333333 @@D@#@@B@ @ @ fffffC@ #@ @ B@ ,@ $@ ffffff=@ #@ @ B@ 0@ (@ 33333C@ #@ @ B@ 333333@ @ fffffC@ #@ @ B@ %@ @ D@ #@ @ B@#@ @YC@#@@B@@ffffff@fffff@@#@@B@C@L1@C@#@@B@@@33333A@#@@B@"@333333!@#@@B@ffffff-@ffffff%@C@#@@B@)@!@#@@B@e> ̠52  &A Page &PMN\\MARCOPOLO4\1106-C1ps XXA4 9''''" dX??3` q%5 ` q%5 f  0 :( 424  v  <NMM? ]i  MN\\MARCOPOLO9\1047-C1ps XXA4 9''''" dX??3` 0` 0` $` $# ` $' ` $` %` $ ` $ ` $ ` $ ` $ ` $ h0L`  !"#$%& ( 333ff3 Lx L 6_  @c]_m [<\Chart III.2 Average applied MFN and final bound tariff rates, by HS section, 1998 and 2002 <jZ [w R~~ L <   @ ] m  <Note: Source: < /$ anxx L 6:  @0N_l]:Pn $!<"Average applied MFN 1998 (9.5%)< ! Nn^ 49XZnG L# S !] `n L JD; @@Text 549ƢE]D;o <01 Live animals & prod. 02 Vegetable products 03 Fats & oils 04 Prepared food, etc. 05 Mineral products 06 Chemicals & products<  N L H;@?Y49-E];tp <07 Plastic & rubber 08 Hides & skins 09 Wood & articles 10 Pulp, paper, etc. 11 Textiles & articles 12 Footwear, headgear<   L HB@?/49A4DE]Bq <13 Articles of stones 14 Precious stones, etc. 15 Base metals and prod. 16 Machinery 17 Transport equipment 18 Precision instrument< a L HB@? E49XZnG]Bs H<I19 Arms & ammunition 20 Miscellaneous manuf. 21 Works of art, etc.< H ~v eL <@?]e`Lt|B tL BD?IE]t`txx wL 6TA  @K]wTAN L  }  9] `P{ L jA"@?!Outlined diamond>I ]`$||| L <$  @!M N]$l} "< MFN 1998<3 NfXV 8)} 9N L #*} r:N] `~vnB L 6@?$8) *8 ]`~|| L <L  @$+} 9N]L "<Bound<" NfpV ;-} 8)MD L &W} #*MD] ` L NA@?%5%;- >]`|| L <_  @%I} 8)MD]_ "< MFN 2002<3 N~~ L <L`  @= ]L` <Calculations for 2002 exclude 12 lines carrying specific duties. Only HS sections 02, 03, 08, 09 and 11 are fully bound. 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