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BEHIND THE BORDER ACTIONS AND APEC
THE CASE OF INDONESIA
Presented by
Pos Hutabarat, PhD
Ministry of Trade
Republic of Indonesia
Economies Characteristics
Total Area
1,919,400 sq Km
Number of Islands
18,300
Population (2005)
220 million
Pop. Growth (1990-2005)
1.45%
Unemployment rate (2005) 10.3%
GDP/cap (2005)
US$ 1100
GDP Growth (2000-2005)
4.8%
Macro Economic Indicators
Indicators
2000 2001 2002 2003 2004 2005
GDP Growth (%)
Inflation (%)
Exports (US$ B)
Imports (US$ B)
GDP/cap (US$)
4.9
9.3
62.1
33.5
740
3.3
12.5
56.3
31.0
690
3.8
10.0
57.2
31.3
810
4.5
5.1
5.6
5.1
6.5 17.2
63.3 72.5 76.4
39.5 48.1 9600
970 1030 1100
Tariffs
1. Indonesia has adjusted its tariff regime in
accordance with the implementation of
WTO commitments
2. Most of the tariff lines are ranging
between 0% to 10% with weighted
average 7.2% in 2005
Non-Tariff Measures
1. Eliminating 98 non-tariff measures by
2004 on the WTO commitment
2. Taking unilateral action to remove NTM’s
which are not included in the Uruguay
Commitments
3. Releasing import restriction
SERVICES
Indonesia has reformed and
deregulated many service sectors,
which include financial, retailing and
distribution, energy and tourism
Retail and Distribution
1. Allow foreign firm to operate and obtain
a business license for trading
2. National treatment commitments for
wholesale trade, retailing, convention,
market research, and quality certification
services
Financial
1. Set up the national financial system
2. Rebuild institutional building and coordinate
mechanism of institutions as regulator of
national financial system
3. Allowing branch office of foreign bank and
foreign ownership in local bank (99%)
4. Allowing joint venture insurance company
(99%) and finance company (85%).
ENERGY SECTOR
1. Allowing foreign companies to participate in the
exploration of oil and gas fields under production
sharing contracts (PSCs)
2. Restructuring electricity sector for transparency
and competitive for wide public interest
3. Allowing retail on gasoline industry
4. Allowing joint cooperation contract in coal
mining
INVESTMENT
1. Improving transparency in investment;
2. Non-discrimination policy to investors;
3. Allowing full ownership of FDI in almost
all sectors;
4. Signing investment guarantee agreement
with 57 countries, of which 18 are APEC
economies;
5. Comprehensive investment facilitations
Standards and Conformance
1. Alignment of domestics standards with international
Standards;
2. Establishment of Indonesia’s guideline on good
regulatory practices;
3. Establishment of Indonesian Standardization Society
4. Development of Technical Infrastructure
5. Transparency of Information on standards and
conformance
COMPETITION POLICY
1. Promoting competition through
enactment of The Law No. 5/1999
concerning The Prohibition of
Monopolistic Practices and Unfair
Business Competition
2. Establishing and independent
Competition Commission (KPPU) in
2000
CONCLUSION
1. Indonesia has made significant progress in all
areas of the Osaka Action Agenda to achieve
the Bogor Goals;
2. Indonesia continues deregulating and
liberalizing the economy to improve its
competitiveness;
3. Indonesia is one of the most open economies
in the Asia Pacific region