Information on Non-Conforming Measures referred to in ... on Non-Conforming Measures referred to in paragraph 2 of Article 64 of the Agreement between Japan and the Republic of Indonesia

Information on Non-Conforming Measures referred to in paragraph 2 of Article 64 of the

Agreement between Japan and the Republic of Indonesia for an Economic Partnership

July 1, 2008

Indonesia

2

The Sector or Matter specified in Annex 4

1. Small-Scale Electric Power Plant (up to 10 MW)

2. Travel Agent 3. Art Studio 4. Tourism Guide Service 5. Business related to Non-Timber Forest Products (Sugar Palm,

Candlenut, Tamarind, Raw Material of Charcoal, Cinnamon, etc.) 6. In-Nature Swallow Nest Business 7. Sawn Timber Industry (Production Capacity up to 2000M3/Year) 8. Primary Industry of Rattan Processing 9. Semi-Finished Product Industry from Mangrove 10. Primary Industry of Non-wood Forest Products (Pine Resin, Bamboo,

Atsiri Oil) 11. Catching of Wild Plants and Wild Life Animals (TSL) from Natural

Habitat 12. Fisheries by Using Fishing Vessel in a Size up to 30 GT, within

Maritime Areas up to 12 Miles 13. Inland Water Fishing 14. Fishery Products Processing (UPI), Fermentation,

Reduction/Extraction, Processing of Surimi and Fish Jelly. 15. Community Broadcasting Service (LPK) of Radio and Television 16. Courier Services/Custody Services: - Printing Materials Deliveries - Newspaper - Parcels - Packages

- Money Transfer

(Small-Scale) 17. Telecommunications Services covering: - Telecommunications Stall - Internet Stall - Cable Installation to Houses and Buildings 18. Construction Services (Small-Scale Contractor) 19. Business Services/ Construction Consultant Services for Small-Scale 20. Business Services/ Construction Consultant Services:

- Advisory and Consultative Engineering Services - Engineering Design Services for Industrial Process and Production - Engineering Design Services n.e.c.

3

21. Public Transportation a. Route - City Bus/Village Bus b. Non-Route - Taxi 22. Water Transport in Small Scale 23. Industry of Salting, Drying and Boiling (Fish and Other Waters

Biota) 24. Manufacture of Yarn or Thread, made of Natural or Synthetic Fiber,

for Hand-looming 25. Hand-made Batik Industry 26. Rubber Processing by Smoking 27. Industry of Hand-tools being Manufactured in Manual or Semi-

mechanical Basis for Carpentry and Cutting 28. Manufacture of Glazed and Non-glazed Clay and Ceramic Products for

Household Utilities 29. Motorcycle Maintenance and Reparation Services except Those

Integrated in the Sales Business of Motorcycle (Agent/Distributor), and Reparations Industry for Personal Belongings and Households

30. Manufacture of Traditional Handicrafts Using Natural or Artificial

Materials 31. Industry of Hand-made Hand-tools for Agriculture except Mattocks and

Spades 32. Brown Sugar 33. Processing of Foods made of Grains and Tuberoses, Sago, Melinjo

(Tree with Edible Seeds/gnetum genemon) and Copra 34. Peeling and Cleaning of Tuberoses 35. Industry of Drying and Processing of Tobacco 36. Cultivation of Rice, Cassava, Corn and Other Food Crops (in an Area

not exceeding 25 Ha) 37. Breeding and Farming of Pigs in a Quantity not exceeding 125 Pigs 38. Breeding and Farming of Non-pedigreed Chicken and its Cross-breeding 39. Processing Industry of Plantation Products 40. Plantation and Plantation Seedbed Industry in an Area less than 25

Ha 41. Film Production 42. Film Promotion-related Business (Advertisement, Poster, Still,

Photo, Slide, Plate, Banner, Pamphlet, Ballyhoo, Folder, etc.) 43. Film Technical Services: - Shooting Studio - Film Production Facilities

4

- Facilities of Editing, Dubbing, Text Processing, Film Duplication, etc.

44. Film Distribution (Export, Import and Distribution) 45. Screening: Movie/Film Theater 46. Recording Studio (Cassette, VCD, DVD, etc.) 47. Utilization of Timber from Natural Forest (IUPHHKHA) 48. Utilization of Water Environment in Forest Area 49. Supply and Distribution (Export and Import) of Seeds and Germs of

Plantation Forest 50. Fisheries by Fishing Vessel in a Size of 100 GT or more within

Offshore Capture Areas 51. Fisheries by Fishing Vessel in a Size above 30 GT, within Maritime

Areas beyond 12 Miles 52. Pit Sand Mining 53. Pharmaceutical Wholesales 54. Raw Material Pharmaceutical Wholesales 55. Traditional Medicine Industry (Jamu Processing) 56. General Medical Services/ General Hospital/General Clinic 57. Health Care Support Services (Ambulance Services) 58. Individual Medical Practitioner 59. Residential Health Services and Basic Health Service Facilities 60. Health Research Center/ Institute 61. Health Supporting Services (Pest Control/Fumigation Services) 62. Private Maternity House 63. Pharmacist Profession Practice 64. Small-Scale Drugstore/Pharmacy 65. Pension Fund 66. Rural Bank (Bank Perkreditan Rakyat/BPR) 67. Syariah BPR 68. Money Changer 69. Private Broadcasting Services (LPS) 70. Subscribed Broadcasting Services (LPB) 71. Printed Press Company 72. Retails Trading: - Street Vendors - Traveling Vendors - Vendors in/around Supermarket, Department Store, Hypermarket etc. - Community Store

5

- Convenience Store - Mini Market - Retails through Media etc. 73. Wholesales (Based on Fee or Contract)

- Agency Services - Commission Agent

- Distributor (Note)

Note: Distributor, herein, means a distributor who may sell products to end-customers.

74. Wholesales and Retail Sales of Alcoholic Beverages (Importer,

Distributor, Sub- distributor and Retailer) 75. Trading Survey Services 76. Property/Real Estate Broker (Based on Fee or Contract) 77. Rental Services for Land Transport (Rental Without Operator) 78. Rental Services for Other Machineries and Equipments 79. Building Cleaning Services 80. Other Cleaning Services 81. Non-classified Company Services (Stenography, Auction, Translation,

Copy Services, Telephone Services) 82. Other Service Activities (Laundry, Barber Shop, Beauty Parlor) 83. Production of Weapons, Ammunition, Explosive Devices, and Armaments 84. Placement of Indonesian Domestic Workers Abroad 85. Worker Supplier Services (Registration, Recruitment and Other

Formality Processes) 86. Loan, Grant and Capital Participation offered by Indonesia to State-

owned Enterprises 87. Subsidies 88. Form of Business Enterprise

89. *Off-shore Oil and Gas Drilling Services outside Eastern Area of

Indonesia 90. *On-shore Oil and Gas Drilling Services 91. *Operation and Maintenance Services for Oil and Gas Facilities 92. *Engineering Procurement Construction (EPC) Services 93. *Power Plant 94. *Transmission of Electric Power 95. *Electric Power Consultant 96. *Construction and Installation of Electric Power Instrument

97. *Maintenance and Operation of Electric Power Instrument 98. *Development of Technology of Power Plant Equipment Supplies

6

99. *Distribution of Electric Power 100. *Nuclear Power Plant Note: “*” indicates that these reservations will be maintained for three

years after the date of entry into forth of this Agreement, and subject to review, after the end of such three years’ period.

Note: For the purpose of this Information, the “KBLI” means Klasifikasi

Baku Lapangan Usaha Indonesia/Indonesia Standard Industrial Classification set out by Central Bureau of Statistic.

7

1 Sector or Matter:

Small-Scale Electric Power Plant (up to 10 MW)

Industry Classification Codes:

KBLI 40101

Level of Government:

Central Government

Obligation under this Agreement:

National Treatment(Article 59)

Legal Source of the Measure:

Law of Republic of Indonesia Number 25/2007 concerning Investment, Article 12 para ( 1, 4 & 5 ) and Article 13 para (1). Law of Republic of Indonesia Number 9/1995 concerning Small Businesses. Law of Republic of Indonesia Number 25/1992 concerning Cooperative.

Succinct Description of the Measure:

Business sectors are open to investment activity except those declared as being totally closed or opened for foreign investment with certain conditions based on national interests: protection of natural resources, protection of micro, small, medium enterprises and cooperatives, supervision of production and distribution, increase of technological capacity, participation of domestic capital and joint venture with companies appointed by government. Investment in this sectors is reserved for SMEs or Cooperatives owned by Indonesian nationals. SMEs are businesses with a maximum net asset up to IDR 10 billion (excluding land and buildings). Cooperatives are a legal entity that run business based on cooperative principles.

8

2 Sector or Matter:

Travel Agent


KBLI 63420


Central Government







9

3 Sector or Matter:

Art Studio


KBLI 92142


Central Government







10

4 Sector or Matter:

Tourism Guide Service


KBLI 63430


Central Government







11

5 Sector or Matter:

Business related to Non-Timber Forest Products (Sugar Palm, Candlenut, Tamarind, Raw Material of Charcoal, Cinnamon, etc)


KBLI 02039


Central Government







12

6 Sector or Matter:

In-Nature Swallow Nest Business


KBLI 02052


Central Government


National Treatment((Article 59)





13

7 Sector or Matter:

Sawn Timber Industry (Production Capacity up to 2000M3/Year).


KBLI 20101


Central Government







14

8 Sector or Matter:

Primary Industry of Rattan Processing


KBLI 20104


Central Government







15

9 Sector or Matter:

Semi-Finished Product Industry from Mangrove


KBLI 20293, 20294, 20299


Central Government







16

10 Sector or Matter:

Primary Industry of Non-wood Forest Products (Pine Resin, Bamboo, Atsiri Oil)


KBLI 02059


Central Government







17


Catching of Wild Plants and Wild Life Animals (TSL) from Natural Habitat


KBLI 01501


Central Government







18


Fisheries by Using Fishing Vessel in a Size up to 30 GT, within Waters Areas up to 12 Miles.


KBLI 05011


Central Government







19


Inland Water Fishing


KBLI 05031


Central Government







20


Fishery Products Processing (UPI), Fermentation, Reduction/ Extraction, Processing of Surimi and Fish Jelly


KBLI 15129


Central Government







21


Community Broadcasting Service (LPK) of Radio and Television


KBLI 92132


Central Government







22


Courier Services / Custody Service: - Printing Materials Deliveries - Newspaper - Parcels - Packages - Money Transfer (Small Scale)


KBLI 64130


Central Government







23


Telecommunication Services Covering:

- Telecommunication Stall - Internet Stall - Cable Installation to Houses and

Buildings


KBLI 64314, 64325, 64319


Central Government







24


Construction Service (Small-Scale Contractor)


KBLI 45100, 45243, 45211, 45213, 45214, 45215, 45216, 45217, 45218, 45221, 45222, 45223, 45224, 45229, 45241, 45242, 45245, 45311, 45312, 45313, 45314, 45315, 45316, 45317, 45319, 45328, 45401, 45402, 45403, 45409, 45500

Level of

Government:

Central Government







25


Business Services / Construction Consultant Services for Small Scale


KBLI 74210


Central Government







26


Business Services / Construction Consultant Services - Advisory and Consultative Engineering Service

- Engineering Design Service for Industrial Process and Production

- Engineering Design Service n.e.c


KBLI 74210


Central Government




Law of Republic of Indonesia Number 25/2007 concerning Investment, Article 12 para ( 1, 4 & 5 ).


Business sectors are open to investment activity except those declared as being totally closed or opened for foreign investment with certain conditions based on national interests: protection of natural resources, protection of micro, small, medium enterprises and cooperatives, supervision of production and distribution, increase of technological capacity, participation of domestic capital and joint venture with companies appointed by government. Investment in this sector requires 100% domestic capital participation.

27


Public Transportation a. Route

- City Bus/ Village Bus b. Non-Route

- Taxi


KBLI 60211, 60212, 60213, 60214, 60215,60221


Central Government







28


Water Transport in a Small Scale


KBLI 61118


Central Government






Business sectors are open to investment activity except those declared as being totally closed or opened for foreign investment with certain conditions based on national interests: protection of natural resources, protection of micro, Small, medium enterprises and cooperatives, supervision of production and distribution, increase of technological capacity, participation of domestic capital and joint venture with companies appointed by government. Investment in this sectors is reserved for SMEs or Cooperatives owned by Indonesian nationals. SMEs are businesses with a maximum net asset up to IDR 10 billion (excluding land and buildings). Cooperatives are a legal entity that run business based on cooperative principles.

29


Industry of Salting, Drying and Boiling (Fish and Other Waters Biota)


KBLI 15122, 15125


Central Government







30


Manufacture of Yarn or Thread, made of Natural or Synthetic Fiber, for Hand-looming


KBLI 17115


Central Government







31


Hand-made Batik Industry


KBLI 17124


Central Government







32


Rubber Processing by Smoking


KBLI 25121


Central Government



Legal Source of the Measure ;




33


Industry of Hand-tools being Manufactured in Manual or Semi-mechanical Basis for Carpentry and Cutting


KBLI 28932, 28933, 28939


Central Government







34

28 Sector or Matter: Manufacture of Glazed and Non-glazed Clay

and Ceramic Products for Household Utilities


KBLI 26321


Central Government







35


Motorcycle Maintenance and Reparation Services except Those Integrated in the Sales Business of Motorcycle (Agent/Distributor), and Reparations Industry for Personal Belongings and Households


KBLI 93050, 93061, 93062


Central Government







36


Manufacture of Traditional Handicrafts Using Natural or Artificial Materials


KBLI 17293, 20291, 20292, 20293, 20294, 20299, 36921


Central Government







37


Industry of Hand-made Hand-tools for Agriculture except Mattocks and Spades


KBLI 28931


Central Government







38


Brown Sugar


KBLI 15422


Central Government







39


Processing of Foods made of Grains and Tuberoses, Sago, Melinjo (Tree with Edible Seeds/gnetum genemon) and Copra


KBLI 15494, 15498


Central Government







40


Peeling and Cleaning of Tuberoses


KBLI 15317


Central Government







41


Industry of Drying and Processing of Tobacco


KBLI 16001


Central Government







42


Cultivation of Rice, Cassava, Corn and Other Food Crops (in an Area not exceeding 25 Ha)


KBLI 01111, 01112


Central Government







43


Breeding and Farming of Pigs in a Quantity not exceeding 125 Pigs


KBLI 01221


Central Government







44


Breeding and Farming of Non-pedigreed Chicken and its Cross-breeding


KBLI 01223


Central Government







45

39 Sector or Matter: Processing Industry of Plantation

Products.


KBLI 15141, 15143, 15144, 24294, 15313, 15314, 15315, 15318


Central Government







46

40 Sector or Matter: Plantation and Plantation Seedbed

Industry in an Area less than 25Ha


KBLI: 01113, 01114, 01115, 01116, 01117, 01118, 01119, 01133, 01134, 01135, 01136, 01137, 01138, 01139

Level of

Government:

Central Government







47


Film Production


KBLI 92112


Central Government




Law of Republic of Indonesia Number 25/2007 concerning Investment Article 12 para ( 1, 4 & 5 ).



48


Film Promotion-related Business (Advertisement, Poster, Still, Photo, Slide, Plate, Banner, Pamphlet, Ballyhoo, Folder, etc.)


KBLI 74300


Central Government







49


Film Technical Services: - Shooting Studio - Film Production Facilities - Facilities of Editing, Dubbing, Text

Processing, Film Duplication, etc.


KBLI 71290


Central Government







50


Film Distribution (Export, Import and Distribution)


KBLI 92112


Central Government







51


Screening: Movie/ Film Theater


KBLI 92120


Central Government







52


Recording Studio (Cassette, VCD, DVD, etc)


KBLI 22130


Central Government







53


Utilization of Timber from Natural Forest (IUPHHKHA)


KBLI 02020


Central Government







54


Utilization of Water Environment in Forest Area


KBLI 02059


Central Government







55


Supply and Distribution (Export and Import) of Seeds and Germs of Plantation Forest


KBLI 02039


Central Government







56


Fisheries by Fishing Vessel in a Size of 100 GT or more within Offshore Capture Areas


KBLI 05011


Central Government







57

51 Sector or Matter: Fisheries by Fishing Vessel in a Size

above 30 GT, within Maritime Areas beyond 12 Miles


KBLI 05011


Central Government







58


Pit Sand Mining


KBLI 14105


Central Government







59


Pharmaceutical Wholesales


KBLI 51900


Central Government







60


Raw Material Pharmaceutical Wholesales


KBLI 51900


Central Government







61


Traditional Medicine Industry (Jamu Processing)


KBLI 24234


Central Government


National Treatment((Article 59))





62


General Medical Services/General Hospital/ General Clinic


KBLI 85114


Central Government







63


Health Care Support Service (Ambulance Services)


KBLI 85193


Central Government







64


Individual Medical Practitioner


KBLI: 85121, 85122, 85123, 85191, 85192


Central Government







65


Residential Health Services and Basic Health Service Facilities


KBLI 85119


Central Government







66


Health Research Center/Institute


KBLI 73120


Central Government







67


Health Supporting Services (Pest Control/ Fumigation Services)


KBLI 85193


Central Government







68


Private Maternity House


KBLI 85113


Central Government







69


Pharmacist Profession Practice


KBLI 52312


Central Government





Succinct Description of the Measure


70


Small Scale Drugstore/Pharmacy


KBLI 52313


Central Government







71


Pension Fund


KBLI 66020


Central Government

under this Agreement:






72


Rural Bank (Bank Perkreditan Rakyat/BPR)


KBLI 65191


Central Government







73

67 Sector or Matter: Syariah BPR

Industry

Classification Codes:

KBLI 65192


Central Government







74


Money Changer


KBLI 67191


Central Government







75


Private Broadcasting Services (LPS)


KBLI 92132


Central Government



Legal Source of the Measure :




76


Subscribed Broadcasting Services (LPB)

Industry Classification Codes :

KBLI 92132


Central Government







77


Printed Press Company


KBLI 22120


Central Government







78


Retails Trading: - Street Vendors; - Traveling Vendors; - Vendors in/around Supermarket,

Department Store, Hypermarket etc. - Community Store - Convenience Store - Mini Market - Retails through Media etc.


KBLI 52111, 52191, 52511, 52512, 52513, 52514, 52515, 52516, 52521, 52522, 52523, 52524, 52525, 52527, 52528, 52529, 52531, 52532, 52533, 52534, 52535, 52536, 52539, 52541, 52542, 52543, 52544, 52545, 52546, 52547, 52548, 52549, 52551, 52552, 52553, 52554, 52555, 52556, 52557, 52559, 52561, 52569, 52571, 52572, 52573, 52574, 52575, 52576, 52577, 52581, 52582, 52583, 52591, 52592, 52593, 52594, 52595, 52600, 52721, 52722, 52723, 52724, 52725, 52726, 52727, 52728, 52729, 55250, 52112, 52192, 52211, 52213, 52214, 52512, 52513, 52514, 52215, 52219, 52221, 52222, 52223, 52224, 52225, 52227, 52228, 52229, 52311, 52312, 52313, 52314, 52315, 52316, 52317, 52318, 52319, 52321, 52322, 52323, 52324, 52325, 52326, 52327, 52328, 52329, 52331, 52332, 52333, 52334, 52335, 52336, 52337, 52338, 52339, 52341, 52342, 52343, 52344, 52345, 52346, 52347, 52348, 52349, 52351, 52352, 52353, 52354, 52359, 52361, 52362, 52363, 52364, 52365, 52366, 52367, 52368, 52371, 52372, 52373, 52374, 52375, 52381, 52382, 52383, 52384, 52385, 52386, 52389, 52391, 52392, 52393, 52394, 52395, 52399, 52401, 52402, 52403, 52404, 52405, 52406, 52409, 55240, 50102, 50202, 50302, 52711, 52712, 52713, 52714, 52719.

Level of

Government:

Central Government



79





80


Wholesales (Based on Fee or Contract) - Agency Service - Commission Agent - Distributor (Note) Note: Distributor, herein, means a

distributor who may sell products to end-customers.

Industry


KBLI 51100, 54100


Central Government







81


Wholesales and Retail Sales of Alcoholic Beverages (Importer, Distributor, Sub-distributor and Retailer)


KBLI 51220, 52226, 52526


Central Government







82


Trading Survey Services


None


Central Government







83


Property/Real Estate Broker (Based on Fee or Contract)


KBLI 70200


Central Government

under this Agreement:






84


Rental Services for Land Transport (Rental Without Operator)


KBLI 71110


Central Government







85


Rental Services for Other Machineries and Equipments


KBLI 71210, 71220, 71230, 71290


Central Government







86


Building Cleaning Services


KBLI 74930


Central Government







87


Other Cleaning Services


KBLI 90002


Central Government







88


Non-classified Company Services (Stenography, Auction, Translation, Copy Services, Telephone Services)


KBLI 74990


Central Government







89


Other Service Activities (Laundry, Barber Shop, Beauty Parlor)


KBLI 93010, 93021, 93022, 93091, 93094


Central Government







90


Production of Weapons, Ammunition, Explosive Devices, and Armaments


KBLI 29270


Central Government




Law of Republic of Indonesia Number 25/2007 concerning Investment Article 12 para ( 1, 2, 4 & 5 ).



91


Placement of Indonesian Domestic Workers Abroad.


KBLI 74910


Central Government







92


Worker Supplier Services (Registration, Recruitment and Other Formality Processes)


KBLI 74910


Central Government







93


Loan, Grant and Capital Participation offered by Indonesia to a State Owned Enterprises


None


Central Government




Law of Republic of Indonesia Number 17/2003 concerning State Finance, Article 24 para (1) and para (7)


The government can offer capital support to State-owned Enterprises in the form of loan, grant or capital participation. In certain circumstances, for example, to accelerate economic recovery, such supports can be extended to private domestic legal person, subject to the parliament’s approval.

94


Subsidies


None


Central Government




Law of Republic of Indonesia Number 19/2003 concerning State-owned Enterprises.


Only State-owned Enterprises having special task to serve public interest are eligible to get government’s subsidies.

95


Form of Business Enterprise


None


Central Government




Law of Republic of Indonesia Number 25/2007 concerning Investment Article 5.


Foreign investment in Indonesia shall be in the form of a limited liability company constituted or organized under Indonesian laws and regulations.

96


Off-shore Oil and Gas Drilling Services outside Eastern Area of Indonesia


KBLI 11200


Central Government


National Treatment (Article 59)


Law of the republic of Indonesia Number 25/2007 concerning Investment Article 12 para ( 1, 4 & 5 ) Presidential Decree No 111/2007 concerning Criteria and Requirements for Formatting Lines of Business Closed and Open with Conditions to Investment.


Business sectors are open to investment activity except those declared as being totally closed or opened for foreign investment with certain conditions based on national interests: protection of natural resources, protection of micro, small, medium enterprises and cooperatives, supervision of production and distribution, increase of technological capacity, participation of domestic capital and joint venture with companies appointed by government. Foreign investment in this sector is subject to foreign equity restrictions up to 95%. The reservation will be maintained for three years after the date of entry into force of this Agreement, and subject to a review after the end of the three-year period.

97


On-shore Oil and Gas Drilling Services


KBLI 11200


Central Government




Law of the republic of Indonesia Number 25/2007 concerning Investment Article 12 para (1, 4 & 5). Presidential Decree No 111/2007 concerning Criteria and Requirements for Formatting Lines of Business Closed and Open with Conditions to Investment.



98


Operation and Maintenance Services for Oil and Gas Facilities


KBLI 11200


Central Government





Description of the Measure:


99


Engineering Procurement Construction (EPC) Services


KBLI 74140


Central Government







100


Power Plant


KBLI 40101


Central Government







101


Transmission of Electric Power


KBLI 40102


Central Government







102


Electric Power Consultant


KBLI 4010


Central Government







103


Construction and Installation of Electric Power Instrument


KBLI 45312


Central Government







104

97 Sector or Matter: Maintenance and Operation of Electric Power Instrument


KLBI 4010


Central Government







105


Development of Technology of Power Plant Equipment Supplies


KBLI 4010


Central Government







106


Distribution of Electric Power


KBLI 40103


Central Government







107


Nuclear Power Plant


KBLI 40101


Central Government







Documents

Information on Non-Conforming Measures referred to in ... on Non-Conforming Measures referred to in paragraph 2 of Article 64 of the Agreement between Japan and the Republic of Indonesia