(v) extending the term of protection from fifty years to seventy years since first publication for all works for which the term is not based on the life of an author, including photographic and cinematographic works, video games and software, and sound recordings.
Services and Investment
Article 2.27. Onshoring of Export Proceeds
Indonesia shall review the requirement for natural resource exporters to onshore export proceeds for any amount of time, as it applies to U.S. investors. Within 12 months of the date of entry into force of this Agreement, Indonesia shall permit the transfer of export proceeds for natural resource investments freely and without delay, at a market rate of exchange, into and out of its territory as it relates to U.S. investors.
Article 2.28. Restrictions on Foreign Investment
Indonesia shall allow foreign investment without ownership restrictions for U.S. investors in the mining sector (including any divestment requirements), fish processing, nature-based development projects, ecosystem services, resource efficiency solutions, publishing, delivery services, land transportation, broadcasting, and financial services.
Article 2.29. International Payment Networks and Chip Standards
1. Indonesia shall continue to allow international payment networks provided by U.S. companies to process domestic credit card and card not present/e-commerce transactions on a cross-border basis, as provided by the exemption provisions in its regulations. Indonesia shall refrain from imposing requirements to process data onshore, particularly in the financial space, provided the country’s authorities have, for regulatory and supervisory purposes, immediate, direct, complete, and ongoing access to the information processed or stored outside Indonesia’s territory.
2. Indonesia shall allow for use of internationally-accepted chip standards for all domestic card transactions, including contactless debit (tap-to-pay).
Article 2.30. Other Services Commitments
1. Indonesia shall remove restrictions on foreign suppliers of delivery services that prohibit them from operating outside of provincial capitals with international airports and seaports.
2. Indonesia shall ensure that fees for import licensing and facility registrations are no higher than the cost of the services rendered.
3. Indonesia shall take effective actions to implement the WTO Joint Initiative on Services Domestic Regulation, including submitting its revised Specific Commitments for certification by the WTO.
4. Indonesia shall refrain from adopting or maintaining any rules restricting the ability of U.S. insurers to process or store data outside of Indonesia.
Good Regulatory Practices
Article 2.31. Good Regulatory Practices
With respect to the adoption and implementation of good regulatory practices at the central level of government, Indonesia shall:
(a) ensure that laws, regulations, procedures, and administrative rulings are promptly published and made easily accessible online;
(b) publish and make easily accessible online the text of proposed regulatory actions, as well as any regulatory impact analysis, an explanation of the regulation, and its objective;
(c) conduct public consultations for proposed regulatory actions in a transparent manner; allow adequate time for interested persons, domestic and foreign, to submit comments, taking into account the complexity or possible impact of the proposed regulation; and give consideration to comments received;
(d) give reasonable notice of planned regulatory actions and publish regulatory policy priorities that will be developed, modified, or eliminated in the near term;
(e) use publicly accessible high-quality data, evidence, technical information, and risk assessments, where appropriate, during the planning and development of regulation;
(f) support international regulatory cooperation through the use of, as appropriate, relevant international standards, guides, and recommendations to avoid unnecessary obstacles to trade;
(g) conduct reviews of regulation in effect to determine whether new information or other changes justify modification or repeal of regulation; and
(h) use tools, such as regulatory impact analysis, to assess the need for and possible impacts of regulations, which could also include alternative approaches to regulation, where appropriate.
Labor
Article 2.32. Labor Laws and other Measures
1. Indonesia shall prohibit the charging of recruitment fees and related costs to workers in Indonesia and, where applicable, prior to their migration to Indonesia. Indonesia’s law may provide that such recruitment fees and related costs be paid by employers.
2. Indonesia shall issue implementing regulations for the 2023 Job Creation Law that significantly limit the use of labor-only outsourcing firms.
3. Indonesia shall amend its labor law (16) to:
(a) prohibit the outsourcing of core business functions;
(b) allow fixed-term employment only for non-permanent tasks and for up to one year total;
(c) end exemptions for sectoral and regional minimum wages, including for mediumsized enterprises; and
(d) remove provisions that restrict the ability of workers and unions to fully exercise their rights to freedom of association and collective bargaining.
4. Indonesia shall ensure its law protects internationally recognized labor rights in special economic zones, and that its law does not afford such zones lower labor protections than the rest of the economy.
5. Indonesia shall ensure that its labor law covers substantially all workers, regardless of their employment status and enterprise registration status, size, or sector.
Article 2.33. Enforcement of Labor Law
To facilitate the effective enforcement of its labor law, Indonesia shall:
(a) train officials, including police, labor inspectors, and immigration officials, on standard operating procedures for the identification of victims of forced labor;
(b) ensure its labor inspectorate is sufficiently resourced, including with respect to funding, personnel, training, transportation, and equipment;
(c) ensure its labor inspectorate has the authority to issue sanctions that are significant enough to help deter violations, including by establishing a mechanism for labor law enforcement officials to assess civil penalties;
(d) provide its labor inspectorate with the authority to conduct unannounced inspections and routine inspections in all sectors; and
(e) ensure that its labor inspectorate conducts unannounced and routine labor inspections in sectors where there is a high risk of labor law violations, including the fisheries, palm oil, and mineral processing sectors, as well as special economic zones; and that such inspections include an examination of whether there are violations related to child labor, forced labor, and occupational safety and health.
Environment
Article 2.34. Environmental Law
1. Indonesia shall ensure that its environmental laws and policies provide for, and encourage, high levels of environmental protection.
2. Indonesia shall effectively enforce its environmental laws.
Article 2.35. Illegal Logging and Associated Trade
1. Indonesia shall take measures to combat, and cooperate with the United States to prevent, trade in illegally harvested forest products.
2. Indonesia shall improve forest sector governance, including by taking the following actions:
(a) update land classification regulations to accurately reflect land cover;
(b) eliminate or reduce high cut rate requirements on government logging concessions;
(c) strengthen the Timber Legality Assurance System (Sistem Verifikasi Legalitas dan Kelestarian) to reliably track specimens from harvest through transport, processing, and export; and
(d) develop and implement an anti-corruption plan for officials charged with the administration and control of forest resources.
Article 2.36. A More Resource Efficient Economy
1. Indonesia shall take measures to promote a more resource efficient economy. Such measures may include addressing trade barriers that inhibit a more resource efficient economy; encouraging innovation that promotes circularity, for example through improving resource efficiency in product design; and promoting trade facilitative approaches to enable reverse supply chains.
2. Indonesia shall take measures to promote the recovery of critical minerals from waste streams. Such measures may include encouraging regulations, infrastructure, or technologies to expand the collection of electronic waste and spent lithium-ion batteries for recycling and recovering critical minerals.
Article 2.37. Fisheries Subsidies
1. Indonesia shall endeavor to accept, as soon as practicable, the WTO Agreement on Fisheries Subsidies (AFS), and fully implement its obligations. This is without prejudice to Indonesian domestic priorities and regulation and international agreements to which it is a party, including the United Nations Convention on the Law of the Sea, done at Montego Bay on December 10, 1982.
2. Indonesia shall strive to ensure its fisheries subsidies do not contribute to overcapacity and overfishing, including through the use of robust fisheries management regimes and reform of such subsidies.
Article 2.38. Article 2.38: Sustainable Fisheries Management and Illegal, Unreported, and Unregulated (IUU) Fishing
1. Indonesia shall operate a sustainable fisheries management system that regulates marine wild capture fishing and promotes the long-term conservation of marine species including sharks, sea turtles, seabirds, and marine mammals.
2. Indonesia shall strengthen enforcement of fisheries related laws, regulations, and other measures to effectively combat IUU fishing and deter trade in products from IUU fishing, including through:
(a) implementing port state measures, including through actions consistent with the Agreement on Port State Measures to Prevent, Deter and Eliminate Illegal, Unreported, and Unregulated Fishing, done at Rome on November 22, 2009;
(b) adopting or strengthening measures to deter vessels flying its flag and its nationals from engaging in IUU fishing; and
(c) preventing the transshipment at sea of fish caught through IUU fishing or fish products derived from IUU fishing.
Article 2.39. Combating Illegal Wildlife Trade and Associated Crimes
Indonesia shall take measures to combat, and cooperate to prevent, the trade of wild fauna and flora that were taken or traded in violation of its law or another applicable law, including through the following actions:
(a) take measures to enhance the effectiveness of inspections of shipments containing wild fauna and flora, including parts and products thereof, at ports of entry;
(b) take measures to combat the trade of wild fauna and flora transshipped through its territory that, based on credible evidence, were illegally taken or traded; and
(c) treat intentional transnational trafficking of wild fauna and flora as a serious crime as defined in the United Nations Convention Against Transnational Organized Crime, done at New York on November 15, 2000; and
(d) take measures to dismantle organized trafficking networks involved in nature crimes.
Article 2.40. Convention on International Trade In Endangered Species of Wild Fauna and Flora (CITES)
Indonesia shall strengthen implementation of CITES to ensure legal and sustainable trade of CITES-listed species, including through:
(a) reviewing its reservation to the CITES Appendix II listing of seahorses (Hippocampus spp.);
(b) ensuring non-detriment findings are based on robust scientific data, and quotas are strictly enforced, in line with CITES requirements; and
(c) effective management of and reporting on pangolin scale stockpiles, including plans for their destruction.
Customs & Trade Facilitation
Article 2.41. Express Shipments
1. Indonesia shall allow express shipment carriers to efficiently return shipments to the sender if the shipment is undeliverable due to the application of Regulation PMK 96/2023 on Import or Export of Consigned Goods, as amended or revised.
2. Indonesia shall ensure that penalties related to shipments covered by PMK 96/2023, as amended or revised, are imposed only on the person(s) responsible for the breach. Where a logistics provider is not responsible for a violation, the logistics provider shall not be subject to penalties, in accordance with Article 6.3 of the WTO Trade Facilitation Agreement.
Article 2.42. Advance Rulings
Indonesia shall issue customs agency advance rulings to U.S. persons regardless of whether they are registered in Indonesian government systems and ensure that an advance ruling is respected at all ports of entry.
Article 2.43. Pre-Shipment Inspection
Indonesia shall reform its pre-shipment inspection mechanism to address the concerns of U.S. exporters no later than three months after the date of entry into force of this Agreement, by meeting with USTR every two weeks to ensure that the reform addresses the relevant issues in a timely manner.
Article 2.44. Electronic Collection of Pre-Arrival Declaration Data
For imports of U.S. goods, Indonesia shall allow for the electronic collection of pre-arrival declaration data and require all border agencies to conclude their processing of such data prior to arrival to allow for the immediate release of low-risk shipments without transfer to a customs bonded area or warehouse.
Article 2.45. Protection of Proprietary Data
Indonesia shall protect proprietary data submitted to Indonesia’s Directorate General of Customs and Excise of the Ministry of Finance by U.S. traders from unauthorized disclosure, including tax identification information if it is required on a customs manifest or customs declaration.
Article 2.46. Rewards for Customs and Excise Officers
Indonesia shall ensure that rewards or premiums offered to customs and excise officers are not based on, or calculated as, a percentage or portion of administrative sanctions assessed or proceeds of the auction of goods resulting from a breach of Indonesian law.
Section 3. Digital Trade and Technology
Article 3.1. Intangible Products and Electronic Transmissions
Indonesia shall eliminate its existing tariff lines on “intangible products” and suspend the requirement that importers file import declarations with Indonesian customs authorities for their electronic transmissions.
Article 3.2. Data Transfers
Indonesia shall provide certainty regarding the ability to move personal data out of its territory to the United States by recognizing the United States as a country or jurisdiction that provides adequate data protection under Indonesia’s law.
Article 3.3. Requirements for Digital Services Providers
Indonesia shall refrain from requiring U.S. digital services providers (platform services) to support domestic news organizations through paid licenses, user data sharing, and profit-sharing models.
Section 4. Rules of Origin
This section is intentionally blank.
Section 5. Economic and National Security
Article 5.1. Cooperation on Excess Capacity In the Steel Sector
Indonesia shall join the Global Forum on Steel Excess Capacity and take effective actions to address global excess capacity in the steel sector and its impacts.
Article 5.2. Equipment and Platform Security
1. Indonesia shall use only communication technology suppliers that do not compromise the security, safeguards, and intellectual property of ICT infrastructure, including 5G, 6G, communication satellites, and undersea cables. Indonesia shall consult with the United States on which suppliers are unable to meet these standards.
2. Indonesia shall ensure, including through cooperation with the United States, that its ports, port terminals, and logistics tracking networks, and its commercial fleet, use digital logistics platforms that provide appropriate cybersecurity protection, protection against the unauthorized disclosure of data, protection against national security risks, and protection against data access by other foreign governments.
Article 5.3. Export Controls
1. Indonesia shall adopt a robust Strategic Trade Management framework to meet its nonproliferation obligations under United Nations Security Council Resolution 1540.
2. Indonesia shall establish measures to restrict the unauthorized export, reexport, and incountry transfer of U.S.-origin or U.S.-controlled items subject to the Export Administration Regulations (EAR) unless the exporter presents U.S. Department of Commerce’s Bureau of Industry and Security (BIS) reexport authorization or demonstrates no BIS authorization is required.
3. Indonesia shall screen and share its export control data related to U.S.-origin or U.S.- controlled items to identify transactions of concern to U.S. authorities, including BIS or its surrogate, and shall adopt and implement measures to prevent and address violations of U.S. export controls.
4. Indonesia shall develop domestic export controls systems and enforcement mechanisms, including by establishing and implementing civil and criminal penalties, and by strengthening its auditing and investigative capabilities, and shall partner with the United States on export controls enforcement actions where appropriate, including by sharing information when violations may have occurred and cooperating on end-use checks and investigations.
Article 5.4. Antidumping and Countervailing Duty Cooperation
Indonesia agrees to expand cooperation and exchange information, as appropriate, related to the Parties’ respective antidumping and countervailing duty proceedings (to include circumvention inquiries).
Article 5.5. Other Commitments
Indonesia shall take steps to ratify the Convention on Supplementary Compensation for Nuclear Damage to reduce U.S. industry concerns related to nuclear liability so as to facilitate trade.
Section 6. Commercial Considerations
Article 6.1. Critical Minerals
1. To strengthen supply chain connectivity between the Parties, Indonesia shall remove restrictions on exports to the United States of industrial commodities, including critical minerals.
2. Indonesia and the United States shall intensify their cooperative efforts to accelerate the secure supply of critical minerals, including rare earths. Indonesia shall cooperate with U.S. companies on mining, processing, and downstream production of critical minerals based on commercial considerations.
3. To this end, Indonesia shall cooperate on the expedient development of its rare earth and critical minerals sector in partnership with U.S. companies to ensure secure and diversified supply chains. Indonesia shall provide greater certainty for companies involved in critical mineral extraction, creating certainty for businesses to increase production capacity and supporting operational growth.
4. Indonesia and the United States commit to continued cooperation and engagement on critical mineral supply chains.
5. Indonesia shall:
(a) implement restrictions on foreign-owned processing facilities’ excess production (17) by ensuring that production conforms to Indonesia mining quotas; and
(b) ensure that foreign-owned industrial parks and processing facilities are subject to the same tax, environmental, labor, quota, and other legal requirements as other companies and entities.
Article 6.2. Strategic Investment
Indonesia shall endeavor to facilitate the realization of outbound direct investment to the United States with a minimum indicative value of USD 10 billion. Such investment will include engineering, procurement, and construction projects, and the development of blue ammonia and other energy initiatives.
Article 6.3. Industrial Cooperation
Indonesia shall ensure that all industrial parks and processing facilities are subject to the same tax, environmental, labor, quota, and other legal requirements as other companies and entities.
Article 6.4. Facilitation of Energy Purchases
Indonesia shall facilitate, by granting all necessary government approvals, decrees, and authorizations to state-owned entities and the private sector, the increase of purchases of U.S. energy; the development of a purchasing approach for U.S. crude oil; and the purchase of more U.S. refined petroleum and liquified petroleum gas (LPG), including through long-term contracts.
Article 6.5. Investment
Indonesia shall:
(a) provide investment to help develop a U.S. West Coast export corridor, including developing export terminals, to increase U.S. coal’s competitiveness in the international market; and
(b) partner with the United States and Japan to work toward deploying small modular reactors using a modernized public-private partnership approach, starting with the front-end engineering and design work for the project in West Kalimantan.