(c) supervise and coordinate the work of all committees and subsidiary bodies established under this Agreement;
(d) consider ways to further enhance trade and investment relations between the Parties;
(e) seck to resolve disagreements regarding any matter arising under this Agreement; and
(f) carry out any other function relating to the areas covered by this Agreement as the Parties may agree.
2. The Joint Committee may:
(a) establish and delegate responsibilities to committees, or subsidiary bodies;
(b) adopt its own rules of procedure at its first meeting;
(c) seck to resolve differences that may arise regarding the interpretation or application of this Agreement; and
(d) make recommendations.
Article 12.3. Procedures of the Joint Committee
1. The Joint Committee shall meet within one year from the entry into force of this Agreement. Its meetings shall be chaired jointly by the Parties.
2. Thereafter, unless the Parties otherwise agree, the Joint Committee shall convene:
(a) in regular session every year, with such sessions to be held alternately in the territory of each Party; and
(b) in special session upon the request of cither Party, with such sessions to be held in the territory of the other Party or at such locations as the Parties may agree.
3. The meetings of the Joint Committee may be held in person or, if agreed by the Parties, by any technological means available to them.
4. All decisions of the Joint Committee shall be taken by mutual agreement.
Article 12.4. Committees and Subsidiary Bodies
1. The following committees are established under this Agreement:
(a) Committee on Trade in Goods, in accordance with Article 2.15 (Committee on Trade in Goods);
(b) Committee on Trade in Services and Investment;
(c) Committee on Economic Cooperation, in accordance with Article 8.4 (Implementation);
(d) Committee on Customs and Trade Facilitation, in accordance with Article 4.12 (Committee on Customs and Trade Facilitation).
2. The Joint Committee may establish additional subsidiary bodies, including ad hoc bodies, as it determines necessary to address issues arising under, and assist with the implementation of, this Agreement.
3. Unless otherwise provided, any subsidiary bodies shall:
(a) be composed of representatives of the Parties;
(b) be chaired jointly by the Parties;
(c) by agreement, take decisions on any matter within its functions.
4. The committees or subsidiary bodies shall inform the Joint Committee of their schedule and agenda sufficiently in advance of their meetings. They shall report to the Joint Committee on their activities at each regular meeting of the Joint Committee. The creation or existence of a committee or subsidiary bodies shall not prevent cither Party from bringing any matter directly to the Joint Committee.
5. The Joint Committee may decide to change or undertake the task assigned to a committee or subsidiary bodies or may dissolve a committee or subsidiary body.
Article 12.5. Contact Points
1. In order to facilitate communications between the Parties on any trade matter covered by this Agreement, the Parties hereby establish the following contact points:
(a) for Korea, the Ministry of Trade, Industry and Energy; and
(b) for Indonesia, the Ministry of Trade;
or their respective successors.
2. Upon request of either Party, the contact point of the other Party shall indicate the office or official responsible for any matter relating to the implementation of this Agreement, and provide the required support to facilitate communications with the requesting Party. Each Party shall notify the other Party of any change in its contact point in due time.
Chapter 13. FINAL PROVISIONS
Article 13.1. Annexes, Appendices, and Footnotes
The Annexes, Appendices, and footnotes to this Agreement shall form an integral part of this Agreement.
Article 13.2. Amendments
The Parties may agree, in writing, to amend this Agreement. Any amendment shall enter into force after the Parties exchange written notifications through diplomatic channels certifying that they have completed all necessary domestic legal procedures, on such date as the Parties may agree. The amendments shall form an integral part of this Agreement.
Article 13.3. Amendments to the WTO Agreement
If any provision of the WTO Agreement that the Parties have incorporated into this Agreement is amended, the Parties shall, upon request, consult to consider amending the relevant provisions of this Agreement.
Article 13.4. Entry Into Force
1. The entry into force of this Agreement is subject to the completion of necessary domestic legal procedures by each Party.
2. This Agreement shall enter into force 60 days after the date on which the Parties exchange written notifications through diplomatic channels that they have compeleted their respective necessary domestic legal procedures, or on such other date as the Parties may agree.
Article 13.5. Review of the Agreement
1. In accordance with Article 12.2 (Functions of Joint Committee), this Agreement is subject to review at any time following one year after the entry into force of the Agreement upon the request of a Party, with a view to updating and enhancing this Agreement to further its objectives, through negotiations, as appropriate. The review shall include, but is not limited to, consideration of deepening liberalization, reducing or eliminating remaining discrimination and further expanding market access.
2. In conducting a review under this Article, the Joint Committee shall take into account:
(a) the work of all committees and subsidiary bodies established under this Agreement;
(b) relevant developments in international fora; and
(c) as appropriate, inputs from experts.
Article 13.6. Duration and Termination
1. This Agreement shall remain in force unless terminated pursuant to paragraph 2.
2. Either Party may notify the other Party of its intention to terminate this Agreement in writing through diplomatic channels.
3. Such termination shall take effect six months after the receipt of the notice referred to in paragraph 2, unless the Parties agree otherwise.
Conclusion
IN WITNESS WHEREOF, the undersigned, being duly authorized by their respective Governments, have signed this Agreement.
DONE in duplicate at Seoul, on the 18th day of December, in the year 2020, in the Korean, Indonesian, and English languages, cach text being equally authentic. In case of any divergence in interpretation, the English text shall prevail.
For the Government of the Republic of Indonesia
For the Government of the Republic of Korea
Attachments
ANNEX I. SCHEDULE OF INDONESIA
EXPLANATORY NOTES
1. Articles 7.4 (National Treatment), 7.5 (Most-Favored-Nation Treatment), 7.8 (Performance Requirements), and 7.9 (Senior Management and Boards of Directors) apply only to the following sectors:
(a) manufacturing;
(b) agriculture;
(c) fisheries;
(d) forestry;
(e) mining and quarrying.
2. This Annex sets out, in accordance with Article 7.10 (Non-conforming Measures), Indonesia's existing measures in the sectors listed in paragraph 1 that are not subject to some or all of the obligations imposed by:
(a) Article 7.4 (National Treatment);
(b) Article 7.5 (Most-Favored-Nation Treatment);
(c) Article 7.8 (Performance Requirements); or
(d) Article 7.9 (Senior Management and Boards of Directors).
1. Sector: All Sectors
Sub-Sector: Acquisition of Lease of Land
Industry Classification:
Level of Government: Central and Regional
Type of Obligation: National Treatment (Article 7.4)
Description of Measure: The right of ownership of land (hak milik) is restricted to Indonesian nationals only.
Note: Notwithstanding the above, foreign national and foreign company incorporated and domiciled in Indonesia may acquire land and property on the basis of the following rights:
a. Leasehold (hak guna milik), granted to foreign company for a maximum period of 35 (thirty- five) years and may be extended for another period of 25 (twenty-five) years.
b. Building rights (hak guna bangunan), granted to foreign company for a maximum period of 30 (thirty) years and may be extended for another period of 20 (twenty) years.
c. Right of use (hak pakai) granted to: (1) foreign national for a maximum period of 30 (thirty) years and may be extended for another period of 20 (twenty) years; (2) foreign company for a maximum period of 25 (twenty-five) years and maybe extended for another period of 20 (twenty) years.
d. Right of lease (hak sewa), accorded to foreign national and foreign company for a definite period as may be agreed by the parties.
Such acquisitions of land and property must be approved by the relevant authority, subject to such conditions and restrictions as may be imposed by that authority.
Source of Measure:
Article 33 of the 1945 Constitution of the Republic of Indonesia;
Law No. 5 of 1960 concerning Basic Provisions on Agrarian Principles;
Government Regulation No. 40 of 1996 concerning the Right of Cultivation of Land, the Right of Use of Structures, and the Right of Use of Land; and
Government Regulation No. 103 of 2015 concerning Residence or Housing Ownership for Foreigners Domiciled in Indonesia.
2. Sector:mAll Sectors
Sub-Sector: Registration Requirements for the Establishment of Foreign Investment
Industry Classification:
Level of Government: Central
Type of Obligation: National Treatment (Article 7.4)
Description of Measure: Foreign Investment (1) shall have investment of more than IDR 10 billion (excluding land and building), unless required otherwise by the specific sector in accordance with Indonesiaâs laws and regulations.
Source of Measure:
Law No. 25 of 2007 concerning Investment;
Law No. 20 of 2008 concerning Micro, Small and Medium Enterprises;
Minister of Industry Regulation No. 64/M- IND/PER/7/2016 concerning Number of Worker and Value of Investment for Industrial Business Classification; and
Chairman of Investment Coordinating Board Regulation No. 6 of 2018 concerning Guidelines and Procedures for Investment Licensing and Facilities.
3. Sector: All Sectors
Sub-Sector:
Industry Classification:
Level of Government: Central
Type of Obligation: National Treatment (Article 7.4)
Description of Measure:
Foreign investment (2) shall be in the form of limited liability company based on the law of the Republic Indonesia.
Foreign investor (3) organized under the laws of the other Party seeking to make direct investment in Indonesia must establish as an Indonesian limited liability company ("Perseroan Terbatas") in accordance with Law No. 25 of 2007 concerning Investment.
Source of Measure:
Law No. 25 of 2007 concerning Investment; and
Law No. 40 of 2007 concerning Limited Liability Company.
4. Sector: All Sectors
Sub-Sector:
Industry Classification:
Level of Government: Central
Type of Obligation: National Treatment (Article 7.4)
Description of Measure:
Foreign investment shall appoint local distribution agents to sell its products to the end-users in Indonesia.
For greater certainty, foreign investment means foreign investor or legal entity established as "Perseroan Terbatas" in accordance with the source of measures listed under entry 3.
Source of Measure:
Law No. 20 of 2008 concerning Micro, Small and Medium Enterprises;
Ministry of Trade Regulation No. 22 of 2016 concerning General Provisions on the Distribution of Goods;
Ministry of Trade Regulation No. 11 of 2006 concerning Provisions and Procedures of Issuance of Agents or Distributor of Goods and/or Services Registration; and
Chairman of Investment Coordinating Board Regulation No. 6 of 2018 concerning Guidelines and Procedures for Investment Licensing and Facilities.
5. Sector: All Sectors
Sub-Sector:
Industry Classification:
Level of Government: Central
Type of Obligation: National Treatment (Article 7.4) Senior Management and Board of Directors (Article 7.9)
Description of Measure: Foreign investments established under Indonesiaâs Corporate Law are required to have any positions related to personnel affairs to be occupied by Indonesian nationals.
Source of Measure:
Law No. 13 of 2003 concerning Manpower;
Presidential Decree No. 74 of 2014 concerning the Employment of Expatriates and the Implementation of Education and Training for Labor Companion;
Minister of Manpower and Transmigration Decree No. 40 of 2012 concerning Certain Positions that are Restricted for Foreign Workers; and
Presidential Regulation No. 20 of 2018 concerning the Employment of Expatriates.
6. Sector: Fishery
Sub-Sector: Capture Fisheries
Industry Classification: ISIC 0500
Level of Government: Central