ASEAN Comprehensive Investment Agreement (2009)
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Sugar cane plantation, sugar industry, sugar cane, and sugar cane residue (ISIC 0111 & 1542),

Tobacco plantation and dry tobacco leaves industry (ISIC 0111 & 1600),

Coconut Plantation and coconut oil industry (ISIC 0113 & 1514),

Coconut Plantation and Copra, Fiber, Coconut Charcoal, Dust, Nata de coco industry (ISIC 0113, 1514 & 1549),

Palm Plantation and palm oil industry (CPO) (ISIC 0113 & 1514),

Cacao Plantation and cleaning, peeling and drying industry (ISIC 0113 & 0140, 1543),

Tea plantation and black/green tea industry (ISIC 011381549),

Essential oil Crop Plantation and Essential Oil industry (ISIC 0111, 0112, 0113 & 2429),

Coffee Plantation and Coffee sorting, cleaning and peeling industry (ISIC 0113 & 0140, 1549),

Rubber plantation and sheet, thick latex industry and crumb rubber industry (ISIC 0111 & 2519),

> Seed plantation other than Coffee and Cacao and Seeds other than Coffee and Cacao cleaning and peeling industry (ISIC 0111, 0112, 0113 & 0140, 1531)

Breeding and propagation of the following for an area of 25 hectares or over, until a certain area according to Regulation of Minister of Agriculture Number 26 of 2007 with maximum foreign capital ownership 95%, with a special permit from the Minister of Agriculture:

> Jatropha curcas plantation, Sugar cane and other sweetening plant plantation, Tobacco plantation, raw material Textile Crop plantation, cotton plantation, Rubber and other latex producing plantation, Other crop plantations that are not classified in other locations, Medicinal/pharmaceutical crop plantation, Essential oil Crop Plantation (ISIC 0111, 0112)

> Cashew plantation, Coconut plantation, Palm plantation, Crop Plantation for Beverage material, Peppercorn plantation, Clove plantation, Other spices crop plantation (ISIC 0113)

Product processing plantation industry (harvesting and activities relating to harvesting) with an input capacity equal to or exceeding a certain limit as stated in the Regulation of the Minister of Agriculture Number 26 of 2007, with maximum foreign capital ownership 95%, with a special permit from the Minister of Agriculture:

- Dry Clove Flower Industry (ISIC 0140)

3. Foreign Capital Ownership Limitation

Hunting business in Hunting Parks and Hunting Blocks (maximum foreign capital ownership 49%) (ISIC 0150)

Raising wild animals (ISIC 0150)

4. Partnership (19) with Micro, Small and Medium Sized Enterprises and Cooperatives (20)

Tobacco drying and preliminary processing industry (ISIC 0111)

Silk worm cocoon/chrysalis (natural silk) farming, Bee farming (ISIC 0122)

(19) For this reservation, Partnership with Micro, Small and Medium Sized Enterprises and Cooperatives means cooperation between micro, small and medium size enterprise and Cooperatives and foreign investors, which may take any of the following forms: joint-operation (plasma-core), sub-contracting, franchise, distributorship, general trading, joint venture and outsourcing.
(20) For the purpose of this reservation, the definition of Micro, Small, and Medium Sized Enterprises (UMKM) can be found in Law No. 20 of 2008. For the definition of Cooperatives can be found in Law

5. Locational Requirements

« Pig Breeding and Farming (for quantity of more than 125 heads) with a special permit from the local authority (ISIC 0122)

6. Special Permit from Relevant Ministerial/ Government Agencies (applies to both local and foreign investors)

« Capturing and Propagating reptiles (snake, lizard, turtle, soft shell turtle and croodile) from natural habitat with a special permit from Minister of Forestry (ISIC 0150)

Services Incidental to Agriculture

Open with certain restriction

Estate Plantation (CPC 88110) - Pest (diseases &insects) forecasting, control and equipment rental (Partnership"' with Micro, small and Medium Sized enterprises and cooperatives")

Agriculture (CPC 88110) (Partnership"' with Micro, Small and Medium Sized Enterprises and Cooperatives" ) - Food crops land/soil preparation, harvesting, threshing, rice milling unit (to be located outside of Java Island) - Horticultural pest control (diseases & insects) - Food Crop Pest Control

Livestock (CPC 88110)

a. Partnership (21) with Micro, Small and Medium Sized Enterprises and Cooperatives (22)

> Slaughterhouses for cattle / poultry

b. Partnership (21) with Micro, Small and Medium Sized Enterprises and Cooperatives (22) and Special Permit from Relevant Ministerial/Government Agencies

> Meat Processing/Butchering Plan

Estate Plantation (CPC 88110) : Partnership (21) with Micro, Small and Medium Sized Enterprises and Cooperatives (22)

> Land/Soil preparation

> Landscape Planning and Survey

> Plant breeding / transplantation and nursery

(21) For this reservation, Partnership with Micro, Small and Medium Sized Enterprises and Cooperatives means cooperation between micro, small and medium size enterprise and Cooperatives and foreign investors, which may take any of the following forms: joint-operation (plasma-core), sub-contracting, franchise, distributorship, general trading, joint venture and outsourcing.
(22) For the purpose of this reservation, the definition of Micro, Small, and Medium Sized Enterprises (UMKM) can be found in Law No. 20 of 2008. For the definition of Cooperatives can be found in Law No. 25 of 1992.

Source of Measure:

Law No. 18 of 2004 Concerning Plantation

Law No 18 of 2009 concerning Livestock and Animal Health

Law No. 41 of 1999 Concerning Forestry

Law No. 5 of 1990 Concerning Conservation of Natural Resources and Its Ecosystems

Government Regulation No. 6 of 2007 as amended by Government Regulation No. 3 of 2008 Concerning Forest Administration and Compilation of Forest Management Planning and Utilization of Forest

Government Regulation No. 8 of 1999 Concerning Utilization of Plant and Wild Animal Species Government Regulation number 18 of 2010 concerning Plant Cultivating Business

Presidential Regulation No.36 of 2010 Concerning List of Business Fields Closed to Investment and Business Fields Open, With Conditions, to Investment

Agriculture Minister Regulation No. 26 of 2007 Concerning Guidelines for License on Estate Crops Sector

Agriculture Minister Decree No. 404 of 2002 Concerning Guidelines for License and Registration on Livestock Sector

Agriculture Minister Decree No. 348 of 2003 Concerning Guidelines for License on Horticulture Sector

Agriculture Minister Regulation No 2 of 2009 concerning Guidelines of Veterinary Medical Services

Government policy

19.

Sector: Forestry and Services Incidental to Forestry

Sub-Sector

Industry Classification: ISIC (see below) CPC (see below)

Level of Government: Central

Type of Obligation: National Treatment

Description of Measure: Certain restrictions/requirements which may be inconsistent with National Treatment may be imposed to foreign investors on the establishment of the following line of businesses in Indonesia :

Forestry

1. Closed to Foreign Investors

Exploitation of other forest plants (Sugar Palm, Pecan, Tamarind Seed, Charcoal Raw Material, Cinnamon, etc) (ISIC 0200)

Exploitation of Swallow Nests in Nature (ISIC 0200)

Primary industry of forest product other than wood (Pine Sap, Bamboo) (ISIC 0200)

Gathering wild growing forest plants (ISIC 0200)

Exploitation of wood forest products from the natural forest (ISIC 0200)

Forest ecosystem restoration (ISIC 0200)

Exploitation of wood forest products from the community- based forests (ISIC 0200)

Exploitation of water resources in forest area (ISIC 0200)

2. Foreign Capital Ownership Limitation

Growing and gathering wild plants (maximum foreign capital ownership 49%) (ISIC 0200)

3. Partnership (23) with Micro, Small and Medium Sized Enterprises and Cooperatives (24)

Rattan Exploitation, Bamboo Exploitation, Aquilaria malaccensis (gaharu) Exploitation, Shellac Exploitation, Alternative crop Plant (Sago) Exploitation, Pine Sap Exploitation, Resin Exploitation, Eaglewood Exploitation, Exploitation of Latex Producing Plants (ISIC 0200)

4. Special Permit from the Minister of Forestry

« Development of Technology used on plant and wildlife genetics (ISIC 0200).

Services Incidental to Forestry

Industries Closed to Foreign Investors

* Contractors in the field of lumbering (CPC 88140)

Source of Measure:

- Law No. 41 of 1999 Concerning Forestry

- Law No. 5 of 1990 Concerning Conservation of Natural Resources and Its Ecosystems

- Government Regulation No. 6 of 2007 as amended by Government Regulation No. 3 of 2008 Concerning Forest Administration and Compilation of Forest Management Planning and Utilization of Forest

- Government Regulation No. 36 of 2010 Concerning Natural Tourism Concession in the National Park Utilization Zone, Grand Forest Park, Nature Tourism Park

- Government Regulation No. 8 of 1999 Concerning Utilization of Plant and Wild Animal Species

- Presidential Regulation of The Republic of Indonesia No. 36 of 2010 on List of Business Fields Closed to Investment and Business Fields Open, with Conditions, to Investment

- Government Policy

(23) For this reservation, Partnership with Micro, Small and Medium Sized Enterprises and Cooperatives means cooperation between micro, small and medium size enterprise and Cooperatives and foreign investors, which may take any of the following forms: joint-operation (plasma-core), sub-contracting, franchise, distributorship, general trading, joint venture and outsourcing.
(24) For the purpose of this reservation, the definition of Micro, Small, and Medium Sized Enterprises (UMKM) can be found in Law No. 20 of 2008. For the definition of Cooperatives can be found in Law

20.

Sector: Mining & Quarrying Services Incidental to Mining & Quarrying

Sub-Sector

Industry Classification: ISIC (see below) CPC (see below)

Level of Government: Central

Type of Obligation: National Treatment

Description of Measure: Certain restrictions/requirements which may be inconsistent with National Treatment may be imposed to foreign investors on the establishment of the following line of businesses in Indonesia :

Mining & Quarrying

1. Closed to Foreign Investors

Sea Sand Extraction (ISIC 1410)

2. Foreign Capital Ownership Limitation

Geothermal Drilling (maximum foreign capital ownership 95%) (ISIC 1110, 1120)

Oil and Gas Drilling Offshore outside of Eastern Indonesia Territory (maximum foreign capital ownership 95%) (ISIC 1110, 1120)

Oil and gas drilling onshore (maximum foreign capital ownership 95%) (ISIC 1110, 1120)

3. Special Permit from Relevant Ministerial/Government Agencies

Radioactive Mineral Mining (ISIC 1200). Special Permit is required from the National Agency for Atomic Energy (BATAN)

Drilling of crude oil and gas on fee or contract basis (ISIC 1120). Special permit is required from Minister of Energy and Mineral Resources on condition of cooperation with national enterprises and only offshore drilling.

Services Incidental to Mining & Quarrying

1. Closed Only for Foreign Investors:

Services of bottling and filling of Liquified Petroleum Gas (LPG) (CPC 8830)

2. Open with certain restriction:

Operation and Maintenance Services of Geothermal Facility (maximum foreign capital ownership 90%) (ISIC 8830) Operation and Maintenance Services of Oil and Gas Facility (maximum foreign capital ownership 95%) (ISIC 8830)

Services incidental to the following general mining activities (CPC 8830) (Special Permit from the Minister of Energy and Mineral Resources)

- Research for general investigation and exploration of mines in offshore or onshore with various research methods

- Laboratory analysis and mini processing

- Research and feasibility study on environment

- Mine construction, cutting, top layer excavation, mining and mine transportation and mine reclamation

- Consultancy on mining

- Operation and consultancy on planning of building construction and other facilities in surrounding general mining project

- Other business directly related and supporting mining business

Source of Measure:

Law No. 22 of 2001 Concerning Oil and Gas Mining

Law No.4 of 2009 Concerning Mineral and Coal Mining

Law No.27 of 2003 Concerning Geothermal

Presidential Regulation of The Republic of Indonesia No. 36 of 2010 on List of Business Fields Closed to Investment and Business Fields Open, with Conditions, to Investment Presidential Decree No. 21 of 2001 concerning Lubricant Supply and Services

Government Regulation No. 23 of 2010 Concerning the Implementation of Mineral and Coal Mining Activities Government Regulation No. 59 of 2007 as amended by Government Regulation No 70 of 2010 Concerning Geothermal Energy & Mineral Resources Minister Regulation No. 20 of 2008 concerning Enactment of Indonesia's National Work Competence Standards in Oil and Gas Sector

Government Policy

21.

Sector: Fishery

Sub-Sector: Coral

Industry Classification: ISIC 0500

Level of Government: Central

Type of Obligation: National Treatment

Description of Measure: Certain restrictions/requirements which may be inconsistent with National Treatment may be imposed to foreign investors on the establishment of the following line of businesses in Indonesia :

1. Closed to Foreign Investors and Special Permit from Relevant Ministerial/Government for Domestic Investors

Utilization (exploitation) and distribution of coral/decorative coral from nature for aquarium usage

Utilization (exploitation) and distribution of coral/death coral resulted from transplantation/propagation technique

2. Foreign Capital Ownership Limitation

Coral breeding/cultivating with maximum foreign capital ownership of 49%

Source of Measure:

Law No. 27 of 2007 concerning Management of Coastal Areas and Small Islands

Law No. 31 of 2004 as amended by Law No. 45 of 2009 Concerning Fishery

Law No. 5 of 1983 Concerning Indonesia's Exclusive Economic Zone

Presidential Regulation No.36 of 2010 Concerning The List of Businesses Closed and List of Businesses Opened With Reservation In The Investment Sector

Regulation of the Minister of Marine Affairs and Fisheries of the Republic of Indonesia No. PER.O5/MEN/2008 as amended by No. PER.12/MEN/2009 regarding Capture Fishery Business. Regulation of the Minister of Marine Affairs and Fisheries of the Republic of Indonesia No. PER.12/MEN/2007 regarding Aquaculture Business Licensing

Regulation of the Minister of Marine Affairs and Fisheries of the Republic of Indonesia No. PER.O5/MEN/2009 regarding Aquaculture Business Scale

Decree of the Minister of Forestry of the Republic of Indonesia No. 447/Kpts-II/2003 regarding Procedures on Exploitation or Capturing and Distribution of Wild Plants and Animals

Government Policy

  • Article   1 Objective 1
  • Article   2 Guiding Principles 1
  • Article   3 Scope of Application 1
  • Article   4 Definitions 1
  • Article   5 National Treatment 1
  • Article   6 Most-favoured-nation Treatment (4) 1
  • Article   7 Prohibition of Performance Requirements 1
  • Article   8 Senior Management and Board of Directors 1
  • Article   9 Reservations 1
  • Article   10 Modification of Commitments 1
  • Article   11 Treatment of Investment 1
  • Article   12 Compensation In Cases of Strife 1
  • Article   13 Transfers 1
  • Article   14 Expropriation and compensation (9) 2
  • Article   15 Subrogation 2
  • Article   16 Measures to safeguard the balance-of-payments 2
  • Article   17 General exceptions 2
  • Article   18 Security exceptions 2
  • Article   19 Denial of benefits 2
  • Article   20 Special formalities and disclosure of information 2
  • Article   21 Transparency 2
  • Article   22 Entry, temporary stay and work of investors and key personnel 2
  • Article   23 Special and differential treatment for the newer asean member states 2
  • Article   24 Promotion of investment 2
  • Article   25 Facilitation of investment 2
  • Article   26 Enhancing asean integration 2
  • Article   27 Disputes between or among member states 2
  • Section   B Investment dispute between an investor and a member state 2
  • Article   28 Definitions 2
  • Article   29 Scope of coverage 2
  • Article   30 Conciliation 2
  • Article   31 Consultations 2
  • Article   32 Claim by an investor of a member state 2
  • Article   33 Submission of a claim 2
  • Article   34 Conditions and limitations on submission of a claim 3
  • Article   35 Selection of arbitrators 3
  • Article   36 Conduct of the arbitration 3
  • Article   37 Consolidation 3
  • Article   38 Expert reports 3
  • Article   39 Transparency of arbitral proceedings 3
  • Article   40 Governing law 3
  • Article   41 Awards 3
  • Article   42 Institutional arrangements 3
  • Article   43 Consultations by member states 3
  • Article   44 Relation to other agreements 3
  • Article   45 Annexes, schedule and future instruments 3
  • Article   46 Amendments 3
  • Article   47 Transitional arrangements relating to the asean iga and the aia agreement 3
  • Article   48 Entry into force 3
  • Article   49 Depositary 3
  • ANNEX 1  Approval in writing 3
  • ANNEX 2  Expropriation and compensation 3
  • Modality for the elimination/improvement of investment restrictions and impediments in asean member states 3
  • Protocol to amend the asean comprehensive investment agreement 4
  • 1 Amendment to article 9 (reservations) of the acia 4
  • 2 Amendments to article 10 (modification of commitments) of the acia 4
  • 3 Amendments to article 42 (institutional arrangements) of the acia 4
  • 4 Insertion of annex 3 to the acia 4
  • 5 Transitory provisions 4
  • 6 Final provisions 4
  • Appendix 1  Template for notification 4
  • Appendix 2  Supplementary note 4
  • Second protocol to amend the asean comprehensive investment agreement 4
  • 1 Amendment to the definition of 'natural person' 4
  • 2 Amendments to article 7 (prohibition of performance requirements)' 4
  • 3 Final provisions' 4
  • Schedule to the asean comprehensive investment agreement  5
  • HEADNOTE  List of reservations 5
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