- Law No. 13 of 2003 Concerning Manpower - Presidential Decree No. 75 of 1995 Concerning The Employment of Expatriates
7.
Sector: All Sectors
Sub-Sector
Industry Classification
Level of Government: Central and Regional
Type of Obligation: National Treatment
Description of Measure: National Treatment may not apply to any measure with regard to privatization (9), or divestment of assets through transfer or disposal of equity interests or assets of State owned enterprises including Badan Usaha Milik Negara and Badan Usaha Milik Daerah (10).
Source of Measure: Law No. 19 of 2003 Concerning State Owned Enterprises
8.
Sector : All Sectors
Sub-Sector
Industry Classification
Level of Government : Central
Type of Obligation : National Treatment Senior Management and Board of Directors
Description of Measure : National Treatment and SMBD shall not apply to any measure with regard to special preferences given for Micro, Small and Medium- sized Enterprises, and Cooperatives denoted as Usaha Mikro, Kecil, Menengah dan Koperasi (UMKMK) (11).
Source of Measure :
- Law No. 20 of 2008 Concerning Micro, Small and Medium Enterprises
- Law No. 25 of 1992 Concerning Cooperatives
9.
Sector : Agriculture and Fishery
Sub-Sector
Industry Classification
Level of Government : Central
Type of Obligation : National Treatment
Description of Measure : National Treatment shall not apply to any measures with respect to activities which relate to national food security.
Source of Measure :
- Article 33 of 1945 National Constitution
- Law No. 7 of 1996 Concerning Foods - Government Regulation No. 68 of 2002 Concerning Food Security - Government Policy
10.
Sector : All Sectors
Sub-Sector
Industry Classification
Level of Government : Central
Type of Obligation : National Treatment
Description of Measure: National Treatment shall not apply to any measure affecting the type of activities which may be conducted on land or the usage of land, including but not limited to, land zoning, land use and urban planning policies.
Source of Measure : Law No. 26 of 2007 Concerning Spatial Planning
11.
Sector: Fishery
Sub-Sector
Industry Classification: ISIC 0500
Level of Government: Central
Type of Obligation: National Treatment
Description of Measure: Traditional fishery (12) is not allowed to be undertaken by foreign investors (13). Foreign investors are allowed to undertake fishery activities in Indonesia and its Exclusive Economic Zone, subject to licensing conditions imposed by the relevant regulatory authorities.
Source of Measure:
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
Government Policy
12.
Sector : All Sectors
Sub-Sector
Industry Classification
Level of Government : Central
Type of Obligation : National Treatment
Description of Measure : National Treatment shall not apply to any measures relating to portfolio investment
Source of Measure : Government Policy
13.
Sector: All Sectors
Sub-Sector
Industry Classification
Level of Government: Central
Type of Obligation: National Treatment
Description of Measure: National Treatment may not apply in the measures relating to the employment of expatriates. Restrictions may be imposed on the number, duration and type of expatriates employed.
Source of Measure:
- Law No. 13 of 2003 Concerning Manpower
- Presidential Decree No. 75 of 1995 Concerning The Employment of Expatriates
- Manpower and Transmigration Minister Regulation No. 2 of 2008 Concerning Procedures of Employment of Expatriates
14.
Sector : All Sectors
Sub-Sector
Industry Classification
Level of Government : Regional
Type of Obligation : National Treatment
Description of Measure : National Treatment may not apply to any measures relating to the issuance of investment implementation licenses/permits (13) at the provincial level (14), which shall be considered on a case by case basis.
Source of Measure :
- Law No. 32 of 2004 Concerning Regional Government
- Provincial Regulations
15.
Sector: All Sectors
Sub-Sector
Industry Classification
Level of Government: Central
Type of Obligation: National Treatment Senior Management and Board of Directors
Description of Measure: NT and SMBD may not apply in the event where activities restricted to designated enterprises (15) are liberalized to those other than the designated entities, or in the event where such designated enterprise no longer operate on a non-commercial basis.
Source of Measure:
- Government Regulation No. 13 of 1998 Concerning Public Enterprise
- Administrative Guidelines
16.
Sector: All Sectors
Sub-Sector
Industry Classification
Level of Government: Central
Type of Obligation: National Treatment Senior Management and Board of Directors
Description of Measure: For companies/projects that are in existence before the entry into force of this Agreement, conditions imposed in their approvals for license/permits shall continue to apply. Any changes to these conditions shall be subject to approval.
Source of Measure: Head of Investment Coordinating Board Regulation No. 12 of 2009 Concerning Guidelines and Procedures For Investment Application
17.
Sector: Manufacturing Services Incidental to Manufacturing
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 :
Manufacturing
1. Closed to Foreign Investors.
Salting/drying fish and other waters biota industry and smoked fish industry (ISIC 1512)
Thread coloring from natural and artificial fiber to be patterned/ dipped/tied thread, performed by hand-work tools (ISIC 1711)
Hand painted Batik industry ( ISIC 1712)
Rubber curing industry (ISIC 2519)
Manual or semi mechanical processed hand tool industry for handwork and cutting ( ISIC 2893)
Clay made household necessities industry especially pottery (ISIC 2691)
Handicrafts industry that carries specific cultural asset, art value using natural or artificial raw material:
- Embroidery industry (ISIC 1729)
- Rattan dan bamboo plait industry; plant plait other than rattan and bamboo industry; carving handicraft from wood, except furniture industry; kitchen household industry from wood, rattan and bamboo; wood, rattan, cork industry that is not classified in other locations (ISIC 2029)
- Traditional musical instruments (ISIC 3692)
Hand-tools industry needed for farming to prepare land, process production, post harvest and processing except hoe and shovel (ISIC 2893)
Palm sugar (ISIC 1542)
Processed food from seeds and roots, sago, gnetum gnemon nut and copra industry, soya sauce industry, soy made food and peanuts other than soya sauce, fempe, tofu industry, cracker, chips, peanut cracker, and the like (ISIC 1513; 1514;1549)
Roots peeling and cleaning industry (ISIC 1531)
Traditional medicine Industry (ISIC 2423)
Saw Mill Industry (Production Capacity up to 2000M3/ Year),
Primary Rattan Industry (ISIC 2010)
Mangrove Semi-Finished Goods Art carving industry, except furniture, Kitchen Appliances industry, Goods industry that is not classified elsewhere (ISIC 2029)
Knitted cloth industry especially Lace (ISIC 1730)
Moslem woman's praying cloth, scarf, head scarf, and other traditional industries (ISIC 1810)
Cloth printing industry especially Batik and traditional patterns (ISIC 1712)
Plantation processing product business industry below certain capacity according to Regulation of Minister of Agriculture Number 26 of 2007:
- Fiber and Seed Cotton Industry (ISIC 1514, 1711)
- Crude oil industry (edible oil) from vegetable and animal, coconut oil industry, palm oil industry, rubber to be sheet, thick latex, crumb rubber industry, raw castor oil industry, sugar, sugar cane and sugar cane residue industry, black tea/green tea industry, dry tobacco leaves industry, Copra, Fiber, Coconut Charcoal, Dust, Nata de coco industry, Coffee sorting, cleaning and peeling industry, Cocoa cleaning, peeling and drying industry, cleaning and peeling seed other than coffee and cacao industry, cashew to be dry seed cashew and Cashew Nut Shell Liquid (CNSL) Industry, Peppercorn to be dry white pepper and dry black pepper industry (ISIC 1514, 2429, 1542, 1549, 1600, 2519, 1531)
2. Closed to Foreign Investors and Special Permit from Relevant Ministerial/ Government for Domestic Investors.
Production of Weapons, Ammunition, explosive devices and War Equipment with special permit from the Minister of Defense(ISIC 2927, 2429)
3. Special Permit from Relevant Ministerial/ Government Agencies and Foreign Capital Ownership Limitation
Raw Material for Explosives (Ammonium Nitrate) with maximum foreign equity ownership of 49% and a special permit from the Minister of Defense (ISIC 2411)
Industry of explosive materials and its components for industry need with maximum foreign equity ownership of 49% and a special permit from the Minister of Defense (ISIC 2429)
Sugar Industry (White Crystal Sugar, Refined Crystal Sugar and Raw Crystal Sugar) with maximum foreign equity ownership of 95% and a special permit from the Minister of Industry and the Minister of Agriculture, and it has to be integrated with the sugar plantation. The manufacturing of raw crystal sugar is required for any sugar manufacturer with sugarcane input capacity exceeding 8000 tons per day (ISIC 1542)
Processing of plantation product industry (similar capacity or exceeding a certain capacity, according to Regulation of Minister of Agriculture Number 26 of 2007 with maximum foreign capital ownership of 95% with a special permit from Minister of Agriculture.
- Fiber and Seed Cotton Industry (ISIC1514, 1711)
- Crude oil industry (edible oil) from vegetable and animal, coconut oil industry, palm oil industry, rubber to be sheet, thick latex, crumb rubber industry, raw castor oil industry, sugar, sugar cane and sugar cane residue industry, black tea/green tea industry, dry tobacco leaves industry, Copra, Fiber, Coconut Charcoal, Dust, Nata de coco industry, Coffee sorting, cleaning and peeling industry, Cocoa cleaning, peeling and drying industry, cleaning and peeling seed other than coffee and cacao industry, cashew to be dry seed cashew and Cashew Nut Shell Liquid (CNSL) Industry, Peppercorn to be dry white pepper and dry black pepper industry (ISIC 1514, 2429, 1542, 1549, 1600, 2519, 1531)