• Exploitation of Swallow Nests in nature (ISIC 0122)
b. 100% Domestic Equity Participation:
• Exploitation of wood forest products from the natural forests (ISIC 0200)
• Growing and trading of breeds and seeds of forests trees/plants (export and import of breeds and seeds of forests trees/plants) (ISIC 5121)
• Exploitation of water resources in forest area (ISIC 0200)
• Capturing and trading of wild plants and wild animal from the natural wildlife habitat (ISIC 0150).
13. Sector: All Sectors
Sub-Sector:
Industry Classification:
Obligations Concerned: National Treatment (Article 14.4)
Level of Government:Central
Source of Measure: Law No. 25 of 2007 Concerning Investment - Law No. 4 of 2009 Concerning Mineral and Coal Mining - Law No. 1 of 2014 Concerning the Amendment of Law No. 27 Concerning the Management of Coastal Areas and Small Islands - Government Regulation No.20 of 1994 Concerning Share Ownership in Companies Set Up Under Foreign Capital Investments. - Government Regulation No. 23 of 2010 Concerning the Implementation of Mineral and Coal Mining Activities Jo. Government Regulation No. 77 of 2014 Concerning Third Amendment Jo. Government Regulation No. 1 of 2017 Concerning Fourth Amendment. - Ministerial Regulation No. 9 of 2017 Concerning Procedures of Divestment of Shares and Mechanism on Divestment Stock Pricing.
Description: Investment
1. As may be required by the relevant regulatory authorities, a company in which foreign investors (6) own 100 per cent shares, subject to prior notification before the grant of the license, after a certain period since commencement of commercial production, the said foreign investors should sell a part of the company’s share to domestic investors (7).
2. In the case of the Mineral and Coal Mining sub-sector (8) , a mining business license (‘Izin Usaha Pertambangan’) for foreign investment (9) shall be granted by the Minister of Energy and Mineral Resources of the Republic of Indonesia. Subject to prior notification before the grant of a mining business license (‘Izin Usaha Pertambangan’), five years after the commencement of production, foreign shareholders (10) of a foreign investment should sell their shares gradually to Indonesian shareholders (11) according to the following priorities :
1) central government,
2) provincial government,
3) regencies/municipalities,
4) state owned enterprises (‘Badan Usaha Milik Negara’ and ‘Badan Usaha Milik Daerah’); and
5) national private business entity (12).
The shares of the said Indonesian shareholders shall be at least as the following :
a. 20 per cent of total shares in the 6th year;
b. 30 per cent of total shares in the 7th year;
c. 37 per cent of total shares in the 8th year;
d. 44 per cent of total shares in the 9th year;
e. 51 per cent of total shares in the 10th year.
14. Sector: Mining & Quarrying
Sub-Sector:
Industry Classification: ISIC 1010, 1020, 1030, 1310, 1320
Obligations Concerned: National Treatment (Article 14.4)
Level of Government: Central
Source of Measure: Law No. 4 of 2009 Concerning Mineral and Coal Mining - Government Regulation No. 23 of 2010 Concerning the Implementation of Mineral and Coal Mining Activities Jo. Government Regulation No. 1 of 2017 Concerning Fourth Amendment of Government Regulation No. 23 of 2010 - Regulation of the Minister of Energy and Mineral Resources No. 11 of 2018 Concerning the Procedure for Granting Area License, and Reporting on Mineral and Coal Mining Activities.
Description: Investment
Mining Business Licenses are, hereinafter referred to as WIUP, which refers to an area given to the holder of a Mining Business License. Foreign investors or legal entities organised under the laws of another country that are seeking to make an investment in Indonesia are prohibited from participating in the auction of metallic mineral and coal WIUP with the size under 500 Hectares.
15. Sector: Manufacturing, Agriculture, Fishery, Forestry
Sub-Sector:
Industry Classification:
Obligations Concerned: National Treatment (Article 14.4) Most-Favoured Nation Treatment (Article 14.5) Prohibition of Performance Requirements (Article 14.6) Senior Management and Board of Directors (Article 14.10)
Level of Government: Central
Source of Measure: Presidential Regulation of The Republic of Indonesia No. 44 of 2016 Concerning Lists of Business Fields That Are Closed to Investment and Business Fields That Are Conditionally Open For Investment.
Description: Investment
The following lines of business are prohibited for investment:
- Cultivation of marijuana (ISIC 0111)
- Catching of fish species listed in Appendix I to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (“CITES”) (ISIC 0500)
- Lifting of valuable artefacts from shipwrecks (ISIC 6303)
- Utilisation (collection) of coral from nature for construction materials/lime/calcium, aquarium, and souvenirs/jewellery as well as living coral or dead coral (recently dead) coral from nature (ISIC 0500)
- Chloral alkali making industry under mercury process (ISIC 2411)
- Industry of pesticide active substances : Dichloro Diphenyl Trichloroethane (DDT), Aldrin, Endrin, Dieldrin, Chlordane, Heptachlor, Mirex, and Toxaphene (ISIC 2421)
- Industrial chemical industry and Ozone Depleting Substances (BPO) : Polychlorinated Biphenyl (PCB), Hexachlorobenzene and Carbon Tetrachloride (CTC), Mthyl Chloroform, Methyl Bromide, Trichloro Fluoro ANNEX I – SCHEDULE - INDONESIA – 28 of 32 Methane (CFC-11), Dichloro Trifluoro Ethane (CFC-12), Trichloro Trifluoro Ethane (CFC-113), Dichloro Tetra Fluoro Ethane (CFC-114), Chloro Pentafluoro Ethane (CFC-115), Chloro Trifluoro Methane (CFC-13), Tetrachloro Difluoro Ethane (CFC-112), Pentachloro Fluoro Ethane (CFC-111), Chloro Heptafluoro Propane (CFC-217), Dichloro Hexafluoro Propane (CFC-216), Trichloro Pentafluoro Propane (CFC-215), Tetrachloro Tetrafluoro Propane (CFC-214), Pentachloro Trifluoro Propane (CFC-213), Hexchloro Difluoro Propane (CFC-211), Bromo Chloro Difluoro Methane (Halon-1211), Bromo Trifluoro Methane (Halon 1301), Dibromo Tetrafluoro Ethane (Halon-2402), R-500, R-502 (ISIC 2411)
- Industry of chemicals listed in Schedule I of the Chemical Weapons Convention as incorporated in Appendix I to Law Number 9 Year 2008 Concerning Use of Chemicals as Chemical Weapons (ISIC 2411)
- Alcoholic hard liquor industry (ISIC 1551)
- Alcoholic beverages industry : Wine (ISIC 1552)
- Malt beverages industry (ISIC 1553).
16. Sector: All Sectors
Sub-Sector:
Industry Classification:
Obligations Concerned: Prohibition of Performance Requirements (Article 14.6)
Level of Government: Central and Regional
Source of Measure: All existing non-conforming measures.
Description: Investment
All existing non-conforming measures.
17. Sector: Energy Infrastructure
Sub-Sector:
Industry Classification:
Obligations Concerned: National Treatment (Article 14.4)
Level of Government: Central
Source of Measure:
Description: Investment
a. Foreign equity in a Power Plant >10 MW (KBLI 35101) is restricted to no more than 95 per cent of the capital share.
b. Foreign equity in a Geothermal Power Plant <= 10 MW (KBLI 35101) is restricted to no more than 51 per cent of the capital share.
18. Sector: Transport Infrastructure
Sub-Sector:
Industry Classification:
Obligations Concerned: National Treatment (Article 14.4)
Level of Government: Central
Source of Measure:
Description: Investment
Foreign equity in highway, bridge and tunnel concessions is restricted to no more than 67 per cent of the capital share.
Annex II. EXPLANATORY NOTES
1. The Schedule of a Party to this Annex sets out, in accordance with Article 9.7 (Non-Conforming Measures) and Article 14.14 (Non-Conforming Measures), the specific sectors, sub-sectors or activities for which that Party may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
(a) Article 9.3 (National Treatment) or Article 14.4 (National Treatment);
(b) Article 9.4 (Most-Favoured-Nation Treatment) or Article 14.5 (Most-Favoured-Nation Treatment);
(c) Article 9.5 (Market Access);
(d) Article 9.6 (Local Presence);
(e) Article 14.6 (Prohibition of Performance Requirements);
(f) Article 14.10 (Senior Management and Boards of Directors);
2. Each Schedule entry sets out the following elements:
(a) Sector refers to the sector for which the entry is made;
(b) Sub-Sector, where referenced, refers to the specific sub-sector for which the entry is made;
(c) Industry Classification, where referenced, refers to the activity covered by the non-conforming measure, according to the provisional CPC codes as used in the Provisional Central Product Classification (Statistical Papers Series M No. 77, Department of International Economic and Social Affairs, Statistical Office of the United Nations, New York, 1991);
(d) Obligations Concerned specifies the obligations referred to in paragraph 1 that, in accordance with Article 14.14 (Non-Conforming Measures) and Article 9.7 (Non-Conforming Measures), do not apply to the sectors, sub-sectors or activities listed in the entry;
(e) Description sets out the scope or nature of the sectors, sub-sectors or activities covered by the entry to which the reservation applies; and
(f) Existing Measures, where specified, identifies, for transparency purposes, a non-exhaustive list of existing measures that apply to the sectors, sub- sectors or activities covered by the entry.
3. In accordance with Article 9.7 (Non-Conforming Measures) and Article 14.14 (Non-Conforming Measures), the articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the sectors, sub-sectors and activities identified in the Description element of that entry.
ANNEX II. SCHEDULE OF AUSTRALIA
INTRODUCTORY NOTES
1. For greater certainty, where Australia has more than one entry in its Schedule to Annex II that could apply to a measure, each entry is to be read independently, and is without prejudice to the application of any other entry to the measure.
2. Commitments on measures with respect to or relating to trade in financial services are undertaken subject to the limitations and conditions set forth in Chapter 9 (Trade in Services), Chapter 10 (Financial Services), Chapter 14 (Investment), this Section and the Schedule below.
3. Australia reserves the right to adopt or maintain non-discriminatory limitations concerning admission to the market of new financial services where such measures are required to achieve prudential objectives. Australia may determine the institutional and juridical form through which a new financial service may be supplied and may require authorisation for the supply of the service. Where authorisation to supply a new financial service is required, the authorisation may only be refused for prudential reasons.
4. For the avoidance of doubt, in relation to education services, nothing in Chapter 9 (Trade in Services) or Chapter 14 (Investment) shall interfere with:
(a) the ability of individual education and training institutions to maintain autonomy in admissions policies (including in relation to considerations of equal opportunity for students and recognition of credits and degrees), in setting tuition rates and in the development of curricula or course content;
(b) non-discriminatory accreditation and quality assurance procedures for education and training institutions and their programs, including the standards that must be met;
(c) government funding, subsidies or grants, such as land grants, preferential tax treatment and other public benefits, provided to education and training institutions; or
(d) the need for education and training institutions to comply with non-discriminatory requirements related to the establishment and operation of a facility in a particular jurisdiction.
1. Sector: All Sectors
Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Prohibition of Performance Requirements (Article 14.6)
Description: Trade in Services and Investment (1)
Australia reserves the right to adopt or maintain any measure with respect to a proposed acquisition by a foreign person (2) of an interest in Australian land (3), other than developed commercial land or land that is used wholly and exclusively for a primary production business.
Existing Measures: Australia’s Foreign Investment Framework, which comprises Australia’s Foreign Investment Policy, the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA); Foreign Acquisitions and Takeovers Regulation 2015 (Cth); Foreign Acquisitions and Takeovers Fees Imposition Act 2015 (Cth); Foreign Acquisitions and Takeovers Fees Imposition Regulation 2015 (Cth); Financial Sector (Shareholdings) Act 1998 (Cth); and Ministerial Statements.
2. Sector: All Sectors
Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Most-Favoured-Nation Treatment (Article 9.4 and Article 14.5) Prohibition of Performance Requirements (Article 14.6) Senior Management and Boards of Directors (Article 14.10)
Description: Trade in Services and Investment (4)
Australia reserves the right to adopt or maintain any measure with respect to the proposed acquisition by a foreign person (5) of an interest in agricultural land (6) where the cumulative value of agricultural land owned by the foreign person alone or together with associates, including the proposed acquisition, is above $A 15 million. Australia reserves the right to adopt or maintain any measure with respect to the proposed acquisition by a foreign person of an interest in an agribusiness where the cumulative value of the interest held by the foreign person in that agribusines (7), alone or together with associates, including the proposed acquisition, is above $A 55 million.
Existing Measures: Australia’s Foreign Investment Framework, which comprises Australia’s Foreign Investment Policy, the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA); Foreign Acquisitions and Takeovers Regulation 2015 (Cth); Foreign Acquisitions and Takeovers Fees Imposition Act 2015 (Cth); Foreign Acquisitions and Takeovers Fees Imposition Regulation 2015 (Cth); Financial Sector (Shareholdings) Act 1998 (Cth); and Ministerial Statements.
3. Sector: All Sectors
Obligations Concerned: National Treatment (Article 9.3 and Article 14.4) Most-Favoured-Nation Treatment (Article 9.4 and Article 14.5) Market Access (Article 9.5) Local Presence (Article 9.6) Prohibition of Performance Requirements (Article 14.6) Senior Management and Boards of Directors (Article 14.10)
Description: Trade in Services and Investment
Australia reserves the right to adopt or maintain any measure that it considers necessary for the protection of its essential security interests.
Existing Measures: Australia’s Foreign Investment Framework, which comprises Australia’s Foreign Investment Policy, the Foreign Acquisitions and Takeovers Act 1975 (Cth) (FATA); Foreign Acquisitions and Takeovers Regulation 2015 (Cth); Foreign Acquisitions and Takeovers Fees Imposition Act 2015 (Cth); Foreign Acquisitions and Takeovers Fees Imposition Regulation 2015 (Cth); Financial Sector (Shareholdings) Act 1998 (Cth); and Ministerial Statements.
Sector: All Sectors
Obligations Concerned: Market Access (Article 9.5)
Description: Trade in Services
Australia reserves the right to adopt or maintain any measure with respect to the supply of a service by the presence of natural persons, subject to the provisions of Chapter 12 (Movement of Natural Persons), that is not inconsistent with Australia’s obligations under Article XVI of GATS.
Existing Measures:
5. Sector: All Sectors