Subsector :
(a) International Passenger Transport (CPC 7211)
(b) International Freight Transport (CPC 7212)
Level of Government : Central
Obligations Concerned : National Treatment. Market Access
Description : Trade in Services
Foreign service suppliers are not permitted to establish a commercial presence in Indonesia for international passenger or freight maritime transport, except through a joint venture with foreign equity participation not exceeding 49 per cent.
The joint venture must operate at least one Indonesian-flagged vessel with a minimum 5,000 gross tonnage and crewed by Indonesian nationals.
Foreign shipping enterprises can only provide international passenger transportation services to and from seaports and special ports that are open for foreign trade (1) and are required to appoint an Indonesian shipping enterprise or shipping agent enterprise as its General Agent.
Source of Measure :
- Law No. 17 of 2008 concerning Maritime Law
- Government Regulation No. 20 of 2010 concerning Sea Transport as amended by Government Regulation No. 220f 2011
- Presidential Regulation No. 49 of 2021 concerning the Amendment to Presidential Regulation No. 10 of 2027 concerning Business Fields in the Field of Capital Investment
- Minister of Trade Regulation No. 82 of 2017 concerning Provisions for The Use of Sea Transportation and National Insurance for The Export and Import of Certain Goods as amended by Minister of Trade Regulation No. 80 of 2018 concerning the Second Amendment Minister of Trade Regulation No. 82 of 2017
4. Sector : Construction Services
Subsector :
(a) Construction Work for Buildings (CPC 512) excluding one- and two-dwelling buildings (CPC 51210)
(b) Construction Work for Civil Engineering (CPC 513)
(c) Assembly and Erection of Prefabricated Constructions (CPC 514)
(d) Installation Work (CPC 516)
(e) Building Completion and Finishing Work (CPC 517)
(f) Pre-Erection Work at Construction Site (CPC 511) excluding Site Investigation Work (CPC 51110) and Site Formation and Clearance Work (CPC 51113)
(g) Special Trade Construction (CPC 515)
(h) Renting Services Related Equipment for Construction or Demolition of Building or Civil Engineering Works with Operator (CPC 518)
Level of Government : Central
Obligations Concerned : National Treatment
Description : Trade in Services
All existing non-conforming measures at the central level of government.
Source of Measure : All existing non-conforming measures at the central level of government.
LIST B. EXPLANATORY NOTES
1. This List B sets out, pursuant to Article 12 (Schedules of Non-Conforming Measures) of Chapter 8 (Trade in Services), the specific sectors, subsectors or activities for which that Indonesia may maintain existing, or adopt new or more restrictive, measures that do not conform with obligations imposed by:
(a) Article 4 (National Treatment) of Chapter 8 (Trade in Services);
(b) Article 5 (Market Access) of Chapter 8 (Trade in Services);
(c) Article 9 (Most-Favoured-Nation Treatment) of Chapter 8 (Trade in Services); or
(d) Article 10 (Local Presence) of Chapter 8 (Trade in Services).
2. Each entry in this List B sets out the following elements:
a) Sector refers to the sector for which the entry is made;
b) Subsector, refers to the specific subsector for which the entry is made;
c) Industry Classification, where referenced in sector or subsector row, refers to the activity covered by the non-conforming measure, according to:
(i) 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). The appearance of ** against individual CPC listings indicates that the service specified constitutes only a part of the total range of activities covered by the CPC concordance;
(ii) Indonesian Standard of Industrial Classification (Kiasifikasi Baku Lapangan Usaha Indonesia/KBLI) 2015; or
(iii) W120 refers to Services Sectoral Classification List (MTN.GNS/W/120 of 10 July 1991);
(d) Obligations Concerned specifies the obligations referred to in Paragraph 1 that, pursuant to Article 12 (Schedules of Non-Conforming Measures), do not apply to the listed measures; and
(e) Description sets out the non-conforming measure for which the entry is made;
3. An entry that reserves against Article 10 (Local Presence) of Chapter 8 (Trade in Services) need not be reserved against Article 4 (National Treatment) of Chapter 8 (Trade in Services), however it shall also be considered as a reservation against Article 4 (National Treatment) of Chapter 8 (Trade in Services).
4. In accordance with Article 12 (Schedules of Non-Conforming Measures) of Chapter 8 (Trade in Services), the Articles of this Agreement specified in the Obligations Concerned element of an entry do not apply to the non- conforming measures identified in the Description element of that entry.
5. In the interpretation of an entry, all elements of the entry shall be considered in their totality. The Description element shall prevail over all other elements.
6. For greater certainty, in the case an entry prescribed for all sectors, and that "All sectors" is used in that entry, such entry applies to all sectors including those scheduled in List A and the Appendices to this List (Specific Commitments for Financial Services and Specific Commitments for The Presence of Natural Persons).
7. Commitments with respect to or relating to trade in financial services are undertaken in accordance with Chapter 8 (Trade in Services), Annex 8A (Financial Services) and subject to the limitations, conditions and qualification set out in the Appendix A to this List B (Specific Commitments for Financial Services).
8. For greater certainty, cabotage in maritime transport services shall not be subject to commitments made in this Schedule.
9. The Schedules of other Parties shall not be used to interpret Indonesia's obligations under Chapter 8 (Trade in Services).
10. This note shall form part of Indonesia's reservations.
1. Sector: All sectors
Obligations Concerned: National Treatment. Market Access
Description: Trade in Services
Indonesia reserves the right to adopt or maintain any measures that does not conform with the obligations imposed by Article 4 (National Treatment) and Article 5 (Market Access) of Chapter 8 (Trade in Services), except commitments with respect to:
(a) sectors and subsectors specified in List A;
(b) subsectors specified in entry 10 through entry 96 of this List B;
(c) subsectors specified in the Appendices to this List B (Specific Commitments for
Financial Services and Specific Commitments for The Presence of Natural Persons);
(d) the supply of services through consumption abroad as defined in Article 1 (t)(ii) (Definitions) of Chapter 8 (Trade in Services) on sectors and subsectors specified in List A of this Schedule, entry 10 through entry 96 of this List B, and the Appendix A to this List B (Specific Commitments for Financial Services) unless otherwise indicated as "unbound" in the Appendix A to this List B (Specific Commitments for Financial Services); and
(e) the supply of services through presence of natural persons of a Party in the territory of Indonesia as defined in Article 1(t)(iv) (Definitions) of Chapter 8 (Trade in Services) on sectors and subsectors specified in the Appendix B to this List B (Sector Specific Commitments for The Presence of Natural Persons) subject to the terms, limitations, conditions, and qualifications set out therein.
2. Sector : All sectors
Obligations Concerned : Most-Favoured-Nation Treatment
Description : Trade in Services
Indonesia reserves the right to adopt or maintain any measure that accords more favourable treatment to any service supplier under any international agreement in force or signed prior to the date of entry into force of the Second Protocol.
Indonesia reserves the right to adopt or maintain any measure that accords more favourable treatment to any services or service suppliers under any bilateral or multilateral international agreement signed after the date of entry into force of the Second Protocol, except with respect to the subsectors listed in List A of this Schedule (2) subject to other relevant entry on Article 9 (Most-Favoured-Nation Treatment) of Chapter 8 (Trade in Services) in this List B.
For subsectors not listed in List A, if, after the entry into force of the Second Protocol, Indonesia enters into any agreement that gives more preferential treatment, with other country, other than those among Member States of ASEAN, Indonesia will give consideration, upon request from another Party, to negotiate for the incorporation herein of treatment no less favourable than that provided under the aforesaid agreement.
Notwithstanding the above, Indonesia reserves the right to adopt or maintain any measure that accords differential treatment:
(a) to Member States of ASEAN under any ASEAN agreement open to participation by any Member State of ASEAN, in force or signed after the date of entry into force of this Agreement;
(b) with respect of advantages accorded to adjacent countries to the extent covered by paragraph 3 of Article Il of GATS; and
(c) to any service supplier under any bilateral or multilateral international agreement in force or signed after the date of entry into force of this Agreement involving:
(i) aviation;
(ii) fisheries; or
(iii) maritime matters, including salvage.
3. Sector : All sectors, excluding financial services (3)
Obligations Concerned : Local Presence
Description : Trade in Services
Indonesia reserves the right to adopt or maintain any existing measure that requires a service supplier of another Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its territory as a condition for the cross-border supply of a service (4).
Any non-conforming measure adopted after the entry into force of this Agreement that would be a breach of Article 10 (Local Presence) of Chapter 8 (Trade in Services) with respect to sectors or subsectors in this Schedule shall be deemed to be an existing non-conforming measure and subject to Article 12 (Schedules of Non- Conforming Measures) of Chapter 8 (Trade in Services).
Notwithstanding the above paragraph, Indonesia reserves the right to adopt or maintain any measure that requires a supplier of telecommunication services of another Party to establish or maintain a representative office or any form of enterprise, or to be resident, in its territory as a condition for the cross-border supply of a service.
4. Sector: All sectors
Obligations Concerned: Market Access
Description: Trade in Services
Indonesia reserves the right to adopt or maintain anymeasure with respect to trade in services as defined in Article 1(t)(iii) (Definitions) of Chapter 8 (Trade in Services) that require:
(a) commercial presence of the foreign services supplier to be in the form of joint venture or representative office, unless mentionedotherwise in List A and this List B; and joint venture to be in the form of Limited Liability Enterprise (Perseroan Terbatas); and
(b) not more than 49 per cent of the equity participation of the Limited Liability Enterprise (Perseroan Terbafas) may be owned by foreign partners.
5. Sector: All sectors
Obligations Concerned: National Treatment
Description: Trade in Services
Indonesia reserves the right to adopt or maintain any measure with respect to trade in services as defined in Article 1(t)(iii) (Definitions) of Chapter 8 (Trade in Services) that require:
(a) Non-resident taxpayers to be subject to withholding tax of 20 per cent if they derive the following income from an Indonesian source, inter alia:
(i) Interest;
(ii) Royalties;
(iii) Dividend; or
(iv) Fee from service performed in Indonesia.
(b) Relating to Land Acquisition that no foreign persons are allowed to own land. However, a joint venture enterprise could hold the right for land use (Hak Guna Usaha), and building rights (Hak Guna Bangunan), and they may rent or lease land and property.
6. Sector: All sectors
Obligations Concerned: National Treatment
Description: Trade in Services
Indonesia reserves the right to adopt or maintain any measure with respect to trade in services as defined in Article 1 (t)(iii) (Definitions) of Chapter 8 (Trade in Services) that requires a joint venture supplying services through commercial presence in Indonesia to have a total investment value of more than IDR 10 billion (5) (excluding land and buildings), except in sectors and subsectors where Indonesia has made commitments under GATS.
7. Sector: All sectors
Obligations Concerned: National Treatment
Description: Trade in Services
Article 4 (National Treatment) of Chapter 8 (Trade in Services) may not apply to measures relating to the procedural aspect of investment implementation permits (6) at the provincial level (7).
8. Sector: All sectors
Obligations Concerned: National Treatment. Market Access
Description: Trade in Services
Indonesia reserves the right to adopt or maintain any measure:
(a) for the protection of Indonesian essential security interests; and
(b) governing permanent residents to the extent consistent with Indonesia's commitments under GATS.
9. Sector : All sectors
Obligations Concerned: National Treatment. Market Access
Description : Trade in Services
Indonesia reserves the right to adopt or maintain any measures that require to manage, use, or locate computing facilities in its territory as a condition for the conduct of business in Indonesia, and to require certain information to be stored and processed in Indonesia, when such business is performed for and on behalf of government authorities within the context of public electronic system operators.
Indonesia reserves the right to adopt or maintain any measures that require private electronic system operators to provide access to electronic system and data for the purpose of law enforcement to ensure compliance with domestic laws and regulations, where that measure is in accordance with due process of law.*
Indonesia reserves the right to adopt or maintain any measures that requires retaining and providing access to copies of Strategic Electronic Data (8) in the territory of Indonesia.
*Notwithstanding Article 3 (Scope) of Chapter 10 (Electronic Commerce), this paragraph above does not have the effect of exempting Indonesia from its obligations under Article 17 (Location of Computing Facilities) of Chapter 10 (Electronic Commerce) and Article 18 (Cross-border Transfer of Information by Electronic Means) of Chapter 10 (Electronic Commerce).
(8) For the purposes of this entry, "Strategic Electronic Data" is as provided in the Government Regulation No.71 of 2019 concerning Electronic System and Transaction Operation.
10. Sector: Part of Community, Social and Personal Services
Subsector:
(a) Technical and Vocational Secondary Education Services (electronic, automotive) (CPC 92230);
(b) Language Course and Training (CPC 924); (c) Football and Chess only (CPC 92900); (d) Tourism Consultancy Services (CPC 91136).
Obligations Concerned: National Treatment
Description: Trade in Services
Indonesia reserves the right to adopt or maintain any measure with respect to trade in services as defined in Article 1(t)(iii) (Definitions) of Chapter 8 (Trade in Services) relating to the supply of services of the above subsectors.
11. Sector: Professional Services
Subsector:
(a) Architectural Services (CPC 8671)
(b) Engineering Services (CPC 8672 - except CPC86721, 86725, 86726)
(c) Integrated Engineering Services (CPC 8673)