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Trading restrictions

INDONESIA

Reported in 2018

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
UNCITRAL model law on e-commerce or e-signatures
Indonesia has not adopted the UNCITRAL model law on e-commerce or e-signatures.
Coverage Horizontal
Trading restrictions

INDONESIA

Since 2009, last amended in 2014

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
Bank Indonesia Regulation No. 11/12/PBI/2009, as amended by Bank Indonesia Regulation No. 16/8/PBI
2014 regarding E-money (“PBI 11/2009”)

Circular Letter of Bank Indonesia No. 16/11/DKSP
Regulation No. 11/12/PBI/2009 (as amended by Regulation No. 16/8/PBI 2014) requires that any 'e-money' issuer must be licensed by the Indonesia's Central Bank. Moreover, the Circular Letter of Bank Indonesia requires e-money to have a monetary value. Therefore, Indonesian regulations does not allow for virtual currencies such as bitcoin, which remain unregulated.
Coverage E-money issuers
Trading restrictions

INDONESIA

Reported in 2016
Reported in 2017

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
Circular letter “Concerning the Provision of Application
Services and/or Content over the Internet (OTT)”, followed by a 2017 draft OTT regulation
In March 2016, Indonsia's Ministry of Communication and Informatics (MOCI) released a circular letter “Concerning the Provision of Application Services and/or Content over the Internet (OTT)”, which proposes a range of new regulations on Internet services. The packages include proposed requirements to establish a local business entity to do business with Indonesian citizens, to use a national payment gateway, and to use local IP numbers and store data within Indonesia.

It is reported that the requirements, as proposed, could present compliance problems for foreign service providers and raise competition concerns and trade barriers.

Additionally, a draft OTT regulation was issued in 2017 for public consultation and comments, signalling that the MOCI is still pressing on with these measures, although its contents may change.
Coverage Internet Services
Trading restrictions

INDONESIA

Since 2013

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
Regulation No. 15/2013
There are limitations on foreign ownership in the express delivery services, which could affect e-retailers. Foreigners are not allowed to own more than 49% of these services. Moreover, foreign suppliers are required to limit their activities to provincial capitals with international airports and seaports.
Coverage Foreign delivery services
Trading restrictions

INDONESIA

Since 2014
Since May 2016

Chapter Online sales and transactions  |  Sub-chapter Barriers to fulfillment
Negative Investment List (DNI), as governed by Presidential Regulation No. 39 of 2014, followed by Presidential Decree No. 44/2016
Online retailing and post retailing was formerly closed to foreign ownership. Foreign investors could not participate in e-commerce activities, although there were no foreign investment restrictions for intermediary e-commerce.

Following Presidential Decree No. 44/2016, effective in May 2016, full foreign ownership is allowed for foreign investors who invest at least IDR 100 billion (approx. USD $7.4 million) for the establishment of an e-commerce company in Indonesia.
Coverage E-retailing and post retailing
Trading restrictions

INDONESIA

Since 2014

Chapter Standards  |  Sub-chapter Product screening and testing requirements
Local testing requirement
Since 2014, all wireless and telecommunication end products, including a non-POSTEL approved wireless module, must undergo local testing and obtain the system approval from the Indonesian authority Sumber Daya Dan Perangkat Pos Dan Informatika (SDPPI). Manufacturers may apply to have their Dual Band (2400-2483.5MHz and 5725-5825MHz) access point products tested. The testing process must be conducted by Telkom RisTi Bandung and not by SDPPI test laboratory.
Coverage Wireless and Telecommunication products
Trading restrictions

INDONESIA

Since 1999

Chapter Standards  |  Sub-chapter Product safety certification (EMC/EMI, radio transmission)
National Telecommunication Act No. 36

Ministry of Industry (MOI) Regulation 24/2013 (as revised by MOI Regulation 55/2013)
The National Telecommunication Act No.36 requires certificate of approval for every telecommunication and IT equipment entering Indonesian territory. Such products must be type approved by the Directorate General of Posts and Telecommunications (DG SDPPI or DG PosTel). The approval requires in-country testing for most equipment types, but it can be issued to a foreign manufacturer.

Ministry of Industry (MOI) Regulation 24/2013 requires, as of April 2016, a mutual recognition agreement for the acceptance of test reports from laboratories outside Indonesia. Nevertheless, it is unclear whether any such agreements exist in practice.
Coverage Telecommunication and IT equipment
Trading restrictions

INDONESIA

Since 2016

Chapter Quantitative Trade Restrictions  |  Sub-chapter Local Content Requeriments for commercial market
Indonesian Patent Law No.13/2016
Indonesia's patent law has a local manufacturing requirement. The patent holder is obliged to manufacture the patented product or use the patented process in Indonesia. The law also lays down that non-compliance with the requirement within 36 months from the grant of the patent triggers the possibility to issue a compulsory license or the abolishment of the patent. This provision could prevent the patenting of products, produced by any industry, that are not manufactured in Indonesia.
Coverage Horizontal
Trading restrictions

INDONESIA

Since February 2017

Chapter Quantitative Trade Restrictions  |  Sub-chapter Local Content Requeriments for commercial market
Regulation 6/2017
Regulation 6/2017 introduces the requirement that IPTV providers shall provide Internet Protocol Set-Top-Boxes with a minimum local content requirement of 20%, with the amount rising to 50% within five years of starting operations in Indonesia.

Furthermore, the IPTV operator shall provide at least 10% of domestic content during its broadcasting services, 30% during its multimedia services, and "the number of domestic Independent Content Providers contributing to the implementation of IPTV services shall be at least 10% of the number of Content providers in the Content Library of the Organizer and gradually increase to 50% within five years." (own translation; Art. 17(3) of the regulation).
Coverage Telecommunications
Trading restrictions

INDONESIA

Since 2012
Since August 2013
Since September 2016

Chapter Quantitative Trade Restrictions  |  Sub-chapter Local Content Requeriments for commercial market
Regulation 82/2012, amended by Regulation 38/2013 and Regulation 68/2016
The Ministry of Trade's Regulation 82/2012 prevents importers of cell phones, handheld computers, and tablets are not permitted to sell directly to retailers or consumers, and they must use at least three distributors to qualify for a MOT importer license.

A first amendment, Regulation 38/2013, imposes requirements on importers of mobile phones, handheld computers and tablets to prove previous import activities and local aftersales activity as well as requirements regarding the distribution and the establishment of industrial activity in Indonesia.

A later amendment, Regulation 68/2016, included new licensing requirements for different types of importers of tablets, cellular phones, and handheld computers. These differ depending on:
- whether the importer is working with an Indonesian producer,
- whether the importer is also the producer of the goods,
- whether the imports are conducted with a specific purpose (i.e., specialized orders) or in relation to after-sales services.
Out of the three categories, the licensing procedure is the longest for the second category.

The US and Japan expressed their concerns about this regulation at the WTO Committee on Import Licensing. They stated that the products at issue might not be imported without an approval from the MOT and must be imported by a registered importer.
Coverage Mobile phones, handheld computers and tablets
Sources
Trading restrictions

INDONESIA

Reported in July 2015

Chapter Quantitative Trade Restrictions  |  Sub-chapter Local Content Requeriments for commercial market
Local content requirement
Indonesia's government issued a new regulation in July 2015 on the mandatory use of local components in 4G smartphones distributed in Indonesia. The regulation requires all smartphone brands to have at least 30% local components by January 2017 and 40% for base transceiver stations (BTS).
Coverage 4G smartphones
Trading restrictions

INDONESIA

Since August 2013

Chapter Quantitative Trade Restrictions  |  Sub-chapter Local Content Requeriments for commercial market
Regulation 38/2013
The Ministry of Trade's Regulation 38/2013 imposes requirements on importers of mobile phones, handheld computers and tablets to prove previous import activities and local aftersales activity as well as requirements regarding the distribution and the establishment of industrial activity in Indonesia. The US and Japan expressed their concerns about this regulation at the WTO Committee on Import Licensing. They stated that the products at issue might not be imported without an approval from the Ministry of Trade and must be imported by a registered importer.
Coverage Mobile phones, handheld computers and tablets
Sources
  • European Commission, DG Trade, 11th Report on Potentially Trade-Restrictive Measures Identified in the Context of the Financial and Economic Crisis, 1 June 2013 – 30 June 2014: http://trade.ec.europa.eu/doclib/docs/2014/november/tradoc_152872.pdf
  • WTO Committee on Import Licensing, Minutes of the Meeting held on 20 October 2014 (G/LIC/M/40), 10 February 2015
Trading restrictions

INDONESIA

Since 2009

Chapter Quantitative Trade Restrictions  |  Sub-chapter Local Content Requeriments for commercial market
Regulation of the Minister of Communication and Information Technology No. 07/PER/M.KOMINFO/01/2009
Regulation 07/2009 (Art. 17) and Regulation 19/2011 require that equipment used in wireless broadband services should contain local content of at least 30% for subscriber stations and 40% for base stations and that all wireless equipment should contain 50% local content within 5 years.
Coverage WiMAX equipment
Sources
Trading restrictions

INDONESIA

Since 2009

Chapter Quantitative Trade Restrictions  |  Sub-chapter Local Content Requeriments for commercial market
Decree 41/PER/M.KOMINFO/10/2009
In October 2009, Decree 41/PER/M.KOMINFO/10/2009 required Indonesian telecommunication operators to expend a minimum of 50% of their total capital expenditures for network development on locally sourced components or services. Decree 41 also requires companies to annually report the percentage of local content procured and have that information “authenticated” by the government or a survey institute appointed by the government.
Coverage Components or services for network development
Sources
Trading restrictions

INDONESIA

Since 2014

Chapter Quantitative Trade Restrictions  |  Sub-chapter Import restrictions
Regulation 70/2015 and Regulation 87/2015
It is reported that Indonesian importers must comply with numerous and overlapping import licensing requirements that impede access to Indonesia’s market. Regulation 70/2015 by Ministry of Trade (MOT) came into effect in January 2016, replacing MOT Regulation 27/2012. The new regulation requires all importers to obtain an import license as either importers of goods for further distribution (API-U) or as importers for their own manufacturing (API-P), but importers are not permitted to obtain both types of licenses.

In addition, Regulation 87/2015 maintains non-automatic import licensing requirements on a broad range of products, including electronics. However, for holders of an API-U license, Regulation 87/2015 appears to eliminate the additional requirement to register as an importer of certain products.
Coverage Wide range of products, including electronics