Telecom Sector of Indonesia Devang

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TELECOM SECTOR OF INDONESIA

SR.NO PERTICULARS

1 DIFFERENT ECONOMIC SECTORS AGRICULTURE SECTOR

SERVICE SECTOR

MANUFACTURING SECTOR

HYDROCARBONS SECTOR

EXPORTS AND TRADE SECTOR

FINANCIAL SECTOR

BANKING SECTOR

2 BUSSINESS AND TRADE AT

INTERNATIONAL LEVEL

The Policies on Manufacturing and Trade

Domestic Trade Policy

Overseas Trade Policy

International Industrial and Trade Cooperation

The National Export Development Board

(NAFED)

Commodity Exchange Supervisory Board

3 TRADE RELATIONS WITH INDIA AND GUJARAT

Framework of Trade Relation (India-

Indonesia)

Bilateral trade

Recent Bilateral Visits Non-tariff Barriers


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OVERVIEW OF DIFFERENT ECONOMIC SECTORS

AGRICULTURE SECTOR

Agriculture- Product

(15.3% of GDP, 2009)

Products--timber, rubber, rice, palm oil, coffee. Land--17% cultivated. Rice,

cassava( tapioca), peanuts, rubber, cocoa, coffee, palm oil, copra, poulty, beef,

pork, eggs

The Relative Importance of Commodity Sub Sectors in Base Production

and Growth 2010

(All figures are in percent)


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There are three main reasons for rapid growth of this sector:

The three commodity groups chosen account for nearly one-fourth of current

agricultural production and in a fast growth strategy would account for about one-

third of incremental growth support for GM technologies not only directly in

agriculture, but also in agribusiness well developed expertise specific to

Indonesia in agricultural policy and policy reform.

SERVICE SECTOR

Business services

Badan Pusat Statistic provisionally valued other business support services at

47,381,600 million rupiahs in 2006 thus registering over 71% growth since 2003.

Small businesses

There are 50 million small businesses in Indonesia with online usage growth of

48 percent in 2010, so Google will open a local office in Indonesia before 2012.

General government

Commodity

Base

2009

Growth

rate 2009

Share of

growth

High Growth

rate

Share of

growth

Rice 24 3.0 24 3.0 14Estate crops 18 4.0 21 6.0 22

Horticulture 17 4.0 19 8.0 27Livestock 11 3.5 12 6.0 6Fisheries 11 3.5 14 6.0 6Other food crops 9 2.0 8 2.5 4Maize 2 3.0 2 5.0 2Forestry 8 0 0 2.5 4TOTAL/AVERAGE 100 3.2 100 5.0 100


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Badan Pusat Statistic provisionally valued government administration and

defence services at 103,508,800 million rupiahs in 2006 thus registering over

63% growth since 2003. Other government services were valued at 64,290,900

million rupiahs in 2006 thus registering over 67% growth since 2003.

Private

Badan Pusat Statistic provisionally valued the social and community services at

60,319,400 million rupiahs in 2006 thus registering over 92% growth since 2003.

Amusement and recreational services were valued at 10,018,800 million rupiahs

in 2006 thus registering over 46% growth since 2003.

Personal and household services were valued at 100,247,900 million rupiahs in

2006 thus registering over 69% growth since 2003.

Indonesian migrant workers

The most common destination of Indonesian migrant workers is Malaysia

(including the illegal workers). In 2010, according to World Bank report,

Indonesia is among the world's top ten remittance receiving countries with value

of totaling $7 billion. May 2011: There are 6 million Indonesian citizens working

overseas, 2.2 million of who reside in Malaysia and another 1.5 million in Saudi

Arabia.

MANUFACTURING SECTOR

Oil and gas manufacturing


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Badan Pusat Statistic provisionally valued the petroleum refinery industry at

119,833,900 million rupiahs in 2006 thus registering over 139% growth

since 2003[34] while the liquefied natural gas industry was valued at

53,791,300 million rupiahs in 2006 thus registering over 94% growth

since 2003.

Non-oil and gas manufacturing:-

Value of the food, beverage and tobacco industry at 213,173,300 million rupiahs

in 2006 thus registering over 38% growth since 2003.

Textile, leather products and footwear industry was valued at 90,871,700 million

rupiahs in 2006 thus registering over 34% growth since 2003.

Wood and wood products industry was valued at 44,410,400 million rupiahs in


Paper and printing products industry was valued at 39,968,900 million rupiahs in


Fertilizers, chemicals and rubber products industry was valued at 95,765,000


Cement and non-metallic quarry products industry was valued at 29,015,100


Iron, steel and other basic metals industry was valued at 20,492,200 million

rupiahs in 2006 thus registering over 52% growth since 2003.

Transport equipment, machinery and apparatus industry was valued at

221,891,800 million rupiahs in 2006 thus registering over 87% growth since

2003.
http://en.wikipedia.org/wiki/Economy_of_Indonesia#cite_note-autogenerated2-33http://en.wikipedia.org/wiki/Economy_of_Indonesia#cite_note-autogenerated2-33


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Other manufacturing industries were valued at 7,148,300 million rupiahs in 2006

thus registering over 67% growth since 2003.

April 2011, after more than 40 years Toyota has developed into a strong

production base for the domestic and export markets. In the next two years the

car market is expected to reach one million unit a year which Toyota and also its

subsidiary company Daihatsu get a market share about 40 percent.

In 2010, Indonesia sales 7.6 million motorcycles, which mainly produce in

Indonesia with almost 100 percent local components. Honda led the market with

a 50.95 percent market share, followed by Yamaha with 41.37 percent market

share.

HYDROCARBONS SECTOR

Oil and Gas mining Sector:

Provisionally valued the oil and gas mining industry at 187,893,200 million

rupiahs in 2006 thus registering over 97% growth since 2003. Indonesia left the

Organization of Petroleum Exporting Countries (OPEC) in 2008, as it had been a

net petroleum importer since 2004. Crude and condensate output averaged948,000 barrels per day (bpd) in 2009, down slightly from 2008. In 2009, the oil

and gas sector is estimated to have contributed $19.8 billion of government

revenues, or 19.5% of the total. Indonesia ranked tenth in world gas production

in 2009.

In early 2010, the Government of Indonesia also formally decided to become a

candidate country of the Extractive Industries Transparency Initiative (EITI),

which will increase accountability and transparency in energy revenue

transactions between the government and oil, gas, and mining firms.


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Non-oil and gas mining

Indonesia is the world's largest tin market. Although mineral production

traditionally centered on bauxite, silver, and tin, Indonesia is expanding its

copper, nickel, gold, and coal output for export markets. In 2007 Indonesia

ranked fifth among the world's top gold concentrate producers.

From January to August 2011, the coal production was 235 million tons and

targeted 2011 coal production between 340 to 370 million tons. Not all of the

productions can be exported due to there are Domestic Market Obligation (DMO)

regulation which should fulfill the domestic market. In 2012, the DMO is 24.72

percent. And starting 2014, there are no low-grade coal exports allowed.

From gold, copper, and coal comprised 84% of the $3 billion. Earned in 1998 by

the mineral mining sector. India fortune groups like Vedanta Resources and Tata

Group have significant mining operations in Indonesia.

Indonesia will be the world's second largest Alumina producer. The project will

not make the ores to become Aluminum due to there are 100 types of Alumina

derivatives which can be developed further by other companies in Indonesia.


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EXPORTS AND TRADE SECTOR

Export

Indonesia's exports were $116.5 billion in 2009, down 14.8% from a record

$136.8 billion in 2008. The largest export commodities for 2009 were oil and gas

(16.3%), minerals (14.3%), crude palm oil (12.5%), electrical appliances (8.2%),

and rubber products (5.0%). The top four destinations for exports for 2009 were

Japan (12.3%), the U.S. (10.7%), China (9.1%), and Singapore (8.2%).

Major export partners--Japan, U.S., China, Singapore, Malaysia, and Republic

of Korea.

Import

Meanwhile, total imports in 2009 were $96.86, down from $128.8 billion in 2008.

Indonesia is currently our 28th-largest goods trading partner with $18.0 billion in

total (two-way) goods trade during 2009. The U.S. trade deficit with Indonesia

totaled $8 billion in 2009 ($5.1 billion in exports versus $12.9 billion in imports.

FINANCIAL SECTOR

Capital Markets

For expositional purposes, it is useful to divide into 1) capital markets and 2)

institutional investors, but there are close linkages between these two segments

of the market.

Equity Markets

The equity market makes a relatively small contribution to raising capital for

business. Total market capitalization as a share of GDP (29%) is the lowest

among middle income Asian countries.

Bond market

Outstanding corporate bonds amount to only 2% of GDP, as against some 20%


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in the rest of the region. Domestic institutional investors are the main holders of

corporate bonds.

Non-bank finance institutions

Badan Pusat Statistik provisionally valued the non-bank finance industry at

26,682,500 million rupiahs in 2011 thus registering over 87% growth since

2008.http://en.wikipedia.org/wiki/Economy_of_Indonesia - cite_note-autogenerated2-33

Services allied to finance:-

Badan Pust Statistik provisionally valued other services allied to finance industry

at 2,006,300 million rupiahs in 2011 thus registering over 82% growth since

2008.

Banking Sector:-

Badan Pust Statistik provisionally valued the banking industry at 97,708,300


Indonesia has 122 commercial banks (May 2010), of which 10 are majorityforeign-owned and 28 are foreign joint venture banks. The top 10 banks control

about 64% of assets in the sector. Four state-owned banks control about 36.3%

of assets (May 2010). The Indonesian central bank, Bank Indonesia (BI),

announced plans in January 2005 to strengthen the banking sector by

encouraging consolidation and improving prudential banking and supervision. In

October 2006, BI announced a single presence policy to further prompt

consolidation. The policy stipulates that a single party can own a controlling

interest in only one banking organization. Controlling interest is defined as 25%

or more of total outstanding shares or having direct or indirect control of the

institution. BI planned to adopt Basel II standards beginning in 2009 and to

improve operations of its credit bureau to centralize data on borrowers. Another

important banking sector reform was the decision to eliminate the blanket
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guarantee on bank third-party liabilities. BI and the Indonesian Government

completed the process of replacing the blanket guarantee with a deposit

insurance scheme run by the independent Indonesian Deposit Insurance Agency

(also known by its Indonesian acronym, LPS) in March 2007. The removal of the

blanket guarantee did not produce significant deposit outflows from or among

Indonesian banks. Sharia banking has grown in Indonesia in recent years, but

represented only 2.66% of the banking sector, about $7.9 billion in assets as of

May 2010.

Central Bank Discount rate

6.46% (31st Dec, 2010)

Country comparison to the world: 40

10.83% (31st Dec, 2009)

Commercial bank prime lending rate

14.6% (31st Dec, 2010)

Country comparison to the world: 57

13.6% (31st Dec, 2009)


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OVERVIEW OF BUSINESS & TRADE AT

INTERNATIONAL LEVEL

The Policies on Manufacturing and Trade

Development in manufacturing and trade refers to the Basic State Guidelines

(GBHN) of 2000-2004, with a vision to develop the people's economy as a

backbone of national development. In this context, the strengthening of long-and-

medium term economic development, the development in manufacturing and

trade primarily on agro-industry is directed towards utilizing national resources.

The short-term economic development is focused on the increase of non-oil and

gas export, development of small-and-medium-scale enterprises (UKM) and

improvement of production of goods and services.

The policy on exports is directed towards augmenting non-oil and gas exports as

an effort to gain foreign revenues. They include among other:

a. To increase foreign competition of export commodities by enlarging export

structures from primary product upstream products as well as by expanding

market export destination.

b. To develop superior products having competitive edge, among others by

modernizing product processing system in industries in the eastern region of

Indonesia.

c. To improve business sector capability to enter global market through

enhancement of knowledge in export procedures and requirements, and

socializing prevailing statutory regulations to the business partner's countries.

d. To encourage Indonesia's export banks and other banking institutions to

improve the realization of trade financing as well as the utilization of counter -

trade mechanism.

e. To follow up on deregulation and de-bureaucratization process in the field of

foreign trade to remove obstacles, as to simplify exporting procedures that leads

to market strength. Moreover to improve international trade cooperation in


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standardization technique, to reduce obstacles in exports and prevent the

practices of holding orders detention and implement automatic detention.

f. To develop and implement export-import information system and network in

order to accelerating information flow to domestic business until regional / city

level and to overseas.

g. To optimize utilization of export processing zones and to develop Integrated

Economic Development Zone (Kawasan Ekonomi Terpadu - KAPET).

h. To develop export development institutions by reactivating Indonesia Trade

Promotion Centers (ITPC) and to activate the role and reposition industrial and

trade attaches in undertaking promotion activities and conducting business

intelligence.

i. To develop cross-border trading activities in the context of accelerating

international market access.

j. To develop the existing inter-institutional and supervisory institutional

cooperation networks and synergy both at home and abroad.

Domestic Trade Policy

The policy of domestic trade covers efforts to accelerate good distribution in

order to stabilize prices and control inflation rate. It also aims to expand

marketing of domestic production in the context of augmenting producer trade

income, securing consumer protection, improving business acumen in

implementing partnership in the context of a fair business competition as well as

expanding access of information.

Overseas Trade Policy

To determine the annual exports target, the policies were discussed with Senior

Officials of the government (economic ministerial level). The Government

encourages the analyses concerning potential of generating foreign exchange

and earnings primary export commodities; arranging a comprehensive export to

increase programs; disseminating international price and information on primary

export Commodities through mass media; improving the role of associations to


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augment exports by taking actual steps in improving the association's capabilities

in searching alternatives not contrary to the World Trade Organization (WTO).

International Industrial and Trade Cooperation

The Government has been playing an active role in multilateral convention to

strengthen Indonesias position at the international level as well as to gain

facilities for domestic businesses in gaining access to international markets. The

Government had strived to reduce trade barriers in the form of tariff and non-

tariff, to smoothen the countrys export flow; take part on trade disputes

settlement in the WTO panels; as coordinator for commodity cooperation

organizations, such as the International Rubber Organization (INRO),

Association of Natural Rubber Producing Countries, International Pepper

Community (IPC), and the Asia Pacific Coconut Community (APCC).

Regional cooperation has been maintained among other things through the

Nineteenth Session of the Coordinating Committee on Services, Study on

Liberalization in other regions, such as the North American Free Trade area

(NAFTA).

The National Export Development Board (NAFED)

NAFED strive markets penetration to maintain, improve and expand export

segments, both in traditional and non-traditional markets or new markets by

conducting intensive lobbies. It also aims to send trade and investment missions

to participate in international trade expositions, as well as development

coordination with international expositions promotion agencies overseas.

Data services and information on trade, such as country profile, exporters

profiles, importers profiles, commodities, exhibition profile, market survey, market

brief, inquiries and several other market information are distributed through off

line network (especially for domestic of small-and-.medium scale enterprises).

They are also distributed through online (http://www.nafed.go.id). Both are

designed to promote domestic business circles activities and products.


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Commodity Exchange Supervisory Board

The Government is trying to keep on improving the activities of development and

promotion of periodical trade undertakings managed by commodities periodical

stock-exchange, privately owned companies, Private Corporation optimizing the

utilization of export processing zones and developing integrated economic

development zones (KAPET). They are also giving wider role to small enterprises

in distributing primary and raw materials and industrial products as well as

helping small-and-medium scale enterprises (UKM) in marketing and promoting

their products in domestic and overseas markets.


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PRESENT TRADE RELATIONS & BUSINESS VOLUME OF

DIFFERENT PRODUCTS WITH INDIA

Framework of Trade Relation (India- Indonesia): -

Trade relations between India and Indonesia go back to ancient times,

contributing to the historical and civilization affinities between the two countries.

In the modern era, trade relations were formalized under a Trade Agreement

signed in June, 1978 committing both countries to take all appropriate measures

to facilitate, strengthen and diversify bilateral trade. Periodic discussions have

taken place at the Ministerial and official levels to strengthen economic andcommercial ties within the framework of this agreement. JBC/business level

meetings have also been convened periodically, particularly in conjunction with

high level visits. However, no forum for regular talks over a range of cooperative

issues with Indonesia existed during the Soeharto years and only a bilateral

Agreement on Avoidance of Double Taxation between the two countries was

concluded in January, 1986.

An Agreement for the Promotion and Protection of Investments, which was

signed in February, 1999, came into force in January, 2004. The first ever India-

Indonesia Joint Commission Meeting (JCM) was held in Yogyakarta in

September, 2003. Apart from taking major decisions to promote bilateral

economic and commercial relations in various fields, the JCM decided to

constitute an India- Indonesia Expert Working Group with the specific mandate

of reporting to the JCM with concrete recommendations for enhancing and

diversifying bilateral trade, economic and investment relations. This ExpertWorking Group held its first meeting in New Delhi on 24 February, 2005. The

Second Meeting of JCM was held in New Delhi on 1 March, 2005. Specific areas

for enhancement of bilateral trade and economic relations were identified. The

Third JCM was held in Jakarta from 16- 19 June 2007 in which a comprehensive


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Plan of Action in all areas including cooperation in economic, trade, industrial

and infrastructure, financial and investment sectors was agreed upon.

KADIN is the apex and the only Indonesian Chamber of Commerce & Industry

with a sizeable presence at the federal level and outreach in the Provinces.

During the visit of President SBY to India in 2005, KADIN decided to have a

India Committee which would be a specialized body for promoting bilateral

economic relations between India and Indonesia and work to enhance interaction

between the Chambers of Commerce and Industry of the two countries and

promote individual business interests of the private sector. KADIN signed a MoU

with FICCI in November 2005 to achieve this objective. KADIN India Committee

was formally launched in November 2006 with Mr. S.P. Lohia as its Chairman.

The Committee has three member Advisory Board and over 40 members

including the Executive Office bearers.

In order to spur growth and attract investment, the Government of Indonesia

organized the Indonesia Infrastructure 2006 from 1-3 November, 2006 at Jakarta

with the agenda titled A World Forum A National Priority. This was a second

conference and exhibition of its kind. The first one titled Indonesia Infrastructure

Summit 2005 was held in January of that year. India was conspicuous by its

absence in the first Summit. However, in the second event, Indian participation

was quite encouraging. Four companies namely, BHEL, TCS, Punj Lloyd and

ESSAR exhibited in Indonesia Infrastructure 2006 and many more such as ICICI,

IDFC, and NTPC etc. were present in the conference.

Bilateral trade: -

Indonesia is our second largest export market in ASEAN (after Singapore) and

one of our major trading partners in the region. The recovery of the Indonesian

economy after the Asian financial crisis coupled with political change gave a

fresh lease of life to our economic relations. Our Prime Ministers visit to

Indonesia in April 2005 for Asian-African Summit soon followed by President


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SBYs visit to India in November 2005 acted as a catalyst in enhancing our

bilateral trade. During 2004, the bilateral trade expanded by 36% to reach US$

3.27 billion and got a further boost of 20.90% in 2005 to reach US$ 3.93 billion.

The growth rate has been sustained in the year 2006 by a quantum jump of

22.08% which has brought the two-way trade to US$ 4.798 billion. In 2007

bilateral trade reached US$6.55 billion or an increase 36.6% from the previous

year. However, there remains vast untapped potential for future growth. The net

balance of trade is in favour of Indonesia, as India is Indonesias largest buyer of

Crude Palm Oil (CPO) and an importer of its mining (particularly coal and copper

ore), petroleum, rubber, pulp & paper and textile products. India exports refined

petroleum products, hydrocarbons and its derivatives, animal feeds, iron and

steel products, cotton, copper and dyes & chemicals to Indonesia.

Bilateral trade during From Jan to Dec 2008 rose by 53.5% to reach US$ 10

billion as compared to the same period in 2007. Indias overall exports registered

an increase of 80% to reach US$ 2.9 billion. Indias leading exports include

Petroleum products (refined), hydrocarbons & derivatives, animal feed and

Telecommunication equipment & parts. Indias imports have registered an

increase of 45% to reach US$ 7.1 billion. Indias leading imports include

vegetable oils and coal. Bilateral trade was down by 12.8% during Jan-Mar 2009

as compared to the same period in 2008.

There has been a steady increase in the number of persons traveling to India

from Indonesia and also from India to Indonesia. Regarding travel from Indonesia

to India, our Embassy issued 8,038 visas to Indonesians in 2004, 8227 in 2005

and 8797 in 2006, which reflects a steady increase of 2.35% and 6.92%

respectively. Likewise, the total number of business travelers from Indonesia to

India in the last 8 three years has been 2,672 in 2004, 3,409 in 2005, 4103 in

2006, 4889 in 2007 and 5345 in 2008. This reflects an increasing trend of

people-to-people contact between the two countries with many more Indonesians

visiting India than in the past. The visa-on-arrival facility extended by the


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Indonesian Government to India in August 2005 has also given a fillip to easier

travel from India to Indonesia.

Recent Bilateral Visits: -

Indonesia to India

H.E. Mr. Hassan Wirajuda, Foreign Minister of Indonesia visited India in

March 2005 for the 2nd JCM held in New Delhi. The Indonesian Minister

of Trade Mari Elka Pangestu visited India in August, 2005. A joint FICCI

KADIN Joint Business Council Meeting was held in New Delhi during the

visit. The Indonesian Agriculture Minister Mr. Anton Apriyantono visited

India in March 2005 for G-20 Meeting. Vice President Jusuf Kalla headed

a business delegation to India (Delhi & Mumbai) in January-February

2007. He had interactions with both FICCI and CII and visited the steel

plant of Indo-Ispat near Mumbai. Indonesian Health Minister, Dr. Siti

Fadillah Supari visited India from 4-5 December, 2007 as head of 10-

member delegation to attend the Ministerial Conference on Avian and

Pandemic Influenza in New Delhi.

Indonesian Minister of Trade H.E. Ms. Mari Elka Pangestu led a

delegation consisting over 50 delegates representing Government and

business interests to Mumbai and New Delhi to attend the Partnership

Summit 2008 sponsored by CII from 16-18 January, 2008.

India to Indonesia

Conferences & other delegations

A delegation from the Planning Commission of India visited Jakarta on 6 th

Feb 2009 and held talks with the National Planning Agency of Indonesia.

The Indian delegation also visited Bali and held discussions with the


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Provincial Planning Agency of Bali. The 42nd annual meeting of ADB was

held from 2nd 5th May 2009 in Bali, Indonesia. A delegation headed by

H.E. Mr Ashok Chawla, Secretary (EA) Finance, Govt of India, attended

the meeting. A delegation headed by Shri T.Nanda Kumar, Secretary,

Ministry of Agriculture visited Indonesia for participation in the High level

Joint Working Group Meeting from 25 29 April 2009. During their stay,

the delegation visited the livestock research centre in Bali and held

bilateral meetings with their counterparts in Jakarta. The delegation also

had the opportunity to visit the Center of Agriculture R& D in Bogor, West

Java.

Buyer & Seller Meets

Chemical and Capexcil Buyer Seller Meet The Embassy of India in

coordination with the CAPEXCIL (Chemicals & Allied Products Export

Promotion Council), and CHEMEXCIL (Basic Chemicals, Pharmaceuticals

and Cosmetics Export Promotion Council) organized a Buyer and Seller

Meet on 11 February 2009 at the Gran Melia Hotel. The Buyer Seller

Meet was a success with attendance of over 100 businessmen from

prominent Indonesian companies. A Delegation comprising of more than

13 businessmen from India attended the meet, showcasing

pharmaceutical raw materials, pharmaceutical formulations,

dermatological products, herbal medicines, healthcare products,

formulations for animals etc. During their visit, the Embassy facilitated

their meetings with the officials at the registration authorities for Food and

Drug as well as the Ministry of Health. A 16 member delegation from The

Solvent Extractors Association of India (SEA) held a buyer seller meet on

3rd June 2009 at Four seasons Hotel, Jakarta. The delegation comprised

of exporters of oil meals such as soya meal, rape seed meal etc used as

ingredient in animal feed. A number of Indonesian and multinational

companies attended the Meet.


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Non-tariff Barriers: -

Non-tariff barriers on the following Indian products have been imposed by

Indonesia:

Bovine Meat & Skimmed Milk Products Banned because of FMD;

Wheat Flour 11.4% till the end of 2010;

Uncoated Writing Paper and Printing Paper 6.19% to 40.13% till November

2009;

Hot Rolled Coil 0 56.51% till February 2012.

Indonesia has banned Indias bovine meat products and milk products on the

ground that India is not free from Foot & Mouth Disease (FMD) even though India

is one of the largest exporters of halal bovine meat in the world and exports

deboned and deglanded frozen bovine meat to 64 countries including several

which are FMDfree such as Mauritius, Philippines, Malaysia in South-East Asia.

As per the OIE guidelines, international trade in deboned and deglanded frozen

bovine meat prepared in accordance with the International Animal Health Code

ensures against any risk of transmission of FMD virus. The OIE Charter is signed

by 164 member countries including India and Indonesia. Each signatory is

obliged to practice OIE tenets and avoid insertion of its own phyto sanitary

conditions. Similarly, Indonesia banned import of Skimmed Milk Products (SMP)

from India in 2005 on the similar grounds that India is not free from FMD. FMD

virus is not transmitted through milk 12 products and India has been exporting

SMP to several countries including Indonesia in the past.


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Indonesian Government had imposed a 14% anti-dumping duty on the import of

Ampicillin Trihydrate and Amoxicillin Trihydrate from India till the end of 2008.

Now it has been discontinued. Indonesia has imposed an anti-dumping duty of

11.40% on the sourcing of wheat flour from India over and above 5% duty on the

product from India. This additional tariff of 11.40% will be operative till November

2010 which has practically dried up sourcing of Indian wheat flour in Indonesian

market. Indonesia has imposed 0 56.51% anti dumping duty on the import of

hot rolled coil from India till February 2012.

An anti-dumping duty of 6.19% to 40.13% has been imposed on uncoated writing

and printing paper from November 2004 till November 2009. However, India is

importing large quantities of waste paper, pulp and paper & paper board from

Indonesia. There was also an anti-dumping duty of 11% on import of Carbon

Black from India which has discontinued. The import of Polyester Staple Fiber

(PSF) from India is under investigation by the Anti Dumping Committee of

Indonesia.

Documents

Telecom Sector of Indonesia Devang