telecom sector of indonesia devang
TRANSCRIPT
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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
2006 thus registering over 48% growth since 2003.
Paper and printing products industry was valued at 39,968,900 million rupiahs in
2006 thus registering over 43% growth since 2003.
Fertilizers, chemicals and rubber products industry was valued at 95,765,000
million rupiahs in 2006 thus registering over 68% growth since 2003.
Cement and non-metallic quarry products industry was valued at 29,015,100
million rupiahs in 2006 thus registering over 50% growth since 2003.
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.
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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
million rupiahs in 2011 thus registering over 31% growth since 2008.
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.