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> Press
release:
Reforms must continue to achieve growth and attract investment
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We have had a very productive discussion of the trade policies and
practices of Indonesia. We owe this to the full and forthright
engagement of the Indonesian delegation, led by Mr. Pos Hutabarat,
Director General for International Trade and Industry Cooperation, to
our discussant, Ambassador Weerasinghe, and to Members' keen interest
in Indonesia's policies. Members
praised Indonesia's efforts to undertake macroeconomic, trade and
structural reforms in the wake of the 1997 crisis. As a consequence of
these reforms, particularly fiscal consolidation, the economy seems to
have stabilized. Members sought clarification of the impact of the
rapid moves to decentralize government and enhance regional autonomy
on trade and investment. They also noted the difficult external and
internal circumstances facing the Indonesian authorities, expressing
particular concern over recent trends in investment. The need for
progress in regulatory, enforcement, institutional and transparency
matters was stressed. Indonesia's
active participation in the WTO and commitment to multilateralism was
acknowledged.
Members noted
that as a result of unilateral liberalization, Indonesia's tariff had
declined to an average of 7.2% in 2002. Several Members also raised
questions about, the large gap between bound and applied rates. They
also noted that policy in certain sensitive areas was formulated on an
ad hoc basis. Some Members sought clarification on the use “check”
prices for customs valuation purposes and the use of import
restrictive licensing and anti-dumping measures. Questions were asked
on Indonesia's strengthening of its legislation on intellectual
property rights legislation and enforcement of these rights. Members
noted policy developments in agriculture and forestry. On sectoral
issues, with regard to manufacturing, Members noted the persistence of
tariff peaks and NTBs on sensitive products, such as textiles and
steel. On services, Members praised the extent of unilateral
liberalization and sought clarification of market-access conditions
for certain activities; in some services sectors, reforms went beyond
Indonesia's WTO obligations. Members also
sought clarification on several more specific issues including:
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the status of
approval of the new law on and other revival plans for foreign
investment;
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participation
in regional and bilateral trade liberalization agreements;
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several
tariff policy matters, notably customs valuation and bound tariffs;
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WTO
notification of import licensing procedures, state trading practices
and labelling requirements;
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standards
formulation and conformity assessment;
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genetically
modified organisms and labelling requirements;
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government
procurement objectives and practices;
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export
restrictions, promotion and finance;
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legislation
on patents, copyright, trade marks, geographical indications and
protection of undisclosed information; piracy rate and enforcement;
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national
treatment, GATS commitments and developments in the financial
services;
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deregulation/liberalization plans in telecommunications;
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policy
developments in the tourism sector.
Members
expressed their appreciation for the oral and written responses
provided by the delegation of Indonesia and looked forward to
responses to outstanding questions.
In
conclusion, it is my strong sense that we all highly appreciate
Indonesia's stance and active participation in moving the WTO's agenda
forward. It is clear from Indonesia's experience that the full
benefits of reform require sustained efforts, a long period of
adjustment, and the support of the multilateral system — particularly
through liberal market access. In this context, it is hoped that
Indonesia will take advantage of the opportunities presented by the
DDA. On the one hand, Indonesia can take into account the concerns
expressed by Members during this Review; at the same time, it can
bring to Members' attention, the importance of their responding to
Indonesia's developmental needs in these negotiations.
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