TRADE IN SERVICES NEGOTIATIONS AND REFORMS REQUIRED FOR INDONESIA: TELECOMMUNICATION SERVICES Yuni Fatria Putrie (Ministry of Trade)
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TRADE IN SERVICES NEGOTIATIONS AND
REFORMS REQUIRED FOR INDONESIA:
TELECOMMUNICATION SERVICES
Yuni Fatria Putrie (Ministry of Trade)
OUTLINE
Background
Indonesia Commitment in Telecommunication
Services Under the GATS
Issues on Telecommunication Services
Recommendation
WHAT IS TELECOMMUNICATION SERVICES?According to WTO classification (MTN/GNS/W/120),Telecommunication Services in general covers:a. Voice telephone services 7521 b. Packet-switched data transmission services 7523**
c. Circuit-switched data transmission services 7523** d. Telex services 7523** e. Telegraph services 7522f. Facsimile services 7521**+7529** g. Private leased circuit services 7522**+7523** h. Electronic mail 7523** i. Voice mail 7523** j. On-line information and data base retrieval 7523**k. electronic data interchange (EDI) 7523** l. enhanced/value-added facsimile services, incl. 7523**
store and forward, store and retrievem. code and protocol conversion n.a. n. on-line information and/or data
processing (incl.transaction processing) 843** o. Other
The (**) indicates that the service specified constitutes only a part of the total range of activities covered by the CPC concordance (e.g. voice mail is only a component of CPC item 7523).
In Indonesia, those telecommunication services are under :Ministry of Communication and Information Technology.
CONTRIBUTION OF TELECOMMUNICATION SERVICESTO EMPLOYMENT (2010)
4Source: ILO Stat (accessed on 6 March 2013)
SECTORS THAT RELY ON COMMUNICATION SERVICES
Communication
Services
Manufacture of machine, electrical
machinery and apparatus
Manufacture of textile, wearing
apparel and leather
Manufacture of chemical
Top goods buyers
5
Top services buyers
Wholesale and Retail
Financial Intermediation
Construction
Source: Integrated Services Policy Advice Report (2014)
INDONESIA COMMITMENT IN TELECOMMUNICATION SERVICES
UNDER THE GATS
TELECOM
SERVICES
IN FTAS
URUGUAY ROUND
IJEPA
(Indonesia-Japan
Partnership Agreement)
AFAS
(ASEAN Framework
Agreement on Services)
AANZFTA
(ASEAN-Australia-NZ
Free Trade Agreement)
AKFTA
(ASEAN-Korea
Free Trade Agreement)
INDONESIA COMMITMENT IN TELECOMMUNICATION SERVICES
SECTOR OR SUBSECTOR URUGUAY
ROUND
AANZFTA IJEPA AKFTA AFAS 8
Domestic:Regional and National Paging Services (75291)
FEP 35% FEP 35% - FEP 40% FEP 70%
Domestic: Public payphone services
FEP 35% FEP 35% - FEP 40% -
Voice mail services (CPC 7523)
Electronic mail services (CPC 75232)
- FEP 35% FEP 40% FEP 49% FEP 70%
Computer time sharing services (CPC 84330)
Video text services (CPC 75229)
- FEP 35% - FEP 49% FEP 70%
On-line information and data base retrieval
(CPC 7523**)
- - FEP 40% FEP 51%
Electronic data exchange (EDI) (CPC 7523**) - - FEP 40% FEP 70%
Enhanced/value-added facsimile services, including
store and forward, store and retrieve (CPC 7523**)
- - FEP 40% FEP 49%
Electronic mail box (CPC 75232)File transfer services (CPC 75299)
Home telemetering alarm (CPC 75299)
Entertainment services
Management information services (CPC 75299)
- FEP 35% - FEP 49% FEP 70%
Facsimile Services (CPC 7521**, 7529**) - - FEP 40% FEP 70%
Private Leased Circuit Services (CPC 7522**, 7523**) - - FEP 40% FEP 49%
Voice Telephone Services (CPC 7521) FEP 49%
Dedicated network services (CPC 75222) FEP 70%
Code and protocol conversion FEP 49%
On-line information and or data processing (including
transaction processing) (CPC 843**)
FEP 49%
INDONESIA COMMITMENT IN TELECOMMUNICATION SERVICES
SECTOR OR SUBSECTOR URUGUAY ROUND AANZFTA IJEPA AKFTA AFAS 8Local service:
Public switched telephone service (7521)
Circuit switched public data network services (7523**)
FEP 35% FEP 35% FEP 40% FEP 35% FEP 70%
Teleconferencing services (75292) FEP 35% FEP 35% - FEP 35% FEP 49%
Fixed wireline access technology only FEP 70%
Long distance:
Public switched telephone service (7521)
Circuit switched public data network services (7523**)
FEP 35% FEP 35% FEP 40% FEP 40% -
Teleconferencing services (75292) FEP 35% FEP 35% - FEP 40% FEP 49%
International:
Public switched telephone service (7521)
Circuit switched public data network services (7523**)
FEP 35% FEP 35% FEP 40% FEP 40%
Teleconferencing services (75292) FEP 35% FEP 35% - FEP 40% FEP 49%
Packet-switched public data network services(7523**)
- X. 25
- Frame relay
- Local
- Local distance
- International
FEP 35% FEP 35% FEP 40% FEP 40% FEP 49%
Telex services FEP 35% FEP 35% FEP 40% FEP 40% FEP 70%
Telegraph services FEP 35% FEP 35% FEP 40% FEP 40% FEP 70%
Domestic:
Mobile cellular telephone services (75213)
FEP 35% FEP 35% - FEP 40% -
Domestic:
Personal Mobile Cellular Communication Services
FEP 35% - - FEP 40% -
Internet Access Services FEP 35% FEP 35% FEP 40% FEP 40% FEP 49%
INDONESIAN NEGATIVE INVESTMENT LIST (DNI)PERPRES NO. 44/2016
NO SUB-SEKTOR KBLI FEP
1 Penyelenggaraan Jaringan Telekomunikasi Tetap 61100 Max 67%
2 Penyelenggaraan Jaringan Telekomunikasi bergerak 6120061300
Max 67%
3 Penyelenggaraan Jaringan Telekomunikasi yang terintegrasi dengan jasa telekomunikasi
61921619226192361929
Max 67%
4 Penyelenggaraan jasa telekomunikasi jaringan content (ringtone, sms premium, dsb)
61912 Max 67%
5 Pusat layanan informasi (call center) dan jasa nilai tambah teleponi lainnya
61919 Max 67%
6 Jasa Akses Internet (Internet services provider) 61921 Max 67%
7 Jasa Sistem Komunikasi Data 61922 Max 67%
8 Jasa Internet Teleponi Untuk Keperluan Publik 61923 Max 67%
9 Jasa Interkoneksi Internet (NAP), Jasa Multimedia lainnya 61929 Max 67%
CURRENT NEGOTIATIONS ON TELECOMMUNICATION SERVICES
NO SUBSECTOR RCEP IACEPA AJCEP AFAS 10
1 Voice Telephone Services - - -
2 Public local telephone services - - -
3 Public Switched Telephone -
4 Fixed wireline access technology only - - -
5 Circuit Switched Public Data Network Services
6 Teleconferencing Services
7 Packet-switched public data network services
8 Telex, Telegraph
9 Facsimile -
10 Private leased circuit services - - -
11 Electronic data interchange (EDI) -
12 Mobile Cellular Telephone Services -
13 Personal Mobile Cellular Communication Services - - -
14 Internet Access Services Regional and National Paging Services
15 Public Payphone Services -
16 Voice Mail Service -
17 Dedicated network services - - -
18 Electronic Mail Services -
19 Computer Time Sharing Services -
20 Videotext Services -
21 Electronic Mail Box -
22 File Transfer Services -
23 Home Telemeter Alarm -
24 Entertainment Services Management -
25 Information Services -
26 On-line information and database retrieval - - -
27On-line information and or data processing (including transaction
processing)- - -
28Enhanced/ value added facsimile services, including store and
forward, store and retrieve- - -
29 Code and protocol conversion - - -
ISSUES ON TRADE IN SERVICES NEGOTIATION (TELECOMMUNICATIONS SERVICES)
1. Indonesia commitment is considered relatively low compared to its existing regulation (DNI).
Indonesia’s regulation infrastructure is still unstable. The regulation may change in a more restrictive or more open nature depending on economic condition.
2. Several technical issues discussed in International meeting (working group on Telecommunication services) are not yet regulated.
It is hard for Indonesia to commit when it comes to the decision making on that particular issues.
Undertaking Reforms in legal system in order to improve a level of law certainty for
Investors
Maximize synergies among sectors and ensure the ecosystem of policies provides consistent
and mutually reinforcing support.
Develop flanking measures contemporaneously with market opening
including support for addressing supply side measures.
Make available resources needed for effective policy making and regulation (Valid data,
research, and study).
Policy and strategy to harness services trade and investment
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RECOMMENDATION
1
3
2
4
TELECOMMUNICATION SECTOR THAT RECOMMENDED TO BE FURTHER OPENED
13
a. Voice telephone servicesb. Packet-switched data transmission servicesc. Circuit-switched data transmission servicesd. Telex servicese. Telegraph servicesf. Facsimile servicesg. Private leased circuit servicesh. Electronic maili. Voice mailj. On-line information and data base retrievalk. Electronic data interchangel. Enhanced/value-added facsimile services, incl.store and forward, store and
retrievem. Code and protocol conversionn. Online information and/or data processing (including transaction
processing)
Source: Integrated Services Policy Advice Report (2014)
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