Yuni Fatria Putrie (Ministry of Trade) OUTLINE Background - PowerPoint PPT Presentation

TRADE IN SERVICES NEGOTIATIONS AND REFORMS REQUIRED FOR INDONESIA: TELECOMMUNICATION SERVICES Yuni Fatria Putrie (Ministry of Trade)

OUTLINE  Background  Indonesia Commitment in T elecommunication Services Under the GATS  Issues on T elecommunication Services  Recommendation

WHAT IS TELECOMMUNICATION SERVICES? According to WTO classification (MTN/GNS/W/120), Telecommunication Services in general covers: a. Voice telephone services 7521 7523 ** b. Packet-switched data transmission services c. Circuit-switched data transmission services 7523** d. Telex services 7523** e. Telegraph services 7522 f. 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 retrieve m. 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 SERVICES TO EMPLOYMENT (2010) Source: ILO Stat (accessed on 6 March 2013) 4

SECTORS THAT RELY ON COMMUNICATION SERVICES T op goods buyers Manufacture of machine, electrical machinery and apparatus Manufacture of chemical Communication Manufacture of textile, wearing apparel and leather Services T op services buyers Wholesale and Retail Construction Financial Intermediation Source: Integrated Services Policy Advice Report (2014) 5

INDONESIA COMMITMENT IN TELECOMMUNICATION SERVICES UNDER THE GATS URUGUAY ROUND TELECOM AFAS IJEPA SERVICES (Indonesia-Japan (ASEAN Framework Agreement on Services) Partnership Agreement) IN FTA S AANZFTA AKFTA (ASEAN-Australia-NZ (ASEAN-Korea Free Trade Agreement) Free Trade Agreement)

INDONESIA COMMITMENT IN TELECOMMUNICATION SERVICES SECTOR OR SUBSECTOR URUGUAY AANZFTA IJEPA AKFTA AFAS 8 ROUND Domestic: FEP 35% FEP 35% - FEP 40% FEP 70% Regional and National Paging Services (75291) Domestic: FEP 35% FEP 35% - FEP 40% - Public payphone services Voice mail services (CPC 7523) - FEP 35% FEP 40% FEP 49% FEP 70% Electronic mail services (CPC 75232) Computer time sharing services (CPC 84330) - FEP 35% - FEP 49% FEP 70% Video text services (CPC 75229) On-line information and data base retrieval - - FEP 40% FEP 51% (CPC 7523**) Electronic data exchange (EDI) (CPC 7523**) - - FEP 40% FEP 70% Enhanced/value-added facsimile services, including - - FEP 40% FEP 49% store and forward, store and retrieve (CPC 7523**) Electronic mail box (CPC 75232) - FEP 35% - FEP 49% FEP 70% File transfer services (CPC 75299) Home telemetering alarm (CPC 75299) Entertainment services Management information services (CPC 75299) 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 FEP 49% transaction processing) (CPC 843**)

INDONESIA COMMITMENT IN TELECOMMUNICATION SERVICES SECTOR OR SUBSECTOR URUGUAY ROUND AANZFTA IJEPA AKFTA AFAS 8 Local service: FEP 35% FEP 35% FEP 40% FEP 35% FEP 70% Public switched telephone service (7521) Circuit switched public data network services (7523**) Teleconferencing services (75292) FEP 35% FEP 35% - FEP 35% FEP 49% Fixed wireline access technology only FEP 70% Long distance: FEP 35% FEP 35% FEP 40% FEP 40% - Public switched telephone service (7521) Circuit switched public data network services (7523**) Teleconferencing services (75292) FEP 35% FEP 35% - FEP 40% FEP 49% International: FEP 35% FEP 35% FEP 40% FEP 40% Public switched telephone service (7521) Circuit switched public data network services (7523**) Teleconferencing services (75292) FEP 35% FEP 35% - FEP 40% FEP 49% Packet-switched public data network services(7523**) FEP 35% FEP 35% FEP 40% FEP 40% FEP 49% - X. 25 - Frame relay - Local - Local distance - International 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: FEP 35% FEP 35% - FEP 40% - Mobile cellular telephone services (75213) Domestic: FEP 35% - - FEP 40% - Personal Mobile Cellular Communication Services 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 61200 Max 67% 61300 3 Penyelenggaraan Jaringan Telekomunikasi yang terintegrasi dengan jasa 61921 Max 67% telekomunikasi 61922 61923 61929 4 Penyelenggaraan jasa telekomunikasi jaringan content (ringtone, sms 61912 Max 67% premium, dsb) 5 Pusat layanan informasi (call center) dan jasa nilai tambah teleponi 61919 Max 67% lainnya 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 - - - On-line information and or data processing (including transaction  27 - - - processing) Enhanced/ value added facsimile services, including store and  28 - - - 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.

RECOMMENDATION Undertaking Reforms in legal system in order Maximize synergies among sectors and ensure to improve a level of law certainty for the ecosystem of policies provides consistent Investors and mutually reinforcing support. 1 2 Policy and strategy to harness services trade and investment 3 4 Develop flanking measures Make available resources needed for effective contemporaneously with market opening policy making and regulation (Valid data, including support for addressing supply side research, and study). measures. 12

TELECOMMUNICATION SECTOR THAT RECOMMENDED TO BE FURTHER OPENED a. Voice telephone services b. Packet-switched data transmission services c. Circuit-switched data transmission services d. Telex services e. Telegraph services f. Facsimile services g. Private leased circuit services h. Electronic mail i. Voice mail j. On-line information and data base retrieval k. Electronic data interchange l. Enhanced/value-added facsimile services, incl.store and forward, store and retrieve m. Code and protocol conversion n. Online information and/or data processing (including transaction processing) 13 Source: Integrated Services Policy Advice Report (2014)

14