Background studies
57
An evaluation of the need for selected trade facilitation
measures in Indonesia: Implications for the WTO
negotiations on trade facilitation
Yose Rizal Damuri*
Summary
As a member of WTO, Indonesia has been involved in the discussions of the WTO
Negotiating Group on Trade Facilitation (NGTF). This study aims to examine the current
situation of trade facilitation in Indonesia, as well to assess the needs and priorities of
various measures related to the trade facilitation negotiations.
Trade activities have been the engine of growth since the period of economic
liberalization and trade reform in the 1980s and 1990s. As part of past and on-going
reforms, Indonesia has implemented various trade facilitation measures currently discussed
in the WTO TF negotiation. However, the degree of implementation of those measures
needs significant improvement in order to provide simplified and harmonized procedures
related to trade.
In relation to GATT Article X, most government agencies have launched various
efforts to disseminate trade-related regulations and procedures. However, as there is no
specific guideline for publication of relevant regulations, policy towards dissemination is
sporadic. New regulations are not communicated well to stakeholders, while no formal
mechanism is available that allow traders to provide comments and suggestions regarding
trade rules and regulations. The exploratory private sector survey conducted as part of
this study reveals that measures regarding publication of relevant regulations are of highest
priority for trade facilitation improvement. Another utmost concern related to Article X is
the need for certainty and uniformity in how trade procedures are implemented, which
relates to the improvement of the integrity of officials.
The Government of Indonesia introduced a number of programmes in order to
improve trade facilitation measures related to GATT Article VIII. This study shows that
more simplified documentation requirements and automated trade procedures are among
the measures perceived as highest priority for improvement in trade facilitation. While
formal fees and charges for services related to trade procedures are perceived to be quite
reasonable, the existence of rampant illegal charges need to be addressed as it erodes
Indonesian products’ competitiveness. With regards to GATT Article V, Indonesia recognizes
* Centre for Strategic and International Studies (CSIS, Indonesia). The complete study is available
on the companion CD-ROM to this publication, as well as on the ARTNeT website at:
www.artnetontrade.org. The views presented in this paper are those of the author and do not necessarily
reflect the views of the United Nations or any other ARTNeT members or partners. Any remaining
errors are the responsibility of the author(s).