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2018/AD1/005 Agenda Item: 3.1

Indonesia's Domestic Report

Purpose: Information Submitted by: Indonesia

28th Automotive DialogueSingapore

7-8 June 2018

7 MAY 2018 – APEC SECRETARIAT SINGAPORE

Presented by

Ministry of Industry, Republic of Indonesia

Copyright © 2018 APEC Secretariat

DOMESTIC REPORT

INDONESIA

TABLE OF CONTENT

I. MARKET/INDUSTRY/POLICY REPORTII. NEW FTAS/IMPLICATION OF FREE TRADE AGREEMENT ON

THE AUTO SECTORIII. TAX STRUCTURE AND REGIMESIV. NEW AUTOMOTIVE POLICIES/REGULATION

I.1 MOTOR VEHICLES

Thousand UnitLCGC

PROGRAM

I.2 PRODUCTION CAPACITY

NO CAPACITY UNIT

1 UNTIL 2016 1.998.131

2 NEW INVESTMENT (2017) 253.000

3 TOTAL CAPACITY (2017) 2.258.131

I.3 INDUSTRY PYRAMID

Production (2017): 1,21 Million Unit

OEM

Tier 1

Component Industry

Tier 2 & 3Component Industry

Outlet, Workshop, Autorized Sales

Service and Spare Parts

Outlet, Workshop, Non Autorized Sales Service and Spare Parts

• 22 Company• 55.000 Workforce

• 500 Company• 100.000 Workforce

• 1.000 Company• 90.000 Workforce

• 14.000 Company• 380.000 Workforce

• 42.000 Company• 504.000 Workforce

I.4 AUTOMOTIVE INDUSTRY ROADMAP

I.5 AUTOMOTIVE INDUSTRY ROADMAP

II.1 INDONESIA BILATERAL FTA

I. On-going / Review Negotiation

8 FTA Agreement

Indonesia – Australia CEPA 9th Round (October 2017)

Indonesia – EFTA CEPA 15th Round (April 2018)

Indonesia – Iran PTA 4th Round (September 2017)

Indonesia – European Union CEPA 4th Round (February 2018)

Indonesia – Turkey CEPA 2nd Round (May 2018)

Indonesia – Japan EPA (2008) On-going Review

Indonesia – Pakistan PTA Review concluded (2017) – Expansion of PTA

Indonesia – Chile CEPA 13th round discussion (Oct 2017)

II. Upcoming Negotiations

10 FTA Agreement

Indonesia - Peru Joint Study finished

Indonesia – Kenya (EAC) PTA Being proposed (2017)

Indonesia – Nigeria (ECOWAS) PTA Being proposed (2017)

Indonesia – Mozambique PTA Being proposed (2017)

Indonesia – Morocco FTA Propose (2018)

Indonesia – SACU PTA Been Proposed (2018)

Indonesia – Bangladesh PTA Being proposed (2017)

Indonesia - Sri Lanka PTA Launch Joint Study (2018)

Indonesia – EAEU Proposed JSG (2017)

Indonesia - GCC Proposed Feasibility Study

Remarks :- CEPA : Comprehensive Economic Partnership Agreement

- PTA : Preferential Tariff Agreement

- EPA : Economic Partnership Agreement

Currently, there are 5 FTA which are still on-going processes (Most likely with developed countries), 2 FTA are on-going review, 1 FTA is

waiting for ratification in the parlianment and 10 FTA which will be negotiated (Most likely with developing countries)

II.2 INDONESIA MULTILATERAL FTA

III CURRENT TAXATION SCHEME

Domestic Tax

IV LATEST UPDATE OF POLICY AND

REGULATION

THANK YOU

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