INDONESIA
Since March 2022
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
President Instruction No. 22/2022
In March 2022, the government of Indonesia issued President Instruction No. 22/2022, mandating all government agencies to provide a preference margin for local products with at least 25% local content. The price preference is a maximum between 7.5% and 25%, depending on the sector.
Coverage Horizontal
INDONESIA
Since May 2009
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Ministry of Industry Regulation No. 49/2009
The Ministry of Industry Regulation No. 49/2009 requires the use of domestic products and services in 558 sub-sectors for public procurement. The mandate to use domestic products in these sub-sectors applies if there are goods and services with minimum local content requirements ranging from 15% up to 96%. Domestic products and services are defined as goods or services produced or prepared by a company investing and producing in Indonesia, with the possibility to use imported raw materials or components in the production or working process.
Coverage 558 sub-sectors
INDONESIA
Since October 2019
Pillar Public procurement of ICT goods and online services |
Indicator Other limitations on foreign participation in public procurement
Ministry of Communication and Information Technology Regulation (MOCI) No. 12/2019
The Ministry of Communications and Informatics Regulation No. 12/2019, which replaces Regulation No. 41/PER/M.KOMINFO/10/2009 by the Ministry of Communication and Information Technology mandates that Indonesian telecommunication operators allocate at least 50% of their total capital expenditures for network development to locally sourced components or services. The regulation also stipulated that any telecommunication device/material which contains a minimum of 50% local component will be considered to have 100% local component (Art. 6). The regulation also requires companies to report the percentage of local content procured annually and have that information “authenticated” by the government or a survey institute appointed by the government. These requirements have been in place since 2009.
Coverage Network telecommunication operators
Sources
- https://web.archive.org/web/20231129225337/https://ustr.gov/sites/default/files/2013-14%20-1377Report-final.pdf
- https://web.archive.org/web/20231001091618/https://jdih.kominfo.go.id/produk_hukum/view/id/399/t/peraturan+menteri+komunikasi+dan+informatika+nomor+41permkominfo102009+tanggal+16+oktober+2009
- https://web.archive.org/web/20230326114326/https://jdih.kominfo.go.id/produk_hukum/view/id/713/t/peraturan+menteri+komunikasi+dan+informatika+nomor+12+tahun+2019+tanggal+25+oktober+2019
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INDONESIA
ITA signatory?
I
II
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Effective tariff rate on ICT goods (applied weighted average)
Effective tariff rate to ICT goods (applied weighted average)
0.97%
Coverage rate of zero-tariffs on ICT goods (%)
41.36%
Coverage: ICT goods
Sources
- http://wits.worldbank.org/WITS/
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
INDONESIA
N/A
Pillar Tariffs and trade defence measures applied on ICT goods |
Indicator Participation in the WTO Information Technology Agreement (ITA) and 2015 expansion (ITA II)
Lack of participation in Information Technology Agreement Expansion Agreement (ITA II)
Indonesia is a signatory of the World Trade Organization (WTO) Information Technology Agreement (ITA) of 1996, but is not a signatory of its 2015 expansion (ITA II).
Coverage ICT goods
Sources
- https://www.wto.org/english/news_e/brief_ita_e.htm#:~:text=ITA%20participants%3A%20Australia%3B%20Bahrain%3B,%3B%20Jordan%3B%20Korea%2C%20Rep.
- https://www.wto.org/english/res_e/booksp_e/ita20years_2017_full_e.pdf
- https://web.archive.org/web/20220120054410/https://trade.ec.europa.eu/doclib/docs/2016/april/tradoc_154430.pdf
- https://www.wto.org/english/tratop_e/inftec_e/itscheds_e.htm
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INDONESIA
Since January 2014
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Ministry of Industry Regulation No. 02/M-IND/PER/1/2014 (Peraturan Menteri Perindustrian 02/M-IND/PER/1/2014)
Art. 10 of Regulation No. 02/M-IND/PER/1/2014 provides that domestic service suppliers need to be prioritised. To qualify as a domestic service provider, a majority of the shares must be owned by an Indonesian citizen, and two-thirds of the board members must be local. If no domestic service suppliers are participating in the procurement, national service suppliers (with at least 10% of shares belonging to Indonesians) will be taken into consideration. Only when these are also unavailable will foreign service providers be allowed to participate in the procurement process as well (Art. 16.1).
Coverage Horizontal
INDONESIA
Since March 2018, last amended in February 2021
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Regulation of the President of the Republic of Indonesia No. 16 of 2018 on Government Procurement
Under Art. 63 of Presidential Regulation No. 16/2018, an International Tender may be conducted if no capable or eligible domestic Economic Operator is available, and:
- The estimated value of goods and other services exceeds Rp 50 billion (approx. USD 4.5 million), or
- The estimated value of consulting services exceeds Rp 25 billion (approx. USD 2.25 million).
Additionally, foreign business entities selected through an International Tender must collaborate with national business entities via a consortium, subcontract, or other forms of cooperation.
- The estimated value of goods and other services exceeds Rp 50 billion (approx. USD 4.5 million), or
- The estimated value of consulting services exceeds Rp 25 billion (approx. USD 2.25 million).
Additionally, foreign business entities selected through an International Tender must collaborate with national business entities via a consortium, subcontract, or other forms of cooperation.
Coverage Horizontal
Sources
- https://web.archive.org/web/20221003215153/https://peraturan.bpk.go.id/Home/Details/41063/perpres-no-54-tahun-2010
- https://web.archive.org/web/20211020042808/https://peraturan.bpk.go.id/Home/Details/73586/perpres-no-16-tahun-2018
- https://web.archive.org/web/20211026020428/https://www.globaltradealert.org/state-act/4690
- https://web.archive.org/web/20220305184557/https://trade.ec.europa.eu/doclib/docs/2014/november/tradoc_152872.pdf
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INDONESIA
Since March 2018, last amended in February 2021
Pillar Public procurement of ICT goods and online services |
Indicator Exclusion from public procurement
Regulation of the President of the Republic of Indonesia No. 16 of 2018 on Government Procurement
Art. 66 of Presidential Regulation No. 16/2018 provides that the ministries, institutions and regional apparatuses are obligated to use domestic products. Procurement of imported goods may be conducted in the event that the goods cannot be produced domestically or that domestic production volume is unable to meet the demand.
Coverage Horizontal
Sources
INDONESIA
Since October 2019
Pillar Public procurement of ICT goods and online services |
Indicator Surrender of patents, source code or trade secrets to win public tenders/Restrictions on technology standards for public tenders
Government Regulation No. 71/2019 on the Provision of Electronic System and Transaction (Peraturan Pemerintah (PP) Nomor 71 Tahun 2019 Penyelenggaraan Sistem dan Transaksi Elektronik)
Art. 9 of the Government Regulation No. 71/2019 requires that providers of bespoke software must provide or escrow the source codes associated with their service. The requirement applies to Electronic System Providers for public scope. This requirement was already contained in Art. 8 of Government Regulation No. 82/2012, which was repealed by Government Regulation No. 71/2019.
Coverage Electronic systems operators for public scope
Sources
- https://web.archive.org/web/20230322005029/https://peraturan.bpk.go.id/Home/Details/122030/pp-no-71-tahun-2019
- https://web.archive.org/web/20221012134007/https://jdih.kominfo.go.id/produk_hukum/view/id/6/t/peraturan+pemerintah+republik+indonesia+nomor+82+tahun+2012
- https://web.archive.org/web/20220121201607/http://cloudscorecard.bsa.org/2016/pdf/country_reports/2016_Country_Report_Indonesia.pdf
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KOREA
N/A
Pillar Online sales and transactions |
Indicator UNCITRAL Model Law on Electronic Signatures
Lack of adoption of UNCITRAL Model Law on Electronic Signatures
Korea has not adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Signatures.
Coverage Horizontal
KOREA
Since March 2002, last amended in June 2012
Pillar Online sales and transactions |
Indicator Framework for consumer protection applicable to online commerce
Act on the Consumer Protection in Electronic Commerce Transactions etc. - Act No. 10303 (전자상거래 등에서의 소비자보호에 관한 법률)
The Act on Consumer Protection in Electronic Commerce Transactions provides a comprehensive framework for consumer protection that also applies to online transactions.
Coverage Horizontal
Sources
- https://www.law.go.kr/LSW/lsInfoP.do?lsiSeq=225097&ancYd=20201229&ancNo=17799&efYd=20211230&nwJoYnInfo=N&efGubun=Y&chrClsCd=010202&ancYnChk=0#0000
- https://www.law.go.kr/LSW//lsInfoP.do?lsiSeq=225063&ancYd=20201229&ancNo=17799&efYd=20211230&nwJoYnInfo=N&efGubun=Y&chrClsCd=010202&ancYnChk=0#0000
- https://www.law.go.kr/LSW//lsInfoP.do?lsiSeq=224973&ancYd=20201229&ancNo=17799&efYd=20221230&nwJoYnInfo=N&efGubun=Y&chrClsCd=010202&ancYnChk=0#0000
- https://unctad.org/page/cyberlaw-tracker-country-detail?country=kr
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KOREA
N/A
Pillar Online sales and transactions |
Indicator Ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Lack of ratification of the UN Convention on the Use of Electronic Communications in International Contracts
Korea has signed but not ratified the United Nations (UN) Convention on the Use of Electronic Communications in International Contracts.
Coverage Horizontal
KOREA
Since 1999
Pillar Online sales and transactions |
Indicator UNCITRAL Model Law on Electronic Commerce
UNCITRAL Model Law on Electronic Commerce
Korea has adopted national legislation based on or influenced by the United Nations Commission on International Trade Law (UNCITRAL) Model Law on Electronic Commerce.
Coverage Horizontal
KOREA
Since October 2006, entry into force in April 2007, last amended in 2025
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Export restrictions on ICT goods or online services
Act on Prevention of Divulgence and Protection of Industrial Technology (산업기술의 유출방지 및 보호에 관한 법률)
Art. 11 of the "Act on the Prevention of Divulgence and Protection of Industrial Technology" provides that when a target institution holding national core technology developed with government research and development subsidies intends to export such technology to a foreign enterprise or any other external entity, whether through sale, transfer or another means, it must obtain prior approval from the Minister of Trade, Industry and Energy. In reviewing an application for approval, the Minister may grant approval after assessing the potential effects of the export on national security, the national economy and other relevant interests, consulting with the head of the competent central governmental administrative authority, and obtaining deliberation by the Committee. Where a target institution holding and managing national core technology that is not subject to this approval requirement seeks to export such technology, it must submit a prior report to the Minister of Trade, Industry and Energy. Upon receiving this report, the Minister shall examine the likely impact of the proposed export on national security and any other pertinent factors, and shall accept the report if the export is deemed not to pose a serious risk to national security and to comply with the Act. The term national core technology refers to technology designated under Art. 9, the overseas divulgence of which could have a materially adverse effect on national security or on the development of the national economy, owing to its significant technological and economic value in domestic and international markets or its capacity to generate substantial growth in related industries.
Coverage National core technology
KOREA
Since December 1986, as amended in December 2008, last amended in June 2022
Pillar Quantitative trade restrictions for ICT goods and online services |
Indicator Export restrictions on ICT goods or online services
Foreign Trade Act (대외무역법)
Since 2008, the Foreign Trade Act has required a license prior to the export of strategic goods. These items include dual-use items. Among them, electronics (category 3), computers (category 4), telecommunications and information security (category 5), and sensors and lasers (category 6) are relevant to digital goods. These categories are controlled by the Ministry of Trade, Investment, and Energy.
Coverage Strategic goods
