Report of the Joint Study Group on the Feasibility of India-Indonesia ...

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43 No. Business Field Sector Radio Frequency and Satellite Orbit 10. Public Broadcasting Service <strong>of</strong> Communication and Radio and Television Information 11. Provider and Operator <strong>of</strong> Inland Transportation Terminal 12. Management and Operation <strong>of</strong> Transportation Weighing-Bridge 13. Operator <strong>of</strong> Motor Vehicle Type Transportation Test 14. Operator <strong>of</strong> Motor Vehicle Transportation Regular Test 15. Telecommunication/Marine Aids Transportation to Navigation 16. Vessel Traffic Informsation Transportation System 17. Air Traffic Service Provider Transportation 18. Chemical Industry Industry Environmental Damageability 19. Chemical Industry Schedule-1, Industry Chemical Weapon Convention 20. Alcoholic Beverage Industry Industry 21 Chlor Alkali Industry with Industry Mercury-Contained Materials 22. Cyclamate and Saccharin Industry Industry 23 Marijuana Cultivation Agriculture Source Appendix 1 to Presidential Regulation <strong>of</strong> <strong>the</strong> Republic <strong>of</strong> Indonesia no. 111/2007, 27 December 2007. Presidential Regulation No. 111/207 also lists several fields which are open to investment with certain conditions, such as those reserved for micro, small and medium-sized enterprises and cooperatives; those only open if conducted as partnerships; those where <strong>the</strong>re is a limitation <strong>of</strong> foreign capital ownership, ranging between a maximum <strong>of</strong> 49 to 95 foreign equity ownership; those for which a special permit is required; those where <strong>the</strong>re is a limitation on capital ownership or location; and those where a special permit is required as well as a limitation on foreign equity ownership. III.3.2.2.Industrial Policy Indonesia’s industrial policy during <strong>the</strong> early Soeharto era (1967-1972) and <strong>the</strong> subsequent oil boom era (1973-1981) put a heavy emphasis on import-substitution which was
44 underpinned by high protection against imports. However, following <strong>the</strong> end <strong>of</strong> <strong>the</strong> oil boom era in 1982, <strong>the</strong> government shifted to a successful export-promoting industrial strategy, to a significant extent underpinned by FDI, particularly from <strong>the</strong> East Asian newlyindustrialising economies (NIEs), in largely labour-intensive industries. The Asian economic crisis which hit Indonesia in 1997/98 has derailed industrial progress, as <strong>the</strong> focus <strong>of</strong> industrial policy shifted to saving <strong>the</strong> manufacturing sector through an Industrial Revitalisation Program. In accordance with <strong>the</strong> National Medium-Term Development Program, <strong>the</strong> focus <strong>of</strong> industrial development for <strong>the</strong> medium-term (2004-2009) is on streng<strong>the</strong>ning and developing core industrial clusters: 1. Food and beverages industry 2. Fishing industry 3. Textiles and textile products industry 4. Footwear industry 5. Palm oil industry 6. Timber industry (including rattan and bamboo) 7. Rubber and rubber-based products industry 8. Pulp and paper industry 9. Electrical engineering and electrical equipment industry 10. Petrochemical industry. In <strong>the</strong> long term, industrial development should aim at streng<strong>the</strong>ning competitiveness, <strong>the</strong> deepening <strong>of</strong> <strong>the</strong> domestic processing chain and motivating <strong>the</strong> growth <strong>of</strong> an industrial network in cluster formats suited to <strong>the</strong> following industry groups: 1. Agro industry 2. Transport industry 3. Information and communication industry 4. Basic Manufacturing industry 5. Certain Small and Medium-Scale industries (Department <strong>of</strong> Industry, R.I., June 2008). In achieving <strong>the</strong> above objectives, FDI, including from India, in Indonesia’s manufacturing industries is welcome, except in those industries closed to investment, as listed in Table 12.
Page 1 and 2: 0 Report o
Page 3 and 4: 2 Letter of Transm
Page 5 and 6: 4 4. These estimates were complemen
Page 7 and 8: 6 I. Overview The bilateral relatio
Page 9 and 10: 8 II. Trade in Goods II. 1. Introdu
Page 11 and 12: 10 Box 2 : Indonesia’s Trade Poli
Page 13 and 14: 12 Indonesia has stressed that <str
Page 15 and 16: 14 II.2.2. Volatility This fluctuat
Page 17 and 18: 16 Table 4. Relative Importance <st
Page 19 and 20: 18 Nevertheless, d
Page 21 and 22: 20 II.7.1. Rules of</strong
Page 23 and 24: 22 II. 7. 3. TBT, Sanitary and Phyt
Page 25 and 26: 24 II.8.2. CGE Simulations To compl
Page 27 and 28: 26 Objectives The national steel in
Page 29 and 30: 28 Table 9. Trade Complementarities
Page 31 and 32: 30 Intra industy trade has been bei
Page 33 and 34: 32 India has improved its position
Page 35 and 36: 34 the Government
Page 37 and 38: 36 (D). FDI has been allowed up to
Page 39 and 40: 38 public health safety and securit
Page 41 and 42: 40 Table 11 Portfolio investment fl
Page 43: 42 event that the
Page 47 and 48: 46 From August 1991 to December 200
Page 49 and 50: 48 A perusal of <s
Page 51 and 52: 50 III.4.2. Indonesia Indonesia ran
Page 53 and 54: 52 largest Indian investments took
Page 55 and 56: 54 Number Business Field Region/Pro
Page 57 and 58: 56 - identify target areas for tech
Page 59 and 60: 58 of prof
Page 61 and 62: 60 3.10. Construction and Related E
Page 63 and 64: 62 With an ICT penetration rate <st
Page 65 and 66: 64 telecommunication services in In
Page 67 and 68: 66 operate international telephone
Page 69 and 70: 68 Banking Architecture (API). API
Page 71 and 72: 70 Under the propo
Page 73 and 74: 72 3. To improve the</stron
Page 75 and 76: 74 IV.4.9.2. India Given India's un
Page 77 and 78: 76 is limited up to 49 per cent. On
Page 79 and 80: 78 • Have substantial sectoral co
Page 81 and 82: 80 • Availability of</str
Page 83 and 84: 82 V. 5.3. Forestry Indonesia has a
Page 85 and 86: 84 V.6. Cooperation in Transportati
Page 87 and 88: 86 countries/ agencies, after signi
Page 89 and 90: 88 For enhancing training and educa
Page 91 and 92: 90 In a partial-equilibrium framewo
Page 93 and 94: 92 VI.4 Trade in Services In respec
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1 Terms of Referen
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3 Table A.I.1 Composition o
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5 Table A.I.2 Composition o
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7 Annexure 2 Table A.II.I Sectors w
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9 Table A.II.I Sectors with Dynamic
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11 Table A.II.2 Sectors with Dynami
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13 Annexure 3 Table A.III.1 Indones
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15 Table A.III.2 Indonesia as an Im
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17 Annexure 4 Table A.IV.1 Potentia
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19 Table A.IV.1 Potential for India
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45 Table A.IV.3 Potential for <stro
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59 Table A.V.1 Items Amenable for I
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75 Annexure 6 HS 6-digit Code Table
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77 HS 6-digit Code Table A.VI.1 Ind
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85 Annexure 7 Table: Macro Economic
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87 Forecasting India’s exports to
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89 POLICY ON FOREIGN DIRECT INVESTM
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91 (iii) Other ser
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93 vii) viii) ix) x) xi) xii) xiii)
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95 30. Satellites - Establishment a
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97 Investment Incentives Annexure C
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99 India's share in Asia**) 2.46 4.
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101 Fig 6: Comparative Trend in RCA
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