RESTRICTED
WORLD TRADE S/GBT/W/1/Add.15/Rev.1
15February 1997
ORGANIZATION(97-0631)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM INDONESIA
Draft Schedule onBasic Telecommunications
Revision
Thefollowing communication iscirculated attherequest ofIndonesia tomembers oftheGroup
onBasic Telecommunications.
_______________
IndonesiaispleasedtosubmittheaccompanyingfinaldraftScheduleonbasictelecommunications.
Indonesia reserves therighttomodify thisfinaldraftSchedule atanytimepriortotheconclusion
ofthenegotiations onbasic telecommunications.
Indonesiafurthermorereservestherighttomaketechnicalchanges,amendmentsandcorrections
totheoffer.S/GBT/W/1/Add.15/Rev.1
Page2INDONESIA -DRAFT SCHEDULE ONBASIC TELECOMMUNICATIONS
Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
AllSubsectors (i) Indonesia undertakes
additional commitments
asperreference paper
attached
(ii) Theforeign service
supplier must bea
worldclass operator with
extensive international
experience
(iii) Type approval
mechanism isinplace
(iv) Basic telecommunication
service tariff isdecided
bythegovernment;
Local service:
Public switched telephone
service (7521)
Circuit switched public data
network services (7523**)
Teleconferencing services
(75292)(1) None
(2) None
(3) Local services areprovided exclusively
byPTTelkom and5regional joint
operation scheme operators.
Type oflegal entity required:
-Joint venture,
-Joint operation, or
-Contract management
Foreign equity participation islimited to
35percent.
(4) Natural person formanagement and
technical expert foraJVCislimited to
20persons.(1) Unbound
(2) Unbound
(3) None
(4) Asspecified inhorizontal measuresTheperiod ofexclusivity for
local services expires in2011.
TheGovernment willconduct
areview ofpolicy with
respect towhether topermit
additional suppliers ofsuch
services upon theexpiry of
thisperiod.S/GBT/W/1/Add.15/Rev.1
Page3Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Long distance:
Public switched telephone
service (7521)
Circuit switched public data
network services (7523**)
Teleconferencing services
(75292)(1) None
(2) None
(3) Long distance services areprovided by
PTTelkom exclusively
Type oflegal entity required:
-Joint venture
-Joint operation or
-Contract management
Foreign equity participation islimited to
35percent.
(4) Natural person formanagement and
technical expert foraJVCislimited to
20persons.(1) Unbound
(2) Unbound
(3) None
(4) Asspecified inhorizontal measuresTheperiod ofexclusivity for
longdistance services expires
in2006. TheGovernment
willconduct areview of
policy withrespect towhether
topermit additional suppliers
ofsuch services upon the
expiry ofthisperiod.S/GBT/W/1/Add.15/Rev.1
Page4Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
International:
Public switched telephone
service (7521)
Circuit switched public data
network services (7523**)
Teleconferencing services
(75292)(1) Only through networks ofPTIndosat
andPTSatelindo. Callback isnot
permitted.
(2) Callback isnotpermitted.
(3) International services areprovided
exclusively byPTIndosat andPT
Satelindo (duopoly).
Type oflegal entity required:
-Joint venture
-Joint operation or
-Contract management
Foreign equity participation islimited to
35percent.
(4) Natural person formanagement and
technical expert islimited to20
persons.(1) Unbound
(2) Unbound
(3) None
(4) Asspecified inhorizontal measuresTheperiod ofexclusivity for
international services expires
in2005. TheGovernment
willconduct areview of
policy withrespect towhether
topermit additional suppliers
ofsuch services upon the
expiry ofthisperiod.S/GBT/W/1/Add.15/Rev.1
Page5Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Packet-switched public data
network services (7523**)
-X.25
-Frame relay
-Local
-Local distance
-International(1) Only through networks ofPTIndosat
andPTSatelindo
(2) None
(3) Three service suppliers arenow
operating onanon-exclusive basis
Type oflegal entity required:
-Joint venture or
-Joint operation
Foreign equity participation islimited to
35percent.
(4) Natural person formanagement and
technical expert islimited to20persons.(1) Unbound
(2) Unbound
(3) None
(4) Asspecified inhorizontal measures
Telex services (1) Only through networks ofPTIndosat
andPTSatelindo
(2) None
(3) Type oflegal entity required:
-Joint venture or
-Joint operation
Foreign equity participation islimited to
35percent.
(4) Natural person formanagement and
technical expert limited to20persons.(1) Unbound
(2) Unbound
(3) Foreign service supplier should bea
worldclass operator.
(4) Asspecified inhorizontal measures.S/GBT/W/1/Add.15/Rev.1
Page6Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Telegraph services (1) Only through networks ofPTIndosat
andPTSatelindo
(2) None
(3) Type oflegal entity required:
-Joint venture or
-Joint operation
Foreign equity participation islimited to
35percent.
(4) Natural person formanagement and
technical expert limited to20persons(1) Unbound
(2) Unbound
(3) Foreign service supplier should bea
worldclass operator.
(4) Asspecified inhorizontal measures.
Domestic:
Mobile cellular telephone
services (75213)(1) None
(2) None
(3) Seven operators arenow providing
service
Type oflegal entity required: Joint
venture
Foreign equity participation islimited to
35percent
(4) Natural person formanagement and
technical expert foraJVCislimited to
20persons(1) Unbound
(2) Unbound
(3) None
(4) Asspecified inhorizontal measures.S/GBT/W/1/Add.15/Rev.1
Page7Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Domestic:
Personal Mobile Cellular
Communication Services(1) None
(2) None
(3) New entry onlythrough ajoint venture
withstate-owned company
Foreign equity participation islimited to
35percent
(4) Natural person formanagement and
technical expert foraJVCislimited to
20persons.(1) Unbound
(2) Unbound
(3) None
(4) Asspecified inhorizontal measures
Internet Access Services (1) Until 2005, onlythrough networks of
PTIndosat andPTSatelindo for
international access
(2) None
(3) More than30licences have been issued
Type oflegal entity required:
-Joint venture or
-Joint operation
Foreign equity participation islimited to
35percent.
(4) Natural person formanagement and
technical expert limited to20persons(1) Unbound
(2) Unbound
(3) None
(4) Asspecified inhorizontal measuresS/GBT/W/1/Add.15/Rev.1
Page8Modes ofsupply: 1) Cross-border supply 2) Consumption abroad 3) Commercial presence 4) Presence ofnatural persons
Sector orSub-sector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Domestic:
Regional andNational Paging
Services (75291)(1) None
(2) None
(3) Currently there are10national operators
andover70local operators.
Type oflegal entity required
-Joint venture or
-Joint operation
Foreign equity participation islimited to
35percent
(4) Natural person formanagement and
technical expert limited to20persons(1) Unbound
(2) Unbound
(3) None
(4) Asspecified inhorizontal measures
Domestic:
Public payphone services(1) None
(2) None
(3) Provision andmanagement ofterminal
equipment forpublic payphone services
arenowcarried outbyseveral local
companies.
Type oflegal entity required:
-Joint venture,
-Joint operation, or
-Contract management
Foreign equity participation islimited to
35percent.
(4) Natural person formanagement and
technical expert limited to20persons(1) Unbound
(2) Unbound
(3) None
(4) Asspecified inhorizontal measures- Division ofrevenue
between thepayphone
operator andPTTelkom
isdetermined bythe
governmentS/GBT/W/1/Add.15/Rev.1
Page9HORIZONTAL MEASURES
Sector orsubsector Limitations onMarket Access Limitations onNational Treatment Additional Commitments
Definitions:
"Director": oneoragroup ofpersons entrusted bytheshareholders ofaservices providing entity withthefinal overall control anddirection oftheenterprise, and
legally responsible toactonbehalf oftheenterprises inside and/or outside ofthecourt.
"Manager": Senior employee ofaservice supplier whoprimarily directs themanagement oftheorganization, receiving general supervision ordirection principally
from theboard ofdirectors ofthebusiness, including directing theservice supplier oradepartment orsub-division thereof, supervising orcontrolling thework of
other supervisory, professional ormanagerial employee orhaving theauthority tohireorfireorrecommend such orother personal actions.
"Technical Expert/Advisor": Person employed byaservice supplier whopossesses astandard ofhighorcommon (i)qualifications referring toatypeofwork or
trade requiring specific technical knowledge or(ii)knowledge essential orproprietal totheservice, research equipment, techniques ormanagement.
"Joint Operation": Ajoint operation isanundertaking between oneorseveral foreign andIndonesian enterprises oftemporary nature, tohandle oneorseveral
project/businesses without establishing anewstatutory body according toIndonesian laws.
"Joint venture": Ajoint venture isalegal entity organized under Indonesian lawandhaving itsdomicile inIndonesian, intheform ofcooperation between foreign
capital andIndonesian (national) capital.
"Contract management": Contract management isacontract organized under Indonesian lawintheform ofcooperation onmanagement oftemporary nature
between Indonesian (national) capital andforeign capital.S/GBT/W/1/Add.15 /Rev.1
Page10
ATTACHMENT TOTHE REPUBLIC OFINDONESIA
DRAFT SCHEDULE ONBASIC TELECOMMUNICATIONS
REFERENCE PAPER
Scope
Thefollowingaredefinitionsandprinciplesontheregulatoryframeworkforthebasictelecommunications
services.
Definitions
Users mean service consumers andservice suppliers.
Essential facilities mean facilities ofapublic telecommunications transport network orservice that
(a) areexclusively orpredominantly provided byasingle orlimited number ofsuppliers;
and
(b) cannot feasibly beeconomically ortechnically substituted inorder toprovide aservice.
Amajor supplier isasupplier which hastheability tomaterially affect theterms ofparticipation (having
regard toprice andsupply) intherelevant market forbasic telecommunications services asaresult
of:
(a) control overessential facilities; or
(b) useofitsposition inthemarket.
1. Competitive safeguards
1.1 Prevention ofanti-competitive practices intelecommunications
Appropriate measures shallbemaintained forthepurpose ofpreventing suppliers who, alone
ortogether, areamajor supplier from engaging inorcontinuing anti-competitive practices.
1.2 Safeguards
Theanti-competitive practices referred toabove shallinclude inparticular:
(a) engaging inanti-competitive cross-subsidization;
(b) using information obtained from competitors withanti-competitive results; and
(c) notmaking available toother services suppliers onatimely basistechnical information
about essential facilities andcommercially relevant information which arenecessary
forthem toprovide services.S/GBT/W/1/Add.15 /Rev.1
Page11
2. Interconnection
2.1 Thissection applies tolinking withsuppliers providing public telecommunications transport
networks orservices inorder toallow theusers ofonesupplier tocommunicate withusers ofanother
supplier and toaccess services provided byanother supplier, where specific commitments are
undertaken.
2.2 Interconnection tobeensured
Interconnection withamajor supplier willbeensured atanytechnically feasible point inthe
network. Such interconnection isprovided.
(a) under non-discriminatory terms, conditions (including technical standards and
specifications) andratesandofaquality nolessfavourable thanthatprovided forits
ownlikeservices orforlikeservices ofnon-affiliated service suppliers orforits
subsidiaries orother affiliates;
(b) inatimely fashion, onterms, conditions (including technical standards and
specifications) andcost-oriented ratesthataretransparent, reasonable, having regard
toeconomic feasibility, andsufficiently unbundled sothatthesupplier neednotpay
fornetwork components orfacilities thatitdoesnotrequire fortheservice tobe
provided; and
(c) upon request, atpoints inaddition tothenetwork termination points offered tothe
majority ofusers, subject tocharges thatreflect thecostofconstruction ofnecessary
additional facilities.
2.3 Public availability oftheprocedures forinterconnection negotiations
Theproceduresapplicableforinterconnectiontoamajorsupplierwillbemadepubliclyavailable.
2.4 Transparency ofinterconnection arrangements
Itisensured thatamajor supplier willmake publicly available either itsinterconnection
agreements orareference interconnection offer.
2.5 Interconnection: dispute settlement
Aservice supplier requesting interconnection withamajor supplier willhaverecourse, either:
(a) atanytimeor
(b) afterareasonable period oftimewhich hasbeenmade publicly known
toanindependent domestic body, which maybearegulatory authority asreferred toinparagraph 5
below, toresolve disputes regarding appropriate terms, conditions andratesforinterconnection within
areasonable period oftime, totheextent thatthese havenotbeenestablished previously.S/GBT/W/1/Add.15 /Rev.1
Page12
3. Universal service
AnyMemberhastherighttodefinethekindofuniversalserviceobligationitwishestomaintain.
Such obligations willnotberegarded asanti-competitive perse,provided theyareadministered in
atransparent, non-discriminatory andcompetitively neutral manner andarenotmore burdensome than
necessary forthekindofuniversal service defined bytheMember.
4. Public availability oflicensing criteria
Where alicence isrequired, thefollowing willbemade publicly available:
(a) allthelicensing criteria andtheperiod oftimenormally required toreach adecision
concerning anapplication foralicence and
(b) theterms andconditions ofindividual licences.
Thereasons forthedenial ofalicence willbemade known totheapplicant upon request.
5. Regulatory Authority
TheregulatoryAuthorityisnotaccountableto,anysupplierofbasictelecommunicationsservices.
Thedecisions ofandtheprocedures usedbyregulators shallbeimpartial withrespect toallmarket
participants.
6. Allocation anduseofscarce resources
Anyprocedures fortheallocation anduseofscarce resources, including frequencies, numbers
andrights ofway,willbecarried outinanobjective, timely andtransparent manner. Thecurrent state
ofallocated frequency bands willbemade publicly available, butdetailed identification offrequencies
allocated forspecific government usesisnotrequired.