./.RESTRICTEDWORLD TRADE
ORGANIZATIONG/STR/Q1/IDN/10
18 June 1999
(99-2487)
Working Party on
State Trading EnterprisesOriginal:  English
STATE TRADING
Replies to Questions Posed by the UNITED STATES1
Concerning the New and Full Article XVII Notification of INDONESIA2
The following communication, dated 2 June 1999, has been received from the Permanent
Mission of Indonesia.
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Q1. In its submission of 16 November 1998, Indonesia states that Presidential Decree
Number 19/1998 (21 January 1998) and the Decrees of the Minister of Industry and Trade
Number 439/MPP/Kep/9/1998 (22 September 1998) ended Badan Urusan Logistik's (BULOG)authority as sole importer and/or exporter of rice, wheat, sugar, wheat flour, soybeans, and
garlic.  Therefore, Indonesia indicates that BULOG is no longer granted special or exclusive
privileges under Article XVII of the GATT.
Reply
With regard to Badan Urusan Logistik (BULOG), this agency does not import commodities
any longer, as earlier notified to the WTO (G/STR/N/4/IDN), including rice and wheat/wheat flour.
However, at present BULOG still maintains a certain amount of stock for limited distribution to and
consumption by the Indonesian Armed Forces and civil servants, as well as within the framework of
the social safety net, and as relief to alleviate victims of natural disasters.
Q2. While BULOG is no longer the sole importer of rice and wheat, we understand that the
agency still continues to have a significant role in rice distribution and still has large stocks of
wheat and flour to dispose of.  In the interest  of transparency, we would be interested in
knowing if there is a timetable for BULOG's disposal of all its remaining stocks of wheat and
flour and, if so, we would appreciate knowing what that timetable is.  In addition, we wouldappreciate it if you could clarify the remaining role that BULOG will have with respect to rice
distribution and imports.  Under what conditions can private firms import?
Reply
Pursuant to the Decree of the Minister of  Industry and Trade Number 439/MPP/Kep/9/1999
of 22 September 1998, BULOG is no longer allowed to import rice, but it continues to carry out the
task of maintaining stock for distribution to and consumption by the above-mentioned beneficiaries.
                                                     
1 G/STR/Q1/IDN/9
2 G/STR/N/4/IDNG/STR/Q1/IDN/10
Page 2
Private firms can import as long as they meet all of the requirements as general importers and
follow the market mechanism.
Q3. We also understand that, according to IMF requirements, Indonesia's plywood cartel
APKINDO has been disbanded.  Although, in past notifications, the Government of Indonesiahas stated that APKINDO does not constitute a state trading enterprise within the meaning of
Article XVII or the Understanding, we would appreciate it if Indonesia would provide the
Working Party with a report on APKINDO's status.
Reply
On APKINDO's status, I would like to reiterate that APKINDO does not constitute a state
trading enterprise within the meaning of Article XVII .  For this reason, we are of the view that the
question on APKINDO should not be raised in the Working Party on State Trading Enterprises.
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