RESTRICTED
WORLD TRADE S/GBT/W/1/Add.15
31January 1997
ORGANIZATION(97-0402)
Original: English Group onBasic Telecommunications
COMMUNICATION FROM INDONESIA
Draft Offer onBasic Telecommunications
Thefollowing communication iscirculated attherequest ofIndonesia tomembers ofthe
Group onBasic Telecommunications.
_______________
Indonesia ispleased tosubmit theaccompanying draftoffer onbasic telecommunications.
Indonesia reserves therighttomodify thisconditional offer atanytimeprior tothe
conclusion ofthenegotiations onbasic telecommunications.
Indonesia furthermore reserves therighttomake technical changes, amendments and
corrections totheoffer.S/GBT/W/1/Add.15
Page2INDONESIA -DRAFT OFFER 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) Theforeign service
supplier must bea
worldclass operator with
extensive international
experience
(ii) Type approval
mechanism isinplace
(iii) Basic telecommunication
service tariff isdecided
bythegovernment;
Local service:
Public switched telephone
service (7521)
Circuit switched public data
network services (7523**)
Telecomferencing 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
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**)
Telecomferencing 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
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**)
Telecomferencing 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
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
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
Selection ofnewoperators isdependent
onavailability offrequency and
economic needs
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
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
Selection ofnewoperators isdependent
onavailability offrequency and
economic needs
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
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.
New entrants tobedetermined by
availability offrequency, economic
needs andpublic interest test.
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
Page9Modes 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:
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
Page10HORIZONTAL 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.