 
. /. RESTRICTED  WORLD TRADE  
ORGANIZATION  S/CSC/W/42/Rev.1/Corr.11 
25 November 2004 
 (04-5136) 
Committee on Specific Commitments  Original:   English 
  
 
COMMUNICATION FROM INDONESIA  
 
Proposal on Classification of Energy Services
 
 
Corrigendum  
 
 
 The revised proposal on classification of energy  services by Indonesia was issued without its 
cover note, as contained in the original proposal  (S/CSC/W/42).  The cover note is now reproduced 
below and should be considered an in tegral part of S/CSC/W/42/Rev.1.  
 
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  1. This paper is submitted without prejudice to  Indonesia’s position on this and other service 
sector negotiations, or on any future offer on this or other sectors. Indonesia reserves the rights to 
modify this proposal at any time. 
I. INTRODUCTION 
2. Indonesia continues to conduct consultations on issues under the services negotiations, in 
particular those relating to the energy sector ser vices. As the negotiation process is still ongoing, 
Indonesia would like to share its preliminary thoughts concerning classification on energy sector 
services.  
3. For the purpose of this paper, energy sector servi ces include the oil and gas sector, electricity 
sector and mineral resources sector. These sectors c overs a wide range of services, subdivided into 
upstream services, downstream services, energy commercialisation services, professional services, and any other energy services. Companies involve in these sectors vary ranging from small and medium-sized businesses (SMEs) to large national and multinational companies. 
4. Trade and economic endeavour should be conducted with a vi ew to supporting national 
economic development and, ultimately, raising the sta ndard of living of the peopl e. In this connection, 
and as a means towards achieving a higher level of  economic development, Indonesia is of the view 
that the management and utilization of natural wealth  and resources should be freely at the disposable 
of the people. Obligations arising from interna tional economic co-operation must be based on the 
principle of mutual benefit, as we ll as on international law, which s hould not impair the inherent right 
of all peoples to enjoy and utilize fully and freely their natural wealth and resources. 
5. Reiterating the strategic nature of energy sector, the multilateral framework should respect 
national policy objectives and the members’ right to regulate on the supply of energy services within their territories and should also recognize the particul ar needs of developing countries and the level of 
development of individual members, both overall and in energy sector. 
                                                     
 
1 In English only. S/CSC/W/42/Rev.1/Corr.1 
Page 2  
 
 6. Recognizing the growing importance of trade in  services for the growth and development of 
national and world economies alike, it is important  to ensure that developing countries can fully 
participate in trade in services through the expans ion of their services exports. This requires the 
strengthening of developing countries domestic  services capacity, notably through increased 
efficiency and competitiveness.  
II. PROPOSAL 
7. Indonesia believes that development a detailed classification of the energy service sector 
offers a comprehensive and essential instrument  for the WTO members in negotiating specific 
commitments in energy services.  
8. The main classifications proposed are upstr eam activity, downstream activity, energy 
commercialization activity, professional activity and ot her energy services activity, thus covering the 
full scope of energy services.  
(a) The “upstream services” comprise  “non-rene wable energy” and “renewable energy”  
(b) The “downstream services” related to energy transformation, transportation and 
distribution services.   
(c) The “energy commercialization services “ cons ists of the wholesale supply of energy, 
retail supply of energy and commission agent services. 
(d) The “professional services” include expe rtise supply services, human resources 
training and development services. 
(e) The “other energy services” cover any activit y not listed in the previous services.  
9. Indonesia’s proposal for a detailed classificati on of the energy services reflects the current 
commercial reality. Under each main classification,  a breakdown of services is presented with CPC 
Provisional Codes describing the actual formation of  the commercial reality of energy services and 
energy related services. In this regard, we welcome contribution and discussion from the WTO 
members as part of the work in progress. 
 
 
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