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The Second Japan-Indonesia Policy Dialogue on Distribution was Held

On June 20, 2014, the Ministry of Economy, Trade and Industry (METI) and the Ministry of Trade of Indonesia held the Second Japan-Indonesia Policy Dialogue on Distribution, in Yogyakarta, Indonesia.

1. Outline of the dialogue

Date:
June 20 (Fri.), 2014; 14:40 to 19:10

Intergovernmental dialogue: 14:40 to 16:50
Public-private forum: 17:10 to 19:10

Location:
Yogyakarta, Indonesia
Participants:
METI: Mr. Tatsuya Terazawa, Director-General for Commerce, Distribution and Industrial Safety Policy, and others
Ministry of Trade of Indonesia: Ms. Srie Agustina, Director General of Domestic Trade, and others

Participants that attended the public-private forum only:
Japanese side: Two companies and two organizations Indonesian side: One company and five organizations

2. Outline of the results

On June 20, 2014, METI and the Ministry of Trade of Indonesia held the Second Japan-Indonesia Policy Dialogue on Distribution, in Yogyakarta, Indonesia.

1) Intergovernmental dialogue

Director-General Terazawa pointed out that Indonesia has further strengthened the regulations for foreign invested companies since the first dialogue.* He also required the country to eliminate the investment regulations imposed on foreign distributors in the country and eliminate local content requirements.

*Note:
Concerning the investment regulations, in April 2014, Indonesia newly promulgated Presidential Decree No. 39 to additionally limit foreign investment in the wholesale industry and warehouse industry in the country, expanding the scope of limits to foreign investment beyond convenience stores and minimarkets or retail stores with a floor area of 400m2 or less, which were already covered by the regulation.

Concerning the local content requirements, a measure under which the local government requires foreign-invested enterprises that develop business in the country to buy or use domestic-origin products or products supplied from domestic sources, Indonesia also promulgated the Minister of Trade Decree No. 70 in December 2013 to expand the coverage of the local content requirements from franchise businesses, originally stipulated, to modern stores (e.g., minimarkets, supermarkets, department stores, hypermarkets, and retail stores) and shopping centers.

In response, Director General Srie stated that she will convey Japan’s findings to the Indonesian government for discussion, and proposed that Japan and Indonesia should have a bilateral working-level dialogue to study the issues around fall 2014, before the next director-general level dialogue.

2) Public-private forum

As a representative of the Japanese side, Familymart Co., Ltd. introduced its business activities in Indonesia and stated that the company will contribute to improving distribution networks and expanding employment opportunities in the country.

The Indonesian side announced that the market for minimarkets is expected to further grow along with the future increase of the estimated national income per capita in the country.

Release Date

June 23, 2014

Division in Charge

Distribution and Logistics Policy Division, Distribution and Industrial Safety Policy Group

Related Information

Regional Affairs / Indonesia

Ministry of Economy, Trade and Industry
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