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INDONESIA TRADE DIRECTORY ON DISK

1993

TRADEWARE BOX 406 WHITE MARSH VA 23183


TITLE       : INDONESIA - COUNTRY MARKETING PLAN FY'93 -




                      INDONESIA COUNTRY MARKETING PLAN

                                    FY 93


                              American Embassy
                             Jakarta, Indonesia




                   Fiscal-year 1993 Country Marketing Plan
                                for Indonesia

                              Table of Contents

Part          Description

I             Country Data

              A. Profile
              B. Domestic economy
              C. Trade
              D. Investment

II            Best Prospects

III           Commercial Environment

IV            Financing Environment

V             Trade and Investment Issues/Barriers

              A. Major trade barriers
              B. Major investment barriers

VI            Market Analysis Plan

VII           Trade Event Plan


I.  INDONESIA COUNTRY DATA


A.  PROFILE                          1990     1991     1992 (e)

Population (million)                  179      183      185

Religion(s):  Majority Moslem: approx.: 86 percent;
              Christian: approx.: 7 percent;
              Hindu/Buddhist: approx.: 7 percent

Government:   Presidential; Parliamentary Republic

Language:     Bahasa Indonesia

Work Week:    Monday through Saturday morning.  Many firms work
              only half days on Friday as it is the day of
              worship for Moslems.

Contacts:     Theodore J. Villinski
              Counselor for Commercial Affairs
              American Embassy Jakarta
              Phone 360-360 ext. 2085
              Fax [phone]
              Telex 44218 AMEMB IA

              Karen Goddin, Indonesian Desk Officer
              U.S. Department of Commerce
              Office of the Pacific Basin, Rm 2032
              Washington, D.C. 20230
              Phone [phone]
              Fax [phone]

              Carol Kim, Regional Manager
              Office of International Operations, US&FCS
              Room 1229
              U.S. Department of Commerce
              Washington, D.C. 20230
              Phone [phone]
              Fax [phone]

              Janet Thomas, US&FCS/ADB
              Asian Development Bank (Manila)
              2330 Roxas Blvd.
              P.O. Box 789
              Manila, Philippines
              Phone (63) (2) 807-251



B. DOMESTIC ECONOMY
                                          1990     1991    1992(e)
                                        (Millions US$)

GDP (current prices)                     107,158  116,158  126,146
GDP Growth Rate (%)
(in constant 1983 prices)                    7.3     6.8       6.0
GDP Projected average growth
rate through 1994 (percent)        6.2

GDP per capita ($ at
prevailing exchange rate)                    599     638       682
Government spending as
% of GDP                                    25.0    22.9      21.7
Inflation (%)                               9.8     10.5      10.6
Unemployment (%)                            3.0      2.4      2.5

Foreign Exchange Reserves                 8,661    9,868   10,000
Average Exchange Rate
(US$1 = RP.)                              1,843    1,950     2,047
Foreign Debt (government
sector)                                  45,000   48,000    50,500
Debt Service Ratio                         23.1     22.6      21.4
U.S. Economic Assistance*                  65.6    174.5     160.0
U.S. Military Assistance**                  1.9      2.3       2.5

C. TRADE                                  1990     1991    1992(e)
                                         (Millions US$)

Total Exports (F.O.B.)                   25,675   29,142   32,500

Total Imports (C.I.F.)                   21,837   25,869    27,000
Notes:

Source: * - US Agency for International Development - Jakarta
        **- Office of Military Assistance Defense Programs -
            US Embassy Jakarta

All figures, unless stated otherwise, are based on the Bank Indonesia (the
Central Bank) and the Indonesian Central Bureau of Statistics' publications.

Exports to the U.S. (F.O.B.)              3,364    3,508     3,650
Imports from the U.S. (C.I.F.)            2,520    3,397     3,700
U.S. share of host-country
imports (%)                               11.5      13.1      13.8
U.S. share of host-country
exports (%)                               13.1      12.0      11.2
Imports of manufactured goods
(C.I.F.)                                 17,084   20,220    21,500
Projected average growth rate
through 1994 (percent)             6.0

Imports of manufactured goods
from the U.S. (C.I.F.)                   2,045     2,751    2,960

Projected average growth rate
of imports of manufactured
goods from the U.S. (C.I.F.)      14.0

U.S. share of imports of
manufactured goods (C.I.F.)-(%)            11.9     13.6     13.8

Projected average growth
rate through 1994 (percent)        5.0

Indonesian Trade Balance

Japan                                    +5,623   +4,440   +4,500
United States                              +844     +111      -50
Germany                                    -751   -1,708   -1,700




NOTE: Below are listed selected U.S. Department of Commerce trade
statistics.  Significant discrepancies exist between U.S. and Indonesian
trade statistics, some of which may be explained by different methods used
to determine the country of origin of foreign shipments:

                                          1990     1991    1992(e)
                                         (Millions US$)

Exports to the U.S. (Customs value)**     3,343    3,238   3,500

U.S. share of exports
(Customs Value) (%)**                      13.0     12.5    10.8

Imports from the U.S. (F.A.S.)**           1,897   1,892   2,000

U.S. share of imports (%)                   8.7      7.3     7.4
(F.A.S. value)**

Indonesia/U.S. Trade Balance*              +844     +111     -50
Indonesia/U.S. Trade Balance**           +1,446   +1,346  +1,500

Notes: *- Based on Indonesian trade statistics
      **- Based on USDOC trade statistics


Principal U.S. exports to Indonesia
(In millions of U.S. Dollars)
(five items by tariff line item):          1990     1991  1992(e)


Cotton, not carded or combed                179      233     235
(Tariff code: 520100000)

Floating or submersible drilling
or production platform                      203      157     165
(Tariff code: 890520000)

Parts of boring and sinking machinery
(Tariff code: 843143000)                     84      120     125

Aeroplanes and other aircrafts of an
unladen weight not exceeding 15,000 kgs.
(Tariff code: 88024000)                       5      167      75

Polypropylene in granules
(Tariff code: 390210200)                     53       49      55


Principal U.S. imports from Indonesia
(In Millions of U.S. Dollars)
(five items by tariff line item):          1990    1991    1992(e)
Crude oil to be refined
(Tariff code: 270900100):                   626      663     650

SIR 20, rubber
(Tariff code: 400122160)                    307      312     310

Plywood with at least one outer ply
of the tropical woods
(Tariff code: 441211000)                    351      276     260

Shrimps and prawns, frozen
(Tariff code: 030613000)                     80      114     100

Sports footwear of rubber
(Tariff code: 640411100)                     76       95     100


D. INVESTMENT*                             1990    1991    1992(e)
                                          (Millions US$)

Total new foreign investment**            8,750    8,778    8,950

U.S. new investment**                       154      276      300

Accumulated total investment
from 1967 up to year end**               36,066   48,351   53,000

% U.S. share from 1967 up to
year end**                                  5.6      5.2      5.8

Principal foreign investors (accumulated total from 1967 through 1992)

- Japan                                   8,734   11,405   12,500
- Hong Kong                               3,372    4,213    4,750
- United States                           2,151    2,496    2,600

*Figures exclude oil and gas, insurance and banking sectors which are not
classified as investment by the Government of Indonesia.

**Figures for total investments are based on approvals received from the
Investment Coordinating Board.


II. BEST PROSPECTS

The following listing of Best Prospects has been selected by USFCS Indonesia
as those sectors where U.S. exports can be increased in FY-93.  The
selection is based on the amount and growth rate of imports in the sector
and on U.S. competitiveness in these sectors.

Note:  Explanation of codes below

A: Rank of sector
B: Name of sector
C: Three-letter ITA industry sector code
D: Estimate market size, 1992 (in millions of US dollars)
E: Estimate annual growth rate of market, 1992-1995 (percent)
F: Estimate total imports, 1992 (in millions of US dollars)
G: Estimate average annual growth rate of total imports,
   1992-1995 (percent)
H: Estimate imports from U.S., 1992 (in million of U.S. dollars)
I: Estimate annual growth rate of imports from the U.S.,
   1992-1995 (percent)
J-1: Country's receptivity to U.S. products and services;
     on a scale of 1 (lowest) to 5 (highest)
J-2: Competition for U.S. exporters from domestic and third
     country suppliers; on a scale of 1 (very heavy)
     to 5 (very little)
J-3: Trade barries on U.S. exports of these products and
     services; on a scale of 1 (very severe) to 5 (very few)
K:   Comments.
L:   List of most promising sub-sectors within the sector, along
     with the 1992 total market size, in millions, of each
     sub-sector.


-     (A): #1
-     (B): INDUSTRIAL CHEMICALS
-     (C): ICH
-     (D): USD 2,000
-     (E): 15 percent
-     (F): USD 1,400
-     (G): 10 percent
-     (H): USD 200
-     (I): 10 percent
-     (J-1): 5
-     (J-2): 3
-     (J-3): 4
-     (K):

Indonesian government agencies and the private sector are continuing to
develop industrial plants that will be using industrial organic and
inorganic chemicals as basic feedstocks.  Indonesia's manufacturing industry
has been rapidly expanding during the last five years, especially with the
deregulation and privatization measures taken since the mid-1980's.
Development in manufacturing industries which use industrial chemicals as
basic feedstocks is expected to accelerate during the next five years.  The
Government has determined that it is necessary to establish a wide range of
industrial chemical plants in Indonesia.  Special mention can be made of the
establishment of petrochemical plants such as olefins and aromatics plants
to take advantage of abundant raw materials sourced from domestic oil
resources.  However, while waiting for these production petrochemical plants
to come on stream, imports for many kinds of industrial chemical materials
will continue and even experience substantial increases.  U.S. exports of
industrial chemicals to Indonesia have grown by at least six percent
annually during the past three years and should continue to grow by similar
amounts through 1995.

-     (L):

-     Unsaturated ethylene--USD 65
-     Benzene and Tolulene--USD 37.5
-     P-xylene--USD 5
-     Styrene--USD 20
-     Vinyl chloride (chloroethylene)--USD 10
-     Ethylene glycol (ehtanediol)--USD 65
-     Phenol (hydroxybenzene) and its salts--USD 17.5
-     Vinyl acetate--USD 15
-     Terephthalic acid (PTA)--USD 110
-     Cyclanic, cyclenic or cycloterpenic mono or polyamines,
      and their derivatives-- USD 12.5
-     Isocyanates--USD 20
-     Other organo sulphur compound--USD 15
-     Tetraethyl-lead--USD 15
-     Melamine--USD 25 million
-     Methyloxirane (propylene oxide)--USD 20
-     Carbon black--USD 35
-     Sulphur, sublimed or precipitated; colloidal
      sulphur--USD 35
-     Diphosphorus pentaoxide--USD 20
-     Meta, ortho and pyro phosphoric acids--USD 125
-     Mangenese dioxide--USD 17.5
-     Titanium oxides--USD 10
-     Sodium hydroxide solid--USD 20
-     Sodium hydroxide in aqueous solution-- USD 10
-     Aluminum hydroxide--USD 20
-     Sodium triphosphate (sodium tripoly phosphate)-- USD 20
-     Methanol--USD 35
-     Ethyl hexanol--USD 20

-   (A): #2
-   (B): IRON AND STEEL
-   (C): IRN
-   (D): USD 1,900
-   (E): 15 percent
-   (F): USD 1,550
-   (G): 15 percent
-   (H): USD 100
-   (I): 15 percent
-   (J-1): 4
-   (J-2): 2
-   (J-3): 3
-   (K):

Along with the rapid growth of Indonesia's economy during the last half of
the 1980's, demand for iron and steel products has continuously increased.
The general construction industry is consuming large quantities of these
products.  Special mention should also be made of bridge construction, high
rise buildings, manufacturing plants and industrial complexes, shipbuilding,
automotive plants, pipe and tube manufacturing plants, oil and gas
exploration and recovery, manufacture of tools and equipment and many other
sectors that use iron and steel as base materials.  The 1991/1992 List of
Project Proposal of the National Development Planning Agency (BAPPENAS)
contained a project called "Bridge Material Supply for Bridge Replacement
Programme."  This project covers the procurement of 20,000 meters of
permanent bridge superstructure materials which consist of steel trusses and
girders.  Total cost of this project was USD 107.9 million, all in the form
of "foreign exchange cost", some of which are expected to be financed by the
World Bank and Asian Development Bank, while the rest are expected to be
financed by donor contries.

Indonesia already posesses a large integrated steel complex, PT. Krakatau
Steel, but its total production is not yet enough to meet the needs of all
domestic end users.  Indonesian imports in this product category are mainly
sourced from Japan.

- (L):

-   Ferrous products obtained by direct reduction of
    iron ore--USD 27.5
-   Ferro mangenese alloys--USD 12.5
-   Ferro silico-mangenese--USD 17.5
-   Slabs of rectangular iron of non-alloy steel carbon
    smaller than 0.25 percent--USD 70
-   Rectangular blooms, carbon smaller than 0.25
    percent--USD 17.5
-   Slabs, carbon, greater than 0.25 percent--USD 25
-   Flat-rolled products not in coils; a thickness of
    less than 3 mm. of iron and steel--USD 25
-   Other coils; thickness less than 3 mm. other than
    hot-rolled--USD 92.5
-   Other flat-rolled products, in coil thickness of
    less than 0.5 mm.--USD 60
-   Other flat-rolled products, in thickness between
    0.5 mm. and 1 mm.--USD 95
-   Flat-rolled products, plated/coated with tin in
    thickness less than 0.5 mm.--USD 45
-   Miscellaneous tubes--USD 450

-   (A): #3
-   (B): OIL AND GAS FIELD MACHINERY AND SERVICES
-   (C): OGM
-   (D): USD 1,500
-   (E): 15 percent
-   (F): USD 950
-   (G): 15 percent
-   (H): USD 600
-   (I): 17.5 percent
-   (J-1): 5
-   (J-2): 3
-   (J-3): 4

-   (K):

Market activity in the supply of oil and gas field machinery and services
has grown continuously during the last few years in Indonesia.  Exploration
and production of crude oil and natural gas has steadily improved since the
great decline during the 1984-1986 world oil price decline.  Indonesia
produces about 1.3 million barrels of crude oil per day which is its OPEC
(Organization of Petroleum Exporting Countries) quota level.  In addition to
meeting local consumption demands, Indonesia exports a large amount of crude
oil.  In 1991, Indonesia's exports for crude oil were valued at USD 5.7
billion.  Besides producing crude oil, Indonesia also produces natural gas,
which is not regulated by OPEC production quota.  Recent production volume
of natural gas has been 2.1 trillion cubic feet annually.

Machinery, other equipment and services are also needed for oil refining and
the processing of natural gas.  Aside from refining and processing oil and
gas for local consumption, in 1991, Indonesia was able to export a total
value of USD 1 billion worth of refined oil and USD 3.8 billion worth of
natural gas.

Presently, there are about 40 U.S. oil companies operating in Indonesia
under production sharing contracts with P.N. PERTAMINA, the state-owned oil
company.  There are a number of other U.S. companies operating in Indonesia
which specialize in providing services to oil producing companies, ranging
from geological and exploration surveys to provision of supplies and
assistance in oil drilling and the like.

PERTAMINA, which is the organization responsible for all petroleum
activities in Indonesia, must approve all purchases of machinery and
equipment by foreign oil companies.  Funds for the procurement of all
equipment are included in the total cost of production and are consolidated
with the production sharing costs.  Therefore, technically, PERTAMINA holds
the ownership of all machinery and equipment used by foreign oil companies
in Indonesia.  Consequently, procurement budgets for equipment of any oil
producing company in Indonesia must be first reviewed and approved by
PERTAMINA.

American suppliers play a dominant role in the exploration and production of
oil and gas in Indonesia but they face growing competition.

-   (L):

-   Seismic activities equipment--USD 10
-   Other geophysical and geological instruments--USD 7.5
-   Rotary drilling surface equipment--USD 200
-   Rotary drilling sub-surface equipment--USD 250
-   Well completion and production equipment--USD 80
-   Pipeline equipment USD 250
-   Workover rigs and related equipment USD 90

-   (A): #4
-   (B): TEXTILE MACHINERY AND EQUIPMENT
-   (C): TXM
-   (D): USD 1,350
-   (E): 10 percent
-   (F): USD 1,200
-   (G): 10 percent
-   (H): USD 80
-   (I): 10 percent
-   (J-1): 1
-   (J-2): 1
-   (J-3): 3
-   (K):

The largest category of non-oil and gas exports is textiles and garments,
followed by plywood and other wood products.  In 1991, the total exports of
textile products was valued at USD 1,538 million, while garment and apparel
products were valued at USD 2,260 million.  Total proceeds of these two
items constituted 13 percent of total exports of Indonesia for the year.
The textile and garment industries have rapidly developed in parallel with
the overall development of the national economy during the last two
decades.  Aside from export purposes, domestic textile and garment
manufacturers are also capable of supplying the increasing demands of about
183 million Indonesians.

Despite the huge total of textile and garment products, Indonesia does not
yet produce textile and garment machines in significant amounts.  Total
imports for these machines has increased every year for the past decade.
American companies sold a significant quantity of textile machinery in 1991,
valued at USD 84.6 million, but this was only 4.7 percent of total such
imports.  The primary sources were Japan, Taiwan, Germany and South Korea.

-   (L):

-   Machinery for extruding, drawing on cutting man-made
    textile materials--USD 220
-   Textile spinning machines--USD185
-   Machines for weaving fabrics of a width of
    30 cm., shuttle less type--USD 220
-   Carding machines--USD 52.5
-   Combing machines--USD 25
-   Textile doubling/twisting machines--USD 65
-   Textile winding (including weft-winding) or reeling
    machines--USD 90
-   Parts and accessories of textile machinery--USD 80
-   Other parts and accessories of machines for
    extruding, drawing on cutting man-made textile
    materials--USD 40
-   Bleaching or dyeing machines--USD 55
-   Other machines for washing and drying--USD 70
-   Other machines for preparing textile fibers--USD 65

-   (A): #5
-   (B): PLASTIC MATERIALS AND RESINS
-   (C): PMR
-   (D): USD 1,200
-   (E): 12.5 percent
-   (F): USD USD 875
-   (G): 12.5 percent
-   (H): USD 145
-   (I): 10 percent
-   (J-1): 5
-   (J-2): 4
-   (J-3): 5
-   (K):

Government organizations and private sector businessmen are continuing to
develop industrial plants that will rely on plastic materials as basic
feedstocks.  Demand for consumer goods and equipment made of plastic
materials is increasing fast, including PVC pipes, wrapping and packing
materials, radio, television and PC computer casings and boxes, household
supplies, and many other basic plastic goods.  The government has expressed
a strong determination to reach self-sufficiency in the supply of plastic
materials.  However, it seems unlikely to be able to do so during the next
five years, even after several major petrochemical projects, including
olefin and aromatic plants, come on stream.  Therefore, Indonesia will still
rely heavily on the import of raw materials for the manufacture of plastics
such as H.D. PVC pellets, polystyrene, polypropylene and other items as in
past years.

-   (L):

-   Polyethylene with a specific gravity of less than
    0.94; granules--USD 100
-   Polyethylene with a specific gravity of less than
    0.94; other forms--USD 37
-   Polyethylene with a specific gravity larger or equal
    to 0.94; granules--USD 75
-   Polyethylene with a specific gravity larger or equal
    to 0.94; other forms--USD 25
-   Polyethers, in granule and chips--USD 30
-   Ethylene-vinyl acetate copolymer--USD 35
-   Phenolic resins in dispersion or solution--USD 20
-   Polypropylene in granules--USD 185
-   Polypropylene in other forms--USD 75
-   Polyamides in primary form of chips--USD 30
-   Polyvinyl alcohols in other forms--USD 30

-   (A):#6
-   (B): PAPER AND PAPERBOARD
-   (C): PAP
-   (D): USD 1,000
-   (E): 10 percent
-   (F): USD 320
-   (G): 7.5 percent
-   (H): USD 75
-   (I): 10 percent
-   (J-1): 2
-   (J-2): 3
-   (J-3): 3
-   (K):

Ten years of economic growth have also seen an increase in demand for paper
supplies.  Presently, the total population of Indonesia is estimated at
about 183 million with a 1.8 percent annual growth rate.  Within the last
decade many local and foreign investors established pulp and paper plants in
Indonesia.  The industry is rapidly expanding in order to take advantage of
vast forest resources that are available.  Indonesia would like to be the
largest pulp and paper products producer in Asia before the end of the
century.  In 1991, Indonesia's exports of paper and paper board products
totaled USD 210 million.  However, some products like those listed below are
still expected to be imported during the next two to three years.

-   (L):

-   Bank note paper--USD 47.5
-   Newsprint in rolls or sheets, white--USD 12.5
-   Pattern paper for formica industry--USD 15
-   Folding cartons, boxes and cases of non-corrugated
    paper--USD 8
-   Waste paper/paperboard of unbleached kraft paper
    for paper making purposes--USD 45
-   Other waste paper--USD 60
-   Paper for cement and fertilizer sacks,
    unbleached--USD 7.5
-   Cigarette paper--USD 7.5
-   Other bleached paper or paperboard coated with
    plastics--USD 17.5
-   Other paper (cellulose wadding, webs of cellulose
    fiber)--USD 12.5
-   Fine writing paper--USD 10

-   (A): #7
-   (B): YARN
-   (C): YAR
-   (D): USD 1,000
-   (E): 10 percent
-   (F): USD 270
-   (G): 5 percent
-   (H): USD 67.5
-   (I): 10 percent
-   (J-1): 5
-   (J-2): 2
-   (J-3): 3
-   (K):

Presently, the second largest export product category, after oil and gas, is
textiles and garment products.  In 1991, total exports of textile products
were USD 1,538 million, and garment & apparel products totaled USD 2,260
million.  Total exports of these two product categories contributed 13
percent to the country's total exports during the year.  Also, the total
domestic demand for textile products continues to expand.

In order to fulfill the huge demand for textile yarns by local textile
manufacturers, many spinning plants for producing cotton and polyester,
nylon and other artificial fibres have been established during the past 15
years.  As an agricultural country, Indonesia is very anxious to produce
cotton for self-support purposes.  However, this ambition seems
unachievable.  Indonesia will still import cotton and cotton yarns in large
amounts during the next three to five years.  1992 U.S. exports are
estimated at over USD 70 million.  Meanwhile, although many polyester and
nylon yarn plants have been established, a significant amount of polyester
and other artificial yarns will still be imported during the next three to
five years.

-   (L):

-   Miscellaneous cotton yarns--USD 30
-   High tenacity yarn of nylon for tire cord
    manufacturing purpose--USD 70
-   Other yarn of other polyesters for other
    uses--USD 37.5
-   Cellulose acetate yarn-- USD 15
-   Multiple yarn less than 67 decitex of cellulose
    acetate--USD 52.5
-   Other yarns of polyesters for other uses--USD 10

-   (A): # 8
-   (B): CONSUMER ELECTRONICS
-   (C): CEL
-   (D): USD 950
-   (E): 10
-   (F): USD 170
-   (G): 12.5
-   (H): USD 6
-   (I): 10
-   (J-1): 3
-   (J-2): 1
-   (J-3): 2
-   (K):

Demand for consumer electronics in Indonesia has increased tremendously
during the past two decades to meet the growing domestic demand.  The
significant growth in per capita income, from USD 100 at the beginning of
the 1970's to USD 638 in 1991, was a contributing factor to the growth in
consumption of consumer electronics.  The wider availability of electricity
during the past two decades has also contributed to this trend.  The
Government has made a concerted effort to supply electricity to all rural
areas.  Realization of this government determination has provided the rural
people not only the use of electricity for lights, but also the use of more
and more consumer electronics.  They range from radio and television sets,
video and music recorders and amplifiers, to electric home appliances such
as washing machines, fans and some air conditioners.

Figures provided in parts (D) and (F) above are based on estimates of total
local production minus total exports plus total imports that are officially
listed in the export and import statistics by the Government of Indonesia.
It is often reported in the local mass media that huge amounts of consumer
electronics are smuggled in to Indonesia every year.  There is strong
evidence of a market greater than reported by the statistics.

-   (L):

-   Television sets, color and black and white--USD 10
    Sound recorders--USD 12.5
-   Radio sets--USD 8
-   Loud speaker and amplifiers--USD 10
-   Washing machines and dryers (household)--USD 20
-   Other home electric appliances--USD 30
-   Miscellaneous components and parts--USD 85

-   (A): #9
-   (B): ELECTRIC POWER SYSTEMS
-   (C): ELP
-   (D): USD 750
-   (E): 20 percent
-   (F): USD 650
-   (G): 15 percent
-   (H): USD 200
-   (I): 15 percent
-   (J-1): 4
-   (J-2): 2
-   (J-3): 3
-   (K):

Electric power is produced and distributed by the state monopoly power
company, Perusahaan Listrik Negara (PLN).  As the national economy became
revitalized beginning in 1987, total demand for and imports of power
generating and distributing equipment began growing rapidly.

Peak electric power demand on the island of Java alone is expected to reach
21,000 Megawatt Hours (MWH) by the year 2000.  Total Indonesian capacity in
1991 was only slightly over 12,000 MWH.  Among the power generating plants
planned for the near future are coal-fired and gas-fired power plants,
diesel power plants and geothermal power plants.  Plans for establishing
nuclear power plants are also seriously under consideration by the
Indonesian Government, and may become reality before the end of the century.

The Government has been looking at ways to allow a role for the private
sector in commercial power generation and supply.  The Embassy report on
major Indonesian projects lists 75 electric power projects for 1991 to the
end of the century with total costs of about USD 10 billion.  Most of these
power projects are expected to be financed by international lending
institutions such as the World Bank and Asian Development Bank and donor
countries.  The rest will be financed by PLN through its self generated
funds.  Based on this plan, a large amount of electric power-generating and
distribution equipment is expected to be imported during the next three to
five years.

-   (L):

-   Water tube boilers--USD 27.5
-   Vapor generating boilers--USD 35
-   Super heated water boilers--USD 12.5
-   Parts of steam boilers--USD 10
-   Turbine for marine propulsion--USD 70
-   Parts of turbines--USD 15
-   Generating sets with compression ignition--USD 180
-   Gas turbines--USD 10
-   Liquid dielectric transformer--USD 30
-   Static converters--USD 10
-   Other generating sets--USD 40
-   Other transformers--USD 55
-   Printed circuits--USD 20
-   Switches apparatus--USD 25
-   Board panels--USD 80
-   Electric conductors--USD 25
-   Electric insulators--USD 15

-   (A): #10
-   (B): TELECOMMUNICATIONS EQUIPMENT
-   (C): TEL
-   (D): USD 750
-   (E): 15 percent
-   (F): USD 625
-   (G): 12.5 percent
-   (H): USD 80
-   (I): 12.5 percent
-   (J-1): 5
-   (J-2): 3
-   (J-3): 4
-   (K):

Indonesia is attempting to transform its telecommunications infrastructure
into a completely digital system by the year 2004.  Starting in 1982, the
government telecommunications body, PT TELKOM (formerly PERUMTEL) instituted
a policy that there was to be no more development of analog
telecommunications systems, and that only digital technology should be used
for all new telecommunications expansion projects.

The telephone network in Indonesia consists of approximately 1.6 million
lines, but has been growing at a rate of almost 30% per annum.  Indonesia
still ranks among the lowest group of countries in term of telephone
density, at 0.77 telephone lines per 100 population.  The successful call
ratio is also low, with official figures showing that there are only 30
successful calls out of every 100 attempted by subscribers.

The past performance in telephone development in Indonesia has also been
very slow.  The average number of lines installed per year was 45,000 lines
in PELITA I (1969 - 1974), 65,000 lines in PELITA II (1974 - 1979), 24,000
lines in PELITA III (1979 - 1984) and 67,000 lines in PELITA IV (1984 -
1989).  (Note: PELITA is the name applied to the Indonesian government's
five-year development plans, which cover almost all infrastructure projects
under government control).  By the end of 1991, total number installed was
1.6 million.  PT. TELKOM intends to increase the installed base by an
average of 400,000 lines per year through the end of PELITA V (1994), and by
800,000 - 1,000,000 lines per year during PELITA VI (1994 - 1999).

The Indonesian Government has established an ambitious plan to improve the
nation's telephone density from 0.77 per 100 population in 1991 to 1.6 per
100 population by the end of PELITA V (1994), and further to 3.7 per 100
population by the end of PELITA VI (1999).  To achieve this objective, the
Government has introduced some initial forms of deregulation which are
intended to enhance the opportunities for private participation (by both
local and foreign firms) in telecommunication development in Indonesia.

This plan of liberalization, deregulation and privatization of some of
telecommunication facilities has been implemented, especially in areas of
value added services, cellular telephone operations, radio trunking systems
and paging systems.  They also allow parts of new telephone system to be
constructed by the private sector, often as equity participants in revenue
sharing investment schemes.  This should boost the pace of development.

The World Bank has approved loans amounting USD 350 million for major
telecommunications projects throughout Indonesia to be implemented in PELITA
V, which is called Telekom IV projects.  In addition, the ADB has also
agreed to finance telecommunications projects in Sumatera and East Java,
valued at USD 185 million.  Tenders for the mega projects were open for both
domestic and foreign participation.

Indonesia will import significant telecommunications equipment during the
next five to 10 years.  These include entire cellular phone systems, major
central digital switch manufacturing and assembly systems, satellite weather
and rainfall monitoring systems, and many other telecommunications products.

-   (L):

-   Telephonic switching apparatus--USD 125
-   Transmission apparatus/incorporating reception
    apparatus--USD 45
-   Radar apparatus--USD 25
-   Parts of telephonic switchboards and
    exchanges--USD 175
-   Transmission apparatus--USD 47.5
-   Radio navigational aid apparatus--USD 32.5
-   Parts of electric apparatus for line
    telephony--USD 75
-   Other parts--USD 120

-   (A): #11
-   (B): PULP AND PAPER MACHINERY
-   (C): PUL
-   (D): USD 750
-   (E): 10.0 percent
-   (F): USD 570
-   (G): 10 percent
-   (H): USD 12.5
-   (I): 5 percent
-   (J-1): 1
-   (J-2): 1
-   (J-3): 3
-   (K):

In addition to the many small and medium sized paper plants that have been
put into operation in Indonesia during the past 15 years, several large
scale paper pulp plants have been established.  These efforts were made in
order to fulfill the domestic need for paper products.  Aside from an
ambitious plan to develop self-sufficiency in the supply of paper, Indonesia
is also very eager to export paper pulp and paper products in the future,
and to become the largest pulp and paper products producer in Asia before
the end of the century.  The Government is very eager to exploit Indonesia's
abundant forest resources to produce these products.

It has been estimated that about USD 8 billion will be spent expanding pulp
and paper plants in Indonesia up to the end of the century.  In light of
this, a significant amount of pulp and paper machinery will need to be
imported.  It must be noted, however, that imports from the U.S. in this
product category are very small at present.  U.S. manufacturers or exporters
of pulp and paper machinery should renew their efforts to promote their
products in Indonesia.

-   (L):

-   Machinery for making paper and paperboard--USD 125
-   Machinery for finishing paper or paperboard--USD 80
-   Machinery for making pulp of fibrous
    cellulose--USD 20
-   Paper cutting machines--USD 25
-   Other parts of machinery for making pulp of
    fibrous cellulosic material--USD 100
-   Machine for making cartons, boxes, etc.--USD 20
-   Offset printing machines--USD 60

-   (A): # 12
-   (B): BUILDING PRODUCTS
-   (C): BLD
-   (D): USD 750
-   (E): 20 percent
-   (F): 150
-   (G): 15 percent
-   (H): USD 6
-   (I): 10 percent
-   (J-1): 3
-   (J-2): 1
-   (J-3): 3
-   (K):

Indonesia, the world's fourth most populous country, requires an enormous
number of houses and buildings to satisfy demand.  With a 1.8 percent
population growth rate, the country's population will increase by 3.6
million each year.  The need to construct houses and public buildings such
as schools, hospitals, hotels, office buildings, shopping and other
commercial centers, recreational complexes, manufacturing plants and
warehouses will grow accordingly.

In line with overall economic development since the 1970's, the general
construction business has been one of the economy's most important
industrial sectors.  The significant growth in per capita income, from USD
100 in 1970 to USD 638 in 1991, is another contributing factor to the growth
in the building construction sector and evidence of the overall increase in
economic activity.  About 650,000 square meters of hotels, offices,
factories, schools, hospitals, shopping centers, and other commercial
building properties were constructed and renovated annually during the last
five years.  It is estimated that an average of 800,000 square meters will
be constructed each year up to the year 2000, with a growth rate of 20
percent.  It is also estimated about 2,500,000 square meters of residential
houses of various sizes and quality will be built every year during the
period.

Over the last 15 years, many building materials have been imported, such as
paint and varnishes, roof tiles, ceiling materials, floor tiles, floor and
wall covers, refractory bricks, sanitary ware, door locks and many other
building accessories.  Listed in part (L) below are building materials that
show potential for export to Indonesia during FY 1993 through 1995.
Supplies for this product category from the U.S. were only about five
percent in 1991.  Imports come mainly from Japan, Taiwan, Australia and
Europe.

-   (L):

-   Paints and varnishes--USD 10
-   Bricks, blocks, tiles and others of
    ceramics-- USD 7.5
-   Prefabricated buildings--USD 15
-   Refractory bricks, blocks and tiles--USD 25
-   Other refractory bricks, blocks and tiles--USD 25
-   Miscellaneous floor tiles--USD 15
-   Miscellaneous door locks, etc.--USD 10
-   Miscellaneous building accessories--USD 30

-   (A): #13
-   (B): COMMERCIAL VESSEL EQUIPMENT
-   (C): CVR
-   (D): USD 700
-   (E): 10 percent
-   (F): USD 550
-   (G): 5 percent
-   (H): USD 210
-   (I): 7.5 percent
-   (J-1): 5
-   (J-2): 2
-   (J-3): 3
-   (K):

As the world's largest archipelago, Indonesia is an important maritime
country.  Its territory extends over 3,300 miles from east to west, and
1,300 miles from north to south.  It has 13,667 islands with a land area of
only about 27 percent of the claimed national territory, excluding the 200
mile exclusive economic zone (EEZ).  This means that commercial maritime is
very important to the country's transportation needs.

Dredging vessels are very important in order to improve the quality of sea
ports and river transport.  Fishing vessels are also needed in large
amounts, in order to exploit the abundant deep sea resources of the
country.  There has been a steady increase of demand for imports of
commercial vessels and equipment during the last four years.  Local
shipyards produce smaller-size vessels (up to 3,000 DWT), but many imports
will still have to be made during the next three to five years, in order to
respond to the steady economic growth of the country.  Ferry boats are in
great demand as well as cargo ships and mixed use vessels.  Cruise ships are
also a good commercial opportunity.

Most of dredging vessels owned and operated by the Government (Directorate
General for Sea Communications) are procured with assistance from
international lending institution such as the World Bank and Asian
Development Bank, as well as from donor countries.  Also, many cruise ships
operated by Perusahaan Pelayaran Nasional (PELNI), a state-owned sea
transportation company, are purchased through suppliers' credits from
Germany.  German suppliers are generally receive official government
assistance in financing these sales.


-   (L):

-   Floating or submersible drilling or production of
    platform--USD 200
-   Vessels for the transport of goods--USD 45
-   Dredgers--USD 35
-   Ferry boats--USD 30
-   Barges and the like--USD 37.5
-   Tankers--USD 20
-   Cruise ships--USD 60
-   Other light vessels, fire float, etc.--USD 50

-   (A): # 14
-   (B): CONSTRUCTION EQUIPMENT
-   (C): CON
-   (D): USD 700
-   (E): 15.0 percent
-   (F): USD 600
-   (G): 12.5 percent
-   (H): USD 240
-   (I): 10 percent
-   (J-1): 4
-   (J-2): 2
-   (J-3): 3
-   (K):

Since 1987, the construction industry has been booming.  Many multi-story
buildings, manufacturing plants, industrial complexes and residential houses
are being built.  Other construction activities are: construction of dams,
hydropower and coal-fired power plants, roads and bridges, irrigation, and
many other civil construction sectors.  Special mention can be made of
construction plans for pulp and paper mill plants which are estimated be
worth as much as USD 8 billion by the end of the century.  Similar
development plans are also underway in various other sectors, for example,
plans call for chemical and petrochemical plants estimated to be worth up to
USD 10 billion.  In the same period plans for expansion of power generating
plants are valued at USD 10 billion.

These construction activities will result in increases in total market
demand and total imports for general construction equipment and machinery.
Presently, one indication of the level of increased activities in the
construction sector is that while Indonesia exported about 1.5 million
metric tons of portland cement annually up to last year, now Indonesia is
planning to import about 2 million metric tons a year up to 1993, in order
to cope with spiraling cement prices and increased demand in the
construction sector today.

-   (L):

-   Boring & sinking machinery, self propelled--USD 35
-   Parts of boring and sinking machinery--USD 100
-   Buckets, shovels, grabs and grips--USD 100
-   Bulldozer in CKD--USD 40
-   Bulldozer, other than in CKD--USD 45
-   Hydraulic excavator in CKD--USD 20
-   Hydraulic excavator other than in CKD--USD 50
-   Off-road construction trucks--USD 25

-   (A): # 15
-   (B): AIRCRAFT AND PARTS
-   (C): AIR
-   (D): USD 600
-   (E): 10 percent
-   (F): 500
-   (G): 6 percent
-   (H): 200
-   (I): 15 percent
-   (J-1): 5
-   (J-2): 3
-   (J-3): 4
-   (K):

Along with the vital role played by sea transportation in national economic
development, civil aviation is also critical to linking the country's widely
separated islands.  In recent years, the government has been very active in
the modernization of older airports and in building new ones throughout the
country.  PT. Garuda, a state-owned company and the national flag carrier,
operates about 80 jet-aircraft in its fleet.  Aside from its domestic
operations, largely flown by subsidiary Merpati Nusantara, Garuda also
operates international routes to Europe, the United States, Australia and
near Asian countries.  Starting several years ago, private domestic airlines
were allowed to operate jet aircraft for domestic operations.  Presently,
three domestic airlines already operate jet airplanes in their fleets.

Garuda is expected to replace many of its old jets during the next five
years, especially in order to realize the potential generated by the
Indonesian tourism promotion "Visit Indonesia Year 1991," and "Visit ASEAN
Countries Year 1992."  Despite Indonesia already being a producer of
assembled airplanes, the 35-passenger CN-235 and 20-passenger Casa-212, many
small airplanes of various sizes are still imported for training purposes or
other special operations, as long as they do not compete directly with the
local products.

-   (L):

-   Airplanes and other aircraft, of an unladen
    weight less than 15,000 kg.--USD 100
-   Airplanes and other aircraft of an unladen weight
    exceeding 15,000 kg.--USD 75
-   Propeller and rotor for helicopter--USD 4
-   Propeller and rotor for aircraft--USD 10
-   Under-carriage for aircraft--USD 10
-   Aircraft engines--USD 50
-   Other parts of airplanes and helicopters--USD 50

-   (A): #16
-   (B): PUMPS, VALVES AND COMPRESSORS
-   (C): PVC
-   (D): USD 550
-   (E): 5 percent
-   (F): USD 475
-   (G): 5 percent
-   (H): USD 175
-   (I): 7.5 percent
-   (J-1): 5
-   (J-2): 4
-   (J-3): 3
-   (K):

Growing industrialization and construction of many new manufacturing plants;
activities in oil and gas exploration and exploitation; projects for potable
water supplies; and the construction of dams and irrigation systems, along
with projects in many other sectors, are expected to contribute to a
significant increase in demand for pumps, valves and compressors.  After
having experienced the mid-1980's economic slump, these sectors have been
steadily improving.  Some pump, valve and compressor products are being
produced or assembled locally.  However, sophisticated products are still
expected to be imported, especially for oil exploration and production.
U.S. products are especially popular for meeting the needs of the oil
industry and manufacturing plants that require precision and sophisticated
measurements.

Many Government projects such as water supply, irrigation and oil and gas
exploitation, utilize financial assistance from international lending
institutions such as the World Bank and Asian Development Bank as well as
donor countries in procuring sophisticated pumps, valves and compressors.
The increasing trend of imports in this product category is expected to
continue in the next three to five years.

    (L):

-   Concrete pumps--USD 14
-   Centrifugal pumps--USD 60
-   Compressors for refrigerating equipment--USD 25
-   Parts of pumps--USD 72.5
-   Other pumps--USD 30
-   Parts of compressors--USD 30
-   Valves for gases--USD 35
-   Valves for water--USD 25
-   Other appliances used in pressure machinery--USD 75
-   Compressors for other pumps--USD 100

-   (A):#17
-   (B): ARCHITECTURAL/CONSTRUCTION/ENGINEERING SERVICES
-   (C): ACE
-   (D): USD 450
-   (E): 15 percent
-   (F): USD 175
-   (G): 12.5 percent
-   (H): USD 17
-   (I): 10 percent
-   (J-1): 4
-   (J-2): 1
-   (J-3): 3
-   (K):

In line with the rapid development of the country's economy during the last
decade, demand for architectural, construction and engineering services has
consistently grown from one year to the next.  The rise in construction of
multi-story buildings, manufacturing plants, highways, bridges, dams,
irrigation canals, electric power plants, and many other private and public
projects has brought with it the growing need for architectural,
construction and engineering services.

Foreign architectural, construction and construction supervision services
are primarily needed for projects that require sophisticated technology.
Many of these projects are joint ventures and projects financed by
multilateral lending institutions such as the World Bank and the Asian
Development Bank.  Projects financed by multilateral lending institutions
are generally let out for international tender.

During the 1980's, Indonesia received a significant amount of financial
assistance from the country members of the Inter-Governmental Group for
Indonesia (IGGI).   This group organizes the provision of soft loan funds
for development projects in Indonesia.  During the last few years, IGGI
commitments to assist Indonesia averaged USD 4 billion annually.  Hundreds
of development projects in Indonesia have been constructed with these
funds.  In most cases, foreign engineering and construction services have
been used for electric power plants, dam and irrigation projects,
waterworks, air ports and sea ports, highways and bridges, mining plants,
manufacturing plants and many other projects.

Despite the dissolution of IGGI in mid-1992, financial assistance will be
continued through a managing committee, the Coordinating Group for
Indonesia, or CGI, chaired by the World Bank.  The IGGI was dissolved
following a misunderstanding between the Indonesian and Dutch Governments.
Therefore, many future development projects will similarly require foreign
engineering and construction services.  U.S. architectural and consulting
engineering firms have operated in Indonesia during the last 20 years.  Most
of them operate in cooperation with local engineering firms to improve
connections with Government officials and private company representatives.
In fact, the Indonesian government encourages foreign engineering
consultants and construction contractors to establish some form of permanent
or temporary cooperation with local companies when working on Government
major projects in Indonesia.  Listed below are estimates of imports for
architectural, construction and engineering services in 1992.

-   (L):

-   Engineering studies for major projects--USD 22.5
-   Engineering designs for major projects--USD 32.5
-   Construction services for large buildings
    and other major projects--USD 75
-   Construction supervision for major projects--USD 45


-   (A): #18
-   (B): AIR CONDITIONING AND REFRIGERATION EQUIPMENT
-   (C): ACR
-   (D): USD 400
-   (E): 10 percent
-   (F): USD 375
-   (G): 10 percent
-   (H): USD 35
-   (I): 15 percent
-   (J-1): 4
-   (J-2): 4
-   (J-3): 3
-   (K):

Rapid development in the construction and manufacturing industries during
the last two decades in Indonesia has resulted in increasing demand for
heating and cooling equipment.  The manufacturing industry in particular has
enormous need for heating and ventilating equipment.  Meanwhile, as a
tropical country with a very hot, humid climate, the country is in great
need of cooling equipment.  Multi-story buildings and residential houses use
cooling equipment all year around.  With steady increases in electric power
generating capacity and a growing middle class, more and more residential
houses are being fitted with air conditioning equipment.  For hotels, office
buildings, other commercial complexes and the like, the use of air
conditioning machinery is a must.  The majority of heating and cooling
equipment used in Indonesia is imported, and with the growth in demand for
this type of equipment, their imports have steadily increased.  Demand for
this equipment is expected to grow by at least 10 to 12 percent a year
during the next five years, most of which will be sourced from imports.
Meanwhile, the growing food industry and agro-industry require significant
inputs of industrial refrigeration equipment and parts.

-   (L):

-   Refrigerating or freezing equipment--USD 30
-   Other refrigerators, freezers and other
    refrigerating or freezing equipment--USD 12
-   A.C. machines incorporating a refrigerating
    unit--USD 20
-   Other A.C. machines--USD 40
-   Other A.C. machines not incorporating a
    refrigerating unit--USD 30
-   Parts of air conditioning machines--USD 30
-   Heat exchange units--USD 25
-   Miscellaneous dryers--USD 70
-   Heating and cooling plant and machinery--USD 50

-   (A): #19
-   (B): MACHINE TOOLS AND METAL WORKING EQUIPMENT
-   (C): MTL
-   (D): USD 350
-   (E): 10 percent
-   (F): USD 325
-   (G): 10 percent
-   (H): USD 25
-   (I): 10 percent
-   (J-1): 2
-   (J-2): 2
-   (J-3): 3
-   (K):

Total imports in this product category dropped drastically during the
mid-1980's economic crisis caused by the decrease in oil and gas prices on
world markets.  However, as the national economy began recovering in 1987,
there have been huge increases in total imports to the present.  These
increases resulted from a serious effort by the Government and private
sectors to upgrade manufacturing plants and initiate new projects in order
to achieve rapid and continuous growth of the national economy.  Many
industrial plants need modern machine tools, high precision machines, and
the like.  Among the Government plants in need of this equipment are IPTN
(aircraft industry), PAL (shipyard building), and PINDAD (munitions
industry).

There are many private sector plants being developed and upgraded,
especially in the automotive industry and its upstream manufacturing
plants.  The Government is very anxious to achieve self-sufficiency in the
supply of parts and components for automotive assembly in Indonesia.
State-owned companies such as IPTN, PAL and PINDAD are generally using
international lending institutions or donor countries' loan assistance in
equipping their plants.  Provision of suppliers' credits by
manufacturers/suppliers in cooperation with their local exim banks is the
most common financing method used by these state-owned companies.  U.S.
supplies for this industry sector have been quite small, less than five
percent in 1989.  However, it is believed that efforts to gain a larger
market share in this industrial sector will be extremely fruitful.

-   (L):

-   Hot or combination and cold rolling
    mills--USD 40
-   Part of rolling mills--USD 27.5
-   Rolls for rolling machines--USD 12.5
-   Lathes, numerically controlled--USD 18
-   Drilling or boring machine in BU and CKD--USD 15
-   Other machine tools for working metal by
    forging--USD 20
-   Bending, folding/straightening machines--USD 17.5
-   Hydraulic presses for treating metal--USD 10
-   Knee-type milling machine--USD 12
-   Casting machines--USD 15

-   (A): # 20
-   (B): MATERIALS HANDLING MACHINERY
-   (C): MHM
-   (D): USD 350
-   (E): 5 percent
-   (F): USD 280
-   (G): 5 percent
-   (H): USD 40
-   (I): 7.5 percent
-   (J-1): 4
-   (J-2): 2
-   (J-3): 3
-   (K):

As the Indonesian economy has grown since the mid-1980's, various sectors
have witnessed significant development.  Many old and obsolete mining plants
were reactivated, and some major expansions were made.  Renovation and
construction of many seaports and airports have also been undertaken.  This
growth has resulted in increasing demand for materials handling and
mechanical equipment.  Many new established manufacturing plants require
equipment in this category.  Presently, most of these tools and equipment
are sourced from imports.  Considering the ongoing and potential development
in the mining and manufacturing sectors, as well as in the construction and
equipping of sea and air ports, an import growth of between five and 10
percent for this product category can be expected during the next three to
five years.

-   (L);

-   Forklift self-propelled trucks in CKD--USD 30
-   Pulley tackle and hoists for raising vehicles
    powered by electric motor--USD 10
-   Other materials handling vehicles--USD 12
-   Overhead travelling cranes on fixed
    support--USD 15
-   Other machinery, self-propelled--USD 9
-   Other cranes--USD 7.5
-   Other continuous-action elevator--USD 40
-   Lifts and skip hoists--USD 18
-   Mobile lifting frames on tires and straddle
    carries--USD 20
-   Parts of mechanical handling equipment--USD 20
-   Miscellaneous conveyor idlers--USD 22.5
-   Other machinery of lifting, handling and
    loading--USD 20

-   (A): # 21
-   (B): PROCESS CONTROL--INDUSTRIAL
-   (C): PCI
-   (D): USD 325
-   (E): 7.5 percent
-   (F): USD 315
-   (G): 8 percent
-   (H): USD 112.5
-   (I): 10 percent
-   (J-1): 5
-   (J-2): 3
-   (J-3): 5
-   (K):

In line with the growth of manufacturing, construction and natural resource
exploitation in Indonesia since 1987, demand for process control equipment
and scientific instruments has jumped.  There are several firms that
assemble PC's or micro-computers, all with plans to expand production
capability.  This progress should stimulate sales of electronic test
instruments.  The rapid development of the domestic telecommunications and
aircraft industries should also play a contributory role in increased sales
levels for analytical equipment.

The Indonesian Government is very anxious to develop the role of 10
so-called "strategic industries."  These are key industrial sectors
contributing to technological development and military-based industries such
as aircraft, ships and ammunition.  These plants, together with a number of
petroleum, petrochemical and many other private chemical industries will
also add impetus to sales of imported instrumentation, process control and
analytical instruments.

-   (L):

-   Instruments for surveying and parts--USD 55
-   Measuring and checking equipment--USD 30
-   Measuring flow or level of liquids--USD 10
-   Gas or smoke analysis apparatus--USD 10
-   Instruments/apparatus for demonstration--USD 22.5
-   Instrument and apparatus for checking voltage,
    current, resistance--USD 12.5
-   Automatic regulating and controlling
    instuments--USD 30

  (A): #22
  (B): ELECTRONIC COMPONENTS
  (C): ELC
  (D): USD 250
  (E): 5 percent
  (F): USD 200
  (G): 3 percent
  (H): USD 10
  (I): 3 percent
  (J-1): 4
  (J-2): 3
  (J-3): 3
  (K):

The electronics industry in Indonesia started with labor intensive
production aimed at the substitution of imported consumer goods, with a
restricted demand and a limited number of goods which were generally
classified as consumer electronics (electronic products for entertainment
and household appliances).  The major activity of this industry is still in
assembly, using the designs and components of overseas principals.

At present, imports are still needed to develop the electronic industry in
Indonesia.  More than 50 percent of the components for black & white TV
sets, color TV sets, radio receivers, air conditioners, refrigerators and
washing machines still depend on imports.

The value of imports of electronic components is still high although it is
showing a diminishing trend.  The decrease in the import value was partially
caused by the growing capability of the domestic electronic industry in
producing a variety of electronic products and components, which can also be
exported to principal countries.  In addition, the Government imposes high
import tariffs on the import of electronic products/components.

(L):

-   Color cathode - ray television picture
    tubes--USD 82.3
-   B/W monochrome cathode - ray TV picture
    tubes--USD 7.6
-   Diodes, other than photosensitive or light emitting
    diodes--USD 11.5
-   Transistors--USD 6
-   Semiconductor devices--USD 35
-   Integrated Circuits--USD 24

-   (A): #23
-   (B): COMPUTERS AND PERIPHERALS
-   (C): CPT
-   (D): USD 250
-   (E): 7.5 percent
-   (F): USD 175
-   (G): 10 percent
-   (H): USD 60
-   (I): 10 percent
-   (J-1): 4
-   (J-2): 2
-   (J-3): 4
-   (K):

As the national economy of Indonesia improved during the last four years,
increased market demand for computers and peripherals was a major factor.
Deregulation policy measures taken in many sectors of the national economy,
particularly financial liberalization steps, have resulted in the
establishment and growth of many enterprises.  Significant increases in the
total exports for non-oil and gas commodities have also generated massive
growth in economic activities.  As the overall national level of
technological expertise rises, the use of computers and peripherals will be
stimulated.  The rapid expansion of registered private business entities as
well as the constantly increasing number of Government offices is creating
continuous demand for computer and peripheral products.

Special mention can be made of small computers such as those manufactured by
IBM, Tandy, Apple, Prime and other U.S. manufacturers which continue to find
acceptance in the Indonesian market, and especially in small business
applications.  Firms in the banking and finance field, along with Government
agencies, are continuing to install dedicated computer systems.   Households
of middle level income groups and above are also very eager to acquire PC
computers.  Significant purchases in this product category can be expected
during the next three to five years.  Official import statistics prepared by
the Central Bureau of Statistics grossly understate the real size of the
Indonesian market for this product category.  Many parties believe that the
real figure is at least double the officially-reported total imports sold in
Indonesia every year.  Many are smuggled, under-invoiced or listed under the
category for other items which enjoy lower or duty free import status.

-   (L):

-   Main frame computer--USD 20
-   Digital processing units, whether or not presented
    with the rest of system--USD 10
-   Input or output units, whether or not presented with
    the rest of system--USD 25
-   Other peripheral units, including control and
    adapting units--USD 12.5
-   Other automatic data processing machines--USD 10
-   Parts and accessories of the machines of automatic
    data processing machines and units--USD 25
-   Personal and micro computers--USD 20
-   Other digital machines--USD 22.5
-   CPU for personal computers--USD 10
-   Magnetic tape drive and floppy disk drives--USD 6
-   Other digital processing units--USD 10

- (A): # 24
- (B): AGRICULTURAL CHEMICALS
- (C): AGC
- (D): USD 200
- (E): 3 percent
- (F): USD 178
- (G): 3 percent
- (H): USD 4
- (I): 3 percent
- (J-1): 4
- (J-2): 3
- (J-3): 3
- (K):

The agricultural sector, particularly food crops, remains among the highest
priorities in the development of the Indonesian economy.  Various efforts
have been made by the government to develop the sub-sector of food crops,
particularly rice, through programs of intensification and development of
new agricultural land.  The achieved self-sufficiency in rice has encouraged
Indonesia to keep up its efforts through the application of new technology.
Appropriate and wise utilization of fertilizer and pesticides has continued
to be promoted in order to avoid excessive use of materials that can prove
detrimental to the development of the agricultural sector in general and
food crops in particular.

Indonesia's crude fertilizer imports have been increasing in the past few
years with a total value of USD 79 million in 1990 and USD 112 million in
1991.  Meanwhile, imports of manufactured fertilizer decreased from USD 96
million in 1990 to USD 57 million in 1991.

Up to the present, not all of the country's demand for pesticides,
particularly the active materials, can be supplied by local production.
However, as the local industry becomes more developed, imports of pesticides
have gradually declined from USD 10 million in 1990 to USD 9 million in
1991.  In 1986 the government issued Presidential Instruction No. 3/1986,
restricting the use of 57 types of pesticides which proved unable to destroy
"wereng" (nilapawata lugen stal) that has lately become the main enemy of
rice crops.

(L):

-   Crude Fertilizer--USD 112
-   Manufactured Fertilizer--USD 57
-   Disinfectants, Insecticides, Fungicides, etc.--USD 9

- (A): #25
- (B): POLLUTION CONTROL EQUIPMENT
- (C): POL
- (D): USD 100
- (E): 15 percent
- (F): USD 90
- (G): 15 percent
- (H): USD 20
- (I): 15 percent
- (J-1): 5
- (J-2): 4
- (J-3): 4
- (K):

The most pressing environmental problem currently facing Indonesia is that
of water availability and quality.  Rapid population growth and urban
migration has placed severe strain upon water sources, while at the same
time, prolonged dumping of untreated municipal and industrial wastes into
estuaries has taken its toll on water quality.  On the island of Java, where
more than 60 percent of Indonesia's 183 million people live, over half of
the rivers are considered highly polluted.

The Indonesian Government's next priority, after water pollution control, is
improvement of public and private institutions, supporting environmental
impact assessments (EIA's).  EIA's are required for all new projects and for
those existing facilities which produce toxic or hazardous wastes.
Improvements to law enforcement and hazardous waste programs are next in
priority, with the remaining priorities for Indonesian environmental
officials (in order of importance) being air pollution control, reversal of
environmental degradation, sewage regulation and the environmental effects
of small-scale activities.

Some environment projects are planned or being implemented with assistance
from the World Bank, CIDA, JICA, UNDP, USAID, SWEDEN, GTZ, Australian
Government, Belgium Government, ADB, and Dutch Government, with financing in
the form of grants or loans.

A centralized authority coordinating environmental regulations (BAPEDAL) was
created in late 1990, pursuant to Presidential Decree No. 23/1990.  This
environmental protection agency will have central authority in Jakarta, but
actual monitoring and enforcement will be implemented at the provincial
level.

Recently, a center for toxic waste treatment was developed by Waste
Management International (WMI) with its local partner, PT. Bimantara Citra.
Early investment of this project is USD 100 million to USD 150 million, and
it will be implemented in 1993.  The center is expected to be operational in
1995.

(L):

-   Water pollution control equipment--USD 20
-   Air pollution control equipment--USD 15
-   Sludge management and solid waste control
    equipment--USD 10
-   Industrial waste control equipment--USD 10
-   Other Equipment--USD 30

III. COMMERCIAL ENVIRONMENT

Growth in the Indonesian economy in 1991 slowed somewhat from the rates of
over seven percent registered in 1989 and 1990.  Real gross domestic
product, fueled by strong consumer demand and a lively non-oil export
sector, increased 6.8 percent compared to 7.3 percent in 1990.  However, the
signs of overheating that were first evident in 1990 persisted into 1991.
Price levels, for example, remained high due to strong demand as well as the
effects of a prolonged drought on rice prices.  Excluding agriculture, the
economy grew at an 8.2 percent rate.  The consumer price index in 1991
remained at 9.5 percent, the same level registered in 1990.

In an effort to curb inflation, the Indonesian Government maintained the
tight money policy initiated in 1990, and the resulting brake on monetary
growth kept interest rates at high levels.  Key industries such as
construction and automobile manufacturing experienced lower growth as
consumers and businesses cut back on interest-sensitive purchases.  Sales of
passenger automobiles were down 19 percent from the previous year.
Investment outlays also appeared to slacken in the face of higher credit
costs.  Recognizing the economic costs of tight money, the Government in
early 1992 urged banks to reduce their interest rates, but with only partial
success.  The Government's goal is to hold inflation in 1992 to seven
percent.

Tight money also caused investment to contract.  While data are not
available on projects implemented, approvals of domestic investment
applications in 1992 fell to $41.1 billion, a 31 percent drop from 1990's
exceptionally high level of $59.9 billion.  Though less sensitive to high
domestic interest rates, foreign investors in 1991 submitted investment
applications for projects totalling $8.8 billion, or about the same volume
as in 1990.

The balance of payments situation in 1991 posed another major concern for
policymakers.  Exports, particularily of non-oil goods, showed good growth
in 1991, but strong demand for capital goods and raw materials pulled in a
large volume of imports that caused the traditional trade surplus to
shrink.  The smaller surplus on the trade account, coupled with higher
payments for Indonesia's external debt, caused the current account deficit
to swell to $4.5 billion, its highest level in a dacade.  At the same time,
increased offshore commercial borrowing by the private sector greatly
expanded the stock of outstanding external debt and led many to question
whether the country could service such debt in future years.  In addition to
taking a variety of fiscal and monetary measures, the Government responded
by establishing a cabinet-level debt management team that set guidelines on
foreign borrowing and began monitoring applications for offshore commercial
loans.

Prospects are good for correcting Indonesia's short term economic problems
in later years, for several reasons.  First, the Government has shown a
determination to continue its deregulation program, which should provide
incentives for sustained private sector investment and employment.  Second,
given continued strong growth in non-oil exports and resiliency in key
commodity prices, the current account deficit should gradually shrink.
Third and last, if the growth trend in exports can be sustained and
development assistance from the international donor community maintained at
current levels, within the medium-term Indonesia should be able to begin
amortizing its heavy external debt burden.

Faced with lower oil prices in the early 1980s and a need to create
employment for a workforce growing by more than two million annually, the
government in 1983 launched a program to give freer rein to the private
sector and reduce the economy's dependence on petroleum as a source of
earnings and tax revenues.  The program, known as "deregulation and
de-bureaucratization," began with a loosening of controls on the financial
sector.  Subsequent measures liberalized conditions for foreign investment,
reduced tariffs and import licensing restrictions, eased export
requirements, revitalized capital markets and the banking system, and
reformed the domestic shipping regime.  In June 1991 the government lowered
duties on over 500 categories of imports, including various iron and steel
products and certain classes of motor vehicles and parts.

In 1991, non-oil manufacturing was particularly robust, expanding at an 11.4
percent rate over 1990's relatively high level.  Growth in the non-oil
manufacturing sector was fueled by strong foreign demand for Indonesian
goods:  exports of non-oil manufactured products were up nearly 29 percent.

The oil and gas sector also recorded good results in 1991.  Exclusive of
refining, the petroleum industry's output was up 8.8 percent compared to 4.2
percent in 1990.  While crude prices were on average slightly lower than the
relatively high levels of 1990, output of crude and condensate was up 8.9
percent in volume.  In addition, expenditures by companies on exploration
and development were siginificantly higher.  Outlays on seismic work,
drilling and other development activities totalled $2.8 billion, up 49
percent over 1990 levels.

Indonesia's total trade increased over 1990 levels, with exports up 8.6
percent (non-oil exports, including agricultural products, rising 18
percent).  However, imports also grew by 18 percent, causing a shrinkage in
the merchandise surplus.  Trade with the United States has not continued to
grow as was originally expected, although the percentage change is not
substantial.  Some of the decline can be attributed to the 1991 Gulf War,
which seriously disrupted trade trends.  A significant amount of U.S.
exports to Indonesia go through the entrepot Singapore and are not reflected
in U.S. export figures to Indonesia.

Indonesia continues to make progress in several trade liberalization
programs, including non-tariff barriers, import monopolies and licensing
restrictions (and other market access issues), intellectual property rights,
export subsidy reductions, etc.  Divestiture requirements for foreign
investors have been extended and local ownership requirements have been
eased or reduced in many sectors.  These and many similar steps have
combined to create a climate for business which is more and more making
Indonesia an exciting market for trade and investment.  Much remains to be
done to bring Indonesian regulations into line with international standards
in certain sectors, including market access issues, capital requirements,
land ownership, labor and employment codes, distribution controls, taxes,
revenue collection practices, and licensing requirements.  Many of these
issues are being reviewed, and eased, as required.

(From the American Embassy-Jakarta Economic Trends Report on Indonesia: June
1992.)


IV. FINANCING ENVIRONMENT

The banking system has grown rapidly since the beginning of the financial
sector reform in 1983.  In 1991, however, the rate of expansion declined.
Total rupiah deposits held by banks were up 14 percent in 1991 compared to a
41 percent increase in 1990; foreign exchange deposits rose by 37 percent in
1991 versus 82 percent in 1990.  The money supply has continued to expand,
but also more slowly; currency in circulation plus demand, savings and time
deposits (M2) rose by 17 percent in 1991 compared to 44 percent in 1990.
The rate of credit expansion also declined, with outstanding commercial bank
credits up 16 percent in 1991 compared to 54 percent in 1990.

The government initiated tighter money policies in mid-1990 which led to a
substantial hike in deposit and lending interest rates.  In February 1991,
the Government promulgated new prudent banking regulations, including
requirements to meet Bank of International Settlements capital adequacy
standards by December 1993.  In November 1991, the government's foreign
commercial borrowing team announced ceilings in foreign commercial borrowing
by private and state-owned banks, and introduced reporting requirements for
private sector borrowing.  Bank Indonesia, the central bank, also sharply
reduced access to its swap facility to encourage long term capital inflows
and discourage short term foreign borrowing.

During the first half of 1992, the Government announced an easing of
monetary policy and urged banks to reduce interest rates.  Banks gradually
responded with reductions in deposit rates, but lending rates remained
high.  Tight (and expensive) credit is expected to prevail for the balance
of 1992.  Other banking developments in 1992 include the passage of a new
basic Banking Law which, inter alia, placed state-owned banks on the same
legal footing as private commercial banks, gave them the option of selling
shares on the local stock exchange, and permitted foreigners to purchase
shares in listed private and state-owned banks.  In addition, the government
has licensed several money brokers whose operations are expected to enhance
the efficient flow of funds.

The Indonesian stock market expanded rapidly after being deregulated in
1988.  In April 1992, a private company, PT. Bursa Efek Jakarta, took over
the running of the Jakarta stock exchange from the Capital Markets
Supervisory Agency, a wing of the Department of Finance, which became a
regulatory body.  By mid-1992, 144 companies were listed on the Jakarta
stock exchange, up from 24 four years earlier.  After peaking in mid-1990 at
over 600, the composite stock index plummeted below 230 by late 1991.  Since
then, it has recovered somewhat, breaking through the 300 level in early
June 1992.  The number of new listings has slowed, but there is a steady
trickle of new offers.

Reasons advanced for the 1991/1992 stock market slowdown include saturated
investor appetite, high interest rates on bank deposits, some uncertainty
about Indonesia's growth prospects, and some loss of confidence in the
exchange and the companies listed on it.  With the issuance of more
stringent listing and reporting requirements, increased transparency in
market operations, and lower deposit rates, the stock market appears set for
a sustained modest recovery.  Plans for the second half of 1992 include the
introduction of private mutual funds and the opening to foreigners of the
opportunity to purchase shares in listed bank stocks.


Import Payment Process

All forms of import and export financing are available in the Indonesian
market and are frequently utilized.  However, if any form other than a
letter of credit as payment procedure is required it must be agreed upon
between the exporter and importer.  Most imports are financed with letters
of credit.  Indonesian banks and their foreign branches and agencies can
arrange standby letters of credit.  These financial instruments are issued
by local banks and are guaranteed internationally.  They are used widely in
Indonesia, as they are abroad.


Foreign Exchange Limitations and Regulations

The Government of Indonesia imposes no foreign exchange restrictions.
Investors may freely transfer funds to or from abroad.  Repatriation of
profits, costs related to expatriate employment expenses, loan principal and
interest, royalties, technical fees, etc. and capital transfers are allowed
without any prior permission.  This long-standing open foreign exchange
policy is a cornerstone of the Indonesian economy and represents perhaps the
single most important element in providing the right environment for foreign
investment.


Payment Schedules and Deferred Payment Practices

There are no official requirements for deferred payments.  If an exporter
chooses to provide goods or services on a deferred payment basis as a
competitive tool, it is entirely between the buyer and seller to arrange
terms.


Countertrade Requirements

A countertrade requirement called "counterpurchase" does exist in
Indonesia.  When a government sponsored (financed) contract is concluded
with a foreign firm for construction and/or major project procurement, a
counterpurchase of similar value may be requested.  Counterpurchase activity
has totaled several billion dollars in the past few years but has been
carried out on a reduced scale more recently.  The Indonesian government
also has countertrade agreements with other Governments, including Iraq and
Iran for purchase of crude oil in exchange for a number of commodities and
manufactured products.


Banking System Correspondent Relationships with U.S. Banks

Banking in Indonesia is regulated by the Department of Finance and Bank
Indonesia.  There are ten foreign bank branches (four of them American)
operating in Indonesia, all established in the late 1960's.  The October
1988 banking deregulation package reopened the local banking market to
foreign participation, but under different circumstances.  Foreign banks may
now establish local joint venture banks with Indonesian partners.  Joint
ventures are required to make at least 50 percent of their loans to the
export sector.  Since 1989 a number of foreign banks have entered the
market, including several Japanese banks engaged in providing financing for
the many Japanese industrial and trading ventures active in Indonesia.


Local Financing Possibilities

Local financing possibilities do exist for joint venture firms but they must
conform to Indonesian Government regulations.  Financing for a joint venture
project (including the cost of imported equipment) generally comes from
abroad.  Rupiah loans from domestic banks for investment purposes are
forbidden.  Joint ventures may borrow locally for required working capital
if they are 51 percent or more Indonesian owned or 45 percent Indonesian
owned when 20 percent of company stock has been sold in the stock market.


Factors Relevant to the Commercial Financing Environment

The Government of Indonesia has implemented monetary policies which involve
the removal of interest rate and credit ceilings for state bank operations
and the introduction of new instruments of monetary control.  These changes
have been aimed at enhancing financial sector efficiency and developing
private sector capital markets.  In mid-1990 the Central Bank (Bank
Indonesia) began to tighten monetary policy in order to help curb
inflation.  As of mid-1992 the tight monetary policy continued to prevail
aimed at both inflation pressures and a widening current account deficit.
The Government has also asked private banks and businesses to restrain their
offshore borrowing after the rapid expansion of private sector foreign
liability.

The Indonesian Government is prohibited by law from financing budget
deficits domestically.  Assistance from donor countries and international
lending institutions adds significantly to Indonesia's development budget.
Foreign-funded government projects in Indonesia are required to be financed
under terms laid out by Presidential Decree Number 8 of 1984 (Inpres 8),
although excettions are permitted.  The Inpres 8 terms are 3.5% interest and
a 7 year grace period followed by an 18 year repayment period.

Indonesia also secures a substantial portion of their developmental funding
from the multi-lateral development banks, primarily the Asia Development
Bank (ADB) and the World Bank.  During 1992, over USD 4 billion was made
available from a variety of sources, allocated by the Intergovernmental
Group on Indonesia (IGGI), until early 1992 chaired by the Dutch
government.  That group was subsequently replaced by the Consultative Group
on Indonesia (CGI), chaired by the World Bank.  The CGI has designated USD
4.9 billion for use on developmental projects during 1993.

American firms can participate in projects funded by the ADB and the World
Bank, as well as through the EXIM Bank of the United States.  Information on
projects and procedures is available thorugh US and Foreign Commercial
Officers assigned to each bank.  Other forms of feasibility study and
project financing may be available through the Trade Development Program
(TDP) and the US Agency for International Development (USAID).  Investment
projects in Indonesia is eligible for Overseas Private Investment
Corporation (OPIC) loans and insurance.

Indonesia's external debt at the end of 1991 was approximately $77 billion,
consisting of about $48 billion in public sector medium- and long-term, and
$29 billion in private sector debt.  Medium- and long-term debt comprises
nearly all of the government's debt, much of it on consessionary terms from
multilateral development banks and bilateral donors.  The market increase in
external debt in 1991 was due principally to short term borrowing from
abroad by the private sector, stimulated by high domestic interest rates.
The Government has taken a variety of steps to strengthen monetary control,
some of which discourage offshore borrowing.  For example, the central bank
in 1991 reduced access to its swap facility, particularly for swaps of
short-term foreign exchange into domestic currency.

Despite the deterioration of the current account, the central bank's foreign
exchange reserves in 1991 climbed to reach nearly $10 billion by year end,
or about five months' worth of imports.  Interest earnings on the reserves
were a significant positive contribution to the current account.


V.  TRADE AND INVESTMENT ISSUES/BARRIERS

The Government of Indonesia has introduced sweeping reforms of the trade and
investment regimes in the past few years, most recently in July 1992.  The
motivations for the changes are twofold: to increase non-oil foreign
exchange earnings and to spur the growth necessary to create employment.
These motivations dictated a fundamental change in development philosophy
away from a largely self-financed import-substitution approach toward a
market-oriented approach premised on foreign and domestically financed
private sector investment and promotion of non-oil and gas exports.

Since the mid-1980's, the Government's reform measures cumulatively reduced
the overall level of tariff protection; encouraged production for export;
boosted incentives to increase the level of processing of natural resource
based exports, particularly in the forestry sector; reduced barriers to
investment; and streamlined investment application procedures.

Despite significant policy reforms, known locally as "deregulation and
debureaucratization", problems remain.  A residual focus on import
substitution through local manufacture is still noticeable.  Some essential
industrial product imports remain in the hands of state-owned companies or
approved monopoly importers.  Many strategic industry sectors have not been
greatly affected by deregulation and continue to enjoy protection.  However,
in many sectors the extent of protection is declining.  For example in June
1991, import licensing requirments for cold-rolled steel, tinplate and some
commercial vehicles were eliminated or eased.

Local content rules remain on the books.  Companies which produce for export
are exempt from many of the local sourcing requirements and can take
advantage of a duty drawback/exemption scheme for imported inputs of
eventual exports; producers for the domestic market remain constrained by
some tariff and non-tariff induced distortions.

Government procurement continues to give preference to locally produced
goods and services.  The price margin is 15 percent but it can go higher.
This policy has led some companies, particularly in the oil equipment
industry, to set up joint ventures in Indonesia.


A.  MAJOR TRADE BARRIERS

1.  Lack of Intellectual Property Protection

a.  Description:

1) Patents

Indonesia's first patent law, enacted on November 1, 1989, became effective
on August 1, 1991.  Some of the implementing regulations to the patent law
have been issued, and others will follow.  The implementing regulations
issued to date have improved some of the drawbacks in the patent law but
others remain.  For example, the patent law has a clause which permits
patented products or products produced by a patented process to be imported
by non-patent holders.  Implementing Regulation No. 34 of 1991 specifies
that this provision only applies to 50 specific products.  A problem that
will not be corrected in implementing regulations is the relatively short
term of protection, which is 14 years from filing plus a possible two year
extension.  Other drawbacks in the law are: importation is not generally
considered that the patent is being worked; the patent can be cancelled
after four years if not worked; and compulsory licensing provisions.

The Government of Indonesia has been accepting patent applications since
1953 so the backlog is enormous.  Provisional patent applications filed
since August 1981 will be eligible for patent protection if refiled.  The
large backlog of applications, combined with a small and inexperienced staff
of patent examiners, will likely result in slow implementation of the patent
law during the next few years.

2) Trademarks

Indonesia's 1987 trademark law was outdated and hampered the efforts of U.S.
and other foreign trademark owners to protect their marks in Indonesia.  A
new law was passed on 28 August 1992, which should rectify some of those
problems.  Under the previous law, the first registrant was entitled to a
trademark unless the registration was challenged within nine months.  While
there has been insufficient time to fully study the new law, it appears to
be based more on the first use, not first file, concept.

Since June 15, 1987, the Trademark Office had refused applications for any
trademarks considered well-known in Indonesia in the same class of goods and
filed by unauthorized applicants.  This was modified in May 1991 expanding
the definition of well-known marks to include those known in Indonesia and
abroad.  This was also not limited to the same class of goods.

The Government of Indonesia was aware of the deficiences in the law and
began drafting a new trademark law in 1991.  That law is now in place.
Additional study will be necessary to identify the other changes and their
effect on trademark protection for American marks in Indonesia, but progress
has been made, and a basis exists to bring trademark practice in Indonesia
more into line with international standards.

3) Copyrights

a. Description:

Amendments to Indonesia's copyright law in 1987 brought it largely into
conformity with international standards for copyright protection.  Its law
extends foreign works protection as long as Indonesia has a bilateral
copyright agreement with the country in question or Indonesia and the
country are members of the same international copyright convention.
Indonesia has not joined an international copyright convention but it did
enter into a bilateral copyright agreement with the United States effective
August 1, 1989.

Now that U.S. works are protected, enforcement is the key issue.  The
Indonesian Government has been particularly aggressive against sound
recording piracy and is also cracking down on book piracy.  Computer
software and videotape piracy remains rampant although the Government has
made a commitment to improve protection in these areas.

b.  Estimated impact:

The loss to U.S. copyright owners was estimated to be US$106 million in
1985.  The amount in 1991 is far greater, particularly considering the
mushrooming counterfeit videotape market and the losses from trademark
violations.  The Motion Picture Export Association of America estimates that
its member companies lose US$10-15 million annually from videotape piracy.
The lack of an Indonesian patent law has undoubtedly deterred some U.S.
investors but this should change.

c.  Actions taken or to be taken:

The Embassy has taken a lead role in seeking improvements in Indonesia's IPR
legislation and enforcement efforts.

The Indonesian Administration will issue more implementing instructions to
the patent law which may improve certain existing drawbacks.  Another
challenge to the Indonesian Government will be to get its patent examiners
trained before the implementation date of the law.  USFCS has helped line up
patent examiner training by the Asia Foundation and the U.S. Patent and
Trademark Office and will continue to seek further assistance.

The Indonesian Government is attempting to improve copyright enforcement in
all areas.  An example of this effort was a copyright enforcement workshop
jointly sponsored by the International Intellectual Property Alliance and
the Indonesia Department of Justice in March 1990.  The Government of
Indonesia also has been conducting a series of "roving seminars" on
copyrights and patents in an effort to educate people throughout Indonesia
on the laws.  USFCS will continue to encourage the Indonesian Government to
vigorously enforce the copyright law, including raids on video tape and
computer software pirates.

USFCS will continue to assist American firms which bring trademark cases to
the attention of the Commercial Section.


2.  Film and Videotape Market Access Restrictions

a.  Description:

Indonesia prohibits foreign film and videotape distributors from
establishing branches or subsidiaries.  All importation and distribution is
restricted by law to 100 percent Indonesian owned companies.  Importing and
distributing are handled by associations.  U.S. films were initially
imported by an association of five companies that acted as a monopoly, with
the executing agent making all the decisions.  In April 1992, three more
companies were added to the list of authorized importers.

Films and videotapes are also subject to import quotas.  The import quota on
U.S. and European films combined in 1990 was 80; the quota on videotapes
from all foreign countries was 700.  The number of videotapes imported has
not come anywhere close to the quota level due in part to rampant videotape
piracy.  Dubbing of imported films in an Indonesian language must be done in
Indonesia.  Duties, taxes and other necessary payments also act as barriers.


b.  Estimated impact:

The Motion Picture Export Association of America (MPEAA) estimated its
member companies have lost US$50 million from these barriers and lack of
copyright protection.

c.  Action taken or to be taken:

Indonesia has been on the Special IPR 301 "watch list" since 1989.  MPEAA
and the American Film Marketing Association (AFMA) were not satisfied with
progress and in early 1992 again requested USTR to elevate Indonesia to a
"priority country."  USFCS has worked on this issue for several years and
doubled its efforts in 1991 and 1992.

In late April, 1992, just before USTR was to announce its list of priority
countries under Section 301, (a repeat of the 1991 scenario) the Government
of Indonesia made a commitment to add three companies to the
European-American Film Importers Association (AIFEA) and to allow the U.S.
Motion Picture Export Association of America (MPEAA) to participate in the
selection of the companies.  The Indonesian Government also guaranteed that
the offer by AIFEA to enter into technical assistance agreements with U.S.
film producers and to allow technical advisors from the U.S. producers to
supervise distribution will be adhered to.  The Indonesian Government agreed
to hold further discussions on direct distribution and import quotas.  A
final agreement was that, at such time that foreign companies are allowed to
directly distribute their products in Indonesia, motion pictures would not
be excluded from the list.


3.  Services Barriers

a.  Description:

1)  Financial Services

Financial sector deregulation packages in 1988 permitted foreign banks,
insurance companies, and other financial service providers to enter the
Indonesian market in the form of joint ventures.  Capitalization
requirements are higher for joint ventures than for domestic firms:  in
banking, joint ventures must have Rp 50 billion (approximately US$27
million) in paid-up capital versus Rp 10 billion (approximately US$5.4
million) for domestic banks; joint venture loss insurance companies must
have capital of Rp 15 billion (approximately US$8.1 million) versus Rp 3
billion (approximately US$1.6 million) for domestic companies; and joint
venture life insurance companies must have capital of Rp 4.5 billion
(approximately US$2.4 million) versus Rp 2 billion (approximately US$ 1.1
million) for domestic firms.  In the insurance sector, de facto restrictions
on access to the local market exist, particularly for loss insurance.

2)  Other Services

Foreign accounting firms enter the market through technical agreements with
domestic accounting firms.  Foreign auditors may act only as consultants and
may not sign audit reports.  Majority foreign participation is not allowed
in the advertising industry.  Foreign law firms are not allowed to practice
in Indonesia.  Foreign companies are not allowed to distribute their
products unless the products are made in Indonesia.  The Motion Picture
Export Association of America has complained about its member companies not
being allowed to distribute their films (see IPR section).

b.  Estimated impact:

The differential capital requirements in the insurance industry particularly
for foreign loss insurance companies, combined with limited access to large
business sectors will reduce the atttraction for new U.S. investment in the
insurance industry.  In the banking sector, capital requirements are not
viewed as an intolerable burden; some regard domestic bank capital
requirements as too low.  Limitations on foreign accountants pose serious
barriers; in addition, they impose costs on an economy which suffers from a
lack of trained, experienced accountants.  It is difficult to assess the
amount of sales lost resulting from U.S. companies not being allowed to
directly distribute their products.


c.  Actions taken or to be taken:

The Embassy is closely monitoring regulations in the insurance industry and
is reporting developments to the U.S. Department of Commerce and USTR.  The
Indonesian Government promulgated a new insurance law during the spring of
1992, the effects of which are still being analyzed.  The USG has raised
these and other services barriers in the Uruguay Round context.


4.  Tariff and Other Import Changes

a.  Description:

Indonesia's tariffs range from zero for raw materials and essential
manufactured goods not produced locally to 200 percent for sedans and
station wagons.  Indonesia also imposes an import surcharge ranging from 5
to 30 percent on 396 tariff line items; the surcharge is imposed to
safeguard domestic producers against predatory dumping and to provide
temporary protection where non-tariff barriers (import licensing
requirements) have been removed.  Products subject to the surcharge include
some food, chemicals, and pharmaceutical items.  Most imports are subject to
value-added tax and many items are also subject to a luxury sales tax.

A series of deregulation packages has reduced the overall level of tariff
protection; the most recent tariff reform was introduced on June 3, 1991.
This package liberalized trade in some product of interest to U.S. exporters
(on edible fruits, commercial vehicles, some steel products for example).
Nonetheless, a high incidence of split tariffs and high tariffs on
manufactures continue to impede imports to Indonesia.

b.  Estimated impact:

It is difficult to estimate lost U.S. sales due to high tariffs.  The series
of tariff cuts has helped, but their impact may have been diluted by the
proliferation of tariff categories as Indonesia continues to adjust its
tariff schedule in the wake of its January 1, 1989 conversion to the
Harmonized System.


c.  Actions taken or to be taken:

The Embassy will continue to consult with Indonesia on market access
conditions which impede U.S. exports.  Negotiations have been held on a
bilateral basis as well as under the umbrella of the Uruguay Round
Multilateral Trade Negotiations of the GATT.


5.  Quantitative Restrictions

a.  Description:

In December 1982, the Indonesian Government restricted imports of certain
fruits, confectionary, prepared meats, prepared fruits and vegetables, and
alcoholic beverages for balance of payments reasons.  The restrictions
affected certain items bound during U.S.-Indonesian negotiations in the
Tokyo Round of the GATT negotiations.  Several rounds of discussion have
been held on these restrictions.  The barriers have been progressively
reduced.

The United States and Indonesia continue to negotiate on the elimination of
non-tariff barriers under the Uruguay Round.


6.  Import Licensing

a.  Description:

In 1982, Indonesia established a list of some 130 commodity categories
including food products, chemicals, heavy equipment and consumer goods.
Sole importer rights were given to a few state trading companies or
officially licensed private firms.

In that year, Indonesia also enacted its sole agency decree limiting certain
product imports to a sole Indonesian agent.  For certain products, the
foreign seller must select one Indonesian agent for three years (for
selling) and five years (for manufacturing).  This may restrict the
exporters's ability to sell effectively.  The inability to terminate such a
sole agency contract leads some exporters to avoid the Indonesian market.


Since 1982, the Indonesian Government has removed many products from the
list of goods subject to exclusive importer licensing requirements.  Many
paper, glass, textile, and steel products have been deregulated; notably,
plastics were deregulated in December 1988.  In September 1989, the Bureau
of Logistics (Bulog) monopoly on corn imports was removed.  In the May 28,
1990 deregulation package, several hundred products were shifted to the
general importer category.  These included some items of interest to U.S.
exporters such as fruit juices, candy, tomato paste, and canned fruits.  In
June 1991, a trade deregulation package removed restrictions on edible
fruits and other products of interest to U.S. exporters.  Nonetheless,
remaining exclusive importer arrangements continue to impede trade.  In
addition, grey area measures such as dollar limits on certain products
imported under exclusive licensing arrangements remain.

For still-regulated items, there are four importer categories:  approved
importers (state-owned companies with a special mandate regarding the
products in question such as Krakatau Steel and the state-owned munitions
producers); producer importers (import goods for production processes);
importer producers (import the same goods they produce); and sole agents.

b.  Estimated Impact:

It is not possible to estimate precisely the economic impact of these
practises, especially as some of the licensing requirements were only
recently abolished.

c.  Actions taken or to be taken:

The Embassy continues to consult with the Government of Indonesia, both
bilaterally and multilaterally.


7.  Banned imports

a.  Description:

Indonesia bans the import of certain items including printed material in the
Indonesian and Chinese languages and fully assembled sedans and station
wagons.  The May 28, 1990 deregulation package shifted certain products
(television sets and portable radios) from the forbidden to the general
importer category.

The June 3, 1991 package shifted some commercial vehicles and motor vehicles
from the forbidden import to the restricted import list.

b.  Estimated impact:

The impact of the fully assembled vehicle import ban is difficult to assess;
Indonesians drive on the left side of the road.  Several U.S. auto
manufacturers are involved in joint ventures with Japanese and Indonesian
partners.

c.  Actions taken or to be taken:

American automobile manufacturers have not complained about the import
restrictions.  They appear to be resigned to the status quo and are now
taking a greater interest in local investment.  We have and will continue to
assist these U.S. companies in setting up joint ventures.


9.  Export Barriers

a.  Description:

In a stated effort to boost domestic processing industries and to conserve
tropical forest resources, Indonesia had banned the export of logs, raw
rattan, and semi-finished rattan.  In June 1992, however, those export
restrictions were lifted, replacing them with a system of graduated export
taxes.  Local firms are still working out the procedures to accomodate the
change in policy.  In addition, since 1989, higher export taxes on sawn
timber have been effectively prohibitive.

Various attempts have been made to cartelize domestic wood processing
industries.  In the hardwood plywood sector, these attempts have been
successful.  Commanding over 80 percent of the world market for this
product, Indonesia has been able to organize manufacturers in an industry
association which inter alia determines export quotas for major markets.

Indonesia's use of high export taxes on wood products has resulted in claims
of unfair trade practices by two U.S. pencil slat manufacturers, and has led
to the filing of a Section 301 petition against Indonesia.  On October 2,
1992 the USTR announced plans to conduct a Section 301 investigation into
Indonesian forest products practices.

b.  Estimated impact:

The limitations on the export of forestry sector inputs affect U.S.
industries such as furniture manufacturers, making it more difficult for
them to export products.  It is difficult to estimate the loss of U.S. sales
as a result of the restrictions.

c.  Actions taken or to be taken:

In the Uruguay Round, the United States has supported an EC Standstill and
Rollback complaint about the ban on semi-finished rattan exports.  This
could have been the cause of the removal of the total export ban noted
above.  The U.S. offer in the Tropical Products Group was contingent upon
the removal of the export ban on certain products such as rattan webbing.
The U.S. zero-for-zero wood products sector initiative launched in the
Uruguay Round, therefore, appears to have had some success.


B.  MAJOR INVESTMENT BARRIERS

a.  Description:

Indonesia is publicly committed to seeking foreign investment, and
deregulation packages have addressed many of the serious barriers to
investment.  The number of required licenses has been reduced, the former
cumbersome positive investment list has been replaced by a 60 item negative
investment list, and processes have been made more transparent.  Costs of
doing business, particularly production for export, have been significantly
reduced through trade reform, the duty drawback/exemption system, and
opening of opportunities (for example, to establish and run industrial
estates, to build and operate telecommunications facilities, and to
construct power generation plants) to the private sector.  Indonesia
maintains its long-standing policy of imposing no capital control.

Despite major improvements, barriers to investment remain.  Lack of national
treatment in most instances, burdensome procedures, inefficient bureaucratic
responses, overlapping jurisdictions, and corruption affect the investment
climate.  The legal system is a serious problem; commercial law is
out-of-date, contract enforcement is difficult, and legal proceedings are
lengthy and expensive.  All foreign investment must receive government
approval; the Capital Investment Coordinating Board (BKPM) handles
investment applications in all fields except financial services, petroleum,
and mining which are handled by the appropriate line ministries.  Until the
spring of 1992, with limited exceptions in the special case of Batam Island,
all foreign investment required participation of a joint venture.
Previously, most foreign firms could have an 80 percent stake in the firm at
the time of establishment, although in certain circumstances (more than
US$10 million, in a remote area, or producing mostly for export), 95 percent
initial foreign ownership is permitted.  In principle, joint ventures must
move to majority Indonesian ownership within 20 years.

The requirement used to be 10 years but it was increased to 20 when joint
ventures began to bump up against the limit.  Foreign companies are
permitted 100 percent equity for investments on Batam Island for a period of
five years, after which a local partner with a 5 percent equity share is
required.

The minimum foreign investment is generally US$1 million; since May 1989,
investments of US$250,000 have been permitted.

In May 1992, the Government of Indonesia announced that 100% foreign
ownership would be permitted under certain conditions.  If paid-up capital
is at least $ 50 million, or if a project is located in certain provinces,
the project may be 100% foreign-owned initially, with divestiture to a
maximum of 80% foreign ownership within 20 years.  If a project is located
within a bonded zone, and produces entirely for export, the project may be
100% foreign owned initially, with divestiture to 95% within 5 years.  If a
project is labor-intensive and if at least 65% of production is for export,
or production will be used for inputs in other domestic industries, or if a
project is in certain services sectors, the foreign partner may own 95% of
the project initially, divesting to minority status within 20 years.

Before the October 1986 investment deregulation package, foreign investment
in existing domestic companies was not permitted.  Now it is, provided the
local industry is not on the negative investment list and the additional
capital is required to improve the company's financial condition or to
expand exports.

b.  Estimated impact:

Indonesia has enjoyed a foreign and domestic investment boom since 1987.
Much of the new foreign investment has come from other Asian countries: U.S.
investment remains concentrated in resource extraction rather than in
manufacturing.  Potential U.S. investors remain unduly concerned that it may
be difficult to abide by the Foreign Corrupt Practices Act.

c.  Actions taken or to be taken:

The U.S. did not pursue bilateral investment treaty negotiations because the
Government of Indonesia could not agree to grant national treatment.  The
Embassy has raised concerns about barriers to investment such as the
prohibition on foreigners' owning land in the periodic Agriculture Trade and
Development Mission (ATDM) meetings.


VI. MARKET ANALYSIS PLAN (MAP)

For FY-93, Post plans to prepare Industry Subsector Analysis (ISA) reports
for 15 subsector product categories out of the 25 current selected Best
Prospects provided in Section II, and some of selected Best Prospects
provided in the FY-92 Market Analysis Plan.  These reports are the
continuation to those that were already produced and completed in FY-92.
All the 15 proposed ISA reports will be produced inhouse.  Post will forward
ISA Subsector reports beginning in October, 1992.

A. ISA Reporting schedule

The proposed schedule of report preparation is as follows:

1. Report title: The Indonesian Market for Plastic Molding
                 Machinery and Parts
     Sector code:  PME
     Planned completion: 10/20/92
     Responsible post : Jakarta
     Post researcher: P. Sihombing, MRA
     Est. workweeks: 6 workweeks
   Justification:  Production of various plastic products has grown
substantially since 1980.  Plastic materials and resins are the second
largest commodity group imported by Indonesia during the past few years.  In
order to produce the products demanded by the local economy, imports for
more plastic product machinery will be required.
   Cost of report: NA

2. Report title: The Indonesian Market for Commercial Building
    Air Conditioners and Parts
   Sector code: ACR
   Planned completion: 12/10/92
   Responsible post: Jakarta
   Post researcher: P. Sihombing, MRA
   Est workweeks: 6 workweeks
   Justification:  The major building construction activities which began
during the second half of the 1980's has continued into the 1990's.  This is
to fulfill the need for more office space, hotels and other commercial
buildings.  These kinds of buildings will need air conditioning system
equipment, as Indonesia's climate is extremely warm and humid.
   Cost of report: NA

3. Report title: The Indonesian Market for Miscellaneous
                 Woodworking Machinery
   Sector code: FOR
   Planned completion: 01/31/93
   Responsible post: Jakarta
   Post researcher: P. Sihombing, MRA
   Est. workweeks: 6 workweeks
   Justification:  Wood products have been the second largest of the non-oil
and gas exports from Indonesia during the past few years.  Exploitation of
tropical woods is likely to continue during the next few years.  Therefore,
imports of woodworking machinery and equipment is expected to increase
during the next few years.
   Cost of report: NA

4. Report title: The Indonesian Market for Machines for
                 Extruding, Drawing and Cutting
                 Man-made Textile Materials
   Sector code:  TXM
   Planned completion: 03/20/93
   Responsible post: Jakarta
   Post researcher: P. Sihombing, MRA
   Est. workweeks: 6 workweeks
   Justification:  The largest non-oil and gas export revenues during the
last few years resulted from textile and garment products.  It is likely to
continue to the end of the century.  Therefore, imports of more textile
machinery are expected to take place during the period.
   Cost of report: NA

5. Report title: The Indonesian Market for Beverages
                 Food Processing and Packaging Machinery
   Sector code: FPP
   Planned completion: 05/10/93
   Responsible post: Jakarta
   Post researcher: P. Sihombing, MRA
   Est. workweeks: 6 workweeks

  Justification:  Manufacturing has rapidly developed during the latter half
of 1980's.  It is expected to continue during the 1990's.  Imports of food
processing machinery, specifically for the brewery industry are expected to
increase in line with the growth of the manufacturing industries.
   Cost of report: NA

6. Report title: The Indonesian Market for Iron and
                 Steel Products
   Sector code: IRN
   Planned completion: 06/20/93
   Responsible post: Jakarta
   Post researcher: P. Sihombing, MRA
   Est. workweeks: 6 workweeks
   Justification:  There was a great expansion in construction activities
during the 1980s, and this is likely to continue through the year 2000.
Highrise buildings, bridges, industrial complexes as well as residential
buildings need a large amount of iron and steel products.  Some needs can be
supplied by local products, but more imports are expected to be necessary
during the next few years.
   Cost of report: NA

7. Report title: The Indonesian Market for Oil and Gas
                 Production Equipment and Parts
   Sector code: OGM
   Planned completion: 08/07/93
   Responsible post: Jakarta
   Post researcher: P. Sihombing, MRA
   Est. workweeks: 6 workweeks
   Justification:  Exploration and recovery activities of oil and gas
products were expanded following the improvement of oil and gas prices on
the world market, after the decline experienced during the first half of the
1980's. In order to be able to produce more products, imports for more oil
and gas equipment must be made during the next few years.
   Cost of report: NA

8. Report title: The Indonesian Market for Hydro-electric
                 Power Generation Equipment
   Sector code: ELP
   Planned completion: 09/20/93
   Responsible post: Jakarta
   Post researcher: P. Sihombing, MRA
   Est. workweeks: 6 workweeks
   Justification:  There is a growing shortage of electric power in
Indonesia due to the rapid development of the manufacturing sector, and the
Government's commitment to provide more electric power to rural areas.
Construction of many hydro-electric power plants must be undertaken in order
to fulfill these needs, which can utilize the many rivers in the country.
   Cost of report: NA

9. Report title: The Indonesian Market for Water
                 Pollution Control Equipment
   Sector code: POL
   Planned completion: 11/07/92
   Responsible post: Jakarta
   Post researcher: R. Bhinekawati, Research Assistant
   Est. Workweeks: 6 workweeks
   Justification:  Water pollution is the most pressing environmental
problem faced by Indonesia.  Several government regulations have been put in
place, and there will be some environmental projects to be implemented with
the assistance of several donor countries.
   Cost of report: NA

10.Report title: The Indonesian Market for Fibers/Yarns:
                  Cotton, wool and Blend
   Sector code: YAR
   Planned completion: 12/21/92
   Responsible post: Jakarta
   Post researcher: R. Bhinekawati, Research Assistant
   Est. workweeks: 6 workweeks
   Justification:  Textiles are the second largest non-oil and gas export
from Indonesia.  In addition, the total demand for textile products for
local consumption is also increasing.  Although many polyester and nylon
yarn plants have been established, a significant amount of polyester and
other artificial yarns will still be imported during the next three to five
years.
   Cost of report: NA

11.Report title: The Indonesian Market for Fiber Optic
                 Transmission Equipment
   Sector code: TEL
   Planned completion: 02/10/93
   Responsible post: Jakarta
   Post researcher: R. Bhinekawati, Research Assistant
   Est. workweeks: 6 workweeks
   Justification:  Indonesia is attempting to transform its
telecommunications infrastructure into a completely digital system by the
year 2004.  Imports of fiber optics equipment are increasing from year to
year because of the demand which cannot be supplied by local manufacturers.
   Cost of report: NA


12.Report title: The Indonesian Market for Industrial
                 Waste Treatment Equipment
   Sector code: POL
   Planned completion: 03/31/93
   Responsible post: Jakarta
   Post researcher: R. Bhinekawati, Research Assistant
   Est. workweeks: 6 workweeks
   Justification:  Environmental Impact Assessments (EISs) will be required
for all new projects and for those existing facilities which produce toxic
or hazardous wastes.  Recently the first center for the treatment of toxic
waste was developed.  The government is planning to approve some other such
centres in the near future.
   Cost of report: NA

13.Report title: The Indonesian Market for Hydraulic
                 Fluid Power Pumps and Parts
   Sector code: PVC
   Planned completion: 04/20/93
   Responsible post: Jakarta
   Post researcher: R. Bhinekawati, Research Assistant
   Est. workweeks: 6 workweeks
   Justification:  Rapid growth in manufacturing, oil and gas production and
exploitation, the construction of dams and irrigation systems has resulted
in increased imports of pumps and parts in the last few years.
   Cost of report: NA

14. Report Title: The Indonesian Market for Cellular Telephone Equipment
    Sector Code: TEL
    Planned Completion: 06/07/93
    Responsible Post: Jakarta
    Post Researcher: R. Bhinekawati, Research Assistant
    Est. workweeks: 6 workweeks
    Justification:  The cellular telephone systems can be operated by
    private sectors with the Revenue Sharing Arrangement with PT TELKOM.
    Currently there are 5 cities served by cellular telephone equipment with
    the capacity of 20,000 lines.  The investors now developing more than
    23,000 lines and there are 6 more cities will be served earlier in
    1993.  More and more lines will be developed in the future to meet the
    growing demand of this service.

15.  Report title: The Indonesian Market for Pulp and
                 Paper Machinery and Parts
   Sector code: PUL
   Planned completion: 07/31/93
   Responsible post: Jakarta
   Post researcher: R. Bhinekawati, Research Assistant
   Est. workweeks: 6 workweeks
   Justification:  Aside from an ambitious plan to develop self-sufficiency
in the supply of paper, Indonesia is also very eager to export paper pulp
and paper products in the future, and to become the largest pulp and paper
products producer in Asia before the end of the century.  In light of this,
a significant amount of pulp and paper machinery will be imported to the
country.
   Cost of report: NA


B.  Customized Sales Survey (CSS) Report

During FY 92, Post completed 6 CSS reports.  During FY 93, post should be
able to complete eight given current resources.  CSS reports in addition to
these will be contracted to local firms as instructed in the CMP Guidelines,
if funding is available.  Estimate contract fee per report is US$1,500.


C.  Proposed potential contractors for ISA and CSS reports:

1. P.T. Data Consult
P.O. Box 108/JATJG
Jakarta, Indonesia
Contact: Mr. Sulaeman Krisnandhi, Director
Telex: 46388 EMBICY IA; Fax: [phone]

2. P.T. Capricorn Indonesia Consult, Inc.
Jalan Raden Saleh 46
Jakarta 10330, Indonesia
Contact: Mr. Wilson Nababan, Director
Fax: [phone]

3. P.T. Bina Asih Consultants
Jalan Cilacap No. 3
Jakarta Pusat, Indonesia
Tel: 351-340, 359-463
Fax: [phone]
Contact: Mr. D. R. Nainggolan, Director


VII.  TRADE EVENT PLAN

Present planning calls for FCS Indonesia to organize the following trade
promotion events during FY '92-'93.


Ohio-Gabdi Business Mission
          Date            9/15-18/92
          Theme           Various Product Categories
                          Inc: Machine Tools, Plastic
                            Production and Processing Machinery,
                            Food Processing & Packaging Machinery
          Type            TM
          Location        Jakarta
          Est. Resources  3.0 work/weeks

Environtmental Trade Mission
          Date            10/22-28/92
          Theme           Environmental Tehnology
          Type            TM
          Location        Jakarta
          Est. Resources  4 work/weeks

Comdex/Fall
          Date            11/16-20/92
          Theme           Computer products and services
          Type            FBP, NTM
          Location        Las Vegas
          Contact         Richard Schwab, [phone]
          Est. Resources  0.5 work/weeks

Manufacturing Indonesia
          Date            12/1-5/92
          Theme           Chemicals, Polution/Environment
                           Plastic and Rubber, Textile and
                           Clothing Machinery
          Type            PIP, OTM
          Location        Jakarta
          Contact         Philip Jenkinson, [phone]
          Est. Resources  2 work/weeks

Communication Technology Indonesia
          Date            2/17-20/93
          Theme           Telecommunications/Business Commu-
                          nications Systems, Computer, Hotel/Cate
                           ring equipment and food exhibition
          Type            PIP, OTM
          Location        Jakarta
          Contact         Philip Jenkinson, [phone]
          Est. Resources  3 work/weeks

Growth Industries USA
          Date            2/93
          Theme           Various Products Industries
          Type            RC
          Location        Jakarta
          Est. Resources  3 work/weeks