Thu, 22 Apr 2004

Indonesia, S'pore sign agreement on telecommunications

The Jakarta Post, Jakarta

Indonesia and Singapore signed on Wednesday a memorandum of understanding (MoU) on telecommunications equipment conformity testing, becoming the first Association of Southeast Asian Nations (ASEAN) members with such a bilateral agreement.

Singapore's Director General of Infocomm Development Authority Leong Keng Thai and Indonesia's Director General of Post and Telecommunications Djamhari Sirat signed the agreement in Jakarta, according to an Infocomm press release.

Telecommunications equipment must be tested against the standards of the importing country before they can be approved for sale and distribution. Testing is usually undertaken by an accredited laboratory based in the receiving country.

Under the MoU, equipment testing can be conducted at any laboratory based anywhere in the world, as long as it is recognized by the importing country.

The MoU will enhance Indonesia's telecommunications equipment imports and exports, as tests by accredited laboratories will help avoid duplicate testing.

It will also offer faster market entry to telecommunications businesses at reduced costs, saving up to 45 days' delivery time and up to S$700 (US$416.60) per model.

In 2003, telecommunications equipment trade with Indonesia respectively accounted for 8.3 percent and 10.1 percent of Singapore's total imports and exports.

The MoU will also facilitate telecommunications trade through the reduction of non-tariff trade barriers. It will entail more frequent exchanges and updates on the two countries' telecommunication regulatory requirements which, in turn, will enhance market access opportunities for telecommunications equipment for both countries.

The MoU was initially raised at the last ASEAN ministerial meeting on telecommunications and information technology (TELMIN) in September 2003 in Singapore.

The ASEAN TELMIN is an annual forum that seeks to strengthen ties, promote rapport and establish concrete channels of communication and cooperation among ASEAN members.