Kadin Warns Indonesian Govt of Retaliatory Measures Against Safeguard on Imported Commodities
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15 July 2024 20:44 WIB
TEMPO.CO, Jakarta - The Indonesian Chamber of Commerce and Industry (Kadin) supports the government's plan to implement anti-dumping import duties for seven commodities. Kadin also warned the government of retaliation potential when applying safeguard measures to exporting countries.
"Beware of retaliation, don’t let other countries take specific notice of this policy,” said Kadin’s Deputy Chairperson of the Coordinator for Maritime, Investment, and Foreign Affairs on Monday, July 15, 2024.
Shinta gave an example of the Philippine government’s special safeguard on coffee in 2019 due to Indonesia’s bigger trade surplus at the time. The safeguard measure caused Indonesia’s PT Mayora Indah’s issuer to suffer US$16 million or Rp225 billion losses.
Shinta said the Philippines at that time was able to implement special safeguards because the targeted commodities were agricultural products. Meanwhile, Indonesia could not impose the same measures as the targeted commodities are textile and textile products.
“That’s why the government must be very careful since textile commodities must impose a thorough safeguard,” she said.
The government is currently working with various agencies to implement the ideal safeguard figure, Shinta said, which required an in-depth analysis based on WTO standards.
Trade Minister Zulkifli Hasan said the Indonesian Anti-Dumping Committee (KADI) and the Indonesian Trade Safeguard Committee (KPPI) were reviewing the imports over the past three years as the basis for the implementation of import duties on seven commodities.
The seven commodities are textiles, ready-made garments, ceramics, electronics, cosmetics, finished textile products, and footwear from various countries, not only China.
"(The committees) will review whether the import rate for the past three years was so excessive as to disrupt our industry,” he said on July 8.
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