Dumping allegations hurting RI exports: Rini
Adianto P. Simamora, The Jakarta Post, Jakarta
Dumping allegations against Indonesian export products have seriously affected the country's exports, causing billions of dollars in potential revenue losses, Minister of Trade and Industry Rini M. S. Soewandi said on Wednesday.
She said that the allegations had prompted foreign governments to impose antidumping measures which made it difficult for Indonesian products to enter particular overseas markets.
"... antidumping measures have become a serious trade barrier for our products in penetrating the international market," Rini said in a speech at a trade seminar organized by Japan International Cooperation Agency (JICA).
She said that the dumping allegations were mostly initiated by the United States, the European Union, Australia, New Zealand, India, the Philippines, Canada and South Africa.
"Most antidumping investigations are being targeted on paper, textiles and clothing, steel, float glass, food, plastic and rubber products," Rini added.
Since the tariff barrier can no longer be used to protect domestic industries as it is against the World Trade Organization (WTO) ruling, many countries are now using antidumping instruments as a legal remedy to offset injury.
Data from the Ministry of Trade and Industry shows that so far there have been some 99 dumping cases launched against Indonesia since 1996.
Rifana Erni, director general of industry and international trade relations at the ministry said that the dumping allegations had caused overseas buyers to cancel the purchase of Indonesian products, due to fears of being penalized by their respective governments, although investigation into the cases were not completed.
According to the Central Bureau of Statistics, exports declined by 6.7 percent to US$27.37 billion during the first half of this year compared to $29.35 billion in the same period last year.
Analysts have said that the weak export performance is due to various reasons including business uncertainty at home and the global economic slowdown.
Improvement in export performance is important to push economic growth, which so far has been mainly relying on domestic consumption.
Rifana said that her office would try to quickly settle the dumping allegations so that foreign buyers would resume buying Indonesian products.
Meanwhile, Bachrul Chairi, director of trade protection at the ministry said that Indonesia had also launched antidumping allegations against several imported products to help protect local industries.
He pointed out that the ministry was handling some 23 dumping cases against imported products,
"We have imposed antidumping charges against seven imported products," he said, but did not give details.