Government involves industry in response to US trade investigation

Jakarta (ANTARA) — The government plans to consult with business actors and industry associations to discuss a trade investigation being conducted by the US Trade Representative (USTR) through the Section 301 mechanism.

Coordinating Minister for Economic Affairs Airlangga Hartarto explained that this step was taken to prepare Indonesia’s position in the consultation process that will be conducted by the US government.

“Tomorrow we will invite related ministries and agencies, the Trade Minister, the Chamber of Commerce and Industry (Kadi), as well as the Indonesian Employers Association (Apindo), and other associations,” said Airlangga during a media briefing at the Coordinating Ministry for Economic Affairs in Jakarta on Monday.

According to Airlangga, there are two main areas of focus in the discussions with industry: production capacity and forced labour practices.

Section 301 is a mechanism in the US Trade Act used to assess whether a country’s trade practices are considered unfair, discriminatory, or harmful to US trade interests.

Indonesia, said Airlangga, has already responded to the issue through a reciprocal trade agreement, known as the Agreement on Reciprocal Trade (ART).

However, developments within the United States, including Supreme Court decisions and global tax policies which currently only apply for 150 days, have prompted the US government to prepare an additional instrument in the form of Section 301.