USTR Investigates Indonesian Products, Government Prepares Defence Arguments and Data

JAKARTA, KOMPAS.com - The Indonesian government is beginning to prepare strategic steps to address the potential trade investigation from the United States Trade Representative (USTR), following developments in US trade policy. Spokesperson for the Coordinating Ministry for Economic Affairs Haryo Limanseto revealed that the investigation arose after the US Supreme Court’s decision to annul the International Emergency Economic Powers Act (IEEPA). As a follow-up, the USTR has issued an investigation based on Section 301 against several countries, including Indonesia. Haryo stated that the government has anticipated this from the outset by preparing various requirements and supporting documents to handle the investigation process. He mentioned that the issues highlighted in the investigation include allegations of excess production capacity in the manufacturing sector up to forced labour practices in supply chains. According to him, the various issues of concern to the USTR have actually been accommodated in the framework of the Agreement on Reciprocal Trade (ART) between Indonesia and the United States. To strengthen Indonesia’s position, the government, together with relevant ministries and agencies as well as industry associations, has conducted consolidation. This step is taken so that all data and input provided in the investigation process are aligned and strengthen Indonesia’s position. Moving forward, the government will also form a cross-agency coordination team tasked with preparing arguments based on legal analysis, regulations, and supporting data. This team will also conduct direct consultations with the USTR to expedite the clarification process. “We hope the consultation process can proceed faster than scheduled by providing evidence that we have implemented the established regulations,” Haryo said. Furthermore, the government will emphasise that Indonesia already has rules regarding anti-dumping practices, countervailing duties, and prohibitions on forced labour. In addition, the government will demonstrate that the national manufacturing production capacity does not violate global trade rules as long as there is no dumping practice or other unfair trade practices. “Regarding excess production capacity in the manufacturing sector that is exported, it does not violate World Trade Organization rules if there is no dumping practice or other unfair trade practices,” Haryo stated. With these steps, this subordinate of Coordinating Minister for Economic Affairs Airlangga Hartarto hopes to prove that Indonesia’s trade practices remain in line with international provisions and do not harm the global market.