Madagascar Frees Indonesian Deterjen Powder Products From Security Duty

Minister of Trade Zulkifli Hasan. (Photo: Doc. Ministry of Trade)

JAKARTA Indonesia is exempt from the extension of the safeguard duty or the import duty of security measures (BMTP) for detergent powder products by Madagascar.

This is stated in a notification submitted by Madagascar to the World Trade Organization (WTO) and published on June 7, 2023.

Trade Minister Zulkifli Hasan welcomed the decision.

He said this was good news for the export of Indonesian detergent powder products ahead of the celebration of the 78th Independence Day of the Republic of Indonesia.

The Culture Authority announced the final results of the investigation by determining the extension of the safeguard duty for detergent powder products over the next four years. The good news is that Indonesia is free from the extension of the safeguard duty," he said, in Jakarta, written Tuesday, August 8.

Thus, continued Zulkifli Hasan, access to the export market for Indonesian detergent powder products to Madagascar is open and competitive again.

"We must be able to increase this opportunity optimally," he said.

In June 2019, Madagascar implemented safeguard duty on imported detergent powders, including those from Indonesia.

On February 18, 2023, Madagascar began an investigation into the extension of the safety duty for detergent powder products with tariff posts 340249, 340250, and 340290.

The end of the investigation was marked by a notification of Madagascar to the WTO on June 7, 2023.

Meanwhile, the Director General of Foreign Trade of the Indonesian Ministry of Trade, Budi Santoso, said that during the investigation process, the Indonesian government and related exporters had taken proactive steps to get positive results.

The government and business actors have been cooperative during the investigation process. This good collaboration finally bore fruit. Indonesia has been successfully excluded from the implementation of safeguard duty," said Budi.

The Central Statistics Agency (BPS) noted that prior to the implementation of the safeguard duty, the export value of Indonesian detergent powder products to Madagascar was recorded at 5.4 million US dollars in 2018.

After its implementation in 2019, Indonesia's exports for these products fluctuated.

In 2022, the export value will reach 4.6 million US dollars.

Meanwhile, in the January-May 2023 period, the export value of these products increased 2.81 percent compared to the same period the previous year.

Director of Trade Security of the Indonesian Ministry of Trade, Natan Kambuno, added that this momentum of success must be utilized by Indonesian exporters to improve export performance which had been disrupted to Madagascar.

The main import countries for detergent powder products in Madagascar, namely Egypt, Turkey, and Mauritius will continue to be subject to safeguard duty for the next four years. Hopefully, this good opportunity can be utilized optimally by domestic business actors," concluded Natan.