JAKARTA - The Indonesian government is preparing an official response to the trade investigation conducted by the United States through the Section 301 mechanism.
The investigation covers a number of issues, such as alleged excess production capacity and indications of forced labor practices.
Coordinating Minister for the Economy, Airlangga Hartarto, said the government had held a cross-ministerial meeting to prepare answers to various accusations.
He assessed that this response was a crucial first step before the investigation process continued to the next stage.
"Of course we are asked to respond, because after we respond, we will submit it in a meeting, then there will also be a follow-up investigation. The important thing is that we just respond," Airlangga told the media, quoted Tuesday, April 14.
Airlangga explained that the two main issues that were in the spotlight were excess production capacity and the use of raw materials associated with forced labor practices.
However, he said the government considered some of the accusations to be inappropriate, especially if they were associated with certain commodities.
For example, he emphasized that Indonesia does not export cement to the United States, so the issue of excess capacity in the sector is considered irrelevant.
"Our semen has never been exported to America, so we just have to answer," he said.
Meanwhile, Trade Minister Budi Santoso ensured that the government would submit the official response documents by no later than April 15.
He said that all the defense materials had been prepared well and in general Indonesia's position did not face any significant obstacles.
"So on the 15th we have to convey it regarding the initiation or investigation of Section 301. Everything was prepared, just now, yes, there were inputs, we still have time. But I think in general there is no problem," he said.
In the document, he conveyed that the government would emphasize that there was no policy that triggered structural overcapacity in the country and that the production activities of national industries were said to be running according to market mechanisms.
In addition, Budi said that Indonesia's trade surplus with the US was explained as a result of high market demand in America, not as a result of domestic policy distortions.
"Indonesia does not have a policy that results in structural excess capacity, yes," he said.
Regarding the issue of forced labor, Minister of Manpower Yassierli emphasized that Indonesia has strong labor regulations and is committed to enforcing human rights.
He emphasized that forced labor practices are not tolerated in the national production system.
"We have always been, yes, very good in terms of regulation of human rights enforcement, so there is no such thing and we have never done that, yes, tolerating forced labor in our production system," he said.
Yassierli also explained that the questions from the US were more focused on Indonesia's policy in prohibiting the import of products derived from forced labor practices, not direct accusations against conditions in the country.
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