During The Pagebluk Of COVID-19, Indonesia Was Accused 16 Times Of Committing 'cheating' In Export Activities

Ministry of Trade Building. (Irfan Meidianto / VOI)

JAKARTA - The Ministry of Trade has revealed that during the mid-week of COVID-19, Indonesia was charged 16 times with 'cheating' or using trade remedies in international trade. As a result of this accusation, the country's foreign exchange of 1.9 billion United States (US) dollars or equivalent to Rp.26.5 trillion could potentially be lost.

Whereas trade remedies are instruments that are legally used to protect the domestic industry of a country from losses or the threat of loss as a result of unfair trade practices or because of a surge in imports and unexpected developments.

Rules regarding trade remedies are compiled by the World Trade Organization (WTO) or the World Trade Organization. It can take the form of anti-dumping import duties (BMAD) or temporary security measures (BMTP) or safeguards and Compulsory Duties (BMI).

Acting Director General of Foreign Affairs of the Ministry of Trade Srie Agustina said that the 16 initiations of accusations of trade remedies were in the form of anti-dumping and safeguards from trading partner countries against Indonesian export products in export destination countries.

"All these allegations have the potential to cause a loss of foreign exchange of an estimated US $ 1.9 billion or equivalent to Rp26.5 trillion. A figure that is not small in the midst of conditions requires foreign exchange sources for state opinion. That's a large amount within five months. this, "he said, in a virtual discussion, Monday, June 8.

Based on data from the World Trade Organization, in the last five years there has been an increase in the imposition of BMAD, BMTP and BMI globally by 36 percent. In total, it increased from 182 cases in 2013 to 244 cases in 2019.

Srie said that in Indonesia there were 84 cases of the imposition of the global trade remedy instrument. This amount is less than 2 percent of the global trade remedy instrument.

Furthermore, Srie said, there were 8 Indonedia export products that were accused of being involved in anti-dumping and safeguards. These products are monosodium glutamate, steel products, aluminum products, wood products, textile yarn products, chemicals, mattress beds and automotive products.

"Those vulnerable to accusations so far are 63 cases of steel products, 55 cases of textiles, 50 cases of chemical products, 37 cases of mineral products and 52 cases of wood products," he explained.

Countries That Often Accuse Indonesia

Srie revealed that the countries that most frequently accused Indonesia of using remedial instruments were India with 54 cases, United States 37 cases, European Union 37 cases, ASEAN 34 cases and Australia 28 cases.

Then, Srie continued, other countries were Turkey with 23 cases, Malaysia with 19 cases, Philippines with 15 cases, South Africa with 14 cases, and Brazil with 11 cases.

"Indonesia is in the 8th rank of the country most frequently targeted in investigations and implementation of anti-dumping measures in the world," he said.

Not only Indonesia, Srie said, countries in the world that often become targets of BMAD are China with 1,008 cases, Korea 283 cases, Taipei 210 cases, United States 189 cases, Japan 164 cases, Thailand 161 cases, India 144 cases, and Indonesia 140 cases.

"Seeing this, we just take the positive side, because Indonesia is also seen as a power equal to the world's industrialized countries," he said.

Meanwhile, Srie said, for accusations of anti-subsidies, Indonesia was ranked 4th as the country most frequently subject to accusations of anti-subsidies, and the 7th largest country most frequently used by Indonesian migrant workers after China, India, Korea, European Union, Brazil. and Italy.

However, Sri explained, not all anti-subsidy investigations ended at the imposition or only 58 percent ended in the imposition of Compulsory Duties, the rest could be resisted.

"Of course, this is after we have conducted a joint defense in an effective and coordinated manner," he said.