Deputy minister calls for optimization of trade remedies

Jakarta (ANTARA) - Deputy Trade Minister Dyah Roro Esti Widya Putri emphasized the critical importance of Indonesia optimizing trade remedies, particularly focusing on anti-dumping and anti-subsidy mechanisms, to safeguard the domestic market and secure Indonesia's export markets abroad.

Putri explained that considering Indonesia's status as a member of the World Trade Organization (WTO), the instruments can be used to face unfair international trade.

"This is a (form of) protection for domestic industries from market flooding by imported products that are suspected of being sold at dumping prices or with subsidies, thus causing losses or decreased performance for domestic industries," Putri noted in a statement from her ministry here on Friday.

Another trade remedies instrument that can also be used when imported goods flood the domestic market is trade safeguard measures.

To use this instrument, Putri accentuated the need for the government to ensure the balance of upstream and downstream industries and users, the impact on the economy as a whole, and sound relations with Indonesia's trading partners.

According to the deputy minister, several domestic industrial sectors are experiencing conditions that warrant special attention.

The Ministry of Trade noted that Indonesia's manufacturing Purchasing Managers' Index (PMI) in October 2024 stagnated at a contraction level of 49.2.

This stagnation has occurred for four consecutive months, one of which is caused by the practice of dumping by several countries of origin of goods imported to Indonesia.

"Allegations of dumping and subsidies against Indonesia are also one of the factors hindering the growth of domestic industries that are export-oriented," she remarked.

With support from strong national economic fundamentals, Indonesia's economy continues to grow well, proving economic resilience amid global stagnation, geopolitical tensions, and regional conflicts.

The country's economic growth in the third quarter of 2024 stood at 4.9 percent, and it is expected to reach five percent at the end of the year.

Putri also highlighted the good performance of Indonesia's trade activities. The country's trade surplus in September 2024 reached US$3.26 billion, rising from the surplus in August 2024, which stood at US$2.78 billion.