Speaking at a press conference on the latest economic situation and the realization of the state budget, Bambang Brodjonegoro, head of the finance ministry`s fiscal policies division, said here on Thursday, the bulk of imports from China has entered Indonesia under the ASEAN-China Free Trade Area (ACFTA) agreement facility but through the Most Favored Nation mechanism.
"This has led to the creation of incentives for the use of ACFTA import facilities and, therefore, there should be a trade mechanism in order to mitigate the pressure of imports (from China)," he said.
Brodjonegoro specifically spoke of the policy of anti-dumping import duties (BMAD) where additional duties can be levied on import products which backed by dumping strategies in their exports.
"This however will still need the required evidences that the dumping practice has been implemented by the countries of origin for the imports while at the same time the competitiveness of the local products will not be disturbed by the higher duty levies," he explained.
In addition, the mechanism of countervailing duties will also be implemented where higher import duties for the conceived unfair trade practice, like export subsidies, he said.
"The requirement for this import duty will be the same as the anti-dumping one where there will be evidences needed that unfair trade practice has been implemented," Brodjonegoro said.
Uu.(KR-VFT/H-AJM/F001)
Editor: Priyambodo RH
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