Trade Minister Enggartiasto Lukita emphasized that he will continue to secure market access for Indonesian products abroad, including for Indonesian A4 photocopy paper in the Australian market. "The decision issued by the Assistant Minister for Industry, Innovation and Science imposes Anti-Dumping Import Duty (BMAD) on three Indonesian paper exporters/manufacturers with the exception of one exporter/manufacturer whose dumping volume does not exceed the minimum limit of 2% (negligible level) or below 2%," said Trade Minister Enggartiasto Widodo.
Meanwhile, Countervailing Duty (CDU) is not imposed because the Australian Government's subsidy investigation has been discontinued, considering that the Indonesian Government's subsidies do not exceed the minimum 2% limit. Effective April 20, 2017, the CDU imposed on three Indonesian exporters/manufacturers is 12.6%, 35.4%, and 38.6%, respectively, and will be in effect for the next five years.
These safeguards are specifically related to the Australian Government's statement that a Particular Market Situation (PMS) exists in the Indonesian paper industry, leading to increased dumping margins imposed on Indonesian exporters/producers. Furthermore, the statement that a PMS exists in Indonesia could potentially lead to further investigations by Australian or other countries to initiate trade remedy charges.
The company has also filed a lawsuit against the statement and will even take Australian investigators to the WTO's Dispute Settlement Body (DSB). Echoing Enggar's sentiments, Deddy Saleh, the Head of the Indonesian Negotiating Team for the Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA), also stated that the imposition of import duties on Indonesian paper would undoubtedly impact the IA-CEPA negotiations. The investigation into allegations of dumping and subsidies on Indonesian A4 photocopy paper was initiated on April 12, 2016, at the request of the Australian domestic paper industry. The investigation was conducted in 2015, when Australian A4 photocopy paper imports from Indonesia amounted to USD 25.1 million.