The Indonesian Ministry of Trade, through the Directorate General of Foreign Trade, has facilitated the verification of the antisubsidy investigation conducted by the United States Department of Commerce (USDOC) on February 19-21, 2024, in Jakarta.
Director of Trade Security at the Directorate General of Foreign Trade Natan Kambuno said verification is one of the important stages in the trade remedies investigation process. By being cooperative, Indonesia’s opportunities to maintain and improve mattress export performance to the US become more open.
“During the verification process, the authorities requested further explanation and clarification regarding the data and information provided by the Indonesian Government in the questionnaire.
The verification results will be one of the determining factors for the final results of this antisubsidy investigation,” Natan said in a statement in Jakarta on Tuesday, February 27, 2024.
Previously, the USDOC began an antisubsidy investigation on August 17, 2023. Since the investigation began, the Indonesian Government has always been cooperative, responding to initial and additional questionnaires submitted by the authorities.
In the questionnaire, the USDOC requested explanations regarding several Indonesian Government policy programs deemed to provide subsidies to the Indonesian mattress industry. The preliminary investigation results were published on December 26, 2023. Based on the preliminary investigation results, the authorities found that the amount of subsidies received by Indonesian mattress exporters was less than 1 percent ad valorem or de minimis.
According to World Trade Organization (WTO) regulations, an antisubsidy investigation must be terminated if the authorities find that the amount of subsidies is less than 1 percent ad valorem.
“The investigation results so far are quite positive for Indonesia. We hope that this positive result can continue until the final investigation, so that Indonesian mattresses can continue to be exported to the United States without additional duties,” said Natan. This investigation verification is part of the antisubsidy investigation against Indonesian mattress product exports to the US.
The activity was attended by representatives from related ministries and institutions, namely the Ministry of Finance, the Ministry of Industry, the Ministry of Investment/Investment Coordinating Board (BKPM), the Indonesian Export Financing Agency (LPEI), the Bogor City Regional Revenue Management Agency, and legal representatives. Over the past five years (2019-2023), Indonesian mattress were exported to the United States, with tariff/HS code numbers 940421 and 940429 having increased by 11.17 percent and reached a record high of US$365.52 million in 2021. However, in 2023, this performance declined to $303.77 million or a decrease of 8.93 percent from 2022, which recorded $333.56 million.
