The Indonesian Safeguards Committee (KPPI) recommended that the Indonesian government take safeguard measures against Bangladeshi apparel import to save the Indonesian domestic industry, according to a senior official of commerce ministry of Bangladesh.
The KPPI recommended imposing the safeguard measures as the body thinks its domestic industry is being hampered by import of Bangladeshi garment items as Indonesia is also a major garment producing nation, said Md Hafizur Rahman, director general of World Trade Organisation (WTO) Cell under the Commerce Ministry.
"We have seven days in our hand. We are taking preparations to reply to the safeguard measures of Indonesia," Hafizur said.
Earlier, in a hearing held in November last year, Bangladesh opposed the Indonesian safeguard measures against Bangladeshi apparel items in Indonesian markets.
The logic of Indonesian authority is that Bangladeshi apparel is exported to Indonesia more but that is not true. China is the largest clothing exporter regionally and internationally, he said. "We will start contacting the Indonesian government in this connection soon," Hafizur added.
Rubana Huq, president of Bangladesh Garment Manufacturers and Exporters Association in a statement said bilateral trade between Bangladesh and Indonesia is in Indonesia's favour.
Huq also said the safeguard petition in table 4.2 (a) reports applicants claiming 7.02 percent decrease in domestic industry and non applicants reporting 3.91 percent decline.
Increasing producers' prices in between 2015 and 2019, minimum wage increases of 8.97 percent in between 2016 and 2020 have also contributed to the lack of Indonesia's competitiveness, and safeguard measure is not appropriate to check such systematic erosion of competitiveness since safeguard duties are imposed only temporarily.