The initiation of investigations into safeguards or safeguards has the potential to re-emerge in 2022, continuing the trend in 2020 and 2021. However, requests for investigations are not expected to end much in the imposition of import duties on security measures. University of Indonesia (UI) economist and Next Policy Executive Director Fithra Faisal Hastiadi said the increase in imports was unavoidable during the economic recovery period. Indonesian imports, especially for industrial raw materials, have been relaxed since 2020.
"The domestic economy really needs input from imports to accelerate production. The relaxation itself is in line with PMI developments," said Fithra, Sunday (16/1/2022).
Fitra estimates that requests from business actors for security measures will still be accommodated. However, taking into account the needs of industrial production inputs nationally, Indonesia will not be too aggressive.
"Perhaps 1 or 2 sectors compete with imported products, but this is for the greater good because at a macro level we need production inputs," he said.
He said industry players would try to boost production, including by increasing inputs from imports, in line with rising global demand. He noted that the increase in global demand in 2021 has not been followed by an acceleration of a balanced increase in supply.
"I think if this is prevented by safeguards, it will have a negative impact on the economy," he added.
Contacted separately, Executive Director of the Center of Reform on Economics (Core) Mohammad Faisal said that requests for securing the domestic market are very likely to emerge, amid efforts by business actors to restore domestic sales. Moreover, the phenomenon of rising electricity tariffs and higher raw material prices can be a factor in reducing the competitiveness of domestic industries.
"If the industry has not fully recovered, there is an opportunity for safeguards to emerge," he said.
He noted that several industries have not yet recovered optimally because domestic absorption is still limited, including textile and electronic products.
Previously, the Indonesian Trade Security Committee (KPPI) of the Ministry of Trade stated that no business sector had officially filed an investigation into security measures for the surge in imports. However, there are several products that could potentially be investigated in 2022.
"For 2022, until now no one has officially submitted a request for a safeguard investigation [safety measure]. There is information that is still informal that there are several imported products that have the potential to apply for a safeguard investigation, including glucose syrup, plastic sheeting, and evaporators, "said the chairman of KPPI, Mardjoko.
 Meanwhile, at the meeting of the World Trade Organization or WTO on safeguards in October 2021, Japan, China, and Australia voiced concerns about the many security actions taken by member countries. They emphasized that safeguards are used in urgent situations when imports prove to cause serious losses to the domestic industry. Meanwhile, since the WTO Safeguards Committee meeting in April 2021, there have been 32 security measures taken by member countries.
