Activities

^ DPP Team. Middle front row: Nathan Kambuno. Standing on the far left of second row: Baskoro Riswiandanu.

Technical Assistance II

As nations around the world grapple with the challenges posed by dumping and its detrimental effects on local industries, a simple yet powerful tool for calculating the margin of dumping could be a game-changer for both the Directorate of Trade Defense (DPP) and the Indonesia Anti-Dumping Committee (KADI) within the Ministry of Trade of the Republic of Indonesia.

The margin of dumping is a key determinant of whether a country is, in fact, selling products below their normal value, a vital parameter in anti-dumping investigations. Baskoro Riswiandanu, the Junior Trade Analyst at the DPP, and Laode Muhammad Fachrul, the Head of the Sub-Committee on Injury Investigation at KADI, have described the recently introduced calculation tool as a transformative force for both themselves and their respective agencies.

Although DPP and KADI serve different functions, both Baskoro and Fachrul can utilise the accounting program. For Baskoro and his colleagues at DPP, tasked with defending domestic industries accused of dumping by trading partner countries, the accounting program aids in understanding the procedures for calculating dumping margins. This understanding further allows them to fortify defence arguments for Indonesia's export products during anti-dumping investigations.

"Previously, the Government of Indonesia's defence against anti-dumping investigations has been more focused on the legal side," said Baskoro. "Training in these accounting tools has deepened my knowledge and understanding of dumping margin calculations. This equips us to determine whether foreign trade remedies authorities have accurately calculated the dumping margin on products exported from Indonesia."

Before the advent of this game-changing tool, Fachrul and his colleagues at KADI, who were tasked with initiating anti-dumping investigations against Indonesia's trade partner countries, had to rely on manual calculations, with each investigator using different methodologies. "The beauty of this tool is its simplicity," said Fachrul. "Although its underlying formulas may be complex, its Excel-based format makes it incredibly user-friendly. A robust statistical program would not only be more expensive but would also require a steep learning curve."

The initiative to introduce this revolutionary tool originated from a "Training of Trainers" session for DPP, KADI and KPPI (Indonesian Safeguards Committee) in 2022, facilitated by ARISE+ Indonesia. During this session, one of KADI investigators presented the Margin of Dumping Calculation, which was still reliant on manual methods at the time. It was then that the trainer, Dr. Gustav Brink, ARISE+ Indonesia's International Trade Law Senior Expert, introduced the idea of a simple accounting program capable of rapidly calculating dumping margins.

Recognising the significance of this new calculation tool in supporting the work of DPP and KADI, two training sessions were organised with the support of ARISE+ Indonesia: one for DPP's trade analysts and another for KADI's trade investigators. The DPP's session took place from 30 August to 1 September 2023, while KADI's session was held from 6-8 September 2023.

Dr. Brink, who first developed the accounting tool in 2004, delivered the training. Over the years, he has consistently refined and enhanced the accounting program. With ARISE+ Indonesia's support, the version created for DPP and KADI emerged as the most advanced iteration, meticulously tailored to meet Indonesia's specific needs and requirements.

"This isn't a product you can simply buy off the shelf, nor is it something available from the WTO or a law firm. It's a tool I've developed and honed over the years," stated Dr. Brink.

However, as with every new tool, there's a learning curve. "While the program automates calculations, the investigators and analysts must grasp the mathematical logic to compile the formula for Excel," admits Fachrul. But he remains optimistic, stating, "It just takes practice and habituation."

Dr. Brink is supportive, extending his expertise even beyond the training sessions. "I am thrilled if everyone continues to practice until mastery is achieved. I'd be delighted to address any questions. Mastery of this tool can significantly enhance KADI's future performance," he said.

Natan Kambuno, Director of Trade Defense at the Ministry of Trade, who serves as ARISE+ Indonesia's TAB Coordinator for Trade Remedy, and Donna Gultom, Chairperson of KADI, are ardent advocates of the tool's potential. They acknowledged the new accounting program's benefits in transforming their working methodology and boosting Indonesia's trade defence and investigations. They thus encouraged their team to enthusiastically embrace and actively practice using the tool to enhance Indonesia's future trade remedy measures.

"With this accounting program, we now have a unified tool suitable for everyone, beneficial for both defence and investigation purposes," said Mr Natan. "The accounting program and the skills acquired during the training session will empower the DPP officials to build strong defence arguments on behalf of the Government of Indonesia in all anti-dumping investigations targeting Indonesian export products."

Ms. Donna, with evident passion, added, "With tools such as the Case Management System and this new accounting program facilitated by ARISE+ Indonesia, we're paving the way for a more evolved and efficient working methodology. While the initial learning curve might be challenging, perseverance is crucial. These tools are set to significantly enhance our anti-dumping investigations, ensuring the protection of Indonesia's domestic industry."

Ending on a note of gratitude, both Mr Nathan and Ms Donna said, "Our deepest appreciation goes to ARISE+ Indonesia for their invaluable assistance."

 

^ DPP Team. Front row from right to left Laode Muhammad Fachrul, Donna Gultom, Gustav Brink, Duma Maharani

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