Indonesia fights for fair trade access
It is battling technical trade barriers imposed by India and strict deforestation rules in Europe.
Indonesia has made its case against restrictive trade measures imposed by India and the European Union (EU) during a recent meeting at the World Trade Organization in Geneva, as it battles what it calls unfair trade barriers that threaten its export-driven economy.
A delegation led by Konny Sagala, Director of Standard Implementation Systems and Conformity Assessment at the National Standardization Agency of Indonesia, alongside officials from the Ministry of Trade, Ministry of Foreign Affairs, Ministry of Health, Food and Drug Agency, and its Permanent Mission in Geneva presented a united front in tackling regulatory challenges affecting Indonesia's featured products.
India's certification policy, which includes requirements such as compliance with Indian standards, on-site factory inspections and sample testing in Indian laboratories, poses significant challenges for exporters, particularly due to the uncertain timeframe of India’s scheduling for onsite inspections, Sagala told Gov Media in Jakarta.
Sagala also expressed concerns about the Bureau of Indian Standards' ability to regulate effectively without causing delays in certification.
Affected Indonesian exports include spun yarns and fabrics, plywood and wooden shutters, footwear, and medical textiles.
India has said it is committed to facilitating international trade whilst taking steps to ensure the quality of products, protection of consumers, animal and plant health.
Sagala said that the uncertainty of the timeframe of the certification process is an unnecessary trade barrier and violates WTO provisions, including the agreement on technical barriers to trade.
The Southeast Asian nation also questioned the EU’s deforestation regulations and waste shipment regulation. These measures, whilst framed as environmental safeguards, are discriminatory and inconsistent with WTO principles, Sagala said.
The EU’s deforestation rules rely on data from the EU Forest Observatory that Indonesia says are flawed and misaligned with its own forest monitoring system.
Indonesian commodities affected by the rules are palm oil, wood, coffee, cocoa, rubber, cattle, and their derivative products, Sagala separately told GovMedia in an e-mailed reply to questions.
Similarly, the EU’s waste shipment regulation presents hurdles for exporters seeking to recycle or process waste materials. Indonesia sought clarity on the audit and assessment processes to ensure equitable treatment for its exports. It proposed setting up a bilateral consultation forum with the EU.
While pushing back against trade barriers, Indonesia also faced scrutiny over its own trade policies. WTO members questioned Indonesia’s cosmetic certification system, mandatory halal product requirements, and a draft regulation on plastic raw materials’ compulsory national standards.
WTO members urged Indonesia to remain transparent and allow sufficient time for international feedback on new regulations, in line with WTO norms.
On the sidelines of the WTO meeting, Indonesia engaged in bilateral discussions with key trading partners, including the UK, Australia, Canada, Taiwan, and India. These meetings aimed to resolve disputes and strengthen trade partnerships.
For Indonesia, the Geneva talks reflect a larger struggle to navigate a global trade system that is increasingly shaped by complex environmental and technical regulations. Whilst seeking fair access for its products, Indonesia also faces mounting pressure to harmonize its domestic policies with international standards.
“Trade rules must support sustainable development, not create unnecessary barriers,” Sagala said. “Indonesia will continue to fight for a fair and inclusive global trading system.”
