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Jakarta Post

Tax incentives may drag Indonesia into trade row with US

  • Mustaqim Adamrah

    THE JAKARTA POST

JAKARTA   /   Fri, October 9 2009   /  01:55 pm

Indonesia is facing dumping and subsidy allegations by the United States for certain coated paper products, with the latter linking them to tax incentives provided under a 2007 regulation. Trade Ministry director for trade security Ernawati confirmed the allegations Thursday and said the Indonesian ambassador in Washington, D.C., had consulted with US government officials about the issue Wednesday local time. "In that meeting, *the Indonesian ambassador* addressed what have become our concerns, asking for explanations for things that remain unclear in their allegation *report*," she said at her office. "We are yet to receive the reports from there." Ernawati said the US government was accusing the Indonesian government of providing some coated paper producers with subsidies through tax incentives made possible under a 2007 Indonesian government regulation for investme...