THE POSITION OF THE INDONESIAN TRADE SAFEGUARD COMMITTEE (KPPI) IN PROTECTING DOMESTIC INDUSTRIES FROM IMPORT SURGES

Abstrak

This study aims to examine the institutional position and the effectiveness of the Indonesian Trade Safeguard Committee (KPPI) in performing its mandates, which include conducting investigations, substantiating evidence, and providing recommendations regarding trade safeguard measures. The findings indicate that KPPI operates as an independent body under the auspices of the Ministry of Trade. Nevertheless, its effectiveness is hindered by limitations in authority, institutional dependency on other governmental bodies such as the Ministry of Finance and the Ministry of Trade, and inter-agency sectoral ego. Furthermore, the complexity and length of procedural requirements affect the timeliness and efficiency of safeguard enforcement, including the imposition of import duties or quotas. Although KPPI functions within an established legal framework, persistent challenges such as trade diversion practices and resource constraints—both human and financial—continue to undermine its operational capacity. To address these issues, this research recommends expanding KPPI’s authority, particularly regarding the determination of safeguard duties and import quotas, and establishing an independent trade remedy institution to minimize external intervention and enhance institutional efficiency. Strengthening KPPI's institutional capacity is expected to transform it into an adaptive and strategic economic defense mechanism capable of safeguarding domestic industries and enhancing national competitiveness in the global market.