JAKARTA - Exports of Indonesian soap products are ready to revive in the Madagascar market. This is because the Madagascar Government has finally stopped the investigation of safeguards for Indonesian soap products after being delayed for more than a year due to the Covid-19 pandemic. This decision is contained in the circulation of the Madagascar Notification released on the World Trade Organization (WTO) website on 3 May 2022.
"This good news is believed to be an impetus for Indonesian soap producers to return to the market in Madagascar after being threatened with imposing Safeguard Measures (BMTP)," said Trade Minister Muhammad Lutfi. According to him, soap products from Indonesia are considered to have the potential to disrupt the performance of similar product industries because they have competitive quality with a comprehensive reach in Madagascar.
Previously, the Madagascar Government initiated an investigation into soap product safeguards to all countries, including Indonesia on August 14, 2019. Then on September 14, 2020, the Madagascar Investigation Authority (ANMCC) recommended the application of safeguard measures to soap noodle products from Indonesia with a quota of 6.5 thousand tons per year. Products that exceed the quota will be subject to an additional import duty of 34 percent with a decrease of 2 percent every year until the fourth year.
The Central Statistics Agency (BPS) noted that in the January–March 2022 period, the export value of soap with HS codes 340111, 340119, 340120, and 340130 to Madagascar posted a figure of USD 1.1 million. This value decreased by 46.5 percent compared to the same period the previous year. Meanwhile, in 2021, the value of Indonesian soap exports to Madagascar reached USD 13.4 million. (LM)