JAKARTA, Indonesia — August 8, 2014 — The Indonesian government will continue focus to reduce dependence on imported of raw materials. Some Indonesian newspapers reported that the ministers under the coordination of the Ministry of Economy are conducting various efforts to address the trade deficit, which the surges of imported products are also potentially hit the national industry.
In early July, the Minister of Trade, Muhammad Lutfi said that he saw some high import products growth. “For that, now we’re together to see how the import of raw materials can be substituted with local products,” said Lutfi.
In the end of July, after the Dialogue Forum with West Java Textile, Garment and Footwear Industry, Minister of Industry, MS Hidayat said that at present nearly 50% of the capital goods and raw materials in the country are imported. And ideally, it needs must be met domestically. “My focus is to strengthen the integration of the industry, until they could reduce imports,” said Hidayat.
The Minister of Industry has also promised to strengthen the upstream of the textile industry to support the development on the downstream sector. “Indeed, the upstream and downstream textile sector should be integrated. Could not just focus on downstream, but upstream of textiles industry must also be strengthened,” said Hidayat.
The Minister’s statement signaled his support for the imposition of antidumping filament yarn that is currently being investigated Indonesian Anti Dumping Committee (KADI). Imposition of anti-dumping duty of three types of filament yarn is expected to reduce imports, so that the country can maintain the balance of trade, especially in the manufacturing sector.
In early July, KADI has released the essential fact as a result of the investigation which found the unfair trade practices (dumping) conducted by the exporters from the People’s Republic of China, South Korea, Malaysia, India, Taiwan and Thailand with a dumping margin at 0 to 17.45 percent.
Committee is also found the material losses that caused injury to the applicant company in which is related injury causation (causal link) to the exporter dumping practices.
The Secretary General of the Indonesian Synthetic Fiber Producers Association (APSyFI), Redma Gita Wirawasta explained that the imposition of Anti Dumping is necessary to create fair competition in domestic market. “Some companies who enjoyed the practice of dumping of cheap goods is definitely going to protest, here the role of government is needed to stop the fraudulent trade practices that had been going on” said Redma.
Redma said that importers will make efforts to divert the issue to the government including the committee is hesitant to make a decision. “The issue that domestic manufacturers cannot produce the type of yarn that is imported only reason without foundation, because in fact we are able to produce all types of yarn within the scope of the HS code which has found its dumping margin by the committee” said Redma.
“The technology used is the same throughout the world, know-how are also at the same level, so any kind of special yarn produced outside we could produce” clear Redma. “But if the price should go import prices that have been proven to dumping, we certainly cannot sell, the sale will continue to lose” he said.
Related with the production capacity, Redma explained that the current utilization level of SDY is 63%, DTY 78%, and POY 73%. “There are still a lot of capacity that cannot be operated, the practice of imports at dumping prices is causing our utilization rates continue to fall, because our market share in the domestic market also fell, and it is already in the scope investigation, so the committee is able to infer the existence of a causal link” he said.
Redma adding that all the complaints by downstream industries through the API are already within the scope of the investigation committee is, so there is nothing that can hinder committee is to implement BMAD.
Posted August 11, 2014
Source: Asosiasi Produsen Synthetic Fiber Indonesia/Indonesian Synthetic Fiber Makers Association
