The Indonesian government has imposed anti-dumping duties on steel imports from 5 countries, including Taiwan, to offset material losses to local industries. Astera Primanto, head of government policy at the Treasury Department, said additional import duties would be levied on cold rolled steel coils and sheets imported from China, Japan, South Korea, Taiwan and Vietnam.
The duties will be valid for 3 years. Mr Primanto said that "the finance minister signed the decree on March 19th and it will be implemented shortly." The Ministry of Commerce has created an anti-dumping commission that will regulate duties. The Commission decided that anti-dumping duties will range from 5.9% to 55.6%. The highest level of additional responsibilities will be imposed on Japanese companies such as Nippon Steel Corporation and Sumitomo Metal Industries Ltd at 55.6%. Minimum fees will be proposed for Taiwan's Synn Industrial. Since this manufacturer sells its products abroad at prices lower than in their domestic markets or lower than their cost, and for him duties will be 5.9%.
Members of the WTO have the right to levy anti-dumping duties, which are in addition to regular import tariffs in an attempt to compensate for the material damage to local industries caused by the appearance of imported products on the domestic market. At the request of Indonesia's largest steelmaker, Krakatau Steel, an investigation has been launched into incurring significant losses from unfair competition from steel importers selling products at lower prices in the local market. Based on its research, the panel found compelling evidence that the import of steel caused significant harm to the applicant.
Mr Bachrul Chairi, Chairman of KADI, clarified that he considers it his duty to adequately take into account the interests of the local industry. He also said: “We have given sufficient protection to the domestic industry by creating a platform for fair competition.”
