Indonesia likely to impose antidumping duty on filament yarn to deal with trade deficit

The Indonesian government is making all attempts to lower dependence on imported of raw materials and looking at way to substitute import raw material with local products. In this attempt, the Ministry of Economy in coordination with other minister are putting efforts to deal with the trade deficit which has surged from imported products and also has the potential to hit the national industry.

The Ministry has signaled support for the imposition of antidumping on filament yarn that is currently being investigated by 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.

The Secretary General of the Indonesian Synthetic Fiber Producers Association (APSyFI), Redma Gita Wirawasta has also suggested imposition of Anti Dumping to create fair competition in domestic market. Some companies who have been importing at very low prices are going to protest.

In early July, KADI released the essential fact as a result of the investigation which found the unfair trade practices (dumping) was 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.

According to Minister of Industry, MS Hidayat, present nearly 50% of the capital goods and raw materials in the country are imported. And ideally, it needs must be met domestically. His focus is to strengthen the integration of the industry, until they could reduce imports.

There is also a need 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 for which both downstream and upstream of textiles industry must be strengthened.

As per APSyFI, the issue that domestic manufacturers cannot produce the type of yarn that is imported only reason without foundation, because in fact they are able to produce all types of yarn within the scope of the HS code which has found its dumping margin by the committee.

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, Indonesia can produce.