This Country’s Products Make Indonesian Entrepreneurs Trembling

Jakarta, CNBC IndonesiaThe classic problem that afflicts the domestic steel industry keeps repeating itself. Steel imports from China re-entered and flooded the market.

Steel imports in semester I-2021 reached 5.36 billion USD, an increase of 51.18% and ranked second for imported commodities compared to 2020 at 3.55 billion USD. Based on data from the Central Statistics Agency, in the second half, imports from China reached the highest point in December 2020, reaching 166%.

This makes the iron and steel industry players hot, they ask the government to be more serious about protecting the domestic industry from imported products. Unfortunately, various instruments of protection from unfair trade proposed by national steel producers have not yet received approval from the Government.

“Application for extension and application of BMAD for products Cold Rolled Coil/Sheet, Hot Rolled Coil, Wire Rod, Cold Rolled Coil Stainless Steel, BJLAS and extension safeguard The approval for the I & H Section has not yet been approved,” said Silmy Karim, Chairman of the National Iron and Steel Industry Association (IISIA), in an official statement, Thursday (12/8/21).

Globally, steel production from the 64 largest steel producing countries in the first semester of 2021 increased significantly by 14% compared to the same period in 2020 to 1.0 billion tons.

This has the potential to eat up the Indonesian market, which has been seen with the volume of Indonesian steel imports amounting to 5.5 million tons and an increase of 1.1 million tons to 6.6 million tons in the first semester of 2021.

“It is feared that the increase in the volume of iron and steel imports will continue throughout 2021 so that the Government is expected to take quick steps as an effort to anticipate the possible negative impact on the national industry and with the support of Government policies, it will encourage the growth and performance of the national steel industry to be better,” he said. President Director of PT Krakatau Steel Tbk.

Business actors ask the government to act immediately, based on data from the World Trade Organization (WTO, 2020), Indonesia has not used many trade remedies instruments to protect domestic industries.

Specifically for iron and steel products, Indonesia has only applied 43 cases of trade remedies, which is still very far from the US (353), European Union (149), Canada (146), Australia (80), India (69) and even Thailand (52).

“The trade remedies policy, in addition to providing protection for the national steel industry, also has a positive impact on the national economy as a whole, according to the latest LPEM University of Indonesia study which states that the imposition of BMAD tariffs and safeguards on imports of steel products can increase national GDP by 0.15% or equivalent to Rp 2.3 trillion and improve the national trade balance to Rp 5.6 trillion,” he said.

For example, Thailand has announced a definitive anti-dumping final decision for imports of Aluminum Zinc Plated Steel (BjLAS) originating from China and South Korea for a period of 5 years.

The Malaysian government has also imposed Anti-Dumping Duties (BMAD) on imports of cold rolled stainless steel in coils, sheets or other forms originating or exported from Indonesia and Vietnam.

Vietnam’s Ministry of Industry and Trade has issued Resolution No. 1283/QD-BCT in April 2021 which released the conclusion of the final anti-dumping review for imports of color-coated steel sheet originating from the People’s Republic of China and South Korea and also imposed a temporary anti-dumping tariff of 10.2 percent on H-profile steel products. imported from Malaysia in early April 2021.

In addition, the Gulf Cooperation Council’s Permanent Committee has recommended the imposition of definitive safeguard duties for three years on various steel products. The United States, which has implemented a steel import tax provision of 25%, is also still protecting the domestic steel industry through an anti-dumping policy for prestressed concrete rolled steel wire products from various countries.

“The imposition of BMAD can be an effective effort to protect the domestic steel market as other countries are actively implementing it,” added Silmy.

[Gambas:Video CNBC]

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