TEMPO Interactive, Jakarta:The Trade Minister is cooperating with the European Union to clear issues on bicycle product circumvention. “There are assumptions that bicycles from China are being exported to Europe through Indonesia,” said Ernawati, the Trade Ministry’s Trade Security director, in Jakarta yesterday.
Circumvention is the imposition of one-sided additional duties on exported products. In the case of Indonesia’s bicycle exports, one of the indications reinforcing the circumvention charges is the alleged transfer of the exported goods from one country to another.
The allegation emerged because Europe has imposed anti-dumping duties against China-made bicycles. Meanwhile, bicycles exported from Indonesia was judged to be excessive. “To clarify this issue, we will ask for data from the Custom and Excise Directorate-General,” Erna said.
However, Peter Mulyadi, Promotion Manager of PT Insera Sena, Polygon bicycle producer, has not heard of this issue. According to Peter, exports to Europe have not been affected. So far, from 500.000 units produced per year, 70 percent are exported.
From that amount, 80 percent are exported to European countries, like Germany, Denmark, Austria, and Belgium. If there are circumvention charges, Peter said, certainly it is not done through his company because Polygon had agreed directly with the prospective buyers.
Therefore, the buyers already understand that the exported goods are made in Indonesia. Moreover, Polygon factory is only located in Indonesia, so there is no export transfer from China through Indonesia. Even, with the increasing local demand, Polygon plans to reduce exports by up to 50 percent.
Next year, production is estimated to be 3,5 million, said Prihadi, the Indonesian Bicycles Industry Association Chairman.
EKA UTAMI APRILIA