Antidumping committee looks into imports<\/p>\n
JAKARTA (JP): The Indonesian Antidumping Committee (KADI),
\nwhich is looking into allegations of dumping practices by wheat
\nflour producers from Europe, Australia and the United Arab
\nEmirates, is expected to issue a ruling in three months.<\/p>\n
KADI secretary Muchtar said if the claims were proven, the
\ngovernment would slap countervailing duties on imports from these
\ncountries, Antara reported on Friday.<\/p>\n
The size of duty, currently set at zero, will equal the
\ndifference between the domestic price and the export price of
\nflour in the country of origin.<\/p>\n
\"It will be set higher if foreign companies do not cooperate
\nwith the investigation,\" Muchtar said.<\/p>\n
According to Franciscus Welirang, director of PT ISM Bogasari
\nFlour Mills, Australian producers sell their wheat flour at
\nUS$277 per metric ton on their domestic market and at $179 for
\nexport.<\/p>\n
Belgians sell theirs at $194 at home and $156 for exports, the
\nFrench sell theirs for $192 at home against $156 for export,
\nGermans at $197 on the domestic market and $147 for export. UAE
\nproducers sell theirs at $230 domestically and at $169 for
\nexport.<\/p>\n
\"Producers in Europe, Australia and the United Arab Emirates
\nsell their wheat flour to Indonesia at prices much lower than
\ntheir domestic prices,\" Franciscus said.<\/p>\n
Indonesia's wheat flour industry is dominated by Bogasari with
\na production capacity of 3.6 million metric tons a year from its
\ntwo mills in Jakarta and Surabaya, East Java.<\/p>\n
Other producers are PT Panganmas Inti Persada Flour Mills in
\nCilacap, Central Java, with 300,000 tons a year, PT Berdikari
\nSari Utama Flour Mills in Makassar, South Sulawesi, with 400,000
\ntons and PT Sriboga Ratu Raya Flour Mills in Semarang, Central
\nJava, with 400,000 tons.<\/p>\n
Indonesia relies on imports to meet its wheat flour demand.<\/p>\n
Franciscus said that since the government deregulated the
\ndomestic wheat flour market by setting a zero import duty in
\n1998, importers' market share rose steadily from 1 percent in the
\nthird quarter of 1998 to 16 percent in the third quarter of last
\nyear.<\/p>\n
Monthly imports grew from 3,415 tons in October 1998, to a
\npeak of 58,097 tons in September, before falling to 36,859 tons
\nin October.<\/p>\n
He pointed out that Indonesia's Southeast Asian neighbors
\nrestrict imports of wheat flour. Vietnam and Thailand impose a 25
\npercent import duty, the Philippines impose 10 percent and
\nMalaysia has a tight control over its market.<\/p>\n
Franciscus said Bogasari would able to face the competition,
\nbut this was not the case with smaller scale businesses.<\/p>\n
\"We are not afraid of the competition, but the competition has
\nto be fair,\" he said.<\/p>\n
Alwin Arifin of Sriboga said dumping practices could force
\nsmaller producers to shut down and create unemployment. They
\nwould also have difficulty settling their debts, he added.<\/p>\n
KADI announced last week that it had found strong indications
\nof dumping practices and was now looking into the matter.<\/p>\n
The committee has sent questionnaires to eight companies from
\nthe European Union, Australia and the United Arab Emirates and to
\n12 Indonesian importers as part of the investigation.<\/p>\n
Franciscus and Alwin were joined in the Friday news conference
\nby Agus Irawan, director of Panganmas, and Haryono Mardi,
\ndirector of Berdikari. (10)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/antidumping-committee-looks-into-imports-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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