Govt issues decree to limit steel imports<\/p>\n
Adianto P. Simamora, The Jakarta Post, Jakarta<\/p>\n
The Ministry of Industry and Trade has issued a decree to
\nlimit the importation of steel products in a bid to help protect
\nthe local steel industry against mass imports of cheaper
\nproducts.<\/p>\n
Ministerial Decree No.751\/2002, dated Nov. 7, stipulates that
\nonly local steel producers will be allowed to import hot-rolled
\nand cold-rolled coils as raw materials or as supplements for
\nproduction purposes. The imported goods will not be allowed to be
\nsold or transferred to other companies, the decree said.<\/p>\n
The measures are aimed at preventing the importation of
\ncheaper steel into the local market, which has inflicted losses
\non local producers. Local steel producers have long demanded
\nprotection from the government, as the cheaper imports had
\nseverely hurt their businesses.<\/p>\n
The decree said that authorized importers must seek approval
\nfrom the ministry for the amount and the distribution schedule of
\ntheir imports. The decree also stipulates that importers must
\nsubmit monthly reports on imported goods, the failure of which
\nwould result in the revocation of their import licenses.<\/p>\n
The decree came more than a week after the government
\nincreased tariffs on imported steel products to 20 percent for
\nhot-rolled coil and 25 percent for cold-rolled coil.<\/p>\n
The global steel market has also been in trouble for years due
\nto a surplus and a move by the U.S. this year to raise tariffs to
\nprotect its local industry.<\/p>\n
According to one estimate, the world's total steel output in
\n2000 reached 828.5 million tons, compared with a total
\nconsumption of 812 million tons in the same year, resulting in a
\nsurplus of about 16 million tons.<\/p>\n
The situation forced many giant producers to dump their
\nproducts in other markets outside the U.S., including Indonesia.<\/p>\n
Data from state-owned steelmaker PT Krakatau Steel showed that
\nthe United States had raised their tariffs on imported steel to
\n30 percent, Thailand to 25 percent, India to 40 percent and
\nEuropean countries had raised it to between 14 and 26 percent.<\/p>\n
Indonesia imports steel products from Korea, Japan and
\nRussia.<\/p>\n
The country's steel output reaches 2.89 million tons every
\nyear, of which some 2.5 million tons are produced by Krakatau
\nSteel. Total consumption amounts to 3.9 million tons every year.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-issues-decree-to-limit-steel-imports-1447893297",
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