Govt urged to protect tableware industry<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
The Indonesian Trade Safeguard Committee (KPPI) announced on
\nSaturday that it had recommended to the government that it take
\nprotectionist measures for the local ceramic tableware industry
\nthrough the imposition of additional tariffs over the next three
\nyears on imports.<\/p>\n
The Committee has recommended that the government place an
\nadditional import duty of Rp 1,600 (17 U.S. cents) per kilogram
\non imports of the products in the first year and gradually reduce
\nthis to Rp 1,400 and Rp 1,200 in the second and third year
\nrespectively.<\/p>\n
The so-called \"safeguard\" tariff wall should be imposed on
\nimports from China, Hong Kong, South Korea, Singapore, Japan,
\nTaiwan, Germany, Italy, the United Kingdom, the United States,
\nFrance and Australia, the committee recommends.<\/p>\n
It has excluded ceramic tableware exports from India, Malaysia
\nand Thailand on the basis that they are developing countries
\nwhose exports are \"harmless\" to the country.<\/p>\n
KPPI chairman Ridwan Kurnaen said the committee forwarded the
\nrecommendation to Minister of Trade Mari E. Pangestu last week.<\/p>\n
\"The Ministry of Trade and Ministry of Finance will have the
\nfinal say. We have done our job in providing recommendations
\nbased on our investigation,\" Ridwan said.<\/p>\n
The KPPI agreed in October to investigate whether damage had
\nbeen inflicted on the local industry by surging imports of
\nceramic ware in response to complaints from petitioners ceramic
\ntableware manufacturers PT Lucky Indah Keramik and PT Queen
\nSetyabudhi Ceramics -- whose combined production accounts for
\nabout 55 percent of national output.<\/p>\n
The committee found that the commodity imports surged by
\nalmost three and a half times from 11,603 tons in 1999 to 40,018
\ntons in 2003.<\/p>\n
The surging imports boosted the imported products' share of
\nthe domestic market from 32 percent in 1999 to 61 percent in
\n2003, overwhelming local ceramic tableware sales.<\/p>\n
After evaluating trends in the local industry as regards
\nsales, profits and losses, market share, production, capacity
\nutilization, wages and employment, the committee concluded that
\nthe imports had caused serious injury to the industry.<\/p>\n
\"In 2002, total sales started to drop, although profits have
\nbeen actually declining since 1999, while the biggest loss was
\nsuffered in 2003. The deteriorating performance is a result of a
\nsurge in the import of cheaper goods compared to local products.\"<\/p>\n
\"Such a situation will result in a reduction in capacity
\nutilization and eventually large-scale lay-offs,\" the
\nannouncement said.<\/p>\n
Indonesian Ceramic Industry Association (Asaki) foreign
\naffairs director, Indra Kangean, said the industry used to
\ndirectly employ 20,000 workers, but now only employed 10,000.<\/p>\n
Under WTO rules, the government can impose a provisional
\nmeasure on an imported product for a maximum of 200 days after
\nthe country's safeguard committee launches an official
\ninvestigation.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-urged-to-protect-tableware-industry-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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