Importers grouping opposes safeguard<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Surging ceramic imports in the past five years has prompted the
\nImporters Association of Indonesia (GINSI) to oppose any proposed
\nsafeguard measures for the local ceramic industry, although the
\nimports have jeopardized the local industry's existence.<\/p>\n
\"Safeguards mean that prices will rise and consumers will
\nlose,\" said GINSI chairman Amirudin Saud in a press conference on
\nWednesday. \"We have to fight such a protectionist policy.\"<\/p>\n
The association was responding to the Indonesian Trade
\nSafeguard Committee (KPPI)'s move last month that recommended
\nthat the Ministry of Trade and Ministry of Finance impose an
\nadditional Rp 1,600 (16 U.S. cents) per kilogram as a safeguard
\nmeasure on tableware imports on top of the existing 30 percent
\nimport duty.<\/p>\n
Saud said the 30 percent duty, which was raised from 5 percent
\nat the start of this year, was enough to protect the local
\ndomestic industry from the influx of imports and that additional
\nmeasures would be excessive.<\/p>\n
He asserted that it was the weakness of the domestic companies
\nfor not being able to compete against the imports, which reached
\nmore than 50,000 tons last year and accounted for roughly 64.5
\npercent of ceramics available on the domestic market.<\/p>\n
He said local ceramic tableware companies were losing out to
\nimports, roughly 95 percent of which came from China, due to
\nmismanagement, inefficient operations and low productivity.<\/p>\n
He also questioned the domestic industry performance as a
\nwhole, whose workers are only half as productive as the Chinese.<\/p>\n
\"Increased productivity translates into lower prices,\" said
\nSaud. \"Any protection measures should not be given to the
\nceramics industry, which is inefficient and over protected.\"<\/p>\n
He said the ceramics industry had not improved efficiency
\ndespite the fact that it had benefited from a 40 percent import
\nduty imposed on ceramic tableware for 10 years from 1991 to 2001.<\/p>\n
The KPPI -- a government organization investigating threats to
\nthe domestic industry caused by surging imports -- recommended
\nthe formal safeguard measure, which is a mechanism allowed under
\nthe World Trade Organization (WTO), after concluding that the
\nsurge in tableware imports caused the domestic industry's market
\nshare to drop from 68 percent in 1999 to 35.5 percent in 2004.<\/p>\n
In its report to the WTO, KPPI said the low price of the
\nimports, which were on average 32.48 percent lower than domestic
\nproducts, had led to substantial monetary losses to the local
\ncompanies and significant reduction in people employed in the
\nsector.<\/p>\n
\"There is clear evidence of the causal link between the recent
\ngrowth of imports of the product under investigation and the
\ninjury caused to the domestic industry,\" said the KPPI in its
\nreport, which was filed in May.<\/p>\n
According to the Indonesian Ceramic Industry Association
\n(Asaki), about 10,000 Indonesian workers have lost their jobs as
\na result of the closure of domestic ceramic tableware firms.<\/p>\n
Asaki blamed the cheap imports, which had surged by almost
\nfive-fold from the 11,603 tons imported in 1999, for the
\nclosures. (002)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/importers-grouping-opposes-safeguard-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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