Local electric part producers accuse China of dumping<\/p>\n
JAKARTA (JP): The Association of Indonesian Electric Equipment
\nManufacturers accused China yesterday of dumping its electric
\nparts in Indonesia.<\/p>\n
The association's chairman, Januar Muin, said dumping was an
\nintentional Chinese strategy to win the market.<\/p>\n
The practice has caused great losses to local producers
\nbecause most of their products can no longer compete with those
\nfrom China, which are generally sold here at very low price
\nlevels.<\/p>\n
\"Most local producers have also lost out in the tender for the
\nsupply of electric equipment to state-owned PT Telkom and PLN due
\nto the lower prices offered by the Chinese bidders,\" he said.<\/p>\n
He said that electricity and telephone cables originating from
\nChina, for example, are sold here 25 percent cheaper than those
\nmanufactured locally.<\/p>\n
\"The prices of the Chinese products are set below their
\nproduction costs and that's why it is impossible for us to
\ncompete against them,\" Januar said.<\/p>\n
He said, however, that the association could not formally
\nsubmit its dumping charge to the Chinese authorities due to the
\nabsence of an anti-dumping law in Indonesia.<\/p>\n
Januar said that the organization also would not bring the
\ndumping case to the international arbitrage agency but instead
\nreport the matter to Indonesia's Directorate General for Excise
\nand Duty.<\/p>\n
Reporting the dumping charge to the local excise and duty
\noffice will not be effective to deal with the dumped products, he
\nacknowledged.<\/p>\n
\"There is no response so far, but we are determined to report
\nthe case to the government in order to protect the local electric
\nequipment industry,\" he said.<\/p>\n
Challenge<\/p>\n
Januar said that the dumping practice is one of the challenges
\nthat local electrical equipment producers have to face in the
\ncoming years, in addition to the requirement to meet the quality
\nmanagement standardizations such as the widely used ISO-9000.<\/p>\n
He said that beginning next year, all producers of electric
\nequipment should have the ISO-9000 certification to be able take
\npart in tenders for the supply of electric equipment to both
\nTelkom, the state-owned telecommunication firm, and PLN, the
\nstate-owned electricity company.<\/p>\n
Januar said that the association's members mostly produce
\ncables with a capacity of below 500 KV and, besides selling the
\nproducts to PLN and Telkom, also market them to the United
\nStates, Europe, Japan and several Asian countries.<\/p>\n
The value of Indonesia's electric equipment exports rose by 42
\npercent to US$596 million last year from around $418.3 million in
\n1993.(hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/local-electric-part-producers-accuse-china-of-dumping-1447893297",
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"sponsor": "Okusi Associates",
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