Polymer makers battle for tariff increases<\/p>\n
JAKARTA (CNI): Indonesian polymer producers are battling for
\nan increase in tariffs and a switch to the dual tariff system
\nused by other ASEAN countries.<\/p>\n
But Senior industry representatives failed in a recent meeting
\nwith Indonesia's Minister of Industry and Trade to persuade the
\nofficial to support their call for greater trade protection, CNI,
\na newswire specializing in chemical industries, reported on
\nFriday.<\/p>\n
In 1996, Indonesian polymer tariffs stood at 40 percent. They
\nwere reduced to 20 percent in 1997 to 15 percent in 1999 and in
\nJanuary of this year were lowered to 10 percent. Under the Asean
\nFree Trade Area (AFTA) agreement, members of ASEAN are committed
\nto lowering import tariffs for all goods to 5 percent by 2003.<\/p>\n
Indonesia has yet to announce its schedule for further
\nreducing polymer tariffs.<\/p>\n
Budi Susanto, secretary general of the Plastic Raw Material
\nProducers' Association, said that Indonesia's petrochemical
\nindustry is much more liberated than its neighbors while its
\neconomy is in a far worse state than fellow ASEAN countries such
\nas Thailand and Malaysia. He added that not only are tariffs are
\nhigher in those other ASEAN countries, but also a dual tariff
\nsystem is employed.<\/p>\n
\"In Thailand, polymers imported from Afta are subject to 15
\npercent duties, while those from Most Favored Nation (MFN)
\ncountries are levied 20 percent tariffs,\" he said.<\/p>\n
Susanto said that in the case of Malaysia, imports from Afta
\ncarry 20 percent duties and MFN imports 30 percent. In Indonesia,
\nimports from both Afta and MFN carry the 10 percent duties.<\/p>\n
Susanto blamed Indonesia's ''unfair'' tariff policy for what
\nhe described as the country's huge volume of imported polymers.
\nHowever, the sharp depreciation of the rupiah during the last few
\nweeks has made polymer imports much harder to afford for
\nconverters.<\/p>",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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