Antidumping body investigates steel pipe imports
JAKARTA (JP): The Indonesian Anti-Dumping Committee (KADI) is investigating steel pipe imports from Japan, China, South Korea and Singapore, following charges that the pipes were sold through dumping practices.
The move was taken in response to a petition filed by four local steel pipe producers -- PT Bakrie Pipe Industries, PT South East Asia Pipe Industries, PT KHI Pipe Industries and PT Bumi Kaya Steel Industries.
"Based on an assessment of the petition, KADI has found strong indications that steel pipe imports with dumping prices have led to losses for local manufacturers of similar products," the committee said in a decree issued on Sept. 13, 1999, a copy of which was made available on Tuesday to The Jakarta Post.
"KADI has decided to investigate the steel imports from the four countries, starting from the issuance of this decree," the committee said in the decree signed by secretary Muchtar.
The Association of Indonesian Steel Pipe Manufacturers welcomed the committee's decision.
"We hope the committee will complete the investigation soon," association chairman Warasdimulya told The Post.
The association earlier complained that its members could not compete with steel producers from the four countries on the domestic market, because they carried out unfair dumping practices.
The association called on the government to slap antidumping fees on steel pipe imports from the four countries to save local manufacturers from bankruptcy.
It said the country's steel industry had been forced to cut its output to 200,000 tons per year, from 1.5 million tons per year, due to reduced demand resulting from the economic crisis.
The association said dumping practices carried out by steel pipe producers from the four countries had aggravated the financial difficulties of local steel producers.
The committee did not specify in its decree the names of steel producers to be investigated.
But the association has accused the Japanese firm Marubeni of dumping practices to win the tender to supply steel pipe for the natural gas pipeline project in the South China Sea.
The 560-kilometer underwater pipeline is being developed to transmit natural gas from the area west of Natuna Island to Singapore.
The tender for the pipeline's construction was won by PT McDermott Indonesia, a subsidiary of American construction firm J Ray McDermott SA.
The association said it had been informed by the Indonesian trade attache in Tokyo that the selling price of about US$540 set by Marubeni for McDermott was about half the selling price set by the company in its home country. (jsk)