Can producers association protests anti-dumping move

JAKARTA (JP): Local can producers lodged a protest on Tuesday against the government's recent drive to impose anti-dumping duties of up to 68 percent on the import of tin plates.

Vice chairman of the Association of Indonesian Can Producers (APKKI) Halim Wijaya said the high countervailing duties were unfair because they protected local tin plate manufacturer PT Pelat Timah Nusantara (Latinusa) at the expense of other industries.

Joined by the association's lawyer, Erry Bundjamin, Halim said "the anti-dumping tariff has a flimsy basis".

The high import surcharge would not only hurt can producers but also related downstream industries such as canned food and beverage producers.

"We will have to raise our product price roughly 40 percent if a 68 percent surcharge is imposed."

Last month the government implemented anti-dumping duties of up to 68 percent against tin plates imported from Japan, South Korea, Taiwan and Australia.

The anti-dumping ruling was prompted by a request from Latinusa, which complained that competitors from the four countries sold their products in Indonesia at unfair market prices.

The association's members preferred imported tin plates because Latinusa -- the only tin plate producer in the country -- sold its products not only at high price but also at low quality, Halim said, citing that a canned pineapple customer rejected cans produced by Latinusa due to their inferior quality.

"If we import (tin plates) we receive our delivery in three months, while Latinusa takes six months with an additional one or two months delay to fill and deliver our order."

Halim acknowledged that importing products involved many difficulties due to the complex negotiation issues, shipping administration and the requirement to issue a Letter of Credit.

"If Latinusa could provide products at a reasonable price, standard quality and good service, (there is) no doubt we would buy all our raw material from the company."

Latinusa, the only local tin plate manufacturer, is 95 percent owned by state-owned steel maker PT Krakatau Steel with the remaining 5 percent controlled by Nusamba Foundation, a business group related to former president Soeharto. (02)