Committee to verify dumping claims

Committee to verify dumping claims

JAKARTA (JP): The new anti-dumping committee is to announce
next month the results of its investigation into dumping claims
by Indonesian polyester fiber producers against South Korean and
Taiwanese imports.

The Ministry of Industry and Trade's Director for Textile
Industries, Sakri Widhianto, said the claims have been submitted
to the committee and are being examined for their validity.

Sakri was quoted yesterday by Bisnis Indonesia daily as saying
that the team would release the results of its investigation in
August, almost two months after the claims were submitted.

Early last month, the Indonesian Synthetic Fiber Producers
Association asked the government to impose a 40 percent
provisional anti-dumping duty on polyester fiber imported from
South Korea and Taiwan.

According to the association, the imports are sold in
Indonesia at US$1 a kilogram, lower than the price of domestic
polyester fibers which is now $1.10 a kilogram. The domestic
price has dropped from $1.40 per kilogram in January because of
the cheap imports.

Prices in South Korea and Japan are still $1.40 a kilogram.

The association said the alleged dumping practices have forced
local producers to sell at prices significantly below their
production costs of $1.30 a kilogram.

In January, Indonesia imported 43.9 million kilograms of
natural fibre worth $90 million, while synthetic polyester fiber
imports reached 1.14 million kilograms, valued at $2.08 million.

Minister of Industry and Trade Tunky Ariwibowo said last week
that the establishment of the Indonesian anti-dumping committee
complied with World Trade Organization (WTO) rules.

As the WTO guarantees fair trade, Tunky said, Indonesia will
always comply with WTO provisions, including those governing
unfair trade practices such as dumping.

He said the anti-dumping committee opened last month with the
appointment of members from the Ministry of Industry and Trade
and the Ministry of Finance.

The committee, assigned to counter unfair trade practices by
foreign entities, is now handling dumping allegations on imported
polyester fiber and steel products, Tunky said.

He said that business people and legal experts would also be
on the committee. (pwn)