Govt committee investigates paper dumping

Govt committee investigates paper dumping

The Ministry of Trade and Industry's Anti-Dumping Committee (KADI) has started investigating claims that some paper manufacturers in Asia and Europe are dumping uncoated writing and printing paper in Indonesia.

In a press statement issued Tuesday, KADI chairwoman Halida Miljani said the committee has to investigate this matter, as it is hurting the local pulp and paper industry. The investigation started Monday.

She added that this is KADI's response to a petition filed earlier by the Indonesian Pulp and Paper Association (IPPA).

In January, IPPA asked KADI to investigate the dumping of cheap wood- free paper imports. The paper imports were sourced from South Korea, Finland, Malaysia, India and Japan, it said.

IPPA officials said the cheap imports are hurting the local pulp and paper industry, noting that it will be difficult for local pulp and paper manufacturers to compete with these imports, as they could only sell wood-free paper at US$700-$800 a metric ton, while imported wood-free paper is being sold at $500/ton.

KADI couldn't say when it would complete its investigation, but sources from KADI said the trade ministry might impose an anti-dumping duty to regulate the inflow of cheap imports. -- Dow Jones