Indonesian polyethylene exports to Australia halted

Indonesian polyethylene exports to Australia halted

JAKARTA (JP): Indonesian polyethylene producers have stopped
their exports to Australia following the country's decision to
impose a 20 percent surcharge on their products.

The secretary-general of the Indonesian Association Plastic
Raw Material Producers, Budi Susanto, said on Friday that with a
20 percent surcharge, it was almost impossible for Indonesian
producers to compete in the Australian market.

"The producers have given up. The antidumping tariff is
illogical," he was quoted by Bisnis Indonesia daily as saying.

Last year, Australia imposed a 20 percent surcharge on imports
of polyethylene made by PT Chandra Asri and PT Peni after the
Australian producers complained that the Indonesian companies
dumped their products in the neighboring country.

At present, only PT Chandra Asri's polyethylene products are
subject to the 20 percent import duty surcharge.

Although the antidumping tariff against PT Peni has been
lifted, it is still unable to sell its products to Australia
because of the prices set by the Australian government, Budi
said.

"The prices are still too high for Peni to compete with
Australian polyethylene," he said, without providing any figures.

Polyethylene exports to Australia reach about 60 tons a year,
or about 30 percent of the country's total polyethylene exports.

However, he said that Indonesia would still be able to meet
this year's export target of US$300 million, despite the halt of
exports to Australia.

The producers are shifting their exports to China and India to
anticipate the more open import policies, he said.

"If China joins the World Trade Organization, its market would
be open to us," he said, adding that China's current import
policy was less stringent than India's.

At present, India's import duty for polyethylene hovers
between 40 percent and 60 percent, he added.(05)