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)