JP/12/KPPU
JP/12/KPPU
Flour importers criticize new govt policy: KPPU
JAKARTA (JP): The country's antimonopoly watchdog said on
Thursday that the government's plan to impose antidumping duty on
flour imports may create unfair business competition in the
industry.
Chairman of the Business Competition Supervisory Commission
(KPPU) Mohammad Iqbal said, however, that the committee would
still have to conduct a further evaluation before proposing any
recommendations to the government.
"We will monitor the industry closely for two to three months
to find out whether the reports we have received are valid or
not. After that, we will issue recommendations (to the
government)," Iqbal told The Jakarta Post after a hearing with
House of Representatives Commission V which oversees industry and
trade affairs.
He said that KPPU had received complaints from the country's
flour importers that the new policy may increase the price of
their products, while on the other hand local giant flour
producer PT Bogasari Flour Mills could take advantage of the
policy by selling at a cheaper price.
"This will force local instant noodle and food producers to
purchase floor from Bogasari," Iqbal said.
The government plans to impose the antidumping duty soon
following dumping charges made by the Indonesian Antidumping
Committee (KADI) on flour from Europe, the United Arab Emirates,
and Australia.
KPPU also said that flour importers had complained about the
stringent administrative requirements imposed by the excise and
customs office on the import of flour, while wheat importers like
Bogasari enjoyed more relaxed requirements.
"They repeatedly complain that such time-consuming paperwork
reduces the quality of their flour," Iqbal said.
He said that KPPU was expected to complete its evaluation in
December.
KPPU was established in June last year following the enactment
of the Antimonopoly and Unfair Competition Law No. 5/1999.
The commission has the right to investigate and sanction
businesses that are suspected of unfair practices. (dmr)