KADI starts probe into alleged dumping of polyester

The Jakarta Post, Jakarta

The Indonesian Anti-Dumping Committee (KADI) said on Friday that it was currently conducting an investigation into imported polyester staple fiber products from South Korea, Taiwan and Thailand, which are allegedly being dumped here.

Polyester staple fiber is a raw material used in the textile industry.

"We started the investigation today (Friday) to prove whether or not these imported products have seriously hurt local manufacturers," KADI chairwoman Halida Miljani said.

If the dumping allegation proves to be true, KADI would ask the government to impose an antidumping duty on these products, she said.

Halida said that the investigative measures were taken due to complaints from the Indonesian Synthetic Fiber Makers Association, which claimed it was affected by the cheaper imported products.

Earlier, the association urged KADI to recommend imposing a temporary antidumping duty on the products from the three countries to protect local manufacturers from suffering more losses.

Indonesia is one of the world's 10 largest producers of synthetic fiber with a total capacity of 500,000 tons of polyester staple fiber, 825,000 tons of polyester filament yarn and 30,000 tons of nylon filament yarn.

Since a tariff barrier can no longer be used to protect domestic industries as it goes against the World Trade Organization (WTO) ruling, many countries are using an antidumping instrument as a legal remedy to offset losses.

Since 1996, the committee has handled some 23 dumping cases against several imported products in an effort to protect local producers.

Data from KADI shows that nine alleged dumping cases had been closed as the committee could not find strong evidence to support allegations.