Shoemakers seeks duties on Chinese imports

JAKARTA (JP): The Indonesian Footwear Association (Aprisindo) urged the government on Wednesday to impose countervailing duties on imports of Chinese footwear, suspecting dumping practices behind their cheap prices.

Aprisindo secretary general Djimanto said the association had sent a letter earlier this month to the Indonesian Antidumping Committee (KADI) requesting the countervailing duties.

Djimanto said the association was awaiting KADI's investigation into the matter before suggesting the amount of duties to be imposed.

"Currently many Chinese shoes are imported through Europe and the United States at prices 25 percent lower than ours," Djimanto told reporters on the sidelines of a hearing with the House of Representative's Commission V, which oversees trade and industrial affairs.

Aprisindo has said the government runs the danger of facing surging unemployment in the footwear industry, if it failed to take stern action against the influx of Chinese imports.

It said between 5,000 and 6,000 workers could be laid off every month, with one dismissal for every reduction of three pairs of shoes or five pairs of sandals.

According to Aprisindo, the industry currently employs some 347,000 workers growing from 300,000 workers last year.

Cheap Chinese products have flooded the domestic market since late last year and have since threatened various local industries, including the footwear industry, the electronics industry and manufacturers of farm machinery.

Minister of Industry and Trade Luhut Pandjaitan said on Tuesday that his ministry would seek ways of curbing the importation of Chinese products.

He suspected either smuggling activities or unfair business practices behind the trend, but added that any measures against Chinese exporters must not disrupt bilateral relations.

Djimanto further said that this year's shoe exports might fail to meet the target of US$2 billion because of a worsening investment climate.

He said last year's exports reached $1.7 billion up from $1.2 billion in 1998. (bkm)