Industry Minister Agus Gumiwang Kartasasmita. - The Jakarta Post
JAKARTA: The government has softened its rhetoric after threatening to impose anti-dumping tariffs of 200 per cent on imported ceramic products, stating now that the maximum rate will apply only to firms that fail to cooperate with government investigation.
The Industry Ministry’s interim director general for chemical, textile and miscellaneous industries, Reni Yanita, told The Jakarta Post on Wednesday (July 10) that the highest tariff for ceramics imported from China was 199.88 per cent, which would only be imposed on stiff-necked importers in the recently concluded anti-dumping probe.
“If a company willingly filled out the questionnaire [during the investigation], that means it is cooperating.” The assumption was, she added, that “if they were cooperative, they might not be guilty of dumping,” Reni said.
“If they did not fill out the questionnaire, [that means] they’re ready for the highest tariff,” she added.
An importer deemed cooperative would be subject to a lower tariff, Reni said, but refused to specify the amount.
No government official contacted by the Post was willing to disclose how many parties were cooperating or how many were even being investigated.
The policy is not yet in place since it is still awaiting approval from the Industry Ministry, after which it will fall into the lap of the Finance Ministry, which will enact a technical regulation on the import duty.
This multiministerial effort is based on the findings of an investigation on ceramics imports from China conducted by the Indonesian Anti-Dumping Committee (KADI).
KADI head Danang Prastal Danial told the Post on Tuesday that the ceramics dumping investigation had been wrapped up in early July “after one and a half years” and had “received recommendations from the relevant ministries”, leaving it to the Trade Ministry to decide what course of action to take now.
The investigation was initiated following reports filed by the Indonesian Ceramic Industry Association (ASAKI).
Operating under the Trade Ministry’s mandate, KADI concluded that an unspecified number of importers were guilty of ceramics dumping, a frowned-upon practice of selling a good abroad at a lower price than in the domestic market.
Asked whether any decision in the matter would be taken any time soon, Trade Ministry trade policy department head Kasan Muhri told the Post on Wednesday that he could not “divulge any information yet”, because the ministry was “in the process” of deciding what to do.
Punishing import tariffs have been announced not only for ceramics but also textiles, apparel, footwear, electronics and cosmetics.
KADI is investigating whether Chinese exporters are dumping products in Indonesia. Indonesian importers have expressed concern over the planned tariffs, saying they could harm trade ties between Indonesia and China.
Trade Minister Zulkifli Hasan said on June 28 that the measure was aimed at protecting local businesses from an influx of goods from China because of “overcapacity” and “oversupply” in that country after Western markets increased tariffs on imported Chinese products.
US President Joe Biden announced in mid-May that Washington was imposing additional tariffs on a range of Chinese goods, claiming that Beijing was subsidising certain sectors to undercut foreign competitors and producing more than the world could absorb.
China has denied the accusation, saying its manufacturers are simply working efficiently.
Estimated to affect US$18 billion worth of Chinese imports, the US policy covers sectors including electric vehicles (EVs), semiconductors, batteries, critical minerals and medical products.
The European Union followed suit less than a month after Washington revealed its plan, imposing tariffs on EVs from China.
Beijing has asked Brussels to reconsider the policy and is considering imposing tariffs on European agricultural products.
Muhammad Habib, a researcher from the Centre for Strategic and International Studies (CSIS) Jakarta, questioned the government’s argument that its tariff plan was necessitated by the US-China and EU-China trade wars.
“I don’t think Indonesia is perceived as an alternative market by Chinese businesses following the protectionist wave in the West. For certain high-tech and green products like EVs, solar panels and semiconductors, it might be the case,” Habib told the Post on Wednesday.
“For [other products], I think Indonesia was treated as one of [the Chinese firms’] primary markets since the beginning,” he added, blaming Jakarta for moving too slowly and arguing that the dumping practices were “nothing new”.
He slammed Indonesia’s policy in the matter and said the government should above all else resort to communication with Beijing, given that the two countries are bound by multiple trade agreements.
That was not to say that Indonesia had to tolerate China’s dumping practices, but “the ultimate goal is responding with minimum distortion”, Habib said.
He also pointed out that China is a “significant market for our coal, nickel and palm oil”, and imposing sky-high import duties would risk retaliation from Beijing on Indonesia’s main export commodities.
“Just because the US and the EU take such measures does not mean we have to duplicate it at home,” the researcher said. – The Jakarta Post/ANN
