JAKARTA – Industry Minister M.S. Hidayat ensured that the government will impose anti dumping import duty on imported polyethylene terephthalate (PET), as the raw material of plastics bottle, yet under compromised implementation.

The Industry Ministry, he said, suggested that the anti dumping import duty (BMAD) number over imported PET is set around 4% within only 6 months, or lower than the recommendation made by Indonesian Anti Dumping Committee (KADI).

Currently, said the Minister, KADI has issued the recommendation related to the investigation on dumping allegation of PET product in domestic market. According to him, KADI has worked professionally that the committee’s recommendation could not just be ignored by rejecting the imposition of BMAD.

The anti dumping institution has issued recommendation of BMAD over imported PET. The BMAD number suggested by KADI is in the range of 0%-18.8%. Meanwhile, the 0% number is suggested since the producers which is related to the dumping has raised the selling price to Indonesia at 12.2% (price undertaking).

The BMAD final implementation will be decided by Fiscal Policy Agency (FPA) at the Finance Ministry upon receiving the recommendation from Trade Ministry.

“It will be not wise for us as the government institution to ignore their recommendation. The BMAD might be imposed to the importers. We suggest the BMAD number at 4% within 6 months,” he said, Wednesday (2/12).

Further the Minister said the government has actually made decision. “Yet, it will be officially announced in the near future,” he said.

The Food and Beverage Association Spoke person Franky Sibarani said the BMAD implementation for imported PET would spur the increase of industrial product price with PET, including the food and beverage product which uses PET as plastic packaging raw materials.

Every 1% of BMAD PET which is imposed could spur the increase of food and beverage product selling price of 1.08%, at minimum.

Reduce the Demand

Further he said, the study on beverage industry showed that every 1% of price increase will decrease demand of 0.19%. Nationally, the food and beverage industry will lose its market of up to IDR4.5 trillion per year.

Previously, a number of local PET producers i.e. PT Indorama Synthetic Tbk., PT Indorama Ventures Indonesia, and PT Polypet Karyapersada filed petition of anti dumping on imported PET product to KADI. The three petitioners belong to Indorama group.

Meanwhile, the HS (harmonized system) of the PET products are 3907.60.10.00, 3907.60.20.00, and 3907.60.90.00 which are derived from Korean Republic, People’s Republic of China, Singapore, and Taiwan.

The Food and Beverage Industry Association Forum has submitted an application to the related government over KADI investigation which has not fulfilled the provision of the prevailed regulation in Indonesia, as well as requested the government to prioritize the national interest by not implementing BMAD over imported PET.

However, if BMAD of PET product is imposed then the small as well as the medium scale of food and beverage industry (IKM) may think to import empty bottle. This is because the production cost in domestic is increasing while the entrepreneurs’ loss could not cover the production cost.

Chairman of the Indonesian Bottled Water Manufacturers Association (Aspadin) Hendro Baroeno said it is very possible that the IKM could import empty bottle whenever the BMAD on PET products is implemented.

“The import of empty bottle will not be imposed by BMAD. We are ascertained that the government has such dilemma,” he said to Bisnis Indonesia.

According to him, the next possibility is the IKM practitioners could become the traders. This means the business players would also import food and beverage products. Whenever the businessmen think that the production cost soars then the only option to make is becoming the traders.

“There are 189 companies in Aspadin which include only 20 companies in large industry. The remaining number could be the traders. This is highly threatening the local industry existence,” he said.

In the near future, the association will meet the Business Competition Supervisory Committee (KPPU) to ask the progress of the petition filed by three Indorama companies.

Source: bisnis.com