TEMPO Interactive, Jakarta:The national steel industry is worried that a delay in steel import verifications will endanger the operations of national steel plants, leading to many layoffs.

Indonesian Iron and Steel Industry Association deputy chief, Irvan Kamal said upstream and downstream steel industry have been facing operational difficulties for the past 11 months. “Since the global economic crisis, without any support, most downstream steel companies have experienced financial problems. Thousands of workers have been laid off,” Irvan said in a short text message.

As previously reported, the government again postponed the procedures for steel import verifications, which should have been effective on June 1. Trade Minister Mari Elka Pangestu said her department has not issued the Trade Minister Regulation on Steel Import Verification. “I was mistaken; there is no deadline on the issuance of this regulation. The decree is not yet completed,” she said. (Koran Tempo, June 6)

According to Irvan, steel industries in Asia are vying to send their iron and steel products to potential countries like Indonesia. Steel industry in Asia, Irvan said, is giving a 25 percent discount on iron and steel purchases, while China is giving a 13 percent rebate on exported steel.

A number of countries have taken security measures to anticipate imported products. Vietnam has increased their duties while Russia is implementing anti-dumping taxes. “The National Steel Association has conveyed this problem to the Metal Directorate General and the Industry Minister already three months ago,” Irvan said.

Metal and Textile Industry director-general Anshari Bukhari yesterday said the Trade Department was reviewing its related ministerial regulation.

NIEKE INDRIETTA

Tuesday, 09 June, 2009 | 19:44 WIB

Source: www.tempointeractive.com