Business groupings and the government have forecast an increase in dumping cases to be handled next year amidst nervousness that an influx of low priced imported goods may harm domestic industries.

Indonesian Chamber of Commerce and Industry (Kadin) chairman Mohamad Suleman Hidayat told The Jakarta Post on Monday that a projected influx of low priced imported goods next year was a major concern among Indonesian businesses.

"For sure, the number of dumping cases handled by the KADI (Indonesian Anti-Dumping Committee) will rise next year."

"It is necessary to take anti-dumping measures given the global economic crisis we have these days," said Hidayat.

Analysts have said global manufacturers that used to depend on the world's largest markets -- the United States and Europe -- may instead throw their products at an extremely cheap price to emerging countries, including Indonesia, to help offset their losses due to the slowdown in their traditional markets.

Dumping is a practice whereby a manufacturer exports its products to another country at prices below those charged on the market in its home country or even below home production costs, while anti-dumping measures are measures to counter dumping practices by imposing additional import duties.

KADI chairwoman, Halida Miljani, said her office had been handling more cases since early this year.

"We usually handle only one or two cases annually. But the number has now increased to seven or eight cases this year alone," she said.

"In addition, the KADI has also received more requests for investigation of dumping practices concerning particular products," she added.

Among cases being handled by the KADI are wheat flour imported from Sri Lanka, Turkey and Australia; hot rolled plate imported from China, Taiwan and Malaysia; biaxially oriented polypropylene film imported from Thailand, and nail and wire rod imported from China.

The number of cases, Halida said, might rise next year in line with forecast increasingly common dumping practices.

"We need to take anti-dumping measures to support local industries in facing unfair competition," she said.

Indonesian Employers Association (Apindo) chairman Sofjan Wanandi also forecast the number of dumping cases would jump, especially concerning China, India and Vietnam, that were hit the most by the weakening U.S. market.

"The government should not be afraid that our anti-dumping measures will backfire. We have frequently been accused of dumping by many countries and no measures have been taken to counter those accusations," he said.

JP/Mustaqim Adamrah

Dec 02, 2008

Source: old.thejakartapost.com