Indonesia Plans To Implement BMAD 200 Percent, INDEF Reminds Ceramic Prices Can Increase

JAKARTA - The Institute for Development of Economics and Finance (INDEF) warns of an increase in local ceramic prices if the government imposes an anti dumping import duty (BMAD) policy of around 100 to 200 percent.

Head of the Center of Industry, Trade and Investment Indef, Andry Satrio Nugroho said that if Indonesia actually enforces a BMAD policy on ceramics from China, it will trigger an estimated inflation or price increase.

Based on data in the field, he continued, the average price of ceramics B1a or water absorption is between 0 to 0.5 percent from China, with a size of 60x60, which is IDR 75,000 to IDR 80,000 per square meter.

With the implementation of BMAD, continued Andry, there will be an increase of around Rp. 150,000 to Rp. 225,000 per square meter.

"It's just a time to multiply the area. If we usually spend (the cost of purchasing ceramics) less than tens of millions, now we have to issue this amount if the product continues to enter Indonesia," he said during a discussion in Jakarta, Tuesday, July 16.

Likewise with the price of local ceramics, Andry said ceramicsters are priced at around IDR 75,000 to IDR 90,000 per square meter in the market. Later, this price will rise in line with the implementation of BMAD.

According to Andry, the increase in ceramics from this price will be below the BMAD of around Rp80,000 to Rp120,000 per square meter.

"We see that this domestic producer will definitely participate in increasing the margin by increasing the selling price. Because the price of ceramic imports will increase sharply, of course, the price of BMAD imposition will be limited," he said.

On the other hand, Andry also said that the implementation of the BMAD policy on Chinese ceramics also had a negative impact. One of them is to bring up a response from the country to products from Indonesia.

"The possibility that will happen is retaliation or retaliation that will be carried out by the Chinese side against products from Indonesia," he said.