APSYFI: A Number Of Companies Are Threatened With Canceled Investments Because BMAD Has Not Been Implemented

JAKARTA - The Minister of Trade (Mendag) Budi Santoso refused to follow up on the recommendations of the Indonesian Anti-Dumping Committee (KADI) regarding the imposition of Anti-damping Import Duty (BMAD) for importing certain synthetic filaments from China.

The Association of Indonesian Filament Serat & Benang Producers (APSyFI) also expressed the risk of the government's decision.

"A number of companies are threatened with cancellation of investment due to baseless rejection on the recommendation of KADI," said APSYFI Secretary General Farhan Aqil Syauqi in a written statement received by VOI, Friday, June 20.

Based on APSYFI data, until now there are two polyester yarn manufacturers that are closed, namely PT Sulawandafin and PT Polychem Indonesia.

Meanwhile, there are also two other companies that have partially stopped their production activities. "These producers were forced to stop because they could not compete with imported goods from China," said Farhan.

Farhan assessed that the government only cares about the downstream industry. However, according to him, the government is not indifferent to investments in petrochemical mills that produce raw materials for polyester threads such as paraxylene and terefthalate acid.

It is known that the reason the Trade Minister Budi Santoso did not follow up on the recommendation for the imposition of import duties was due to the consideration of the supply of synthetic filament yarn products that had not been able to meet the needs of the domestic industry.

Responding to this reason, Farhan asked the government to open data on the increase in import volume proposed by KADI from the Central Statistics Agency (BPS). According to BPS data, there has been an increase in import volume of up to 200 percent in the last six years.

In addition, Farhan thinks that the KADI recommendation also proves the dumping practice carried out by more than 38 Chinese companies. "The entire corporation has a varying dumping margin, which is in the range of 42 to 45 percent," he said.

Even if we want to open the import tap, Farhan asks the government to also open data on import quotas of polyester filamentary yarn. "We are ready to stop production if imports exceed domestic capacity," he said.

Previously, an investigation into the alleged dumping practice of the product was carried out by KADI since September 12, 2023, at the request of the Indonesian Filament Filament Filament and Filament Manufacturers Association (APSyFI) representing PT Asia Pacific Fibers Tbk and PT Indorama Synthetics Tbk.

The investigated product includes certain synthetic filamentary threads with classification of HS 5402.33.10; 5402.33.90; 5402.46.10; and 5402.46.90 in the 2022 Indonesian Customs Tariff Book (BTKI). The product consists of two types, namely partially oriented yarn (POY) and drawn textured yarn (DTY).

Taking into account the condition of the national textile and textile product (TPT) industry as a whole as well as input from relevant stakeholders, the Minister of Trade Budi Santoso also decided not to further process the recommendations of the Indonesian Anti-damping Committee (KADI) regarding the imposition of Anti-damping Import Duty (BMAD) for imports of certain synthetic filament threads from China.

"This decision was taken into account the condition of the national TPT industry, especially the supply of certain synthetic filamentary yarn to the domestic market which is still limited," he said in an official statement, Thursday, June 19.