Ministry Of Trade Rejects Recommendation For Imposition Of BMAD Imports Of Synthetic Filaments From China

Minister of Trade Budi Santoso (Photo: Antara)

JAKARTA - The Ministry of Trade (Kemendag) has decided not to further process the recommendations of the Indonesian Anti-Dumping Committee (KADI) regarding the imposition of Anti-Dumping Import Duty (BMAD) on the import of certain synthetic filaments from China.

Trade Minister Budi Santoso said this decision was taken into account the condition of the national textile and textile product (TPT) industry as a whole, as well as input from relevant stakeholders.

"This decision was taken taking 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.

Moreover, continued Budi, the national production capacity has not been able to meet the needs of the domestic user industry.

"Most manufacturers of certain synthetic filamentary threads produce for their own use," explained Budi.

For your information, previously the investigation into the alleged dumping practice of the product was carried out by KADI since 12 September 2023, at the request of the Indonesian Filament Filament Filament Filament Filament (APSyFI) Producers Association 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). This product consists of two types, namely partially oriented yarn (POY) and drawn textured yarn (DTY).

Another consideration, continued Budi, is that the upstream sector of the TPT industry is currently subject to trade remedies, such as Safeguard Measure Import Duty (BMTP) through the Minister of Finance Regulation (PMK) Number 46 of 2023.

In addition, BMAD for staple fiber polyester products from India, China, and Taiwan is based on PMK No. 176 of 2022. If BMAD on certain synthetic filamentary threads remains in effect, it will increase production costs and reduce the competitiveness of the downstream sector.

"The TPT industry sector, both upstream and downstream, is facing pressure due to geoeconomic-political dynamics, imposition of reciprocal rates from the United States, and the closure of several industries," said Budi.

Budi also highlighted the contribution of the TPT industry to Gross Domestic Product (GDP) which decreased by 1.1 percent in 2024 from 1.3 percent in 2019, mainly due to the impact of the COVID-19 pandemic. This decision is also the result of cross-ministerial coordination.

In addition, continued Budi, the Business Competition Supervisory Committee (KPPU) and affected industrial representatives also conveyed the views taken into consideration of this decision.

"The government is committed to maintaining a balance between the protection of domestic industries and the need for competitive raw materials for the downstream sector, in order to maintain the overall continuity and competitiveness of the national industry," he said.