Flour makers to file new antidumping petition
Indonesian flour producers plan to propose a new petition to the Indonesian Anti-Dumping Committee (KADI) to investigate alleged dumping practices conducted by foreign wheat producers in the domestic market.
This petition comes after the association recently withdrew its lawsuit — filed in January — against the Finance Ministry for refusing to charge an antidumping duty on imported flour from Turkey as already recommended by the Trade Ministry.
Indonesian Flour Mill Association (Aptindo) executive director Ratna Sari Loppies said in Jakarta on Friday that the association expected the antidumping agency to investigate the influx of wheat products imported from several countries, including, Australia, Sri Lanka and the Ukraine, in addition to Turkey, which was proven by the committee of committing the practice.
“The dumping practices continue and are not limited to Turkey. Higher volumes of flour sold at dumping prices makes our domestic producers, especially the newly established ones, harder to compete,” Ratna told The Jakarta Post.
Ratna declined to specify the details of the petition or the exact time frame for filing it with the antidumping authority, but said her association would lodge it “immediately”.
The case began in 2008 when three local producers — PT Eastern Pearl FM, PT Sriboga and PT Panganmas — which controlled 25.3 percent of the total domestic market filed a petition over an investigation into dumping practices committed by several countries, including Turkey, to KADI.
At the end of its investigation in 2009, KADI found out that Turkish producers had sold flour in Indonesia at dumping prices. According to the investigation, Turkey exported flour to Indonesia with a lower price that was between 18.69 and 21.99 percent compared to the price in its domestic market.
Based on the findings, the Trade Ministry then recommended to the Finance Ministry to impose an antidumping duty to counter the practice.
However, Cabinet Secretary Dipo Alam on July 11, 2011, demanded the Finance Ministry postpone the duty as required by a bilateral agreement between Indonesia and Turkey.
The absence of an anti-dumping duty has generated a potential loss of Rp 69.12 billion (US$7.4 million) to the state coffers from the additional tax, according to Aptindo.
KADI chairman Bachrul Chairi said that the association could lodge the new petition, but his committee would initiate a new investigation into the matter.
“As the Trade Ministry has terminated the case, the data used in the past cannot be taken into account. So, we must make a new inquiry over the petition,” he said, adding that a new probe in the case might take around 12 months.
The Trade Ministry recently notified the World Trade Organization (WTO) on the termination of the dumping dispute to comply with the rule of the world-trade governing body.
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