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n association of Turkish exporters has reacted angrily against local flour producers who have accused Turkey of conducting dumping practices in Indonesia — a claim that, if proven, might prompt the Indonesian government to impose a provisional import duty on imported flour.

The financial damage claimed by local flour producers was a false statement that has misled the public, Turgay Unlu, the chairman of the Turkish Cereals, Pulses, Oil Seeds and Products Exporters Union, told a press briefing in Jakarta on Thursday.

“The injury those Indonesian millers claim to have suffered could have been caused by competition with larger Indonesian wheat flour producers, with whom they cannot compete on a level playing field because they don’t have the same economies of scale,” said Unlu.

If Indonesia were to apply the provisional duty, then the country would be in violation of the World Trade Organization (WTO) safeguard agreement, which stipulated that a country could only impose the duty if there was an increase in imports deemed harmful to local industry, he added.

Flour imports in Indonesia, meanwhile, have seen a downward trend, Unlu said, quoting data from the Indonesian Flour Mills Association (Aptindo), which reports that the country experienced an 11 percent decrease in flour imports in 2011, and could experience a decrease of around 39 percent this year.

Chairman of the Indonesian Trade Security Committee (KPPI), Bachrul Chairi, said on Thursday that the surge of imports should not be looked at in a one- or two-year time frame, but over a longer, five-year period. “A decline in imports in a one-year period does not mean that local producers do not suffer any damage.”

The KPPI is currently investigating whether it is necessary to implement temporary safeguard duty on flour following reports that Turkey, the world’s largest flour exporter, is selling flour in Indonesia at a price below its local market value.

The investigation was launched following a petition filed by four Aptindo flour producers — PT Panganmas, PT Lumbung Nasional, PT Golden Grand Mill and PT Berkat Indah Gemilang — who claimed to have suffered financial losses due to the alleged dumping.

Despite concerns voiced by the Turkey’s exporters’ association, however, Indonesia places 5 percent duty on flour, far lower than neighboring Thailand at 40 percent, or even Turkey itself with 82 percent.

“Official data shows that Turkey imposes various trade barriers — from tariffs to safeguard measures — on 97 Indonesian products.

Aptindo executive director Ratna Sariloppies rejected Unlu’s claims that the petition was filed merely because Indonesia’s medium-sized flour producers were struggling to compete with large producers, such as PT Bogasari, which controls more than 60 percent of domestic flour production. “They are struggling because of the dumping practices by Turkish flour producers.” (sat)